Gefran S.p.a. · MIL:GE
Gefran — Investor Presentation (February 2004)
24 slides from Gefran's investor presentation, Feb 26, 2004
Slide 1: Milano, 26 February 2004
— _— a A Pe 2 Ea a RR > Ea ——___ GEFRAN Milano, 26 February 2004
Slide 2: Agenda
§ Gefran group § Core Business § Strengths § Market § Siei Acquisition § Financials § Strategic plan
Slide 3: Gefran Group
Gefran Group
Slide 4: Gefran Group Key facts
Gefran Group Key facts Gefran Group is on of the european Leader in industrial automation. 30 years of experience, Gefran designs and produces sensors, electronic components, servo drives and control systems. 74 Mio € revenues in 2003 and more than 700 employees worldwide § June 1998: listing at Mil
Slide 5: Gefran Group Structure
Gefran Group Structure GEFRAN S.p.A. GEFRAN SENSORI SIEI S.p.A. GEFRAN CO.RE.CI (France) SIEI AMERICA Inc. (USA) GEFRAN ISI, Inc. (USA) SIEI ASIA PTE (Singapore) GEFRAN GmbH (Germany) SIEI FRANCE Sarl (France) GEFRAN BENELUX SIEI UK Ltd (UK) GEFRAN CRL Ltd (UK) SIEI AREG GmbH (Germany) GEFRAN ACOME
Slide 6: Gefran Group Core Business
Gefran Group Core Business SENSORS COMPONENTS Measurement process Indication and variables Regulation process variables INDUSTRIAL PROCESSES AUTOMATION AND CONTROL SYSTEMS Automation and Control Plastic and Rubber MOTION CONTROL of the machine cycle and Food, Packaging, Metal indutsrial processes fo
Slide 7: Gefran Group Strengths
Gefran Group Strengths 30 years of know-how in Industrial Automation A uniquely complete product line for Industrial Control With our range of industrial sensors, electronic components, motion control and automation platform Technological excellence Control of design and manufacturing primary techno
Slide 8: World Wide presence
Gefran Group World Wide presence § Italian market leader with more than 20 specialists to support OEM market § Strong international presence in the key markets, with more than 50% of revenues, and direct presence in fast growing economies (China) Gefran manufacturing sites Gefran subsidiaries Gefran
Slide 9: Market
Market
Slide 10: Market
Market § We identify our market in the industrial automation sector, with particular reference no longer only to the equipment manufactures related to the plastic industry, but also in linked application segments as packaging, metal work and wood industry METAL WORK WOOD INDUSTRIAL PLASTIC & OEM* EN
Slide 11: Market trend
Market trend Equipement manufacturers segment, with a traditional cyclic trend, has been in recession since 2001, with a drop in demnad up to 40%. Gefran shows a turnover not being affected by the drop of the core market: §Components sales increase ( replacement business) new application segments ou
Slide 12: SIEI Acquisition
SIEI ACQUISITION
Slide 13: SIEI Acquisition
SIEI Acqusition July 2003 : Siei group acquisition (former SIEI Peterlongo) Undisputed market leader in Italy for inverter and drives Objectives: § Product range completion § sales sybergy on same customers (plastic machinery) § Capture of growing opportunitioes in electric inkection moulding machin
Slide 14: SIEI Acquisition
SIEI Acquisition (‘000 Euro) CASH OUT FLOW 910 CAPITAL INCREASE IN SIEI 2.000 Other expenses 212 NET FINANCIAL POSITION SIEI 11.215 NET EQUITY SIEI 13.913
Slide 15: SIEI Acquisition profit and loss
SIEI Acquisition (‘000 Euro) PROFIT & LOSS Y2002A Y2003E* (consolidated SIEI Group) Turnover 50.807 40.700 EBIT (9.387) (6.900) Net Result SIEI’s Group (14.019) (8.400) * NOT REVISED
Slide 16: Financials
Financials
Slide 17: Profit & Loss
Profit & Loss (‘000 Euro) 31.12.2002 31.12.2003 Var. ’02/’03 31.12.2003 Ex SIEI Revenues 60.539 74.623 14.084 57.789 40.477 46.711 6.294 39.273 Value added % on Revenues 67% 62% 68% EBITDA 5.847 7.531 1.684 6.480 % on Revenues 9% 10% 11% EBIT 1.563 2.248 685 2.303 % on Revenues 2% 3% 4% EBT 621 814
Slide 18: Reclassified Financial Statement
Reclassified Financial Statement (‘000 Euro) 31.12.2002 31.12.2003 Net Working Capital 21.300 28.917 Net Assets 29.912 39.566 Severance and other funds (4.338) (7.609) NET INVESTED CAPITAL 46.874 60.874 Short-term borrowing (available funds) (37.250) (30.992) Medium-term borrowing 10.036 14.802 Net
Slide 19: Cash flow
Cash flow (‘000’000 Euro) 31.12.2002 31.12.2003* Cash at the beginning of the period 42,1 37,3 Self-financing 3,4 5,2 Change in Net Working Capital - 0,7 -6,6 ------ ------ Cash from operating activities 2,7 -1,4 Cash from investing activities -3,9 -2,7 Cash from financial activities -3,6 -2,2 -----
Slide 20: Turnover
Turnover Business Areas (ex Siei) Geographical Areas 100% 12% 2% 90% 4% 80% 7% 70% 5% 60% 50% 40% 30% 49% 20% 21% 10% 0% 2001 2002 2003 Italy UE Europe Non UE North America Systems Components Sensors South America Asia Resto del Mondo
Slide 21: Strategic Plan
STRATEGIC PLAN
Slide 22: Strategy
Strategy 3 years Plan 1. To complete Siei integration, exploiting the great cross selling potential. The 4 Business Areas are strictly synergics: we will increase each business dimension exploiting the maximum potentiality. Growth in application segments out of plastics. 2. To exploit fast growing e
Slide 23: Strategy: SIEI integration
Strategy Siei integration SIEI 2003 : an aggressive restructuring plan § Rationalization of the commercial organization TO DO (12 branches closed) § To enlarge the restructuring § Concentration of the Gerenzano headquarter of plan to foreign branches the other industrial sites (3 plants closed) § Em
Slide 24: Strategy: Focus on growing markets
Strategy Focus on growing markets Asia and China Mio € + 65% § Increasing commercial structure through new 10.000 9.000 distributors, new opportunity in India to be 8.000 7.000 persecuted 6.000 5.000 §Light manufacturing in China à great costs 4.000 3.000 advantages without loosing the technological