Wendel Se · EURONEXT:MF
Wendel — Stahl — Investor Day (December 2013)
20 slides from Wendel's investor day presentation, Dec 5, 2013
Slide 1: Stahl – Wendel's investor day
Stahl Huub van Beijeren Wendel’s investor day December 5, 2013
Slide 2: Group Overview
Group Overview Sales by division (In EUR million) H1 2012 FY 2012 H1 2013 Wet-End Sales 184.6 361.2 175.7 14% EBITDA1 27.8 54.9 30.3 Leather As % of sales 15.1% 15.2% 17.2% Finish Performance Coatings 52% Operating income1 23.7 45.8 24.8 34% As % of sales 12.8% 12.7% 14.1% Net financial debt 187.6 1
Slide 3: Company strengths and profile
Company strengths and profile Barriers to entry Product know-how Highly qualified sales technicians (“Golden Hands”) Longstanding customer relationships Leading position Strong brands Worldwide presence Stahl Leather Finish Innovation / technology Stahl Wet-End Market leader in Finis
Slide 4: Management team
Management team Huub van Beijeren The Netherlands CEO - Board member Mike Tomkin John Fletcher Bram Drexhage UK USA The Netherlands Leather Finish Automotive Leather Finish CFO - Board member Xavier Rafols Guido Borgart Spain The Netherlands Pielcolor Manufacturing, R&D Jacques Potier Jacques Potier
Slide 5: Vision Stahl from a financial perspective
Vision Stahl from a financial perspective Organic Growth Innovation External Growth Sales growth Leather Chemicals: Margin optimisation Realizing synergies Cost control Working Capital Performance Coatings: optimization Buy and Build Cash Conversion Value Creation EBITDA x Multiple -/- Net Debt Inve
Slide 6: Vision Stahl from a balanced stakeholders perspective
Vision Stahl from a balanced stakeholders perspective Customers Sales & Marketing Suppliers Employees R&D Human Resources Purchasing Operations Corporate Social Responsibility Banks Finance & ICT Society Shareholders Investor Day 2013 – December, 5 6
Slide 7: Stable long term sales track record
Stable long term sales track record Stahl’s sales index 600 500 400 300 200 100 0 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 Leather Finish (sales index) Performance Coatings (sales index) Stable long term sales growth between 1986 and 2012 – Performance Coatings: growth
Slide 8: Strong operational improvements
Strong operational improvements LTM EBITDA & Cash Flow 70 60.5 60 54.9 57.6 In € million 50 45.0 41.9 40 30 22.6 20 Dec.-11 Mar -12 Jun-12 Sept.-12 Dec.-12 Mar -13 Jun-13 Sept.-13 LTM EBITDA LTM Cash Flow from Operations Strong EBITDA and cash flow growth during 2012 and 2013 – EBITDA growth >35%
Slide 9: Key levers for future EBITDA and Cash Flow growth
Key levers for future EBITDA and Cash Flow growth Organically – Continued focus on profitable sales growth • Performance Coatings – numerous opportunities • Leather Chemicals – selected customer approaches / working with worldwide brands – Elimination of lower margin business – Selective fixed cos
Slide 10: Stahl and Clariant in exclusive negotiations regarding Clariant Leather Services
Stahl and Clariant in exclusive negotiations regarding Clariant Leather Services
Slide 11: Building a high potential combination
Building a high potential combination Exclusive negotiations between Stahl and Clariant for the acquisition of Clariant’s Leather Services Business Unit Creation of the worldwide market leader of leather chemicals Significant synergy potential of €UR 15m on the combined EBITDA level – Manufact
Slide 12: Side-by-side: Stahl & Clariant Leather Services combination
Side-by-side : Stahl & Clariant Leather Services combination Based on 2012 figures Million Total 2012 €700 sales 616 M€ €600 128 €500 84 319 €400 Sales 361 M€ 43 Sales 255 M€ €300 191 117 €200 33 61 18 €100 d 119 119 €- Stahl CLS (proforma) Stahl + CLS Leather finishing Wet end Dyes Performance coat
Slide 13: Side-by-side: Stahl & Clariant Leather Services combination
Side-by-side : Stahl & Clariant Leather Services combination Million Based on 2012 figures Stahl + CLS €90 Synergies 15 M€ €80 CLS eEBITDA : 93 M€ €70 EBITDA : 23 M€ eMargin: >15% Margin: 9.0% €60 €50 Stahl EBITDA : 55 M€ €40 Margin: 15.2% €30 €20 €10- Investor Day 2013 – December, 5 13
Slide 14: Position in the leather processing chain
Position in the leather processing chain Wet end processing Retanning / Beamhouse Tanning Dying Finishing Stahl CLS Ready to use leather Stahl + CLS Stahl + CLS covers the full leather processing chain Focus will remain on the higher margin product groups Investor Day 2013 – December, 5 14
Slide 15: Worldwide coverage
Worldwide coverage Holland Germany France Switzerland USA Turkey Portugal Korea Italy Pakistan China Japan Spain Bangladesh Taiwan Mexico Thailand Ethiopia HQ Stahl Singapore HQ CLS India Colombia Indonesia Plant Stahl Brazil Plant CLS Application Lab Stahl Application Lab CLS Argentina 57 applica
Slide 16: Conclusions
Conclusions Strong fundamental values of Stahl remain unchanged • Leading premium brand • Technical know-how • Scale and worldwide presence • Down to earth • Empowerment of local management / back to basics Strong financial performance in 2012 and 2013 in terms of • EBITDA growth • Cash generati
Slide 17: Appendix
as re) Cc 0) OQ. OQ. <
Slide 18: Leather processing value chain
Leather processing value chain Beamhouse - remove unwanted components from the animal hide Tanning - stabilize the hide, turning it into a standardized product ready for further leather preparation Retanning / dying – provide suitable functionalities including fullness, softness and color Fi
Slide 19: Key transaction terms
Key transaction terms Transaction values Stahl at an EV/EBITDA multiple of over 9 x estimated and Clariant Leather Services at c. 7.5 x estimated EBITDA, thus a premium of c. 25% for Stahl Clariant would receive 23% of the shares of Stahl and a cash payment of c. €70million. Wendel would remain
Slide 20: Side-by-side: Stahl + Clariant Leather Services combination
Side-by-side: Stahl + Clariant Leather Services combination Clariant Leather + Clariant Leather Services Services 361 M€ 255 M€ 616 M€ 2012 sales 55 M€ 23 M€ 78 M€ 15.2% 9.0% 12.6% 2012 EBITDA Margin Performance Dyes coatings 17% 19% Performance coatings Leather Leather Leather Dyes 33% finishing fi