Slide 1: NORMA Group First Quarter Results 2012
NORMA Group First Quarter Results 2012 Investors’ & Analysts’ Conference Maintal, May 14th, 2012 Customer Value through Innovation
Slide 2: Highlights Q1 2012
Highlights Q1 2012 Sales Sales increased by 6.3% to EUR 159.7 million (Q1 2011: EUR 150.3 million) EBITA EBITA of EUR 29.2 million up from EUR 28.4 million y-o-y Equity Equity ratio further improved to 40.6% Net debt decreased to EUR 167 million (net of derivative liabilities of EUR 20 million) from
Slide 3: Good Start into 2012 Confirms Full Year Guidance
Good Start into 2012 Confirms Full Year Guidance Sales Development in EUR million Growth Development Sales 2011 2012 Change Change in % Organic Acquisitive Currency Growth Growth Effects Q1 150.4 159.7 +9.3 +6.3% +5.1% +0% + 1.2% EUR 9.3 million on top of strong previous year quarter sales includi
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 32% of total sales EJT way-to-market increased by 3% to 72% of total sales Majority of sales goes to non-automotive industrials, distributors as well as general tiers Sales to industrial suppliers
Slide 5: Sustainable Margin Level Continues into 2012 as Planned
Sustainable Margin Level Continues into 2012 as Planned 2010 2011 2012 in EUR million H1 H2 FY H1 H2 FY Q1 Sales 230.5 259.9 490.4 295.9 285.5 581.4 159.7 Adjusted EBITA 42.1 43.3 85.4 53.9 48.8 102.7 29.2 Adjusted EBITA 18.3% 16.7% 17.4% 18.2% 17.1% 17.7% 18.3% Margin 5
Slide 6: Material Consumption improved
Material Consumption improved Material consumption improved to 44.6% Personnel costs affected especially by focussing on APAC region Material Costs (in EUR million) Personnel Expenses (in EUR million) 100 45.3% 44.6% 50% of sales 100 50% of sales 23.8% 24.7% 50 71.2 25% 50 25% 68.1 39.5 35.7 0 0
Slide 7: No Operational Adjustments in Q1 2012
No Operational Adjustments in Q1 2012 in EUR million Reported PPA adjustments adjusted Sales 159.7 0 159.7 EBITDA 32.7 0 32.7 EBITDA margin 20.5% 20.5% EBITA 29.1 0.1 29.2 EBITA margin 18.2% 18.3% EBIT 27.2 1.4 28.6 EBIT margin 17.0% 17.9% Net Profit 16.3 1.0 17.3 Net Profit margin 10.2% 10.8% EPS (
Slide 8: Sustainable Development of pro forma EPS in FY 2012
Sustainable Development of pro forma EPS in FY 2012 Strong improvement of reported EPS due to last year’s adjustments pro forma EPS (in EUR) Reported EPS (in EUR) 1 1 0,5 0,5 0.57 0.54 0.51 0.03 0 0 2011 2012 2011 2012 no. of shares 31.9 31.9 24.9 31.9 in million net income in 18.1 17.2* 0.8 16.3
Slide 9: Very Strong Operating Net Cash Flow in Q1 2012
Very Strong Operating Net Cash Flow in Q1 2012 Operating net cash flow in EUR million Q1 2011 Q 1 2012 Variance EBITDA* 32.0 32.7 2.2% Δ ± Working capital -16.8 -10.5 -37.5% Operating net cash flow before investments from operating 15.2 22.2 46.1% business Δ ± Investments from operating business -8.
Slide 10: Net Debt, Financing and Equity Ratios
Net Debt, Financing and Equity Ratios Net Debt (in EUR million) Equity Ratios 400 31.03.2012 31.12.2011 177* 167* Equity Ratio (Equity / Balance 300 40.6% 39.5% Sheet Total 200 245 245 Equity Ratios 100 excluding derivatives* 31.03.2012 31.12.2011 0 -68 -78 Leverage (net debt* / adjusted 1.4 x 1.5 x
Slide 11: 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 12: Outlook 2012 – Company Guidance Confirmed
Outlook 2012 – Company Guidance Confirmed Sales growth between 3% and 6% (plus EUR 10 million from acquisition) at least on the level of the two previous years EBITA margin (17.4% and 17.7% respectively) Investments in R&D approx. 4% of EJT-sales Material ratio approx. 45% of sales Financial result
Slide 13: Strategy Appendix
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Slide 14: Highlights 2011 - Strategy
Highlights 2011 - Strategy Acquisitions Integration of the US acquisitions R.G. Ray and Craig Assembly successfully concluded in Q1/2011 APAC Establishing Singapore headquarters increases focus in region Greenfield Plant opening in Thailand in early 2011 APAC Greenfield Start of production in Serbia
Slide 15: Outlook 2012 - Strategy
Outlook 2012 - Strategy 1 Continue international expansion of sales network and production footprint 2 Continue to explore business opportunities in APAC 3 Increase China capacity to enable expansion 4 Expand and explore opportunities in Brazil Consolidate Maintal activity by returning 2 leased buil
Slide 16: 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 17: 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 18: NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value
NORMA Group Provides Mission-Critical Products and Solutions with Clear Added-Value A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers 18
Slide 19: 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 20: 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 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: NORMA Group Management Team
NORMA Group Management Team Werner Deggim Dr. Othmar Belker Bernd Kleinhens John Stephenson Chief Executive Officer Chief Financial Officer Business Development Chief Operating Officer 26
Slide 27: Shareholder Structure
Shareholder Structure Free Float at 56.2% including major institutional investors Lock-up period of major shareholders expired in October 2011 Shareholder structure – pre IPO Shareholder structure – today 3i Group and 8.3% 3i Group and Funds 73.0% Funds MABA CYPRUS MABA CYPRUS 35.5% 56.2% Ltd. L
Slide 28: Financial Appendix
Financial Appendix 28
Slide 29: Highlights 2011 – Financials (I)
Highlights 2011 – Financials (I) Record sales of EUR 581.4 million (2010: EUR 490.4 million) Sales growth of 18.5% including organic growth of 13.4% Record adjusted EBITA of EUR 102.7 million Adjusted EBITA first time in company history > EUR 100 million (2010: EUR 85.4 million) Margin Further margi
Slide 30: Highlights 2011 – Financials (II)
Highlights 2011 – Financials (II) Net Debt Net debt down to EUR 176.7 million from EUR 338.6 million in 2010* Cash Flow Excellent adjusted net operating cash flow of EUR 66.8 million (2010: EUR 51.7 million) Visibility Order book at year end at EUR 218.6 million (2010: EUR 188.0 million) Guidance Sa
Slide 31: Sales by regional reporting segments
Sales by regional reporting segments Reporting segment Asia-Pacific recorded direct sales of 6.1% in 2011. The de-facto share including all NORMA exports into the Asia-Pacific region is estimated at around 10% of our total sales (sales by destination) Increase of Americas region driven by US acq
Slide 32: 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 33: 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 2012 Reported EBITA 64.9 84.7 29.1 + Restructuring Costs 1.3 1.8 0 +
Slide 34: 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 35: 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 36: Stable TWC Ratio despite 13.4% Organic Growth
Stable TWC Ratio despite 13.4% Organic Growth EUR million 200 20% 18.1% 18.3% 150 15% 81 100 70 14.3% 13.9% 10% 50 65 13.2% 67 11.5% 5% 0 -46 * -41 -2 -50 0% 2010 2011 Inventories Trade accounts payable Trade receivables Trade Working Capital * plus payments related to IPO costs 2010 (EUR 2 million)
Slide 37: Solid Balance Sheet
Solid Balance Sheet EUR million 649 649 700 600 256 500 non-current assets 63.2% total equity 39.5% 410 400 300 non-current liabilities 43.8% 284 200 171 current assets 26.3% 100 109 current liabilities 16.7% 68 liquid assets 10.5% 0 Assets Liabilities 37
Slide 38: 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 39: Cash Flow Statement
Cash Flow Statement Adjusted operating net cash flow 11.5% of sales (2010: 10.5%) 10.5% of sales 11.5% of sales 100 80 7 - 10 60 18 40 67 52 20 0 adjusted operating ∆ adjusted EBITDA ∆ Working Capital ∆ investments from adjusted operating net cashflow 2010 operating business net cashflow 2011 39
Slide 40: 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 41: Thank you for your attention
Thank you for your attention Financial Calendar Date Annual General Meeting 23.05.2012 Publication of Q2 Results 2012 14.08.2012 Publication of Q3 Results 2012 13.11.2012 Customer Value through Innovation 41
Slide 42: 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 42
Slide 43: 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 “