Interpump Group S.p.a. · MIL:IP
Interpump — FY2017 Earnings Presentation
29 slides from Interpump's earnings presentation, March 2018
Slide 1: Interpump Group Full-Year 2017 Results
March 2018 Interpump Group Full-Year 2017 Results
Slide 2: Table of Contents and Disclaimer
Table of Contents Welcome! Our Q4 & FY 2017 Financials start on page 2 New to the company and could use an Introduction? See Who we are on page 7 Our yearly update on Markets and Diversification is on page 15 More information on Growth Strategy and Recent M&A on page 20 You will find Governance and
Slide 3: Full-year Consolidated Results
Full-year Consolidated Results FINANCIALS € mn FY 2016 FY 2017 y/y TOTAL SALES 922.8 1,086.5 +17.7% EBITDA 198.5 248.6 +25.3% EBITDA / SALES 21.5% 22.9% NET INCOME (as reported) 94.5 135.6 +43.5% Tax rate 36.4% 29.5% NET INCOME (adjusted*) 129.7 +37.3% Tax rate 32.5% * 2017 Statutory net income incl
Slide 4: Q4 2017 & FY 2017 in detail
Q4 2017 & FY 2017 in detail FINANCIALS € mn Q4 2017 y/y FY 2017 y/y Organic growth in sales +11.4% +9.3% FX contribution -3.7% -0.7% Increase in perimeter +8.9% +9.1% TOTAL REPORTED SALES 267.8 +16.6% 1,086.5 +17.7% EBITDA 56.8 +21.0% 248.6 +25.3% EBITDA / SALES 21.2% 22.9% NET INCOME (as reported)
Slide 5: Results by Sector
Results by Sector FINANCIALS € mn WATER-JETTING Q4 2017 y/y FY 2017 y/y Organic growth in sales +3.3% +3.0% FX contribution -4.3% -1.0% Increase in perimeter +23.9% +19.4% TOTAL REPORTED SALES 97.4 +22.9% 395.6 +21.4% EBITDA 24.6 +27.2% 104.1 +25.3% EBITDA / SALES 25.2% 26.2% HYDRAULICS Q4 2017 y/y
Slide 6: Sales & EBITDA Trend
Sales & EBITDA Trend FINANCIALS € mn - net of Cleaning (dismissed in 2005) and Electric Motors (2011) 1,087 249 923 895 199 180 672 557 527 136 472 400 105 105 389 389 95 92 329 322 87 297 80 74 68 48 05 06 07 08 09 10 11 12 13 14 15 16 17 05 06 07 08 09 10 11 12 13 14 15 16 17 First 12 months’ turn
Slide 7: Financial Ratios
Financial Ratios FINANCIALS Prudent debt policy and satisfactory return on capital employed Net Debt / EBITDA (12 M) Return On Capital Employed (12M) Net of treasury stock and including commitments for purchase of investments Operating profit / (consolidated shareholder's equity + net debt) 5x 25 DE
Slide 8: Who we are
Who we are INTERPUMP GROUP Public company (~75% free float) Listed at the Milan Stock Exchange since 1996 (ticker: IP.MI) Among the largest market caps in the STAR segment Stock is eligible for PIRs (government-sponsored saving investment plans for Italian households with significant tax advanta
Slide 9: Diversified across every dimension
Diversified across every dimension Diversification of our business is the key to our resilience and low overall cyclicality Both divisions have moved from the initial 100% concentration in one sector We sell our products all over the world, to a wide range of applications across either through our i
Slide 10: Know-How & Innovation: Competitive Scenario Water-Jetting
WATER Competitive Scenario JETTING Flow Handling Niche of Very High Pressure Plunger Pumps Food, Cosmetics & Pharma (estimated market size: <1bn/yr) (estimated market size: € 8 bn/yr) Wide High Know-How & Innovation Product Range Narrow Low Low High Low High Market Penetration Market Penetration GRO
Slide 11: Competitive Scenario Hydraulics
Competitive Scenario HYDRAULICS A fast-growing global player in a huge market (est. € 40 bn/yr) with countless opportunities for acquisitions Wide Product Range Narrow Low Market Penetration High Markets served, geographical presence 10
Slide 12: Main Companies, Brands and Products: Water-Jetting
WATER Main Companies, Brands and Products JETTING December 2017 – Total employees: 1,717 High-pressure Plunger Pumps Flow Handling Components High-pressure pumps Pumps, mixers, Plunger pumps Production and rental Specialized solutions (up to 1,500 HP - Homogenizers for components & high flow/
Slide 13: Main Companies, Brands and Products: Hydraulics
Main Companies, Brands and Products HYDRAULICS December 2017 – Total employees: 4,195 (GS-Hydro not included) Power Take-Offs Valves Rubber hoses INTERPUMP HYDRAULICS, Directional Control Valves I.M.M. Muncie Power Products, Hypress PZB, Hydrocar, Takarada Interpump Hose Cylinders Metallic fle
Slide 14: Application examples: Water-Jetting
WATER Application examples JETTING FOOD, COSMETICS, PHARMACEUTICAL AUTOMOTIVE Pumps, valves, processing and cleaning systems Deburring of common-rail engine heads Agitators (including magnetic trasmission) Cutting of bodywork and other materials High-pressure homogenizers Cleanup of welded seals Wat
Slide 15: Application examples: Hydraulics
Application examples HYDRAULICS TRUCK OUTFITTERS EARTH-MOVING Tipping trucks Excavators and mini-excavators Trash collection - Sewer cleaning Backhoe loaders Firefighting - Snow plowing Skid-steer loaders Towing - Car Carriers Crane trucks AGRICULTURE TRUCK MANUFACTURERS Farm tractors Factory-fitted
Slide 16: Diversification by sales channel and application field
Diversification by sales channel and application field Total sales by channel Sales by Application Field 2017 Total Turnover: Euro 1,087 million Dealers Truck 16% 30% Shipyard/Marine 1% Final & Other 4% OEM's Cleaning 6% 70% Food & Pharma Contractors 5% 7% Dealers (30%) not included Other Industries
Slide 17: Diversification is a never-ending journey
Diversification is a never-ending journey Significant reduction of cyclicality and correlation achieved over the past decade WATER JETTING HYDRAULICS Diversification into many application sectors with different cycles Ongoing expansion into sectors with little or no cyclicality No single sector is c
Slide 18: International Profile: Interpump in the World
International Profile: Interpump in the World NORTHERN ITALY Company headquarters Foreign subsidiary Local branch 17 Other plant / office Map data ©2018 GeoBasis-DE/BKG (©2009), Google, INEGI
Slide 19: International Profile: Geographical breakdown
International Profile Geographical breakdown of sales and costs (2017) Sales Total Costs Rest of the World North 10% Italy 18% America 22% Eastern Europe North 6% America Italy 27% Rest of the 50% World 14% Rest of Europe 29% China 4% Germany Rest of Europe India 3% 7% 7% Latin America 3% 18
Slide 20: International Profile: Focus on emerging markets
International Profile Focus on emerging markets: a well-balanced presence CHINA (大陆) INDIA SOUTH KOREA BRAZIL New Delhi Pyeongtaek Seoul Beijing Brasília Mumbai Shanghai Pune Rio de Janeiro Busan Bangalore São Paulo Chennai Guangzhou Porto Alegre Presence through Presence through Presence through Pr
Slide 21: M&A: a Successful Track Record
M&A: a Successful Track Record 25 companies acquired since the IPO in 1996 representing roughly 2/3 of each year’s growth 3 kinds of acquisitions: Completing the product range, reinforcing competitive positioning, enhancing distribution Bolt-on acquisitions: no disruption in activity, immediate syne
Slide 22: Acquisition & Diversification Timeline: Water-Jetting
WATER Acquisition & Diversification Timeline JETTING Applications: from cleaning to countless Pumps and other machines for household and industrial cleaning NLB: selling and renting Hammelmann: focus on high pressure systems to a large and Acquisition of a control stake higher-pressure pumps. in Ino
Slide 23: Acquisition & Diversification Timeline: Hydraulics
Acquisition & Diversification Timeline HYDRAULICS Products: from PTOs only to integrated hydraulic kits, systems and services PZB & Hydrocar, Italian manufacturers of power take-offs. Galtech, MTC Muncie: Interpump valves becomes world American Walvoil reinforces leader in PTOs Mobile Power presence
Slide 24: 2018 Acquisitions: GS-Hydro
2018 Acquisitions: GS-Hydro HYDRAULICS - a world leader in design and execution of piping systems in the industrial, marine, and offshore sectors Estimates for 2017 (€ mn) - revolutionized the piping industry with the SALES 60 invention of “non-welded” pipe assembly EBITDA 4 technology (cleaner and
Slide 25: Governance and Managerial Structure
Governance and Managerial Structure as of 31 December 2017 Board of Directors = independent Operations Management Committee Fulvio Montipò Chairman of the Board and Chief Executive Officer Paolo Marinsek Deputy Chairman of the Board Franco Garilli Lead Independent Director General Manager, Massimili
Slide 26: Shareholders, Stock Performance, Analyst Coverage
Shareholders, Stock Performance, Analyst Coverage Updated 13/03/2018 Shareholder Structure Interpump Stock Performance Source: CONSOB/Company Total return to shareholders since the IPO: 14.8% per year (assuming dividend reinvestment and participation to the ‘09 capital increase) IPG HOLDING Share pr
Slide 27: Appendix: Synthesis of results
Appendix Synthesis of results Euro/million 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 531.7 331.6 364.9 432.2 424.5 342.9 424.9 472.3 527.2 556.5 672.0 894.9 922.8 1086.6 EBIT
Slide 28: Appendix: Free Cash Flow
Appendix Free Cash Flow (12 Months) (euro/million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cash Flow from Operations 25.2 54.6 60.8 65.6 65.3 95.8 120.2 138.0 172.4 Change in Trade Working Capital 44.4 10.1 (21.8) (12.3) (1.7) (23.7) (6.6) (12.2) (30.8) Capex (9.2) (8.7) (11.8) (15.8) (29.8) (3
Slide 29: Manager's declaration
The Manager in charge of preparing the company’s financial reports declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’Enz