Slide 1: Investing in Technology to Create Value
INVESTING IN TECHNOLOGY TO CREATE VALUE London, September 25th 2003 1
Slide 2: Index
Index § Gefran Group § Core Business § Products & Technologies § Market Coverage § Market Trend § SIEI Acquisition § Financials 2
Slide 3: Gefran Group
Gefran Group = GEFRAN
Slide 4: Gefran Group Past & Mission
Gefran Group Past & Mission Gefran Sensori Gefran Spa §GEFRAN Group: 30 years of experience and constant research applied to automation of industrial processes. 61 MEuro revenues in 2002 and about 500 employees worldwide §National and international leader in designing, manufacturing and distributing
Slide 5: Gefran Group Strengths
Gefran Group Strengths Technological excellence § Control of the core technology for designing and manufacturing products with a high potential growth § Deep knowledge of customers industrial automation needs § Constant investments in process and product innovation § Cooperation with qualified Resea
Slide 6: Gefran group structure
Gefran group structure GEFRAN S.p.A. headquarters GEFRAN SENSORI s.r.l. * SIEI S.p.A. * (98%) (65%) GEFRAN CO.RE.CI S.A. (France) * (100%) GEFRAN ISI, Inc. (USA) * SIEI AMERICA Inc. (USA) (100%) (100%) GEFRAN GmbH (Germany) SIEI ASIA PTE (Singapore) (100%) (100%) GEFRAN BENELUX BVBA (Benelux) SIEI F
Slide 7: Core Business
Core Business = GEFRAN
Slide 8: Core Business Components applications
Core Business Components applications PRODUCTS FUNCTIONS APPLICATIONS § Sensors/Transmitters Measurement of process variables, such Plastic § position as temperature, Rubber § pressure pressure, position and Die-casting § temperature speed Packaging § force Ceramics § humidity Indication & regulatio
Slide 9: Core Business Systems applications
Core Business Systems applications PRODUCTS FUNCTIONS APPLICATIONS Systems § Industrial PC’s / Operator’s interface Control and Injection § Programmable Logic automation of the Blowing machine cycle and of Controllers (PLC) Extrusion industrial processes § Automation Software Die-casting § Customize
Slide 10: Products & Technologies
= GEFRAN Products & Technologies 10
Slide 11: Products & Technologies
Products & Technologies WITH SUBSTANTIAL INVESTMENTS IN R&D AND IN PRODUCTION PROCESS GEFRAN OFFERS: § the widest product range: sensors, electronic components and HW / SW platforms for industrial process automation and control § complete control of all production processes with special regard to th
Slide 12: Products & Technologies Samples from Gefran catalog
Products & Technologies Samples from Gefran catalog SENSORS OF COMPONENTS FOR PHYSICAL QUANTITIES ELECTRONIC REGULATION Linear position transducers Relative humidity sensors Electronic power Melt pressure Controllers & units transducers indicators COMPLETE AUTOMATION SOLUTIONS Industrial PLC’s & PC’
Slide 13: Market Coverage
= GEFRAN Market Coverage 13
Slide 14: Market Coverage
Market Coverage § Strong presence in Italy with 20 sales specialists to support the OEM market § Subsidiaries in the major industrial economies in Europe: Germany, France (*) U.K., Benelux and Switzerland § Subsidiary in USA (Boston) (**) to serve the North America § Subsidiary in Brasil to serve La
Slide 15: Market Coverage
Market Coverage More than 65 System Integrators in the world to serve the “demanding” market of OEM’s Gefran manufacturing sites Gefran subsidiaries Gefran distributors 15
Slide 16: Market Trend
= GEFRAN Market Trend 16
Slide 17: Market Trend: Plastic Sector Outgrows GDP
Market Trend PLASTIC SECTOR OUTGROWS GDP WORLDWIDE CONSUMPTION OF PLASTIC MATERIAL YEARS 180,0 156,9 8.000 160,0 7.000 140,0 6.000 BIL Euro 116,6 5.000 120,0 4.000 100,0 3.000 2.000 80,0 1.000 60,0 - 40,0 1997 1998 1999 2000 2001 40,0 METAL TOOL YearsPLASTIC & RUBBER 20,0 TEXTILE PACKAGING WOOD FLEX
Slide 18: Market Trend: Turnover and Product Split
Market Trend Turnover 80 68,7 Values (MEuro) 57,6 61,5 59,4 60 45,5 50,3 PRODUCT SPLITTING 40 20 2001 2001 2002 2002 2003 2003 0 1997 1998 1999 2000 2001 2002 System System 27 27 27 27 26 26 Years Sensors Sensors 36 36 39 39 40 40 Electronics 27 27 27 Export Electronics 27 27 27 Other Other 10 10 77
Slide 19: Market Trend
Market Trend § The industrial automation market (plastics, packaging, wood ) with a traditional cyclical trend, has been in recession since 2001, with a drop in demand up to 40% § Gefran turnover is proved to be anticycled not being affected by the drop of the core market Ø Components sales increase
Slide 20: Market Trend: Revenues per product line
Market Trend Revenues per product line § Components: instruments (27%), sensors (40%) § Systems (26%) § Other (7%) 2003 7% 40% 53% Components Sistems other 20
Slide 21: Market Trend: Revenues per geographical areas
Market Trend Revenues per geographical areas § Doubling of export sales in the last 5 years (China, Germany, USA) § Undisputed leader in the linear displacement transducer field on the Chinese market at Dec. 31st 2002: 23,5% 26,1% Italy Europe Rest of the world 50,4% 21
Slide 22: SIEI Acquisition
= GEFRAN SIEI Acquisition 22
Slide 23: SIEI Acquisition
SIEI Acquisition July 2003 : acquisition of SIEI Group (previous SIEI Peterlongo) undisputed market leader in Italy for inverters and drivers Reasons : - product range completion - sales synergy on same customers ( plastic machineries) - capture of growing opportunities in electric injection molding
Slide 24: SIEI Product Offer
SIEI Acquisition SIEI PRODUCT OFFER § Servodrives To Regulate The Speed Of D.C. Electric Motors § Frequency Inverter To Regulate The Speed Of Ac Electric Motor § Safety Optical Barrierrs For Protection 24
Slide 25: Market Served by SIEI
SIEI Acquisition MARKET SERVED BY SIEI: § Plastic manufacturing process § Civil & industrial lifting devices § Paper milling § Textile manufacturing process 25
Slide 26: SIEI Restructuring Plan
SIEI Acquisition SIEI Group has began in 2003 an aggressive restructuring plan: § rationalization of sales organisation (12 branches closed) § concentration in the headquarters of Gerenzano of the other industrial sites (3 plants closed) § reduction the number of employees (from 300 in 2002 to 180 i
Slide 27: Financials: SIEI's acquisition
Financials SIEI’s acquisition Profit&loss Y2002 Y2003E Y2004E Turnover 50,8 32,0 30,0 Net Result of SIEI’s Group -14,0 -2,5 0,8 The net financial position of the Gefran Group after the consolidation of SIEI’s Group amounts to 10 million Euros of available funds. 27
Slide 28: SIEI's acquisition cost and equity
SIEI Acquisition SIEI’s acquisition (thousand of Euro) total cost for acquisition 3.110 a SIEI's net Equity 18.809 at 29th July 2003 Equity owned by Gefran Group (65%) 12.226 b surplus value 9.116 a-b 28
Slide 29: Financials
= GEFRAN Financials 29
Slide 30: Financials Profit&Loss
Financials Profit&Loss (thousand of Euro) 1°H 2003 1°H 2002 % '02/'03 Y 2002 REVENUES 30.063 31.475 -4,5% 60.539 VALUE ADDED 20.526 20.884 -1,7% 40.477 as % of revenues 68,3% 66,4% 66,9% EBITDA 3.068 2.729 12,4% 5.847 as % of revenues 10,2% 8,7% 9,7% EBIT 1.023 684 49,6% 1.563 as % of revenues 3,4%
Slide 31: Financials Reclassified assets & liabilities
Financials Reclassified assets & liabilities (Thousand of Euro) 1°H 2003 1°H 2002 Net working capital 21 19 Net assets 28 30 Severance indemnity and other funds -4 -4 ------------ ------------ Net invested capital 45 45 financed by: Short-term borrowing (available funds) -35 -40 Medium-term borrowin
Slide 32: Financials Consolidated cash flow
Financials Consolidated cash flow (Thousand of Euro) 1°H 2003 1°H 2002 Initial available funds 37,2 42,1 Self-financing 2,2 1,7 Change in working capital - 0,3 1,6 ----------- ------ Cash Flow from operating activities 1,9 3,3 Cash Flow to financial activity -4,3 -5,6 ------ ------ Change in financi
Slide 33: Financials Gefran in the stock market
Financials Gefran in the stock market § Number of shares: 14.400.000 § Free float = 38,04% § Market capitalization: 54 millions of Euros § Dividend 1999: Euro 0,03 § Dividend 2000: Euro 0,08 § Dividend 2001: Euro 0,20 § Dividend 2002: Euro 0,20 § Listed in the stock market: since June 1998 § Listed
Slide 34: Financials Gefran performance
Financials Gefran performance 15,00% 10,00% Gefran vs Mibstar 5,00% Gefran 0,00% Mibstar -5,00% -10,00% -15,00% 30/12/02 30/01/03 28/02/03 30/03/03 30/04/03 30/05/03 30/06/03 30/07/03 30/08/03 20,00% 15,00% Gefran vs 10,00% Electronic index 5,00% Gefran 0,00% Electronic index -5,00% -10,00% -15,00%
Slide 35: Thanks for your kind attention
THANKS FOR YOUR KIND ATTENTION for further information, please contact: Giuseppe Stefini – Investor Relator Gefran S.p.A phone +39 30 9888265 fax +39 30 9888300 e-mail address stefini@gefran.com 35