Slide 1: First Quarter Results 2013
NORMA Group p First Quarter Results 2013 Maintal, 7 May 2013 Customer Value through Innovation
Slide 2: Highlights Q1 2013
Highlights Q1 2013 Sales Sales on previous years level at EUR 159.3 million, -0.3% (Q1 2012: EUR 159.7 million) EBITA Adjusted EBITA of EUR 28.3 million slightly down from EUR 29.2 million y-o-y Margin Adjusted EBITA margin on a high sustainable level of 17.8% of sales (Q1 2012: 18.3%) Equity Equity
Slide 3: Start into 2013 confirms Full Year Guidance
Start into 2013 confirms Full Year Guidance Sales Development in EUR million Sales 2012 2013 Change Change in % thereof thereof acquistions currency Q1 159 7 159.7 159 3 159.3 -0.4 04 -0.3% 0 3% +6 0% +6.0% -0.2% 0 2% Strong positive effects from acquisitions in Switzerland, Italy, Malaysia, Nethe
Slide 4: Sales by Regions and by Way-to-Market
Sales by Regions and by Way Way-to-Market to Market Asia-Pacific gains share due to successful acquisition (Q1/2013: 8% vs. Q1/2012: 6%) Split by way-to-market at 70% EJT and 30% DS D di k consolidated Davydick lid t d from f JJanuary 2013 onwards d iinto t DS Q1 2013 (2012) sales l bbreakdown
Slide 5: Sustainable Margin Development Continues in 2013
Sustainable Margin Development Continues in 2013 17.4% 17.7% 17.4% EUR million 35 18.9% 20% 18.2% 18.3% 18.0% 18.3% 18.1% 17.8% 17.4% 17.5% 17.2% 30 16 0% 16.0% 16 2% 16.2% 1 9% 15.9% 15% 25 20 10% 15 28.4 29.2 28.6 28.3 25.5 26.2 25.7 22.8 22.7 22.6 21.9 10 19.3 20.6 5% 5 0 0% Q1/10 Q210 Q3/10 Q4/1
Slide 6: Material Consumption improved
Material Consumption improved Material consumption improved to 43.2% Personnel costs affected especially by focussing on new business opportunities Nearly flat ratio of value-added costs (personnel expenses + Opex): Q1/2013: 36.7% vs. Q1/2012: 36.4% Material Costs (in EUR million) Personnel Ex
Slide 7: No Operational Adjustments in Q1 2013
No Operational Adjustments in Q1 2013 in EUR million Reported PPA adjustments adjusted Sales 159.3 0 159.3 EBITDA 32.6 No operational adjustments 32.6 EBITDA margin 20.4% 20.4% EBITA 28.27 0.08 28.35 EBITA margin 17.7% 17.8% EBIT 25.5 2.1 27.6 EBIT margin 16.0% 17.3% Net Profit 15.8 1.5 17.3 N t Pro
Slide 8: Sustainable Development of adjusted EPS in Q1 2013
Sustainable Development of adjusted EPS in Q1 2013 adjusted EPS* (in EUR) reported EPS* (in EUR) 0,6 0.54 0.54 0,3 , 0.51 0.50 0 Q1/2012 Q1/2013 Q1/2012 Q1/2013 net income in 17.3 17.3 16.3 15.8 EUR million * based on number of shares of 31.9 million 8
Slide 9: Operating Net Cash Flow influenced by higher working capital consumption
Operating Net Cash Flow influenced by higher working capital consumption Operating net cash flow in EUR million Q1 2012 Q 1 2013 Variance EBITDA 32.7 32.6 -0.3% Δ ± Working capital -10.5 -20.9 +99.0% Operating net cash flow before investments from 22.2 11.7 -47.3% 47.3% operating business Δ ± Invest
Slide 10: Net Debt, Financing and Equity Ratios
Net Debt, Financing and Equity Ratios Net Debt (in EUR) Equity Ratio 300 174* 173* 31.03.2013 31.12.2012 Equity Ratio (Equity / 200 42 4% 42.4% 41 7% 41.7% Balance Sheet Total 246 250 100 Debt Ratios 0 -72 -77 excluding derivatives* 31.03.2013 31.12.2012 -100 Leverage (net debt* / 31 Dec. 2012 31 Ma
Slide 11: Acquisition of Davydick & Co. Pty. Ltd.
Acquisition of Davydick & Co. Co Pty. Pty Ltd. Ltd M&A Acquisition of Davydick & Co. in January 2013 Distribution for various elements in the transportation of water in irrigation systems. Specialised in Business supplying a comprehensive range of rural irrigation fittings, valves, and pumps under t
Slide 12: Outlook 2013 – Company Guidance Confirmed
Outlook 2013 – Company Guidance Confirmed Sales Moderate growth, plus approx. EUR 20 million from recent acquisitions EBITA margin On the level of the three previous years, more than 17% Investments in Approx. 4% of EJT sales R&D Material ratio Approx. on the level of the previous year Financial res
Slide 13: Appendix Strategy
NORMA Group p First Quarter Results 2013 Frankfurt, 7 May 2013 Appendix Strategy Customer Value through Innovation 13
Slide 14: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® ~ 53% of sales Emission Next global level of emission reduction ramps up in 2013 reduction with EURO 6 in Europe NORMACLAMP TORRO Weight Ongoing trend in many industri
Slide 15: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission ContentRegulations Drive Increased Joining Technology Today EURO 5 EURO 6 E Europe EURO 4 EURO 3 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J '19 J. 19 Japan JPN '98 JPN '02 JPN '05 EURO 3 EURO 5 EURO 6 Brazil EURO 2 EURO 1 EURO 3 EURO 4 EURO 5 Russia EURO 1 EURO
Slide 16: Strong Content Growth based on EURO 6
Strong Content Growth based on EURO 6 EURO 6 introduction for trucks and passenger vehicles in 2014 triggers new engine generations and ramp-up in 2013 Market for joining technology is expected to outgrow the respective end-markets, driven by megatrends including Additional components in new e
Slide 17: Premium Pricing through Technology and Innovation Leadership
Premium Pricing through Technology and Innovation Leadership in Mission Mission-Critical Critical Components Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value A l off Basis for premium pricing: Example: joining technology Harvester content Ma
Slide 18: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across end-markets Sales €m End-market Additional growth 605 (year) 600 (2013-18 CAGR) production unit for Joining growth technology market ~25% 500 Fluid Passenger vehicles +5% add. 2-4% 400 Commercial
Slide 19: New Acquisitions Lead to Sales Run Rate of EUR 625 m
New Acquisitions Lead to Sales Run Rate of EUR 625 625* m Sales consolidation effects 2012 / 2013 in EUR million 2012 2013 Total Connectors Verbindungstechnik AG Switzerland 11 4 15 Nordic Metalblok S.r.l. Italy 3 3 6 Chien Jin Plastic Sdn. Bhd. y Malaysia 0 7 7 Groen Bevestigingsmaterialen Netherla
Slide 20: 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
Slide 21: Acquisition of Nordic Metalblok S.r.l.
Acquisition of Nordic Metalblok S.r.l. Srl 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 heating, Model ventilation and air conditioning industry and the agricultural and construction s
Slide 22: Acquisition of Chien Jin Plastic Sdn. Bhd.
Acquisition of Chien Jin Plastic Sdn. Sdn Bhd. Bhd Acquisiton of Chien Jin Plastic, Malaysia, in October 2012 M&A Closingg expected p toward yyear end 2012 Specialised in joining elements for plastic and iron pipe systems for different application areas, esp. Business drinking and domestic water dis
Slide 23: Increase in Ownership in Groen Bevestigingsmaterialen BV
Increase in Ownership in Groen Bevestigingsmaterialen BV M&A 60% increase in ownership to 90% in Groen Bevevestigingsmaterialen B.V. in December 2012 Wholesale supplier of hose and pipe clamps and coupling to the industrial, construction, agriculture, Business plumbing, hardware and automotive secto
Slide 24: NORMA Group Worldwide
NORMA Group Worldwide EMEA Czech Republic (P) France (P, D) Germany (P, D) Italy (P, D) Netherlands (D) Poland (P) Russia (P, D) Serbia (P, D) S i (P, Spain (P D) Sweden (P, D) Switzerland (P, D) Turkey (D) United Kingdom (P, D) Americas Brazil D) Mexico (P) USA (P, D) Asia-Pacific Asia Pacific Aust
Slide 25: History of Excellence
History of Excellence Acquisition MDAX listing 2013 Davydick & Co, Australia Acquisition Connectors Acquisition Nordic Acquisition Chien Acquisition Groen 2012 Verbindungstechnik, Switzerland Metalblok, Italy Jin Plastic, Malaysia Bevestigingsmaterialen, Netherlands 2011 Akquisition Akquisition Open
Slide 26: Historic Growth Track Record
Historic Growth Track Record Historic revenue development (1997 – 2012) EUR million 605 600 581 490 500 458 385 400 1 330 277 300 229 242 198 207 200 174 182 138 150 121 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 HGB IFRS 1997 to 2012: 16 years of growth 26
Slide 27: Enhanced Stability through Broad Diversification
Enhanced Stability through Broad Diversification Across Products, Products End-Markets End Markets and Regions Examples of NORMA Group’s key end-markets Construction / infrastructure / Engines Commercial vehicles Passenger vehicles Construction equipment water management Wholesalers & Technical Agri
Slide 28: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways Ways-to-Market 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 Ser
Slide 29: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights 1 Market leader in attractive engineering niche markets with strong growth prospects 2 Premium ppricingg through g technology gy and innovation leadershipp in mission-critical components p 3 Enhanced stability through broad diversification across products, end
Slide 30: Appendix Full Year 2012
NORMA Group p First Quarter Results 2013 Frankfurt, 7 May 2013 Appendix Full Year 2012 Customer Value through Innovation 30
Slide 31: Highlights 2012 - Strategy
Highlights 2012 - Strategy Acquisitions 5 acquisitions in Switzerland, Italy, Malaysia, Netherlands and Australia APAC Opening of new offices in Vietnam, Indonesia and the Philippines Greenfield New production facility in India to meet increased sales demand APAC NORMA NORMACONNECT V profile clamp p
Slide 32: Highlights 2012 – Financials (I)
Highlights 2012 – Financials (I) Record sales of EUR 604.6 million (2011: EUR 581.4 million) Sales Growth of 4.0% including acquisitions of EUR 14.3 million Adjusted EBITA Record adjusted EBITA of EUR 105.4 million (2011: EUR 102.7 million) Margin Sustainable high-level EBITA margin of 17.4% (2011:
Slide 33: Highlights 2012 – Financials (II)
Highlights 2012 – Financials (II) Net debt down to EUR 174.2 million from EUR 176.7 million in 2011* 2011 despite payment N t Debt Net D bt of EUR 50 million for dividend and acquisitions Cash Flow Excellent adjusted net operating cash flow of EUR 81.0 million (2011: EUR 66.8 million) Dividend propo
Slide 34: Record sales of EUR 604.6 million including acquisitions and positive currency effects
Record sales of EUR 604.6 million including acquisitions and positive currency effects Weaker European economic environment visible in 2nd half year Globalisation strategy pays off with positive currency effects Sales Development in EUR million Sales 2011 2012 Change Change in % thereof thereof
Slide 35: Sales by regional reporting segments
Sales by regional reporting segments Reporting segment Asia-Pacific recorded direct sales of 7% in 2012 or 10% including all NORMA exports into the region (sales by destination) Excellent double-digit growth in Americas and Asia-Pacific Weaker European environment is outperformed by higher con
Slide 36: Sales by Way-to-Market and by Industries
Sales by Way Way-to-Market to Market and by Industries Stable breakdown by way-to-market: Acquisitions included in Distribution Services Majority of sales goes to non-automotive industrials, distributors as well as general tiers S l to industrial Sales i d i l suppliers li iinclude l d various
Slide 37: No Operational Adjustments in 2012
No Operational Adjustments in 2012 No operational adjustments despite recent acquisitions in Switzerland, Italy, Malaysia and Netherlands Ongoing PPA adjustments at EUR 0,16 on EPS level in EUR million Reported PPA adjustments adjusted Sales 604.6 0 604.6 EBITDA 120.8 No operational adjustments
Slide 38: Overview on Adjustments in prior years
Overview on Adjustments in prior years Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011) Only minor PPA adjustments in 2012 on EBITA level in EUR million 2010 2011 2012 Reported EBITA 64 9 64.9 84 7 84.7 105 2 105.2 + Restructuring Costs 1.3 1.8 0 + Non Non-rec
Slide 39: EPS – Dividend Proposal EUR 0.65 per share
EPS – Dividend Proposal EUR 00.65 65 per share Dividend proposal to the shareholders at the AGM on 22 May 2013: EUR 0.65 per share = 3.1% dividend yield* Pay-out of EUR 20.7 million for 31,862,400 shares equals 33.5% of adjusted net income of EUR 61.8 million pro forma EPS Adjusted EPS Reported
Slide 40: Material consumption and OPEX improved
Material consumption and OPEX improved Improved material costs and OPEX compensated higher personnel expenses and lead to sustainable margin Higher personnel costs also due to expansion of Asia/Pacific business Material Costs (in EUR million) P Personnel l Expenses* E * (i (in EUR million) illi
Slide 41: Profit & Loss (adjusted & reported)
Profit & Loss (adjusted & reported) in EUR million 2012 2011 p reported adjusted j reported p adjusted j Sales 604.6 604.6 581.4 581.4 Gross Profit 344.4 344.4 322.6 322.6 EBITDA 120.8 120.8 100.2 117.0 EBITA 105.2 105.4 84.7 102.7 in % 17.4 17.4 14.6% 17.7% EBIT 94.4 101.9 76.6 99.7 in % 15.6 16.9
Slide 42: Slight temporary increase in TWC through Acquisitions in Distribution Services
Slight temporary increase in TWC through Acquisitions in Distribution Services Services. Optimization ongoing in 2013 18.5% at sales run EUR million rate of EUR 625 m 200 19.1% 20% 18.1% 18.3% 150 15% 81 79 100 70 14.3% 13.9% 13.1% 10% 50 65 13.2% 67 11.5% 74 12.3% 5% 0 -46 -9.4%* -41 -7.1% -38 -6.3
Slide 43: Development of Equity: Strong Equity Ratio after Capital Increase
Development of Equity: St Strong Equity E it R Ratio ti after ft Capital C it l Increase I 13.5% 39.5% 41.7% EUR million -19 ** 300 57 -6 * -5 36 200 147 288 256 100 78 0 Equity 2010 Capital Increase Profit Consolidation* Equity 2011 Profit* Dividend Others** Equity 2012 Balance 579 649 692 Sheet To
Slide 44: Solid development of Balance Sheet
Solid development of Balance Sheet (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets T t l equity Total it 288 3 288.3 256 0 256.0 436.8 401.0 / Property
Slide 45: Very Strong Operating Net Cash Flow in 2012
Very Strong Operating Net Cash Flow in 2012 Operating net cash flow in EUR million 2011 2012 Variance EBITDA* 117.0 120.8 3.3% Δ ± Working capital -19.5 -9.8 -50.1% Operating net cash flow before investments from 97.5 111.0 13.9% operating business Δ ± Investments from operating business -30 7 -30.7
Slide 46: Cash Flow Statement
Cash Flow Statement Adjusted operating net cash flow strongly improved by 190 BP to 13.4% of sales (2011: 11.5%) 11.5% of sales 13.4% of sales 100 80 0 10 4 60 40 81 67 20 0 adjusted operating ∆ adjusted EBITDA ∆ Working Capital ∆ investments from operating net cashflow 2011 operating business net
Slide 47: Continuation of Growth Track and Sustainable Margin into 2012
Continuation of Growth Track and Sustainable Margin into 2012 Revenue (in EUR million) Gross profit (in EUR million) 400 54.9% 55.3% 56.0% 55.5% 57.0% 60% of sales 581 605 600 458 490 300 450 344 40% 330 323 200 300 275 251 182 20% 150 100 0 0 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Per
Slide 48: Pro-active FCF Management to be Continued
Pro-active Pro active FCF Management to be Continued Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 200 18 5% 18.5% 18 0% 18.0% 18 1% 18.1% 18 3% 18.3% 18 5%* 18.5% 20% of revenues 80 150 100 70 81 79 49 45 10% 50 74 54 45 65 67 60 0 -19 -30 -46 -41 -38 -50
Slide 49: Shareholder Structure
Shareholder Structure Identified institutional Shareholders 100% 75% 27% 50% 25% 27% 25% 21% 0% ppre IPO p IPO post Dec. 2012 Todayy Dec. 2011 G Germany U it d Kingdom United Ki d USA R t off World Rest W ld 3i MABA CYPRUS Ltd. old & existing management free float Free float per Jan. 2013 includes:
Slide 50: Financial Calendar and Contact
Event Date Annual General Meeting 22 May 2013 Publication of Q2 Results 2013 07 August 2013 Publication of Q3 Results 2013 06 November 2013 Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 6102 741 Fax: +49 6181 6102-7641 Email: Andreas.Troesch@normagroup.com 50
Slide 51: 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 “