Componenta Oyj · OMXHEX:CTH1V
Componenta Oyj — Shareholder Meeting (September 2014)
39 slides from Componenta Oyj's shareholder meeting presentation, Sep 5, 2014
Slide 1: Casting Future Solutions
Casting Future SOLUTIONS COMPONENTA
Slide 2: Componenta Presentation EGM 5 Sep 2014
COMPONENTA PRESENTATION EGM 5 SEP 2014 Heikki Lehtonen President and CEO 2
Slide 3: We are one of the largest cast component suppliers in Europe
WE ARE ONE OF THE LARGEST cast component suppliers in Europe 511M€ Net sales (2013) 4,400 Personnel approx. 346,000 Iron foundry production capacity tons/year 726,000 Machining hours/year Listed in NASDAQ OMX Helsinki 3 5.9.2014
Slide 4: Global network with strong local presence
We serve our customers by combining A GLOBAL NETWORK WITH STRONG LOCAL PRESENCE 4 5.9.2014
Slide 5: Our network is optimized for expertise and cost efficiency
OUR NETWORK IS OPTIMIZED to provide expertise and cost efficiency to our customers everywhere Personnel by country Sales by market area Turkey 60% Germany 21% Sweden 19% Turkey 13% UK 11% Finland 17% Finland 8% Benelux 7% The Netherlands 13% France 6% Italy 5% Other European countries 3% USA 3% Swed
Slide 6: Our broad customer base supports stability and innovation
Our Broad Customer Base Supports Stability and Innovation 15% 31% 17% 19% 18% 18% 19% 17% 31% 15% Agricultural Machine Construction Automotive Machinery Building and Mining Heavy Trucks Construction Machine Agricultural Heavy Trucks and Mining Building Automotive Machinery 6 5.9.2014
Slide 7: Shifting production to low cost location
Shifting Production to Low Cost Location Continuous shift to Turkey significantly improves cost structure Revenue Breakdown – Europe vs Turkey Development of Iron Production 100% Volumes in Turkey 60% 90% 56% 56% 54% 50% 80% 52% 52% 53% 48% 55% 70% 62% 64% 43% 40% 42% 60% 50% 30% 40% 20% 30% 45% 48%
Slide 8: Iron Casting - Competitive Landscape
Iron Casting - Competitive Landscape Componenta is the European market leader for small-mid series, complex iron castings Iron Batch Size Sales Company (€m) Small Medium Mass Series Attractive Market Fritz Winter Position 712 Eisengießerei • Focus on non-automotive GeorgFischer 709 applicati
Slide 9: Aluminium Casting - Market Positioning
Aluminium Casting - Market Positioning Componenta has a focused business strategy on complex, high margin automotive/truck products 9 5.9.2014
Slide 10: Aluminium Casting - Market Trends & Drivers
Aluminium Casting - Market Trends & Drivers Strong underlying growth drivers: Aluminium is key for meeting stricter emission regulations Source: CO2 Emissions Report 2012, European Environment Agency, The aluminium Association Inc. “Automotive aluminium continued gain in fuel economy” 2011, IHS Auto
Slide 11: Componenta's Cycle of Success
COMPONENTA’S CYCLE OF SUCCESS 11
Slide 12: Componenta's Cycle of Success
Componenta’s Cycle of Success Experienced Industry Management Leading Team with Player in Strong Track Target Record Markets Flexible Cost Specialised Structure Business Model Supported By with High Well Invested Barriers to Entry Asset Base Well Long-term, Positioned to “sticky” Capitalize on Relat
Slide 13: Industry Leading Player in Target Markets
Industry Leading Player in Target Markets Componenta is the European market leader for small-mid series, complex iron castings Position in European Iron Castings Target Market Componenta’s Position (Revenue in €m) • Focus on complex, safety critical parts 0 200 400 600 800 • Significant scale advant
Slide 14: Specialised Business Model with High Barriers to Entry
Specialised Business Model with High Barriers to Entry 14 5.9.2014
Slide 15: Specialised Business Model with High Barriers to Entry
Specialised Business Model with High Barriers to Entry Sole supplier status with blue-chip customer base 15 5.9.2014
Slide 16: Specialised Business Model with High Barriers to Entry
Specialised Business Model with High Barriers to Entry Revenue streams are characterised by long product lifecycles Sources: Management information and Thomson Reuters 16 5.9.2014
Slide 17: Balanced and Diversified Business
Balanced and Diversified Business High degree of diversification by customer segment, buying relationships and geography 17 5.9.2014
Slide 18: Flexible Cost Structure Supported by Well Invested Asset Base
Flexible Cost Structure Supported by Well Invested Asset Base Increased flexibility in Componenta’s cost structure 18 5.9.2014
Slide 19: Strategy
STRATEGY 2014 19
Slide 20: Business Strategy for 2014 and Beyond
Business Strategy for 2014 and Beyond 1 Improving productivity and • Continued improvement in profitability is our number one priority in the short-term quality, and • New Force program is key in strategy implementation in 2014, in order to build on realised profitability of savings already achieved
Slide 21: Financials
FINANCIALS — am ff ec
Slide 22: Quarterly development of order book
Quarterly development of order book (including orders for the next two months) 120 +0% 100 80 MEUR 60 40 20 0 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 22 5.9.2014
Slide 23: Quarterly development of net sales
Liikevaihto vuosineljänneksittäin, Me Quarterly net sales, MEUR 23 0 25 50 75 100 125 150 175 Q1/10 Q2/10 Q3/10 Net sales Q4/10 Q1/11 Q2/11 Q3/11 Net sales, rolling 12 months Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 2010 - Q2 2014 Q1/13 Q2/13 Q3/13 Q4/13 Quarterly development of net sales Q1/14 Q2/14 0 100 200
Slide 24: Operating profit and result after financial items
Operating profit and Result after financial items excluding one-time items and exchange rate differences of balance sheet items Operating profit*) Result after financial items*) 10 4 8 2 MEUR MEUR 6 0 4 -2 2 -4 0 -6 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 *) Excluding
Slide 25: Cash flow statement
Cash flow statement 25 5.9.2014
Slide 26: Key ratios
Key ratios MEUR 30.6.2014 30.6.2013 31.12.2013 Equity ratio, % 17.9 15.8 18.9 Return on equity, excluding one-time items, % -0.6 3.4 -12.8 Return on equity, % -5.1 1.0 -18.6 Return on investment, excluding one-time items, % 9.2 7.7 5.9 Return on investment, % 7.7 7.1 4.9 Net interest bearing debt, M
Slide 27: Refinancing Arrangements
REFINANCING ARRANGEMENTS 27
Slide 28: New financial arrangements of EUR 250 million
New financial arrangements of EUR 250 million Two share issues Term loan EUR 61.8 million Term loan EUR 70 million total EUR 90 million RCF EUR 7 million RCF EUR 20 million • Max. 68 million shares in • Agreement signed by • Agreement signed by two phases Componenta Oyj with Componenta A.S. with Nor
Slide 29: Efficiency Improvement Program
EFFICIENCY IMPROVEMENT PROGRAM 29
Slide 30: Proforma EBITDA 49.2 MEUR Q2 2014
Proforma EBITDA 49.2 MEUR Q2 2014 MEUR 60 12.0 49.2 50 22.9 40 37.3 ‐2.3 30 26.1 20 ‐9.4 10 0 FY/12 Volume loss Cost Cost Q2/14 LTM Proforma Q2/14 LTM Adjusted margin savings inflation and EBITDA*) cost Proforma EBITDA impact realized FX diff. of savings**) EBITDA B/S items *) Excluding one-time ite
Slide 31: Proforma cost savings MEUR 12.0 and Proforma EBITDA MEUR 49.2
Proforma cost savings MEUR 12.0 and Proforma EBITDA MEUR 49.2 Q2 2014 Rolling 12 months MEUR MEUR EBITDA excluding one-time items and exchange rate differences of the B/S 37.3 Finalized personnel reductions in global and country organizations 0.6 Closure of Pietarsaari foundry in Finland 2.5 Closure
Slide 32: Prospects 2014
PROSPECTS 2014 32
Slide 33: Business environment 2014
Business environment 2014 Componenta’s Componenta’s demand prospects improving demand prospects stable The order book for Componenta’s heavy trucks The order book for Componenta’s construction and mining customer sector was 14% lower at the end of the customer sector was 9% higher at the end of the
Slide 34: Business environment 2014
Business environment 2014 Componenta’s Componenta’s Componenta’s demand prospects improving demand prospects stable demand prospects stable At the end of the review period, the order The order book for Componenta’s The order book for Componenta’s book for Componenta’s machine building agricultural m
Slide 35: Prospects for Componenta in 2014
• The prospects for Componenta in 2014 are based on general external economic indicators, delivery forecasts given by customers, and on Componenta’s order intake and order book. Prospects for • Componenta’s order book at the end of June was at the same level compared to last year Componenta same tim
Slide 36: New Strong Componenta
NEW STRONG COMPONENTA 36
Slide 37: We want to continue to serve our customers for the next 100 years
WE WANT TO CONTINUE TO SERVE OUR CUSTOMERS for the next 100 years 37 37
Slide 38: New strong Componenta
New strong Componenta New Force – efficiency Growth with Solid improvement + our customers + financing The preferred casting solution provider locally and globally Casting Future Solutions 38 5.9.2014
Slide 39: Casting Future Solutions
Casting Future SOLUTIONS COMPONENTA