Kendrion N.V. · EURONEXT:KENDR
Kendrion — Shareholder Meeting (April 2013)
23 slides from Kendrion's shareholder meeting presentation, Apr 15, 2013
Slide 1: Kendrion N.V. General Meeting of Shareholders
10-4-2013 Kendrion N.V. General Meeting of Shareholders Monday 15 April 2013 Agenda 1. Kendrion at a glance 2. 2012 Highlights 3. Key figures for 2012 and financial objectives 4. Review of business units 5. Financial position 6. Dividend 7. Fine imposed by European Commission 8. ERP project HORIZON
Slide 2: Kendrion at a glance: The Kendrion organisation
10-4-2013 1. Kendrion at a glance 3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,600 employees (including 100 temps) in 12 countries Revenue: approximately EUR 300 million Listed company on NYSE Euronext's Amsterda
Slide 3: Organisation – Kendrion breakdown of revenue 2012
10-4-2013 Organisation – Kendrion breakdown of revenue 2012 Industrial Magnetic Systems Passenger Car Systems • Machine building • Automotive applications • Safety engineering • Hydraulic applications • Transportation industry • Medical engineering • Power engineering • Elevator industry • Automatio
Slide 4: Kendrion committed to being a high-performer in selected business units
10-4-2013 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives Spearheads - Niche market leadership - Organic growth in the current operations To develop business units that Organic growth > 10% - Utilisation of synergy in and have strong international
Slide 5: Key actions for achieving our strategic spearheads
10-4-2013 Key actions for achieving our strategic spearheads (1) - Alert response to market developments in all key markets (market intelligence) - Increase customers' commitment in projects, particularly in Industry - Expand and retain workforce - Very little unemployment in southern Germany, flexi
Slide 6: Corporate Social Responsibility
10-4-2013 Revenue distribution 11 Corporate Social Responsibility - Kendrion wants to expand CSR efforts step by step, also on a more strategic level - CSR Board installed mid 2011 - 9 employees from business units and Kendrion Group Services - Sponsored by CEO - Key issues and targets defined for 2
Slide 7: 2012 Highlights
10-4-2013 2. 2012 Highlights 13 2012 Highlights - Market conditions deteriorated during the year - Transitional year, revenue up 6% (-4.1% on an organic basis) - Net profit EUR 18 million (normalised net profit EUR 13.6 million) - Growth in business units IDS and CVS - Revenue decrease in IMS and (o
Slide 8: Revenue development per region
10-4-2013 Revenue development per region (x EUR 1 million) 2012 share 2011 share growth Germany 139 49% 148 55% -6% Rest of Europe 61 21% 65 24% -7% Americas 50 17% 20 8% 150% Asia 33 12% 32 12% 2% Other 2 1% 3 1% -2% Total 285 268 6% 15 3. Key figures for 2012 and financial objectives 16 8
Slide 9: Key figures 2012 and financial targets
10-4-2013 Key figures 2012 (x EUR 1 million unless otherw ise stated) Q4 2012 1 Q4 2011 1 Difference in % Revenue 65.5 64.9 1% Normalised EBITA * 2.3 6.7 -66% Realised net profit 3.3 -36.2 Normalised net profit * 2.2 4.4 -50% ROS 3.4% 10.3% 1 The quarterly figures are unaudited (x EUR 1 million unle
Slide 10: Performance Q4 2012 and added value 2012
10-4-2013 Performance Q4 2012 - Difficult quarter, especially the month of December - EBITA margin 3.4% in fourth quarter 2012 - Inventory effects (priority for working capital management) - Tax credit (utilisation of Dutch losses) 19 Added value 2012 Added value fell by over EUR 11 million on an or
Slide 11: Changes in Kendrion organisation
10-4-2013 Changes in Kendrion organisation - Smoothly operating organisation in 2012 - From 1 January 2013: new Business Unit Manager CVS (Erik Miersch) - From 18 February 2013: new CFO (Frank Sonnemans) - Engineering significantly strengthened 21 4a. Review of business units 22 11
Slide 12: Review of business units: General (Industrial Magnetic Systems)
10-4-2013 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: mechanical engineering, locking and safety, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in Germany, USA, China, Switzerla
Slide 13: Review of business units: General (Industrial Drive Systems)
10-4-2013 4b. Review of business units 25 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Two production sites in Germany; international service coordinated through UK sales office - Global market leader in permanent magnetic brake systems - Number of
Slide 14: Review of business units: 2012
10-4-2013 2012 - Organic growth (5%) in permanent magnetic brake systems continued in 2012, due to German machine building - Strong increase among top 10 customers, revenue down at smaller customers - Top 10 customers account for 63% of revenue, largest customer for over EUR 12 million - Strong focu
Slide 15: Review of business units: General (Passenger Car Systems)
10-4-2013 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, China and the USA - Serves European “Original Equipment Manufacturers”: Daimler, Volkswagen (incl. Audi), and first-tier suppliers (Continent
Slide 16: Review of business units: General (Commercial Vehicle Systems)
10-4-2013 4d. Review of business units 31 General - Operations: components and total cooling systems for buses, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Many customers worldwide - Sites in Germany, USA, Mexico, Brazil, Chi
Slide 17: Commercial Vehicle Systems 2012
10-4-2013 2012 - Organic growth of 2%, particularly due to growth in India - Top 10 customers account for 59% of revenue, largest customer for over EUR 9 million - European bus market weak - Extra focus on cooling systems for truck market - Faltering Chinese market, introduction of new products - Ne
Slide 18: Financial position
10-4-2013 Financial position - Satisfactory free cash flow for full year 2012: EUR 9.7 million - In control of working capital, inventories reduced - Strong balance sheet (net debt at year-end 2012 EUR 21.3 million, solvency 45%) - Some EUR 80 million freely available for acquisitions - Slight adjus
Slide 19: Dividend
10-4-2013 Dividend - Dividend window 35% - 50% of net profit - Solvency of at least 35% - Proposed optional dividend for 2012 of 50% of normalised net profit (EUR 13.6 million) - Dividend of EUR 0.58 per share 37 7. Fine imposed by European Commission 38 19
Slide 20: Fine imposed by European Commission
10-4-2013 Fine imposed by European Commission - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel in period 1995 - 2002 - Recognised a provision following judgement of General Court of the European Union in November 2011, amounting to
Slide 21: ERP project HORIZON
10-4-2013 ERP project HORIZON - Investment between EUR 5.5 and EUR 6.0 million - 1 October 2012 IDS Villingen live, 1 January 2013 PCS Eibiswald live - 1 April 2013 IMS Villingen live, i.e. 3 major entities completed then - Within budget for investments and costs - Uses standard software, no tailor-
Slide 22: Priorities for 2013 and Outlook
10-4-2013 Priorities for 2013: "Entering another league" - Four spearheads maintained (flexibility, innovation, sustainability, globalisation) - Focus on the internal organisation - Achievement of financial objectives (costs and cash) - Further steps in the field of innovation - Expand businesses in
Slide 23: We magnetise the world!
10-4-2013 We magnetise the world! www.kendrion.com 23