Slide 1: NORMA Group Full Year Results 2011
NORMA Group Full Year Results 2011 Investors’ & Analysts’ Conference Frankfurt, March 28th, 2012 Customer Value through Innovation
Slide 2: Highlights 2011 - Strategy
Highlights 2011 - Strategy Acquisitions Integration of the US acquisitions R.G. Ray and Craig Assembly successfully concluded in Q1/2011 APAC Establishing Singapore headquarters increases focus in region Greenfield Plant opening in Thailand in early 2011 APAC Greenfield Start of production in Serbia
Slide 3: Highlights 2011 – Financials (I)
Highlights 2011 – Financials (I) Record sales of EUR 581.4 million (2010: EUR 490.4 million) Sales growth of 18.5% including organic growth of 13.4% Record adjusted EBITA of EUR 102.7 million Adjusted EBITA first time in company history > EUR 100 million (2010: EUR 85.4 million) Margin Further margi
Slide 4: Highlights 2011 – Financials (II)
Highlights 2011 – Financials (II) Net Debt Net debt down to EUR 176.7 million from EUR 338.6 million in 2010* Cash Flow Excellent adjusted net operating cash flow of EUR 66.8 million (2010: EUR 51.7 million) Visibility Order book at year end at EUR 218.6 million (2010: EUR 188.0 million) Guidance Sa
Slide 5: Excellent Growth in 2011: Record Sales with EUR 581.4 million
Excellent Growth in 2011: Record Sales with EUR 581.4 million Sales Development in EUR million Growth Development Sales 2010 2011 Change Change in % Organic Acquisitive Currency Growth Growth Effects Q1 106.1 150.4 + 44.3 + 41.7% +27.1% +12.4% + 2.2% Q2 124.4 145.5 + 21.1 + 17.0% +13.7% +7.5% - 4.2%
Slide 6: Sales by regional reporting segments
Sales by regional reporting segments Reporting segment Asia-Pacific recorded direct sales of 6.1% in 2011. The de-facto share including all NORMA exports into the Asia-Pacific region is estimated at around 10% of our total sales (sales by destination) Increase of Americas region driven by US acq
Slide 7: Sales by Way-to-Market and by Industries
Sales by Way-to-Market and by Industries NORMA Group’s US acquisitions of RG Ray (NORMA Illinois) and Craig Assembly (NORMA St. Clair) increased its stake of the EJT way-to-market to 71% of its total sales Majority of sales goes to non-automotive industrials, distributors as well as general tier
Slide 8: Building a Track Record: 8 Quarters of Strong Sales and Margins
Building a Track Record: 8 Quarters of Strong Sales and Margins 2010 2011 in € million Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sales 106.1 124.4 131.0 128.9 150.4 145.5 145.9 139.6 Adjusted EBITA 19.3 22.8 22.7 20.6 28.4 25.5 26.2 22.6 Adjusted EBITA 18.2% 18.3% 17.4% 16.0% 18.9% 17.5% 18.0% 16.2% Margin Full Full
Slide 9: Typical Seasonal Pattern of Business Year
Typical Seasonal Pattern of Business Year H1 2011 stronger than H2 2011 due to working days and year-end breaks 2011 in EUR million HY1 HY2 FY Sales 295.9 51% 285.5 49% 581.4 100% Adjusted EBITA 53.9 52% 48.8 48% 102.7 100% Adjusted EBITA 18.2% 17.1% 17.7% Margin 9
Slide 10: Historic Growth Track Record
Historic Growth Track Record Historic revenue development (1997 – 2011) EUR million 600 581 490 500 458 400 385 1 330 300 277 229 242 198 207 200 174 182 138 150 121 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 HGB IFRS Former Rasmussen has shown a solid historica
Slide 11: Positive Results and Stable Costs
Positive Results and Stable Costs YTD material consumption stable at ~ 45% YTD productivity gains including cost improvement programme “Global Excellence” Material Costs (in EUR million) Adjusted Personnel Expenses (in EUR million) 300 45.0% 45.1% of sales 50% 150 24.6% 23.8% 25% of sales 40% 20
Slide 12: Overview on Adjustments
Overview on Adjustments Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011) Only minor PPA adjustments in 2012 on EBITA level expected (< EUR 0.5 million) in EUR million FY 2010 FY 2011 thereof Q1 2011 Reported EBITA 64.9 84.7 12.1 + Restructuring Costs 1.3 1.8 0
Slide 13: EPS – Dividend Proposal EUR 0,60 per share
EPS – Dividend Proposal EUR 0,60 per share Dividend proposal to the shareholders at the AGM on May 23rd, 2012: EUR 0.60 per share = 3.8% dividend yield* Pay-out of EUR 19.1 million for 31,862,400 shares equals 33.2% of adjusted net income of EUR 57.6 million pro forma EPS Adjusted EPS Reported E
Slide 14: Profit & Loss (adjusted & reported)
Profit & Loss (adjusted & reported) in EUR million 2011 2010 reported adjusted reported adjusted Sales 581.4 581.4 490.4 490.4 Gross Profit 322.6 322.6 274.7 274.7 EBITDA 100.2 117.0 81.7 99.2 EBITA 84.7 102.7 64.9 85.4 in % 14.6% 17.7% 13.2% 17.4% EBIT 76.6 99.7 56.3 80.9 in % 13.2% 17.1% 11.5% 16.
Slide 15: Stable TWC Ratio despite 13.4% Organic Growth
Stable TWC Ratio despite 13.4% Organic Growth EUR million 200 20% 18.1% 18.3% 150 15% 81 100 70 14.3% 13.9% 10% 50 65 13.2% 67 11.5% 5% 0 -46 * -41 -2 -50 0% 2010 2011 Inventories Trade accounts payable Trade receivables Trade Working Capital * plus payments related to IPO costs 2010 (EUR 2 million)
Slide 16: Development of Equity: Strong Equity Ratio after Capital Increase
Development of Equity: Strong Equity Ratio after Capital Increase EUR million 13.5% 39.5% 300 - 5 36 200 147 256 100 78 0 Equity 2010 Capital Increase Profit Consolidation* Equity 2011 * Acquisition of non-controlling interests from joint ventures Spain and India 16
Slide 17: Net Debt & Financing Ratios
Net Debt & Financing Ratios Net Debt (in EUR million) Financing Ratios 338.6 * Net debt decreased driven by capital increase and good 400 operating cash flow Leverage and gearing extremely reduced 300 176.7 * excluding derivatives* 31.12.2011 31.12.2010 200 369 Leverage (net debt* / adjusted 245
Slide 18: Solid Balance Sheet
Solid Balance Sheeet EUR million 649 649 700 600 256 500 non-current assets 63.2% total equity 39.5% 410 400 300 non-current liabilities 43.8% 284 200 171 current assets 26.3% 100 109 current liabilities 16.7% 68 liquid assets 10.5% 0 Assets Liabilities 18
Slide 19: Significant Operating Net Cash Flow Improvement
Significant Operating Net Cash Flow Improvement Adjusted operating net cash flow in EUR million 2010 2011 Variance Adjusted EBITDA* 99.2 117.0 17.9% Δ ± Working capital -26.4 -19.5 -26.2% Adjusted operating net cash flow before investments from 72.8 97.5 33.9% operating business Δ ± Investments from
Slide 20: Cash Flow Statement
Cash Flow Statement Adjusted operating net cash flow 11.5% of sales (2010: 10.5%) 10.5% of sales 11.5% of sales 100 80 7 - 10 60 18 40 67 52 20 0 adjusted operating ∆ adjusted EBITDA ∆ Working Capital ∆ investments from adjusted operating net cashflow 2010 operating business net cashflow 2011 20
Slide 21: Outlook 2012 - Strategy
Outlook 2012 - Strategy 1 Continue international expansion of sales network and production footprint 2 Continue to explore business opportunities in APAC 3 Increase China capacity to enable expansion 4 Expand and explore opportunities in Brazil Consolidate Maintal activity by returning 2 leased buil
Slide 22: Outlook 2012 – Macroeconomic Forecast
Outlook 2012 – Macroeconomic Forecast in % 2011 2012e 2013e USA* +1.8 +1.8 +2.2 China* +9.2 +8.2 +8.8 Euro-zone* +1.6 -0.5 +0.8 Germany* +3.0 +0.3 +1.5 VDMA (German Engineering Federation) expects production increase of 4% in 2012. Euroconstruct expects further reduction by 0.3% for the European
Slide 23: Outlook 2012 – Company Guidance
Outlook 2012 – Company Guidance Sales growth between 3% and 6% at least on the level of the two previous years EBITA margin (17.4% and 17.7% respectively) Investments in R&D approx. 4% of EJT-sales Material ratio approx. 45% of sales Financial result approx. EUR -15m Tax rate approx. 30% to 32% Inve
Slide 24: Thank you for your attention
Thank you for your attention Financial Calendar Date Publication of Q1 Results 2012 14.05.2012 Annual General Meeting 23.05.2012 Publication of Q2 Results 2012 14.08.2012 Publication of Q3 Results 2012 13.11.2012 Customer Value through Innovation 24
Slide 25: Appendix
Appendix 25
Slide 26: NORMA Group – Key Investment Highlights
NORMA Group – Key Investment Highlights 1 Market leader in attractive engineering niche markets with strong growth prospects 2 Premium pricing through technology and innovation leadership in mission-critical components 3 Enhanced stability through broad diversification across products, end-markets a
Slide 27: 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 presence Assembly time reduction / ease of Weight reduction assembly NORMAFLUID® Modula
Slide 28: NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers 28
Slide 29: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across end-markets Sales €m End-market Joining 600 581 (year) (2010-15 CAGR) production unit technology growth market growth 500 ~27% Fluid Passenger vehicles +6% 9% 400 300 Commercial vehicles +6% 10% ~
Slide 30: Significant Growth and Value Creation Opportunity through Synergistic Acquisitions
Significant Growth and Value Creation Opportunity through Synergistic Acquisitions Taken advantage of market fragmentation History of Excellence 2011 2010 2010 Start of production in Mexico 2004 2004 Foundation of R. G. Ray 2007 Corporation 2007 Acquisition 1972 1972 Acquisition TORCA® 2006 2003 200
Slide 31: Further Development of Manufacturing Footprint
Further Development of Manufacturing Footprint NORMA Russia Existing Manufacturing locations NORMA USA Auburn Hills, USA St Clair, USA Saltsburg, USA Monterrey, Mexico Juarez, Mexico Expand business opportunities Gerbershausen, Germany Benefit from synergies in Maintal, Germany distrib
Slide 32: Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components
Premium Pricing through Technology and Innovation Leadership in Mission-Critical Components Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value of Basis for premium pricing: Example: joining technology Harvester content Market leadership Coolin
Slide 33: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission Regulations Drive Increased Joining Technology Content Today Europe EURO 5 EURO 6 EURO 3 EURO 4 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J. '19 Japan JPN '02 JPN '05 JPN '98 Brazil EURO 3 EURO 5 EURO 6 EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 Russia EURO 1 EURO 2 EURO
Slide 34: Enhanced Stability through Broad Diversification Across Products, End-Markets and Regions
Enhanced Stability through Broad Diversification Across Products, 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 Shipbuilding White goods W
Slide 35: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways-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 Services (DS) ~71%
Slide 36: NORMA Group Management Team
NORMA Group Management Team Werner Deggim Dr. Othmar Belker Bernd Kleinhens John Stephenson Chief Executive Officer Chief Financial Officer Business Development Chief Operating Officer 36
Slide 37: Shareholder Structure
Shareholder Structure Free Float at 56.2% including major institutional investors Lock-up period of major shareholders expired in October 2011 Shareholder structure – pre IPO Shareholder structure – today 3i Group and 8.3% 3i Group and Funds 73.0% Funds MABA CYPRUS MABA CYPRUS 35.5% 56.2% Ltd. L
Slide 38: Continuation of Growth Track and Sustainable Margin into 2011
Continuation of Growth Track and Sustainable Margin into 2011 Revenue (in EUR million) Gross profit (in EUR million) 600 of sales 350 54.9% 55.3% 56.0% 55.5% 60% 500 300 581 400 250 323 40% 490 200 275 300 458 150 251 200 182 20% 330 100 100 50 0 0% 0 2008 2009 2010 2011 2008 2009 2010 2011 Personne
Slide 39: Positive Effects of the IPO Visible on Balance Sheet
Positive Effects of the IPO Visible on Balance Sheet (all amounts in EUR million) 31 Dec 2010 31 Dec 2011 (all amounts in EUR million) 31 Dec 2010 31 Dec 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets / 390.4 401.0 Total equity 78.4 256.0 Property, pl
Slide 40: Pro-active FCF Management to be Continued
Pro-active FCF Management to be Continued Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 18.5% % of revenues 200 18.0% 18.1% 18.3% 20% 80 150 15% 100 70 81 49 45 10% 60 50 54 45 65 67 0 5% -19 -30 -46 * -41 -50 0% 40 2008 2009 2010 2011 67 67 Inventories Tra
Slide 41: Contact
Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Mobile: +49 1520 910 3619 Email: Andreas.Troesch@normagroup.com 41
Slide 42: 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 “