Emak S.p.a. · MIL:EM
Emak — FY2002 Earnings Presentation
20 slides from Emak's earnings presentation, Feb 27, 2003
Slide 1: 2002 Company results: Presentation to the Financial Community
2002 Company results Presentation to the Financial Community Milan, 27 February 2003
Slide 2: Contents
Contents Introduction to Emak Emak Group structure Emak share: index performance Turnover breakdown Economic and financial data Market outlook Emak targets Strategic guidelines 2003 - 2005 projections 2
Slide 3: Introduction to Emak
Introduction to Emak Emak is a European leader in the Design, Engineering, Manufacturing, Marketing of outdoor power equipments such as chainsaws, brushcutters, lawnmowers and trimmers 3
Slide 4: Introduction to Emak
Introduction to Emak Core business focused on gardening, landscaping and forestry equipments Euro 147 million of sales in 2002, more than 80% in Europe 2 plants in Italy 5 commercial branches in Europe 120 Distributors in 70 countries 17,000 dealers Brands: Oleo-Mac and Efco for dealer network and D
Slide 5: Introduction to Emak
Introduction to Emak 1998 –2002 yearly sales growth: > 16% Superior economic performance for shareholder value creation: ROE > 15% ROCE > 20% 5
Slide 6: Emak Share: index performance
Emak Share: index performance 140 130 120 EM AK 110 100 M IB STAR 90 M IBTEL 80 70 60 50 14/2/01 14/2/02 14/2/03 Source: Borsa Italiana 6
Slide 7: Emak Group structure
Emak Group structure At 12.31.2002 EMAK SpA C O M AG S rl 9 9 ,4 % S U M IN IS T R O S C O M O T O S A (S p a g n a ) 9 0 % H E M M IN G & W O O D L T D (U K ) 1 0 0 % S AW T E C L T D (U K ) 1 0 0 % K E N S IN T E R N AT IO N AL S A (Be lg io ) 9 9 ,8 % KENS SA (Be lg io ) 8 3 ,2 % P R O T E C N IC
Slide 8: Emak Group as at 12.31.02
TECNOLOGIA PER #L VERDE www.emak.it
Slide 9: Turnover breakdown by geographical area
Turnover breakdown Sales distribution by geographical area Area Year 2002 2001 I taly 36,6 24,9% 35,4 24,1% Europe 84,3 57,3% 83,0 56,6% - Western Europe 64,9 44,1% 68,0 46,3% - Other European 19,4 13,2% 15,0 10,3% Countries North America 7,6 5,2% 10,7 7,3% Rest of the world 18,5 12,6% 17,6 12,0% -
Slide 10: Turnover breakdown by product line
Turnover breakdown Sales distribution by product line Year 2002 2001 Product Brushcutters - Decespugliatori 32,0 21,8% 32,0 21,8% Chainsaws - Motoseghe 30,1 20,5% 31,2 21,3% Lawnmowers - Rasaerba 18,8 12,8% 17,8 12,1% Garden Tractors - Trattorini 13,3 9,0% 14,9 10,2% Others (pumps, blowers, hedge tr
Slide 11: Economic and financial data: Consolidated P&L
Economic and financial data Consolidated P&L Accounts 2002 % 2001 % Turnover 146,98 100% 146,67 100% Ebitda 22,66 15,4% 20,62 14,1% Ebit 16,62 11,3% 14,80 10,1% I ncome before taxes 15,08 10,3% 13,07 8,9% * Taxes (5,94) 4,0% (5,15) 3,5% * Group net profit 9,04 6,2% 8,19 5,6% Million Euro * Estimated
Slide 12: Economic and financial data: Assets and liabilities
Economic and financial data Consolidated assets and liabilities 2002 2001 Net fixed assets 23,54 24,65 Net current assets * 55,05 55,60 Total invested capital 78,59 80,25 Net Equity * 58,96 53,55 Minority interests * 0,51 0,28 Net financial position ( 19,12) (26,42) Debt/ Equity 0,32 0,49 Million Eu
Slide 13: Market Outlook
Market Outlook Europe and USA: demand mostly for replacement products, driven by GDP growth and general market conditions Developing countries: increasing demand. High potentiality in Russia, China and Far East South America: demand influenced by local political and economic crisis (Argentina, Venez
Slide 14: Market Outlook
Market Outlook Other M&A are expected in the future Increasing importance of DIY channel generally everywhere More and more stringent emission regulations in USA and Europe Competition for premium price products by new manufacturers from low cost production countries 14
Slide 15: Emak targets
Emak targets Growth of sales turnover higher than market increase Growth of operative profitability 15
Slide 16: Strategic Guidelines
Strategic Guidelines Strengthening of competitive position through Product innovation: continuous update of range development of clean engines Product cost reduction: value analysis purchasing marketing outsourcing Extensive use of ICT to re-engineer corporate organization and process: Supply Chain
Slide 17: Strategic Guidelines
Strategic Guidelines Strengthening of distribution network Focus on markets directly controlled by Emak - consolidation of leadership position in Italy - increased market shares of Emak subsidiaries in F, D, UK, E, BLX Marketing activities - strengthen Oleo-Mac and Efco brand awareness to increase s
Slide 18: Strategic Guidelines: Investment Policy
Strategic Guidelines Investment Policy 2000/2002 2003/2005 % on Turnover/yearly 5% 6% Breakdown: R&D 16% 23% New Product 24% 42% Production Equipments 22% 15% ICT 8% 10% Buildings 30% 10% 18
Slide 19: 2003 - 2005 Projections
2003 - 2005 Projections TURNOVER EBITDA/TURNOVER 250.000 12,0% 18,0% 17,7% 10,2% 10,7% 17,3% 200.000 10,0% 17,5% 8,1% 8,0% 17,0% 150.000 6,0% 16,5% 16,1% 100.000 4,0% 16,0% 15,4% 50.000 2,0% 15,5% 0 0,0% 15,0% 2002 2003 2004 2005 2002 2003 2004 2005 EBIT/TURNOVER 13,7% 14,0% 13,4% 13,0% 12,2% 12,0%
Slide 20: In collaboration with Borsa Italiana S.p.A. - Divisione STAR
In collaboration with BORSA ITALIANA S.P.A. - Divisione STAR