Kendrion N.v. · EURONEXT:KENDR
Kendrion — FY2011 Earnings Presentation
24 slides from Kendrion's earnings presentation, Feb 29, 2012
Slide 1: Annual results 2011 - Analysts' meeting
29-2-2012 Annual results 2011 Analysts' meeting Wednesday 29 February 2012 Agenda 1. Kendrion at a glance 2. Highlights 2011 3. Key figures 2011 and financial objectives 4. Review of the business units 5. Financial position 6. Dividend 7. Fine imposed by European Commission 8. ERP project HORIZON 9.
Slide 2: Kendrion at a glance
29-2-2012 1. Kendrion at a glance 3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,800 employees (including 200 temps) in 13 countries Turnover: approximately EUR 300 million Listed company on NYSE Euronext's Amsterd
Slide 3: Organisation – Kendrion breakdown of revenue 2011
29-2-2012 Organisation – Kendrion breakdown of revenue 2011 Industrial Magnetic Systems Passenger Car Systems PCS • Process engineering • Automotive applications IDS • Medical technology • Hydraulic applications • Transportation technology • Door lock switches • Metering devices and filling stations
Slide 4: Kendrion committed to being a high-performer in selected business units
29-2-2012 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives Spearheads - Niche market leadership - Organic growth in the current operations To develop business units that - Utilisation of synergy in and Organic growth > 10% have strong international
Slide 5: Concrete issues to fulfil our strategic spearheads
29-2-2012 Concrete issues to fulfil our strategic spearheads (1) - Alert response to market developments in all key markets - Market intelligence - Market segmentation - Qualified suppliers - Increase in the flexibility of staff and costs - Quick reaction in times of strong volatility - Focused acqu
Slide 6: 2. Highlights 2011
29-2-2012 Turnover development 11 2. Highlights 2011 12 6
Slide 7: 2011 Highlights
29-2-2012 2011 Highlights (1) - Good year, revenue up 21% - Normalised net profit EUR 20.5 million - Growth in all business units and all major home markets - Cost base improvement continued - Strong free cash flow (EUR 14.6 million) - Expansion of financing arrangement by EUR 60 million - Focused e
Slide 8: Product range
29-2-2012 15 Contact Us Custom Flow Control Valves Custom Coils – Diesel Fuel Pressure, A/C Compressor Control, Transmission Control - Diesel Fuel Pressure Pressure Switches 12VDC Circuit Mechanical Switches - Primarily Engine Oil and Heavy Truck Air Brakes Breakers – Neutral Start, Reverse Lamp, –
Slide 9: Applications
29-2-2012 Applications Heavy Diesel Construction Recreational Motorcycle Pass Car Light Truck Truck Engine 17 3. Key figures 2011 and financial objectives 18 9
Slide 10: Key figures 2011
29-2-2012 Key figures 2011 (x EUR 1 million unless otherw ise stated) Q4 2011 1 Q4 2010 1 Difference in % Revenue 64.9 58.9 10% EBITA from ordinary activities * 6.7 6.6 2% Normalised net profit * 4.4 4.4 0% ROS 10.3% 11.2% 1 The quarterly figures are unaudited (x EUR 1 million unless otherw ise stat
Slide 11: Financial objectives
29-2-2012 Financial objectives Target Realisation 2010 Realisation 2011 Organic growth >10% per year 43% 21% ROS >10% 10.9% 11.5% ROI >17.5% 18.7% 22.2% Solvency ≥ 35% 64.7% 40% EBITDA/Interest-bearing debt <3.00 0.16 0.6 Free cash flow Healthy 105% of net profit 71% of net profit Dividend 35-50% of
Slide 12: Changes Kendrion organisation
29-2-2012 Changes Kendrion organisation - Smooth operating organisation in 2011 - Heinz Freitag appointed Chief Technology Officer (CTO) as of January 2012 - Executive Board of Kendrion exists now of Piet Veenema (CEO) and Eiko Ris (CFO) - Bernd Gundelsweiler appointed to Vice-President Automotive a
Slide 13: Industrial Magnetic Systems: General and 2011
29-2-2012 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: machine building, locking and safety, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in Germany, USA, China, Switzerland, Au
Slide 14: Review of the business units: Industrial Drive Systems
29-2-2012 4b. Review of the business units 27 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Two production sites in Germany; international service coordinated through UK sales office - Global market leader in permanent magnetic brake systems - Appro
Slide 15: Industrial Drive Systems 2011
29-2-2012 2011 - Strong organic growth in permanent magnet brakes - Growth especially realised with the world players (like Siemens and Bosch) - Strong organic growth (19%) - Renewed focus in spring applied brakes (KOBRA-line) - Also several innovations (windmill and aviation industry) - New project
Slide 16: Passenger Car Systems: General and 2011
29-2-2012 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania, China and the USA - Serves European Original Equipment Manufacturers; Daimler, Volkswagen (incl. Audi), and first tier suppliers (Co
Slide 17: Review of the business units: Commercial Vehicle Systems
29-2-2012 4d. Review of the business units 33 General - Operations: components and total cooling systems for buses, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Many customers worldwide - Sites in Germany, USA, Mexico, Brazil,
Slide 18: Commercial Vehicle Systems 2011; Financial position
29-2-2012 2011 - Satisfying organic growth (11%) - Additional focus on cooling systems for the truck market - Engineering capacity expanded in 2011 (5 Engineers) - Booming market in China (bus), several new truck customers in the USA - New greenfield plant in Pune (India), production started in Dece
Slide 19: Financial position
29-2-2012 Financial position - Excellent free cash flow for full year 2011: EUR 14.6 million - Good working capital management, inventories increased slightly in relative terms - Strong balance sheet (net debt at year-end 2011 EUR 25.9 million, solvency 40%) - Expansion of financing arrangement EUR
Slide 20: Dividend
29-2-2012 Dividend - Dividend policy revised - Dividend window 35-50% of net profit - Solvency of at least 35% - Proposed optional dividend for 2011 of 35% of normalised net profit - Dividend of EUR 0.62 per share 39 7. Fine imposed by European Commission 40 20
Slide 21: EC fine
29-2-2012 EC fine - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel in period 1995 - 2002 - 3 respected law firms: "more likely than not" that Kendrion can present a successful defence to General Court in Luxembourg - Recognised a p
Slide 22: ERP project HORIZON
29-2-2012 ERP project HORIZON - Investment between EUR 5.5 and EUR 6.0 million - IFS software provider preferred above SAP - First go-live 4 October 2011 PCS Villingen (Germany) meanwhile also India and HR Villingen and Markdorf (Germany) - In time, in budget, working with the standard software - 20
Slide 23: Priorities for 2012: Entering another league
29-2-2012 Priorities for 2012: "Entering another league" - Four spearheads (Flexibility, Innovation, Sustainability, Globalisation) - Focus on the internal organisation after 2 years of extreme organic growth - Strengthening engineering staff in Germany, empowerment in foreign countries - Achievemen
Slide 24: We magnetise the world!
29-2-2012 We magnetise the world! www.kendrion.com 24