Basler Ag · XETR:BSL
Basler — FY2013 Earnings Presentation
51 slides from Basler's earnings presentation, March 2014
Slide 1: Final Results 2013
Final Results 2013 Dietmar Ley (CEO), Hardy Mehl (CFO/COO) 1
Slide 2: Disclaimer
Disclaimer This document includes forward looking statements on Basler AG, its subsidiaries and associates, and on the economic und political conditions that may influence the business performance of Basler AG. All these statements are based on assumptions made by the Executive Board using informati
Slide 3: Agenda
Agenda Company Profile Growth Strategy Financials Outlook 3
Slide 4: Company Profile: Who We Are
Company Profile Who We Are A public listed family business The most trusted name in industrial cameras Founded in 1988 2013 revenue € 65.1 million 340 employees Headquarters in Ahrensburg, Germany 4
Slide 5: Company Profile: What We Make
Company Profile What We Make Cameras, made for professional users (e.g. OEMs) usage in investment goods (i.e. integration into machines) automated imaging applications (e.g. quality inspection, license plate reading, blood analysis, face recognition) 8 - 10 year product life cycle 5
Slide 6: Company Profile: What We Make
Company Profile What We Make Full-line Camera Portfolio > 500 products Wide selection of sensors & interfaces covering the needs of OEM customers Standard and customized products pylon Camera Software Suite Drives all Basler cameras Serves multiple operating systems Interface for dev
Slide 7: Company Profile: Which Markets We Serve
Company Profile Which Markets We Serve New Business Factory Automation Traffic, Medical, Transportation Life Sciences 7
Slide 8: Company Profile: Which Markets We Serve
Company Profile Which Markets We Serve Factory Automation, Medical & Life Sciences, Traffic & Transportation Professional Camera Market ~ € 750 mill. CAGR 8 – 10 % New Business Professional Camera Market ~ € 100 mill. CAGR > 20 % 8
Slide 9: Company Profile: Which Customers We Serve
Company Profile Which Customers We Serve Original Equipment Manufacturers (OEMs) • machine builders, device makers, system integrators • distributed across many vertical markets Component Manufacturers • e.g. factory automation devices 9
Slide 10: Company Profile: How We Reach Our Customers
Company Profile How We Reach Our Customers Basler Direct Sales • Germany • USA Distributors (VARs) • EMEA • APAC Partners (Complementary Device Manufacturers) • World-Wide (brand-labeled products) 10
Slide 11: Company Profile: Who We Compete With
Company Profile Who We Compete With Top -5 Industrial Camera Vendors 1. Teledyne-Dalsa (CAN) 2. Basler (GER) 3. Allied Vision Technologies (GER) 4. Toshiba Teli (JPN) 5. Point Grey Research (CAN) Many small vendors (< € 15 mill.) with regional focus or niche positioning 11
Slide 12: Company Profile: Who We Compete With
Company Profile Who We Compete With Entry barriers for potential new entrants Highly fragmented target market Design in business with long life cycles (8 – 10 years) Camera functionality ever-more depending on software Limited availability of good sales channels High switching-costs to n
Slide 13: Company Profile: Why We Lead
Company Profile Why We Lead Leading brand power Superior market access Unparalleled insight into market & technological trends Cost advantages through lean production, innovation, and economies of scale Supply chain excellence Passionate team 13
Slide 14: Company Profile: Why We Lead
Company Profile Why We Lead Company Culture We believe our company culture is as important for our success as our strategy We value and believe in respect, candor, passion, ambition, and shared responsibility We have a low personnel turnover of < 1.5% 14
Slide 15: Company Profile: Where We Are
Company Profile Where We Are 22% 37% 41% *as of Dec. 31, 2013 15
Slide 16: Company Profile: What We Are Made Of
Company Profile What We Are Made Of PRODUCTION 23% SALES & MARKETING 31% ADMINISTRATION R&D 21% 25% *340 fulltime equivalent jobs as of December 31 th, 2013 16
Slide 17: Experienced Management-Team
Company Profile Experienced Management-Team Dr. Dietmar Ley Arndt Bake John P. Jennings Hardy Mehl (Chief Executive Officer) (Chief Marketing Officer) (Chief Commercial Officer) (Chief Financial Officer, Chief Operations Officer) ▪ Joined Basler in 1993 ▪ Joined Basler in 2001 ▪ Joined Basler in 199
Slide 18: Basler Share
Company Profile Basler Share Market capitalization ~ € 120 mill. (as of March 25, 2014) Daily trading volume ~ 4,000 shares, peak volumes up to 20,000 shares a day Dividend policy Target distribution of 30% of net earnings Base-Component of € 0.20 per share Optional Performance-Component
Slide 19: Basler Share: Shareholder Structure
Company Profile Basler Share Shareholder Structure *as of December 31th, 2013 19
Slide 20: Basler Share
Company Profile Basler Share Basler family committed to keep majority position in the long run Free Float to remain at ~35% 4 buy-back programs of € 1 mill. each since Sept. 2011, fourth program not yet completed Treasury shares to be kept for time being Typical investors are long-term ori
Slide 21: Agenda
Agenda Company Profile Growth Strategy Financials Outlook 21
Slide 22: What Drives Us: Our Vision & Mission
What Drives Us Our Vision & Mission Advances in technology will improve the quality of our lives We give technology the power of sight 22
Slide 23: We Are Helping To Inspect Steel, Paper and Plastic
Vision & Mission We Are Helping To Inspect Steel, Paper and Plastic 23
Slide 24: We Are Helping To Develop Better Eye-Care
Vision & Mission We Are Helping To Develop Better Eye-Care 24
Slide 25: We Are Helping To Make American School Buses Safer
Vision & Mission We Are Helping To Make American School Buses Safer 25
Slide 26: We Are Helping To Analyze Sports Events
Vision & Mission We Are Helping To Analyze Sports Events 26
Slide 27: Where We Are Going: Strategic Goals
Where We Are Going Strategic Goals *medium-term goals 2018 27
Slide 28: Where We Are Going: Strategic Goals
Where We Are Going Strategic Goals We achieve our 4YP by maximizing top-line growth at a healthy margin of >10% EBIT creating economic value with a ~15 % ROCE (NOPAT) @ 7 - 9% WACC generating positive free cash flows on a fiscal year base being focused on organic growth 28
Slide 29: How We'll Get There: Strategy
How We’ll Get There Strategy We evolve from being an industrial camera company to become a camera company (for B2B markets) We grow by expanding our industrial camera business with regard to products and regions entering non-factory camera applications and markets 29
Slide 30: Strategy, Market Segmentation & Growth Potential
How We’ll Get There Strategy, Market Segmentation & Growth Potential High Growth Potential End ■ High-End O ■ Mainstream + Mainstream ■ Entry-Level ++ Entry Level 30
Slide 31: Strategy, Market Position Today
How We’ll Get There Strategy, Market Position High Today End ■ Some participation in High-End ■ Strong foothold Mainstream in Mainstream ■ Fast-growing share in Entry-Level Entry Level 31
Slide 32: Strategy, Market Position Tomorrow
How We’ll Get There Strategy, Market Position High Tomorrow End ■ Maintain position in High-End ■ Expand position Mainstream in Mainstream ■ Expand position in Entry-Level Entry Level 32
Slide 33: Our Cameras Helping To Make Autonomous Construction Machines?
How We’ll Get There Our Cameras Helping To Make Autonomous Construction Machines? 33
Slide 34: Our Cameras Helping To Make Kiosks Easier To Use?
How We’ll Get There Our Cameras Helping To Make Kiosks Easier To Use? 34
Slide 35: Our Cameras Helping To Automate Self-Checkout Systems?
How We’ll Get There Our Cameras Helping To Automate Self-Checkout Systems? 35
Slide 36: Go-To-Market Strategy
How We‘ll Get There Go-To-Market Strategy Drive regional expansion to enlarge market access Develop existing/add complementary channel partners to improve market access Increase direct sales force for existing & new business 36
Slide 37: Growth Track Record
Growth Track Record Camera Business CAGR > 20% 70 60 Achsentitel 50 40 30 20 10 0 *Numbers in € mill. 37
Slide 38: Agenda
Agenda Company Profile Growth Strategy Financials Outlook 38
Slide 39: Final Results FY-2013: Profit & Loss
Final Results FY-2013 Profit & Loss FY-2012 FY-2013 +/- Order Entry 60.6 68.6 +13 % Sales 55.9 65.1 +16 % Gross Profit 26.9 32.5 +21 % EBIT 8.3 8.5 +2 % EBT 5.6 7.8 +39 % Net Income 4.1 5.6 +37 % EPS* 1.21 1.70 +40 % *All numbers other than EPS in € mill., EPS in € 39
Slide 40: Final Results FY-2013: Cashflow
Final Results FY-2013 Cashflow FY-2012 FY-2013 +/- Cash, b.o. period 7.4 8.2 +11 % Cashflow from Operations 12.6 12.1 -4 % Cashflow from Investments -6.3 -6.5 +3 % Free Cashflow 6.3 5.6 -11 % Cashflow from Financing -5.5 -4.2 -24 % Cash, e.o. period 8.2 9.7 +18 % *All numbers in € mill. 40
Slide 41: Final Results FY-2013: Net Cash
Final Results FY-2013 Net Cash Dec. 31st, Dec. 31st, +/- 2012 2013 Liabilities to banks -4.7 -6.0 +28 % Total Debt -4.7 -6.0 +28 % Cash & Cash equivalents 8.2 9.7 +18 % Operative Net Cash 3.5 3.7 +6 % *Numbers in € mill. 41
Slide 42: Seasonality of Financial KPI's
Seasonality of Financial KPI‘s Revenue, EBT Peaking in Q2 & Q3 160% 140% 120% 100% 80% Revenue 60% EBT 40% 20% 0% Q1 Q2 Q3 Q4 *KPI’s in % of average quarterly result during fiscal year 2013 42
Slide 43: Seasonality of Financial KPI's
Seasonality of Financial KPI‘s Free Cashflow Slow in HY1, Strong in HY2 250% 200% 150% 100% Free Cashflow 50% 0% Q1 Q2 Q3 Q4 -50% -100% *KPI’s in % of average quarterly result during fiscal year 2013 43
Slide 44: Business Review: Growth Continued At Higher Rates Than Market
Business Review Growth Continued At Higher Rates Than Market 2013 German & US Machine Vision markets have grown by ~ 6% vs. 2012* Basler top-line growth ~ 3x above market Due to volume strategy Basler was able to grow market share and to penetrate new businesses (verticals & regions) Gross p
Slide 45: Business Review: Gig-E Cameras Growth Driver in 2013
Business Review Gig-E Cameras No. 1 Growth Driver in 2013 Gigabit Ethernet cameras & Asian markets driving the growth Due to early-stage market, no significant revenue contribution from new USB3 product line yet Successful ramp-up of new racer line scan camera familiy *Sources: VDMA, AIA 45
Slide 46: Agenda
Agenda Company Profile Growth Strategy Financials Outlook 46
Slide 47: Outlook: 2014 Environment
Outlook 2014 Environment Global macro-economic environment expected to remain mostly unchanged (if geopolitical tensions can be managed) Demand for investment goods expected to slightly improve No significant devaluation of US Dollar and Japanese Yen anticipated 47
Slide 48: What's Important For Basler In 2014?
Outlook What‘s Important For Basler In 2014? Further expand market leadership in Gigabit-Ethernet camera market Ramp-up USB-3 product line & leverage early-mover advantage Gain market share in line scan camera market Prepare for becoming a € 100 mill.+ company in all value-generating functio
Slide 49: Guidance FY-2014
Outlook Guidance FY-2014 Revenue € 70 – 74 mill. EBT-Margin 8 – 10% Positive free cashflow (on fiscal year base) 1st year w/o new orders from former business segment Solutions 49
Slide 50: What's Possible For Basler In The Mid-Term?
Outlook What‘s Possible For Basler In The Mid-Term? Universe of camera applications within & beyond the factory arena continuing to expand As to strategy, competitive advantage, financial stability, and corporate culture Basler in good position for sustained profitable growth above market rates
Slide 51: Ask Questions
Ask Questions Get Answers Petra.Vogeler@baslerweb.com Tel. +49 4102 463 101 51