Slide 1: NORMA Group Third Quarter Results 2011
NORMA Group Third Quarter Results 2011 Maintal, November 15th, 2011 Customer Value through Innovation NORMA GROUP • 2011-07
Slide 2: Disclaimer
Disclaimer This presentation contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “
Slide 3: Highlights of Q3/2011
Highlights of Q3/2011 Sales € 145.8 million including organic growth of 10.3% and an acquisitive growth of 3.3% (y-o-y) Adjusted EBITA € 26.2 million = strong margin of 18.0% IPO adjustments in Q3 finalized with € 1.9 million benefit (including release of provisions). Adjustments No operational adju
Slide 4: Excellent Growth in the 9 Months of 2011: Record Sales with € 441.7 million
Excellent Growth in the 9 Months of 2011: Record Sales with € 441.7 million Sales Development in € million Growth Development Sales 2010 2011 Change Change in % Organic Acquisitive Currency Growth Growth * Effects Q1 106.1 150.4 + 44.2 + 41.7% +27.1% +12.4% + 2.2% Q2 124.4 145.5 + 21.1 + 17.0% +13.7
Slide 5: Sales Breakdown
Sales Breakdown 9M/2011 (9M/2010) sales breakdown 9M/2011 (9M/2010) sales breakdown FY2010 sales breakdown by reporting segments* by way-to-market by end-markets ~3% ~3% ~3% 29% ~7% (25%) 30% 6% (35%) ~25% (6%) 70% (65%) ~26% 65% ~33% (69%) Distributors Distribution Services Industrial suppliers Pas
Slide 6: Positive Sales Development Across All Reporting Segments
Positive Sales Development Across All Reporting Segments in € million 9M/2010 9M/2011 Change in EUR Change in % Sales 361.5 441.7 80.2 + 22.2% EMEA 250.4 286.8 + 36.4 + 14.6% + 44.2% AMERICAS 89.3 128.8 + 39.5 (including acquisitions) APAC 21.8 26.1 + 4.3 + 19.9% in € million 9M/2010 9M/2011 Change
Slide 7: Positive 9M Results and Costs
Positive 9M Results and Costs YTD material consumption stable YTD productivity gains Material Costs Adjusted Personnel Expenses €m €m 24,5% 250 50% 120 23,8% 25% 44,4% 44,7% 200 40% 100 20% 198 80 105 150 30% 15% 160 89 60 100 20% 10% 40 50 10% 20 5% 0 0% 0 0% Q1-Q3/2010 Q1-Q3/2011 Q1-Q3/2010 Q1
Slide 8: Building a Track Record: 7 Quarters of Strong Sales and Margins
Building a Track Record: 7 Quarters of Strong Sales and Margins 2010 2011 Guidance in € million Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY 2011 Sales 106.1 124.4 131.0 128.9 150.4 145.5 145.8 ~ 570 Adjusted EBITA 19.3 22.8 22.7 20.6 28.4 25.5 26.2 Adjusted EBITA Margin 18.2% 18.3% 17.4% 16.0% 18.9% 17.5% 18.0% near 18
Slide 9: Overview on Adjustments – Q3 first clean quarter
Overview on Adjustments – Q3 first clean quarter in € million Q1/2011 Q2/2011 Q3/2011 9M/2011 FY 2010 Reported EBITA 12.1 23.2 28.1 63.4 64.9 + Restructuring Costs 0.7 - - 0.7 1.3 + Non-recurring/non-period-related items* 14.6 2.0 -1.9 14.7 15.5 + Other group and normalized items 0.2 - - 0.2 0.7 + P
Slide 10: Flexibility of Cost Positions
Flexibility of Cost Positions Material costs ~ 45% material consumption ratio stable 10% to 15% temporary workers Personnel costs Short time work arrangement still in place Global Setup 17 different production sites, various sales & engineering centres, 4 distribution centres allow for local
Slide 11: Excellent Balance Sheet Ratios
Excellent Balance Sheet Ratios Pre IPO 30 June 2011 30 Sep 2011 Equity Ratio 13.5% 37.1% 38.3% Net debt 344 224 222 - thereof derivative financial liabilities (cash flow and P&L neutral) 6 5 17 Net debt / Adjusted LTM EBITDA 3.5x 2.0x 1.9x Gearing (net debt / equity) 4.4x 1.0x 0.9x Covenants Actua
Slide 12: Positive Effects of the IPO Visible on Balance Sheet
Positive Effects of the IPO Visible on Balance Sheet (all amounts in € million) 31 Dec 2010 30 Sep 2011 (all amounts in € million) 31 Dec 2010 30 Sep 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets / 390.4 392.1 Total equity 78.4 240.9 Property, plant
Slide 13: Significant Adjusted Operating Net Cash Flow Improvement
Significant Adjusted Operating Net Cash Flow Improvement Adjusted operating net cash flow in € million 9M/2010 9M/2011 FY 2010 Adjusted EBITDA* 74.6 90.4 99.2 Δ ± Working capital -44.1 -41.6 - 26.4 Adjusted operating net cash flow before investments from operating business 30.5 48.8 72.8 Δ ± Investm
Slide 14: Specified Guidance
Specified Guidance Organic growth of around 12% Sales +20 million from acquisitions around € 570 million Adjusted EBITA-Margin near 18% We expect organic growth for the financial year 2011 of around 12% (previously between 10% and12%) On top, the consolidation of the Group’s two US acqui
Slide 15: Appendix
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Slide 16: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights 1 Market leader in attractive engineering niche markets with strong growth prospects 2 Premium pricing through technology and innovation leadership in mission-critical components 3 Enhanced stability through broad diversification across products, end-markets a
Slide 17: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® Emission reduction Product availability / Leakage reduction NORMACONNECT® local presence Assembly time reduction / ease of Weight reduction assembly NORMAFLUID® Modula
Slide 18: NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers 18
Slide 19: Historic Growth Track Record
Historic Growth Track Record Historic revenue development (1997 – 2010) €m 600 ~ 570 Guidance FY 2011 490 500 458 400 385 1 330 300 277 229 242 198 207 200 174 182 138 150 121 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 HGB IFRS Rasmussen as the predecessor of th
Slide 20: Significant Growth and Value Creation Opportunity through Synergistic Acquisitions
Significant Growth and Value Creation Opportunity through Synergistic Acquisitions Taken advantage of market fragmentation Focus on operational excellence “Global Excellence” program Continuous focus on optimisation of cost structure 2010 Significant cost savings achieved in 2010, with higher
Slide 21: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect2 Excellent growth outlook across end-markets Sales €m End-market Joining (year) 4901 (2010-15 CAGR) production unit technology 500 ~3% Other growth market growth ~26% Fluid 400 Passenger vehicles +6% 9% 300 Commercial vehicles +
Slide 22: Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components
Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value of Basis for premium pricing: Example: joining technology Harvester content Market leadership Coolin
Slide 23: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission Regulations Drive Increased Joining Technology Content Today 2015 EURO 5 EURO 6 Europe EURO 4 EURO 3 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J. '19 Japan JPN '98 JPN '02 JPN '05 EURO 3 EURO 5 EURO 6 Brazil EURO 2 EURO 1 EURO 4 EURO 5 EURO 6 Russia EURO 1 EURO 2
Slide 24: Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions
Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions Examples of NORMA Group’s key end-markets Construction / infrastructure / Engines Commercial vehicles Passenger vehicles Construction equipment water management Agricultural equipment Shipbuilding White goods W
Slide 25: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways-to-Market Unique business model with two distinct ways-to-market Significant economies of scale in production Close contact to international EJT customers Knowledge transfer from EJT to DS Engineered Joining Technology (EJT) Distribution Services (DS) ~70%
Slide 26: NORMA Group Management Team
NORMA Group Management Team Werner Deggim Dr. Othmar Belker Bernd Kleinhens John Stephenson Chief Executive Officer Chief Financial Officer Sales & Business Development Chief Operating Officer 26
Slide 27: Shareholder Structure
Shareholder Structure 3i plc and funds managed by 3i 35.5% Split by FIMANE Ltd investors 56.2% Freefloat (including institutional investors and management) 8.3% Germany 15% 5% UK 36% Free float split by regions* USA Rest of the World 44% * Source: Shareholder ID 27
Slide 28: Positive 9M Results and Costs
Positive 9M Results and Costs YTD material consumption stable YTD productivity gains Material Costs Adjusted Personnel Expenses €m 250 23,8% 24,5% 23,8% 50% €m 120 23,5% 25% 43,7% 45,2% 44,4% 44,7% 100 89 105 200 40% 20% 160 198 80 150 30% 15% 60 100 66 20% 10% 40 35 57 31 50 10% 5% 20 0 0% 0 0%
Slide 29: Strong Growth and Strict Cost Management Lead to Stable Margin Development
Strong Growth and Strict Cost Management Lead to Stable Margin Development Adjusted1 EBITA and EBITDA in € million 9M/2011 percent of revenue 9M/2010 percent of revenue Revenue 441.7 100% 361.5 100% Changes in inventories of finished goods and work in progress 2.4 3.6 Raw materials and consumables u
Slide 30: Continuation of Growth Track after Successful Management of the Economic Downturn in 2009
Continuation of Growth Track after Successful Management of the Economic Downturn in 2009 Revenue Gross profit 600 €m 350 €m 55.3% 60% of sales 54.9% 56.0% 490 300 500 458 275 50% 251 250 400 40% 330 200 182 300 30% 150 200 20% 100 100 10% 50 0 0 0% 2008 2009 2010 2008 2009 2010 Personnel expenses A
Slide 31: Pro-active FCF Management to be Continued
Pro-active FCF Management to be Continued Operating free cash flow (FCF) Trade working capital €m % of revenues €m 18.5% 18.0% 20% 17.7% 60 150 87 85 59 65 54 45 10% 50 50 50 70 49 45 (19) (30) (48) (50) 0% 40 2008 2009 2010 36 1 33 30 Capex €m % of revenues 20 40 4.6% 4.3% 5% 3.9% 30 4% 10 21 3% 18
Slide 32: Contact
Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Mobile: +49 1520 910 3619 Email: Andreas.Troesch@normagroup.com 32