Kendrion N.v. · EURONEXT:KENDR
Kendrion — FY2012 Earnings Presentation
22 slides from Kendrion's earnings presentation, Feb 27, 2013
Slide 1: Annual results 2012 - Analysts' meeting
27-2-2013 Annual results 2012 Analysts' meeting Wednesday 27 February 2013 Agenda 1. Kendrion at a glance 2. 2012 Highlights 3. Key figures for 2012 and financial objectives 4. Review of business units 5. Financial position 6. Dividend 7. Fine imposed by European Commission 8. ERP project HORIZON 9.
Slide 2: Kendrion at a glance
27-2-2013 1. Kendrion at a glance 3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,600 employees (including 100 temps) in 12 countries Revenue: approximately EUR 300 million Listed company on NYSE Euronext's Amsterda
Slide 3: Organisation – Kendrion breakdown of revenue 2012
27-2-2013 Organisation – Kendrion breakdown of revenue 2012 Industrial Magnetic Systems Passenger Car Systems • Machine building • Automotive applications • Safety engineering • Hydraulic applications • Transportation industry • Medical engineering • Power engineering • Elevator industry • Automatio
Slide 4: Kendrion committed to being a high-performer in selected business units
27-2-2013 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives Spearheads - Niche market leadership - Organic growth in the current operations To develop business units that Organic growth > 10% - Utilisation of synergy in and have strong international
Slide 5: Key actions for achieving our strategic spearheads
27-2-2013 Key actions for achieving our strategic spearheads (1) - Alert response to market developments in all key markets (market intelligence) - Increase customers' commitment in projects, particularly in Industry - Expand and retain workforce - Very little unemployment in southern Germany, flexi
Slide 6: 2. 2012 Highlights
27-2-2013 Revenue distribution 11 2. 2012 Highlights 12 6
Slide 7: 2012 Highlights
27-2-2013 2012 Highlights - Market conditions deteriorated during the year - Transitional year, revenue up 6% (-4.1% on an organic basis) - Net profit EUR 18 million (normalised net profit EUR 13.6 million) - Growth in business units IDS and CVS - Revenue decrease in IMS and (on an organic basis) in
Slide 8: Key figures for 2012 and financial objectives
27-2-2013 3. Key figures for 2012 and financial objectives 15 Key figures 2012 (x EUR 1 million unless otherw ise stated) Q4 2012 1 Q4 2011 1 Difference in % Revenue 65.5 64.9 1% Normalised EBITA * 2.3 6.7 -66% Realised net profit 3.3 -36.2 Normalised net profit * 2.2 4.4 -50% ROS 3.4% 10.3% 1 The q
Slide 9: Financial targets
27-2-2013 Financial targets Target Realisation 2012 Realisation 2011 Organic growth >10% per year -4% 21% ROS >10% 7.8% 11.5% ROI >17.5% 12.4% 22.2% Solvency ≥ 35% 44.8% 40% Interest-bearing debt/EBITDA <3.00 0.65 0.6 71% of normalised 71% of normalised Free cash flow Healthy net profit net profit 5
Slide 10: Added value 2012
27-2-2013 Added value 2012 Added value fell by over EUR 11 million on an organic basis due to: - Lower revenue EUR 5 million - Lower inventories EUR 2 million - Price effects net EUR 1.5 million - Revenue with low added value EUR 2.5 million 19 Changes in Kendrion organisation - Smoothly operating o
Slide 11: 4a. Review of business units - General
27-2-2013 4a. Review of business units 21 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: mechanical engineering, locking and safety, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations i
Slide 12: 4b. Review of business units
27-2-2013 2012 - Top 10 customers account for 27% of revenue, largest customer for EUR 2 million - Successful in acquiring new projects (especially in the USA) - Challenging market conditions, particularly in textile machine market (since Q2), but also volume reduction at other (large) customers - O
Slide 13: General
27-2-2013 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Two production sites in Germany; international service coordinated through UK sales office - Global market leader in permanent magnetic brake systems - Number of customers 600 of which 100 larg
Slide 14: 4c. Review of business units
27-2-2013 4c. Review of business units 27 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, China and the USA - Serves European “Original Equipment Manufacturers”: Daimler, Volkswagen (incl. Audi), and
Slide 15: 4d. Review of business units
27-2-2013 2012 - In 2012 good 1st half year (organic revenue increase of 2%), organic revenue decrease (15%) in 2nd half year 2012 - Growth slowed by limited new revenue in 2012 (was expected), by French market and by shifts for small diesel engines at Volkwagen - Continued success in acquiring new
Slide 16: General
27-2-2013 General - Operations: components and total cooling systems for buses, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Many customers worldwide - Sites in Germany, USA, Mexico, Brazil, China and India - USPs are energy-e
Slide 17: 5. Financial position
27-2-2013 5. Financial position 33 Financial position - Satisfactory free cash flow for full year 2012: EUR 9.7 million - In control of working capital, inventories reduced - Strong balance sheet (net debt at year-end 2012 EUR 21.3 million, solvency 45%) - Some EUR 80 million freely available for ac
Slide 18: 6. Dividend
27-2-2013 6. Dividend 35 Dividend - Dividend window 35% - 50% of net profit - Solvency of at least 35% - Proposed optional dividend for 2012 of 50% of normalised net profit (EUR 13.6 million) - Dividend of EUR 0.58 per share 36 18
Slide 19: 7. Fine imposed by European Commission
27-2-2013 7. Fine imposed by European Commission 37 Fine imposed by European Commission - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel in period 1995 - 2002 - Recognised a provision following judgement of General Court of the Eur
Slide 20: 8. ERP project HORIZON
27-2-2013 8. ERP project HORIZON 39 ERP project HORIZON - Investment between EUR 5.5 and EUR 6.0 million - 1 October 2012 IDS Villingen live, 1 January 2013 PCS Eibiswald live - 1 April 2013 IMS Villingen scheduled, i.e. 3 major entities completed then - Within budget for investments and costs - Use
Slide 21: 9. Priorities and outlook
27-2-2013 9. Priorities and outlook 41 Priorities for 2013: "Entering another league" - Four spearheads maintained (flexibility, innovation, sustainability, globalisation) - Focus on the internal organisation - Achievement of financial objectives (costs and cash) - Further steps in the field of inno
Slide 22: We magnetise the world!
27-2-2013 Outlook - Uncertainty about economic situation - Developments in eurozone and China uncertain - Further signs of recovery in USA expected - Nervous markets, uncertain outlook - Order book for industrial activities growing again to some extent - New revenue in 2nd half year 2013 - First qua