Kendrion N.v. · EURONEXT:KENDR
Kendrion — FY2010 Earnings Presentation
21 slides from Kendrion's earnings presentation, Feb 28, 2011
Slide 1: Annual Results 2010 – Analysts' Meeting
28-2-2011 Annual Results 2010 Analysts' Meeting Monday, 28 February 2011 Agenda 1. Kendrion at a glance 2. 2010 highlights 3. Key figures for 2010 and financial objectives 4. Review of the business units 5. Financial position 6. Dividend 7. European Commission fine 8. "100 years of electromagnetism"
Slide 2: Kendrion at a glance: The Kendrion organisation
28-2-2011 1. Kendrion at a glance 3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,400 employees (including 200 temps) in 12 countries Turnover 2010: approximately EUR 220 million Listed company on NYSE Euronext's Am
Slide 3: Kendrion breakdown of revenue of 2010
28-2-2011 Organisation – Kendrion breakdown of revenue of 2010 Industrial Magnetic Systems Passenger Car Systems • Process engineering • Automotive applications • Medical technology • Hydraulic applications • Transportation technology • Door lock switches • Metering devices and filling stations • Re
Slide 4: Committed to being a high-performer in selected business units
28-2-2011 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives To develop leading positions in business-to-business niche markets and to reach geographical spread To develop business units that have strong international Organic growth > 10% To create op
Slide 5: Technology and innovation
28-2-2011 Technology and innovation We are passion We develop passionately products for our customers We are driven We identify ourselves with our customers and develop customer-specific and solution-driven products We are ambitious Our drive for fulfilling customer demands and solutions inspi
Slide 6: Kendrion's strategy
28-2-2011 Kendrion's strategy - A clearly defined profile of a multinational, fast-growing high-tech company - Building leading positions in business-to-business niche markets - Creating operational and commercial synergy between the business units - Ambitious growth targets (EUR 350 million in reve
Slide 7: 2010 highlights
28-2-2011 2010 highlights (1) - Excellent year; organic revenue growth of 43% - Very strong fourth quarter (revenue up 46%); our highest net quarterly profit on record - Net profit for full year 2010: EUR 16.6 million (including a non-recurring tax gain of EUR 1.8 million) - Company has fully benefi
Slide 8: Key figures 2010
28-2-2011 3. Key figures for 2010 and financial objectives 15 Key figures 2010 (x EUR 1 million) Q4 2010 4 Q4 2009 4 Revenue 58.9 40.4 EBITA from ordinary activities 6.6 2.4 Net profit 6.2 1.8 (x EUR 1 million) 2010 1 2009 Revenue 221.9 149.2 EBITA from ordinary activities 24.2 5.7 2 Net profit 16.6
Slide 9: Financial objectives
28-2-2011 Financial objectives Target Realisation 2010 Organic growth >10% per year 43% ROS >10% 10.9% ROI >17.5% 18.7% Solvency ≥ 30% 64.7% EBITDA/Interest-bearing debt <3.00 0.16 Free cash flow Healthy 105% of net profit Dividend 30% of net profit 40% of net profit 17 4a. Review of the business un
Slide 10: Industrial Magnetic Systems: General and 2010
28-2-2011 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: mechanical engineering, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in Germany, Switzerland, Austria, China and the US an
Slide 11: Industrial Drive Systems: General
28-2-2011 4b. Review of the business units 21 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Production site in Germany; international sales are coordinated through UK sales office - Acquisition of Magneta in Aerzen, Germany, effective 1 March 2010 -
Slide 12: Industrial Drive Systems: 2010
28-2-2011 2010 - Strong organic revenue growth in 2010 (43%) - Improved efficiency thanks to "Springtime"; sharp increase in flexibility - Accelerated growth during the year - Growth driven mainly by revival in German machine-building industry (exports to China) - Other growth driver: innovative new
Slide 13: Passenger Car Systems: General and 2010
28-2-2011 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania and China - Primarily serves European Original Equipment Manufacturers (Daimler, Volkswagen (incl. Audi]) PSA) - Focus on energy effi
Slide 14: Commercial Vehicle Systems: General
28-2-2011 4d. Review of the business units 27 General - Operations: components and total cooling systems for buses and coaches, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Sites in Germany, US, Mexico, Brazil and China - USPs
Slide 15: Commercial Vehicle Systems: 2010
28-2-2011 2010 - Strong revenue growth in 2010 (+37%) - German bus market not yet back to pre-crisis levels - Growth driven primarily by Far East (China and Korea) - Continued focus on truck market in coming years - New product for truck market ("Terminator") successful in US market - New-market pen
Slide 16: Financial position
28-2-2011 Financial position - Free cash flow for Q4 2010: EUR 7.5 million - Excellent free cash flow for full year 2010: EUR 17.4 million - Working capital is under control - Strong balance sheet (net debt at year-end 2010: EUR 5.2 million; solvency: 65%) - New five-year financing arrangement (EUR
Slide 17: Dividend
28-2-2011 Dividend - Dividend policy: 30% of net profit - Optional dividend proposed for 2010: 40% (on account of the results, low debt and the lack of a dividend for 2009) - Dividend: EUR 0.59 per share 33 7. European Commission fine 34 17
Slide 18: European Commission fine
28-2-2011 European Commission fine - Fine imposed in 2005 (EUR 34 million) - Reason: alleged involvement of former subsidiary Fardem Packaging in cartel during period 1995-2002 - According to three respected law firms, Kendrion stands a good chance of successfully defending itself before the General
Slide 19: 100 years of electromagnetism
28-2-2011 100 years of electromagnetism - 1911: Kendrion Binder established in Villingen, Germany - Celebration of 100 years of electromagnetism in 2011 - Various events to be organised for key stakeholders - This includes a special meeting to be held on 15 September 2011; attendees will include maj
Slide 20: Priorities and outlook for 2011
28-2-2011 Priorities for 2011 - Four key themes (Flexibility, Innovation, Sustainability and Globalisation) - Further market segmentation by industry - Achieving our financial objectives (in relation to costs and cash) - Expanding our business in Romania and India - Further expanding our European op
Slide 21: We magnetise the world!
28-2-2011 We magnetise the world! www.kendrion.com 21