TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — H1 2013 Earnings Presentation
59 slides from TKH Group N.V. Cert's earnings presentation, Aug 21, 2013
Slide 1: Half year results 2013
Half year results 2013 TKH Group NV 1 | First half results 2013 | 21-08-2013
Slide 2: Content
CONTENT 1 About TKH Group 2 Developments 1 half year 2013 st 3 Notes to the results 1 half year 2013 st 4 Strategic developments, business drivers & outlook 5 TKH Technologies 6 Vertical focus- and growth markets 2 | First half results 2013 | 21-08-2013
Slide 3: Profile
PROFILE Turnover 2012 € 1.1 billion Geographical distribution Number of employees (FTE) 4,736 of turnover (in %) Technology company Four core technologies Vision & security, communication, connectivity and production systems / system integration The core technologies are combined with software and s
Slide 4: Mission
MISSION TKH intends to be an innovative and leading technology (niche) player in creating combinations of technologies in the form of total solutions with which customers are fully relieved and which lead to larger efficiency, more comfort and larger safety. TKH aims to be an attractive employer, to
Slide 5: Strategy TKH
STRATEGY TKH Value creation Focus on four core technologies in three market segments Telecom Building Industrial Solutions Solutions Solutions Growth drivers Communication, security, care and efficiency Innovations > 15% turnover 5 | First half results 2013 | 21-08-2013
Slide 6: Developments 2003 - 2012
DEVELOPMENTS 2003 - 2012 Turnover EBITA and ROS 6 | First half results 2013 | 21-08-2013
Slide 7: Developments 1st half year 2013
DEVELOPMENTS 1st HALF YEAR 2013 7 | First half results 2013 | 21-08-2013
Slide 8: Highlights 2nd quarter 2013
HIGHLIGHTS 2ND QUARTER 2013 Turnover growth 12.9%, organic 4.3% – Turnover growth in Building and Industrial Solutions Strong organic improvement result Building Solutions – despite challenging market circumstances Solid contribution Augusta Technologie Decrease result Industrial Solutions due to in
Slide 9: Highlights 1st half year 2013
HIGHLIGHTS 1ST HALF YEAR 2013 Turnover growth 11.6%, organic 1.3% – Turnover growth in Building and Industrial Solutions Increase EBITA before one-off expenses H1 2013 with 14.6% Increase ROS to 7.3% (H1 2012: 7.1%) – Improvement in Telecom and Building Solutions, decrease in Industrial Solutions (i
Slide 10: Acquisitions
ACQUISITIONS Park Assist (100%-stake) – Building Solutions – vision & security systems Consolidation as per 1 August 2013 Innovative vision-technology company which focuses with own developed video analytics-technology on car park management . Locations in New York City (USA), Australia and United K
Slide 11: Highlights 1st half year 2013 - Solutions segmentation
HIGHLIGHTS 1st HALFYEAR 2013 Solutions-segmentation 11 | First half results 2013 | 21-08-2013
Slide 12: Telecom Solutions
TELECOM SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2013 2012 in % Turnover 80.1 81.6 - 1.8 EBITA 8.3 7.5 + 10.4 ROS 10.3% 9.2% Organic decrease in turnover: -1.8% Decrease turnover in copper networks due to priority investments in fibre optic networks Increase ROS due
Slide 13: Highlights 1st half year 2013 - Telecom Solutions
HIGHLIGHTS 1ST HALF YEAR 2013 TELECOM SOLUTIONS Segment fibre network systems: turnover +3.3% Optical fibre (cable), connectivity systems and components, active equipment Turnover Q1 lower because of long frost period – turnover caught up in Q2 Growth turnover above market growth European investment
Slide 14: Highlights 1st half year 2013 - Telecom Solutions
HIGHLIGHTS 1ST HALF YEAR 2013 TELECOM SOLUTIONS Segment indoor telecom systems: turnover +1.5% Home networking systems, broadband connectivity, IPTV-software solutions Reluctance in consumer spending level in the ICT-area Priority of investments in peripherals for upgrading broadband connections com
Slide 15: Building Solutions
BUILDING SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2013 2012 in % Turnover 241.5 201.0 + 20.2 EBITA 16.7 3.5 + 373.4 ROS 6.9% 1.8% Organic growth of turnover adjusted for reduction of inventories: + 2.4% ROS H1 2013 excluding Augusta: 3.6% – doubled compared to H1 2012
Slide 16: Highlights 1st half year 2013 - Building Solutions
HIGHLIGHTS 1ST HALF YEAR 2013 BUILDING SOLUTIONS Segment building technologies: turnover -4.6% Energy-saving lighting and light switch systems, energy management systems, care systems, structured cabling systems Reluctance building and construction sector in the Benelux region Mainly growth in care
Slide 17: Highlights 1st half year 2013 - Building Solutions
HIGHLIGHTS 1ST HALF YEAR 2013 BUILDING SOLUTIONS Segment vision & security systems: turnover +67.5% Vision technology, systems for CCTV, video/audio-analysis and detection, intercom, access controls and registration, central control room integration Acquisition Augusta Technologie has an important c
Slide 18: Highlights 1st half year 2012 - Building Solutions
HIGHLIGHTS 1ST HALF YEAR 2012 BUILDING SOLUTIONS Segment connectivity systems: turnover -3.0% Specialty cable, connectivity systems and components for ship building, railways, solar and wind energy as well as installation and energy cable for niche markets Increase turnover, after adjustment of redu
Slide 19: Industrial Solutions
INDUSTRIAL SOLUTIONS (in million € unless otherwise stated) 1st half 1st half ∆ 2013 2012 in % Turnover 265.5 243.7 + 9.0 EBITA 23.6 31.7 - 25.6 ROS 8.9% 13.0% Organic turnover growth: +4.0% The high cost levels combined with preparations for future growth and increasing technological lead resul
Slide 20: Highlights 1st half year 2013 - Industrial Solutions
HIGHLIGHTS 1ST HALF YEAR 2013 INDUSTRIAL SOLUTIONS Segment connectivity systems: turnover -3.0% Specialty cable (systems) and modules for the medical, robotic, automotive and machine building industry Impact raw material prices on turnover: -2.0% Q1 some reluctance for investments in capital goods i
Slide 21: Highlights 1st half year 2012 - Industrial Solutions
HIGHLIGHTS 1ST HALF YEAR 2012 INDUSTRIAL SOLUTIONS Segment manufacturing systems: turnover +21.5% Tyre manufacturing systems, can washers, machine control systems and product handling systems Increase turnover 12.4% due to acquisition of Augusta Order intake in Q2 to record level of € 80 million (Q2
Slide 22: Notes to the results 1st half year 2013
NOTES TO THE RESULTS 1st HALF YEAR 2013 22 | First half results 2013 | 21-08-2013
Slide 23: Change in turnover
NOTES TO THE RESULTS 1ST HALF YEAR 2013 Change in turnover (in € million) 23 | First half results 2013 | 21-08-2013
Slide 24: Geographical distribution of turnover
NOTES TO THE RESULTS 1ST HALF YEAR 2013 Geographical distribution of turnover (in %) 24 | First half results 2013 | 21-08-2013
Slide 25: Development turnover per solution
NOTES TO THE RESULTS 1ST HALF YEAR 2013 Development turnover per solution (in million € unless otherwise stated) Impact raw Turnover 1) Turnover 1) Total material Organic H1 2013 H1 2012 growth prices growth Telecom Solutions 80.1 81.6 - 1.8% - 0.0% - 1.8% Building Solutions 2) 241.5 201.0 + 20.2% -
Slide 26: Notes to the results 1st half year 2013
NOTES TO THE RESULTS 1ST HALF YEAR 2013 Increase gross margin to 40.9% (H1 2012: 40.2%) Margin improvement in Telecom and Building Solutions Contribution higher margin because of acquisition (Augusta) Decrease inventories at production locations Lower gross margin in Industrial Solutions Many projec
Slide 27: EBITA per Solution
NOTES TO THE RESULTS 1ST HALF YEAR 2013 EBITA per Solution (in million € unless otherwise stated) H1 2013 H1 2012 EBITA ROS EBITA1) ROS % % Telecom Solutions 8.3 10.3 7.5 9.2 Building Solutions 16.7 6.9 3.5 1.8 Industrial Solutions 23.6 8.9 31.7 13.0 Other - 5.9 - 5.4 Total 42.7 7.3 37.3 7.1 1) EBIT
Slide 28: One-off expenses and tax
NOTES TO THE RESULTS 1ST HALF YEAR 2013 One-off expenses Acquisition costs in Q2 2012 for mainly Augusta Technologie – € 4.0 million Increase amortisation with € 3.8 million Mainly due to the acquisition of Augusta in July 2012 Exceptional income Release of provision for earn out Result of participa
Slide 29: Change in financial expenses
NOTES TO THE RESULTS 1ST HALF YEAR 2013 Change in financial expenses (in € million) Increase financial expenses with € 2.1 million Increase in average net debt in H1 2013 mainly due to the acquisition of Augusta Lower interest rates because of ended interest rate swaps that have been replaced by swa
Slide 30: Income statement
NOTES TO THE RESULTS 1ST HALF YEAR 2013 (in million €) H1 H1 ∆ 2013 2012 in % Turnover 1) 587.1 526.2 + 11.6 Costs of raw materials / consumables - 347.1 - 314.9 Gross margin 240.0 40.9% 211.3 40.2% + 13.6 Operating costs - 197.3 - 174.0 + 13.4 Recurring EBITA 42.7 7.3% 37.3 7.1% + 14.6 One-off expe
Slide 31: Balance sheet per 30 June 2013
BALANCE SHEET PER 30 JUNE 2013 (in million €) 30-06-2013 31-12-2012 30-06-2012 Assets Non-current assets 563.8 568.7 443.4 Inventories 198.6 196.6 186.6 Construction contracts 36.2 48.3 36.3 Receivables 180.3 152.7 156.5 Cash 69.0 66.5 109.8 Assets held for sale 7.2 7.2 7.2 Total 1,055.1 1,040.0 939
Slide 32: Change in working capital
NOTES TO THE BALANCE SHEET PER 30 JUNE 2013 Change in working capital (in € million) Working capital Use non-recourse factoring € 37.1 million (30 June 2012: € 37.0 million) Use supply chain finance € 17.5 million (30 June 2012: € 17.0 million) 32 | First half results 2013 | 21-08-2013
Slide 33: Change in net debt
NOTES TO THE BALANCE SHEET PER 30 JUNE 2013 Change in net debt (in € million) Increase in net debt Net debt / EBITDA is 1.9 Interest coverage ratio is 9.0 33 | First half 1) Including results non-current 2013received liabilities, | 21-08-2013 from acquisitions
Slide 34: Cash flow statement
CASH FLOW STATEMENT (in million €) H1 2013 H1 2012 2012 Operating result 30.7 25.1 49.4 Depreciation, amortization and impairment 21.6 16.2 42.1 Share and option schemes 1.6 1.3 1.7 Result on divestments - - - 0.2 Change in provisions - 2.1 0.1 0.6 Change in working capital - 31.7 - 11.2 4.8 Cash fl
Slide 35: Ratios
RATIOS H1 FY H1 2013 2012 2012 Working capital / Turnover 1) 15.5% 13.1% 13.5% Net debt / EBITDA 2) 1.9 1.6 1.5 Gearing (net debt / equity) 3) 42.7% 36.0% 39.6% ICR (EBITDA / Financial cost) 2) 9.0 9.8 10.6 Solvency 4) 40.6% 40.8% 42.4% Earnings per ordinary share before exceptional € 0.62 € 1.28 €
Slide 36: Strategic developments, business drivers & outlook
Strategic developments, business drivers & outlook 36 | First half results 2013 | 21-08-2013
Slide 37: Business drivers TKH focus
BUSINESS DRIVERS TKH focus Continuation high investment level innovations and R&D Expansion technology lead on competitors High priority for market share growth based on technology lead Four core technologies: vision & security, communication, connectivity and manufacturing systems Defined 7 vertica
Slide 38: 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 39: Vertical growth markets: fibre optics, tyre building
TKH – vertical growth markets – 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 req
Slide 40: Vertical growth markets: parking, tunnels
TKH – vertical growth markets – 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 t
Slide 41: Vertical growth markets: machine vision, marine, oil & gas
TKH – vertical growth markets – 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 a
Slide 42: Business drivers: potential for above-average performance
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 investment for customers Commodity product
Slide 43: Financial objectives TKH
FINANCIAL OBJECTIVES TKH Progress strategic development on track ROS-target: 9 to 10% ROCE-target: 18 to 20% Solvency-target: > 35% 43 | First half results 2013 | 21-08-2013
Slide 44: Outlook
OUTLOOK The outlook is mixed for the second half of the year in the market segments in which TKH is active. The economic conditions in Europe remain poor Telecom Solutions Further increase investments optical fibre networks – TKH well positioned in European market for further growth Decline turnover
Slide 45: Outlook
OUTLOOK Industrial Solutions Increase turnover level H2 2013 due to higher order intake in recent quarters Worldwide economic uncertainties and related reluctance to invest in capital goods makes it difficult to assess how order intake will develop in the coming quarters – at this moment, the outloo
Slide 46: TKH core technologies
TKH core technologies 46 | First half results 2013 | 21-08-2013
Slide 47: Vision & Security
Vision & Security 47 | First half results 2013 | 21-08-2013
Slide 48: Communication
Communication 48 | First half results 2013 | 21-08-2013
Slide 49: Connectivity
Connectivity 49 | First half results 2013 | 21-08-2013
Slide 50: Manufacturing systems
Manufacturing systems 50 | First half results 2013 | 21-08-2013
Slide 51: TKH vertical focus and growth markets
TKH vertical focus and growth markets 51 | First half results 2013 | 21-08-2013
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Slide 58: Industrial Solutions - Vertical: Machine vision
INDUSTRIAL SOLUTIONS Vertical: Machine vision Medical / Diagnosis Mailing (logistics) system Medicine distribution Automotive assembly Tyre building Surgery robot Quality control 58 | First half results 2013 | 21-08-2013
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