Slide 1: NORMA Group Half Year Results 2011
NORMA Group Half Year Results 2011 Werner Deggim, Chief Executive Officer NORMA Group AG Dr Othmar Belker, Dr. Belker Chief Financial Officer Maintal, 10 August 2011 Andreas Troesch, Vice President Investor Relations 1
Slide 2: 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 “
Slide 3: Highlights of Q2/2011
Highlights of Q2/2011 Sales € 145.5 million including organic growth of 13.7% and an acquisitive growth of 7.5% (yoy) Adjusted EBITA € 25.5 million or 17.5% of sales E it Ratio Equity R ti Strong equity ratio at 37.1% 37 1% following the IPO capital increase Successful refinancing and syndicate of b
Slide 4: Excellent Growth in the First Half of 2011: Record Sales with € 296 million
Excellent Growth in the First Half of 2011: Record Sales with € 296 million Sales Development in € million Growth Development Sales 2011 2010 Change Change in % Organic Acquisitive Currency Growth Growth Effects H1 295.9 230.5 + 65.4 + 28.3% + 19.9 % + 9.7% - 1.3% Q1 150.3 106.1 + 44.2 + 41.7% + 27.
Slide 5: Sales Breakdown
Sales Breakdown H1/2011 (H1/2010) sales breakdown H1/2011 (H1/2010) sales breakdown FY2010 sales breakdown by reporting segments* by way-to-market by end-markets ~3% ~3% ~3% 28% ~7% (22%) 30% (36%) ~25% 5% (6%) 70% (64%) ~26% 67% ~33% (72%) Distributors Distribution Services Industrial suppliers Pas
Slide 6: Positive Sales Development Across All Reporting Segments
Positive Sales Development Across All Reporting Segments in € million H1/2011 H1/2010 Change in EUR Change in % Sales 295.9 230.5 + 65.4 + 28.3 % EMEA 194.2 165.0 + 29.2 + 17.6 % + 66.2 % AMERICAS 85.6 51.5 + 34.1 (including acquisitions) APAC 16.1 14.0 + 2.1 + 15.2 % in € million H1/2011 H1/2010 Ch
Slide 7: H1/2011 Results and Costs on Target
H1/2011 Results and Costs on Target Cost ratios improved by Global Excellence program and sales growth OPEX temporarily affected by setting up new functions in context of listing Adjusted EBITA stable - despite headwind from EURO and material costs Material Costs Adjusted Personnel Expenses €m
Slide 8: Overview on Adjustments
Overview on Adjustments in € million Q1/2011 Q2/2011 H1/2011 FY 2010 Reported EBITA 12.1 23.2 35.3 64.9 + Restructuring Costs 0.7 - 0.7 1.3 + Non-recurring/non-period-related items* 14.6 2.0 16.6 15.5 + Other group and normalized items 0.2 - 0.2 0.7 + PPA depreciation 0.8 0.3 1.1 3.0 Adjusted EBITA
Slide 9: IPO Capital Increase Strengthened the Balance Sheet
IPO Capital Increase Strengthened the Balance Sheet IPO Capital Increase Total Volume € 147 million from Capital Increase from 7 million new shares Repayment of € 54 million mezzanine debt, € 12 million shareholder loan and further Use of Proceeds reduction of existing debt to strengthen NORMA Group
Slide 10: Positive Effects of the IPO Visible on Balance Sheet
Positive Effects of the IPO Visible on Balance Sheet (all amounts in € million) 30 June 2011 31 Dec 2010 (all amounts in € million) 30 June 2011 31 Dec 2010 Assets Equity and liabilities Non-current assets Equity Goodwill 216.4 221.7 p Subscribed capital 31.9 0.1 Other intangible assets 71.1 79.3 Ca
Slide 11: Significant Adjusted Operating Net Cash Flow Improvement
Significant Adjusted Operating Net Cash Flow Improvement Adjusted operating net cash flow in € million H1/2011 H1/2010 FY 2010 Adjusted EBITDA* 60.6 48.5 99.2 Δ ± Working capital - 32.4 - 37.7 - 26.4 Adjusted operating net cash flow before investments from operating business 28.2 10.8 72.8 Δ ± Inves
Slide 12: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® Emission reduction Product availability / Leakage reduction NORMACONNECT® local p presence Assembly time reduction d ti / ease off Weight reduction red ction assembly
Slide 13: Guidance for FY2011 Increased
Guidance for FY2011 Increased FY 2010 Old Guidance 2011 New Guidance 2011 Organic growth of 10% Organic growth of 10% - 12% Sales € 490 million + € 20 million from acquisitions + € 20 million from acquisitions (€ ~560 million) (€ ~560 million to € 570 million) Adjusted EBITA Margin 17.4% 17.4% near
Slide 14: Appendix
Appendix 14
Slide 15: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights 1 Market leader in attractive engineering niche markets with strong growth prospects 2 Premium p pricing g through g technology gy and innovation leadership p in mission-critical components p 3 Enhanced stability through broad diversification across products,
Slide 16: NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added Added-Value Value A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers 16
Slide 17: Historic Organic Growth Track Record
Historic Organic Growth Track Record Historic revenue development (1997 – 2010) €m 500 490 458 400 385 330 1 300 277 242 229 198 207 89 200 174 182 138 150 121 100 188 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 HGB IFRS Rasmussen as the predecessor of the NORMA Group has
Slide 18: Significant Growth and Value Creation Opportunity through Synergistic Acquisitions
Significant Growth and Value Creation Opportunity through Synergistic Acquisitions Taken advantage of market fragmentation Focus on operational excellence “Global Excellence” program Continuous focus on optimisation of cost structure 2010 Significant cost savings achieved in 2010, with higher
Slide 19: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect2 Excellent growth outlook across end-markets Sales €m End-market Joining (year) 4901 (2010-15 CAGR) production unit technology 500 ~3% Other growth market growth ~26% Fluid 400 g vehicles Passenger +6% % 9% 300 Commercial vehicl
Slide 20: Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components
Premium Pricing through Technology and Innovation Leadership in Mission Mission-Critical Critical Components Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value A l off Basis for premium pricing: Example: joining technology Harvester content Ma
Slide 21: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission Regulations Drive Increased Joining Technology Content Today 2015 EURO 5 EURO 6 E Europe EURO 4 EURO 3 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J '19 J. 19 Japan JPN '98 JPN '02 JPN '05 EURO 3 EURO 5 EURO 6 Brazil EURO 2 EURO 1 EURO 4 EURO 5 EURO 6 Russia EURO 1
Slide 22: Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions
Enhanced Stability through Broad Diversification Across Products, Products End-Markets End Markets and Regions Examples of NORMA Group’s key end-markets Construction / infrastructure / Engines Commercial vehicles Passenger vehicles Construction equipment water management Agricultural equipment Shipb
Slide 23: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways Ways-to-Market 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 Ser
Slide 24: NORMA Group Management Team
NORMA Group Management Team Werner Deggim Dr. Othmar Belker Bernd Kleinhens John Stephenson Chief Executive Officer Chief Financial Officer Sales & Business Development Chief Operating Officer 24
Slide 25: Shareholder Structure
Shareholder Structure 3i pplc and funds managed g byy 3i 35.5% Split by FIMANE Ltd investors 56.2% Freefloat F fl t (including (i l di iinstitutional tit ti l iinvestors t andd management) 8.3% Germany 26% UK Free float split by 44% USA regions* regions 5% Rest of the World 25% * Source: Share regis
Slide 26: Continuation of Growth Track after Successful Management of the Economic Downturn in 2009
Continuation of Growth Track after Successful Management of the Economic Downturn in 2009 Revenue Gross profit 600 €m 350 €m 55.3% 60% of sales 54.9% 56.0% 490 300 500 458 275 50% 251 250 400 40% 330 200 182 300 30% 150 200 20% 100 100 10% 50 0 0 0% 2008 2009 2010 2008 2009 2010 Personnel expenses A
Slide 27: Pro-active FCF Management to be Continued
Pro-active Pro active FCF Management to be Continued Operating free cash flow (FCF) Trade working capital €m % off revenues €m 18.5% 18.0% 20% 17.7% 60 150 87 85 59 65 54 45 10% 50 50 50 70 49 45 (19) (30) (48) (50) 0% 40 2008 2009 2010 36 1 33 30 Capex €m % of revenues 20 40 4.6% 4.3% 5% 3.9% 30 4%
Slide 28: Strong Growth and Strict Cost Management Lead to Stable Margin Development
Strong Growth and Strict Cost Management Lead to Stable Margin Development Adjusted1 EBITA and EBITDA in € million H1/2011 percent of revenue H1/2010 percent of revenue Revenue 295.9 100% 230.5 100% Changes in inventories of finished goods and work in progress 1.2 2.6 Raw materials and consumables u
Slide 29: Contact
Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 403-554 Fax: +49 6181 403-1554 Mobile: +49 1520 910 3619 Email: Andreas.Troesch@normagroup.com 29