Norma Group Se · XETR:NOEJ

Norma — Q2 2012 Earnings Presentation

33 slides from Norma's earnings presentation, Aug 14, 2012

  1. Slide 1: NORMA Group Second Quarter Results 2012

    NORMA Group Second Quarter Results 2012 Maintal, 14 August 2012 Customer Value through Innovation

  2. Slide 2: Highlights Q2 2012

    Highlights Q2 2012 Sales increased by 8.6% including 2.3% from acquisitions to EUR 158.0 million (Q2 2011: Sales EUR 145.5 million) EBITA EBITA of EUR 28.6 million or 18.1% of sales up from EUR 25.5 million or 17.5% y-o-y Equity Equity ratio 39.0% following the dividend payment, compared to 39.5% at

  3. Slide 3: Good Growth of 6.3% in Both Quarters (excl. Acquisitions)

    Good Growth of 6.3% in Both Quarters (excl. Acquisitions) Sales Development in EUR million Growth Development Sales 2011 2012 Change Change in % Organic Acquisition Currency Q1 150.4 159.7 +9.3 +6.3% +5.1% +0% + 1.2% Q2 145.5 158.0 +12.5 +8.6% +1.7% +2.3% +4.6% H1 295.9 317.7 +21.8 +7.4% +3.4% +1.1%

  4. Slide 4: Sales by Regions, by Way-to-Market and by Industries

    Sales by Regions, by Way-to-Market and by Industries  Strong organic growth in America leads to 33% of total sales  EJT way-to-market increased by 1% to 71% of total sales; Connectors consolidated into DS  Majority of sales goes to non-automotive industrials, distributors as well as general tiers

  5. Slide 5: Sustainable Margin Level Continues into 2012 as Planned

    Sustainable Margin Level Continues into 2012 as Planned 2010 2011 2012 in EUR million H1 H2 FY H1 H2 FY H1 Sales 230.5 259.9 490.4 295.9 285.5 581.4 317.7 Adjusted EBITA 42.1 43.3 85.4 53.9 48.8 102.7 57.8 Adjusted EBITA 18.3% 16.7% 17.4% 18.2% 17.1% 17.7% 18.2% Margin 5

  6. Slide 6: Material Consumption and OPEX Improved

    Material Consumption and OPEX Improved  Improved material costs and OPEX compensated higher personnel expenses and lead to sustainable margin as expected Material Costs (in EUR million) Personnel Expenses (in EUR million) 150 43.6% 42.8% 44.5% 43.7% 45% of sales 150 45% of sales 100 30% 100 30% 23.

  7. Slide 7: No Operational Adjustments in H1 2012

    No Operational Adjustments in H1 2012  No operational adjustments for recent acquisitions in Switzerland and Italy  PPA adjustments slightly increased due to Swiss acquisition in EUR million Reported PPA adjustments adjusted Sales 317.7 0 317.7 EBITDA 64.9 0 64.9 EBITDA margin 20.4% 20.4% EBITA 57

  8. Slide 8: Strong Improvement in Q2 for Reported and Adjusted EPS

    Strong Improvement in Q2 for Reported and Adjusted EPS pro forma adjusted EPS (in EUR) Reported EPS (in EUR) 1,2 1.09 1,2 HY = +15% HY = +363% 1.02 0.95 0.55 0.51 0.38 Q2 = +44% 0,6 0,6 Q2 = +167% 0.57 0.54 0.22 0.51 0.19 0 0 0.03 H1/2011 H1/2012 H1/2011 H1/2012 no. of shares 31.9 31.9 28.1 31.9 in

  9. Slide 9: Very Strong Operating Net Cash Flow in H1 2012

    Very Strong Operating Net Cash Flow in H1 2012 Operating net cash flow in EUR million H1 2011 H1 2012 Variance EBITDA* 60.6 64.9 7.1% Δ ± Working capital -32.4 -26.8 -17.3% Operating net cash flow before investments from operating 28.2 38.1 35.1% business Δ ± Investments from operating business -18.

  10. Slide 10: Equity and Debt Ratios stable

    Equity and Debt Ratios stable  Equity and debt ratios stable despite dividend payment and acquisition in Switzerland because of strong earnings and cash generation. Net Debt (in EUR million) Equity Ratios 30.06.2012 31.12.2011 400 195* Equity Ratio (Equity / Balance 177* 39.0% 39.5% 300 Sheet Total

  11. Slide 11: Acquisition of Nordic Metalblok S.r.l.

    Acquisition of Nordic Metalblok S.r.l. M&A Acquisiton of Nordic Metalblok S.r.l., Italy in July 2012 Business Company specialises in manufacturing clamps for various applications particularly for the Model heating, ventilation and air conditioning industry and the agricultural and construction secto

  12. Slide 12: Outlook 2012 – Company Guidance Confirmed and Extended for latest acquisition

    Outlook 2012 – Company Guidance Confirmed and Extended for latest acquisition Sales growth between 3% and 6% (plus approx. EUR 13 million from acquisitions*) at least on the level of the two previous years EBITA margin (17.4% and 17.7% respectively) Investments in R&D approx. 4% of EJT-sales Materia

  13. Slide 13: Strategy Appendix

    \ \ Strategy Appendix biti titi tts til ~

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Convincing Growth Prospects

    Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across end-markets Sales €m End-market Joining 600 581 (year) (2010-15 CAGR) production unit technology growth market growth 500 ~27% Fluid Passenger vehicles +6% 9% 400 300 Commercial vehicles +6% 10% ~

  17. Slide 17: Significant Growth and Value Creation Opportunity through Synergistic Acquisitions

    Significant Growth and Value Creation Opportunity through Synergistic Acquisitions Taken advantage of market fragmentation History of Excellence 2011 Headquarters in 2012 Tagelswangen 2010 Sales Agents in Vienna, 2009 Krefeld 2010 Foundation of Start of production in2004 2004 Connectors Mexico 1985

  18. Slide 18: Acquisition of Connectors Verbindungstechnik AG

    Acquisition of Connectors Verbindungstechnik AG M&A Acquisiton of Connectors Verbindungstechnik AG, Switzerland, in April 2012 Business Connectors specialises in connecting systems for the pharmaceutical and biotechnology industry. Model For more than 25 years the company has been manufacturing and

  19. Slide 19: Further Development of Manufacturing Footprint

    Further Development of Manufacturing Footprint NORMA Russia Existing Manufacturing locations NORMA USA  Auburn Hills, USA  St Clair, USA  Saltsburg, USA  Monterrey, Mexico  Juarez, Mexico Expand business opportunities  Gerbershausen, Germany Benefit from synergies in  Maintal, Germany distrib

  20. Slide 20: 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

  21. Slide 21: Tighter Emission Regulations Drive Increased Joining Technology Content

    Tighter Emission Regulations Drive Increased Joining Technology Content Today Europe EURO 5 EURO 6 EURO 3 EURO 4 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J. '19 Japan JPN '02 JPN '05 JPN '98 Brazil EURO 3 EURO 5 EURO 6 EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 Russia EURO 1 EURO 2 EURO

  22. Slide 22: 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

  23. Slide 23: 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) ~71%

  24. Slide 24: Shareholder Structure

    Shareholder Structure Shareholder structure Regional split of identified institutional investors 3i Group and 5.5% 23% Great Britain Funds 65.3% MABA CYPRUS Germany 40% 15% Ltd. 29.2% USA Freefloat Other countries 22% Mondrian Investment Partners 5.3% Threadneedle, London 5.0% DWS, Frankfurt 4.9% T.

  25. Slide 25: Financial Appendix

    Financial Appendix 25

  26. Slide 26: Historic Growth Track Record

    Historic Growth Track Record Historic revenue development (1997 – 2011) EUR million 600 581 490 500 458 400 385 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 Former Rasmussen has shown a solid historica

  27. Slide 27: Overview on Adjustments

    Overview on Adjustments  Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011)  Only minor PPA adjustments in 2012 on EBITA level expected (< EUR 0.5 million p.a.) in EUR million FY 2010 FY 2011 H1 2012 Reported EBITA 64.9 84.7 57.7 + Restructuring Costs 1.3 1.8 0 +

  28. Slide 28: Profit & Loss (adjusted & reported)

    Profit & Loss (adjusted & reported) in EUR million 2011 2010 reported adjusted reported adjusted Sales 581.4 581.4 490.4 490.4 Gross Profit 322.6 322.6 274.7 274.7 EBITDA 100.2 117.0 81.7 99.2 EBITA 84.7 102.7 64.9 85.4 in % 14.6% 17.7% 13.2% 17.4% EBIT 76.6 99.7 56.3 80.9 in % 13.2% 17.1% 11.5% 16.

  29. Slide 29: Continuation of Growth Track and Sustainable Margin into 2011

    Continuation of Growth Track and Sustainable Margin into 2011 Revenue (in EUR million) Gross profit (in EUR million) 600 of sales 350 54.9% 55.3% 56.0% 55.5% 60% 500 300 581 400 250 323 40% 490 200 275 300 458 150 251 200 182 20% 330 100 100 50 0 0% 0 2008 2009 2010 2011 2008 2009 2010 2011 Personne

  30. Slide 30: Positive Effects of the IPO Visible on Balance Sheet

    Positive Effects of the IPO Visible on Balance Sheet (all amounts in EUR million) 31 Dec 2010 31 Dec 2011 (all amounts in EUR million) 31 Dec 2010 31 Dec 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets / 390.4 401.0 Total equity 78.4 256.0 Property, pl

  31. Slide 31: Pro-active FCF Management to be Continued

    Pro-active FCF Management to be Continued Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 18.5% % of revenues 200 18.0% 18.1% 18.3% 20% 80 150 15% 100 70 81 49 45 10% 60 50 54 45 65 67 0 5% -19 -30 -46 * -41 -50 0% 40 2008 2009 2010 2011 67 67 Inventories Tra

  32. 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

  33. Slide 33: 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 “

NORMA Group — Q2 2012 Earnings Presentation on 6ix