H2apex Group Sca · XETR:H2A
H2apex Group Sca — exceet Group — H1 2014 Earnings Presentation
35 slides from H2apex Group Sca's earnings presentation, August 2014
Slide 1: Investor Relation Presentation
Investor Relation Presentation August 2014 exceet Group | November 2013
Slide 2: Business, Financial Review & Analysis, Growth Strategy & Group Strengths
▪ Business ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 2 exceet Group | August 2014
Slide 3: exceet Group at a Glance
EXCEET GROUP AT A GLANCE Technology Group providing development, (in EUR million) FY 2012 FY 2013 H1 2013 H1 2014 production and services for intelligent electronics in the Health, Industry and Net Sales 188.8 190.8 90.8 92.9 Security markets. EBITDA 16.5 18.3 8.2 8.9 The group combines know-how in
Slide 4: Our Segments
OUR SEGMENTS Segments* Competences End Markets ECMS Intelligent Electronics Comprehensive technology & product portfolio 72% combined with state-of-the art development and manufacturing capabilities ECMS: Electronic Components Modules & Systems Health ESS Sophisticated Applications & Solutions Focus
Slide 5: Market Focus
MARKET FOCUS Markets and share of group sales* Products & Solutions Applications Competences PCBs Miniaturization Hearing aid 40% Medical Certified Box- Imaging Building Health Multichannel Embedding Transceivers 34% Chip Level Precise Sensor Placement Industry Modules Secure Payment Personalization
Slide 6: Innovative In-Channel Hearing Aid
INNOVATIVE IN-CHANNEL HEARING AID exceet`s PCB The hearing aid Final application in the ear Removal Microphone Sealing Battery loops Description Advantages for customers/users Miniaturisation with 15 μm line and space, Use during almost all daily activities material thickness of 25µm and ø22 μm
Slide 7: Insulin Pump and Glucose Sensor
INSULIN PUMP AND GLUCOSE SENSOR ▪ Insulin Pump ▪ 2 layer rigid-flex PCB ▪ Glucose Sensor ▪ 4 layer rigid PCB Description Advantages for customers/users System consists of: ▪ Alerts user in case glucose target limits are reached ▪ Glucose monitoring system consisting of a or likely to be reached to a
Slide 8: Multi-Channel Optic Transceiver
MULTI-CHANNEL OPTIC TRANSCEIVER Optical Signal Multi-Channel Optic Transceiver Electronic Signal Description Advantages for customers/users ▪ Optical signals are converted to electrical ▪ Reduction of cost and space in the field of information via integrated detectors and further data-communication
Slide 9: M2M Solution – Data Handling for Diagnostic Devices
M2M SOLUTION – DATA HANDLING FOR DIAGNOSTIC DEVICES exceet as Full-Service Provider exceet provides: ▪ customized hardware, connectivity tailored to the customers specific requirements as well as HARDWARE the integration of the data into the relevant APPLICATION applications and business processes D
Slide 10: Security Solutions
SECURITY SOLUTIONS Design & Security & Manufacturing & Personalization Service Development Integration Assembly Chip, RFID, NFC, Visa, Master Card Production sites Personalization via Efficient and microcontrollers, Certificated with maximum of laser, thermal, inkjet personalized magnet strips, bar
Slide 11: Operational Highlights
OPERATIONAL HIGHLIGHTS exceet further enhances sales force by installing sales teams in the US and in Scandinavia Sales Reinforcement of activities in the avionic market with certification AS EN 9100 exceet Card Group is now able to offer small batches with new single-card printing machine On-going
Slide 12: Business, Financial Review & Analysis, Growth Strategy & Group Strengths
▪ Business ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 12 exceet Group | August 2014
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS ▪ Free Cash Flow EUR -1.5 million ▪ Revenues are up 2.3% (H1 2013: EUR -3.7 million) to EUR 92.9 million driven by: ▪ Organic growth: +2.3% Free Cash ▪ Improving EBITDA Margin Revenues Flow ▪ FX impact: (0.1%) ▪ Lower Working Capital requirements ▪ Declining Capex ▪ H1 2014 EBIT
Slide 14: Net Sales Q2 2014 / H1 2014
NET SALES (in EUR 1,000) (6,8)% 47.754 (3,246) 44.508 44.515 (0,018) 0,025 Q2 2014 Actual Q2 13 Organic Decline Q2 14 Like-for-like Q2 14 FX impact Q2 14 Scope changes Q2 14 Actual Q2 14 2,3% 90.840 92.925 92.910 2,085 (0,040) 0,025 H1 2014 Actual H1 13 Organic Growth H1 14 Like-for-like H1 14 FX im
Slide 15: EBITDA H1 2014 / Q2 2014
EBITDA (in EUR 1,000) 11,2% 11,2% 8,8% 8,8% 8,8% 5.344 0.000 5.344 (1,426) 3.918 3.917 3.917 Q2 2014 (2) 1 0 Actual Q2 13 Non recurring Recurring Organic Like-for- FX impact Scope impact Recurring Non recurring Actual Q2 14 items Q2 13 Q2 13 Decline Q2 14 like Q2 14 Q2 14 Q2 14 EBITDA items Q2 14 Q2
Slide 16: Net Working Capital
NET WORKING CAPITAL 93,1% 70 100% 85,2% 85,6% 26,3 62,7 81,6% 90% 60 75,3% 71,0% 73,0% Trade payables 80% 62,4% 64,4% Other current 50 63,4% 70% liabilities Inventories 40.6 40.1 40.9 Accrued expenses 60% 40 35.8 37.2 36.3 and deferred income Current income 33.5 tax liabilities 50% 31.1 31.2 30 28.7
Slide 17: From EBITDA to Free Cash Flow
FROM EBITDA TO FREE CASH FLOW (in EUR 1,000) 8.921 (0,825) (3,126) (0,501) (3,403) (2,547) (1.481) Group reported Non cash Taxes paid Interest paid Change in NWC Net Capex 1) Free Cash Flow EBITDA items recorded above EBITDA Free Cash Flow in H1 2014: EUR -1.5 million versus EUR -3,7 million in H1 2
Slide 18: Net Debt
NET DEBT (in EUR 1,000) 8,667 (0,069) (0.154) 0.374 1.481 7.035 Net financial Free Cash Flow Acquisition of subsidiaries Impact of FX Others Net financial debt 31.12.2013 H1 2014 & non controlling interests rates on cash debt 30.06.2014 Borrowings' 38,205 Borrowings' 38,343 Cash (31,170) Cash (29,67
Slide 19: Actuals & Medium-Term Targets
ACTUALS & MEDIUM-TERM TARGETS Group Sales (EUR million) Organic Growth Rate (%) 12,4% 188.8 190.8 10,8% 7,5% 7,9% 170.5 ~5,0% 3,0% 1,9% (2,4%) (2,2%) (6,4%) (6,8%) 46.0 44.6 47.7 50.5 43.1 47.8 50.9 49.0 48.4 44.5 (12,6%) (16,5%) (18,6%) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Medium- FY Q1 Q2 Q3 Q4
Slide 20: Business, Financial Review & Analysis, Growth Strategy & Group Strengths
▪ Business ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 20 exceet Group | August 2014
Slide 21: Growth Strategy
GROWTH STRATEGY ▪ Exploit fragmented market structure ▪ Leverage customer ▪ Enhance value chain coverage relationships Market Existing Consolidation Customers ▪ Expansion of ▪ Extend customer base technological through new healthcare capabilities applications e.g. Ultra HDI ▪ e.g. medical implants T
Slide 22: Group Strengths
GROUP STRENGTHS Strong skills in development & manufacturing of miniaturized electronic components, modules & Miniaturization systems Specialist with many years of experience in development and manufacturing of complete medical Health devices and experienced Partner for FDA approvals & certification
Slide 23: is exciting
is exciting exceet Group | November 2013
Slide 24: Annex
Annex 24 exceet Group | August 2014
Slide 25: History of exceet
HISTORY OF EXCEET exceet’s history 2006 2008 2009 2010 2011 2012 2014 Add-on acquisitions Acquisition of Merger with Card Acquisition of Acquisition of Acquisition of Acquisition of of ECR AG and GS Mikrap AG and Factory Group1) Winter AG and AuthentiDate Inplastor Gmbh Valtronic Swiss PCB AG AEMtec
Slide 26: Top Customers
TOP CUSTOMERS Top 10 Customer = 46% of total Sales Selected References Customer Revenue in EUR million BERTELSMANN TRANS LINK BARCLAYCARD PHILIPS Health 22.4 CERN PHONAK Industry 13.4 COCHLEAR POSTBANK DELPHI RED BULL Health 11.8 DINERS CLUB RITTAL Health 10.2 DORNIER ROCHE DIAGNOSTICS DOUGLAS SANDO
Slide 27: Production & Engineering Sites
PRODUCTION & ENGINEERING SITES ECMS ESS IDMS Berlin, D Design, development, Düsseldorf, D industrialization and series Groningen, NL Software, Services (Cloud Services) and production for high-end complex Development & Production Consulting for Secure Business Processes electronic and electrooptical
Slide 28: Ownership – Class A Shares
OWNERSHIP – CLASS A SHARES Eiflia Holdings GmbH 0.7% Hans Hofstetter 1.1% exceet Group (treasury shares) 2.2% Roland Lienau 0.5% Management (MM Reutner, Wolny, Trommershausen) 5.7% Free Float 28.1% Class A Shares: Oranje-Nassau Participaties B.V. (Wendel) 27.8% 20,523,695 Greenock S.à r.l. (VM Capit
Slide 29: Ownership - Class B and C Shares
OWNERSHIP - CLASS B AND C SHARES Class B (Founding) Shares Class C (Earn-Out) Shares 5.21 million shares 9.0 million shares Oranje-Nassau Participaties B.V. (Wendel) 89.00% Greenock S.à r.l. (Vorndran Mannheims Capital) 87.30% Prof. Hermann Simon 5.50% Ulrich Reutner 6.05% Roland Lienau 5.50% Robert
Slide 30: Management Team
MANAGEMENT TEAM 2012 Ulrich Reutner Wolf-Günter Freese Robert Wolny Jan Trommershausen Chief Executive Officer Chief Financial Officer Chief Operating Officer IDMS Chief Operating Officer ECMS 30 exceet Group | August 2014
Slide 31: Consolidated Financials
CONSOLIDATED FINANCIALS January – June 2014 / January – June 2013 Income Statement (in EUR 1'000) Jan. - Jun. 2014 Jan. - Jun. 2013 Revenue 92'910 90'840 Cost of sales (76'115) (74'835) Gross profit 16'795 16'005 % margin 18.1% 17.6% Distribution costs (6'625) (7'023) Administrative expenses (6'994)
Slide 32: Consolidated Financials
CONSOLIDATED FINANCIALS 30 June 2014 / 31 December 2013 Assets (in EUR 1'000) 30 June 2014 31 December 2013 Tangible assets 34'775 35'425 Intangible assets 57'327 58'597 Deferred tax assets 1'053 836 Other non current assets 214 209 Inventories 34'503 31'335 Trade receivables, net 24'429 22'777 Othe
Slide 33: Consolidated Financials
CONSOLIDATED FINANCIALS January – June 2014 / January – June 2013 Cash Flow Statement (in EUR 1'000) Jan. - Jun. 2014 Jan. - Jun. 2013 Earnings before taxes 2'356 6'566 Depreciation, amortization & impairment charges 4'977 4'878 Interest income / (expenses), net 591 547 Change in fair value in finan
Slide 34: Consolidated Financials
CONSOLIDATED FINANCIALS January – June 2014 / January – June 2013 Segment Information ECMS IDMS ESS Corporate & Eliminations Group Others Consolidation Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. Jan. - Jun. (in EUR 1'000) 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 R
Slide 35: Disclaimer & Contact
DISCLAIMER & CONTACT This presentation contains forward-looking statements based on beliefs of exceet Group SE management. Such statements reflect current views of exceet Group SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially