Emak S.p.a. · MIL:EM
Emak — H1 2002 Earnings Presentation
17 slides from Emak's earnings presentation, Oct 9, 2002
Slide 1: Company results 2002 H1 Presentation to the Financial Community
Company results 2002 H1 Presentation to the Financial Community Milan, October 9, 2002
Slide 2: Contents
Contents Emak - the gardening technology Emak Group structure Turnover breakdown Economic and financial data Market conditions and outlook Objectives Strategy 2002 result estimation 1
Slide 3: Emak - the gardening technology: Mission
Emak - the gardening technology Mission developing, manufacturing, marketing and servicing gardening and forestry portable equipments With the aim of anticipating and exceeding the expectation of end users In order to create wealth for shareholders/stakeholders 2
Slide 4: Emak Group structure
Emak Group structure At 06.30.2002 At 12.31.2001 EMAK SpA EMAK SpA COM AG Srl COM AG Srl 99,4% 99% SUM INISTROS COM OTO SA SUM INISTROS COM OTO SA (Spagna) 90% (Spagna) 90% HEM M ING & WOOD LTD HEM M ING & WOOD LTD (UK) 51% (UK) 100% SAWTEC LTD SAWTEC LTD (UK) 100% (UK) 100% KENS INTERNATIONAL SA (B
Slide 5: Emak Group as at 12.31.01
7 Ene GN Ox: OG fA 7m SF EC Vee ER Dive www.emak.it
Slide 6: Turnover breakdown by geographical area
Turnover breakdown Sales distribution by geographical area Area 1H 2001H1 2002H1 Italy 21,3 23,1% 21,0 24,0% Europe 53,6 58,2% 52,4 59,9% - Western Europe 43,5 47,2% 40,0 45,8% - Eastern Europe 10,1 11,0% 12,4 14,1% Rest of the world 17,2 18,7% 14,1 16,1% - North America 7,2 7,9% 4,7 5,4% - South Am
Slide 7: Turnover breakdown by product line
Turnover breakdown Sales distribution by product line Year 2001H1 2002H1 Product Brushcutters - Decespugliatori 21,3 23,1% 21,3 24,3% Chainsaws - Motoseghe 16,0 17,4% 12,9 14,8% Lawnmowers - Rasaerba 13,8 15,0% 13,7 15,7% Garden Tractors - Trattorini 12,1 13,1% 10,2 11,6% Others (pumps, blowers, hed
Slide 8: Economic and financial data: Consolidated P&L Accounts
Economic and financial data Consolidated P&L Accounts 2001 % 2001H1 % 2002H1 % 146,7 100% Turnover 92,1 100% 87,5 100% 20,6 14,1% Ebitda 14,7 15,9% 15,2 17,4% 14,8 10,1% Ebit 11,7 12,7% 12,3 14,1% Net financial (1,6) 1,1% expenses (1,1) 1,2% (1,0) 1,1% 13,1 8,9% Income before taxes 10,5 11,4% 11,1 1
Slide 9: Economic and financial data: Consolidated assets and liabilities
Economic and financial data Consolidated assets and liabilities 2001 2001H1 2002H1 24,7 Net fixed assets 20,4 25,2 60,7* Net current assets 61,5* 57,9* 85,4* Total invested capital 81,9* 83,1* 58,7* Net Equity 55,7* 61,0* 0,3* Minority interests 0,7* 0,5* (26,4) Net financial position (25,5) (21,6)
Slide 10: Market conditions and outlook
Market conditions and outlook Europe and USA: demand mostly for replacement products and correlated to general economic trend Developing countries: increasing demand. High potentiality in Russia, China and Far East. South America: demand slow down determined by local crisis (Argentina, Venezuela). 9
Slide 11: Market conditions and outlook
Market conditions and outlook Stock low levels in Europe due to favourable weather conditions in 2002. Evolution and selection of the dealer’s network (fewer and bigger). DIY organizations with increasing shares generally everywhere especially with lawnmowers and electric products. More and more str
Slide 12: Objectives
Objectives Growth of sales turnover higher than market increase Growth of operative profitability Optimisation of invested capital 11
Slide 13: Strategy
Strategy Strengthening of competitive position through: • Product innovation: • development of “clean” engines to meet new emission regulations • development of new products for range updating and improvements •Product cost reduction: • value analysis •outsourcing • production equipment investments
Slide 14: Strategy
Strategy Strengthening of distribution network: • Marketing activities aimed to strengthen Oleo-Mac and Efco brand awareness and customer loyalty •Focus on markets directly controlled by Emak: consolidation of leadership position in Italy and increased market shares of Emak subsidiaries in F, D, UK,
Slide 15: Strategy
Strategy Working capital reduction: • Business simplification • Improvement of forecast and planning activities 14
Slide 16: 2002: results estimation
2002: results estimation 2002 E 2001 Turnover 146 mln € 147 mln € EBITDA/Turnover 14,9% 14,1% EBIT/Turnover 11,5% 10,1% Higher profitability due to: • more favourable products and country/channel mix •cost efficiency 15
Slide 17: In collaboration with AIAF and Borsa Italiana S.p.A.
In collaboration with AIAF and BORSA ITALIANA S.P.A. 16