Slide 1: Presentation of First Quarter Results 2011
Presentation of First Quarter Results 2011 Werner Deggim, Chief Executive Officer NORMA Group AG Dr. Othmar Belker, Chief Financial Officer Maintal, 17 May 2011 Andreas Troesch, Director Investor Relations 1
Slide 2: 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 “
Slide 3: Successful IPO on 8 April 2011
Successful IPO on 8 April 2011 Total Number of Shares 31,862,400 Total Issue Volume € 336 million € 147 million from Capital Increase from Newly Issued Shares Proceeds € 189 million from Secondary Placement by Selling Shareholders Proceeds intended were used for the repayment of the € 54 million mez
Slide 4: Strong growth in the first quarter of 2011 with an excellent adjusted EBITA margin
Strong growth in the first quarter of 2011 with an excellent adjusted EBITA margin Revenue € 150.3 m Adj. EBITA € 28.4 m Revenue growth 41.7 % Adj. EBITA margin 18.9 % (Q1/2011 vs. Q1/2010) Revenue breakdown by Revenue breakdown Revenue breakdown by reporting segments by way-to-market end-market in
Slide 5: Product portfolio for engineered joining solutions addressing key megatrends
Product portfolio for engineered joining solutions 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 reductio
Slide 6: Historic organic growth track record
Historic organic growth track record Historic revenue development (1997 – 2010) €m 500 490 458 400 385 330 1 300 277 242 229 198 207 89 200 174 182 138 150 121 100 188 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 HGB IFRS Rasmussen as the predecessor of the NORMA Group has
Slide 7: Market leader in attractive engineering niche markets with strong growth prospects
Market leader in attractive engineering niche markets with strong growth prospects Clear global market leader in clamp/connect2 Excellent growth outlook across end-markets Sales €m End-market Joining (year) 4901 (2010-15 CAGR) production unit technology 500 ~3% Other growth market growth ~26% Fluid
Slide 8: 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 9: Two distinct ways-to-market providing unique customer access and market intelligence
Two distinct ways-to-market providing unique customer access and market intelligence Unique business model with two distinct ways-to-market Engineered Joining Technology (EJT) Distribution Services (DS) ~69% of Q1/2011 sales1 ~31% of Q1/2011 sales1 Innovation and product solution partner for custome
Slide 10: Significant growth and value creation opportunity through synergistic acquisitions
Significant growth and value creation opportunity through synergistic acquisitions Taken advantage of market fragmentation Focus on operational excellence “Global Excellence” program Continuous focus on optimisation of cost structure 2010 Significant cost savings achieved in 2010, with higher
Slide 11: Continuation of growth track after successful management of the economic downturn in 2009
Continuation of growth track after successful management of the economic downturn in 2009 Revenue Gross profit 600 350 €m 55.3% 60% of sales 54.9% 56.0% 490 300 500 458 275 50% 251 250 400 40% 330 200 182 300 30% 150 200 20% 100 100 10% 50 0 0 0% 2008 2009 2010 2008 2009 2010 Personnel expenses Adju
Slide 12: First quarter results prove strong start into FY 2011
First quarter results prove strong start into FY 2011 Revenue Gross profit €m €m 57.5% of60% sales 56.6% 160 150.3 100 85.0 50% 140 27.1% organic growth 80 120 106.1 40% 100 12.4% 61.0 60 acquisitive growth 30% 80 40 60 20% 40 20 10% 20 0 0 0% Q1/2010 Q1/2011 Q1/2010 Q1/2011 Adjusted personnel expen
Slide 13: Strong growth and strict cost management leads to margin improvement in the first quarter
Strong growth and strict cost management leads to margin improvement in the first quarter Adjusted1 EBITA and EBITDA in € million Q1/2011 percent of revenue Q1/2010 percent of revenue Revenue 150.3 100% 106.1 100% Changes in inventories of finished goods and work in progress 2.8 2.1 Raw materials an
Slide 14: Balance sheet in the first quarter does not yet reflect the positive effects of the IPO and refinancing
Balance sheet in the first quarter does not yet reflect the positive effects of the IPO and refinancing (all amounts in € million) 31 March 2011 31 Dec 2010 (all amounts in € million) 31 March 2011 31 Dec 2010 Assets Equity and liabilities Non-current assets Equity Goodwill 217.3 221.7 Subscribed ca
Slide 15: Outlook 2011
Outlook 2011 We expect long-term organic growth for the Group in the order of near to 10% (provided the global economic development continues unchanged and the euro does not get any stronger against NORMA Group’s trading currencies – particularly the US dollar) On top, the consolidation of the G
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: Contact
Contact Andreas Troesch Director Investor Relations Phone: +49 6181 403-554 Fax: +49 6181 403-1554 Mobile: +49 1520 910 3619 E-mail: Andreas.Troesch@normagroup.com 17
Slide 18: Appendix
Appendix 18
Slide 19: NORMA Group management team
NORMA Group management team Werner Deggim Dr. Othmar Belker Bernd Kleinhens John Stephenson Chief Executive Officer Chief Financial Officer Sales & Business Development Chief Operating Officer 19
Slide 20: 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 20
Slide 21: 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 22: Tighter emission regulations drive increased joining technology content
Tighter emission regulations drive increased joining technology content Today 2015 EURO 5 EURO 6 Europe EURO 4 EURO 3 EPA '10 EPA '15 NAFTA EPA '04 EPA '07 EPA '00 JPN '09 JPN '14 J. '19 Japan JPN '98 JPN '02 JPN '05 EURO 3 EURO 5 EURO 6 Brazil EURO 2 EURO 1 EURO 4 EURO 5 EURO 6 Russia EURO 1 EURO 2
Slide 23: Pro-active FCF management
Pro-active FCF management Operating free cash flow (FCF) Trade working capital €m % of revenues €m 200 18.5% 18.0% 20% 17.7% 60 150 91 85 15% 59 100 65 54 45 10% 50 50 50 70 49 45 5% 0 (19) (30) (48) (50) 0% 40 2008 2009 2010 36 1 33 30 Capex €m % of revenues 20 40 4.6% 4.3% 5% 3.9% 30 4% 10 21 3% 1
Slide 24: Operating net cash flow improvement in the first quarter
Operating net cash flow improvement in the first quarter Adujsted operating net cash flow in € million Q1/2011 Q1/2010 Adjusted EBITDA 32.0 22.4 Δ ± Working capital - 16.8 - 14.8 Δ ± Investments from operating business - 8.8 - 3.5 Adjusted operating net cash flow 6.5 4.2 24