Slide 1: NORMA Group Third Quarter Results 2012
NORMA Group Third Quarter Results 2012 Maintal, 13 November 2012 Customer Value through Innovation
Slide 2: Highlights Q3 2012
Highlights Q3 2012 Sales increased by 2.5% driven by 3.6% from acquisitions to EUR 149.6 million (Q3 2011: EUR 145.8 Sales million) EBITA EBITA of EUR 25.7 million or 17.2% of sales down from EUR 26.2 million (adjusted) or 18.0% y-o-y Equity ratio increased to 40.7% even including dividend payment a
Slide 3: Growth slowed down to 5.8% due to weaker economic situation in Europe
Growth slowed down to 5.8% due to weaker economic situation in Europe Weaker Q3 lowers growth to 3.9% (excluding acquisitions) Sales Development in EUR million Sales 2011 2012 Change Change in % thereof thereof currency acquisitions Q1 150.4 159.7 +9.3 +6.3% +1.2% +0.0% Q2 145.5 158.0 +12.5 +8.6%
Slide 4: Sales by Regions, by Way-to-Market and by Industries
Sales by Regions, by Way-to-Market and by Industries Strong organic growth in America leads to 33% of total sales EJT way-to-market increased by 1% to 71% of total sales; Connectors and Nordic Metalblok consolidated into DS Majority of sales goes to non-automotive industrials, distributors as
Slide 5: Sustainable Margin Level Continues
Sustainable Margin Level Continues 2010 2011 2012 in EUR million H1 H2 FY H1 H2 FY H1 Q1-3 Sales 230.5 259.9 490.4 295.9 285.5 581.4 317.7 467.3 Adjusted EBITA 42.1 43.3 85.4 53.9 48.8 102.7 57.8 83.5 Adjusted EBITA 18.3% 16.7% 17.4% 18.2% 17.1% 17.7% 18.2% 17.9% Margin 5
Slide 6: Material Consumption and OPEX Improved
Material Consumption and OPEX Improved Improved material costs and OPEX compensated higher personnel expenses and lead to sustainable margin Material Costs (in EUR million) Personnel Expenses (in EUR million) 250 45.2% 50% of sales 250 50% of sales 44.3% .44.7% 43.9% 200 40% 40% 200 150 30% 27.0%
Slide 7: No Operational Adjustments in Q1-3 2012
No Operational Adjustments in Q1-3 2012 No operational adjustments for recent acquisitions in Switzerland, Italy and Malaysia PPA adjustments slightly increased due to Swiss acquisition in EUR million Reported PPA adjustments adjusted Sales 467.3 0 467.3 EBITDA 94.4 0 94.4 EBITDA margin 20.2% 20
Slide 8: Strong Improvement in Reported and Adjusted EPS
Strong Improvement in Reported and Adjusted EPS pro forma adjusted EPS (in EUR) Reported EPS (in EUR) 2,00 2,00 Q1-3 = +9% Q1-3 = +95% 1.59 1.46 1.48 1,50 1,50 0.50 0.46 0.51 1,00 1,00 0.76 0.55 0.51 0.38 0,50 0,50 0.54 0.57 0.54 0.51 0.19 0,00 0,00 0.03 Q1-3 2011 Q1-3 2012 Q1-3/2011 Q1-3/2012 no. o
Slide 9: Very Strong Operating Net Cash Flow in Q1-3 2012
Very Strong Operating Net Cash Flow in Q1-3 2012 Operating net cash flow in EUR million Q1-3 2011 Q1-3 2012 Variance thereof Q3 2012 EBITDA* 90.4 94.4 4.4% 29.5 Δ ± Working capital -41.6 -26.6 -36.1% +0.3 Operating net cash flow before investments from 48.8 67.8 38.9% 29.8 operating business Δ ± Inv
Slide 10: Equity and Debt Ratios improved
Equity and Debt Ratios improved Equity and debt ratios improved despite dividend payment and acquisition in Switzerland and Italy because of strong earnings and cash generation. Net Debt (in EUR million) Equity Ratios 30.09.2012 31.12.2011 177* 183* 300 Equity Ratio (Equity / Balance 40.7% 39.5% S
Slide 11: Acquisition of Chien Jin Plastic Sdn. Bhd.
Acquisition of Chien Jin Plastic Sdn. Bhd. Acquisiton of Chien Jin Plastic, Malaysia, in October 2012 M&A Closing expected toward year end 2012 Specialised in joining elements for plastic and iron pipe systems for different application areas, esp. Business drinking and domestic water distribution. A
Slide 12: Flexibility of Cost Positions supports sustainable margin level
Flexibility of Cost Positions supports sustainable margin level Material costs ~ 45% material consumption ratio stable and adjustable to any given sales level 10% to 15% temporary workers Personnel costs Flexible overtime accounts and flex time agreements Short time work arrangement still in
Slide 13: Outlook 2012 – Company Guidance Updated
Outlook 2012 – Company Guidance Updated Organic sales approx. 1% growth Consolidation approx. EUR 13 million from acquisitions* EBITA margin approx.17% Dividend Approx. 30% to max. 35% of Group year end result (unchanged) 13
Slide 14: Strategy Appendix
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Slide 15: 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 16: 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 17: 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 18: 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 Headquarters in 2012 Tagelswangen 2010 Sales Agents in Vienna, 2009 Krefeld 2010 Foundation of Start of production in2004 2004 Connectors Mexico 1985
Slide 19: Acquisition of Connectors Verbindungstechnik AG
Acquisition of Connectors Verbindungstechnik AG M&A Acquisiton of Connectors Verbindungstechnik AG, Switzerland, in April 2012 Business Connectors specialises in connecting systems for the pharmaceutical and biotechnology industry. Model For more than 25 years the company has been manufacturing and
Slide 20: Acquisition of Nordic Metalblok S.r.l.
Acquisition of Nordic Metalblok S.r.l. M&A Acquisiton of Nordic Metalblok S.r.l., Italy in July 2012 Business Company specialises in manufacturing clamps for various applications particularly for the Model heating, ventilation and air conditioning industry and the agricultural and construction secto
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: Shareholder Structure
Shareholder Structure Shareholder structure Regional split of identified institutional investors Great Britain 19% 27% 3i Group and Funds 83.3% Germany Freefloat USA 24% 16.7% Other countries 30% Ameriprise, US (incl. Threadneedle, UK) 10.8% Mondrian Investment Partners, UK 5.3% DWS, Germany 4.9% OD
Slide 27: Financial Appendix
Financial Appendix 27
Slide 28: 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 29: 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 p.a.) in EUR million FY 2010 FY 2011 Q1-3 2012 Reported EBITA 64.9 84.7 83.3 + Restructuring Costs 1.3 1.8 0
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 34
Slide 35: 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 “