Komax Holding AG · SIX:KOMN
Komax — H1 2016 Earnings Presentation
32 slides from Komax's earnings presentation, Aug 23, 2016
Slide 1: Half-year results 2016 and targets 2017–2021
THE WAY TO MAKE IT Half-year results 2016 and targets 2017–2021 23 August 2016 23 August 2016 / Half-year results 2016 and targets 2017-2021 / 1
Slide 2: Komax Group – Global market leader with strong innovative drive
Komax Group – Global market leader with strong innovative drive THE WAY TO MAKE IT Founded more than 40 years ago (1975) Focus on growth markets: Leading manufacturer of innovative high-quality solutions for the automation of wire processing and testing of wire harnesses Megatrends as growth drivers
Slide 3: Agenda
Agenda THE WAY TO MAKE IT Half-year results 2016 Focus on core market (Wire) Targets 2017–2021 Outlook for 2016 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 3
Slide 4: Key figures
Key figures THE WAY TO MAKE IT 1 +/- in TCHF H1 2015 H1 2016 Internal Acquisitions Currencies Total growth Order intake 165,508 174,361 5.3% 2 Revenues 147,459 177,471 11.8% 6.9% 1.7% 20.4% Book-to-bill 1.12 0.98 EBIT 23,445 27,036 15.3% in % of revenues 15.9% 15.2% 0.9pp Result from discontinued op
Slide 5: High profitability and return on capital
High profitability and return on capital THE WAY TO MAKE IT EBITD and EBIT in % of revenues RONCE and Net Capital Employed 28.4 26.4 Margin 19.0 18.0 15.9 15.2 202.2 174.0 32.0 28.0 27.0 23.4 H1 2015 H1 2016 H1 2015 H1 2016 in CHF million in CHF million EBITD NCE EBIT RONCE in % EBITD in % of revenu
Slide 6: Komax Medtech: Key figures of sale
Komax Medtech: Key figures of sale THE WAY TO MAKE IT Payment received: CHF 30.0 million Komax Medtech transaction value Contingent consideration of CHF 8.0 million in total • Earn-out: CHF 6.0 million • Sale of residual stake (24%): CHF 2.0 million in CHF million No valuation adjustment to original
Slide 7: Revenues: strong growth
Revenues: strong growth THE WAY TO MAKE IT EBIT margin in % of revenues Net sales by region 19% 2% 15.9 15.2 Asia Switzerland 177.5 20% 147.5 in CHF million North/South Net sales America 51% Europe 8% Africa H1 2015 H1 2016 Change from previous year 0% 10% 20% 30% Sales growth 20.4%, internal growth
Slide 8: EBIT: increase of 15.3%
EBIT: increase of 15.3% THE WAY TO MAKE IT in CHF million 18.5 –9.4 –1.7 –3.8 Gross profit margin Personnel H1 2016: 65.8% expenses 23.4 27.0 • Product mix in % of revenues • Volume effect H1 2016: 34.4% marginal Higher volumes, Focusing on higher variable Personnel harness testing costs expenses wi
Slide 9: Free cash flow: Affected by strong investment activity
Free cash flow: Affected by strong investment activity THE WAY TO MAKE IT in CHF million 5.1 20.4 –0.7 6.6 –25.3 Dividends CHF -22.5 million 56.9 50.8 Free cash flow CHF -0.5 million (H1 2015: CHF 8.8 million) Increase in financial Cash flow from operating activities of CHF 22.6 million liabilities
Slide 10: Currencies: Positive impact on revenues, gross profit and EBIT
Currencies: Positive impact on revenues, gross profit and EBIT THE WAY TO MAKE IT Currency impact Net sales by currency • Net sales +1.7% • Gross profit margin +1.4 percentage points 14% 12% CHF • EBIT margin +0.9 percentage points Others Other currencies: significant rise due to acquisitions (from
Slide 11: Group profit after taxes (EAT): Increase of 72.1%
Group profit after taxes (EAT): Increase of 72.1% THE WAY TO MAKE IT Absolute increase in EAT of CHF 8.6 million Sharp improvement in financial result by CHF 4.8 Tax rate in % of EBT million to CHF –0.6 million in H1 2016; prior year 15.3 influenced by abandonment of minimum euro-franc 13.8 exchange
Slide 12: Financial situation remains extremely robust
Financial situation remains extremely robust THE WAY TO MAKE IT Equity ratio 70.0% Equity ratio in % of total assets Net cash of CHF 16.1 million 71.0 70.0 (31.12.2015: CHF 34.4 million) Intangible assets CHF 52.8 million (31.12.2015: CHF 49.5 million), of which goodwill CHF 32.1 million (31.12.2015
Slide 13: Changeover from IFRS to Swiss GAAP FER
Changeover from IFRS to Swiss GAAP FER THE WAY TO MAKE IT IFRS Scope of requirements continues to increase Accounting rules becoming increasingly complex (e.g. IFRS 15 / recognition of revenues) Application of IAS 19 (employee benefits) Swiss GAAP FER Suited to the needs of medium-sized internationa
Slide 14: Agenda
Agenda THE WAY TO MAKE IT Half-year results 2016 Focus on core market (Wire) Targets 2017–2021 Outlook for 2016 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 14
Slide 15: Automotive: Key market for the wire processing industry
Automotive: Key market for the wire processing industry THE WAY TO MAKE IT Around 60% of all processed wiring is used in the automotive industry Characteristics of the automotive industry • High degree of standardization • High number of units • High quality requirements • Dynamic and innovative 23
Slide 16: Megatrends support Komax’s business
Megatrends support Komax’s business THE WAY TO MAKE IT Safety Affordable vehicles From accident protection to accident Increase in cost efficiency through avoidance platform strategies Environmental awareness / Integrated automobile climate change Integrated information systems manage Emission-free
Slide 17: The expected number of wires to be processed in vehicles is increasing continuously
The expected number of wires to be processed in vehicles is increasing continuously THE WAY TO MAKE IT Strong growth in wires requiring processing In addition: 2 – 3% CAGR Two additional factors are doubling the volume over 5 years growth that comes from the increase in vehicle production: • Rise in
Slide 18: Key strategic priorities
Key strategic priorities THE WAY TO MAKE IT Solutions along the Innovative production Increase in global Development of non- value chain concepts reach automotive markets 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 18
Slide 19: Development of non-automotive markets
Development of non-automotive markets THE WAY TO MAKE IT Aerospace Telecom/Datacom Industrial Safety Multimedia Small batches Lightweight construction Connected cars E-mobility Reduction of emissions Autonomous driving Integrated production / industry 4.0 Selective and complementary build-up of comp
Slide 20: Continuous strengthening of market position through targeted complementary acquisitions
Continuous strengthening of market position through targeted complementary acquisitions THE WAY TO MAKE IT Acquisitions Expansion of range of products and solutions 2012 TSK Gruppe Testing systems for wire harnesses MCM Cosmic Automatic stripping equipment for the entry-level segment and for the pro
Slide 21: Broad product spectrum from a single source
Broad product spectrum from a single source THE WAY TO MAKE IT Komax is a universal contact partner for Unparalleled network of partners all wire processing requirements: Standard machinery or customer-specific solutions Accessories such as quality monitoring modules and integration solutions Testin
Slide 22: Unique global presence: Komax is close to its customers
Unique global presence: Komax is close to its customers THE WAY TO MAKE IT Production plants in Europe, North and South America, Asia and Africa Incomparable customer proximity: global distribution and service network with representative offices in some 60 countries Local expertise: service organiza
Slide 23: Digital transformation: Investment in sustainable business success
Digital transformation: Investment in sustainable business success THE WAY TO MAKE IT Significant annual investment in development: 7–8% of revenues Objective: regular development of differentiating, innovative products and solutions Digital transformation: • Komax is making significant investments
Slide 24: Consolidation of leading position in core market
Consolidation of leading position in core market THE WAY TO MAKE IT Greater ENTREPRENEURIAL Business tracks FREEDOM Leading MEGATRENDS Focusing successfully completed – Komax is proactively looking to the MARKET POSITION Mobility (including e-mobility and future and creating value for customers,
Slide 25: Agenda
Agenda THE WAY TO MAKE IT Half-year results 2016 Focus on core market (Wire) Targets 2017–2021 Outlook for 2016 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 25
Slide 26: Strategy 2017–2021: Geared around long-term success
Strategy 2017–2021: Geared around long-term success THE WAY TO MAKE IT The Komax Group has been renowned for years for its • very strong capital base • impressive profitability Over the coming years too, the Komax Group will strive to • continue its long-term, sustainable business policy • further c
Slide 27: 2017–2021: Ambitious targets, attractive dividend policy
2017–2021: Ambitious targets, attractive dividend policy THE WAY TO MAKE IT 2021 2021 2017–2021 2017–2021 CHF CHF 500–600 80-100 Avg. 25% 50–60% million million of EAT Revenues EBIT RONCE Payout 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 27
Slide 28: Agenda
Agenda THE WAY TO MAKE IT Half-year results 2016 Focus on core market (Wire) Targets 2017–2021 Outlook for 2016 23 August 2016 / Half-year results 2016 and targets 2017–2021 / 28
Slide 29: Outlook of the Komax Group
Outlook of the Komax Group THE WAY TO MAKE IT The competitive situation remains challenging. However, thanks to its unique global presence and associated proximity to its customers, as well as its impressive innovative strength, the Komax Group is well positioned. From the current standpoint, the Ko
Slide 30: Contact / financial calendar
Contact / financial calendar THE WAY TO MAKE IT Contact Financial calendar Roger Müller First information 17 January 2017 Industriestrasse 6 on the year 2016 6036 Dierikon Annual media conference / 21 March 2017 Switzerland analysts’ presentation of Phone +41 41 455 06 16 2016 financial statements r
Slide 31: Forward-looking statements
Forward-looking statements THE WAY TO MAKE IT This presentation contains forward-looking statements in relation to Komax, which are based on current assumptions and expectations. Unforeseeable events and developments could cause actual results to differ materially from those anticipated. Examples in
Slide 32: Half-year results 2016 and targets 2017–2021
THE WAY TO MAKE IT Half-year results 2016 and targets 2017–2021 23 August 2016 23 August 2016 / Half-year results 2016 and targets 2017-2021 / 32