Slide 1: NORMA Group Second Quarter Results 2013
NORMA Group Second Quarter Results 2013 Maintal, 7 August 2013 Customer Value through Innovation
Slide 2: Highlights Q2 2013
Highlights Q2 2013 Sales growth of 3.5% leads to EUR 163.5 million including favourable organic growth in Europe Sales driven by EURO 6 introduction (Q2 2012: EUR 158.0 million) Adjusted EBITA of EUR 27.9 on high level even including costs of approx. EUR 1 million for EBITA change into Societas Euro
Slide 3: Second Quarter Organic Growth Showed Strong Sequential Improvement
Second Quarter Organic Growth Showed Strong Sequential Improvement Sales Development in EUR million Sales 2012 2013 Change Change in % thereof thereof thereof organic acquistions currency Q1 159.7 159.3 -0.4 -0.3% -6.1% +6.0% -0.2% Q2 158.0 163.5 +5.5 +3.5% +0.5% +3.6% -0.6% H1 317.7 322.8 +5.1 +1.6
Slide 4: Sales by Regions and by Way-to-Market
Sales by Regions and by Way-to-Market Asia-Pacific gains share due to successful acquisitions Split by way-to-market at 70% EJT and 30% DS Consolidations in DS: Davydick (from January 2013) and Variant (from June 2013) H1 2013 (2012) sales breakdown H1 2013 (2012) sales breakdown by regions by
Slide 5: Sustainable Margin Development Continues in 2013
Sustainable Margin Development Continues in 2013 17.4% 17.7% 17.4% 17.4% EUR million 35 18.9% 20% 18.2% 18.3% 18.0% 18.3% 18.1% 17.8% 17.4% 17.5% 17.2% 17.1% 16.2% 30 16.0% 15.9% 15% 25 20 10% 15 29.2 28.6 28.4 28.3 27.9 25.5 26.2 25.7 22.8 22.7 22.6 21.9 10 19.3 20.6 5% 5 0 0% Q1/10 Q210 Q3/10 Q4/1
Slide 6: Margin on high sustainable level
Margin on high sustainable level Material consumption improved to 43.3% Tight cost control in OPEX despite extra costs for change to SE and various M&A activities Personnel costs affected by focussing on new business opportunities and expected slow start into 2013 Nearly flat ratio of value-
Slide 7: No Operational Adjustments in H1 2013
No Operational Adjustments in H1 2013 in EUR million Reported PPA adjustments adjusted Sales 322.8 322.8 EBITDA 64.5 No operational adjustments 64.5 EBITDA margin 20.0% 20.0% EBITA 56.1 0.1 56.2 EBITA margin 17.4% 17.4% EBIT 50.2 4.2 54.4 EBIT margin 15.5% 16.9% Net Profit 30.5 2.9 33.4 Net Profit m
Slide 8: Strong EPS Development against High Base from Previous Year
Strong EPS Development against High Base from Previous Year and Sequentially versus H2 2012 adjusted EPS* (in EUR) reported EPS* (in EUR) 1,2 0,6 1.09 1.05 1.02 0.96 0.85 0.76 0 H1/2012 H2/2012 H1/2013 H1/2012 H2/2012 H1/2013 net income in 34.6 27.2 33.4 32.4 24.2 30.5 EUR million * based on number
Slide 9: Excellent Operating Net Cash Flow
Excellent Operating Net Cash Flow Operating net cash flow in EUR million H1 2012 H1 2013 Variance EBITDA 64.9 64.5 -0.6% Δ ± Working capital -26.9 -8.8 -67% Operating net cash flow before investments from 38.1 55.7 +46% operating business Δ ± Investments from operating business -11.5 -9.8 -14% Opera
Slide 10: Net Debt, Financing and Equity Ratios after dividend payment
Net Debt, Financing and Equity Ratios after dividend payment of EURO 20.7 million Net Debt (in EUR) Equity Ratio 300 174* 172* 30.06.2013 31.12.2012 Equity Ratio (Equity / 200 42.5% 41.7% Balance Sheet Total 246 234 100 Debt Ratios 0 -72 -62 excluding derivatives* 30.06.2013 31.12.2012 -100 Leverage
Slide 11: Successful Issuance of Promissory Note (Schuldschein) in July 2013
Successful Issuance of Promissory Note (Schuldschein) in July 2013 Targets achieved Schuldschein Maturity: Mid-term oriented well balanced Volume EUR 125 million repayment schedule Interest terms improved by ~2% More diversified mix of financing instruments Financial result improves starti
Slide 12: Acquisition of Variant S.A.
Acquisition of Variant S.A. M&A Acquisition of Variant S.A. in May 2013 Business Sells joining products and cable ties to over 1,000 retailers and wholesalers across Poland. End Model clients include home improvement stores, garages and specialist retailers for automotive supplies. History Distribut
Slide 13: Acquisition of Guyco Pty. Limited
Acquisition of Guyco Pty. Limited M&A Acquisition of Guyco Pty. Limited in June 2013 Specializes in the design, manufacture and distribution of fittings and valves for freshwater Business distribution, irrigation, agricultural, plumbing and industrial market sectors. It supplies over 700 Model custo
Slide 14: Outlook 2013 – Company Guidance Confirmed
Outlook 2013 – Company Guidance Confirmed Sales* Moderate growth, plus approx. EUR 25 million from recent acquisitions EBITA margin On the level of the three previous years, more than 17% Dividend Approx. 30% to max 35% of Group adjusted net profit * amended due to acquisitions 14
Slide 15: Appendix Strategy
NORMA Group Second Quarter Results 2013 Frankfurt, 7 August 2013 Appendix Strategy Customer Value through Innovation 15
Slide 16: Proven Business Model Addressing Key Megatrends
Proven Business Model Addressing Key Megatrends NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® ~ 53% of sales Emission Next global level of emission reduction ramps up in 2013 reduction with EURO 6 in Europe and 2014 in USA (EPA 2015) NORMACLAMP TORRO Weight Ong
Slide 17: Tighter Emission Regulations Drive Increased Joining Technology Content
Tighter Emission ContentRegulations Drive Increased Joining Technology Today 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 3 EURO 4 EURO 5 Russia EURO 1 EURO 2 EURO
Slide 18: Strong Content Growth based on EURO 6
Strong Content Growth based on EURO 6 EURO 6 introduction for trucks and passenger vehicles in 2014 triggers new engine generations and ramp-up in 2013 Market for joining technology is expected to outgrow the respective end-markets, driven by megatrends including Additional components in new e
Slide 19: Premium Pricing through Technology and Innovation Leadership
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 20: Convincing Growth Prospects
Convincing Growth Prospects Clear global market leader in clamp/connect Excellent growth outlook across end-markets Sales €m End-market Additional growth 605 (year) 600 (2013-18 CAGR) production unit for Joining growth technology market ~25% 500 Fluid Passenger vehicles +5% add. 2-4% 400 Commercial
Slide 21: Successful Acquisition Strategy Continues into 2013
Successful Acquisition Strategy Continues into 2013 Sales consolidation effects in Date of EUR million Acquisition Country 2012* 2013** 2014** Total Connectors Verbindungstechnik AG 04/12 Switzerland 11.5 5.1 - 16.6 Nordic Metalblok S.r.l. 07/12 Italy 2.3 ~3 - ~5.3 Chien Jin Plastic Sdn. Bhd. 11/12
Slide 22: Acquisition of Connectors Verbindungstechnik AG
Acquisition of Connectors Verbindungstechnik AG M&A Acquisiton of Connectors Verbindungstechnik AG, Switzerland, in April 2012 Business Connectors specialises in connecting systems for the pharmaceutical and biotechnology industry. Model For more than 25 years the company has been manufacturing and
Slide 23: Acquisition of Nordic Metalblok S.r.l.
Acquisition of Nordic Metalblok S.r.l. M&A Acquisiton of Nordic Metalblok S.r.l., Italy in July 2012 Business Company specialises in manufacturing clamps for various applications particularly for the heating, Model ventilation and air conditioning industry and the agricultural and construction secto
Slide 24: Acquisition of Chien Jin Plastic Sdn. Bhd.
Acquisition of Chien Jin Plastic Sdn. Bhd. Acquisiton of Chien Jin Plastic, Malaysia, in October 2012 M&A Closing expected toward year end 2012 Specialised in joining elements for plastic and iron pipe systems for different application areas, esp. Business drinking and domestic water distribution. A
Slide 25: Increase in Ownership in Groen Bevestigingsmaterialen BV
Increase in Ownership in Groen Bevestigingsmaterialen BV M&A 60% increase in ownership to 90% in Groen Bevevestigingsmaterialen B.V. in December 2012 Wholesale supplier of hose and pipe clamps and coupling to the industrial, construction, agriculture, Business plumbing, hardware and automotive secto
Slide 26: Acquisition of Davydick & Co. Pty. Ltd.
Acquisition of Davydick & Co. Pty. Ltd. M&A Akquisition of DavyDick & Co. in January 2013 Distribution for various elements in the transportation of water in irrigation systems. Specialised in Business supplying a comprehensive range of rural irrigation fittings, valves, and pumps under the brand Mo
Slide 27: NORMA Group Worldwide
NORMA Group Worldwide EMEA Czech Republic (P) France (P, D) Germany (P, D) Italy (P, D) Netherlands (D) Poland (P) Russia (P, D) Serbia (P, D) Spain (P, D) Sweden (P, D) Switzerland (P, D) Turkey (D) United Kingdom (P, D) Americas Brazil D) Mexico (P) USA (P, D) Asia-Pacific Australia (D) China (P,
Slide 28: History of Excellence
History of Excellence Acquisition Acquisition Variant, Acquisition Guyco, MDAX listing 2013 Davydick & Co, Australia Poland Australia Acquisition Connectors Acquisition Nordic Acquisition Chien Acquisition Groen 2012 Verbindungstechnik, Switzerland Metalblok, Italy Jin Plastic, Malaysia Bevestigings
Slide 29: Historic Growth Track Record
Historic Growth Track Record Historic revenue development (1997 – 2012) EUR million 605 600 581 490 500 458 385 400 1 330 323 277 300 229 242 198 207 200 174 182 138 150 121 100 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 H1 2013 HGB IFRS 1997 to 2012: 16 years
Slide 30: Enhanced Stability through Broad Diversification
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 Wholesalers & Technical Agricultural equipment Sh
Slide 31: Good Balance in the Two Distinct Ways-to-Market
Good Balance in the Two Distinct Ways-to-Market Unique business model with two distinct ways-to-market Significant economies of scale in production Close contact to international EJT customers Knowledge transfer from EJT to DS Engineered Joining Technology (EJT) Distribution Services (DS) ~71%
Slide 32: 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 33: Appendix Full Year 2012
NORMA Group Second Quarter Results 2013 Frankfurt, 7 August 2013 Appendix Full Year 2012 Customer Value through Innovation 33
Slide 34: Record sales of EUR 604.6 million including acquisitions and positive currency effects
Record sales of EUR 604.6 million including acquisitions and positive currency effects Weaker European economic environment visible in 2nd half year Globalisation strategy pays off with positive currency effects Sales Development in EUR million Sales 2011 2012 Change Change in % thereof thereof
Slide 35: Sales by regional reporting segments
Sales by regional reporting segments Reporting segment Asia-Pacific recorded direct sales of 7% in 2012 or 10% including all NORMA exports into the region (sales by destination) Excellent double-digit growth in Americas and Asia-Pacific Weaker European environment is outperformed by higher con
Slide 36: Sales by Way-to-Market and by Industries
Sales by Way-to-Market and by Industries Stable breakdown by way-to-market: Acquisitions included in Distribution Services Majority of sales goes to non-automotive industrials, distributors as well as general tiers Sales to industrial suppliers include various industries , e.g. airplanes, trai
Slide 37: No Operational Adjustments in 2012
No Operational Adjustments in 2012 No operational adjustments despite recent acquisitions in Switzerland, Italy, Malaysia and Netherlands Ongoing PPA adjustments at EUR 0,16 on EPS level in EUR million Reported PPA adjustments adjusted Sales 604.6 0 604.6 EBITDA 120.8 No operational adjustments
Slide 38: Overview on Adjustments in prior years
Overview on Adjustments in prior years Adjustments in 2011 and 2010 mainly from IPO costs (major part concluded in Q1 2011) Only minor PPA adjustments in 2012 on EBITA level in EUR million 2010 2011 2012 Reported EBITA 64.9 84.7 105.2 + Restructuring Costs 1.3 1.8 0 + Non-recurring/non-period-re
Slide 39: EPS – Dividend Proposal EUR 0.65 per share
EPS – Dividend Proposal EUR 0.65 per share Dividend proposal to the shareholders at the AGM on 22 May 2013: EUR 0.65 per share = 3.1% dividend yield* Pay-out of EUR 20.7 million for 31,862,400 shares equals 33.5% of adjusted net income of EUR 61.8 million pro forma EPS Adjusted EPS Reported EPS
Slide 40: Profit & Loss (adjusted & reported)
Profit & Loss (adjusted & reported) in EUR million 2012 2011 reported adjusted reported adjusted Sales 604.6 604.6 581.4 581.4 Gross Profit 344.4 344.4 322.6 322.6 EBITDA 120.8 120.8 100.2 117.0 EBITA 105.2 105.4 84.7 102.7 in % 17.4 17.4 14.6% 17.7% EBIT 94.4 101.9 76.6 99.7 in % 15.6 16.9 13.2% 17
Slide 41: Slight temporary increase in TWC through Acquisitions in Distribution Services
Slight temporary increase in TWC through Acquisitions in Distribution Services. Optimization ongoing in 2013 18.5% at sales run EUR million rate of EUR 625 m 200 19.1% 20% 18.1% 18.3% 150 15% 81 79 100 70 14.3% 13.9% 13.1% 10% 50 65 13.2% 67 11.5% 74 12.3% 5% 0 -46 -9.4%* -41 -7.1% -38 -6.3% -50 -2
Slide 42: Solid development of Balance Sheet
Solid development of Balance Sheet (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 (all amounts in EUR million) 31 Dec 2012 31 Dec 2011 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets Total equity 288.3 256.0 436.8 401.0 / Property, plant & equipment N
Slide 43: Very Strong Operating Net Cash Flow in 2012
Very Strong Operating Net Cash Flow in 2012 Operating net cash flow in EUR million 2011 2012 Variance EBITDA* 117.0 120.8 3.3% Δ ± Working capital -19.5 -9.8 -50.1% Operating net cash flow before investments from 97.5 111.0 13.9% operating business Δ ± Investments from operating business -30.7 -30.0
Slide 44: Continuation of Growth Track and Sustainable Margin into 2012
Continuation of Growth Track and Sustainable Margin into 2012 Revenue (in EUR million) Gross profit (in EUR million) 400 54.9% 55.3% 56.0% 55.5% 57.0% 60% of sales 581 605 600 458 490 300 450 344 40% 330 323 200 300 275 251 182 20% 150 100 0 0 0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Per
Slide 45: Pro-active FCF Management to be Continued
Pro-active FCF Management to be Continued Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 200 18.5% 18.0% 18.1% 18.3% 18.5%* 20% of revenues 80 150 100 70 81 79 49 45 10% 50 74 54 45 65 67 60 0 -19 -30 -46 -41 -38 -50 0% 2008 2009 2010 2011 2012 40 81 Invento
Slide 46: Shareholder Structure
Shareholder Structure Identified institutional Shareholders 100% 75% 27% 50% 25% 27% 25% 21% 0% pre IPO post IPO Dec. 2012 Today Dec. 2011 Germany United Kingdom USA Rest of World 3i MABA CYPRUS Ltd. old & existing management free float Free float per August 2013 includes: Ameriprise, USA incl. Thre
Slide 47: Event Date / Contact
Event Date Publication of Q3 Results 2013 06 November 2013 Contact Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Email: Andreas.Troesch@normagroup.com 47
Slide 48: 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 “