Slide 1: SOL Group
SOL Group May 14, 2004 0
Slide 2: SOL Group 2003 Full Year Results
SOL Group 2003 Full Year Results 1
Slide 3: Business Description
Business Description SOL is a multinational company dedicated to the production, applied research and sales of industrial, medicinal, pure and special gases, as well as in home care services Industrial gases Home Care 2
Slide 4: The Industrial Gases Business - Product Range
The Industrial Gases Business - Product Range The Industrial Gases business produces and markets a complete range of industrial gases (both atmospheric and non-atmospheric gases) and is engaged in the research, design, construction and operation of industrial gas production facilities, storage and d
Slide 5: The Home Care Business - Product Range
The HOME CARE Business - Product Range The Home Care business (VIVISOL) supplies medical products and medical assistance services as well as equipment for home care therapy Home care respiratory Other home care Home care assistance assistance equipment Long term oxygen therapy Home care artifici
Slide 6: Key numbers
Key numbers 1362 employees 30 primary transformation plants, 35 secondary transformation plant More than 40,000 clients and over 70 applications Leading Home care business, with more than 40,000 patients served daily Euro 298.5 millions 2003 sales and Euro 50 millions 2003 cash flow Constant growth
Slide 7: Sales 1994 - 2003
Sol Group Sales 1994 - 2003 CAGR = 10,9% 299 300 267 250 236 212 195 200 176 Millions Euro 161 151 150 138 118 100 50 0 *1994 *1995 *1996 *1997 1998 1999 2000 2001 2002 2003 * Pro-forma data 6
Slide 8: Main Production Facilities
Main Production Facilities 7
Slide 9: Sales 1998 - 2003
Sol Group Sales 1998 - 2003 CAGR = 11,1% 13,3% 350 14% 11,7% 300 11,2% 12% 10,3% 250 9,2% 9,0% 10% Millions Euro 200 8% YOY 150 298,5 6% 267,2 235,7 100 212,0 4% 194,5 176,3 50 2% 0 0% 1998 1999 2000 2001 2002 2003 Sales YOY % 8
Slide 10: SOL Group Sales breakdown 2003
SOL Group Sales breakdown 2003 Merchant 62,2% Home Care Pipeline 25,3% 12,5% 9
Slide 11: Sales Breakdown by geographical areas: 1998 - 2003
Sales Breakdown by geographical areas: 1998 - 2003 Mix is changing due to growth of sales outside Italy 1998 2003 EU Countries 12% EU Countries 21% Other European Countries 5% Other European Countries 8% Italy 83% Italy 71% 10
Slide 12: Technical Gases Division Sales 1998 - 2003
Technical Gases Division Sales 1998 - 2003 CAGR = 8,7% 250 11,3% 12% 10,6% 9,3% 10% 200 8,8% 8,4% 8% Millions Euro 150 5,9% YOY 6% 229,3 100 209,8 188,5 164,2 173,9 4% 150,9 50 2% 0 0% 1998 1999 2000 2001 2002 2003 Sales YOY % 11
Slide 13: Home Care Division Sales 1998 - 2003
Home Care Division Sales 1998 - 2003 CAGR = 20,5% 80 23,5% 25% 22,8% 20,8% 70 19,9% 20% 60 15,8% 50 Millions Euro 15% 12,4% YOY 40 75,8 63,2 10% 30 52,3 20 42,6 34,5 5% 29,8 10 0 0% 1998 1999 2000 2001 2002 2003 Sales YOY % 12
Slide 14: Sales Breakdown by business: 1998 - 2003
Sales Breakdown by business: 1998 - 2003 Mix is changing due to rapid growth of Home Care sales 1998 2003 Home Care 16,7% Home Care 25,3% Industrial Gases Industrial Gases 83,3% 74,7% 13
Slide 15: EBITDA 1998 - 2003
Sol Group EBITDA 1998 - 2003 80 26% 24,8% 24,9% 24,5% 24,3% 70 23,2% 24% 60 21,9% 50 Millions Euro 22% % on sales 40 74,3 65,6 20% 30 51,5 54,6 48,2 20 38,6 18% 10 0 16% 1998 1999 2000 2001 2002 2003 EBITDA % on Sales 14
Slide 16: EBIT 1998 - 2003
Sol Group EBIT 1998 - 2003 11,6% 35 10,9% 11,1% 12% 10,6% 10,0% 10,0% 30 10% 25 8% Millions Euro % on sales 20 6% 33,2 15 28,4 22,6 23,1 23,5 4% 10 17,6 2% 5 0 0% 1998 1999 2000 2001 2002 2003 EBIT % on Sales 15
Slide 17: PBT 1998 - 2003
Sol Group PBT 1998 - 2003 35 12% 10,5% 9,7% 9,8% 30 9,2% 10% 8,6% 25 7,8% 8% Millions Euro % on sales 20 6% 15 29,3 24,5 4% 10 20,4 20,6 20,3 13,7 2% 5 0 0% 1998 1999 2000 2001 2002 2003 PBT % on Sales 16
Slide 18: Main Indexes
Sol Group Main Indexes + 11,7% 350 299 2002 2003 300 267 250 Millions Euros 200 + 13,3% + 16,8% + 19,4% 150 100 66 74 28 33 29 50 25 0 Sales EBITDA EBIT PBT 17
Slide 19: Taxes and Tax Rate 1998 - 2003
Sol Group Taxes and Tax Rate 1998 - 2003 48,1% 20 50% 44,7% 18 42,3% 43,5% 16 40% 36,0% 35,8% 14 35,0% (*) Millions Euro 12 Tax rate 10 30% 8 14,1 6 9,1 20% 4 8,8 7,4 7,1 5,8 2 0 10% 1998 1999 2000 2001 2002 2003 Taxes Tax Rate (*) Deferred taxes due to a new Italian law: 1,4 18
Slide 20: Net Profit 1998 - 2003
Sol Group Net Profit 1998 - 2003 20 7% 6,1% 18 5,8% 5,6% 5,5% 6% 16 5,1% 14 5% 4,3% Millions Euro 12 % on sales 4% 10 3% 8 15,5 15,2 12,9 13,1 6 2% 11,0 4 7,5 1% 2 0 0% 1998 1999 2000 2001 2002 2003 Net Profit % on Sales 19
Slide 21: Cash Flow 1998 - 2003
Sol Group Cash Flow 1998 - 2003 60 18,8% 18,5% 20% 18,1% 17,6% 16,8% 50 15,4% 15% 40 Millions Euro % on sales 30 10% 49,3 50,0 43,0 20 40,0 34,0 28,0 5% 10 0 0% 1998 1999 2000 2001 2002 2003 Cash Flow % on Sales 20
Slide 22: Capital Expenditures 1998 - 2003
Sol Group Capital Expenditures 1998 - 2003 Average = 16,9% 24,4% 60 25% 20,4% 50 18,0% 20% 16,0% 13,9% Millions Euro 40 15% % on sales 11,5% 30 48,0 48,0 10% 43,0 34,0 34,0 20 5% 27,0 10 0% 1998 1999 2000 2001 2002 2003 Capex % on sales 21
Slide 23: Strategy
STRATEGY Expand Consolidate market internationally share in Italy Improve Be a Solution Home Care Provider business 22
Slide 24: Expand internationally
Expand internationally Sales outside Italy CAGR = 22,8% 90 28,7% 30% 27,8% 80 25,4% 70 23,7% 25% 60 21,1% % on total sales Millions Euro 50 20% 85,5 40 17,4% 74,3 30 59,9 50,2 41,0 15% 20 30,6 10 0 10% 1998 1999 2000 2001 2002 2003 Sales % on totale sales 23
Slide 25: Consolidate market share in Italy
Consolidate market share in Italy New ASU Mantova: long term agreement to supply Polimeri Europa in Mantova with compressed air and gaseous nitrogen by pipeline. New investments to build new facilities and storages in Piombino ASU: long term agreement and supplies of bigger quantities of gaseous oxy
Slide 26: Improve the home care business
Improve the home care business Mechanical ventilation Enteral nutrition Sleep apnea Oxygentherapy Advanced Home Care 25
Slide 27: Improve the home care business
Improve the home care business Home Care Division: Sales 1998 - 2003 80 30% 70 25,3% 60 23,6% 25% 22,1% % on total sales 50 Millions Euro 20,3% 40 20% 75,8 17,4% 16,7% 63,2 30 52,3 20 42,6 15% 34,5 29,8 10 0 10% 1998 1999 2000 2001 2002 2003 Sales % on total sales 26
Slide 28: Be a Solution Provider
Be a Solution Provider Teleremoting Total Gas Management Professional trainings for a safety use of gases CO2 blasting Gas distribution plants maintenance Engineering: evaluation and optimization of gas uses Quality certification of gases and gas storage installations On-site gas production plants 2
Slide 29: Be a Solution Provider: SOL MET
Be a Solution Provider Patented SOLmix SOLMIX® solutions to provide on-site Heat Treatment Technologies gas mixtures for industry SOL MET SOLmet solutions to improve Melting Enhanced Technologies efficiency in foundries Patented Ecojet ECOJET® solutions for waste water treatment Waste Water Treatmen
Slide 30: Be a Solution Provider: Ali SOLFood and Cryo SOLFood
Be a Solution Provider Ali SOLFood Advanced Gas Technological Solutions A complete cooking and freezing line based on our cryoSOL patent Cryo SOLFood Advanced Cryogenic Technological Solutions Trucks filling station for liquid nitrogen 29
Slide 31: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.12.03 31.12.02 % % Net turnover 298,499 100.0 267,160 100.0 Other revenues 2,528 0.8 2,745 1.0 Work in progress 4,082 1.4 5,514 2.1 Total revenues 305,109 102.2 275,419 103.1 Raw materials 85,596 28.7 83,206 31.1 Services 86,846 29.1 76,983
Slide 32: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.12.03 31.12.02 % % EBITDA 74,265 24.9 65,561 24.5 Depreciation & Amortization 34,869 11.7 33,558 12.6 Other provisions 6,227 2.1 3,610 1.4 EBIT 33,169 11.1 28,392 10.6 Net financial (3,706) (1.2) (3,988) (1.5) Ordinary income 29,463 9.9 24,
Slide 33: Sol Group Consolidated Balance Sheet
Sol Group Consolidated Balance Sheet (millions Euro) Assets 31.12.03 31.12.02 Liabilities 31.12.03 31.12.02 Net fixed assets 204.1 202.9 Shareholder's equity 212.8 202.4 Other fixed assets 9.9 12.5 Minorities 7.0 8.1 Cash and liquid assets 24.3 23.9 Financial debts 89.5 94.4 Net receivables 128.5 11
Slide 34: Sol Group Net Financial Position
Sol Group Net Financial Position (thousands Euro) 31.12.03 31.12.02 Cash and cash at bank 24.310 23.901 Securities 577 340 Loans - current portion (18.494) (19.257) Leases - current portion (1.428) (1.236) Due to shareholders (1.332) - Short term liquidity 13.633 3.748 Investments securities 484 561
Slide 35: SOL Group 2004 First Quarter Results
SOL Group 2004 First Quarter Results 34
Slide 36: Main Indexes
Sol Group Main Indexes + 7,1% 90 79 1st quarter 2003 73 75 1st quarter 2004 60 Millions Euros 45 + 8,2% + 23,4% 30 18 20 15 9 11 0 Sales EBITDA EBIT 35 38
Slide 37: Sol Group Consolidated Income Statement
Sol Group Consolidated Income Statement (thousands Euro) 31.03.04 31.03.03 % % Net turnover 78,640 100.0 73,425 100.0 Other revenues 1,461 1.9 354 0.5 Work in progress 1,084 1.4 966 1.3 Total revenues 81,185 103.2 74,745 101.8 Raw materials 23,800 30.3 22,168 30.2 Services 23,078 29.3 21,306 29.0 St
Slide 38: Sol Group Net Financial Position
Sol Group Net Financial Position (thousands Euro) 31.03.04 31.12.03 Cash and cash at bank 28.243 24.310 Securities 580 577 Loans - current portion (16.495) (18.494) Leases - current portion (1.449) (1.428) Due to shareholders (1.332) (1.332) Short term liquidity 9.547 3.633 Investments securities 51
Slide 39: SOL Group
SOL Group 41