Slide 1: Investor Presentation: 1st Half 2018 Consolidated Results
Investor Presentation 1st Half 2018 Consolidated Results
Slide 2: Cembre at a Glance
Investor Presentation Cembre at a Glance Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools; The Group has grown its revenues by a CAGR of 5.5% in the last 17 years (2001‐2017), from €56 mn in 2001 to €132.6 mn in 2017; It is a dividend‐payer w
Slide 3: Contents
Investor Presentation Contents Management Team Business overview 1st Half 2018 results 1st Half 2018 guidance Stock data & shareholding structure Contact 3
Slide 4: Management team
Investor Presentation Management team Giovanni Rosani Chief Executive Officer (CEO) OUR MISSION Cembre cooperates with the users of its products to find the best technical Aldo Bottini Bongrani and economical solutions related to Chief Sales and Marketing Officer (CSO) electrical connection applicat
Slide 5: Group Structure
Investor Presentation Group Structure 507 S.p.A 100% 100% 100% 100% 100% Cembre Cembre Ltd. Cembre Sarl Cembre GmbH Cembre Inc. España SLU Great Britain France Germany USA Spain 108 29 42 24 31 IKUMA IKUMA KG Verwaltungs GmbH Germany Manufacturing and trading unit 100% 100% Germany Trading unit Non
Slide 6: Human resources
Investor Presentation Human resources The Group employs 759 employees worldwide. R&D Production Marketing/Sales/Distribution Administration/Services 25 447 213 74 Cembre has extensive know‐how Sharp focus on customer needs in its operating field, and its strong and the efficient international R&D te
Slide 7: Business Overview
Investor Presentation Business Overview Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools. Electrical Connectors Tools Railway Products Identification Cable Glands, Systems Accessories and other 7
Slide 8: Made in Brescia…
Investor Presentation Made in Brescia… Cembre, established in 1969, manufactures its products in its state‐of‐ art production facility located in Brescia. The facility covers an area of 60,000 m2 on a total land area of 121,000 m2. 8
Slide 9: … and U.K.
Investor Presentation … and U.K. In addition, Cembre has a production facility in the UK which operates on a 8,800 m2 land. This plant in Birmingham manufactures mainly for the local market. The sales generated in the UK are 13% of the 1st Half 2018 consolidated turnover. Cembre Ltd. Factory in Curd
Slide 10: Very Strong in Europe…
Investor Presentation Very Strong in Europe… Cembre is present all over the Italian territory through a network of salesmen and representatives who are able to offer fast and constant technical assistance. Abroad, it operates through 5 subsidiaries in Europe (UK, France, Spain, 2 in Germany) and 1 i
Slide 11: Present All Around the World…
Investor Presentation Present All Around the World… Cembre has a network of importers and agents who provide technical and commercial assistance and rapid delivery all around the world… 11
Slide 12: Revenues breakdown by Product Family
Investor Presentation Revenues* breakdown by Product Family (€ ‘000) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Electrical Tools Railway Products Cable Markers Cable Glands Terminal Blocks Others Total connectors *Customers’ bonuses not included st 1 Half 26,636 12,671 14,953 14,234 5,875 1,501 2,1
Slide 13: Geographical Revenue Breakdown
Investor Presentation Geographical Revenue Breakdown Italy 1st Half 1st Half Δ 2018 2017 Sales 31.3 mn 28.1 mn 11.7% % in total 42.8% 42.1% 0.7 pp Europe (ex‐IT) 1st Half 1st Half Δ 2018 2017 Sales 30.7 mn 28.0 mn 9.7% % in total 41.9% 42.1% ‐0.2 pp Rest of the World 1st Half 1st Half Δ 2018 2017 Sa
Slide 14: 17-Year Revenue Evolution
Investor Presentation 17‐Year Revenue Evolution € Millions Economic Back to Growth Crisis 140 132,6 121,4 122,6 120 112,9 103,0 103,9 104,5 100 93,4 94,3 93,9 84,1 80 76,0 70,0 65,1 59,9 60 56,0 56,9 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14
Slide 15: A Wide Product-Mix
Investor Presentation A Wide Product‐Mix In order to maintain its leading position and increase the penetration of market, Cembre had sensibly enlarged the range of products offered through: •Research activities mainly focused on the development of innovative products for the sectors with the highes
Slide 16: Electrical Connectors: 9.7% increase in Sales
Investor Presentation Electrical Connectors: 9.7% increase in Sales Electrical Connectors: 1st Half 2018 1st Half 2017 Δ Total Sales 26.6 € mn 24.3 € mn 9.7% Sales in Italy (% share) 12.9 € mn (16.6%) 12.2 € mn (17.4%) 5.7% Sales in Europe ex‐IT (% share) 11.7 € mn (15.1%) 10.0 € mn (14.3%) 17.3% Sa
Slide 17: Tools: 0.5% decrease in Sales
Investor Presentation Tools: 0.5% decrease in Sales Tools: 1st Half 2018 1st Half 2017 Δ Total Sales 12.7 € mn 12.6 € mn 0.5% Sales in Italy (% share) 3.5 € mn (4.5%) 3.4 € mn (4.8%) 3.2% Sales in Europe ex‐IT (% share) 5.6 € mn (7.2%) 5.1 € mn (7.3%) 10.5% Sales in RoW (% share) 3.5 € mn (4.5%) 4.1
Slide 18: Railway Products: 14.9% increase in Sales
Investor Presentation Railway Products: 14.9% increase in Sales Railway Products: 1st Half 2018 1st Half 2017 Δ Total Sales 15.0 € mn 13.0 € mn 14.9% Sales in Italy (% share) 2.0 € mn (2.5%) 1.1 € mn (1.5%) 80.7% Sales in Europe ex‐IT (% share) 8.4 € mn (10.8%) 8.7 € mn (12.4%) ‐3.2% Sales in RoW (%
Slide 19: Cable Markers: 18.1% increase in Sales
Investor Presentation Cable Markers: 18.1% increase in Sales Cable Markers: 1st Half 2018 1st Half 2017 Δ Total Sales 14.2 € mn 12.1 € mn 18.1% Sales in Italy (% share) 9.5 € mn (12.1%) 7.6 € mn (10.8%) 24.3% Sales in Europe ex‐IT (% share) 4.1 € mn (5.3%) 3.5 € mn (5.0%) 18.4% Sales in RoW (% share
Slide 20: Cable Glands: 8.9% increase in Sales
Investor Presentation Cable Glands: 8.9% increase in Sales Cable Glands: 1st Half 2018 1st Half 2017 Δ Total Sales 5.9 € mn 5.4 € mn 8.9% Sales in Italy (% share) 5.0 € mn (6.4%) 4.6 € mn (6.5%) 9.8% Sales in Europe ex‐IT (% share) 0.7 € mn (1.0%) 0.7 € mn (1.0%) 8.9% Sales in RoW (% share) 0.1 € mn
Slide 21: 1st Half 2018 Consolidated Results
Investor Presentation 1st Half 2018 Consolidated Results Euro Millions 1st Half 1st Half Changes 1st Half 2018 2017 % 2016 Sales 73.3 66.6 10.1% 62.7 EBITDA 18.9 17.3 8.8% 15.2 In % of sales 25.7% 26.0% 24.3% EBIT 15.5 14.2 8.9% 12.3 In % of sales 21.1% 21.4% 19.6% EBT 15.4 14.2 8.4% 12.2 In % of sa
Slide 22: 1st Half 2018 Group's Companies Turnover
Investor Presentation 1st Half 2018 Group’s Companies Turnover* Company 1st Half 1st Half Changes 1st Half (Euro thousands) 2018 2017 % 2016 Cembre S.p.A. (Italy) 40,680 37,303 9.1% 35,226 Cembre Ltd. (UK) 9,320 8,883 4.9% 9,313 Cembre S.a.r.l. (France) 5,270 5,025 4.9% 4,836 Cembre España S.L. (Spa
Slide 23: June 30, 2018 Consolidated Balance Sheet
Investor Presentation June 30, 2018 Consolidated Balance Sheet Euro Millions Jun. 30, 2018 Dec. 31, 2017 Jun. 30, 2017 a Net operating working capital 55.1 50.6 49.0 % of sales 37.6% 38.1% 36.8% b Net fixed assets 88.8 77.4 74.7 c Assets available for sales ‐ ‐ 0.4 d Severance indemnities 2.7 2.7 2.
Slide 24: Cembre's Revenue and Profitability Trend
Investor Presentation Cembre’s Revenue and Profitability Trend (€ ‘000) 140.000 132.637 121.377 122.605 120.000 112.905 103.028 103.899 104.547 100.000 93.417 94.288 93.934 84.127 75.984 80.000 69.997 65.149 59.870 60.000 56.003 56.946 Revenues 40.000 20.000 0 2001 2002 2003 2004 2005 2006 2007 2008
Slide 25: Cembre's Revenue and Profitability Trend
Investor Presentation Cembre’s Revenue and Profitability Trend (€ ‘000) 28.000 27.036 55,0% 24.095 50,0% 24.000 22.836 45,0% 19.433 40,0% 20.000 18.420 17.379 17.291 35,0% 15.941 16.221 16.456 16.000 15.838 30,0% Ebit 11.023 10.581 25,0% 12.000 20,0% 7.656 19,7% 20,4% 8.000 6.932 6.271 6.364 18,9% 1
Slide 26: Index analysis
Investor Presentation Index analysis ROI (EBIT/Investments) ROACE (EBIT/Net Capital Employed) 25,00% 35,00% 29,45% 30,00% 19,67% 29,05% 20,00% 24,34% 16,60% 16,57% 16,18% 25,00% 23,13% 19,06% 23,39% 15,11% 15,09% 21,23% 22,23% 15,00% 21,49% 20,00% 14,15% 14,65% 16,85% 17,12% 20,61% 11,04% 13,75% 18,
Slide 27: Investments trend
Investor Presentation Investments trend 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Investments in tangible assets Investments in intangible assets Total investments € ‘000 2005 2006 2007 2008 2009 2010 2011 2012 2013
Slide 28: 2018 and onwards…
Investor Presentation 2018 and onwards… Cembre focused on these targets: Increase of turnover thanks to: •A strengthening of Cembre competitive advantage by developing new products and continuous product range renewing by an intense R&D activity, •A new product line for plumbing sector; •An higher p
Slide 29: 2018 and onwards…
Investor Presentation 2018 and onwards… The new automated warehouse, located in a 4,800 m2 industrial building built in 2012, has been operating from January, 2013. This warehouse is 3 time more efficient, and has a 50% increase in end‐product capacity warehousing. In 2018, a new 9,600 m2 industrial
Slide 30: 2018 and onwards…
Investor Presentation 2018 and onwards… •On May 3rd, 2018 wholly‐owned German subsidiary Cembre GmbH acquired the entire capital stock of German company Ikuma GmbH & Co. KG (“Ikuma KG”). Cembre GmbH also acquired the entire capital stock of Ikuma Verwaltungs GmbH, a company whose only activity is to
Slide 31: Stock Data & Shareholding Structure
Investor Presentation Stock Data & Shareholding Structure Cembre FTSE Italia Star Shareholders: Share: data updated at October 5, 2018 LYSNE Spa 53.69% Sara Rosani 8.65% Giovanni Rosani 8.53% Anna Maria Onofri 0.71% Altri 28.42% Cembre has been listed since December 1997, and is a part of the Star I
Slide 32: Share price evolution
Investor presentation Share price evolution 30 Share price Share return 28 Total return 26 2001-09.2018 24 22 +15.6% 20 CAGR 18 Share price(€) 16 14 Performance 12 2001-09.2018 10 8 +14.5% CAGR 6 4 Total Return is the average ‘Share return’ 2 growth in the period 0 Performance is the average ‘Share
Slide 33: Contact
Contact Claudio Bornati CFO and IR Via Serenissima 9, 25135 Brescia (BS) Italy Phone: ++39 030 36921 Email: claudio.bornati@cembre.com The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law