Kendrion N.v. · EURONEXT:KENDR
Kendrion — Shareholder Meeting (April 2011)
28 slides from Kendrion's shareholder meeting presentation, Apr 18, 2011
Slide 1: General Meeting of Shareholders
13-4-2011 Kendrion N.V. General Meeting of Shareholders Monday 18 April 2011 Agenda 1. Kendrion at a glance 2. 2010 highlights 3. Key figures for 2010 and financial objectives 4. Review of the business units 5. Financial position and dividend 6. European Commission fine 7. Corporate Governance 8. Pr
Slide 2: Kendrion at a glance: Electromagnetic solutions
13-4-2011 1. Kendrion at a glance 3 Electromagnetic solutions What have cars, busses, lifts, robots, soft drink dispensers and power stations in common? Electromagnets – they magnetise the world! Honest craftsmanship for and by smart engineers. Kendrion makes these intelligent actuators. Many things
Slide 3: The Kendrion organisation
13-4-2011 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,400 employees (including 200 temps) in 12 countries Turnover 2010: approximately EUR 220 million Listed company on NYSE Euronext's Amsterdam Market 5 Organisat
Slide 4: Committed to being a high-performer in selected business units
13-4-2011 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives To develop leading positions in business-to-business niche markets and to reach geographical spread To develop business units that have strong international Organic growth > 10% To create op
Slide 5: Global activities and core competences
13-4-2011 Global activities Kendrion 9 Our core competences Experience in electromagnetism Dynamic further growth of specialist knowledge Kendrion Customer Innovation management excellence Cutting-edge green technology solutions Benefit from the cross-divisional know-how Identification with customer
Slide 6: Modular production and UN Global Compact principles
13-4-2011 Modular production and processes Low volume production Medium-sized series High volume production Clean room technology End of line testing Environmental testing ISO 9001 ISO 14001 TS 16949 Innovative solutions from a single source! 11 Kendrion stands for the UN Global Compact principles H
Slide 7: Kendrion's strategy
13-4-2011 Kendrion's strategy - A clearly defined profile of a multinational, fast-growing high-tech company - Building leading positions in business-to-business niche markets - Creating operational and commercial synergy between the business units - Ambitious growth targets (EUR 350 million in reve
Slide 8: 2010 highlights
13-4-2011 2010 highlights (1) - Excellent year; organic revenue growth of 43% - Very strong fourth quarter (revenue up 46%); our highest net quarterly profit on record - Net profit for full year 2010: EUR 16.6 million (including a non-recurring tax gain of EUR 1.8 million) - Company has fully benefi
Slide 9: Key figures for 2010
13-4-2011 3. Key figures for 2010 and financial objectives 17 Key figures 2010 (x EUR 1 million) Q4 2010 4 Q4 2009 4 Revenue 58.9 40.4 EBITA from ordinary activities 6.6 2.4 Net profit 6.2 1.8 (x EUR 1 million) 2010 1 2009 Revenue 221.9 149.2 EBITA from ordinary activities 24.2 5.7 2 Net profit 16.6
Slide 10: Financial objectives
13-4-2011 Financial objectives Target Realisation 2010 Organic growth >10% per year 43% ROS >10% 10.9% ROI >17.5% 18.7% Solvency ≥ 30% 64.7% EBITDA/Interest-bearing debt <3.00 0.16 Free cash flow Healthy 105% of net profit Dividend 30% of net profit 40% of net profit 19 4a. Review of the business un
Slide 11: Industrial Magnetic Systems: General and 2010
13-4-2011 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: mechanical engineering, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in Germany, Switzerland, Austria, China and the US an
Slide 12: Customers and Products
13-4-2011 Customers 23 Products 24 12
Slide 13: Products / Review of the business units
13-4-2011 Products 25 4b. Review of the business units 26 13
Slide 14: Industrial Drive Systems: General and 2010
13-4-2011 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Production site in Germany; international sales are coordinated through UK sales office - Acquisition of Magneta in Aerzen, Germany, effective 1 March 2010 - Global market leader in permanent m
Slide 15: Customers and Products
13-4-2011 Customers 29 Products Permanent magnet brakes Electromagnetic spring applied brakes Electronic accessories Electromagnetic clutches Medical Machine tools Brake-Motor Drives applications Brakes for hazardous Automatic Door Drives locations Brakes for hazardous Elevators High Power Brakes In
Slide 16: Passenger Car Systems: General
13-4-2011 4c. Review of the business units 31 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania and China - Primarily serves European Original Equipment Manufacturers (Daimler, Volkswagen (incl
Slide 17: Passenger Car Systems: 2010 and Customers
13-4-2011 2010 - Strong organic revenue growth in 2010 (+62%), on the back of a revival in the German automotive industry - Growth across the entire product range and in all locations; large number of projects - Leading position in electromagnetic valves for diesel engines is increasingly starting t
Slide 18: Products Applications (1)
13-4-2011 Products Gear Shifts Differential Gear Common Rail injection systems Linear Solenoid (Shiftlock) Electromagnetic Brake Pressure Control Valve for Common Rail-Diesel injection (PCV) Linear Solenoid (Key lock) Electromagnetic Brake Volume Control Valve for (Differential lock) Common Rail –Di
Slide 19: Applications (2) and (3)
13-4-2011 Applications (2) 37 Applications (3) 38 19
Slide 20: Commercial Vehicle Systems: General
13-4-2011 4d. Review of the business units 39 General - Operations: components and total cooling systems for buses and coaches, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Sites in Germany, US, Mexico, Brazil and China - USPs
Slide 21: Commercial Vehicle Systems: 2010 and EvoBus
13-4-2011 2010 - Strong revenue growth in 2010 (+37%) - German bus market not yet back to pre-crisis levels - Growth driven primarily by Far East (China and Korea) - Continued focus on truck market in coming years - New product for truck market ("Terminator") successful in US market - New-market pen
Slide 22: Kendrion LINNIG branches and main product groups
13-4-2011 Kendrion LINNIG branches 43 Kendrion LINNIG main product groups Motor cooling Air conditioning Engine mounted products • Electromagnetic fan clutch • Angle gear box • Tensioner pulley • Electrical fan drive • Electromagnetic compressor clutch • Deflection pulley • Control units • Torsional
Slide 23: Kendrion LINNIG packaging – bus application
13-4-2011 Kendrion LINNIG packaging – bus application Electromagnetic fan clutch Torsional Deflection pulley with angle gear box vibration damper Electromagnetic compressor clutch Tensioner pulley 45 5. Financial position and dividend 46 23
Slide 24: Financial position and Dividend
13-4-2011 Financial position - Free cash flow for Q4 2010: EUR 7.5 million - Excellent free cash flow for full year 2010: EUR 17.4 million - Working capital is under control - Strong balance sheet (net debt at year-end 2010: EUR 5.2 million; solvency: 65%) - New five-year financing arrangement (EUR
Slide 25: European Commission fine
13-4-2011 6. European Commission fine 49 European Commission fine - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel during period 1995-2002 - According to three respected law firms, Kendrion stands a good chance of successfully defe
Slide 26: Corporate Governance
13-4-2011 7. Corporate Governance 51 Corporate Governance - No material changes in 2010 - New composition committees - Remuneration Committee Ms M.E.P. Sanders (Chair) and Mr S.J. van Kesteren - Audit Committee: Mr R.L. de Bakker (Chairman) and Mr H.J. Kayser - No material changes in corporate gover
Slide 27: Priorities and outlook: Priorities for 2011
13-4-2011 8. Priorities and outlook 53 Priorities for 2011 - Four key themes (Flexibility, Innovation, Sustainability and Globalisation) - Further market segmentation by industry - Achieving our financial objectives (in relation to costs and cash) - Expanding our business in Romania and India - Furt
Slide 28: Outlook for 2011 – We magnetise the world!
13-4-2011 Outlook for 2011 - Global uncertainty (in North Africa, southern Europe and China) - Year is off to a good start - Very strong order book - Operations remain strong; no sign of a decline - Investment significantly above depreciation level (ERP project) - Strong financial position - Revenue