Cembre S.p.a. · MIL:CMB

Cembre — 9M 2016 Earnings Presentation

30 slides from Cembre's earnings presentation, Nov 17, 2016

  1. Slide 1: Investor Presentation: Results of the first 9 months of 2016

    Investor Presentation Results of the first 9 months of 2016

  2. Slide 2: Cembre at a Glance

    Investor Presentation Cembre at a Glance Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools; The Group has grown its revenues by a CAGR of 5.7% in the last 15 years (2001-2015), from €56 mn in 2001 to €121.4 mn in 2015; It is a dividend-payer w

  3. Slide 3: Contents

    Investor Presentation Contents Management Team Business overview Results of the first nine months of 2016 Guidance for the first nine months of 2016 Stock data & shareholding structure Contact 3

  4. Slide 4: Management team

    Investor Presentation Management team Giovanni Rosani Chief Executive Officer (CEO) OUR MISSION Cembre cooperates with the users of its products to find the best technical Aldo Bottini Bongrani and economical solutions related to electrical connection applications. Sales and Marketing Director Claud

  5. Slide 5: Group Structure

    Investor Presentation Group Structure 450 S.p.A 100% 95% 95% 95% 71% Cembre Cembre Ltd. Cembre Sarl Cembre GmbH Cembre Inc. España SL Great Britain France Germany USA Spain 5% 5% 5% 29% 96 27 44 26 34 Production and commercial units Commercial units Number of employees at September 30, 2016 5

  6. Slide 6: Business Overview

    Investor Presentation Business Overview Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools. Electrical Connectors Tools Railway Products Identification Cable Glands, Systems Accessories and other 6

  7. Slide 7: Made in Brescia…

    Investor Presentation Made in Brescia… Cembre, established in 1969, manufactures its products in its state-of- art production facility located in Brescia. The facility covers an area of 51,000 m2 on a total land area of 121,000 m2. 7

  8. Slide 8: … and U.K.

    Investor Presentation … and U.K. In addition, Cembre has a production facility in the UK which operates on a 8,800 m2 land. This plant in Birmingham manufactures mainly for the local market. The sales generated in the UK are 16% of the consolidated turnover of the first nine months of 2016. Cembre L

  9. Slide 9: An Integrated Business Partner…

    Investor Presentation An Integrated Business Partner… The Group employs 677 employees worldwide. R&D Production Marketing/Sales/Distribution Administration/Services 24 395 174 84 Cembre has extensive know-how Sharp focus on customer needs in its operating field, and its strong and the efficient inte

  10. Slide 10: Very Strong in Europe…

    Investor Presentation Very Strong in Europe… Cembre is present all over the Italian territory through a network of salesmen and representatives who are able to offer fast and constant technical assistance. Abroad, it operates through 5 subsidiaries in Europe (UK, France, Spain, Germany and Norway) a

  11. Slide 11: Present All Around the World…

    Investor Presentation Present All Around the World… Cembre has a network of importers and agents who provide technical and commercial assistance and rapid delivery all around the world… 11

  12. Slide 12: Revenues breakdown by Product Family

    Investor Presentation Revenues* breakdown by Product Family (€ ‘000) 120% 100% 80% 60% 40% 20% 0% Electrical Tools Railway Products Cable Markers Cable Glands Terminal Blocks Others Total connectors *Customers’ bonuses not included 9 months 33,108 17,140 18,495 14,577 6,928 1,905 1,625 93,778 2016 3

  13. Slide 13: Geographical Revenue Breakdown

    Investor Presentation Geographical Revenue Breakdown Europe (ex-IT) 9 months 9 months Δ 2016 2015 Sales 38.8 mn 38.7 mn 0.3% % in total 42.9% 42.5% 0.4pp Italy 9 months 9 months Δ 2016 2015 Sales 36.7 mn 36.6 mn 0.2% % in total 40.6% 40.1% 0.5pp Rest of the World 9 months 9 months Δ 2016 2015 Sales

  14. Slide 14: 15-Year Revenue Evolution

    Investor Presentation 15-Year Revenue Evolution € Millions Economic Back to Growth 140 Crisis 121,4 120 112,9 103,0 103,9 104,5 100 93,4 94,3 93,9 84,1 80 76,0 70,0 65,1 59,9 60 56,0 56,9 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 14

  15. Slide 15: A Wide Product-Mix

    Investor Presentation A Wide Product-Mix In order to maintain its leading position and increase the penetration of market, Cembre had sensibly enlarged the range of products offered through: •Research activities mainly focused on the development of innovative products for the sectors with the highes

  16. Slide 16: Electrical Connectors: 2.2% decrease in Sales

    Investor Presentation Electrical Connectors: 2.2% decrease in Sales Electrical Connectors: 9 months 2016 9 months 2015 Δ Total Sales 33.1 € mn 33.9 € mn -2.2% Sales in Italy (% share) 15.9 € mn (16.9%) 15.5 € mn (16.7%) 2.2% Sales in Europe ex-IT (% share) 14.2 € mn (15.2%) 15.4 € mn (16.6%) -7.5% S

  17. Slide 17: Tools: 1.9% decrease in Sales

    Investor Presentation Tools: 1.9% decrease in Sales Tools: 9 months 2016 9 months 2015 Δ Total Sales 17.1 € mn 17.5 € mn -1.9% Sales in Italy (% share) 4.4 € mn (4.6%) 3.6 € mn (3.9%) 21.4% Sales in Europe ex-IT (% share) 7.0 € mn (7.5%) 6.9 € mn (7.5%) 1.2% Sales in RoW (% share) 5.8 € mn (6.2%) 7.

  18. Slide 18: Railway Products: 1.3% decrease in Sales

    Investor Presentation Railway Products: 1.3% decrease in Sales Railway Products: 9 months 2016 9 months 2015 Δ Total Sales 18.5 € mn 18.7 € mn -1.3% Sales in Italy (% share) 1.3 € mn (1.4%) 2.1 € mn (2.3%) -37.3% Sales in Europe ex-IT (% share) 12.0 € mn (12.8%) 11.6 € mn (12.5%) 3.4% Sales in RoW (

  19. Slide 19: Cable Markers: 13.3% increase in Sales

    Investor Presentation Cable Markers: 13.3% increase in Sales Cable Markers: 9 months 2016 9 months 2015 Δ Total Sales 14.6 € mn 12.9 € mn 13.3% Sales in Italy (% share) 9.3 € mn (9.9%) 8.4 € mn (9.0%) 11.3% Sales in Europe ex-IT (% share) 4.5 € mn (4.8%) 3.9 € mn (4.2%) 14.8% Sales in RoW (% share)

  20. Slide 20: Cable Glands: 3.2% increase in Sales

    Investor Presentation Cable Glands: 3.2% increase in Sales Cable Glands: 9 months 2016 9 months 2015 Δ Total Sales 6.9 € mn 6.7 € mn 3.2% Sales in Italy (% share) 5.8 € mn (6.2%) 5.7 € mn (6.2%) 1.1% Sales in Europe ex-IT (% share) 0.9 € mn (1.0%) 0.8 € mn (0.9%) 9.8% Sales in RoW (% share) 0.2 € mn

  21. Slide 21: Consolidated Results of first nine months of 2016

    Investor Presentation Consolidated Results of first nine months of 2016 Euro Millions 9 months 9 months Changes 9 months 2016 2015 % 2014 Sales 90.5 91.3 -0.8% 83.7 EBITDA 22.2 22.2 0.1% 18.2 In % of sales 24.6% 24.3% 21.7% EBIT 17.8 18.0 -0.8% 14.5 In % of sales 19.7% 19.7% 17.3% EBT 17.8 18.1 -1.8

  22. Slide 22: Group Companies Turnover for the first nine months of 2016

    Investor Presentation Group’s Companies Turnover* for the first nine months of 2016 Company 9 months 9 months Change 9 months (Euro thousands) 2016 2015 % 2014 Cembre S.p.A. (Italy) 50,142 49,924 0.4% 43,371 Cembre Ltd. (UK) 13,633 14,479 -5.8% 15,376 Cembre S.a.r.l. (France) 6,899 6,481 6.4% 6,188

  23. Slide 23: September 30, 2016 Consolidated Balance Sheet

    Investor Presentation September 30, 2016 Consolidated Balance Sheet Euro Millions Sept. 30, 2016 Dec. 31, 2015 Dec. 31, 2014 a Net operating working capital 45.3 47.6 43.9 % of sales 37.5% 39.2% 38.9% b Net fixed assets 69.8 71.0 69.6 c Assets available for sales - - - d Severance indemnities 2.5 2.

  24. Slide 24: Cembre's Revenue and Profitability Trend

    Investor Presentation Cembre’s Revenue and Profitability Trend (€ ‘000) Revenues Ebitda 140.000 30.000 28.537 121.377 120.000 112.905 24.352 25.000 104.547 103.028 103.899 21.710 100.000 94.288 93.934 20.228 20.407 93.417 19.131 19.273 20.170 20.108 84.127 20.000 80.000 75.984 69.997 65.149 14.718 1

  25. Slide 25: Index analysis

    Investor Presentation Index analysis ROI (EBIT/Investments) ROACE (EBIT/Net capital employed) 25,00% 35,00% 29,45% 30,00% 19,67% 29,05% 20,00% 24,34% 19,06% 16,60% 16,57% 25,00% 15,11% 23,39% 22,23% 21,23% 20,61% 15,00% 20,00% 14,15% 14,65% 16,85% 17,12% 11,04% 13,75% 18,35% 12,80% 15,66% 11,79% 15,

  26. Slide 26: Investments trend

    Investor Presentation Investments trend 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Investments in tangible assets Investments in intangible assets Total investments € ‘000 2001 2002 2003 2004 2005 2006 2007

  27. Slide 27: 2016 and onwards…

    Investor Presentation 2016 and onwards… Cembre focused on these targets: Increase of turnover thanks to: •A strengthening of Cembre competitive advantage by developing new products and continuous product range renewing by an intense R&D activity, •An higher penetration in the foreign markets, especi

  28. Slide 28: 2016 and onwards…

    Investor Presentation 2016 and onwards… •The construction of a new 4,800 m2 industrial building which is the new logistic center. This center include an automated warehouse with 16-metre-high shelves. The construction started in March 2012, and the new automatic warehouse is operative since January

  29. Slide 29: Stock Data & Shareholding Structure

    Investor Presentation Stock Data & Shareholding Structure Shareholders: Share: LYSNE Spa 55.04% Anna Maria Onofri 8.35% Sara Rosani 4.82% Giovanni Rosani 4.71% Other 26.38% Cembre has been listed since December 1997, and is a part of the Star Index since September 2001. 2015 2014 2013 2012 2011 2010

  30. Slide 30: Contact

    Contact Claudio Bornati: CFO and IR Via Serenissima 9, 25135 Brescia (BS) Italy Phone: ++39 030 36921 Email: claudio.bornati@cembre.com The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law

Cembre — 9M 2016 Earnings Presentation on 6ix