Interpump Group S.p.a. · MIL:IP
Interpump — Q1 2006 Earnings Presentation
25 slides from Interpump's earnings presentation, May 2006
Slide 1: Presentation to Analysts
INTERPUMP GROUP PRESENTATION TO ANALYSTS May, 2006
Slide 2: 2006 Financial Results
2006 Financial Results
Slide 3: First Quarter 2006 Results
First Quarter 2006 Results As far as continuing operations and Hammelmann are concerned, sales and margins grew substantially in the first quarter 2006 Pro -forma Pro-forma Pro -forma Pro-forma (euro/million) (euro/million) 31/03/06 31/03/06 31/03/05 31/03/05 GROWTH GROWTH Sales* 96.3 83.3 +15.6% +3
Slide 4: Interpump Group Evolution
Interpump Group Evolution • Both ROCE and ROE increased substantially in 2005 • Since listing (1996) IPG maintained a very high profitability • no dilution, though growth between 1996 and 2004 was obtained for two thirds through acquisitions ROCE* ROE* (Twelve months) (Twelve months) % 35 % 35 30 RO
Slide 5: Cash Generation
CASH GENERATION IPG has returned substantial amounts of cash to shareholders (euro/million) (euro/million) (1.1.97 (1.1.97 –– 31.12.05) 31.12.05) Operating cash flow 374 Capital expenditures (152) Net cash flow before acquisitions and dividends 222 Dividends (179) (208) Buy back (29) Sub-total 14 Ac
Slide 6: Breakdown of Sales by Sector-Geography 1Q 2006
Breakdown of Sales by Sector-Geography 1Q 2006 Consolidatedsales Consolidated sales1Q 1Q2006 2006euro euro96 96million million Total consolidated sales Hydraulic Sector (€/million 96) Rest of (€/million 45) Rest of the World Italy the World Italy 13% 22% 10% 25% Pacific Pacific Rest of Area Area Eur
Slide 7: 2006 First Quarter Results by Sector
2006 First Quarter Results by Sector (euro/million) Sales EBITDA Sectors 2005* 2006 Growth 2005* 2006 % % Hydraulic 36.9 45.3 +23.1% 7.8 21.2% 10.2 22.6% Industrial High pressure pumps 18.2 19.5 + 7.0% 7.0** 38.3% 5.9 30.3% Hammelmann 11.6 14.9 +28.3% 3.2 27.9% 5.0 33.3% Others 6.1 4.6 - 21.6% 0.3 -
Slide 8: IPG Today
IPG TODAY Company Profile 6
Slide 9: IPG Today
IPG TODAY • Today, IPG is an industrial group active in the mechanical component industry. • Two are the major market niches in which IPG is present: • high pressure plunger pumps - worldwide leader, with about 50% market share in the core part of the business - leading manufacturer (Hammelmann) in
Slide 10: History of Interpump Group
History of Interpump Group 1977 – Foundation of Interpump, manufacturer of high pressure plunger pumps (HPPP) • new conception • technological breakthrough early 80’s – Interpump becomes world leader in HPPP’s • high profitability / high cash generation end 80’s – First acquisitions • components (el
Slide 11: Hammelmann Acquisition
Hammelmann Acquisition • Hammelmann Group is one of the top producers in the world of very high pressure plunger pumps and high pressure systems with strong image and brand name. • Hammelmann Maschinenfabrik GmbH has subsidiaries in U.S.A., China and Spain. • Total acquisition price: 91.5 million of
Slide 12: Net Sales Emerging Markets
Net Sales Emerging Markets (First Quarter *) (euro/million) 2,0 (Euro/million) '31/03/05 1,0 +105% '31/03/06 1,4 +353% +69% 1,2 0,7 0,7 0,3 0,4 0,0 China India Brasil *With Hammelmann 3 months, without Cleaning Sector 10
Slide 13: Future Growth
FUTURE GROWTH Objective • By 2010, total sales of the group should reach € 650 million (+14% per year) With no dilution of ROCE Organic Growth • Market growth in existing mature markets: +5% per year on average • Extra growth in fast developing markets (China, India, Brazil, Eastern Europe) : an add
Slide 14: The Future
THE FUTURE • Free cash flow uses a) acquisitions b) dividends + buyback • Overall objectives a) total sales in 2010 equal or above 650 m€ b) maintain high profitability ROCE = 20% ± 2% ROE = 19% ± 2% c) average total yearly return for shareholders: at least double digit 12
Slide 15: Growing without Forgetting Shareholders' Friendliness
GROWING… without Forgetting Shareholders’ Friendliness • Since the listing (December 1996) until May 3, 2006* total return to shareholders’ (stock price increase + dividends + buy-back) has been higher than 14.6% per year over a period of more than nine consecutive years. *(share price € 6.91) 13
Slide 16: Exhibits
INTERPUMP GROUP Exhibits (Euro/million) 14
Slide 17: Net Sales (Twelve Months)
Net Sales (Twelve Months*) (euro/million) 600 532 493 502 500 452** 426 412 (Euro/million) 400 319 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures ar
Slide 18: Net Sales (Twelve Months), Pro-forma
Net Sales (Twelve Months*) (euro/million) 600 493 502 500 426 412 400 (Euro/million) 319 343** 320** 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Pro-forma Pro-forma *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1
Slide 19: Breakdown of Sales by Sector-Geography 2005
Breakdown of Sales by Sector-Geography 2005* Consolidatedsales Consolidated sales2005 2005euro euro332 332million million Total consolidated sales Hydraulic Sector (€/million 332) Rest of (€/million 155) Rest of the World the World Italy 12% Italy 7% 24% 26% Pacific Pacific Area Area 5% 3% Rest of E
Slide 20: EBITDA (Twelve Months)
EBITDA (Twelve Months*) (euro/million) 90 85 81 83** 80 80 77 75 70 65 61 (Euro/million) 60 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared
Slide 21: EBITDA (Twelve Months), Pro-forma
EBITDA (Twelve Months*) (euro/million) 90 85 80 81 80 75 71** 70 65 61 59** 60 (Euro/million) 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Pro-forma Pro-forma *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 200
Slide 22: Cash Flow (Twelve Months)
Cash Flow (Twelve Months*) (euro/million) 70 60 56** 56 (Euro/million) 49 50 48 47 45 43 40 38 31 30 23 20 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 *2004 and 2005 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures are prepared in ac
Slide 23: Synthesis of Results
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ million) million) 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 531.7 451.5 EBITDA 40.7 46.8 61.1 64.9 79.8 81.4 84.5 75.2 77.3 83.3
Slide 24: Synthesis of Results (Pro-forma)
Synthesis of Results (Twelve Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma million) million) 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004** 2004** 2005** 2005** Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 319.6 343.2 EB
Slide 25: Sale of Cleaning Sector
Sale of Cleaning Sector • Disposal of Cleaning Sector • One of top four world major competitors and the most profitable, but • less profitable than other IPG businesses and • more vulnerable • EV = € 220 million Sales 2004 = € 292.2 million EBITDA 2004 = € 30.7 million (net of minorities € 29.3 mill