Sabaf S.p.a. · MIL:SAB
Sabaf — Star Companies Presentation, London, October 2006
15 slides from Sabaf's conference presentation, Oct 27, 2006
Slide 1: Star Companies Presentation
STAR COMPANIES PRESENTATION London 27th - 28th October 2006
Slide 2: Sabaf and the sector – overview First Half 2006
Sabaf and the sector – overview First Half 2006 Sales at € 69.9 mn - up by 17.9% thanks to: • Developments towards new markets and customers – High growth in Turkey, Middle East, North Africa • Improved relations with some consolidated customers • New products – Light alloy valves without FFD – Spec
Slide 3: Hedging on raw materials and currencies
Hedging on raw materials and currencies • The main raw materials the Group utilizes are: - aluminium alloys – 10% of total cost of products - brass (copper and zinc alloy) – 7% of total cost of products - iron/steel – 6% of total cost of products • 2006 expected supply of raw material have been 100%
Slide 4: Income statement
Income statement € x 000 1H06 1H05 var. % FY2005 SALES 69,856 100.0% 59,272 100.0% 17.9% 121,014 100.0% Materials (29,498) -42.2% (22,080) -37.3% (46,722) -38.6% Payroll (12,515) -17.9% (10,407) -17.6% (21,000) -17.4% Change in stock 4,393 6.3% (1,091) -1.8% (235) -0.2% Other operating costs/income
Slide 5: Financial position
Financial position € x 1000 30.06.06 31.12.05 30.06.05 Fixed assets 87,542 85,062 87,582 Net working capital 21,548 25,545 25,518 Financial assets (*) 5,768 2,818 92 Capital Employed 114,858 113,425 113,192 Equity 94,332 90,767 81,641 Reserves for risks/net deferred tax 15,267 13,730 11,765 Net debt
Slide 6: Cash flow statement
Cash flow statement € x 1000 1H06 1H05 FY05 Net profit 8,472 6,906 13,953 Depreciation 5,366 5,335 11,006 Other non-monetary costs/income 1,526 (182 ) 1,796 Change in inventory (4,375 ) 1,023 137 Change in trade receivables (2,151 ) (3,964 ) (4,809 ) Change in trade payables 6,451 441 3,886 Change i
Slide 7: Extraordinary dividend
Extraordinary dividend • Shareholders' meeting called on October 25th to approve the distribution of an extraordinary dividend • € 1 per share to be paid on November 6 • Made possible by strong free cash flow generation during 2006 • Partial re-balance of financial structure to reduce average cost o
Slide 8: Sales by area and customer concentration
Sales by area and customer concentration 1H 06 VS. CAGR Area 1H 06 1H 05 1H 05 FY 05 FY 02 02-05 ITALY 35.724 51.1% 31.275 52.8% + 14.2% 61.344 50.7% 49.930 48.4% + 7.1% W. EUROPE 8.293 11.9% 7.948 13.4% + 4.3% 15.502 12.8% 18.190 17.6% - 5.2% E. EUROPE & TURKEY 12.063 17.3% 11.001 18.6% + 9.7% 25.0
Slide 9: Middle-term strategic lines of development
Middle-term strategic lines of development TURKEY • Turkey might become the first European appliance manufacturer • Sales at € 5.4mn in 1H 06, up 61% • Relationships with Arcelik and Vestel is going on as expected • Sales to new customers are increasing US • The agreement with Whirlpool to supply hi
Slide 10: Light alloy valves
Light alloy valves Brass valves Aluminium alloy valves Product performance progressive flow rate Production process Hot pressing eliminated Sophisticated machining technology Higher process rhythm in high value operations Weight of finished product (g) * 73.2 31.1 Raw material price Jan 04 to Sep 06
Slide 11: Capex 1998-2006e
Capex 1998-2006e 25,000 40% 35% 20,000 30% 25% 15,000 20% € x 000 10,000 15% 10% 5,000 5% 0 0% 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 OSPITALETTO % on sales OSPITALETTO 1 2 FARINGOSI OSPITALETTO 11 3 HINGES
Slide 12: Main investments 2006-2007
Main investments 2006-2007 • Production line for light alloy simple valves – step 2 (high automation) • Production line for light alloy safety valves for cookers • Production line for light alloy safety valves for hobs • Doubling of burner production capacity in Brazil • New plant in Brazil starting
Slide 13: Further growth opportunities
Further growth opportunities The goal of full industrial control over core activities has been reached. Sabaf can now analyse new growth opportunities • In international markets – Sabaf will strongly enhance production capex in Brazil and Mexico – New products under development (two-way valve and du
Slide 14: Disclaimer
Disclaimer Certain information included in this document is forward looking and is subject to important risks and uncertainties that could cause actual results to differ materially. The Company’s business is in the domestic appliance industry, with special reference to the gas cooking sector, and it
Slide 15: Contact
Contact For further information, please contact our Investor Relations Department Gianluca Beschi SABAF S.p.A. Via dei Carpini, 1 25035 Ospitaletto (Brescia) Tel +39.030.6843236 Fax +39.030.6843250 gianluca.beschi@sabaf.it 15
Sabaf — Star Companies Presentation, London, October 2006 on 6ix