Interpump Group S.p.a. · MIL:IP
Interpump — Investor Presentation (March 2011)
39 slides from Interpump's investor presentation, March 2011
Slide 1: Presentation to Analysts and Investors
INTERPUMP GROUP Presentation to Analysts and Investors March, 2011
Slide 2: Company Profile
INTERPUMP GROUP Company Profile
Slide 3: Interpump Group's Profile
INTERPUMP GROUP’S PROFILE • Interpump Group (IPG) is an industrial Group active in the mechanical component industry. • Based in Northern Italy, in 2010 IPG had total sales of € 425 million. Sales outside Italy represented almost 80% of the total. More than 48% of total sales are manufactured by Gro
Slide 4: Major Activity Sectors
INTERPUMP GROUP’S PROFILE Major Activity Sectors % of total sales Sector 2010 Group’s Co’s World Market Share (approx) High Pressure Plunger Pumps 20 % IPG Company (I) 50% (HPPP) Very High Pressure Plunger Pumps 29 % Hammelmann (D) 40% (VHPPP) NLB (USA) Pratissoli (I) Power Take-Offs 30 % IP Hydraul
Slide 5: Common Characteristics of Major Activity Sectors
INTERPUMP GROUP’S PROFILE Common Characteristics of Major Activity Sectors • Market Niches • Worldwide Markets • Numerous Customers • Need for a large Product Range • After-sale Market (and Service) • Medium to high Technology • Low fixed costs • Low capital intensity 4
Slide 6: History of Interpump Group
History of Interpump Group 1977 – Foundation of Interpump, manufacturer of high pressure plunger pumps (HPPP) • new conception • technological breakthrough early 80’s – Interpump becomes world leader in HPPP’s • high profitability / high cash generation end 80’s – First acquisitions • components (el
Slide 7: IPG has been consistently profitable, cash generative, fast growing
IPG has been Consistently since Listing (December 1996) • Very profitable (ROCE, ROE) • Highly cash generative • Fast growing (…until the 2008-09 recession!) 6
Slide 8: IPG: very profitable over time
IPG: very profitable over time ROCE* ROE* % (Twelve months) ROCE (Twelve months) Average % 35 ROE 30 35 Average 30 25 25 20 20 15 15 10 = 18.9 10 = 17.5 5 5 0 0 ** 6 8 0 2 4 6 0 6 8 0 2 4 6 0 ** '9 '9 '0 '0 '0 '0 '1 '9 '9 '0 '0 '0 '0 '1 8* 8* '0 '0 Since listing (12/1996), IPG maintained on average
Slide 9: IPG: highly cash generative over time
IPG: highly cash generative over time IPG has returned substantial amounts of cash to shareholders since listing (12/1996) (euro/million) (euro/million) (1.1.97 (1.1.97 –– 31.12.10) 31.12.10) Operating cash flow 628 Capital expenditures (202) Net cash flow before acquisitions and dividends 426 Divid
Slide 10: Operating Cash Flow
Operating Cash Flow (Twelve Months*) (euro/million) 75 70 ** *** * 65 59 60 52 (Euro/million) 43 44 45 **** 45 = 41.4 38 *** 36 38 ***** 35 29 32 ** 30 18 17 15 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 * From 2004 to 2010 figures are prepared in accordance with International Fin
Slide 11: IPG: fast growing in mature markets
IPG: fast growing in mature markets (until 2009!) • In April 2005, IPG sold the Cleaning Sector, which at that time represented almost 60% of total sales. • Top-line growth rates (in €) •1996 – 2004 + 13.0% / yr •2005* – 2008** + 17.3% / yr • Growth between 1996 and 2008 was obtained both organicall
Slide 12: Net Sales
Net Sales (Twelve Months*) Disposal of /yr (euro/million) Cleaning +5 % Sector Global 600 Recession / yr 528 **** 3 % 493 502 +1 500 / yr 3 % 436 *** 2% 426 +1 +2 425 412 409 *** 400 350 * * * * * 343 ** (Euro/million) 319 320 ** 300 283 221 200 200 100 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
Slide 13: Financial Results
ul A INTERPUMP GROUP FINANCIAL RESULTS 12
Slide 14: Twelve Months Results
Twelve Months Results 2010 showed strong signs of recovery after the 2008-09 crisis, both in • sales and profitability (euro/million) (euro/million) 2009* 2009* 2010 2010 GROWTH GROWTH Sales 342.9 424.9 +24% EBITDA 46.9 74.1 +58% % sales 13.7% 17.4% NPAT 14.0 27.4 +96% % sales 4.1% 6.4% Free Cash Fl
Slide 15: Procurement Costs
PROCUREMENT COSTS IPG deployed a strong effort in reducing procurement costs. Despite the reduced volumes of purchases and the natural resistance from suppliers, procurement costs declined by 2.4 points as a percentage of sales (12 mo’s 2010 / 12 mo’s 2009). Purchases as Percentage of Sales 1st h. 1
Slide 16: Working Capital
WORKING CAPITAL Particular emphasis was put on keeping Working Capital under strict control. 31.12.2008 31.12.2009 31.12.2010 Accounts Receivable (days) 72 81 75 Accounts Payable (days) 73 92 88 Inventory (days) 163 158 143 Working Capital (€,m) 150 141 135 Working Capital decreased by € 6 million o
Slide 17: Free Cash Flow
FREE CASH FLOW • Free Cash Flow reached a record high in 2009, also thanks to a sharp decline of Working Capital (€ 44.7 million). • In 2010, Free Cash Flow was still very high, even if somewhat lower than in 2009, because of lower decline of Working Capital, which decreased by € 5.5 million since J
Slide 18: Free Cash Flow
Free Cash Flow (Twelve Months*) (euro/million) 75 63 ** *** * 60 57 45 41 (Euro/million) 32 **** 30 27 ** 27 *** 25 = 23.8 19 22 * **** 15 17 16 15 -1 1 0 -4 -15 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 * From 2004 to 2010 figures are prepared in accordance with International Fina
Slide 19: Net Debt
NET DEBT Net Debt is much lower than on December 31, 2008 and 2009 31.12.2008 31.12.2009 31.12.2010 Net Debt (€,m) 228 202 148 Of which put-options 21.9 16.4 21.6 thanks to • high cash generation • capital increase (€50 million in 2009 and €4 million in 2010) 18
Slide 20: Net Debt
NET DEBT* Net debt, after the peak in 2009, rapidly declined and today D/EBITDA ratio is below 2.0x 31.12.2008 30.06.2009 31.12.2009 31.12.2010 Net Debt/EBITDA 2.62 3.33 4.32 1.93 (rolling) D/EBIT DA 4,5 4 3,5 3 2,5 2 1,5 1 0,5 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 * Net of t
Slide 21: Net Debt
NET DEBT* 31.12.2007 31.12.2008 31.12.2009 31.12.2010 Net Debt/Equity 0.95 1.13 0.77 0.46 D/Equity 1,2 1 0,8 = 0.73 0,6 0,4 0,2 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 * Net of treasury stock and including commitments for purchase of investments 20
Slide 22: Industrial Sector
INDUSTRIAL SECTOR • NLB increased by 53% its EBITDA in dollar terms, while $ sales grew by 19%. • Hammelmann showed a double digit increase both in sales and EBITDA. • High Pressure Pumps increased substantially sales and profitability. Sales EBITDA* 2009 2010 Growth 2009 % 2010 % NLB ($/million) 54
Slide 23: Hydraulic Sector (1)
HYDRAULIC SECTOR (1) • Muncie showed a double digit growth of sales and EBITDA, after almost three years of decline. • Interpump Hydraulics registered a growth of sales of 21%. • Both companies increased substantially their EBITDA in absolute and percentage terms. Sales EBITDA** 2009 2010* Growth 20
Slide 24: Hydraulic Sector (2) Cylinders
HYDRAULIC SECTOR (2) Cylinders • The Cylinders Sector (on a like-for-like basis, with H.S. Penta six months) registered a double-digit growth and better margins (11.3% of sales vs. 4.7%), compared with full year 2010. Comparing the 4th q 2010 with the 4th q 2009, sales increased by 26.3% and EBITDA
Slide 25: Electric Motors
ELECTRIC MOTORS Electric Motors’ sales grew by 19.0% and had a positive free cash flow of € 0.2 million in the last 12 months (€ 3.0 million in the last 24 months). Full year (€,million) 2008 2009 2010 Sales 35.5 20.8 24.8 EBITDA* 0.6 (0.8) 0.6 % of sales** 1.5% -3.8% 2.3% (Net Debt)/Cash (0.8) 2.0
Slide 26: Breakdown of Sales by Sector-Geography 2010
Breakdown of Sales by Sector-Geography 2010 Total Consolidated Sales Hydraulic Sector (€/million 425) (€/million 190) Italy Italy Rest of the 27% Rest of 20% W orld the W orld Eastern Eastern 18% 17% Europe Europe North North 4% 3% America America Rest of 25% 30% Rest of Europe China India Europe Br
Slide 27: Growth by Sector – Geography 2010
GROWTH BY SECTOR – GEOGRAPHY 2010 Electric Industrial and Hydraulic Sectors Motors Consolidated North Rest of Sub- Europe % % % % Total % Total % America the World total (€,million) 2009* 153.5 45 105.5 31 63.1 18 322.1 94 20.8 6 342.9 100 2010 181.0 43 128.6 30 90.5 21 400.1 94 24.8 6 424.9 100 Gro
Slide 28: Net Sales Emerging Markets
Net Sales Emerging Markets (Twelve Months*) (euro/million) 30,0 +29.8% 25,0 20,0 (Euro/million) 15,0 27,6 31/12/2009 31/12/2010 -13.3% +31.6% 10,0 21,3 +105.5% +92.2% 5,0 9,4 8,9 7,7 6,4 3,1 4,1 7,2 2,1 0,0 (6.2%**) (6.6%**) China*** India Brazil Eastern Total Europe * On a like-for-like basis ** Pe
Slide 29: Conclusions
CONCLUSIONS • IPG’s market shares are stable or improving • In almost 80% of its sales, IPG market share worldwide is around or close to 50%. • No new technology is substituting existing ones. • No new competitive entry. • IPG is well positioned to take advantage of geographic growth (China and Indi
Slide 30: Interpump: a Shareholders' Friendly Company
INTERPUMP: a Shareholders’ Friendly Company • Since the listing (December 1996) until February 28, 2011* total return to shareholders’ (stock price increase + dividends + buy-back) has been higher than 11.1 % per year over a period of more than fourteen consecutive years. *(share price € 6.03) 29
Slide 31: Exhibits
INTERPUMP GROUP Exhibits (Euro/million) 30
Slide 32: 2010 Full Year Results
2010 Full Year Results Actual L-f-L At constant X-rate (€,m) g* (€,m) g* (€,m) g* Sales 424.9 +24% 416.5 +21% 409.4 +19% EBITDA 74.1 +58% 73.4 +53% 71.5 +53% % sales 17.4% 17.6% 17.5% * Over full year 2009 31
Slide 33: €/$ Exchange Rate
€/$ Exchange Rate 1st half 2nd half full year 2005 1.2847 1.2044 1.2441 2006 1.2296 1.2815 1.2556 2007 1.3290 1.4109 1.3705 2008 1.5304 1.4129 1.4707 2009 1.3322 1.4539 1.3948 2010 1.3268 1.3246 1.3257 32
Slide 34: Net Sales
Net Sales (Twelve Months*) (euro/million) 600 532 493 502 500 426 432 * * * 425 * * * * 425 412 (Euro/million) 400 365 319 332 * * 343 * * * * * 300 283 221 200 200 100 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 *From 2004 to 2010 figures are prepared in accordance with Internatio
Slide 35: EBITDA
EBITDA (Twelve Months*) (euro/million) 100 94 *** 90 85 87 **** 80 81 79 77 80 75 74 70 65 68 ** 61 (Euro/million) 60 47 47 * * * * * 50 41 40 30 20 10 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 * From 2004 to 2010 figures are prepared in accordance with International Financial Re
Slide 36: EBITDA
EBITDA (Twelve Months*) /yr Disposal of +4 % (euro/million) Cleaning Sector 110 109 **** Global Recession 100 /yr 95 *** / yr 7 % 90 % 85 +1 86 *** +9 81 80 2 % 80 75 +6 71 ** 74 65 70 (Euro/million) 61 59 ** 60 50 47 46 ***** 41 40 30 20 10 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Slide 37: Synthesis of Results
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ million) million) 1996 1996 1997 1996 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005**** 2006 *** 2007 2006*** ****2008 2007**** *****2009 2008***** ******2010 2009****** 2010 Net Sales 199.6 221.3 283.4 319.3
Slide 38: Synthesis of Results (Pro-forma)
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma Pro- Pro-Forma Pro-Forma Pro- Pro-Forma Pro-Forma Pro- Pro-Forma Pro-Forma Pro- Pro-Forma Pro-Forma million) million) 1996 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003
Slide 39: Declaration of the Manager responsible for financial reports
The Manager responsible for preparing the company’s financial reports, Carlo Banci, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting record