Norma Group Se · XETR:NOEJ
Norma — FY2012 Earnings Presentation
47 slides from Norma's earnings presentation, Mar 27, 2013
Slide 1: NORMA Group Full Year Results 2012
NORMA Group Full Year Results 2012 Investors’ & Analysts’ Conference Frankfurt, 27 March 2013 Customer Value through Innovation
Slide 2: Highlights 2012 - Strategy
Highlights 2012 - Strategy Acquisitions 5 acquisitions in Switzerland, Italy, Malaysia, Netherlands and Australia APAC Opening of new offices in Vietnam, Indonesia and the Philippines Greenfield New production facility in India to meet increased sales demand APAC NORMA NORMACONNECT V profile clamp p
Slide 3: Highlights 2012 – Financials (I)
Highlights 2012 – Financials (I) Record sales of EUR 604.6 million (2011: EUR 581.4 million) Sales Growth of 4.0% including acquisitions of EUR 14.3 million Adjusted EBITA Record adjusted EBITA of EUR 105.4 million (2011: EUR 102.7 million) Margin Sustainable high-level EBITA margin of 17.4% (2011:
Slide 4: Highlights 2012 – Financials (II)
Highlights 2012 – Financials (II) Net debt down to EUR 174.2 million from EUR 176.7 million in 2011* despite payment Net Debt of EUR 50 million for dividend and acquisitions Cash Flow Excellent adjusted net operating cash flow of EUR 81.0 million (2011: EUR 66.8 million) Dividend proposal to the AGM
Slide 5: New Acquisitions Lead to Sales Run Rate of EUR 625m
New Acquisitions Lead to Sales Run Rate of EUR 625* m Sales consolidation effects 2012 / 2013 in EUR million 2012 2013 Total Connectors Verbindungstechnik AG Switzerland 11 4 15 Nordic Metalblok S.r.l. Italy 3 3 6 Chien Jin Plastic Sdn. Bhd. Malaysia 0 7 7 Groen Bevestigingsmaterialen Netherlands 0
Slide 6: 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 (P, D) Sweden (P, D) Switzerland (P, D) Turkey (D) United Kingdom (P, D) Americas Brazil D) Mexico (P) USA (P, D) Asia-Pacific Australia (D) China (P,
Slide 7: Sales by regional reporting segments
Sales by regional reporting segments Reporting segment Asia-Pacific recorded direct sales of 7% in 2012 or 10% including all NORMA exports into the region (sales by destination) Excellent double-digit growth in Americas and Asia-Pacific Weaker European environment is outperformed by higher con
Slide 8: Historic Growth Track Record
Historic Growth Track Record Historic revenue development (1997 – 2012) EUR million 605 600 581 490 500 458 385 400 1 330 277 300 229 242 198 207 200 174 182 138 150 121 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 HGB IFRS 1997 to 2012: 16 years of growth 8
Slide 9: Material consumption and OPEX improved
Material consumption and OPEX improved Improved material costs and OPEX compensated higher personnel expenses and lead to sustainable margin Higher personnel costs also due to expansion of Asia/Pacific business Material Costs (in EUR million) Personnel Expenses* (in EUR million) 300 45.1% 50% of
Slide 10: No Operational Adjustments in 2012
No Operational Adjustments in 2012 No operational adjustments despite recent acquisitions in Switzerland, Italy, Malaysia and Netherlands Ongoing PPA adjustments at EUR 0,16 on EPS level in EUR million Reported PPA adjustments adjusted Sales 604.6 0 604.6 EBITDA 120.8 No operational adjustments
Slide 11: Overview on Adjustments in prior years
Overview on Adjustments in prior years Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011) Only minor PPA adjustments in 2012 on EBITA level in EUR million 2010 2011 2012 Reported EBITA 64.9 84.7 105.2 + Restructuring Costs 1.3 1.8 0 + Non-recurring/non-period-re
Slide 12: Sustainable Margin Development
Sustainable Margin Development 17.4% 17.7% 17.4% EUR million 35 18.9 20% 18.2 18.3 18.0 18.3 18,1 17.4 17.5 17.2 30 16.0 16.2 15.9 29.2 28.4 28.6 15% 25 25.5 26.2 25.7 22.8 22.7 22.6 21.9 20 20.6 10% 19.3 15 10 5% 5 0 0% Q1/10 Q210 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 EBITA EB
Slide 13: Profit & Loss (adjusted & reported)
Profit & Loss (adjusted & reported) in EUR million 2012 2011 reported adjusted reported adjusted Sales 604.6 604.6 581.4 581.4 Gross Profit 344.4 344.4 322.6 322.6 EBITDA 120.8 120.8 100.2 117.0 EBITA 105.2 105.4 84.7 102.7 in % 17.4 17.4 14.6% 17.7% EBIT 94.4 101.9 76.6 99.7 in % 15.6 16.9 13.2% 17
Slide 14: EPS – Dividend Proposal EUR 0.65 per share
EPS – Dividend Proposal EUR 0.65 per share Dividend proposal to the shareholders at the AGM on 22 May 2013: EUR 0.65 per share = 3.1% dividend yield* Pay-out of EUR 20.7 million for 31,862,400 shares equals 33.5% of adjusted net income of EUR 61.8 million pro forma EPS Adjusted EPS Reported EPS
Slide 15: Slight temporary increase in TWC through Acquisitions
Slight temporary increase in TWC through Acquisitions in Distribution Services. Optimization ongoing in 2013 18.5% at sales run EUR million rate of EUR 625 m 200 19.1% 20% 18.1% 18.3% 150 15% 81 79 100 70 14.3% 13.9% 13.1% 10% 50 65 13.2% 67 11.5% 74 12.3% 5% 0 -46 -9.4%* -41 -7.1% -38 -6.3% -50 -2
Slide 16: Development of Equity: Strong Equity Ratio after Capital Increase
Development of Equity: Strong Equity Ratio after Capital Increase 13.5% 39.5% 41.7% EUR million ** 300 -19 57 -6 * -5 36 200 147 288 256 100 78 0 Equity 2010 Capital Increase Profit Consolidation* Equity 2011 Profit* Dividend Others** Equity 2012 Balance 579 649 692 Sheet Total * Acquisition of 100%
Slide 17: Equity and Debt Ratios improved
Equity and Debt Ratios improved Equity and debt ratios improved despite ~ EUR 50 million dividend payment and acquisition because of strong earnings and cash generation. Net Debt (in EUR million) Equity Ratios 31.12.2012 31.12.2011 177* 174* 300 Equity Ratio (Equity / 41.7% 39.5% Balance Sheet Tot
Slide 18: Solid Balance Sheeet
Solid Balance Sheeet 692 692 EUR million 800 600 non-current assets 64.4% 288 total equity 41.7% 445 400 269 200 175 current assets 25.2% non-current liabilities 38.8% 135 72 liquid assets 10.4% current liabilities 19.5% 0 Assets Liabilities 18
Slide 19: Very Strong Operating Net Cash Flow in 2012
Very Strong Operating Net Cash Flow in 2012 Operating net cash flow in EUR million 2011 2012 Variance EBITDA* 117.0 120.8 3.3% Δ ± Working capital -19.5 -9.8 -50.1% Operating net cash flow before investments from 97.5 111.0 13.9% operating business Δ ± Investments from operating business -30.7 -30.0
Slide 20: Cash Flow Statement
Cash Flow Statement Adjusted operating net cash flow strongly improved by 190 BP to 13.4% of sales (2011: 11.5%) 11.5% of sales 13.4% of sales 100 80 0 10 4 60 40 81 67 20 0 adjusted operating ∆ adjusted EBITDA ∆ Working Capital ∆ investments from operating net cashflow 2011 operating business net
Slide 21: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® ~ 53% of sales Emission Next global level of emission reduction ramps up in 2013 reduction with EURO 6 in Europe NORMACLAMP TORRO Weight Ongoing trend in many industri
Slide 22: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission Regulations Drive Increased Joining Technology Content Today Europe EURO 5 EURO 6 EURO 3 EURO 4 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J. '19 Japan JPN '02 JPN '05 JPN '98 Brazil EURO 3 EURO 5 EURO 6 EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 Russia EURO 1 EURO 2 EURO
Slide 23: 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 24: Outlook 2013 - Strategy
Outlook 2013 - Strategy 1 Continue international expansion of sales network and production footprint 2 Continue to explore business opportunities in APAC 3 Increase China capacity to enable expansion 4 Expand and explore opportunities in Brazil 5 Increase business opportunities in new industries 6 C
Slide 25: Outlook 2013 – Macroeconomic Forecast – GDP Growth
Outlook 2013 – Macroeconomic Forecast – GDP Growth in % 2012 2013e 2014e USA* +2.3 +2.0 +3.0 China* +7.8 +8.2 +8.5 Euro-zone* -0.5 -0.2 +1.0 Germany* +0.9 +0.6 +1.4 VDMA (German Engineering Federation) expects production increase of 2% in 2013. Euroconstruct expects further reduction by 1.5% for
Slide 26: Outlook 2013 – Company Guidance
Outlook 2013 – Company Guidance Sales Moderate growth, plus approx. EUR 20 million from recent acquisitions EBITA margin On the level of the three previous years, more than 17% Investments in Approx. 4% of EJT sales R&D Material ratio Approx. on the level of the previous year Financial result Approx
Slide 27: Thank you for your attention
NORMA Group Full Year Results 2012 Investors’ & Analysts’ Conference Frankfurt, 27 March 2013 Thank you for your attention Customer Value through Innovation
Slide 28: Shareholder Structure
Shareholder Structure Identified institutional Shareholders 100% 75% 27% 50% 25% 27% 25% 21% 0% pre IPO post IPO Dec. 2012 Today Dec. 2011 Germany United Kingdom USA Rest of World 3i MABA CYPRUS Ltd. old & existing management free float Free float per Jan. 2013 includes: Ameriprise, USA incl. Thread
Slide 29: 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 30: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across end-markets Sales €m End-market Additional growth 605 (year) 600 (2013-18 CAGR) production unit for Joining growth technology market ~25% 500 Fluid Passenger vehicles +5% add. 2-4% 400 Commercial
Slide 31: History of Excellence
History of Excellence Acquisition MDAX listing 2013 DavyDick & Co, Australia Acquisition Connectors Acquisition Nordic Acquisition Chien Acquisition Groen 2012 Verbindungstechnik, Switzerland Metalblok, Italy Jin Plastic, Malaysia Bevestigingsmaterialen, Netherlands 2011 Akquisition Akquisition Open
Slide 32: 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 33: 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 34: 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) ~71%
Slide 35: NORMA Group Provides Mission-Critical Products and Solutions
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers 35
Slide 36: Acquisition of Connectors Verbindungstechnik AG
Acquisition of Connectors Verbindungstechnik AG M&A Acquisiton 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 37: Acquisition of Nordic Metalblok S.r.l.
Acquisition of Nordic Metalblok S.r.l. M&A Acquisiton 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 secto
Slide 38: Acquisition of Chien Jin Plastic Sdn. Bhd.
Acquisition of Chien Jin Plastic Sdn. Bhd. Acquisiton 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. A
Slide 39: Increase in Ownership in Groen Bevestigingsmaterialen BV
Increase in Ownership in Groen Bevestigingsmaterialen BV M&A 60% increase in ownership to 90% in Groen Bevevestigingsmaterialen B.V. in December 2012 Wholesale supplier of hose and pipe clamps and coupling to the industrial, construction, agriculture, Business plumbing, hardware and automotive secto
Slide 40: Akquisition of DavyDick & Co. Pty. Ltd.
Akquisition of DavyDick & Co. Pty. Ltd. M&A Akquisition 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 Mo
Slide 41: Record sales of EUR 604.6 million including acquisitions
Record sales of EUR 604.6 million including acquisitions and positive currency effects Weaker European economic environment visible in 2nd half year Globalisation strategy pays off with positive currency effects Sales Development in EUR million Sales 2011 2012 Change Change in % thereof thereof
Slide 42: 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 43: Continuation of Growth Track and Sustainable Margin into 2012
Continuation of Growth Track and Sustainable Margin into 2012 Revenue (in EUR million) Gross profit (in EUR million) 400 54.9% 55.3% 56.0% 55.5% 57.0% 60% of sales 581 605 600 458 490 300 450 344 40% 330 323 200 300 275 251 182 20% 150 100 0 0 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Per
Slide 44: Solid development of Balance Sheet
Solid development of Balance Sheet (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets Total equity 288.3 256.0 436.8 401.0 / Property, plant & equipment N
Slide 45: 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) 200 18.5% 18.0% 18.1% 18.3% 18.5%* 20% of revenues 80 150 100 70 81 79 49 45 10% 50 74 54 45 65 67 60 0 -19 -30 -46 -41 -38 -50 0% 2008 2009 2010 2011 2012 40 81 Invento
Slide 46: Event Date
Event Date Publication of Q1 Results 2013 07 May 2013 Annual General Meeting 22 May 2013 Publication of Q2 Results 2013 07 August 2013 Publication of Q3 Results 2013 06 November 2013 Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Email: And
Slide 47: 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 “