TKH Group N.V. Cert · EURONEXT:TWEKA
TKH Group N.V. Cert — TKH Group — FY2012 Earnings Presentation
55 slides from TKH Group N.V. Cert's earnings presentation, March 2013
Slide 1: Full year results 2012
Full year results 2012 TKH Group NV 1 | Annual results 2012 | March 2013
Slide 2: Content
CONTENT 1 Developments 2012 2 Notes to the results 2012 3 Strategic developments, business drivers & outlook 4 TKH technologies 5 High growth and focus vertical markets 2 | Annual results 2012 | March 2013
Slide 3: Profile
PROFILE Turnover € 1.1 billion Geographical distribution Number of employees (FTE) 4,736 of turnover (in %) Technology company Four core technologies vision, communication, connectivity and manufacturing Core technologies are merged together with software and system integration into total solutions
Slide 4: Mission
MISSION TKH intends to be an innovative leading technology (niche) player by providing Telecom, Building and Industrial Solutions based on technologically advanced system concepts, products and related services - based on our four core technologies vision, communication, connectivity and manufacturi
Slide 5: Strategy TKH
STRATEGY TKH Value creation Focus core activities on Telecom Building Industrial Solutions Solutions Solutions Growth sectors Communication, security, care and efficiency Innovations > 15% turnover 5 | Annual results 2012 | March 2013
Slide 6: Developments 2003 - 2012
DEVELOPMENTS 2003 - 2012 Turnover EBITA and ROS 6 | Annual results 2012 | March 2013
Slide 7: Developments 2012
DEVELOPMENTS 2012 7 | Annual results 2012 | March 2013
Slide 8: Highlights 2012
HIGHLIGHTS 2012 Turnover up slightly at € 1.1 billion, organic decline of 5.0% Improvement in market conditions in industrial sector Challenging market conditions in Business Solutions Successful expansion vision & security segment via acquisition of Aasset and Augusta Strong operational result in Q
Slide 9: Highlights 2012
HIGHLIGHTS 2012 Innovations account for 21.2% of turnover Decrease EBITA 2012 with 6.4% – increase H2 2012 11.4% Decrease EBITA due to segment Industrial Solutions Increase EBITA in Q4 before one-off expenses with 25.8% – strong improvement Building Solutions Decrease ROS to 7.8% (2011: 8.7%), in Q4
Slide 10: Important acquisitions 2012
IMPORTANT ACQUISITIONS 2012 Aasset Security (100% interest) – Building Solutions – vision & security systems Consolidation as of 1 March 2012 Leading provider of security solutions and video surveillance systems Turnover: € 35 million Augusta Technologie – (61,5% interest) Consolidation as of 2 July
Slide 11: Highlights 2012: Solutions segmentation
HIGHLIGHTS 2012 Solutions segmentation 11 | Annual results 2012 | March 2013
Slide 12: Telecom Solutions
TELECOM SOLUTIONS (in million € unless stated otherwise) 2012 2011 Δ in % Turnover 167.1 161.7 + 3.3 EBITA 1) 14.7 13.0 + 13.5 ROS 8.8% 8.0% 1) Before one-off expenses of € 0.4 million in 2012. Organic turnover growth: +3.3% Strong decrease copper networks due to priority of investments in optic
Slide 13: Telecom Solutions: fibre networks systems
HIGHLIGHTS 2012 TELECOM SOLUTIONS Segment fibre networks systems: turnover +11.6% Optical fibre (cable), connectivity systems and components, active equipment Growth in line with market developments Expansion of production capacity to 4.5 million kilometres fibre successfully completed Major e
Slide 14: Telecom Solutions: copper and indoor telecom
HIGHLIGHTS 2012 TELECOM SOLUTIONS Segment copper networks systems: turnover -19.2% Copper cable, connectivity systems and components, active equipment Short-lived upturn in 2011 for maintenance of copper networks reversed in 2012 Shift in priority to investments in optical fibre networks results
Slide 15: Building Solutions
BUILDING SOLUTIONS (in million € unless stated otherwise) 2012 2011 Δ in % Turnover 436.9 382.1 + 14.3 EBITA 1) 22.9 20.5 + 11.9 ROS 5.3% 5.4% 1) Before one-off expenses of € 7.6 million in 2012 (2011: € 2.0 million). Organic growth: -4.0% One-off expense € 7.6 million for efficiency program R
Slide 16: Building Solutions: building technologies
HIGHLIGHTS 2012 BUILDING SOLUTIONS Segment building technologies: turnover +11.1% Energy-saving lighting and light switch systems, energy management systems, care systems, structured cabling systems Improvement position in care sector due to acquisition Mextal mid 2011 Considerable increase in c
Slide 17: Building Solutions: vision & security systems
HIGHLIGHTS 2012 BUILDING SOLUTIONS Segment vision & security systems: turnover +47.0% Vision technology, systems for CCTV, video/audio-analysis and detection, intercom, access controls and registration, central control room integration Successful expansion vision & security activities – Augusta an
Slide 18: Building Solutions: connectivity systems
HIGHLIGHTS 2012 BUILDING SOLUTIONS Segment connectivity systems: turnover -5.9% Specialty cable, connectivity systems and components for shipping, railways, solar and wind energy as well as installation and energy cable for niche markets Challenging market circumstances due to lower market volumes
Slide 19: Industrial Solutions
INDUSTRIAL SOLUTIONS (in million € unless stated otherwise) 2012 2011 Δ in % Turnover 497.6 517.2 - 3.8 EBITA 60.0 69.6 - 13.8 ROS 12.1% 13.5% Organic growth: -8.3% Augusta 4.8% turnover share As from Q3 – higher order intake manufacturing systems 19 | Annual results 2012 | March 2013
Slide 20: Industrial Solutions: connectivity systems
HIGHLIGHTS 2012 INDUSTRIAL SOLUTIONS Segment connectivity systems: turnover -3.4% Specialty cable systems and modules for the medical, robotic, automotive and machine building industry Reluctance in investments for capital goods has negative impact Q4 – improved situation with slight organic gro
Slide 21: Industrial Solutions: manufacturing systems
HIGHLIGHTS 2012 INDUSTRIAL SOLUTIONS Segment manufacturing systems: turnover -4.2% Tyre manufacturing systems, can washers, machine control systems, product handling systems and test equipment Growing market position for tyre manufacturers that opt for VMI’s technology due to high quality level an
Slide 22: Notes to the results 2012
NOTES TO THE RESULTS 2012 22 | Annual results 2012 | March 2013
Slide 23: Change in turnover
NOTES TO THE RESULTS 2012 Change in turnover (in € million) 23 | Annual results 2012 | March 2013
Slide 24: Geographical distribution of turnover
NOTES TO THE RESULTS 2012 Geographical distribution of turnover (in %) 24 | Annual results 2012 | March 2013
Slide 25: Development of turnover per solution
NOTES TO THE RESULTS 2012 Development of turnover per solution (in million € unless stated otherwise) Turnover 1) Turnover 1) Total Impact Organic 2012 2011 growth prices raw growth materials Telecom Solutions 167.1 161.7 + 3.3% + 3.3% Building Solutions 436.9 382.1 + 14.3% - 0.3% - 4.0% Industrial
Slide 26: Notes to the results 2012: gross margin and EBITA
NOTES TO THE RESULTS 2012 Gross margin increased to 40.9% (2011: 38.9%) Increase mainly in Building and Industrial Solutions Positive impact from lower raw material prices and decrease in work in progress and inventory finished goods Acquisition of Augusta with a relatively high gross margin Decreas
Slide 27: EBITA per Solution
NOTES TO THE RESULTS 2012 EBITA per Solution (in million € unless stated otherwise) 2012 2011 EBITA 1) ROS EBITA 1) ROS % % Telecom Solutions 14.7 8.8 13.0 8.0 Building Solutions 22.9 5.3 20.2 5.4 Industrial Solutions 60.0 12.1 69.6 13.5 Other - 11.4 - 11.0 Total 86.2 7.8 92.1 8.7 1) excluding one-o
Slide 28: One-off expenses
NOTES TO THE RESULTS 2012 One-off expenses Efficiency program in Building Solutions – € 8.0 million Acquisition costs for mainly Augusta Technologie – € 4.2 million (2011: € 2.0 million for Siqura) Impairments of € 3.3 million for activities mainly in Building Solutions that will not be continued or
Slide 29: Change in financial result
NOTES TO THE RESULTS 2012 Change in financial result (in € million) Increase financial expenses with € 4.6 million Increase in average net interest bearing debt in 2012 Increase “cost of funds” due to refinance in December 2011 and increased committed facilities in April 2012 in relation to the acqu
Slide 30: Income statement 2012
NOTES TO THE RESULTS 2012 (in million €) 2012 2011 Δ% Turnover 1) 1,102.4 1,061.1 +3.9 Costs of raw materials / consumables - 651.8 - 648.6 Gross margin 450.6 40.9% 512.5 38.9% +9.2 Operating expenses 364.4 320.4 +13.7 EBITA before one-off expenses 86.2 7.8% 92.1 8.7% One-off expenses 12.2 2.0 EBITA
Slide 31: Balance sheet per 31 December 2012
BALANCE SHEET PER 31 DECEMBER 2012 (in million €) 31-12-2012 31-12-2011 Assets Non current assets 567.7 398.1 Inventories 196.6 164.8 Receivables 201.1 186.8 Cash and cash equivalents 66.5 28.6 Assets held for sale 7.2 7.2 Total 1,039.1 785.5 Liabilities Equity 427.6 357.9 Long term liabilities 298.
Slide 32: Change in working capital
NOTES TO THE BALANCE SHEET PER 31 DECEMBER 2012 Change in working capital (in € million) 32 | Annual results 2012 | March 2013
Slide 33: Change in net debt
NOTES TO THE BALANCE SHEET PER 31 DECEMBER 2012 Change in net debt (in € million) 33 | Annual results 2012 | March 2013
Slide 34: Cash flow statement
CASH FLOW STATEMENT (in million €) 2012 2011 Operating result 49.9 77.1 Depreciation, amortisation and impairment 42.1 28.6 Share and option schemes 1.7 1.6 Result divestments -0.2 -0.3 Change in provision 0.1 -2.5 Change in working capital 4.8 -31.6 Cash flow from operations 98.4 72.9 Interest paid
Slide 35: Ratios
RATIOS 2012 2011 Working capital / Turnover 1) 13.1% 11.6% Net debt / EBITDA 2) 1.6 0.9 Gearing (net debt / equity) 3) 41.3% 24.3% ICR (EBITDA / Financial cost) 4) 9.8 13.3 Solvency 41.1% 45.6% Earnings per ordinary share before amortisation and one-off income and expenses € 1.28 € 1.63 Earnings per
Slide 36: Strategic developments, business drivers & outlook
Strategic developments, business drivers & outlook 36 | Annual results 2012 | March 2013
Slide 37: Business drivers: TKH focus
BUSINESS DRIVERS TKH focus Continuation high investment level innovations and R&D Expansion technology lead on competitors High priority for market share growth based on technology lead Four core technologies: vision & security, communication, connectivity and manufacturing systems Defined vertical
Slide 38: Business drivers: potential for above-average performance
BUSINESS DRIVERS TKH focuses on distinguishing potential for an above-average performance Niche player strategy - focus on high quality solutions with high margins High pricing power by innovative unique solutions Attractive margins because of high yield on investments for customers Commodity produc
Slide 39: Financial objectives TKH
FINANCIAL OBJECTIVES TKH Progress strategic development has positive impact on realisation ROS target ROS target: 9 to 10% ROCE target: 18 à 20% solvency target: > 35% No specific term possible due to current economic climate 39 | Annual results 2012 | March 2013
Slide 40: Outlook
OUTLOOK Telecom Solutions Expected growth in investments in optical fibre networks, TKH solid positioned in European market for further grow in line with market growth Further decline turnover in copper networks in line with shift in investments towards optical fibre networks Building Solutions Expe
Slide 41: Outlook
OUTLOOK In view of the uncertain economic conditions in a number of segments, it is too early to make a profit forecast for 2013 for TKH as a whole. As usual, we will aim to publish a forecast for the full year 2013 profit at the presentation of the half-year results in August 2013 41 | Annual resul
Slide 42: TKH technologies
TKH technologies 42 | Annual results 2012 | March 2013
Slide 43: Technologies: Connectivity
TECHNOLOGIES Connectivity Building & infra Data / Medical industry telecommunication Connectivity systems Robot / machine Energy 43 | Annual distribution results 2012 | March 2013 building industry
Slide 44: Technologies: Vision & Security
TECHNOLOGIES Vision & Security Robot control and Security systems diagnosis Video data and analytics Industrial automation Lighting systems 44 | Annual results 2012 | March 2013 Logistics efficiency Industrial inspection
Slide 45: Technologies: Communication
TECHNOLOGIES Communication Video data and Optical fibre systems analytics Access and payment systems Intrusion Intercom systems Video management 45 | Annual results 2012 | March 2013 and monitoring Access systems
Slide 46: Technologies: Manufacturing systems
TECHNOLOGIES Manufacturing systems Vision 46 | Annual results 2012 | March 2013
Slide 47: High growth and focus vertical markets
High growth and focus vertical markets 47 | Annual results 2012 | March 2013
Slide 48: Telecom Solutions: Fibre optic network solutions
TELECOM SOLUTIONS Vertical: Fibre optic network solutions 48 | Annual results 2012 | March 2013
Slide 49: Building Solutions: Care solutions
BUILDING SOLUTIONS Vertical: Care solutions Keyless access Personal assistance Wandering detection Medicine distribution system alarm Nurse call system Viedome Video Care Telecare Viedome TV and communication Telemedicine Care telephony/ Therapy loyalty Personal alarm 49 | Annual results 2012 | Marc
Slide 50: Building Solutions: Parking solutions
BUILDING SOLUTIONS Vertical: Parking solutions Sustainable lighting/connectivity Central control room systems Security-systems Payment Licence place recognition Services/exploitation third parties Guidance Parking management Reservation/e-paying 50 | Annual results 2012 | March 2013
Slide 51: Building Solutions: Infra & Tunnel solutions
BUILDING SOLUTIONS Vertical: Infra & Tunnel solutions 51 | Annual results 2012 | March 2013
Slide 52: Building Solutions: Marine & Offshore
BUILDING SOLUTIONS Vertical: Marine & Offshore 52 | Annual results 2012 | March 2013
Slide 53: Industrial Solutions: Machine vision
INDUSTRIAL SOLUTIONS Vertical: Machine vision Medical / Mailing (logistics) Medicine Automotive Diagnosis system distribution assembly Tyre building Surgery robot Quality control 53 | Annual results 2012 | March 2013
Slide 54: Industrial Solutions: Tyre building
INDUSTRIAL SOLUTIONS Vertical: Tyre building 54 | Annual results 2012 | March 2013
Slide 55: 55 | Annual results 2012 | March 2013
55 | Annual results 2012 | March 2013