Arbonia Ag · SIX:ARBN
Arbonia — H1 2017 Earnings Presentation
28 slides from Arbonia's earnings presentation, Aug 10, 2017
Slide 1: Arbonia – H1 2017 Results – 10 August 2017
Arbonia – H1 2017 Results – 10 August 2017 Alexander von Witzleben, Chairman of the Board of Directors, CEO Felix Bodmer, CFO 1
Slide 2: H1 2017 summary: Overview key metrics
H1 2017 summary Overview key metrics All figures in CHF M Net revenues EBITDA2 Net debt +36%1 6.0% 7.1% 1.9x 1.6x 624.4 459.0 44.6 27.3 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 175 225 EBITDA-margin Leverage ratio Arbonia group achieved critical Improved EBITDA profile driven Divestment of Loose
Slide 3: Agenda
Agenda 1. H1 2017 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – H1 2017 results – 10 August 2017 3
Slide 4: Income Statement Including one-time effects
Income Statement Including one-time effects In CHF M 1-6/2017 in % 1-6/2016 in % Net revenues 624.4 100.0 459.0 100.0 Cost of material and goods -295.2 -47.3 -217.7 -47.4 Personnel expenses -219.1 -35.1 -172.6 -37.6 Other operating expenses -95.6 -15.3 -67.9 -14.8 EBITDA 44.6 7.1 27.3 6.0 Depreciati
Slide 5: Reconciliation to adjusted numbers
Reconciliation to adjusted numbers 1-6/2017 without Actual Building one-time In CHF M 1-6/2017 Techn. Windows Others effects Net revenues 624.4 624.4 EBITDA 44.6 1.5 -0.6 0.3 45.9 EBIT 12.6 -0.6 13.2 Group result from continuing operations 5.4 -1.1 0.1 1.2 6.2 Presentation of the respective one-time
Slide 6: Adjusted Income Statement Without one-time effects
Adjusted Income Statement Without one-time effects In CHF M 1-6/2017 in % 1-6/2016 in % Net revenues 624.4 100.0 459.0 100.0 Cost of material and goods -295.9 -47.4 -217.7 -47.4 Personnel expenses -217.4 -34.8 -171.7 -37.4 Other operating expenses -95.4 -15.3 -72.7 -15.8 EBITDA 45.9 7.3 23.3 5.1 Dep
Slide 7: Result of divestment Coating
Result of divestment Coating Expenses compensate positive result Result from divestment Coating 30/06/2017 Result from discontinued operations after Taxes KCHF 1′198 Profit from disposal of discontinued operations KCHF 1′294 Costs of disposal (Consultancy fees, Fees, Taxes,…) KCHF -6′013 Result from
Slide 8: Net Revenues by Division
Net Revenues by Division Balanced portfolio with 3 strong divisions Net revenues by Division – incl. Looser (without Coating) Net revenues by Division Net revenues31/12/2016 by Division 31/12/2016 30/06/2017 5% (5%) 5% (4%) 30% (30%) 38% (38%) 41% (38%) 31% (33%) 27% (27%) 23% (25%) Building Technol
Slide 9: Net Revenues by Region
Net Revenues by Region Germany most important market Net revenues by Region – Net revenues by Region – incl. Looser (without Coating) incl. Looser (without Coating) 31/12/2016 30/06/2017 30% (30%) 31% (33%) 30% 29% 39% (37%) 41% Switzerland Germany RoW Switzerland Germany RoW Note: Figures in bracke
Slide 10: Development of Net Revenues by Division
Development of Net Revenues by Division Organic growth of -1.8% Organic Net revenues as Δ Acqui- growth 1-6/2017 1-6/2016 Currency Organic reported 2), 3) Year sition incl. Effects growth1 in CHF M Total Effects Looser Doors1 Arbonia 624.4 459.0 +36.0% -0.8% +38.6% -1.8% -1.0% Building 259.1 232.4 +
Slide 11: EBITDA- / EBIT-margins per Division
EBITDA- / EBIT-margins per Division1 Material expenses impact margins 25% 23.5% 20% 15% EBITDA 10.7% 9.8% 10.4% 10% margin, 5% 4.1% adjusted -0.3% 6/2016 0% -5% -1.0% 6/2017 Building Windows Doors Industrial Technology Services 15% 10% 9.0% 6.9% 6.2% 5% 4.5% EBIT 2.1% margin, 0% 6/2016 adjusted -5%
Slide 12: Balance Sheet: Further improvement of equity ratio
Balance Sheet Further improvement of equity ratio In CHF M 1'600 1'400 Current Current Current Current assets assets liabilities liabilities 1'200 38.7% 35.7% 38.7% 39.5% 1'000 Non-current Non-current 800 liabilities 12.3% liabilities 12.7% 600 400 Non-current Non-current Shareholders' Shareholders'
Slide 13: Free Cash Flow, adjusted
Free Cash Flow, adjusted1 Higher capex compensate operational improvements In CHF M 60 53 2 40 20 0 -6 -20 -24 -40 -45 -40 -60 -80 -70 06/2013 6/2014 6/2015 6/2016 6/2017 1 Free cash flow without acquisition / disposal of subsidiaries, adjusted 2 Free cash flow including acquisition / disposal activ
Slide 14: Net Debt / Leverage Ratio
Net Debt / Leverage Ratio1 Benefit from sale of Coating business In CHF M 0 0.0x -22 -50 0.5x -65 -100 1.0x -150 1.5x -151 -175 -200 2.0x -222 -225 -250 2.5x -300 3.0x 2013 2014 2015 6/2016 2016 6/2017 Leverage Ratio Net Debt 1 Leverage ratio = Net debt / EBITDA Arbonia – H1 2017 results – 10 August
Slide 15: Agenda
Agenda 1. H1 2017 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – H1 2017 results – 10 August 2017 15
Slide 16: Restructuring and repositioning of Arbonia
Restructuring and repositioning of Arbonia On track to complete 3-year transformation Selective key measures1 Phase I Phase II Phase III 2018 (2015 H2) (2016) (2017) 1 Initiate closure of 4 Relocate PVC windows Integrate Koralle’s sho- Relocation of production sites in CH from Villeneuve t
Slide 17: Relocation of production footprint
1 Relocation of production footprint Progressing according to plan Heating Technology Sanitary Equipment Windows • Relocation of special radiators • Integration of Koralle’s shower • Relocation of wood/alu production from Arbon (CH) to production into new Plattling production from Altstätten Stříbro
Slide 18: Divisional Strategies: Building Technology
2 Divisional Strategies Building Technology All figures in CHF M Key figures H1 20171 Operational priorities H1 2017 • Successful profit protection plan in place to 10.7 9.8 absorb increase in material costs (steel) 232.4 259.1 • Continued investment program at Plattling (GER) and Stříbro (CZE) site
Slide 19: Divisional Strategies: Windows
2 Divisional Strategies Windows All figures in CHF M Key figures H1 20171 Operational priorities H1 2017 • Strong order entry levels in H1 2017 will fully -1.0 -0.3 materialize in H2 2017 151.4 142.2 • Continued complex production relocation process from Switzerland to Slovakia (PVC) Revenues and Ea
Slide 20: Divisional Strategies: Doors
2 Divisional Strategies Doors All figures in CHF M Key figures H1 20171 Operational priorities H1 2017 • Financial and operational integration of Looser 4.1 10.4 acquisitions (Prüm, Garant, Invado) 193.8 • Ongoing transformation from Switzerland focused niche provider to European market 75.1 Revenue
Slide 21: Lean industrial holding: Disposal of non core assets
3 Lean industrial holding Disposal of non core assets Coating Industrial Services Real estate • All coating activities divested • Divestment process for • Disposal of non operational in H1 2017 Condecta initiated real estate assets ongoing • Total realized enterprise value • On track to finalize • S
Slide 22: Agenda
Agenda 1. H1 2017 Overview of key financial parameters 2. Transformation of Arbonia Update on key measures 3. Outlook Short- and long-term guidance Questions Arbonia – H1 2017 results – 10 August 2017 22
Slide 23: Development of our key markets (Top 4)
Development of our key markets (Top 4) Stable to positive outlook for 2017 Top 4 markets represent ~80% Germany (No. 1) Market growth 2017 vs. 2016 of total sales of Arbonia Group1 Residential Residential Non- New Renovation Residential Market growth Poland (No. 3) 2017 vs. 2016 +4.0% 0.0% +0.5% Res
Slide 24: German residential construction market: Long-term outlook
German residential construction market Long-term outlook Housing completions (k) 400 337 326 315 289 292 292 291 300 260 245 220 232 220 Catch-up in 192 Expected completion 200 181 later years 164 lag implied by capacity lags 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 202
Slide 25: Guidance of Arbonia Group
Guidance of Arbonia Group1 Transformation on track, guidance confirmed Guidance 20172 Guidance 2018 Solid H1 numbers and Consequent execution positive order situation of long-term measures Sales Sales CHF ~1’300 M CHF ~1’400 M EBITDA3 EBITDA3,4 CHF >110 M CHF ~150 M Sustainable positive free cash fl
Slide 26: Questions?
Questions? Arbonia – H1 2017 results – 10 August 2017 26
Slide 27: Disclaimer
Disclaimer Arbonia AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoe
Slide 28: Thank you
ARBONIA @& Thank you 28