Arbonia Ag · SIX:ARBN

Arbonia — AFG Arbonia-Forster-Holding — FY2011 Earnings Presentation

48 slides from Arbonia's earnings presentation, Mar 6, 2012

  1. Slide 1: AFG – Arbonia-Forster-Group: FY 2011 presentation

    AFG – Arbonia-Forster-Group Integrated solutions for premium buildings FY 2011 presentation Zurich, 06 March 2012 Daniel Frutig, CEO Felix Bodmer, CFO

  2. Slide 2: Disclaimer

    Disclaimer AFG Arbonia-Forster-Holding AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim a

  3. Slide 3: Agenda

    AGENDA 1. Highlights 2011 & Business Update 2. Financials FY2011 3. Strategy & Implementation 4. Outlook 06/03/2012 Folie 3

  4. Slide 4: AFG Business - Highlights 2011

    AFG Business - Highlights 2011  First success from refocusing of business portfolio: - Sale of ASTA Transportation Business - Investment into RWD Schlatter - Forster Italy and Warendorf UK: Transformation into Agencies  Operational improvements implemented: - Marketing AFG Kitchen: 3 Swiss kitchen

  5. Slide 5: Financial key figures 2011

    Financial key figures 2011  Net revenues: CHF 1’347 Mio., stable in local currencies Strong CHF led to reported 4.7% decline  Underlying EBITDA: CHF 102 Mio.(-22%), 7.6% Margin Currencies and higher raw materials impacted margins  Underlying EBIT: CHF 41 Mio. (-38%), 3.0% Margin before negative i

  6. Slide 6: Highlights by Division

    Highlights by Division Heating & Kitchen & Windows & Steel Surface Sanitary Refrigeration Doors Technology Technology % of group net revenues 36% 19% 30% 10% 5% Currency adj. growth -1.7% -2.4% +2.6% +0.8% +8.5% EBIT margin, adjusted 7.6% -3.5% 9.9% 0.5% -17.9% Business  New production  Production

  7. Slide 7: Agenda

    AGENDA 1. Highlights 2011 & Business Update 2. Financials FY2011 3. Strategy & Implementation 4. Outlook 06/03/2012 Folie 7

  8. Slide 8: Income Statement

    Income Statement in million CHF 2011 in % 2010 in % Net revenues 1’347.4 100.0 1’413.5 100.0 Cost of material and goods -605.3 -44.9 -635.9 -45.0 Personnel expenses -470.3 -34.9 -489.8 -34.6 Other operating expenses -192.7 -14.3 -198.7 -14.1 EBITDA 100.2 7.4 121.1 8.6 Depreciation, amortisation, imp

  9. Slide 9: One-time Effects

    One-time Effects in million CHF Actual Impair- Impair- Impair- Impair- Others 2011 2011 ments ments ments ments Without Division Division Division Division one-time HTS KR ST STI effects Net revenues 1’347.4 1‘347.4 EBITDA 100.2 +2.5 -0.3 102.4 EBIT -34.3 +7.7 +0.5 +6.5 +55.6 +2.7 1) 40.9 Group resu

  10. Slide 10: Income Statement (without one-time Effects)

    Income Statement (without one-time Effects) in million CHF 2011 2010 % Net revenues 1’347.4 1’413.5 -4.7 Cost of material and goods -602.8 -635.9 Personnel expenses -470.3 -473.6 Other operating expenses -191.9 -199.6 EBITDA 102.4 130.5 -21.5 in % of net revenues 7.6 9.2 Depreciation, amortisation

  11. Slide 11: Net Revenues by Division / Country

    Net Revenues by Division / Country Net Revenues by Division Net Revenues by Country 5% (4%) 10% (10%) RoW 21% (23%) 36% (38%) Switzerland 30% (29%) 50% (48%) Germany 29% (29%) 19% (19%) Heating and Sanitary Kitchens and Refrigeration Windows and Doors Steel Technology Surface Technology 06/03/2012 F

  12. Slide 12: Net Revenues RoW

    Net Revenues RoW in million CHF 2011 2010 % France 56.1 54.8 +2.4 Great Britain 42.8 52.0 -17.7 Russia 32.7 29.3 +11.6 Poland 24.5 24.5 0.0 Slovakia 23.4 24.2 -3.3 Czech Republic 21.1 19.9 +6.0 Austria 20.8 21.6 -3.7 Italy 18.5 21.6 -14.4 Other countries 71.0 74.4 -4.6 Total 310.9 322.3 -3.5 Adjust

  13. Slide 13: Net Revenues by Functional Currencies

    Net Revenues by Functional Currencies 3% (4%) 2% (2%) Foreign currency impact from translation: • CHF -59.9 million 34% (36%) 61% (58%) Foreign currency impact from transaction: • Steel Technology: ca. CHF -10.5 million • Surface Technology: ca. CHF -1.5 million CHF EUR GBP Others 06/03/2012 Figures

  14. Slide 14: Net Revenues / EBITDA adjusted / EBIT adjusted

    Net Revenues / EBITDA adjusted / EBIT adjusted in million CHF 1'800 18.0% 1'571 1'600 16.0% 1'471 1'414 1'384 1'347 1'400 14.0% 1'200 12.0% 1'000 10.0% 800 8.0% 600 6.0% 400 4.0% 200 2.0% 0 0.0% 2007 2008 2009 2010 2011 Net revenues EBITDA adj. EBIT adj. 06/03/2012 Slide 14

  15. Slide 15: Growth by Division and Semester

    Growth by Division and Semester 10% 8.3% 5% 5.5% 3.5% 2.6% 0% -1.7% -2.4% -1.0% -5% -6.4% -8.3% -10% Heating and Kitchens and Windows and Sanitary Refrigeration Doors Growth 2011 Growth 1st Semester 20% Growth 2nd Semester 17.7% 10% 9.4% 8.5% 0.8% 0.3% 0% -7.2% -10% Steel Technology Surface Technolo

  16. Slide 16: EBITDA / EBIT margin adjusted by Division

    EBITDA / EBIT margin adjusted by Division EBITDA margin, adjusted 20% 12.8% 12.9% 13.1% 12.2% 11.0% 10% 5.9% 0.0% 0.9% 0% -0.9% 2010 -2.0% 2011 -10% -20% Heating and Kitchens and Windows and Steel Surface Sanitary Refrigeration Doors Technology Technology EBIT margin, adjusted 20% 9.5% 9.6% 9.9% 10%

  17. Slide 17: Balance Sheet

    Balance Sheet in million CHF 1'600 1'400 Current liabilities 1'200 Current liabilities 19.8% Current assets 43.6% 21.0% 1'000 Current assets 45.7% Non-current 800 Non-current liabilities liabilities 38.4% 600 40.0% 400 Non-current assets Non-current assets Shareholders' 56.4% Shareholders' 54.3% equ

  18. Slide 18: Free Cash Flow

    Free Cash Flow 1) in million CHF 150 112 100 60 50 13 2007 2008 0 2009 2010 2011 -50 -64 -100 -150 -155 -200 1) = Cash flow from operating and investing activities 06/03/2012 Slide 18

  19. Slide 19: Development of Investments

    Development of Investments in million CHF 250 229 200 162 150 100 71 70 41 50 0 2007 2008 2009 2010 2011 Property, plant, equipment Intangible assets Acquisition of subsidiaries Total investments 06/03/2012 Slide 19

  20. Slide 20: Changes in Operating Net Working Capital

    Changes in Operating Net Working Capital in million CHF 350 24.0% 300 22.0% 250 20.0% 200 18.0% 150 16.0% 100 14.0% 50 12.0% 0 10.0% 2007 2008 2009 2010 2011 Operating net working capital % Net revenues Operating NWC = Accounts receivable + inventories – accounts payable – advances from customers 06

  21. Slide 21: Net Indebtedness and Leverage Ratio

    Net Indebtedness and Leverage Ratio in million CHF 0 0.0 X 2007 2008 2009 2010 2011 -100 0.5 X -200 -167 1.0 X -169 -239 -300 1.5 X -400 -363 2.0 X -441 -500 2.5 X -600 3.0 X Net indebtedness Leverage ratio 06/03/2012 Slide 21

  22. Slide 22: Maturities of Financial Debt

    Maturities of Financial Debt in million CHF 250 AFG is solidly financed to 2014. 202 200 150 138 100 57 50 19 2 2 0 2012 2013 2014 2015 2016 2017- Bond 2010 – 2016, CHF 200 million US private placement 2004 – 2014, USD 160 million Syndicated loan 2007 – 2013, CHF 275 million Others 06/03/2012 Slide

  23. Slide 23: Financial calendar

    Agenda 20 April 2012 Annual General Meeting 2011 07 August 2012 Half-year results 2012 15 November 2012 Investors day 24 January 2013 Release of 2012 net revenues 05 March 2013 Financial media/analysts‘ conference presenting 2012 results 19 April 2013 Annual General Meeting 2012 06/03/2012 Slide 23

  24. Slide 24: Agenda

    AGENDA 1. Highlights 2011 & Business Update 2. Financials FY2011 3. Strategy & Implementation 4. Outlook 06/03/2012 Folie 24

  25. Slide 25: Strategy & Implementation

    Strategy & Implementation With the H1 11 release (Aug 03), we communicated our Process to … • Establish a new governance structure and management team • Implement Priority measures Value Creation all segments • Achieve our Strategic Goals from 2014 Platform for sustainable All within a sensible time

  26. Slide 26: Our Strategic Framework

    Our Strategic Framework Priorities Strategic Goals Framework 1. Industrial Holding 1. Put Management in place Management & Performance 2. Get the basics right 1. Revenues & Cost of Sales 3. Reduce costs and 2. Procurement increase productivity 2. Operational 3. Production Excellence 4. Analyse and a

  27. Slide 27: Priorities – Some Examples (I)

    Priorities – Some Examples (I) 1. Put Management in place 2. Basics Right  Head Corporate Procurement on board  Distribution AFG Kitchen adapted  General Manager China on board  Production Forster Steel kitchen improved  Management AFG Kitchen implemented  We develop our management team  Mana

  28. Slide 28: Priorities – Some Examples (II)

    Priorities – Some Examples (II) 3. Reduce costs and increase 4. Analyze and align productivity portfolio  Cost reduction > CHF 12 Mio  Transportation Services ASTA Outsourced  Restructuring Warendorf  Sale of RS25 initiated  Optimisation Production Heating and Sanitary  Exit Forster Kitchen It

  29. Slide 29: Strategic Goals

    Strategic Goals  Implementation Industrial Holding structure leading to Industrial a focused, lean Group structure, maximizing synergies Holding within portfolio to become the technologically leading construction supplier.  Operational excellence program with concrete Operational measures to facil

  30. Slide 30: Reviewed Group structure to be focused and respond to long-term trends

    1. Reviewed Group structure to be focused and respond to underlying long-term trends 1. Key business activities defined: Building-related focus 2. Entrepreneurial business units with individual, concrete value enhancement targets 3. Clear Management responsibilities allocated to run Business Units s

  31. Slide 31: Operational Excellence: Our M&P Cockpit

    2. Operational Excellence: Our M&P Cockpit with dedicated levers to enhance profitability Growth target 2012-15 Revenue Revenues (100%) +3-5% p.a. expansion EBIT Cost Procurement Production Cost of Sales Admin reduction 45% 20% 25% 5% •Raw material •Productivity •Internationa- •IT Savings savings •Q

  32. Slide 32: Revenues Highlight 1: Launch of Electric Towel Radiators in China

    Revenues Highlight 1: Launch of Electric Towel Radiators in China  Focus Area: Internationalisation  Responsibility: Christoph Moellers (General Manager Greater China)  Executive Team / Board sponsorship: Head of Int. Market & Sales  Internationalisation AFG 2011: 21%  Targeted Internationalisa

  33. Slide 33: Cost Highlight 2: Production optimisation Kermi Stribro

    Cost Highlight 2: Production optimisation Kermi Stribro  Focus Area: Productivity  Responsibility: Alexander Kaiss (CEO Kermi Stribro)  Executive Team / Board sponsorship: Head of Global Operations  Realised Increase in productivity 2011: -4% due to shift of production site from Riesa (DE) to St

  34. Slide 34: Potential from Technological Innovation through co-operation and networking

    3. Potential from Technological Innovation through co-operation and networking 1. Products Drivers for innovation: - e.g. high quality, environmental door panels  Climate protection 2. Research & development  Energy efficiency - e.g. technology transfer (R&D, labour etc.)  Renovation 3. Productio

  35. Slide 35: Example Technological Innovation: WoodStar WS1

    Example Technological Innovation: Break-through WoodStar WS1® Innovation  New launched WoodStar WS1® wood and Wood/Alu window  RWD Schlatter: 1st and only company in Europe to be awarded the natureplus label for sustainable products  Ego® Fresh: In room ventilation system integrated with windows

  36. Slide 36: Growth and Internationalisation

    4. Growth and Internationalisation – Leading home market and Expansion to attractive niches 1. Further penetration of home markets ensure market leadership and facilitate growth 2. Establishment of new AFG internationalisation platform 3. Innovations open new market opportunities 4. Tap new markets

  37. Slide 37: Heating Technology and Sanitary Equipment

    Heating Technology and Sanitary Equipment (36% of Group revenues) Market initiatives Megatrends / Secular growth drivers  Strengthened sales organization:  Heating: Energy efficiency and CO2 e.g. new sales unit in Moscow (RUS) reduction initiatives  Premium presence on trade shows  Sanitary: Con

  38. Slide 38: Kitchen and Refrigeration Technology

    Kitchen and Refrigeration Technology (19% of Group revenues) Market initiatives Megatrends / Secular growth drivers  Concept for direct customer  Requested combination of : interaction 1.) Intelligent architecture, 2.) superior  CRM via eMagazine and iPhone design, and 3.) Innovative technologies

  39. Slide 39: Windows and Doors

    Windows and Doors (30% of Group revenues) Market initiatives Megatrends / Secular growth drivers  Market leadership in CH extended  Energy efficiency and climate protection  Expansion of dealer network in CZ, (Minergy standard) SK  Use of renewable production materials Product initiatives / Inno

  40. Slide 40: Steel Technology

    Steel Technology (10% of Group revenues) Market initiatives Megatrends / Secular growth drivers  Internationalisation with market  Requirement of very narrow tolerance development focussed on Asia Pacific ranges at low costs  Middle East administered by  Tubes for furniture suitable for chrome-

  41. Slide 41: Surface Technology

    Surface Technology (5% of Group revenues) Market initiatives Megatrends / Secular growth drivers  Expansion of aviation activities boosted  Demand for investment goods in through acquisition of Avia Peintures (FR) emerging markets, esp. in China  Acquisition of key client in Germany,  Increasing

  42. Slide 42: Summary of our AFG Mid-term Strategy

    Summary of our AFG Mid-term Strategy Focused Industrial Holding Operational Excellence Management & Performance (M&P) Technological Growth and Innovation Internationalisation Secular growth drivers: Energy & Sustainability, Safety & Security, Comfort & Lifestyle, Renovation AFG: A more focused compa

  43. Slide 43: Agenda

    AGENDA 1. Highlights 2011 & Business Update 2. Financials FY2011 3. Strategy & Implementation 4. Outlook 06/03/2012 Folie 43

  44. Slide 44: AFG Outlook 2012

    AFG Outlook 2012 Market environment remains volatile  Heterogeneous regional development  Sustainability of construction growth in D/CH to be seen Portfolio optimization and focus of resources continues  Divestment of ASTA transportation and logistics, …  Investments into RWD Schlatter facility

  45. Slide 45: ‘New AFG’ – Mid-term targets and 2012 trends

    ‘New AFG’ – Mid-term targets and 2012 trends AFG Mid-term targets: 2011 (Actual): 2012 (trends y-o-y): 1. Average organic revenue 0% growth of > 5% p.a. 2. Group EBIT margin of > 8% 3% 3. Share of revenues generated outside home markets Switzerland and Germany > 40% 21% ‘New AFG’: We follow our road

  46. Slide 46: Technologically leading construction supplier

    Technologically leading construction supplier 1. Attractive products and solutions for the construction industry. 2. Strong position in refurbishment and renovation segment reduces dependency on new-build market. 3. Focus on execution in a streamlined portfolio generates value (5 M&P levers to boost

  47. Slide 47: Thank you for your attention! Your questions?

    Thank you for your attention! Your questions? 06/03/2012 Folie 47

  48. Slide 48: Vielen Dank.

    Vielen Dank. Bedankt Grazie ¡Muchas gracias! 대단히 감사합니다 Choukran Hjertelig takk Obrigado 謝謝 Dankeschön Kiitos paljon Tack so mycket ありがとう Díky Köszönet Cok tesekkürler большое спасибо Dziękuję bardzo Merci beaucoup Thank you

AFG Arbonia-Forster-Holding — FY2011 Earnings Presentation on 6ix