Slide 1: NORMA Group First Quarter Results 2014
NORMA Group First Quarter Results 2014 Maintal, 7 May 2014 Customer Value through Innovation
Slide 2: Highlights Q1 2014
Highlights Q1 2014 Very strong start into 2014 with organic growth of 12.6% Sales Sales at EUR 177.8 million (Q1 2013: EUR 159.3 million) EBITA Excellent EBITA of EUR 32.6 million resp. +15.2% y-o-y (Q1 2013: EUR 28.3 million) Margin Adjusted EBITA margin on a high level of 18.4% of sales (Q1 2013:
Slide 3: Strong start into 2014 confirms Full Year Guidance
Strong start into 2014 confirms Full Year Guidance Sales Development in EUR million Sales 2013 2014 Change Change in % thereof thereof thereof organic acquistions currency Q1 159.3 177.8 +18.5 +11.6% +12.6% +1.6% -2.6% Strong start into 2014 with 12.6% organic growth Growth outperforms the growt
Slide 4: Sustainable Margin Development Continues in 2014
Sustainable Margin Development Continues in 2014 17.4% 17.7% 17.4% 17.7% EUR million 40 21.1% 21.0% 21.3% 20.6% 20.8% 20.6% 20.5% 20.5% 20.4% 20.4% 19.9% 19.6% 19.7% 19.6% 19.1% 18.9% 19.0% 19.2% 20% 35 18.2% 18.3% 18.3% 18.1% 18.0% 18.0% 18.4% 17.4% 17.5% 18.0% 17.8% 17.2% 17.1% 16.0% 16.2% 15.9% 3
Slide 5: Personnel Expenses and Margin improved in Q1/2014
Personnel Expenses and Margin improved in Q1/2014 Gross profit improved by 50 basis points Personnel expenses for permanent employees improved with solid growth Flat ratio of value added costs (Personnel + OPEX): Q1/2014: 39.9% vs. Q1/2013: 36.7% Temporary cost impact of 2 plants in built up
Slide 6: No Operational Adjustments in Q1/2014
No Operational Adjustments in Q1/2014 Financial result adjusted by one-off costs due to favourable repayment of SFA in EUR million adjusted PPA adjustments reported Sales 177.8 0 177.8 EBITDA 36.7 No operational adjustments 36.7 EBITDA margin 20.6% 20.6% 0.2 EBITA 32.6 32.4 (Depreciation PPA) EBIT
Slide 7: Strong Development of adjusted EPS in Q1/2014
Strong Development of adjusted EPS in Q1/2014 Reported EPS temporarily affected by one-off financial costs due to better financing adjusted EPS* (in EUR) reported EPS* (in EUR) 0,6 0.61 0.54 0,3 0.50 0.42 0 Q1/2013 Q1/2014 Q1/2013 Q1/2014 net income in 17.3 19.6 15.8 13.6 EUR million * based on nu
Slide 8: Operating Net Cash Flow increased by > 130%
Operating Net Cash Flow increased by > 130% Operating net cash flow in EUR million Q1/2014 Q1/2013 Variance EBITDA 36.7 32.6 +12.7% Δ ± Working capital -11.7 -20.9 -55.6% Operating net cash flow before investments from 25.0 11.7 +115.6% operating business Δ ± Investments from operating business -6.4
Slide 9: Net Debt, Financing and Equity Ratios
Net Debt, Financing and Equity Ratios Leverage first time down to 1.0 (Net debt / EBITDA) Repayment of EUR 101.4 million SFA funded by low interest rate promissory note improves equity ratio during Q1/2014 Net Debt (in EUR) Equity Ratio 400 138* 138* 31.03.2014 31.12.2013 Equity Ratio (Equity /
Slide 10: Acquisition of Five Star Clamps Inc.
Acquisition of Five Star Clamps Inc. M&A Acquisition of Five Star in April 2014 Business Distribution and production of high-quality clamps to customers in over 50 different industries. Model History In the market for more than 25 years. Based in Crest Hill, Illinois, USA Sales Approx. USD 5 million
Slide 11: Outlook 2014 – Company Guidance
Outlook 2014 – Company Guidance Sales Solid organic growth of approx. 4% to 7%, plus approx. EUR 8 million from recent acquisitions EBITA margin Sustainable margin level as in previous years of more than 17% Investments in Approx. 4% of EJT sales R&D Material ratio Approx. on the level of the two pr
Slide 12: Appendix Strategy
Appendix Strategy Customer Value through Innovation 12
Slide 13: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® ~ 52% of sales Emission Next global level of emission reduction ramps up in 2013 reduction with EURO 6 in Europe and 2014 in USA (EPA 15) Breeze Constant Torque Weight
Slide 14: Strong Content Growth based on EURO 6
Strong Content Growth based on EURO 6 EURO 6 introduction for trucks and passenger vehicles in 2014 triggers new engine generations and ramp-up in 2013 Market for joining technology is expected to outgrow the respective end-markets, driven by megatrends including Additional components in new e
Slide 15: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission Regulations Drive Increased Joining Technology Content Today Europe EURO 3 EURO 4 EURO 5 EURO 6 NAFTA EPA '00 EPA '04 EPA '07 EPA '10 EPA '15 Japan JPN '98 JPN '02 JPN '05 JPN '09 JPN '14 J. '19 Brazil EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 EURO 6 Russia EURO 1 EURO 2 EURO 3 EURO 4 EURO
Slide 16: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across EJT market Sales EUR million (year) Additional growth for 700 (2013-18 CAGR) Joining technology market 636 above market growth 600 ~26% Fluid 500 Passenger vehicles add. 2-4% ~74% Clamp (52%) / Co
Slide 17: Premium Pricing through Technology and Innovation Leadership
Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value of Basis for premium pricing: Example: joining technology Harvester content Market leadership Coolin
Slide 18: Enhanced Stability through Broad Diversification
Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions Examples of NORMA Group’s key end-markets Construction / infrastructure / Engines Commercial vehicles Passenger vehicles Construction equipment water management Wholesalers & Technical Agricultural equipment Sh
Slide 19: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways-to-Market Unique business model with two distinct ways-to-market Significant economies of scale in production Close contact to international EJT customers Knowledge transfer from EJT to DS Engineered Joining Technology (EJT) Distribution Services (DS) ~70%
Slide 20: History of Excellence
History of Excellence Foundation Acquisition 2014 NORMA China II Five Star, USA Acquisition Acquisition Variant, Acquisition Guyco, Foundation MDAX listing 2013 Davydick & Co, Australia Poland Australia NORMA Brazil Acquisition Connectors 2011 Acquisition Nordic Acquisition Chien Acquisition Groen 2
Slide 21: Successful Acquisition Track Record Continues
Successful Acquisition Track Record Continues Sales consolidation effects in Date of EUR million Acquisition Country 2012 2013 2014** 2015** Total Connectors Verbindungstechnik AG 04/12 Switzerland 11.5 5.1 - - 16.6 Nordic Metalblok S.r.l. 07/12 Italy 2.3 2.9 - - 5.2 Chien Jin Plastic Sdn. Bhd. 11/1
Slide 22: Acquisition of Connectors Verbindungstechnik AG
Acquisition of Connectors Verbindungstechnik AG M&A Acquisition of Connectors Verbindungstechnik AG, Switzerland, in April 2012 Business Connectors specialises in connecting systems for the pharmaceutical and biotechnology industry. Model For more than 25 years the company has been manufacturing and
Slide 23: Acquisition of Nordic Metalblok S.r.l.
Acquisition of Nordic Metalblok S.r.l. M&A Acquisition of Nordic Metalblok S.r.l., Italy in July 2012 Business Company specialises in manufacturing clamps for various applications particularly for the heating, Model ventilation and air conditioning industry and the agricultural and construction sect
Slide 24: Acquisition of Chien Jin Plastic Sdn. Bhd.
Acquisition of Chien Jin Plastic Sdn. Bhd. Acquisition of Chien Jin Plastic, Malaysia, in October 2012 M&A Closing expected toward year end 2012 Specialised in joining elements for plastic and iron pipe systems for different application areas, esp. Business drinking and domestic water distribution.
Slide 25: Increase in Ownership in Groen Bevestigingsmaterialen BV
Increase in Ownership in Groen Bevestigingsmaterialen BV M&A 60% increase in ownership to 90% in Groen Bevestigingsmaterialen B.V. in December 2012 Wholesale supplier of hose and pipe clamps and coupling to the industrial, construction, agriculture, Business plumbing, hardware and automotive sector
Slide 26: Acquisition of Davydick & Co. Pty Ltd.
Acquisition of Davydick & Co. Pty Ltd. M&A Acquisition of Davydick & Co. in January 2013 Distribution for various elements in the transportation of water in irrigation systems. Specialised in Business supplying a comprehensive range of rural irrigation fittings, valves, and pumps under the brand Mod
Slide 27: Acquisition of Variant S.A.
Acquisition of Variant S.A. M&A Acquisition of Variant S.A. in May 2013 Business Sells joining products and cable ties to over 1,000 retailers and wholesalers across Poland. End Model clients include home improvement stores, garages and specialist retailers for automotive supplies. History Distribut
Slide 28: Acquisition of Guyco Pty. Limited
Acquisition of Guyco Pty. Limited M&A Acquisition of Guyco Pty. Limited in June 2013 Specializes in the design, manufacture and distribution of fittings and valves for freshwater Business distribution, irrigation, agricultural, plumbing and industrial market sectors. It supplies over 700 Model custo
Slide 29: NORMA Group Worldwide
NORMA Group Worldwide EMEA Czech Republic (P) France (P, D) Germany (P, D) Italy (P, D) Netherlands (D) Poland (P) Russia (P, D) Serbia (P, D) Spain (D) Sweden (P, D) Switzerland (D) Turkey (D) United Kingdom (P, D) Americas Brazil (P, D) Mexico (P) USA (P, D) Asia-Pacific Australia (D) China (P, D)
Slide 30: Historic Growth Track Record
Historic Growth Track Record Historic revenue development in EUR million 636 605 581 490 458 385 330 277 229 242 198 207 174 182 138 150 121 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 HGB IFRS 1997 to 2013: 17 years of a successful growth story 30
Slide 31: Outlook 2014 - Strategy
Outlook 2014 - Strategy 1 Continue international expansion of sales network and production footprint 2 Continue to explore business opportunities in APAC 3 Open second China plant to enable expansion into domestic and APAC markets 4 Open plant in Brazil to serve local customers 5 Increase business o
Slide 32: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights 1 Market leader in attractive engineering niche markets with strong growth prospects 2 Premium pricing through technology and innovation leadership in mission-critical components 3 Enhanced stability through broad diversification across products, end-markets a
Slide 33: Sales by Regions and by Way-to-Market
Sales by Regions and by Way-to-Market Strong start in Americas shifts regional split to 31% (Q1/2013: 29%) Split by way-to-market at 71% EJT and 29% DS Q1 2014 (2013) sales breakdown Q1 2014 (2013) sales breakdown by regions by way-to-market 8%* (8%) 29% (30%) 31% 71% 61% (29%) (70%) (63%) Distr
Slide 34: Appendix Full Year 2013
Appendix Full Year 2013 Customer Value through Innovation 34
Slide 35: Sales by regional reporting segments
Sales by regional reporting segments Weaker European environment is outperformed by higher content due to EURO 6 introduction which leads to +5.6% growth Americas reported favourable organic growth of +2.4% which translated into slight negative EUR amounts due to weaker USD Asia-Pacific record
Slide 36: Sales by Way-to-Market and by Industries
Sales by Way-to-Market and by Industries Stable breakdown by way-to-market: Acquisitions included in Distribution Services Majority of sales goes to non-automotive industrials, distributors as well as general tiers Sales to industrial suppliers include various industries , e.g. airplanes, trai
Slide 37: No Operational Adjustments 2014
No Operational Adjustments 2014 Only minor PPA adjustments in post IPO years on EBITA level in EUR million 2010 2011 2012 2013 Q1/2014 Reported EBITA 64.9 84.7 105.2 112.1 32.4 + Restructuring Costs 1.3 1.8 0 0 0 + Non-recurring/non-period-related 15.5 14.8 0 0 0 items* + Other group and normalize
Slide 38: Profit & Loss (adjusted & reported)
Profit & Loss (adjusted & reported) in EUR million 2012 2013 reported adjusted reported adjusted Sales 604.6 604.6 635.5 635.5 Gross Profit 344.4 344.4 371.4 371.4 EBITDA 120.8 120.8 129.3 129.3 EBITA 105.1 105.4 112.1 112.6 in % 17.4 17.4 17.6 17.7 EBIT 94.4 101.9 99.5 107.7 in % 15.6 16.8 15.7 16.
Slide 39: EPS – Dividend Proposal EUR 0.70 per share
EPS – Dividend Proposal EUR 0.70 per share Dividend proposal to the shareholders at the AGM on 21 May 2014: EUR 0.70 per share (2013: EUR 0.65) Pay-out of EUR 22.3 million for 31,862,400 shares equals 36.0% of adjusted net income of EUR 62.1 million Adjusted EPS Reported EPS Dividend per Share E
Slide 40: Solid development of Balance Sheet
Solid development of Balance Sheet (all amounts in EUR million) 31 Dec 2012 31 Dec 2013 (all amounts in EUR million) 31 Dec 2012 31 Dec 2013 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets Total equity 289.2 319.9 436.8 441.5 / Property, plant & equipment N
Slide 41: Working Capital - Historical Low Level of 17.4% of Sales
Working Capital - Historical Low Level of 17.4% of Sales Successful implementation of reverse factoring and optimizing TWC processes boosts trade accounts payables Trade receivables on a slightly higher level due to excellent sales in Q4 2013 EUR million 250 20% 18.3% 18.5%** 18.1% 17.4% 200 15%
Slide 42: Equity increased by EUR 31 million
Equity increased by EUR 31 million due to High Profit even including Dividend Payment Repayment of the parts of the SFA in January 2014 increases equity ratio to ~ 44.2% on a pro forma basis 41.8% 38.8% (~ 44.2%*) EUR million -21 56 -4** 300 35 31 200 320 289 289 289 289 100 0 Equity 2012 Profit D
Slide 43: Successful Issuance of Promissory Note (Schuldschein) in July 2013
Successful Issuance of Promissory Note (Schuldschein) in July 2013 Targets achieved Schuldschein Maturity: Mid-term oriented well balanced Volume EUR 125 million repayment schedule Interest terms improved by ~2% More diversified mix of financing instruments Financial result improves starti
Slide 44: Equity Debt Ratios and Maturity Profile
Equity Debt Ratios and Maturity Profile Equity / Debt Ratios 31.12.2012 31.12.2013 excluding derivatives* 31.12.2012 31.12.2013 Equity Ratio Leverage 41.8% 38.8% 1.4 x 1.1 x (Equity / Balance Sheet Total) (Net debt* / adjusted LTM EBITDA) Equity Ratio Gearing 41.8% ~ 44.2% 0.5 x 0.4 x pro forma (net
Slide 45: Solid Balance Sheet
Solid Balance Sheet Liquid assets and current liabilities temporarily inflated due to refinancing of SFA Repayment of EUR 101.4 million in January 2014 already done EUR million 824 824 1000 800 non-current assets 54.7% total equity 38.8% 320 600 451 400 262 current assets 21.7% non-current liabi
Slide 46: Another Record Operating Net Cash Flow in 2013
Another Record Operating Net Cash Flow in 2013 Operating net cash flow in EUR million 2011 2012 2013 Variance EBITDA 117.0 120.8 129.3 +7.0% Δ ± Working capital -19.5 -9.8 5.1 n.a. Operating net cash flow before investments 97.5 111.0 134.4 21.0% from operating business Δ ± Investments from operatin
Slide 47: Cash Flow Statement
Cash Flow Statement Adjusted operating net cash flow strongly improved by 290 BP to 16.3% of sales (2012: 13.4%) 13.4% of sales 16.3% of sales EUR million 0 100 15 8 8 8 80 60 104 40 81 81 81 81 20 0 adjusted operating ∆ adjusted EBITDA ∆ Working Capital ∆ investments from operating net cashflow 2
Slide 48: Continuation of Growth Track and Sustainable Margin
Continuation of Growth Track and Sustainable Margin into 2012 Revenue (in EUR million) Gross profit (in EUR million) 605 636 400 56.0% 57.0% 58.4% 581 54.9% 55.3% 55.5% 60% of sales 600 490 371 458 300 450 344 40% 330 323 200 300 275 251 182 20% 150 100 0 0 0% 2008 2009 2010 2011 2012 2013 2008 2009
Slide 49: Pro-active FCF Management to be Continued
Pro-active FCF Management to be Continued Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 18.5% 18.3% 18.1%* 18.3% 18.5%** 17.4% 20% of 200 revenues 150 81 79 90 100 70 100 49 46 50 10% 54 45 65 67 74 80 0 -19 -30 -46 -41 -38 -59 80 -50 -100 0% 2008 2009 2010
Slide 50: Shareholder Structure
Shareholder Structure Identified institutional Shareholders 100% 75% 28% 28% 50% 18% 8% 8% 10% 25% 0% pre IPO post IPO Dec. 2012 Today Germany United Kingdom USA Dec. 2011 Nordic France Rest of World 3i MABA CYPRUS Ltd. old & existing management free float Free float per March, 2014 includes: Amerip
Slide 51: Event Dates and Contact
Event Date Annual General Meeting in Frankfurt / Main 21 May 2014 Publication Interim Results Q2 2014 06 August 2014 Publication Interim Results Q3 2014 05 November 2014 Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Email: Andreas.Troesch@
Slide 52: Disclaimer
Disclaimer This presentation contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “