Schouw & Co A/s · OMXCOP:SCHO
Schouw & Co A/s — Investor Day (September 2022)
105 slides from Schouw & Co A/s's investor day presentation, Sep 1, 2022
Slide 1: Enabling growth through transformation
INVESTOR PRESENTATION 1 September 2022 CEO Jens Bjerg Sørensen Enabling growth through transformation Schouw & Co. Capital Markets Day
Slide 2: Agenda
Agenda Strategic update 6 Businesses 73 Factories1 ~30bn DKK revenue2 09:00 Jens Bjerg Sørensen, CEO since 2001 ~15,000 Employees1 31 Countries1 ~2.2bn DKK EBITDA2 BioMar 09:45 Carlos Diaz, CEO since 2014 GPV 11:30 Bo Lybæk, CEO since 2008 Closing remarks 13:00 and lunch Jens Bjerg Sørensen 2 Notes:
Slide 3: A portfolio of six strong and relevant businesses
SCHOUW & CO. AT-A-GLANCE A portfolio of six strong and relevant businesses Quality feed for fish and Revenue Electronic Manufacturing Revenue shrimps and dedicated to DKK 13.3bn Services providing global DKK 3.2bn an efficient and production setup to sustainable global Employees accomplish more with
Slide 4: Schouw & Co. is a responsible long-term owner enabling growth through transformation
Schouw & Co. is a responsible long-term owner enabling growth through transformation. We build the companies of tomorrow by putting people first. 4
Slide 5: Transforming businesses for more than a century
BUSINESS TRANSFORMATION Transforming businesses for more than a century Current businesses in the portfolio 5 Previous businesses in the portfolio
Slide 6: Transforming is creating long-term responsible value
BUSINESS TRANSFORMATION Transforming is creating long-term responsible value Next level Growth Innovation ESG Build platform Continue progress Future-proofing Responsibility ▪ Landmark M&A ▪ Investment in ▪ From volume to ▪ Ability to sustain ▪ Business model capacity value ▪ Produce / protect / opt
Slide 7: Transformation of HydraSpecma
BUSINESS TRANSFORMATION Cash investments1 -260m Dividends received Grene 130m Transformation of HydraSpecma Dividends received HydraSpecma 830m Divestment of 20% of Kramp ~1,000m Cash surplus so far 1,700m Acquisition Transformation Merger Exit 1988 1990s 2009 2009 2015 2022+ Launch of the Internati
Slide 8: A portfolio of limited cyclicality
STRATEGY A portfolio of limited cyclicality Financial CYCLICALITY IN SCHOUW & CO. Covid Inflation crisis Inflation EU ▪ BioMar growth and profitability GDP EU fundamentally driven by demand for food for human consumption ▪ Historically, cycles in the salmon market has been driven by supply/demand an
Slide 9: Illustrative spend of cash in 2022: DKK +4bn
STRATEGY Illustrative spend of cash in 2022: DKK +4bn Sustaining the Return to Growing the business External outflow platform shareholders ~700 ~700 ~700 ~600 Extruders in ~350 ~350 BioMar BioMar’s ~300 ~300 Ecuador acquisition Expansion of AQ1 in in GPV Australia Thailand Cash Share buy and Sri pay
Slide 10: 144 years and as ambitious as ever
STRATEGY 144 years and as ambitious as ever TRANSFORMATION MINDSET SETTING DIRECTION Create global leaders Creating responsible solution providers Push growth potential Local footprint in a global world Bring ESG into play Patient but demanding RESPONSIBLE FINANCIALLY AMBITIOUS Transition to renewab
Slide 11: Strategic guide from recent Top 40 management seminar
STRATEGY Strategic guide from recent Top 40 management seminar 11
Slide 12: A long-term owner with clear targets
FINANCIAL AND NON-FINANCIAL AMBITIONS A long-term owner with clear targets Long term targets end of 2025 Strategic goals on group level Goal Status RETURN Average ROIC of 15% The ambition is to grow revenue to ROIC > 15% over the past five years more than DKK 35bn GEARING Average NIBD/EBITDA of NIBD
Slide 13: Strategic portfolio company targets
FINANCIAL AND NON-FINANCIAL AMBITIONS Strategic portfolio company targets GROWTH EARNINGS RESPONSIBILITY Significant growth On par with Innovative products and every year the best responsible production Five year average growth Portfolio companies’ profitability All portfolio companies have rate acr
Slide 14: ESG ambitions for 2030
FINANCIAL AND NON-FINANCIAL AMBITIONS ESG ambitions for 2030 Produce responsibly Protect workers Promote innovation The companies of the Schouw & All employees of the Schouw & Our companies assume Co. Group are required to Co. Group must be able to go to responsibility for ensuring strong manufactur
Slide 15: Conclusion
CONCLUSION 1. 2. 3. 4. Schouw & Co. Schouw & Co. is Schouw & Co. is Schouw & Co. drives profit a long-term and a fairly stable has ambitious through responsible and non-cyclical financial transformation owner business long-term targets 15
Slide 16: Agenda
Agenda Strategic update 6 Businesses 73 Factories1 ~30bn DKK revenue2 09:00 Jens Bjerg Sørensen, CEO since 2001 ~15,000 Employees1 31 Countries1 ~2.2bn DKK EBITDA2 BioMar 09:45 Carlos Diaz, CEO since 2014 GPV 11:30 Bo Lybæk, CEO since 2008 Closing remarks 13:00 and lunch Jens Bjerg Sørensen 16 Notes
Slide 17: Transformation of BioMar – so far…
Transformation of BioMar – so far… Schouw & Co. ownership 2005 of BioMar since 2005 Strong Latin America presence after acquisition of Provimi Expanding in core salmon markets and entering Australia and Iceland Venturing into shrimp feed with acquisitions in Ecuador and Vietnam Digitalisation and te
Slide 18: BioMar Group
BioMar Group Schouw & Co. Capital Markets Day Presented by Carlos Diaz, BioMar CEO
Slide 19: Agenda
Agenda Introduction Global Aquafeed Market New BioMar Strategy – Above & Beyond BioMar Insights The Future of BioMar Aquafeeds - Sustainability & Sourcing Q&A Powered by Partnership. Driven by Innovation. 19
Slide 20: Introduction
Introduction Powered by Partnership. Driven by Innovation. 20
Slide 21: Key Figures 2021
Key Figures 2021 Turnover* EBIT* Tonnage* Powered by Partnership. EUR ~ 1.9bn EUR ~82m ~1.58m tons Driven by Innovation. (Ex. JV’s EUR ~1.7bn) (Ex. JV’s EUR ~75m) (Ex. JV’s ~1.44m tons) We are innovators in high performance aquafeed dedicated to doing our part in sustainable global aquaculture. www.
Slide 22: BioMar Global Production Facilities
BioMar Global Production Facilities 17 sites ~ 2 mtons capacity Global Headquarters Production Facilities Aquaculture Technology Centres Sales Powered by Partnership. Driven by Innovation. 22
Slide 23: Global Aquafeed Market
Global Aquafeed Market Powered by Partnership. Driven by Innovation. 23
Slide 24: Global Megatrends & Ripple Effects into Aquaculture
Global Megatrends & Ripple Effects into Aquaculture Widely recognised global megatrends Examples of ripple effect into Increasing Importance of Aquaculture Aquacultural trends Aquaculture expansion to Demographic Change double production from 2010 levels by 2050 Aquaculture is the fastest growing pr
Slide 25: Global Market Growth
Shrimp and “other” show most promising growth globally Global Market Growth Historic1 Global aquafeed market by species Forecast (2015 - 2028F, Mt) CAGR Segment ’15-’21 ’21-’28F +3.7% 32.7 31.5 30.4 1.6 29.3 1.6 Seabass & 28.2 1.6 +8.1% +2.0% 27.2 1.5 4.7 Seabream +4.8% 26.2 1.5 4.6 25.3 1.5 4.5 1.4
Slide 26: Growth towards 2028
LATAM and “Other Asia (incl. Oceania)” show most promising growth Growth towards 2028 Historic1 Global aquafeed market by regions Forecast CAGR (2015 - 2028F, Mt) Segment ’15-’21 ’21-’28F +3.7% 32.7 North 31.5 0.5 +1.0% +2.3% 30.4 America 0.5 2.4 29.3 0.5 28.2 0.4 2.3 27.2 0.4 2.2 +4.8% 26.2 0.4 2.2
Slide 27: Above & Beyond
Above & Beyond Powered by Partnership. Driven by Innovation. 27
Slide 28: Above & Beyond - Our core ambitions
Above & Beyond - Our core ambitions With the new strategy, we strive to take courageous steps to go above and beyond expectations, being guided by our purpose and our pledge to the industry. We are committed to: Protect the Core • Protect the core of our company by commercial and operational excelle
Slide 29: BioMar Strategic House 2028+
BioMar Strategic House 2028+ 2028 strategic ambition Double Volume | Double Revenue C L I M A T E A C T I O N ● C I R C U L A R & R E S T O R A T I V E ● E N A B L E P E O P L E STRATEGIC ACTIVITIES Protect the Core Accelerate Growth Future-proof beyond feed We will protect the core business and cre
Slide 30: Revenue expansion of 19% & EBIT of 54%
Revenue expansion of 19% & EBIT of 54% 2028+ Strategy Financial Impact per Initiative A B C Protect the Core Accelerate Growth Future Proof the Business +18.6% +53.7% Revenue 25,500 21,500 (DKKmn) 13,986 +54.4% EBIT (Pre-PPA) +123.8% 2,100 (DKKmn) 1,360 608 2021A 2028F PTC 2028S EMEA Salmon Asia 202
Slide 31: The Salmon World
BioMar Insights The Salmon World Powered by Partnership. Driven by Innovation. 31
Slide 32: Growth in Salmon Market
Growth in Salmon Market Historic1 Global Salmon aquafeed market by regions Forecast (2015 - 2028F, Mt) CAGR Trends Segment ’15-’21 ’21-’28F +2.0% 4.6 4.7 4.4 4.5 • Consolidation locally and 4.3 0.2 +4.9% 4.2 0.2 0.2 North globally 4.2 0.2 +0.2% +1.75% 4.1 0.2 America 0.2 3.8 0.2 0.2 • Transparency &
Slide 33: BioMar footprint in the Salmon world
BioMar footprint in the Salmon world No. 1 in terms of UK Sales No. 2/3 in terms of NO Sales Market share ~ 31% of total market (78% of free market) Market share ~ 22% of total market (26% of free market) Focus: Focus: Be supplier of choice for non-captive feed volumes within UK and Ireland Producti
Slide 34: BioMar footprint in the Salmon world
BioMar footprint in the Salmon world No. 1 in terms of UK Sales No. 2/3 in terms of NO Sales Market share ~ 31% of total market (78% of free market) Market share ~ 22% of total market (26% of free market) Focus: Focus: Be supplier of choice for non-captive feed volumes within UK and Ireland Producti
Slide 35: Entering Iceland
Aquafeed profile: BioMar Insights Salmonoids in Iceland Entering Iceland Rationale Historic1 Feed Market Forecast (2015 - 2028F, hundred thousand tonnes) • Iceland stands out as an avenue for growth within salmonoids with an estimated CAGR of ~14.3% (’21-’28F) • Opportunity to set-up a carbon neutra
Slide 36: The Shrimp World
BioMar Insights The Shrimp World Powered by Partnership. Driven by Innovation. 36
Slide 37: Growth in Shrimp Market
Growth in Shrimp Market Historic1 Feed Market for Shrimp and Prawns1 Forecast CAGR Trends (2015 - 2028F, Mt) Segment ’15-’21 ’21-’28F • Movement from Asia towards LATAM In Ecuador reality is already Brazil +6.0% +3.5% exceeding predictions with 7.8 • Fast consolidation in 1,5mT in 2021 & 1,9mT in 20
Slide 38: Shrimp in LATAM: Growing within Shrimp
Aquaculture profile: Shrimp in LATAM Growing within Shrimp Historic1 Shrimp Aquafeed Market LATAM Forecast Overview strategic considerations - LATAM (hundred thousand tonnes) Shrimp in LATAM stands out as an attractive avenue for BioMar 24.5 to accelerate growth by: 22.7 1.5 – building on BioMar’s s
Slide 39: Attractive Markets for BioMar in Asia
Indonesia, India, Vietnam & Thailand Attractive Markets for BioMar in Asia Shrimp feed volume and growth in key countries in Asia Country Ranking CAGR ‘21-’28F Land Availability Stocking Density (2021, MT) Indonesia +5.0% 1 1/2 India +5.0% 2 4 China: ~1.4 CAGR ’21-’28F: +4.0% Vietnam +3.5% 3/4 3 Tha
Slide 40: Critical Factors for Success
Critical Factors for Success Latin America - Ecuador SouthEast South East Asia Asia -- Vietnam Vietnam Factors behind recent & future success in Ecuador Driving factors favouring Vietnam • Move from heavy dependency on Chinese market, opening Europe and US • Intensive farming but still availability
Slide 41: Technology Development
Technology Development + Advanced market Smart feeding Smart farming + High Tech penetration + A few big tech suppliers with 360 solutions and several small players focused on niche products + Integrated logistics + Centralized control rooms + Multitude of parameters monitored Data Driven - Precise
Slide 42: Strategic Options for a Feed Supplier
BioMar Insights: Introduction into farming technology for BioMar Strategic Options for a Feed Supplier Mills in new regions. Africa, LATAM or Asia. Feed for RAS and offshore Feed for new species. aquaculture systems Novel ingredients: Insects, Block chain solutions algae, microbial, etc. and data Do
Slide 43: AQ1 at a glance
Company Flash AQ1 at a glance HQ 75% Market Share Hobart, Tasmania Fully owned subsidiary in acoustic feeding for shrimp (Development, Assembly and of BioMar Group working – used by 8/10 top global AQ1 develops, shipment of products) under its own name shrimp farmers manufactures and distributes pas
Slide 44: Rationale for entering AQ1
Rationale for entering AQ1 Value for BioMar Expand Business Increasing consolidation in main shrimp markets resulting in bigger and more professional customers with existing customers by providing feeding technology and farm management software Big customers are better able to justify investment in
Slide 45: Real-Time Farm Management Information
Real-Time Farm Management Information Internet SF200 Software Feeding control and environmental monitoring Feeder SF200 Controller Radio Base Station Aeration Control Hydrophone D.O./Temp Probe Powered by Partnership. Driven by Innovation. 45
Slide 46: AQ1 Analytics
Products AQ1 Analytics Advanced Acoustic System Control Farm Operations & Management Control Module Powered by Partnership. Driven by Innovation. 46
Slide 47: The Future of BioMar Aquafeeds: Sustainability & Sourcing
The Future of BioMar Aquafeeds Sustainability & Sourcing Powered by Partnership. Driven by Innovation. 47
Slide 48: We are changing our feed for a future
s THE UNITED NATIONS %y SUSTAINABLE GOALS We are changing.our feed / for a future sWerld leaders have envisioned dGtacutuieirust OO ao a 4 ee | | by, 2050, without increasing pressure on wild fish and agricultural land*. A seemingly impossible.task, but if there is going to be a sustainable future,
Slide 49: Our Sustainability Journey
Our Sustainability Journey 1988 1997 2013 Dansk Ørredfoder introduces the first 2007 BioMar establishes sustainability Factory in Brande feed plant in the world to environmentally declared fish feed BioSustain program launched to create and as one of the main goals in feed comply with the new ASC st
Slide 50: Our 2030 Ambitions
Our 2030 Ambitions 1/3 by 2030 50% by 2030 100,000 by 2030 Reduce BioMar total feed BioMar feeds are 50% circular 100,000 people directly GHG footprint by 1/3 by 2030 and restorative by 2030 engaged in capacity building initiatives annually by 2030 Powered by Partnership. Driven by Innovation. 50
Slide 51: Video Ambitions
Video 1 Ambitions https://www.youtube.com/watch?v=ZHrEvhTRWTc Powered by Partnership. Driven by Innovation. 51
Slide 52: Evolution in Product Development
Salmon Evolution in Product Development General Marketing / Differentiation / Branding Specialized Bulk Semi-Finished Special Production Special Production Special Production Sustainability Whole Side Fillet Processing Biology Whole Half Side Portion Size Organic Nutrition Headless etc. Chop Skin &
Slide 53: Connecting Value Chain Insights
Connecting Value Chain Insights FEED FISH PRODUCT HOT CONSUMER VALUE & PRODUCTION PRODUCTION CLAIMS TOPICS SATISFACTION Raw materials Compounding Converting Brands Retail Technology push A Market pull B • Fish meal • Certified RMs • Fish welfare • High omega-3 • Overfishing concerns • Fish oil • Tri
Slide 54: Raw Materials: An important part of the story
Raw Materials: An important part of the story OVERALL NORWAY BIOMAR NORWAY BIOMAR FUTURE? 100% 10 90% 9 Single cell raw materials 80% 8 Micro ingredients 70% 7 Plant oil Raw material inclusion levels Raw material inclusion level Plant dry matter 60% 6 PAPs 50% 5 Fish oil 40% 4 Krill meal 30% 3 Fish
Slide 55: Raw Material Development
Raw Material Development BioMar Market Price Index 200 180 169 160 140 Index 120 Invasion of Ukraine 100 100 80 COVID-19 Impact 60 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec '20 '20 '20 '20 '20 '20 '21 '21 '21 '21 '21 '21 '
Slide 56: The Future of BioMar Aqua Feeds
The Future of BioMar Aqua Feeds More by-product More ingredients from More ingredients from ingredients and single cell technologies lower trophic levels trimmings The majority of the diet will still be vegetables
Slide 57: Single Cell Production
Single Cell Production Conventional Pathway Microalgae Schizochytrium sp. Zooplankton Fish Fishing Vessel Fish Oil Aquaculture Alternative Pathway Sugar Cane Sugar Cane Fermentation Natural Algal Oil & Meal Powered by Partnership. Driven by Innovation. 57
Slide 58: Low Trophic Production
Low Trophic Production Conventional Pathway Microalgae Schizochytrium sp. Zooplankton Fish Fishing Vessel Fish Meal and Fish Oil Aquaculture Proton™ Alternative Pathway CO2 + H2 + O2 + NH2 Fermentation Protein Meal Powered by Partnership. Driven by Innovation. 58
Slide 59: The Blue Journey
The Blue Journey Blue Impact uses applied, proven, science-based sustainability Transforming metrics to select low impact ingredients to progressively transform Aquaculture aquaculture. As we continue to innovate towards a more sustainable future, Blue Impact is a catalyst for driving change. Novel
Slide 60: Video Blue Impact
Video 2 Blue Impact https://www.youtube.com/watch?v=UYGm58XGkLA Powered by Partnership. Driven by Innovation. 60
Slide 61: Final Remarks
Final Remarks • BioMar starts from a strong base, despite last period challenges • Strategy “ Above & Beyond” is ambitious but realistic in growth and profitability • Commercial excellence and Sustainability as a driver more important going foward • Development goes beyond feed to become a true solu
Slide 62: Q&A
Q&A Powered by Partnership. Driven by Innovation. 62
Slide 63: Agenda
Agenda Strategic update 6 Businesses 73 Factories1 ~30bn DKK revenue2 09:00 Jens Bjerg Sørensen, CEO since 2001 ~15,000 Employees1 31 Countries1 ~2.2bn DKK EBITDA2 BioMar 09:45 Carlos Diaz, CEO since 2014 GPV 11:30 Bo Lybæk, CEO since 2008 Closing remarks 13:00 and lunch Jens Bjerg Sørensen 63 Notes
Slide 64: GPV's transformation journey – so far…
GPV’s transformation journey – so far… 2016 Schouw & Co. entered EMS 2017 Small acquisition of BHE 2019 Doubling by acquiring CCS 2022 Doubling by merger with Enics future Utilise European leadership 64
Slide 65: Presentation of GPV
Presentation of GPV Schouw & Co. Capital Markets Day PRESENTATION BY BO LYBÆK, CEO OF GPV Confidential and proprietary information Confidential and proprietary information 65
Slide 66: Bo Lybæk, CEO of GPV
BO LYBÆK, CEO OF GPV Bo Lybæk Since 2008 CEO, GPV 20+ years international experience Lived and worked eight years in Switzerland Deputy chairman for the board of the Danish ICT and Electronics Federation (DI Digital) Confidential and proprietary information 66
Slide 67: Agenda
Agenda 1. Who is GPV? Facts & figures Customer cases Live stream Electronics Thailand production tour Customers & sales pipeline with Thomas Kaiser, EVP of GPV 2. Transformation journey Development with Schouw & Co. as owner Strategic ambitions 2025+ Enics merger Leadership & culture 3. Looking ahea
Slide 68: Values are our foundation
WHO IS GPV? Values are our foundation ONE COMPANY FACTS & PERFORMANCE RESPONSIBILITY PROACTIVITY WINNING SPIRIT Confidential and proprietary information 68 #ResultsAreCreatedByPeople
Slide 69: About GPV
2021 FACTS AND FIGURES About GPV SERVICES KEY FIGURES HIGH MIX FOCUS REVENUE 2021 NUMBER OF EMPLOYEES 430 EUR million 4,000 worldwide 111,000 Deliveries to customers SITES 50 countries 24 million products served delivered INDUSTRIES Among the 26% MEASUREMENT 10% CLEANTECH 14,000 different active pro
Slide 70: Supports safe air transportation
CUSTOMER CASES Supports safe air transportation Customer description A world-leader in providing proprietary solutions in specific segments in Transport and Defense markets. “GPV is professional, proactive and flexible, and always provides honest and realistic information.” Customer product GPV prod
Slide 71: Assists critical decision-making in surgical interventions
CUSTOMER CASES Assists critical decision-making in surgical interventions Customer description Providing surgical interventions with real-time visual guidance, giving surgeons the needed information immediately. “GPV helps raise the quality level, and no matter who you talk to in the organization yo
Slide 72: Used by professional athletes and rescuers
CUSTOMER CASES Used by professional athletes and rescuers Customer description A market leader in innovation of high- quality products used for professional mountain sport and safety. “GPV is trustworthy and delivers an innovative product in excellent quality and in the required quantity.” Customer
Slide 73: Electronics production site in Bangkok, Thailand
ELECTRONICS PRODUCTION THAILAND Electronics production site in Bangkok, Thailand The Thailand facility is the largest production site in GPV Electronics Business area Testing Box-Build/Mechatronics Established: 2001 Area: 15,000 sqm Facts & figures (22,000 sqm in 2023) Employees: 1,400 (June 22) Med
Slide 74: Main process overview
ELECTRONICS PRODUCTION THAILAND Main process overview Surface Mounted Through-hole Technology (SMT) Technology (THT) Final assembly Highly automated processes Semi automated processes Manual processes Confidential and proprietary information 74
Slide 75: Live stream electronics production site in Bangkok
LIVE STREAM ELECTRONICS PRODUCTION SITE IN BANGKOK With Alessandro Marinai, Operation Director Confidential and proprietary information 75
Slide 76: Customers & sales pipeline
CUSTOMERS & SALES PIPELINE With Thomas Kaiser, EVP of GVP Confidential and proprietary information 76
Slide 77: Global EMS market
CUSTOMERS & SALES PIPELINE Global EMS market Gigantic market potential requires best fit to GPV approach GLOBAL EMS MARKET COMMENTARY EUR billion ~4801 The global EMS market was valued at EUR 480 Global bn in 2021, and is predicted to have a yearly market growth rate of 6%. GPV GPV has an addressabl
Slide 78: Clear customer portfolio and segment structure
CUSTOMERS & SALES PIPELINE Clear customer portfolio and segment structure Provides a strong foundation for our rigid approach in executing our business CUSTOMER PORTFOLIO SPLIT CURRENT SALES PIPELINE Balanced portfolio of approx. 300 customers Sales pipeline split in phases With clear focus on winni
Slide 79: Digitised customer journey
CUSTOMERS & SALES PIPELINE Digitised customer journey Integrated with a strong CRM platform as the core focal point Digitised setup secures fast lead qualification and structured conversion management AWARENESS CONSIDERATION PURCHASE RETENTION LOYALTY Digital Buy grid Pipeline Integration Customer a
Slide 80: 2. Transformation journey
2. Transformation journey Development with Schouw & Co. as owner Strategic ambitions 2025+ Enics merger Leadership and culture Confidential and proprietary information 80
Slide 81: Strategy ambition to transform GPV into a EUR 1+ bn company
DEVELOPMENT WITH SCHOUW & CO. AS OWNER Strategy ambition to transform GPV into a EUR 1+ bn company EUR ~1.4bn Expected after closure of transaction EUR ~1.1bn EUR ~530m EUR ~390m EUR EUR EUR ~120m ~80m ~100m 1961 2008 2012 2016 2019 2022 2026 GPV is Restructure EMS New owner Major leap Merger Future
Slide 82: Strategic ambitions 2025+
STRATEGIC AMBITIONS 2025+ Vision We are the most trusted, powerful, and top-of-mind EMS-partner to our customers Mission We enable you to accomplish more through excellent performance across the high-mix EMS value chain Financial ambitions ESG ambitions Grow sales to Deliver Lower carbon footprint E
Slide 83: Market initiatives in brief
STRATEGIC AMBITIONS 2025+ Market initiatives in brief Expanding and strengthening our service offerings like Expand service offerings D&E, life-cycle services, after sales and logistics Expand in regions where GPV already has a foothold, and Expand high-potential regions increased efforts should hav
Slide 84: Sustainability as a cross-functional business enabler
SUSTAINABILITY Sustainability as a cross-functional business enabler Our journey Our ambitions Our actions LTIR Ambition1) UN SDG Lost Time Injuries per 1 mio. working hours 2.1 2.0 <1.0 Schouw & Co. -52% ESG Report 2020 2021 … 2025 GHG Ambition2-3) Tonnes CO2e emission per DKKm sales GPV GPV GPV GP
Slide 85: Internal initiatives in brief
STRATEGIC AMBITIONS 2025+ Internal initiatives in brief Ensure a business platform where core processes and 1 Standardise Business Platform applications are harmonised across all units in GPV Focus is a setup with clear priorities for operational 2 Drive operational excellence excellence making us a
Slide 86: Enics merger
ENICS MERGER 2 No. + = with European headquarters Final closing of the transaction is subject to customary approvals, including from competition authorities Confidential and proprietary information 86
Slide 87: Combining GPV and Enics is a big and bold move
ENICS MERGER Combining GPV and Enics is a big and bold move – an instant way to become second-largest EMS company with European headquarters EUROPEAN TOP20 EMS LANDSCAPE, 2021 REVENUE MARKET POSITION1 EUR million 1,575 Revenue incl. M&A full year estimate 964 696 535 515 506 501 470 441 429 310 305
Slide 88: Good performance for both GPV and Enics
ENICS MERGER Good performance for both GPV and Enics Long term, both companies have performed well, however, there are differences1 GPV PERFORMANCE ENICS PERFORMANCE Sales Sales EBITDA % EBITDA % EURm EURm 13.3% 29.1% 5.9% -0.4% 500 12% 600 12% 400 10% 500 10% 8% 400 8% 300 6% 300 6% 200 4% 200 4% 1
Slide 89: Strong complementary fit between GPV and Enics
ENICS MERGER Strong complementary fit between GPV and Enics NewCo market leader in Nordics & Switzerland with high potential in North America and rest of DACH COMPLEMENTARY CUSTOMER LANDSCAPE COMPLEMENTARY COMPETENCIES GPV Enics 80% of major High-mix EMS value chain customers’ HQ in DK and DACH, Foc
Slide 90: Strong European NewCo with global reach
ENICS MERGER Strong European NewCo with global reach Production in best cost Europe, Asia and Americas combined with customer proximity COMBINED FOOTPRINT OVERVIEW Americas Europe Asia Business HQ Manufacturing sites Am MX DK Western Europe CH AT DE FI SE SK CEE1 EE CN TH Asia LK MY Confidential and
Slide 91: The common NewCo business case target significant growth
ENICS MERGER The common NewCo business case target significant growth The NewCo including M&A shows growth of 7.6% revenue CAGR ‘21-’26, reaching EUR ~1.4 bn NEWCO REVENUE: TARGET CASE COMMENTARY FY21A-FY26F, EUR MN M&A Organic growth Growth from FY21 towards FY26 driven by organic growth +7.6% ~200
Slide 92: Main steps in the profitability journey
ENICS MERGER Main steps in the profitability journey Aiming at high benchmark EBITDA margin level NEWCO EBITDA: TARGET CASE COMMENTARY FY21A-FY26F, EUR MN An overall uplift of EBITDA is generated by revenue growth EBITDA margin and general efficiency improvements across NewCo 7.9% Scale synergies ar
Slide 93: The common business plan requires handling of top-line as well as bottom-line focus areas
ENICS MERGER The common business plan requires handling of top-line as well as bottom-line focus areas TOP-LINE AREAS BOTTOM-LINE AREAS Customer Market Materials & NewCo Synergy Technology Processes & Culture & portfolio offerings Components branding fulfilment integration Knowledge Change ▪ Bring c
Slide 94: GPV learnings from last, transformative merger
ENICS MERGER GPV learnings from last, transformative merger The post merger integration was overall successful where key learnings should be remembered SALES DEVELOPMENT LEARNINGS REVENUE EUR million Vital to keep high customer focus ~960 1 The customers are the most important and have highest focus
Slide 95: A clear overarching direction is set for the integration
ENICS MERGER A clear overarching direction is set for the integration To extend our service offerings, leveraging in-house capabilities, deliver uncompromising service excellence and build on our combined peoples’ capabilities The Create a European EMS leader, together ambition The Prompt merger in
Slide 96: Many opportunities lies ahead
ENICS MERGER Many opportunities lies ahead Increase revenue and margin through top-line and bottom-line initiatives Expand service offerings Expand in high potential geographies Expand in attractive segments – Design & Engineering – Nordics (DK, NO, SE, FI) – Measurement & Control – Turnkey/ Box-bui
Slide 97: Leadership & culture
LEADERSHIP & CULTURE “Together with our new colleagues at Enics, we are creating the second-largest EMS group headquartered in Europe.” Confidential and proprietary information
Slide 98: 3. Looking ahead
3. Looking ahead Next-step on the journey Confidential and proprietary information 98
Slide 99: Next steps in GPV's growth journey have been laid out
LOOKING AHEAD Next steps in GPV’s growth journey have been laid out Where M&A plays a significant role in further developing our business Organic growth Continued strong pipeline management Further M&A Main building blocks have been laid out Acquisition type Main ambition Timeline A Step change Tran
Slide 100: 4. Key take-aways
4. Key take-aways Confidential and proprietary information 100
Slide 101: Key take-aways
LOOKING AHEAD Key take-aways Summary of key points Schouw & Co.’s transformation drive is working Three record years and we are looking into the next (2022) We have been through two tough years and don’t know what lies ahead Looking towards EUR 1.4bn – respecting focus on Enics integration We delive
Slide 102: Thank you for your attention!
HEAD OFFICE EUROPE GPV International A/S GPV Electronics CH Lysholt Allé 11 Mendrisio, Switzerland 7100 Vejle, Denmark GPV Electronics DE Hildesheim, Germany ASIA GPV Electronics DK GPV Electronics LK Aars, Denmark Kochchikade, Sri Lanka GPV Mechanics DK GPV Electronics TH Tarm, Denmark Bangkok Bang
Slide 103: Agenda
Agenda Strategic update 6 Businesses 73 Factories1 ~30bn DKK revenue2 09:00 Jens Bjerg Sørensen, CEO since 2001 ~15,000 Employees1 31 Countries1 ~2.2bn DKK EBITDA2 BioMar 09:45 Carlos Diaz, CEO since 2014 GPV 11:30 Bo Lybæk, CEO since 2008 Closing remarks 13:00 and lunch Jens Bjerg Sørensen 103 Note
Slide 104: Closing remarks: Roadmap towards 2025
Closing remarks: Roadmap towards 2025 Focus in the short run… …and in the years to come Secure profitability ▪ Achieve compensation for price increases of raw materials, Enable responsible transformation freight and energy ▪ Operational and commercial excellence Secure the path to profitable growth
Slide 105: Results are created by people
Results are created by people Aktieselskabet Schouw & Co. Chr. Filtenborgs Plads 1 8000 Aarhus C Denmark +45 86 11 22 22 schouw@schouw.dk www.schouw.dk www.linkedin.com/company/schouw Nasdaq Copenhagen ticker SCHO 105