R. Stahl Aktiengesellschaft · XETR:RSL2

R. Stahl Aktiengesellschaft — R. Stahl — German Equity Forum 2014

37 slides from R. Stahl Aktiengesellschaft's conference presentation, November 2014

  1. Slide 1: German Equity Forum 2014

    German Equity Forum 2014 Frankfurt, November 2014

  2. Slide 2: Agenda

    AS A LEADING SUPPLIER, R. STAHL GUARANTEES ABSOLUTE RELIABILITY AND QUALITY WHEN IT COMES TO SAFETY AND EXPLOSION PROTECTION. OUR INTERNATIONAL ORGANIZATION OFFERS SYSTEMS SOLUTIONS AND PRODUCTS AROUND THE WORLD WITH THE SAME HIGH OBJECTIVE: PERFORMANCE EXCELLENCE FOR SATISFIED CUSTOMERS. x I. Execu

  3. Slide 3: Leading Supplier in Explosion Protection

    I. Executive Summary Leading Supplier in Explosion Protection  LEADING GLOBAL SUPPLIER of electric and electronic products and systems for explosion protection with subsidiaries in 24 countries and ~1,900 employees  14 % MARKET SHARE, NO. 2 WORLDWIDE in explosion protection (total volume € 2.25 bi

  4. Slide 4: Experienced Management

    I. Executive Summary Experienced Management 3 1 2 4 1 MARTIN SCHOMAKER 3 CLIFE HERMANOWSKI Chief Executive Officer – responsible for Head of Production & Technology – over 30 years of experience in the field of explosion protection Sales/ Marketing, Technology/Production, Quality Management, Product

  5. Slide 5: 2005 - 2013 – Success in Figures

    I. Executive Summary 2005 - 2013 – Success in Figures SALES 2005 - 2013 EBIT 2005 - 2013 (in million €) (in million €) 26.9 291 304 24.9 243 21.5 19.3 24.9 212 221 203 223 167 18.5 16.8 150 2013: +4.6 % 12.6 9.3 2005 2013 2005 2013 ORDER INTAKE 2005 - 2013 EBIT-MARGIN 2005 - 2013 (in million €) (in

  6. Slide 6: Strong Business Platform

    I. Executive Summary Strong Business Platform INVESTMENTS FOR FUTURE GROWTH Market Leadership in Systems Business • No. 1 supplier of systems solutions worldwide through business expansion • Increased resilience due to different cyclicality compared to standard product business International Presenc

  7. Slide 7: Financial Overview 9M – All-time High Order Intake

    II. Finance Financial Overview 9M – All-time High Order Intake in million € Q1-3 2014 Q1-3 2013 ∆ in % Order Intake 252.8 232.2 8.8 % Sales 227.1 226.0 0.5 % EBIT 13.0 19.3 (32.6) % SALES AND EBIT PROGRESSIVELY FOLLOWING STRONG GROWTH IN ORDER INTAKE  All-time high order intake of € 252.8 million w

  8. Slide 8: Strong Growth in Order Intake – Particularly in Asia/Pacific

    II. Finance Strong Growth in Order Intake – Particularly in Asia/Pacific ORDER INTAKE BY REGION Jan. – Sep. (in million €) Increasing demand in Asia and Australia (5.3) % Strong dynamics in the U.S. 107.4 101.7 Slower dynamics in Europe due to a weaker demand from Norway and political uncertainties

  9. Slide 9: Increasing Sales in Germany and Asia/Pacific

    II. Finance Increasing Sales in Germany and Asia/Pacific SALES BY REGION Jan. – Sep. (in million €) (3.9) % Sales growth in Germany reflects strong order intake in 2013 103.8 99.8 Several long-term projects delivered 5.2 % 8.2 % 50.0 (1.3) % 47.5 38.2 41.3 36.5 36.1 Germany Europe (excl. Germany) Am

  10. Slide 10: Upward trend in EBIT

    II. Finance Upward trend in EBIT EBIT Q1 - Q3 2014 EBIT AND EBIT-MARGIN Jan. - Sep. (in million €) (in %) 7.5 19.3 8.6 % 13.0 5.7 % 3.8 1.8 2013 2014 2013 2014 Q1 Q2 Q3 EBIT EBIT-margin EBIT IMPACTED BY INVESTMENT PROGRAM AND TAKEOVER ATTEMPT  Strong EBIT growth in Q3 thanks to stronger top line de

  11. Slide 11: Cash Flow Reflects Investments for Growth

    II. Finance Cash Flow Reflects Investments for Growth Cash Flow in million € Q1-3 2014 Q1-3 2013 CHANGES IN NET WORKING CAPITAL (21.2) (11.1) CAPEX (13.5) (15.4) FREE CASH FLOW (20.6) (3.0) FINANCE CASH FLOW 10.0 7.2 FINANCIAL FUNDS AT THE END OF THE PERIOD 15.1 20.8 MAIN FACTORS IMPACTING FINANCIAL

  12. Slide 12: Balance Sheet – Equity Impacted by Pension Obligations

    II. Finance Balance Sheet – Equity Impacted by Pension Obligations Financial Structure as of Sep. 2014 Equity Ratio (in million €) 37.1 % 278.5 278.5 28.1 % short-term 93.2 liabilities short-term 156.9 assets Dez. 31, 2013 Sep. 30, 2014 long-term 106.9 liabilities EQUITY IMPACTED BY 2 FACTORS  Buyb

  13. Slide 13: Case Study: Global Network Supports Global Sales Activities

    II. Finance Case Study: Global Network Supports Global Sales Activities R. STAHL’S INTERNATIONAL PRESENCE CONVINCES CUSTOMERS  R. STAHL was awarded a prestigious order for an Australian liquefied natural gas project; with its Australian subsidiary, R. STAHL is close to the customer site  General c

  14. Slide 14: R. STAHL Fully Aligned towards Profitable Growth

    III. Outlook R. STAHL Fully Aligned towards Profitable Growth 1. INNOVATION AND TECHNOLOGY  Strong R&D capabilities  Promising product pipeline of innovative solutions 2. MARKET LEADERSHIP  Nr. 1 in systems business  Nr. 2 in explosion protection 3. INTERNATIONAL FOOTPRINT IN ALL GROWTH MARKETS

  15. Slide 15: Outlook: Order Intake 2014

    III. Outlook Outlook: Order Intake 2014  HIGH ORDER INTAKE  Ongoing growth in Asia/Pacific and the U.S.  Faster delivery times out of production facilities convince customers and thus lead to higher order intake  STRONG ORDER PIPELINE  Big projects in quotation phase ORDER INTAKE (in million €)

  16. Slide 16: Outlook: Sales 2014

    III. Outlook Outlook: Sales 2014  SALES FOLLOW HIGH ORDER INTAKE ORDER INTAKE AND SALES  Long-term orders to be delivered (in million €)  INCREASED ORDER BACKLOG 252.8  Order backlog increased from € 74.1 million in Sep 2013 to € 88.6 million in Sep 2014 232.2 226.0 227.1  HIGH BOOK-TO-BILL RAT

  17. Slide 17: Outlook: Earnings 2014

    III. Outlook Outlook: Earnings 2014  SALES GROWTH TO DRIVE FIX COST DEGRESSION  Strong order intake will drive capacity utilization  Increasing sales will compensate upfront costs related to expansion program  NEW PRODUCTS INTRODUCED TO THE MARKET  Innovative LED lighting portfolio with good ma

  18. Slide 18: Mid-term Expectations – Sales and Profitability Increase

    III. Outlook Mid-term Expectations – Sales and Profitability Increase SALES AND EBIT-MARGIN 2013–2016E 380 - 390 315 - 325 304 11 % - 12 % 8.2 % 6%-7% 2013 2014E 2016E Sales Umsatz EBIT Margin EBIT-Marge 18

  19. Slide 19: Growth Drivers

    III. Outlook Growth Drivers  FOCUS ON DYNAMIC CUSTOMER INDUSTRIES  Good customer dynamics in chemical industry  Strong order pipeline in the oil & gas markets  High demand for specialist ships (Floating Production Storage and Offloading Units)  STRONG PRESENCE IN REGIONAL GROWTH MARKETS  Stron

  20. Slide 20: Appendices

    Appendices i. Business Model ii. Market & Competition iii. Strategy iv. Share Data

  21. Slide 21: Explosion Protection – Definition

    i. Business Model Explosion Protection – Definition  HAZARDOUS AREA  During production and processing as well as during transport of substances Integrated in the chemical industry, in oil and gas production, mining, etc., gases, explosion protection vapours, mists or dusts develop 1 Prevent the 

  22. Slide 22: Extensive Range for Diversified Markets

    i. Business Model Extensive Range for Diversified Markets EXPLOSION PROTECTION FUNCTIONS SECTORS Switching/Distributing  Oil and gas Installing  Chemicals  Pharmaceuticals Operating/Monitoring  Shipbuilding Lighting  Others Signalling/Alarming Automating EXPLOSIVES CONTINENTS  Gases  Europe 

  23. Slide 23: Customer Proximity – Around the World

    i. Business Model Customer Proximity – Around the World  Subsidiaries • Agencies  With our global manufacturing network and sales structures – subsidiaries in 24 countries, 60 agencies world-wide, sales in 92 countries – we can quickly solve customer problems on site 23

  24. Slide 24: Quality and Technological Leader

    i. Business Model Quality and Technological Leader  ONLY SUPPLIER to offer all explosion protection types with ability to combine them in systems solutions  ACTIVE PARTNER in the drafting of valid explosion protection standards in cooperation with national and international bodies  BASIC RESEARCH

  25. Slide 25: Unique Offering – from Standard Products to Complex Solutions

    I. Executive Summary Unique Offering – from Standard Products to Complex Solutions COMPLEX SOLUTIONS Bulk projects BULK PROJECTS POWER DISTRIBUTION AUTOMATION PANELS STANDARD PRODUCTS (INDIVIDUAL ORDER OR BULK ORDER) 25

  26. Slide 26: Reference Example System Solution

    I. Executive Summary Reference Example System Solution  PROJECT ASIA GAS PIPELINE FROM UZBEKISTAN TO CHINA 1,818 km gas pipeline, fitted with 130 automatic ball valves for flow regulation  CHALLENGE „Off-grid“ energy supply as a complete package in a hazardous area: The stations are installed in r

  27. Slide 27: Global Leader in a Fragmented Market

    ii. Market & Competition Global Leader in a Fragmented Market  LARGEST PRODUCT PORTFOLIO worldwide  GLOBAL MARKET LEADER in complex integrated systems solutions  NUMBER 2 in the growing IEC global market Market volume: € 1.44 billion* Cooper Crouse Hinds 24 % R. STAHL 14 % EGS 8% Pepperl & Fuchs

  28. Slide 28: Competition – Market Entry Barriers

    ii. Market & Competition Competition – Market Entry Barriers GROWING COMPETITION in the component business due to aggressively priced suppliers from emerging regions However, there are substantial market entry barriers:  INTERNATIONAL STANDARDS/REGULATIONS with strict requirements regarding product

  29. Slide 29: USPs of R. STAHL

    ii. Market & Competition USPs of R. STAHL  NO. 1 WORLD-WIDE – MARKET LEADER in fragmented systems business  INTERNATIONAL ORGANIZATIONAL STRUCTURE R. STAHL offers its global customers know-how »Made in Germany« tailored to local needs – across the entire value chain  WORLD’S LARGEST PRODUCT PORTF

  30. Slide 30: Attractive Customer Structure Minimizes Risks

    ii. Market & Competition Attractive Customer Structure Minimizes Risks  Diversification according to industries prevents dependency on cyclical fluctuations of individual sectors SEGMENT SHARE OF TREND EXPECT- SALES BREAKDOWN 2006 VS. 2013 SALES LONG-TERM ATIONS BY CUSTOMER INDUSTRY (2013) FOR 2014

  31. Slide 31: Regionally Balanced Business

    ii. Market & Competition Regionally Balanced Business  Geographic diversification reduces dependency on cyclical fluctuations of individual regions  Share of sales abroad approx. 80 % SEGMENT MARKET SHARE TREND EXPECT- SALES BREAKDOWN 2006 VS. 2013 VOLUME OF SALES LONG- ATIONS BY REGION IN (2013)

  32. Slide 32: Growth Abroad – Tapping New Markets

    iii. Strategy Growth Abroad – Tapping New Markets  SOUTH AMERICA solutions to tap market from base in Brazil  ASIA expand market share via new factory in India  USA new production facility with higher capacity  FOREIGN SHARE to be increased from 78 % to 83 % by 2015 Attractive target markets Mar

  33. Slide 33: Expansion of International Manufacturing Capacities

    iii. Strategy Expansion of International Manufacturing Capacities Production Halls for Systems Production Site, Oslo Business, Hengelo R&D Center, Waldenburg Development and Production Center, Cologne Production Site, Houston Production Site, Chennai  Reduced delivery times  Expansion of local eng

  34. Slide 34: Investment in Future Growth and Technological Leadership

    iii. Strategy Investment in Future Growth and Technological Leadership CAPEX / SALES RATIO DEVELOPMENT 2005 - 2013 (in %) 11 % 6% 6% 4% 3% 3% 3% 4% Mid-term average*: 4 % 2% 2005 2006 2007 2008 2009 2010 2011 2012 2013 * Adjusted by effects from financial crisis in 2009 INCREASED CAPEX / SALES RATIO

  35. Slide 35: Share

    iv. Share Data Share Share info Market segment Regulated Market/Prime Standard Number 6,440,000 registered shares WKN A1PHBB ISIN DE000A1PHBB5 Ticker RSL2.DE (Reuters), RSL2 (Bloomberg) Shareholders 39 % free float; 51 % founder families; 10% treasury stock 35

  36. Slide 36: Disclaimer

    Disclaimer Disclaimer  This presentation was prepared by R. STAHL AG and is solely for information purposes. It may not be reproduced, distributed or published without the prior consent of R. STAHL AG. This presentation contains forward-looking statements. Such forward-looking statements are based

  37. Slide 37: Contact

    Contact BERND MARX, CFO NATHALIE DIRIAN, INVESTOR RELATIONS Tel.: +49 7942 943 1271 Tel.: +49 7942 943 1395 Fax: +49 7942 943 401271 Fax: +49 7942 943 401395 email: investornews@stahl.de email: investornews@stahl.de

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