TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — H1 2014 Earnings Presentation
60 slides from TKH Group N.V. Cert's earnings presentation, Aug 19, 2014
Slide 1: Half year results 2014
Half year results 2014 TKH Group NV 1 | Half year results 2014 | 19-08-2014
Slide 2: Content
Content 1 About TKH Group 2 Developments 1 half year 2014 st 3 Notes to the results 1 half year 2014 st 4 Strategic developments, business drivers & outlook 5 4 Core technologies & 7 vertical growth markets 2 | Half year results 2014 | 19-08-2014
Slide 3: Profile
Profile Turnover 2013 € 1.2 billion Geographical Number of employees (FTE) 4,802 distribution of turnover (in %) Technology company Four core technologies Vision & security, communication, connectivity and manufacturing systems The core technologies are combined with software and system integration
Slide 4: Mission
Mission TKH intends to be an innovative and leading technology (niche) player in creating combinations of technologies to total solutions through which customers are fully relieved and that lead to larger efficiency, more comfort and larger safety. TKH aims to be an attractive employer, to continuou
Slide 5: Strategy TKH
Strategy TKH Value creation Focus on 4 core technologies in 3 business segments Telecom Building Industrial Solutions Solutions Solutions Growth drivers Communication, safety, care and efficiency Innovations > 15% turnover 5 | Half year results 2014 | 19-08-2014
Slide 6: Developments 2004 - 2013
Developments 2004 - 2013 6 | Half year results 2014 | 19-08-2014
Slide 7: Developments 1st half year 2014
DEVELOPMENTS 1st HALF YEAR 2014 7 | Half year results 2014 | 19-08-2014
Slide 8: Highlights 2nd quarter 2014
Highlights 2nd quarter 2014 Turnover rises by 13.5% to € 342.7 million, almost entirely organic – primarily driven by Industrial Solutions (+27.8%) Order intake Industrial Solutions stays at high level Efficiency programmes 2013 contribute to results improvement at Building Solutions EBITA up by 42.
Slide 9: Highlights 1st half year 2014
Highlights 1st half year 2014 Turnover rises by 11.9% to € 657.1 million, organic rise 12.8% Gross margin increases to 41.8% from 40.9% thanks to improved product mix EBITA up by 41.0% due to organic turnover growth, strongly improved efficiency and effective cost control Key figures (in million € u
Slide 10: Acquisitions
Acquisitions GF Messtechnik GmbH (100%-interest held by Augusta Technologie) – Building Solutions – vision & security systems Consolidated as from 30 June 2014 Leading supplier of SD-measurement systems based on optical surface metrology . Product portfolio include 3D-measurement equipment, 3D-senso
Slide 11: Highlights 1st half year 2014
Highlights 1st half year 2014 Solutions segmentation based on 4 core technologies 11 | Half year results 2014 | 19-08-2014
Slide 12: Telecom Solutions
Telecom Solutions (in million € unless stated otherwise) 1st half year 1st half year Δ in % 2014 2013 Turnover 80.5 80.1 + 0.5 EBITA 6.7 8.3 -19.1 ROS 8.3% 10.3% Organic turnover growth: + 0.5% Strong decline turnover copper network systems Decrease ROS as a result of margin pressure due to overcapa
Slide 13: Telecom Solutions
Telecom Solutions Segment fibre networks systems: turnover +8.5% Optical fibre (cable), connectivity systems and components, active equipment Growth primarily driven by China, Poland and Germany Acquisition of some strategic optical fibre projects – pressure on margin, but perspective of higher grow
Slide 14: Telecom Solutions
Telecom Solutions Segment indoor telecom systems: turnover +11.5% Home networking systems, broadband connectivity, IPTV-software solutions Expansion of product portfolio Slight increase in consumer spending in European market Segment copper networks systems: turnover -41.9% Copper cable, connectivit
Slide 15: Building Solutions
Building Solutions (in million € unless stated otherwise) 1st half year 1st half year Δ in % 2014 2013 Turnover 242.3 241.5 + 0.3 EBITA 18.3 16.7 + 9.7 ROS 7.5% 6.9% Organic turnover growth: + 1.1% EBITA and ROS improved as a result of the in 2013 implemented efficiency programmes and the realised g
Slide 16: Building Solutions
Building Solutions Segment building technologies: turnover +0.8% Energy-saving lighting and light switch systems, energy management systems, care systems, structured cabling systems 2nd quarter stronger than 1st quarter Focus on integrated solutions in specific markets is bearing fruit – key contrac
Slide 17: Building Solutions
Building Solutions Segment vision & security systems: turnover +5.9% Vision technology, systems for CCTV, video/audio-analysis and detection, intercom, access controls and registration, central control room integration Growth largely thanks to vision technology companies – turnover and order intake
Slide 18: Building Solutions
Building Solutions Segment connectivity systems: turnover -7.2% Specialty cable, connectivity systems and components for shipping, railways, wind energy as well as installation and energy cable for niche markets Impact raw material prices on turnover: -4.9% Decline in market volume in building and c
Slide 19: Industrial Solutions
Industrial Solutions (in million € unless stated otherwise) 1st half year 1st half year Δ in % 2014 2013 Turnover 334.3 265.5 + 25.9 EBITA 41.1 23.6 + 74.3 ROS 12.3% 8.9% Organic turnover growth: +27.1% Substantial increase in EBITA due to higher turnover, improved efficiency and better distribution
Slide 20: Industrial Solutions
Industrial Solutions Segment connectivity systemen: turnover +1.0% Specialty cable systems and modules for the medical, robotic, automotive and machine building industry Impact raw material prices on turnover: -2.8% – organic growth 3.8% Improved market conditions had a positive impact on order inta
Slide 21: Industrial Solutions
Industrial Solutions Segment manufacturing systemen: turnover +46.5% Tyre manufacturing systems, can washers, machine control systems, product handling systems and test equipment Investments in new technology and production capacity translated into considerable growth in order intake and turnover –
Slide 22: Notes to the results 1st half year 2014
NOTES TO THE RESULTS 1st HALF YEAR 2014 22 | Half year results 2014 | 19-08-2014
Slide 23: Change in turnover
Notes to the results 1st half year 2014 Change in turnover (in € million) 23 | Half year results 2014 | 19-08-2014
Slide 24: Geographical distribution of turnover
Notes to the results 1st half year 2014 Geographical distribution of turnover (in %) 24 | Half year results 2014 | 19-08-2014
Slide 25: Development of turnover per solution
Notes to the results 1st half year 2014 Development of turnover per solution (in million € unless stated otherwise) Impact Turnover 1) Turnover 1) Total prices raw Organic H1 2014 H1 2013 growth materials growth Telecom Solutions 80.5 80.1 + 0.5% - 0.0% + 0.5% Building Solutions 242.3 241.5 + 0.3% -
Slide 26: Notes to the results 1st half year 2014
Notes to the results 1st half year 2014 Gross margin increased to 41.8% (H1 2013: 40.9%) Improvement in Building and Industrial Solutions Improved productmix Lower gross margin in Telecom Solutions due to overcapacity and acquisition of some strategic optical fibre projects Increase EBITA of 41.0% O
Slide 27: EBITA per Solution
Notes to the results 1st half year 2014 EBITA per Solution (in million € unless stated otherwise) H1 2014 H1 2013 EBITA ROS % EBITA ROS % Telecom Solutions 6.7 8.3 8.3 10.3 Building Solutions 18.3 7.5 16.7 6.9 Industrial Solutions 41.1 12.3 23.6 8.9 Other - 5.9 - 5.9 Total 60.2 9.2 42.7 7.3 27 | Hal
Slide 28: Notes to the results 1st half year 2014
Notes to the results 1st half year 2014 Increase amortisation charges with € 1.0 million Higher investments in research & development Result from participations of € 0.3 million Mainly 5%-interest in Nedap and12.5%-interest in Chinese preform Joint Venture (ShinEtsu – Fasten) Lower result from parti
Slide 29: Change in financial result
Notes to the results 1st half year 2014 Change in financial result (in € million) Decrease financial expenses with € 2.3 million Lower interest expenses following renewal of credit facility as per October 2013 Lower interest rate due to expiration of interest rate swaps Neutral currency effect in H1
Slide 30: Notes to the results 1st half year 2014
Notes to the results 1st half year 2014 (in million €) H1 H1 2014 2013 Δ in % Turnover 1) 657.1 587.1 + 11.9 Costs of raw materials / consumables - 382.1 - 347.1 Gross margin 275.0 41.8% 240.0 40.9% + 14.6 Operating costs - 214.8 - 197.3 + 8.8 EBITA 60.2 9.2% 42.7 7.3% + 41.0 Amortisation - 13.0 - 1
Slide 31: Balance sheet as of 30 June 2014
Balance sheet as of 30 June 2014 (in million €) 30-06-2014 31-12-2013 30-06-2013 Assets Non-current assets 580.8 578.1 563.8 Inventories 195.1 185.5 198.6 Construction contracts 81.1 78.3 36.2 Receivables 191.7 155.8 180.3 Cash 65.3 79.6 69.0 Assets held for sale - - 7.2 Total 1,114.0 1,077.3 1,055.
Slide 32: Notes to the balance sheet 30 June 2014
Notes to the balance sheet 30 June 2014 Change in working capital (in € million) Working capital Use of non-recourse factoring: 30-06-14 € 33.1 million 31-12-13 € 38.8 million 30-06-13 € 37.1 million Use of supply chain finance: 30-06-14 € 11.0 million 31-12-13 € 16.6 million 30-06-13 € 17.5 million
Slide 33: Notes to the balance sheet 30 June 2014
Notes to the balance sheet 30 June 2014 Change in net debt (in € million) Financial covenants Net debt is based on financial covenants as agreed with banks Net debt / EBITDA: 1.6 Interest coverage ratio: 14.6 1) Including non-current liabilities, received from acquisitions 33 | Half year results 201
Slide 34: Cash flow statement
Cash flow statement (in million €) H1 H1 H2 2014 2013 2013 Operating result 47.3 30.7 36.7 Depreciation, amortisation and impairment 23.1 21.6 23.6 Share and option schemes - - -0.5 Result on divestments 1.3 1.6 0.4 Change in provisions - 2.0 - 2.1 6.2 Change in working capital - 48.5 - 31.7 23.0 Ca
Slide 35: Ratios
Ratios H1 H1 FY 2014 2013 2013 Working capital / Turnover 1) 15.8% 15.5% 13.2% Net debt / EBITDA 2) 1.6 1.9 1.5 Gearing (net debt / equity) 3) 49.0% 42.7% 45.6% ICR (EBITDA / Financial cost) 2) 14.6 9.0 10.9 Solvency 40.8% 40.6% 40.7% Earnings per ordinary share before amortisation and € 0.97 € 0.62
Slide 36: Strategic developments, business drivers & outlook
Strategic developments, business drivers & outlook 36 | Half year results 2014 | 19-08-2014
Slide 37: Business drivers
Business drivers TKH focuses on distinguishing potential for an above- average performance Niche player strategy - focus on high quality solutions with high margins High pricing power by innovative unique solutions Attractive margins because of high yield on investments for customers Commodity produ
Slide 38: Financial objectives TKH
Financial objectives TKH Progress realisation targets on track Increase ROS in H1 2014 to 9.2% (full 2013: 8.3%) ROCE in H1 2014: 17.5% Focus on 7 growth verticals – accelerates realisation of targets Targets ROS target: 9 to 10% ROCE target: 18 to 20% Solvency: > 35% Net debt / EBITDA: < 2.0 38 | H
Slide 39: Business drivers
Business drivers Focus on four core technologies Vision & security, communication, connectivity and manufacturing systems Merge the four core technologies into specific solutions for identified niche vertical markets with special focus on high growth opportunities within the business segments Teleco
Slide 40: TKH – vertical growth markets – growth drivers
TKH – vertical growth markets – growth drivers Advantage of focus on defined vertical growth markets Focus leads to maximum traction to realise growth potential Choice for growth verticals is determined on the return potential based on internal and external benchmarking – ROS and ROCE in combination
Slide 41: Conclusion – strategy and focus
Conclusion – strategy and focus vertical growth markets Accelerates the increase of the ROS and ROCE Creates substantial growth for TKH both in result and turnover Creates a better understanding of the TKH strategy at stakeholders Creates much better execution of growth opportunities Brings TKH into
Slide 42: Outlook
Outlook The outlook for the second half of the year in the market segments in which TKH is active is generally positive, despite the continued fragility of general economic conditions and geopolitical situation Telecom Solutions Further increase in investments in optical fibre networks Decline turno
Slide 43: Outlook
Outlook Industrial Solutions High order intake in Industrial Solutions will keep turnover in the second half of the year at the same high level as in the first half Worldwide economic uncertainties make it difficult to forecast the development of order intake in the coming quarters – at this time, t
Slide 44: Appendices: core technologies & vertical growth markets
Appendices: 4 core technologies & 7 vertical growth markets 44 | Half year results 2014 | 19-08-2014
Slide 45: Core technologies
Core technologies Vision & Security Communication Emergency Personal alarm systems systems Manufacturing systems Connectivity 45 | Half Drag year Chain results 2014 | 19-08-2014 systems MultiMediaConnect
Slide 46: Fibre Optics Networks - growth drivers
Fibre Optics Networks - growth drivers Fibre optics networks High priority from telecom-operators for upgrading networks Successful FttH-projects proof high return on investment Telecom operators are able to gain or defend market share through fibre optic technology More and more parties request of
Slide 47: 47 | Half year results 2014 | 19-08-2014
47 | Half year results 2014 | 19-08-2014
Slide 48: Care – growth drivers
Care – growth drivers Care Large need for care systems that respond to live longer independently at home: increasing aging – necessary cost reductions – efficiency improvements – need for better care – scarcity of nursing staff TKH core technologies respond well to the trends in the healthcare indus
Slide 49: 49 | Half year results 2014 | 19-08-2014
49 | Half year results 2014 | 19-08-2014
Slide 50: Tunnels – growth drivers
Tunnels – growth drivers Tunnels New legislation for tunnel technology – caused by fire Mont Blanc-tunnel In Europe, before 2020, thousands of kilometres tunnels will be built and provided with new tunnel technology for replacement Technologies relevant in relation to new tunnel legislation: evacuat
Slide 51: 51 | Half year results 2014 | 19-08-2014
51 | Half year results 2014 | 19-08-2014
Slide 52: Parking – growth drivers
Parking – growth drivers Parking Strong need within parking industry to: decrease OPEX – increase occupancy car parks – increase revenues by differentiated parking rates – increase comfort and ease for parker High returns on technology investments TKH has distinctive advanced technology with its cor
Slide 53: 53 | Half year results 2014 | 19-08-2014
53 | Half year results 2014 | 19-08-2014
Slide 54: Marine, Oil & Gas - growth drivers
Marine, Oil & Gas - growth drivers Marine, oil & gas Strong growing market from the perspective of the TKH core technologies that respond to the increasing need to a safer environment by a good detection and analysis of risk with quick and direct communication and guiding of actions in case of emerg
Slide 55: 55 | Half year results 2014 | 19-08-2014
55 | Half year results 2014 | 19-08-2014
Slide 56: Tyre Building Industry - growth drivers
Tyre Building Industry - growth drivers Tyre building industry High priority in tyre building industry for replacement existing technology with drivers: high productivity – less waste – improved quality – smaller batches – more regional production Advanced TKH-technology responds to these drivers –
Slide 57: 57 | Half year results 2014 | 19-08-2014
57 | Half year results 2014 | 19-08-2014
Slide 58: Industrial Machine Vision - growth drivers
Industrial Machine Vision - growth drivers Machine vision Extensive industrial automation and robotising responds to high productivity and quality of manufactured products Vision-technology is a superior alternative for steering and control of manufacturing systems and for the human eye in the area
Slide 59: 59 | Half year results 2014 | 19-08-2014
59 | Half year results 2014 | 19-08-2014
Slide 60: 60 | Half year results 2014 | 19-08-2014
60 | Half year results 2014 | 19-08-2014