Pilkington Deutschland AG · HAM:FDD
Pilkington Deutschland — Pilkington — H1 2000/01 Earnings Presentation
42 slides from Pilkington Deutschland's earnings presentation, October 2000
Slide 1: Pilkington
oH) PILK INGTON
Slide 2: Interim Results 2000/01
Interim Results 2000/01
Slide 3: Financial Summary
Financial Summary £m % Change Sept 2000 @ constant Sept Sept @ constant exchange exchange rates 2000 1999 Turnover 1,363 1,357 1,357 Operating profit +29% 143 139 111 Net interest payable (37) (37) (33) Profit before tax & exceptionals +36% 106 102 78 EPS pre exceptional +42% 5.7p 5.3p 4.0p 3
Slide 4: First Half Profits
First Half Profits 200 180 160 140 Millions 120 Result in £'s 100 Result in Euro's 80 60 40 20 0 H1 98 H1 99 H1 00 H1 01 4
Slide 5: Turnover Business Lines
Turnover Business Lines £m Building Automotive Other* Total Products Products Sept 1999 645 638 74 1,357 Volume/mix 28 20 (29) 19 Price 30 7 - 37 Acq/Div (8) - (42) (50) At constant exchange rates 695 665 3 1,363 Exchange (9) 3 - (6) Sept 2000 as reported 686 668 3 1,357 * (Discontinued, Group Opera
Slide 6: Business Operating Profit
Business Operating Profit 2000 1999 2000 1999 £m £m £m £m 143 111 143 111 4 4 Exchange 45 3 Discontinued 38 Automotive 91 64 Europe 103 81 27 Building 39 N. America 30 R.O.W. 19 (9) (11) (9) (11) Group Ops 6
Slide 7: Cash Flow
Cash Flow £m Sept 2000 Sept 1999 Operating cash flow 160 142 Capital expenditure less disposals (72) (86) Cash flow from operating activities 88 56 Taxation and servicing of finance (44) (45) Cash flow from operating activities after finance costs 44 11 Restructuring costs (35) (22) Net cash flow be
Slide 8: Key Financials
Key Financials Sept 2000 Sept 1999 EPS pre exceptional 5.3p4.0p Interest cover 3.83.4 Cash interest cover 6.86.2 Net borrowings £613m£657m 8
Slide 9: October 2000 Review
October 2000 Review
Slide 10: October 2000 Review
October 2000 Review 1. Business Outlook 2001 2. Global Glass Market Trends • Building Products • Automotive Products 3. Pilkington in 2003 - Update 10
Slide 11: Business Outlook 2001
Business Outlook 2001
Slide 12: Business Outlook 2001: Building Products
Business Outlook 2001 Building Products • Global float capacity highly utilised and prices firm all over the world • Productivity improvements reflected in results • North America market firm. Our performance penalised by repair programme/inefficiencies • Energy costs remaining high, particularly in
Slide 13: Business Outlook 2001: Automotive Products
Business Outlook 2001 Automotive Products • OE volumes continue at sustained level throughout the world • More stable global pricing environment • Step Change programme on target in North America and complete in Europe • AGR improving in Europe • AGR recovering strongly in the US 13
Slide 14: Global Glass Market Trends: Building Products
Global Glass Market Trends Building Products
Slide 15: Float Demand Outstrips GDP Growth
Global Glass Market Trends Float Demand Outstrips GDP Growth 300 250 Index (1980 = 100) Float Glass ~ 5% p.a. 200 150 Real GDP - 3.7% p.a. 100 50 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 Calendar Year 15
Slide 16: Sustained High Capacity Utilisation
Global Glass Market Trends Sustained High Capacity Utilisation Available Capacity Demand Capacity Utilisation 45 95% 40 35 90% Mn Tonnes 30 25 85% 20 15 10 80% 5 0 75% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Calendar Year 16
Slide 17: Capacity Utilisation Projected to Rise
Global Glass Market Trends Capacity Utilisation Projected to Rise Available Capacity Demand Capacity Utilisation 45 100% (231)* (239)* (254)* 40 35 95% 30 Mn Tonnes 25 90% 20 85% 15 10 80% 5 0 75% 1998 2000 2003 Calendar Year * estimated number of floats 17
Slide 18: Building Products - Summary
Global Glass Market Trends Building Products - Summary • Float Glass demand growing steadily at 5% p.a. • Global capacity utilisation consistently high, ranging 85 - 95% • In 2000 capacity utilisation at 87%; likely to increase in next three years 18
Slide 19: Global Glass Market Trends: Automotive Products
Global Glass Market Trends Automotive Products
Slide 20: Light Vehicle Build Grows Steadily
Global Glass Market Trends Light Vehicle Build Grows Steadily ‘000s vehicles Vehicle Build 2.5% p.a. 60,000 2.0% 50,000 E.Europe 7.6% Asia/Pacific 40,000 -2.3% Japan 6.6% 30,000 Mercosur 2.1% 20,000 W.Europe 10,000 NAFTA 4.6% 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 20
Slide 21: Automotive Glass Demand Grows more than Vehicle Build
Global Glass Market Trends Automotive Glass Demand Grows more than Vehicle Build Total Growth 5% p.a. 225 200 + 0.5% 175 G r o w in g 3.5% p.a. AGR Demand 150 + 1% in O E G la z ing Systems + 1% Growth la ss per Vehicle 125 Gro wt h in O E G 100 B uild OE Light Vehicle 2.5% p.a. 75 50 25 0 1991 1992
Slide 22: Global Suppliers Serving Global Customers
The Global Automotive Market Global Suppliers Serving Global Customers 1992 1995 1998 1999 57% 62% 65% 68% VMs Global 6 VMs: GM, Ford (+ Volvo), Toyota, Renault (+ Nissan), VW, Mercedes (+ Chrysler) OE Glassmakers 49% 54% 63% 65% Global 3 Suppliers: Pilkington, Asahi & Saint-Gobain, plus Associates
Slide 23: Automotive Products - Summary
Global Glass Market Trends Automotive Products - Summary • Vehicle build is growing steadily by 2.5% p.a. • Global automotive glazing demand grows by 5% p.a. • Globalisation of automotive industry beneficial to global automotive glass suppliers 23
Slide 24: Pilkington in 2003 - Update
Pilkington in 2003 - Update
Slide 25: Pilkington in 2003
Pilkington in 2003 We will be the • most competitive • most profitable • fastest growing global glass company in the world 25
Slide 26: Most Competitive: Overhead to Sales Ratio
Most Competitive Overhead to Sales Ratio 30 29% 26% 25 23% % 22% 20 < 20% 15 1998 1999 2000 H1 2003 2001 26
Slide 27: Most Competitive: Float Productivity
Most Competitive Float Productivity 1200 1000 1000 800 810 600 720 660 575 400 200 0 H1 98 H1 99 H1 00 H1 01 2003 Tonnes per Head 27 Actuals Targets
Slide 28: Most Competitive: Automotive Productivity
Most Competitive Automotive Productivity 18 6 Windscreens Back and side lights 16 16.2 5 15.4 14 14.5 14.1 12 4 4.5 4.3 3.9 3.8 10 10 3 8 3.0 6 2 4 1 2 0 0 H1 98 H1 99 H1 00 H1 01 2003 H1 98 H1 99 H1 00 H1 01 2003 Automotive OE man minutes per piece 28 Actuals Targets
Slide 29: Most Profitable: Return on Sales
Most Profitable Return on Sales 16 % 13 10.5 8.4 8.1 4.8 H1 98 H1 99 H1 00 H1 01 Target 2003 Actuals Targets 29
Slide 30: Most Profitable: Return on Net Trading Assets
Most Profitable Return on Net Trading Assets 20 % 16 12.1 9.9 9.3 7.6 H1 98 H1 99 H1 00 H1 01 Target 2003 Actuals Targets 30
Slide 31: Fastest Growing: Recent Initiatives
Fastest Growing Recent Initiatives • Shanghai Fuhua (China) • Sandoglass (Poland) 100% • Visteon - Due Diligence in progress • Fourth Cebrace float in Southern Brazil 31
Slide 32: e-Commerce Update
Fastest Growing e-Commerce Update • Building Products – Online ordering in five countries – BP Australia - 7.5% of sales online and growing • Automotive Products – OE sales almost entirely online globally – AGR Europe - online ordering in four countries – AGR N America - online sales now over $110,0
Slide 33: First in Glass
oH) PILK INGTON First in Glass
Slide 34: Appendix
Appendix
Slide 35: Building Products Europe
Building Products Europe Results 2000 Turnover £783m Profit £90m RoS 11.5% Trends 2001 • Float at full capacity • Prices firm • Higher energy costs 35
Slide 36: Building Products North America
Building Products North America Results 2000 Turnover £173m Profit £20m RoS 11.6% Trends 2001 • Float demand and prices steady • Energy costs continue high • Two float repairs 2001 36
Slide 37: Building Products Rest of the World
Building Products Rest of the World Results 2000 Turnover £250m Profit £38m RoS 15.2% Trends 2001 • Australia - float at full capacity and firm prices • Brazil & Chile - volumes and prices improving • Argentina - stable 37
Slide 38: Automotive Products Europe
Automotive Products Europe Results 2000 Turnover £607m Profit £47m RoS 7.7% Trends 2001 • Strong car build continues • More stable pricing environment • AGR continues to benefit from reorganisation 38
Slide 39: Automotive Products North America
Automotive Products North America Results 2000 Turnover £468m Profit £15m RoS 3.2% Trends 2001 • Sustained car build • AGR turnaround underway • Step change for OE on track 39
Slide 40: Automotive Products Rest of the World
Automotive Products Rest of the World Results 2000 Turnover £99m Profit £1m RoS 1.0% Trends 2001 • South America - strong improvement in results as market recovers • Australia - slowdown continues 40
Slide 41: VVP (Mexico)
VVP (Mexico) Pilkington share of Results 2000 Turnover £195m Profit £38m RoS 19.5% Trends 2001 • Pressure from imports and strong peso • Growth in US continuing • Exports to S America declining 41
Slide 42: First in Glass
oH) PILK INGTON First in Glass