Interpump Group S.p.a. · MIL:IP
Interpump — STAR Conference 2006
33 slides from Interpump's conference presentation, Sep 27, 2006
Slide 1: STAR Conference 2006
INTERPUMP GROUP STAR CONFERENCE 2006 London, September 27th and 28th 2006
Slide 2: 2006 Financial Results (First Half)
2006 Financial Results (First Half)
Slide 3: First Half 2006 Results
First Half 2006 Results As far as continuing operations and Hammelmann are concerned, sales and margins grew substantially in the first half 2006 Pro -forma Pro-forma Pro -forma Pro-forma (euro/million) (euro/million) 30/06/06 30/06/06 30/06/05 30/06/05 GROWTH GROWTH Sales* 196.5 176.0 +11.6% +19.5%
Slide 4: Interpump Group Evolution
Interpump Group Evolution • Both ROCE and ROE increased substantially in 2005 • Since listing (1996) IPG maintained a very high profitability • no dilution, though growth between 1996 and 2004 was obtained for two thirds through acquisitions ROCE* ROE* (Twelve months) (Twelve months) % 35 % 35 30 RO
Slide 5: Interpump Group Evolution
Interpump Group Evolution ROCE and ROE in the first six months* % % 19 ROCE 19 ROE Average Average 17 17 15 15 13 13 11 11 9 9 7 7 5 5 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 % * 2004, 2005 and 2006 are prepared in accordance with International Financi
Slide 6: Cash Generation
CASH GENERATION IPG has returned substantial amounts of cash to shareholders (euro/million) (euro/million) (1.1.97 (1.1.97 –– 30.06.06) 30.06.06) Operating cash flow 394 Capital expenditures (157) Net cash flow before acquisitions and dividends 237 Dividends (191) (230) Buy back (39) Sub-total 7 Acq
Slide 7: Breakdown of Sales by Sector-Geography 1H 2006
Breakdown of Sales by Sector-Geography 1H 2006 Consolidatedsales Consolidated sales1H 1H2006 2006euro euro196 196million million Total consolidated sales Hydraulic Sector (€/million 196) Rest of (€/million 91) Rest of the World Italy the World Italy 14% 22% 9% 25% Pacific Pacific Rest of Area Area R
Slide 8: 2006 First Half Results by Sector
2006 First Half Results by Sector (euro/million) Sales EBITDA Sectors 2005* 2006 Growth 2005* 2006 % % Hydraulic 77.4 91.4 +18.1% 16.8 21.7% 20.7 22.6% Industrial High pressure pumps 38.4 41.3 + 7.4% 13.9** 36.1% 13.4 32.5% Hammelmann 25.6 31.0 +21.2% 6.6 25.9% 9.9 31.9% Others 13.1 10.1 - 29.0% 0.3
Slide 9: IPG Today: Company Profile
IPG TODAY Company Profile 7
Slide 10: IPG Today
IPG TODAY • Today, IPG is an industrial group active in the mechanical component industry. • Two are the major market niches in which IPG is present: • high pressure plunger pumps - worldwide leader, with about 50% market share in the core part of the business - leading manufacturer (Hammelmann) in
Slide 11: History of Interpump Group
History of Interpump Group 1977 – Foundation of Interpump, manufacturer of high pressure plunger pumps (HPPP) • new conception • technological breakthrough early 80’s – Interpump becomes world leader in HPPP’s • high profitability / high cash generation end 80’s – First acquisitions • components (el
Slide 12: Hammelmann Acquisition
Hammelmann Acquisition • Hammelmann Group is one of the top producers in the world of very high pressure plunger pumps and high pressure systems with strong image and brand name. • Hammelmann Maschinenfabrik GmbH has subsidiaries in U.S.A., China, Australia and Spain. • Total acquisition price: 91.5
Slide 13: Net Sales Emerging Markets
Net Sales Emerging Markets (First half *) (euro/million) 3,0 +109% (Euro/million) 2,0 2,8 +156% '30/06/05 2,3 '30/06/06 +86% 1,0 1,4 0,9 1,3 0,7 0,0 China India Brasil *With Hammelmann six months, without Cleaning Sector 11
Slide 14: Future Growth
FUTURE GROWTH Objective • By 2010, total sales of the group should reach € 650 million (+14% per year) With no dilution of ROCE Organic Growth • Market growth in existing mature markets: +5% per year on average • Extra growth in fast developing markets (China, India, Brazil, Eastern Europe) : an add
Slide 15: The Future
THE FUTURE • Free cash flow uses a) acquisitions b) dividends + buyback • Overall objectives a) total sales in 2010 equal or above 650 m€ b) maintain high profitability ROCE = 20% ± 2% ROE = 19% ± 2% c) average total yearly return for shareholders: at least double digit 13
Slide 16: Growing without Forgetting Shareholders' Friendliness
GROWING… without Forgetting Shareholders’ Friendliness • Since the listing (December 1996) until August 25, 2006* total return to shareholders’ (stock price increase + dividends + buy-back) has been higher than 14.5% per year over a period of more than nine consecutive years. *(share price € 6.79) 1
Slide 17: Interpump Group Exhibits
INTERPUMP GROUP Exhibits (Euro/million) 15
Slide 18: Net Sales (Twelve Months)
Net Sales (Twelve Months*) (euro/million) 600 532 493 502 500 452** 426 412 (Euro/million) 400 319 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures ar
Slide 19: Net Sales (Twelve Months) Pro-forma
Net Sales (Twelve Months*) (euro/million) 600 493 502 500 426 412 400 (Euro/million) 319 343** 320** 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Pro-forma Pro-forma *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1
Slide 20: Breakdown of Sales by Sector-Geography 2005
Breakdown of Sales by Sector-Geography 2005* Consolidatedsales Consolidated sales2005 2005euro euro332 332million million Total consolidated sales Hydraulic Sector (€/million 332) Rest of (€/million 155) Rest of the World the World Italy 12% Italy 7% 24% 26% Pacific Pacific Area Area 5% 3% Rest of E
Slide 21: EBITDA (Twelve Months)
EBITDA (Twelve Months*) (euro/million) 90 85 81 83** 80 80 77 75 70 65 61 (Euro/million) 60 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared
Slide 22: EBITDA (Twelve Months) Pro-forma
EBITDA (Twelve Months*) (euro/million) 90 85 80 81 80 75 71** 70 65 61 59** 60 (Euro/million) 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Pro-forma Pro-forma *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 200
Slide 23: Cash Flow (Twelve Months)
Cash Flow (Twelve Months*) (euro/million) 70 60 56** 56 (Euro/million) 49 50 48 47 45 43 40 38 31 30 23 20 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared in ac
Slide 24: Synthesis of Results
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ million) million) 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 531.7 451.5 EBITDA 40.7 46.8 61.1 64.9 79.8 81.4 84.5 75.2 77.3 83.3
Slide 25: Synthesis of Results
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma million) million) 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004** 2004** 2005** 2005** Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 319.6 343.2 EB
Slide 26: Net Sales (First Six Months)
Net Sales (First Six Months*) (euro/million) 350 309 300 284 278 270 250 231 224 (Euro/million) 196 200 166 150 134 118 112 100 50 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 ** *** * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to
Slide 27: Net Sales (First Six Months) Pro-forma
Net Sales (First Six Months*) (euro/million) 350 309 300 278 270 250 231 224 (Euro/million) 196** 200 176** 166 150 134 118 112 100 50 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Pro-forma Pro-forma * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IF
Slide 28: EBITDA (First Six Months)
EBITDA (First Six Months*) (euro/million) 60 49 50 48 49 50 46 44 43 40 (Euro/million) 36 30 30 25 25 20 10 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 ** *** * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepa
Slide 29: EBITDA (First Six Months) Pro-forma
EBITDA (First Six Months*) (euro/million) 60 49 49 50 48 46 44** 43 40 38** (Euro/million) 36 30 30 25 25 20 10 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 Pro-forma Pro-forma * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003
Slide 30: Cash Flow (First Six Months)
Cash Flow (First Six Months*) (euro/million) 35 35 35 30 29 25 26 25 23 20 (Euro/million) 18 14 15 12 5 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 ** *** * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared
Slide 31: Synthesis of Results
Synthesis of Results (First Six Months*) (Euro/mln) 11996 (Euro/mln) 996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** 2006*** 2006*** Net sales 117.7 111.8 134.1 165.9 224.1 230.9 269.6 277.8 309.4 284.3 196.5 EBITDA 25.4 24.5 30.4 35.8 46.2 48.3 49.0
Slide 32: Synthesis of Results
Synthesis of Results (First Six Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma million) million) 11996 996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** 2006** 2006** Net sales 117.7 111.8 134.1 165.9 224.1 230.9 269.6 277.8 3
Slide 33: Sale of Cleaning Sector
Sale of Cleaning Sector • Disposal of Cleaning Sector • One of top four world major competitors and the most profitable, but • less profitable than other IPG businesses and • more vulnerable • EV = € 220 million Sales 2004 = € 292.2 million EBITDA 2004 = € 30.7 million (net of minorities € 29.3 mill