Raba Automotive Group Nyrt. · BET:RABA
Raba Automotive Group Nyrt — Investor Presentation (December 2002)
31 slides from Raba Automotive Group Nyrt's investor presentation, Dec 6, 2002
Slide 1: Rába 2002-2003
Rába 2002-2003 © Rába Rt. 1 Dec. 6, 2002
Slide 2: Restructuring and its results
Restructuring... Restructuring... Restructuring and its results 2002: 2002: The Theyear yearof ofinvestment investmentand and streamlining streamliningin inorder orderto toachieve achieve competitiveness competitivenessininan anunfavourable unfavourable economic economicenvironment environment …and
Slide 3: The aims of restructuring: focusing - efficiency improvement
The aims of restructuring: focusing - efficiency improvement Restructuring and its results Improving Improving profitability profitability Portfolio Perfecting Perfectingoperations operations Portfoliocleaning cleaning Strategic Strategicbusiness businessdevelopment development BPR BPRininthe the En
Slide 4: Portfolio cleaning
Portfolio cleaning Restructuring and its results Rába Holding Sold Rába Kispest Rába Sárvár Fireplace sold Rába Axle Rába Vehicle factory Rába Asset Management Investment in subsidiaries erged Bus sed MRába clo Szolgáltatóház Rába Engine Sold Mór ’03 Sale in house -service Rába Prague Rába Bucharest
Slide 5: Results of portfolio cleaning
Results of portfolio cleaning Restructuring and its results Rába Holding Rába Componenets Rába Axle Rába Vehicle Rába Asset Manangement Services House Ipartechnika* Results : Results: *to be spun off in 2003 1. 1. Strategic Strategicfocus focusononcore corebusinesses businesses 2. 2. Operations alie
Slide 6: Impacts of portfolio cleaning
Impacts of portfolio cleaning Business Strategic position Impact on One-off Impact on next Impact on Restructuring unit consolidated impact year(s)’ profits headcoun and its results revenues t (HUF, million) Non core Stadium business 0 + K 0 Bus Identity conflict assembly in market -2 300 (-) K -300
Slide 7: Strategic business development
Strategic business development Restructuring and its results components components components components axles Truckaxles axles Existing Busaxles road Offroad Seats, Seats, Potential Truck Axle Axle Bus Off Aims, Aims,focuses: focuses: Americas Americas •To •Tosupport supportexisting existingkey key
Slide 8: Investing in assets
Investing in assets Restructuring and its results 4500 4000 3500 3000 2500 Maintaining Developing 2000 75.5% 1500 1000 40.9% Project Projectbased , based, 500 0 average average 2001 2002 rate rateof ofreturn: return: 2001 2002 4.4 4.4years years Investment to develop 1 360 3 375 Investment to mainta
Slide 9: Fewer people - more efficiently
Fewer people - more efficiently Restructuring and its results Traning costs per capita Fluctuation 2001 2002 2001 2002 HUF 11.900 HUF 23.400 1.95% 1.5% Use of work time per month Language knowledge 2002 2002 2001 2001 3% 4.5% © Rába Rt. 138 hours 141 hours 9 Dec. 6, 2002
Slide 10: Rejuvenation underway
Rejuvenation underway Restructuring and its results % % DISTRIBUTION DISTRIBUTIONBY BYAGE AGE IN IN2002 2002 70 70 62 62 60 60 NN Average Averageage age EE 47 47years yearsin in2001 2001 50 W 50 W 46 46years yearsin in2002 2002 40 CC 37 40 37 OO 30 LL LL 30 LL EE 20 EE 18 20 AA 20 18 20 AA 12 VV 10
Slide 11: Axle business' financial highlights
Axle business’ financial Forecast highlights for 2002 IAS in HUF, million Item Expected in 2002 Revenue 26 188 Operating profit -1 772 Realised hedge 1 828 EBIT+Hedge 56 EBITDA - 249 CAPEX 2 892 © Rába Rt. 11 Dec. 6, 2002
Slide 12: Components business' financial highlights
Components business’ financial Forecast highlights for 2002 Invested Investedassets assets HUF HUF33295 295million million Own Ownequity equity HUF 818 million HUF 818 million Liabilities Liabilities HUF HUF55426 426million million Investment Investment HUF HUF 915 915million million Headcount
Slide 13: Impacting the results of 2002
Impacting the results of 2002 Forecast for 2002 The The sale sale ofof Rába Rába Engine Engine Kft Kft ((--)) The The sale sale ofof the the Energy Energy unit unit ++ Compiling Compiling provision provision ((--)) Releasing Releasing provision provision ++ Loss Loss inin value value ((--)) Total: T
Slide 14: Restructuring and its results
Restructuring... Restructuring... Restructuring and its results 2002: 2002: The Theyear yearof ofinvestment investmentand and streamlining streamliningto toachieve achievecompetitiveness competitivenessinin an anunfavourable unfavourableeconomic economicenvironment environment …and …and its its resu
Slide 15: Axle: diversifying products, customers, markets
Axle: diversifying products, 2003 customers, markets by businesses Increasing Increasing European European share share •• Projects Projectsfor forsupplying supplyingoff-highway off-highwaycomponents components •• Supplying Supplying truck truck axle axle components components in in large large vo
Slide 16: Axle: excellence in operation
Axle: excellence in operation 2003 by businesses ••Customer- Customer- and and quality quality centred, centred, project project driven driven organisation organisation ••Aim Aim oriented oriented management management ••Redesigning Redesigning processes processes ••Continuous Continuous improvement
Slide 17: Axle: revenues, markets
Axle: revenues, markets 2003 by businesses Market Revenue (USD, million) Change 2002 (forecast) 2003 (planned) % USA 53.5 61.7 +15.3 On-road truck 44.1 48.8 +10.7 Off-road truck 9.4 12.9 +37.2 European Union 6.1 11.3 +85.2 Outside EU 10.1 10.5 +4.0 Asia 12.1 14.5 +19.8 Other export 4.1 1.7 -58.5 Hun
Slide 18: Axle: financial highlights
Axle: financial highlights 2003 IAS in HUF, million by businesses Item 2002. 2003. Difference (forecast) (plan) Revenue 26 188 29 212 + 3 024 Operative profit -1 772 -218 + 1 554 Realised hedge 1 828 560 -1 268 EBIT + Hedge 56 342 286 EBITDA - 249 1 742 + 1 991 CAPEX 2 892 2 230 - 662 © Rába Rt. 18
Slide 19: Components business: streamlined organisation
Components business: 2003 streamlined organisation by businesses Managing director Sales and technical Procurement and supplier Financial and HR director Mór plant director development director controlling director Gyõr plant Sárvár plant © Rába Rt. 19 Dec. 6, 2002
Slide 20: Components: more efficiently
Components: more efficiently 2003 by businesses ••Operating Operating the the re-engineered re-engineered business business processes: processes: •• Business Business development, development, technical technical development development and and marketing marketing overseen overseen byby the the mana
Slide 21: Components: Focus on the customer
Components: Focus on the 2003 customer by businesses •• Improving Improving existing existing markets markets •• Focus Focus on on seats seats for for commercial commercial vehicles vehicles •• Targeting Targeting eastern eastern markets markets •• Projects Projects for for seats seats for for rail
Slide 22: Components: products, markets
Components: products, markets 2003 by businesses Market Revenue (EUR, million) Change 2002 2003 % Europe 11.8 18.3 + 55.1 % Hungary 36.1 32.2 - 10.8 % Product line Revenue (EUR, million) Change 2002 2003 % Car seats + 24.4 16.7 - 31.6 % components Commercial vehicle seats and components 7.1 12.3 + 7
Slide 23: Components: financial highlights
Components: financial highlights 2003 IAS in HUF, million by businesses Item 2002 2003 Difference forecast planned Revenue 12 545 12 645 + 100 Operating profit - 1 077 326 + 1 403 EBITDA - 658 910 + 1 568 CAPEX 915 1 072 + 157 © Rába Rt. 23 Dec. 6, 2002
Slide 24: Specialty vehicle
Specialty vehicle 2003 by businesses 2001 2001 2002 2002 2003 2003 2003- 2003- Bus Bus chassis Specialty vehicle Serial production Tractor Specialty vehicle Engineering Specialty vehicle Bus chassis Engineering Engineering Specialty vehicle Co-operation Co-operationwithwiththe theworld’s world’slead
Slide 25: Outside core businesses
Outside core businesses Completionof Completion ofportfolio portfoliocleaning cleaning Service House Sale Strengthening strategic & business focus Improving efficiency of services Ipartechnika Sale Strengthening strategic focus Test track LTC-Rába JV Registration of JV in progress Renovation of test
Slide 26: Group exchange rate exposure
Group exchange rate exposure 2003 Risk management Estimated currency turnover in strategic businesses (2003) Million EUR EUR USD USD export import export import Axle 11 18 92 5 Compo- 19 11 - - nents • EUR net: +/- 0 m © Rába Rt. • USD net: 87 m 26 Dec. 6, 2002
Slide 27: Techniques of risk management
Techniques of risk management 2003 Risk management 1.Natural 1.Natural hedge hedge shift shiftto toforeign foreigncurrency currencydenominated denominatedsupplier supplier contracts contracts foreign foreigncurrency currencycash-pool cash-poolfor fordiffering differingexposures exposures in in
Slide 28: Hedge strategy
Hedge strategy 2003 Hedging Risk HedgingininFY FY2002 2002 Transaction Transactioninclude includemainly mainlysimple simpleforward forwardtransactions: transactions: management Hedging (mUSD) H. rate Current 1st quarter 16,01 284,60 278,44 2nd quarter 18,53 292,88 264,50 3rd quarter 21,91 298,84
Slide 29: Change in operating profits
Change in operating profits relative to 2002 2003 Consolidated Profit change HUF, million Impact of divestment + 472 Change in volume + 1 072 Change in exchange rate - 1 337 Efficiency + 3 516 Total changes : + 3 723 © Rába Rt. 29 Dec. 6, 2002
Slide 30: Rába Group highlights
Rába Group highlights 2003 Item 2002 2003 Change Forecast Planned (%) Revenue / headcount 8 062 10 031 +1 969 (HUF, million) Rate of borrowings (%) 35.6 38.7 +3.1 Investment (HUF, million) 4470 4790 +320 © Rába Rt. 30 Dec. 6, 2002
Slide 31: Restructuring and its results
Restructuring and its results 2003 ••Portfolio Portfolio cleaning cleaning has has been been nearly nearly completed completed –– focusfocus is is on on restructured restructured core core businesses businesses ••Restructuring Restructuring done done inin the the unfavourable unfavourable macro macr
Rába Automotive Group Nyrt. — Investor Presentation (December 2002) on 6ix