Metair Investments Limited · JSE:MTA
Metair Investments — H1 2012 Earnings Presentation
36 slides from Metair Investments's earnings presentation, Aug 20, 2012
Slide 1: Interim Results 6 Months Ending 30 June 2012
INTERIM RESULTS 6‐MONTHS ENDING 30 JUNE 2012 STRATEGIC & OPERATIONAL UPDATE 20TH AUGUST 2012 1
Slide 2: Agenda
AGENDA • Interim Results / Vision & Strategy • Rombat Acquisition • Start/Stop Battery Development & Commercialisation Program • Metair Re‐branding 2
Slide 3: Results
RESULTS 3
Slide 4: Metair Trading Characteristics for the Period
METAIR TRADING CHARACTERISTICS FOR THE PERIOD • Continued delivery on our strategy • First overseas acquisition in the form of Rombat in Romania • Return to normality in First National Battery after the fire in same comparative previous period • Launch of Start/Stop battery technology in the local O
Slide 5: Metair Trading Characteristics for the Period
METAIR TRADING CHARACTERISTICS FOR THE PERIOD • Healthy local OEM (Original Equipment Manufacturer) demand • Improved local aftermarket sales • Non‐automotive demand growth • Doubling of aftermarket exports sales • Entrance of overseas competitive low cost producers in local market • Exchange rate f
Slide 6: Vision & Strategy
VISION & STRATEGY 6
Slide 7: Vision
VISION “To generate value for all our stakeholders by managing and controlling businesses that through manufacturing and/or logistical excellence, deliver quality, cost‐competitive products to our customers in a sustainable manner.” 7
Slide 8: Strategy
STRATEGY • Continue to target balance in the business • Nurture Original Equipment (OE) business and expand Original Equipment Manufacturer (OEM) customer base • Focus intently on cost • Secure and grow aftermarket product range • Pursue the acquisition of a complementary business to leverage off ou
Slide 9: Financial Review
FINANCIAL REVIEW 9
Slide 10: Financial Highlights
FINANCIAL HIGHLIGHTS 2012 2011 ITEM R’000 R’000 ↑ Revenue 2 589 466 2 051 834 ↑ EBITDA excluding PPE fire effect 396 971 330 392 ↑ Operating Profit 325 415 307 757 ↑ Operating Profit excluding PPE fire effect 325 415 279 387 Operating Income Margin excluding PPE fire effect 12,6 13,6 ↑ Profit After
Slide 11: Revenue Growth
REVENUE GROWTH Strategic Influence • Exchange rate influences (Not from strategy) • Product diversification (From strategy) • Customer diversification (From strategy) • Aftermarket growth (From strategy) • Acquisitions (From strategy) 11
Slide 12: Revenue Growth Strategic Influence
REVENUE GROWTH Strategic Influence • Exchange rate influences (Not from strategy) + R100 million • Product diversification (Strategic) + R70 million • Customer diversification (Strategic) + R100 million • Acquisitions (Strategic) + R147 million 12
Slide 13: Revenue Growth Strategic Influence
REVENUE GROWTH Strategic Influence • Acquisitions + R147 million – Customer diversification + R39 million – Aftermarket diversification + R108 million • Local R31 million • Export R77 million 13
Slide 14: Group Revenue
GROUP REVENUE 5000 4500 4180 4294 4000 3753 3500 3342 2984 R’million 3000 2642 2589 2500 2151 2052 2000 1500 1000 500 0 14
Slide 15: Operating Profit
OPERATING PROFIT (Excluding impact of fire and impairment) 600 542 500 400 383 325 311 299 300 282 R’million 247 217 189 200 100 0 15
Slide 16: Headline Earnings Per Share (HEPS)
HEADLINE EARNINGS PER SHARE (HEPS) 300 260 250 CPS (Cents per Share) 200 189 150 143 133 128 124 104 100 74 67 50 0 2005 2006 2007 2008 2009 2010 Dec‐11 Jun‐11 Jun‐12 16
Slide 17: Segmental Reporting
SEGMENTAL REPORTING Revenue Profit before interest and tax Year ended Year ended Six months ended 30 June December Six months ended 30 June December R’000 2012 2011 2011 2012 2011 2011 Local Original equipment 1 608 915 1 285 011 2 697 984 176 348 149 998 276 631 After market 519 491 433 776 893 159
Slide 18: Reconciliation of EBITDA to Profit
RECONCILIATION OF EBITDA TO PROFIT 600 500 400 383 (58) R’million (1) (104) 300 13 233 200 100 0 EBITDA Depreciation Net financing costs Tax expense Associates Profit 18
Slide 19: Movement in Net Cash
MOVEMENT IN NET CASH 455 (98) 700 (88) 600 (442) 500 R’million 400 300 245 200 100 (132) 42 (18) 0 ‐100 19
Slide 20: Working Capital
WORKING CAPITAL R’million June June Dec Dec ITEM 2012 2011 2011 2010 Inventory 763 608 694 607 Trade & receivables 758 552 519 397 Trade & payables (718) (551) (533) (503) Total 803 609 680 501 DAYS Inventory 53 54 59 59 Trade & receivables 53 49 44 39 Trade & payables (50) (49) (45) (49) Total 56 5
Slide 21: Rombat Acquisition
ROMBAT ACQUISITION 21
Slide 22: European Market and Encapsulating Africa
EUROPEAN MARKET AND ENCAPSULATING AFRICA 22
Slide 23: Rombat Acquisition Rationale
ROMBAT ACQUISITION RATIONALE 23
Slide 24: Strategy
STRATEGY • Continue to target balance in the business • Nurture Original Equipment (OE) business and expand Original Equipment Manufacturer (OEM) customer base • Focus intently on cost • Secure and grow aftermarket product range • Pursue the acquisition of a complementary business to leverage off ou
Slide 25: Rombat PPA
ROMBAT PPA Purchase Price Allocation R’000 Recognised amounts of identifiable assets acquired Provisional fair and liabilities assumed: Value Assets Trademark and other intangible assets 30 003 Property, plant & equipment 271 186 Inventory 97 368 Trade and other receivables 185 473 Cash and cash equ
Slide 26: Rombat PPA
ROMBAT PPA Purchase Price Allocation R’000 Recognised amounts of identifiable assets acquired Provisional fair and liabilities assumed: Value Liabilities Borrowings (61 542) Provisions (2 363) Trade payables and other payables (103 408) Overdraft (96 755) Net deferred tax (11 594) (275 662) Total id
Slide 27: Rombat Acquisition Health Check
ROMBAT ACQUISITION HEALTH CHECK • Transfer of Associates In progress • Transfer of Technology In progress • Integration Going well • Change Management In progress • Start/Stop facility In progress • Expansion of aftermarket footprint Europe • Availability of recycled material 27
Slide 28: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 1930 – 1981 Oldham GW flooded battery mining cap lamp 1981 Introduction of VRLA AGM battery mining cap lamp 1981 – 1984 Extensive field testing and warranty analysis 1984 Introduction design improvements on VRLA AGM battery mining cap lamp
Slide 29: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 2008 Design and tested to German Automobile & Industry Association Specification (VDA) 2009 Improved Start/Stop VRLA battery design Additional BMW testing Requested to consider transferring Start/Stop technology to Europe 2010 Start/Stop V
Slide 30: Start/Stop Battery Development and Commercialisation Program
START/STOP BATTERY DEVELOPMENT AND COMMERCIALISATION PROGRAM 2011 Further develop of relationship with Rombat Conditional supply approval on Start/Stop batteries for German Supply Council 2012 Automechanika SA Innovative Gold Award to FNB for VRLA Battery Acquire Rombat Supply first Start/Stop VRLA
Slide 31: Metair Re-branding
METAIR RE‐BRANDING a MET ir INVESTMENTS LIMITED 31
Slide 32: Metair Re-branding
METAIR RE‐BRANDING a ME T ir utomotive ndustrial etail A X E N C C U E H F L N A L O C E L T N O U C G R E Y I N G 32
Slide 33: Metair Re-branding – Old Logo
METAIR RE‐BRANDING – OLD LOGO 33
Slide 34: Metair Re-branding – New Logo
METAIR RE‐BRANDING – NEW LOGO 34
Slide 35: Q&A Thank You
Q&A THANK YOU WWW.METAIR.CO.ZA 35
Slide 36: Disclaimer
DISCLAIMER The information supplied herewith is believed to be correct but the accuracy thereof at the time of going to print is not guaranteed. The company and its employees cannot accept liability for loss suffered in consequence of reliance on the information provided. Provision of this data does