Biesse S.p.a. · MIL:BSS
Biesse — FY2002 Earnings Presentation
41 slides from Biesse's earnings presentation, Feb 27, 2003
Slide 1: 2002 STAR company results
2002 STAR company results Milan - February 27, 2003
Slide 2: Overview of Biesse Group
Overview of Biesse Group 2
Slide 3: Biesse: Key Factors
BIESSE : KEY FACTORS Biesse produces machine tools and systems for the secondary processing of wood, glass and marble, together with associated numerical controls, software and precision components Biesse has achieved operating excellence due to the following key factors: extensive direct one-stop-s
Slide 4: Market Position: Global Leadership
GLOBAL LEADERSHIP MARKET POSITION 1st the world’s largest manufacturer of computer numerically controlled (CNC) centres for wood and glass working 2nd largest Italian producer of automated woodworking machinery 2nd largest worldwide provider of turn-key systems for major companies 4th largest manufa
Slide 5: Biesse Headquarter
BIESSE HEADQUARTER 5
Slide 6: Biesse Group Structure
BIESSE GROUP STRUCTURE 6 As of 14 February 2003
Slide 7: Biesse Group Structure
BIESSE GROUP STRUCTURE Four division 8 1,488(1) employees, of which 57 Biesse subsequent Allwood acquisition Wood Division 8 FY2002 Sales of € 259,8 m Intermac Glass & Marble HSD Division Mechatronics Division 8 130 employees, of 8 302 employees, of which 38 subsequent which 49 subsequent Diamut acq
Slide 8: Biesse Wood Division
BIESSE GROUP STRUCTURE Biesse Wood Division 8The Biesse Wood Division: 8designs and produces Digitally-controlled workstations woodworking machinery for companies processing furniture, doors and windows 8offers a wide range of solutions for the entire industrial production cycle of wood and its by-
Slide 9: Intermac Glass & Marble Division
BIESSE GROUP STRUCTURE Intermac Glass & Marble Division 8Intermac is the worldwide leader in the production of machines and systems for the The new range of compact high-performance glass and marble industries numerically controlled work centres 8Products and strategies are being continuously develo
Slide 10: HSD Mechatronics Division
BIESSE GROUP STRUCTURE HSD Mechatronics Division 8The Mechatronics Division is the answer to the need of ES919 ElectroSpindles technological independence on strategic components 8Today, this Division designs and produces high-tech precision components both for Biesse Group and the market 8Main produ
Slide 11: Schelling Systems Division
BIESSE GROUP STRUCTURE Schelling Systems Division 8The Systems Division: 8designs and manufactures quality high end panel sizing systems 8offers solutions with a high technological contents, providing systems and engineering ideas to clients who need to solve particular complex production, technolog
Slide 12: New Products/1
NEW PRODUCTS/1 In 2003 Biesse will launch on the market new products which will allow the Company to sustain its leadership in the market and to increase market shares New woodworking machine for “solid wood” (doors and windows) 8High innovative product in the market thanks to its characteristics: 8
Slide 13: New Products/2
NEW PRODUCTS/2 Rover FT410 8Work centre mainly designated to the American market. The new machine offers Biesse clients: 8strong reduction of investment 8less space to position the machine 8optimisation of the use of materials Skipper 8Numerically controlled boring and doweling machine adopting an i
Slide 14: New Products/3
NEW PRODUCTS/3 Evolution 8Numerically controlled squaring and edge banding machine for the application of edges on shaped and straights panels 8Evolution of the Millennium model, the new improved machine will allow the increase of the market share in the prefabricates and office furniture sector Exc
Slide 15: New Projects/1: Kaizen Lean Production
NEW PROJECTS/1 Kaizen Lean Production project 8Main objective of the Kaizen project is to transform Biesse into a Lean Production, driven Company thanks to : 8project & process simplification 8elimination of discontinuities and overlapping of processes 8Expected results: 8inventory reduction of raw
Slide 16: New Projects/2: Artech
NEW PROJECTS/2 Artech 8Starting from February 2003 “Biesse wood division” has a new brand, “Artech”, to commercialise low-end products 8Artech was created to penetrate the segment of wood machines for craftsmen which represent one of the major “niches” of the worldwide woodworking machinery market.
Slide 17: New Project/3: Joint Venture - China
NEW PROJECT/3 Joint Venture - China 8From January 2003 Biesse S.p.A. has established a new Joint Venture (Biesse China) with a local partner, placed in Dongguan, to gather, produce and market their woodworking machinery 8The Far East Market represents for the Biesse Group a high growth potential are
Slide 18: Main Clients
MAIN CLIENTS Some of our major clients nobilia 18 … with an extremely wide potential customer base
Slide 19: Sales and Distribution
SALES AND DISTRIBUTION 8Biesse’s worldwide presence enables it to 8cover all the major outlet markets 8provide extensive customer service and support (24-hour on site) 8closely monitor market trends and competitive behaviour 823 subsidiaries and sales offices in 16 countries 19 8about 250 distributo
Slide 20: Market scenario
Market scenario 20
Slide 21: The Market – Overview
THE MARKET – OVERVIEW 2002 Worldwide market demand Market (€m) 1995 2001 2002Cagr95/02 01/02 Wood 2,004 2,767 2,684 4,3% -3% Systems 3,8% Mechat. 17,8% Glass & Marble 294 396 400 4,5% 1% Systems 183 219 149 -2,9% -32% Glass/ Marble 10,2% Mechatronics 310 682 702 12,4% 3% Wood 68,2% Total 2.791 4,064
Slide 22: Biesse's Superior Growth
BIESSE’S SUPERIOR GROWTH Turnover 2002 vs 2001 Wood Glass and Marble 13,5% 5,5% 14% 6% 12% 5% 10% 8% 4% 6% 3% 4% 2% 2% 1,0% 0% Market 1% -2% 0% -4% Biesse -3,0% Market Biesse Systems Mechatronics 10% Market Biesse 10% 0% 7,3% 8% -10% 6% -20% 4% 3,0% -30% 2% -32,0% -40% - 35,7% 0% -50% Market Biesse
Slide 23: Biesse's Market Shares
BIESSE’S MARKET SHARES 2002 Wood Glass and Marble Total Market € 2,684m Biesse Sales € 259,8m Total Market € 400m Biesse Sales € 55,6m Lignum 16,0% Weining 11,5% Bavelloni 17,0% SCM Biesse Rest of 13,5% Rest of 13,9% the the Market Market 49,3% Bottero Biesse 56,1% 9,7% 13,0% Systems Mechatronics To
Slide 24: Financials
Financials 24
Slide 25: 2002 Overview
2002 OVERVIEW 8Good results in IV Quarter 2002: 8turnover increase of 28,5% 8strong recover of profitability 8Positive trend in the second half of the year however not sufficient to offset the negative performance for the first six months of 2002 8Rationalisation of structure and business processes
Slide 26: Group Performance
GROUP PERFORMANCE Quarterly trend: turnover increase and recover of profitability Sales 5% 150,0 +28, 100,0 130,5 €m 101,6 50,0 74,5 100,7 90,6 76,8 79,0 70,5 0,0 IQ IIQ IIIQ IVQ 2001 2002 EBITDA (as a % of net sales) EBIT (as a % of net sales) 8 8 4 4 0 0 IQ IIQ IIIQ IVQ IQ IIQ IIIQ IVQ -4 -4 -8 -8
Slide 27: Group Performance FY2001-2002
GROUP PERFORMANCE FY2001-2002 380,0 12% €m 8% 4% 280,0 0% 2001 2002 Sales EBITDA % EBIT % Year ending 31st December 2001 2002 Net Sales (€m) 353.8 371.0 Growth 2.8% 4.8% EBITDA (€m) 25.4 22.1 as % of net sales 7.2% 6.0% EBIT (€m) 13.9 8.0 as % of net sales 3.9% 2.2% Net Income (€m) (6.4) - as % of n
Slide 28: Sales by Division
SALES BY DIVISION FY2001-2002 Wood Glass and Marble 300,0 10% 60,0 52,7 55,6 1,2% 259,8 250,0 229,0 50,0 1,0% 8% 40,0 0,8% 200,0 8,3% 1,0% 0,9% 8,0% 6% (€ million) (€ million) 150,0 30,0 0,6% 4% 20,0 0,4% 100,0 50,0 2% 10,0 0,2% 0,0 0% 0,0 0,0% 2001 2002 2001 2002 Net Sales EBITDA Margin (%) Net Sal
Slide 29: Sales Breakdown
SALES BREAKDOWN December 31, 2002 By division By region Mecha- RoW tronics 24,5% 6,2% Systems EU 11,0% 57,5% North Glass/Mar Wood America ble 68,2% 18,0% 14,6% 100% 100% 50% 50% 0% 0% Y 2000 Y 2001 Y 2002 Y 2000 Y 2001 Y 2002 Wood Glass Systems Mech. EU NA ROW 29
Slide 30: Backlog: 2001-2002
BACKLOG : 2001-2002 150 5 months 4 1/2 4 1/2 months months 4 months 100 3 1/2 months 122 113 102,6 101 50 70 0 31/12/98 31/12/99 31/12/00 31/12/01 31/12/02 Orders backlog (€ mln) Dec. ‘98 Dec. ‘99 Dec. ‘00 Dec. ‘01 Dec. ‘02 Backlog (€m) 70 102.6 122 113 101 30
Slide 31: Reorganisation Plan
REORGANISATION PLAN Net sales € 353,8 Net sales € 371 as at 31/12//01 +144 -109 as at 31/12//02 2,222 -100 2,187 2,122 Employees Employees Reduction due Employees Expected Expected as at from to the 2002 as at reduction of employees as at 31/12//01 acquisitions reorganisation 31/12/2002 employees in
Slide 32: Reorganisation Plan: Costs of Raw Materials and Services
REORGANISATION PLAN Costs of Raw Materials and Services 200 150 Raw Materials 100 Services 50 0 2001 2002 Raw Materials 176.5 159.5 - 9.6% % value of production 43.9% 46.8% Services 71.1 68.9 - 3.1% Total 247.6 228.4 - 7.8% 32
Slide 33: Net Debt: 2001-2002
NET DEBT: 2001-2002 150 100 €m 50 0 FY2001 1H 2002 FY2002 Net debt FY2001 1H 2002 FY2002 Net Debt (€m) (*) 86,0 103,8 85,8 Gearing 0,61 0,78 0,60 33
Slide 34: Working Capital
WORKING CAPITAL 110 105 100 €m 95 90 85 80 2001 2002 Net Working Capital Inventories Year ending 31st December 2001 2002 Inventories 105.6 90.9 -13.9% Net working capital (€m) 103.5 100.7 Net working capital as % of Sales 29,3 27,2 34
Slide 35: Others
OTHERS 2001 2002 Trade receivables 123.568.716 127.210.745 Average (nr. of days) 121 115 Trade payables 84.768.011 80.273.977 Average (nr. of days) 156 160 2001 2002 EV/S 0,60x 0,40x EV/EBITDA 8,32x 6,79x EV/EBIT 15,22x 18,72x P/BV 0,90x 0,45x 35
Slide 36: Shareholders' Structure
SHAREHOLDERS’ STRUCTURE Buy Back: 774,264 shares, amounting to Euro 2,3 millions (28,3% of the Buy-back approved ) Free Float 35,0% BIESSE Finance BV 34,7% Werner Deuring P.S. 4,8% BIESSE Holding S.p.A. 25,5% Share capital: 27,393,042 shares 36 (1) As at 14 February 2003
Slide 37: Stock Market Performance
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Slide 38: Conclusion
Conclusion 38
Slide 39: Key Drivers
KEY DRIVERS 8Further recover of profitability 8Strong control on fixed costs 8Reduction in raw materials/components purchasing costs 8Further reduction in labour costs by approx. Euro 1.5 - 2.0 million within 2003 (exit of 100 employees) 8Higher efficiency through improved organisational processes 3
Slide 40: Key Drivers
KEY DRIVERS 8Increase market shares 8Launch of new products with a new technological approach and lower production costs (launch at Hannover exhibition in 2003) 8Entrance in new markets with a high growth potential 8(JV Biesse China) 8Artech Project (new brand for low-end products with a new dedicat
Slide 41: For further information, please contact
For further information, please contact: Alberto Amurri Group Financial Manager and Investor Relator Biesse S.p.A. Tel: (+39 0721) 439 107 e-mail: alberto.amurri@biesse.it 41