50 slides from Rational Aktiengesellschaft's earnings presentation, November 2015
Slide 1: RATIONAL AG – IR-Presentation 9M 2015
RATIONAL AG – IR-Presentation 9M 2015 0
Slide 2: RATIONAL's basis for success
Basis for success Our success in numbers Prospects RATIONAL`s basis for success 1. Customer benefit 2. Concentration & specialisation 3. Employees/U.i.U.®-philosophy RATIONAL AG – IR-Presentation 9M 2015 1
Slide 3: 1. Customer benefit
Basis for success Our success in numbers Prospects 1. Customer benefit Our primary corporate objective: We offer the people working in commercial kitchens the most beneficial solution to their thermal cooking tasks. RATIONAL AG – IR-Presentation 9M 2015 2
Slide 4: By focussing on the right objective everything else comes up automatically
Basis for success Our success in numbers Prospects By focussing on the right objective everything else comes up automatically RATIONAL AG – IR-Presentation 9M 2015 3
Slide 5: RATIONAL is the company of chefs
Basis for success Our success in numbers Prospects RATIONAL is the company of chefs We have around 300 chefs working in different processes Application Application Application Sales consulting development research Before purchase we We advise our For our customers We analyse eating show our customer
Slide 6: 2. Concentration & specialisation
Basis for success Our success in numbers Prospects 2. Concentration & specialisation RATIONAL AG – IR-Presentation 9M 2015 5
Slide 7: Customers are professionals, serving more than 30 meals a day
Basis for success Our success in numbers Prospects Customers are professionals, serving more than 30 meals a day Caterer Fast-food, chains Independent caterers Supermarkets/ Party services Department stores Community catering Company restaurants Schools Universities Hospitals Restaurants
Slide 8: Our technology revolutionises the professional kitchens of the world
Basis for success Our success in numbers Prospects Our technology revolutionises the professional kitchens of the world for over four decades Heat transfer via steam, hot air and the combination of both Combi-Steamer CombiMaster ClimaPlus Combi SelfCooking SelfCookingCenter® Center® whitefficiency®/
Slide 9: The new SelfCookingCenter
Basis for success Our success in numbers Prospects The new SelfCookingCenter® The only cooking system which senses, recognises, thinks ahead, learns from the chef and communicates with him to achieve the exact result he desires. RATIONAL AG – IR-Presentation 9M 2015 8
Slide 10: The new SelfCookingCenter features
Basis for success Our success in numbers Prospects The new SelfCookingCenter® iCookingControl HiDensityControl® Cooks exactly according The patented basis for top to the specifications. quality. iLevelControl Efficient CareControl Variety at the same time, Economical sparkling hygiene at prepared st
Slide 11: iCookingControl
Basis for success Our success in numbers Prospects iCookingControl Reliably implements the chef‘s wishes Select the end result ready! It senses and recognises the size, load quantity and condition of the products The ideal cooking path is determinded interactively during the cooking process
Slide 12: HiDensityControl
Basis for success Our success in numbers Prospects HiDensityControl® The desired top quality – even for large quantities Heat is always distributed uniformly and powerfully with dynamic air mixing Precise steam temperatures and maximum steam saturation with efficient regulation Crispy crusts,
Slide 13: iLevelControl
Basis for success Our success in numbers Prospects iLevelControl Clever mixed loads Prepares different dishes at the same time Actively displays which products go together Pre-defined shopping carts for breakfast, mise en place, à la carte and grill applications Individually programmable sho
Slide 14: Efficient CareControl
Basis for success Our success in numbers Prospects Efficient CareControl Clean and economical Fully automatic cleaning and care system Recognises the cleaning status and proposes the optimum quantity of cleaning agent Removes even the most stubborn dirt thoroughly and economically and avoids t
Slide 15: The SelfCookingCenter replaces 40% - 50% of traditional cooking equipment
Basis for success Our success in numbers Prospects The SelfCookingCenter® Replaces 40% - 50% of all traditional cooking equipment Kitchen block with conventional appliances Boiling pans Tilting pans for 1,200 meals per day (105 m2 or 1,130 ft² floor space) With a SelfCookingCenter® 5 Senses the requ
Slide 16: A new world market has been created
Basis for success Our success in numbers Prospects A new world market has been created The VarioCooking Center® Replaces the remaining 50% of the traditional cooking appliances Same target group Similar cooking intelligence and multifunctionality Cooking perfection on the highest level Sim
Slide 17: The VarioCooking Center – the perfect complement
Basis for success Our success in numbers Prospects The VarioCooking Center® – the perfect complement Cooking with direct contact heat or in liquid VarioCooking Center VarioCooking Center® VarioCooking Center MULTIFICIENCY® MULTIFICIENCY® Table-top model 2005 2011 2014 RATIONAL AG – IR-Presentation 9
Slide 18: The VarioCooking Center MULTIFICIENCY
Basis for success Our success in numbers Prospects The VarioCooking Center MULTIFICIENCY® Boiling, frying and deep-frying … all in one single unit Cooking intelligence through VarioCooking Control® Clean and ready to use in a matter of seconds Up to 4 times faster as conventional cooking equip
Slide 19: … and the kitchen is complete!
Basis for success Our success in numbers Prospects RATIONAL + FRIMA … and the kitchen is complete! SelfCookingCenter® 5 Senses + VarioCooking Center MULTIFICIENCY® frying, boiling Grilling, steaming, vegetables, gratinating, baking, milk-dishes, fermenting, finishing® soups and sauces, pressure-cook
Slide 20: More profit for our customers, every day
Basis for success Our success in numbers Prospects More profit for our customers, every day Example: Restaurant with 200 meals per day 1 SelfCookingCenter® 5 Senses 101 1 VarioCooking Center MULTIFICIENCY® 112 Investment is about 25,000 € Profit Extra earnings per month Less raw material input
Slide 21: Services that are useful for our customers
Basis for success Our success in numbers Prospects Services that are useful for our customers Before purchase After purchase The RATIONAL CookingLive The RATIONAL-„Comprehensive full seminars service package“ Professional advice from chef to chef Maximum customer benefit also after the purchase:
Slide 22: At home in the world's professional kitchens
Basis for success Our success in numbers Prospects At home in the world’s professional kitchens …in the Buckingham Palace, in the Allianz Arena in Munich, in the Burj Al Arab in Dubai… RATIONAL AG – IR-Presentation 9M 2015 21
Slide 23: At home in the world's professional kitchens
Basis for success Our success in numbers Prospects At home in the world’s professional kitchens …in the four highest Restaurants in China,… Guangzhou Peking Shanghai Hong Kong RATIONAL AG – IR-Presentation 9M 2015 22
Slide 24: At home in the world's professional kitchens
Basis for success Our success in numbers Prospects At home in the world’s professional kitchens …in the „White House“ RATIONAL AG – IR-Presentation 9M 2015 23
Slide 25: 3. Employees / U.i.U.-philosophy
Basis for success Our success in numbers Prospects 3. Employees / U.i.U.®-philosophy RATIONAL AG – IR-Presentation 9M 2015 24
Slide 26: Employee quality is corporate quality
Basis for success Our success in numbers Prospects Employee quality is corporate quality 1,517 1,424 1,341 1,263 1,224 1,092 993 93 new jobs worldwide in the first 9 months of 2015 Round about 100 new jobs planned for 2015 in total Employees in Germany as at Sep 30 2015: 857 2009 2010 2011 2012 2013
Slide 27: Employee quality is corporate quality
Basis for success Our success in numbers Prospects 92% of allquality Employee employees are proud is corporate to work for RATIONAL quality The entrepreneur in the company (U.i.U.®) has holistic responsibilities makes all necessary decisions by oneself makes mistakes and learns from them is
Slide 28: Der Vorstand
Der Vorstand Markus Paschmann, CSO Erich Baumgärtner, CFO Dr Peter Stadelmann, CEO Peter Wiedemann, CTO Dr Axel Kaufmann, CFO (design.) Born in 1966 Born in 1954 Born in 1965 Born in 1959 Born in 1969 With RATIONAL since 2013 With RATIONAL since 1998 With RATIONAL since 2012 With RATIONAL since 1988
Slide 29: Specialised process organisation in all corporate divisions
Basis for success Our success in numbers Prospects Specialised process organisation in all corporate divisions RATIONAL AG – IR-Presentation 9M 2015 28
Slide 30: The integrated simultaneous innovation process
Basis for success Our success in numbers Prospects The integrated simultaneous innovation process 480 patents and patent applications Preparation Conversion Series Definition Concept Concept Pilot Prototyping for series of product production period period validation series production lines managemen
Slide 31: The production and logistics process
Basis for success Our success in numbers Prospects The production and logistics process Customer Quality- Assembly test Packaging Dispatch Customer order Assembly lines Built to customer order If required by the customer, lead time: only 1 day Only one interface from production to dispatch H
Slide 32: High-performance production through active Lean philosophy
Basis for success Our success in numbers Prospects High-performance production through active Lean philosophy Principle of customer orders Flow principle p Control of processes Principle of responsibility RATIONAL AG – IR-Presentation 9M 2015 31
Slide 33: Numerous awards confirm the high corporate quality
Basis for success Our success in numbers Prospects Numerous awards confirm the high corporate quality Corporate Excellence Award 2015 Chefs’ Choice Award 2015 Best Company in Germany Winner in the category (University Eichstätt-Ingolstadt and „Best Combi-Steamer“ Zurich, Swiss consulting company (Re
Slide 34: RATIONAL is the most innovative medium-sized enterprise in Germany
Basis for success Our success in numbers Prospects RATIONAL is the most innovative medium-sized enterprise in Germany * Exclusive study on behalf of the The management consultancy Munich Strategy Group (MSG) analysed data from 3.300 German companies, on the basis of: - Performance analyses (analysis
Slide 35: Our success in numbers
Basis for success Our success in numbers Prospects Our success in numbers RATIONAL AG – IR-Presentation 9M 2015 34
Slide 36: Worldwide market potential of more than 3 million kitchens
Basis for success Our success in numbers Prospects Worldwide market potential of more than 3 million kitchens 10% SelfCookingCenter 20% Combi-steamer technology 1% VarioCooking Center® 70% Traditional appliances 99% Traditional appliances for the for the SelfCookingCenter® VarioCooking Center 5 Sens
Slide 37: RATIONAL is, by far, the world market leader
Basis for success Our success in numbers Prospects RATIONAL is, by far, the world market leader RATIONAL 54% Competition 46% Main competitors: Convotherm (Manitowoc) MKN Lainox (Ali Group) Eloma (Ali Group) Electrolux Alto-Shaam Unox Others (around 100 companies worldwide) Market sha
Slide 38: Our customers are apostles
Basis for success Our success in numbers Prospects Our customers are “apostles“ High satisfaction [28%] Mercenaries Apostles [47%] 9% 83% 3% 5% Low/ [17%] [8%] Terrorists Hostages Low/ High loyality Source: Infratest, May 2013 [in brackets]: RATIONAL compared to the average of the manufacturing indu
Slide 39: High acceptance in all markets worldwide
Basis for success Our success in numbers Prospects High acceptance in all markets worldwide Europe 50% (9M 2014: 54%) Germany 13% (9M 2014: 13%) (excluding Germany) Americas 18% (9M 2014: 15%) Asia 13% (9M 2014: 12%) Rest of the world 6% (9M 2014: 6%) Sales revenues by region (status: 9M 2015) RATIO
Slide 40: RATIONAL grows organically
Basis for success Our success in numbers Prospects RATIONAL grows organically 500 Sales revenues in m EUR 450 400 350 300 250 200 150 100 50 0 RATIONAL AG – IR-Presentation 9M 2015 39
Slide 41: Sales revenues in the first 9 months 14% above previous year
Basis for success Our success in numbers Prospects Sales revenues in the first 9 months 14% above previous year In m EUR Fiscal year 9 months Growth compared to PY (in %) 404 497 353 329 461 435 392 350 +4% +7% +14% 314 9M 2013 9M 2014 9M 2015 9M 2015: Sales revenues +14% (FX-adjusted: +11%) -8% +11
Slide 42: EBIT – sustainable high margin
Basis for success Our success in numbers Prospects EBIT – sustainable high margin In m EUR Fiscal year 9 months EBIT margin in % Growth compared to PY (in %) 145 116 99 128 86 123 28% 29% 26% 106 102 -4% +15% +17% 90 9M 2013 9M 2014 9M 2015 30% 29% 29% 28% 28% 26% 9M 2015: EBIT margin at 29% (PY: 28
Slide 43: Stable cost and earnings structure
Basis for success Our success in numbers Prospects Stable cost and earnings structure 9M 9M FY 2015 2014 2014 Sales revenues 100% 100% 100% Cost of sales -38% -39% -39% Sales & service -25% -26% -25% Research & development -4% -4% -4% Administration & others -4% -3% -3% EBIT 29% 28% 29% RATIONAL AG
Slide 44: High operating cash flow
Basis for success Our success in numbers Prospects High operating cash flow In m EUR Growth compared to PY (in %) 111 112 103 Net income in 2014: 83 87 110 million euros Free Cashflow 2014: 68 96 million euros (PY: 91 million euros) Operating Cashflow in the first 9M 2015: 97 million euros (PY: 70 m
Slide 45: Balance sheet provides security and entrepreneurial flexibility
Basis for success Our success in numbers Prospects Balance sheet provides security and entrepreneurial flexibility 9M 9M FY 2015 2014 2014 Non-current assets 78 76 76 Inventory 30 30 30 Accounts receivables 85 81 83 Other assets 11 10 9 Liquid funds 233 186 225 Total assets 437 383 423 Equity 323 27
Slide 46: Targeted investments for growth and efficiency
Basis for success Our success in numbers Prospects Targeted investments for growth and efficiency Investments in m EUR Depreciation in m EUR 33 17 17 12 10 9 8 8 7 7 7 7 7 6 5 2 2008 2009 2010 2011 2012 2013 2014 2015e RATIONAL AG – IR-Presentation 9M 2015 45
Slide 47: Attractive dividend policy
Basis for success Our success in numbers Prospects Attractive dividend policy 9.68 Earnings per share (EUR) Dividend per share (EUR) 4.00 8.55 8.20 Special dividend per share (EUR) 7.02 6.93 5.92 6.80 6.00 5.70 5.50 5.00 70% pay-out ratio in fiscal year 2014 3.50 77 million euros total pay- out in A
Slide 48: Research coverage
Basis for success Our success in numbers Prospects Research coverage Average Fair Value = 347 euros Analysts' Ratings Buy; 2 Hold; 13 Status: November 4, 2015 RATIONAL AG – IR-Presentation 9M 2015 47
Slide 49: Best preconditions for ongoing sustainable future success
Basis for success Our success in numbers Prospects Best preconditions for ongoing sustainable future success Two superior products: 1. The RATIONAL SelfCookingCenter® 5 Senses 2. The FRIMA VarioCooking Center MULTIFICIENCY® Flexible production, low degree of vertical manufacturing Huge free ma
Slide 50: Investor relations contact, financial calendar
Investor relations contact, financial calendar Company information Financial calendar 2016 RATIONAL AG 22 Mar 2016 Financial Figures FY 2015 Iglinger Str. 62 Press conference (Munich) 86899 Landsberg am Lech DVFA Analyst conference (Frankfurt) Germany www.rational-online.com 04 May 2016 Annual Gener