Rational Aktiengesellschaft · XETR:RAA
Rational Aktiengesellschaft — Rational — Q1 2018 Earnings Presentation
54 slides from Rational Aktiengesellschaft's earnings presentation, May 2018
Slide 1: A different kind of inspiration. Investor Relations presentation – Q1 2018
A different kind of inspiration. Investor Relations presentation – Q1 2018
Slide 2: The basis of our success
The basis of our success In the past as well as in the future Concentration on Specialisation in professional kitchens “cooking” Maximum The entrepreneur customer benefit in the company 2
Slide 3: For people.
For people. That prepare hot food in professional kitchens. 3
Slide 4: Billion people live on earth
7.6 + 80 billion people live on earth million more each year 120,000,000 dishes are prepared using RATIONAL appliances every day 1,900 employees worldwide 93% very satisfied customers 4
Slide 5: For kitchens.
For kitchens. That prepare at least 20 warm meals per day. 5
Slide 6: Our customers worldwide
Our customers worldwide Establishments with over 20 meals per day Mass Catering Retail Corporate catering Supermarket Care home & hospital Bakery shop Event caterers Convenience Prisons Butchers Nursery & school catering ... Marine Military … Foodservice Hotel Restaurant Quick Service Casual Dining
Slide 7: Combi-steamers sold since 1976, VarioCookingCenters sold since 2005
850,000Combi-steamers sold since 1976 30,000 VarioCookingCenters® sold since 2005 7
Slide 8: Worldwide market potential of more than 3 million kitchens
Worldwide market potential of more than 3 million kitchens 10% SelfCookingCenter® 20% Combi-steamer 1% VarioCookingCenter® technology (other) 70% Traditional appliances 99% Traditional appliances Market potential Market potential SelfCookingCenter® and CombiMaster® Plus VarioCookingCenter® 8
Slide 9: For food.
For food. Whose quality is setting standards. 9
Slide 10: Multifunctionality and maximum productivity
Multifunctionality and maximum productivity Grill, roast, bake, steam - in one single appliance Steam 30 °C – 130 °C Convection 30 °C – 300 °C Steaming Grilling Overnight cooking Baking Combination 30 °C – 300 °C Poaching Braising Overnight cooking Pan frying 10
Slide 11: For customer benefit.
For customer benefit. That exceeds all expectations. 11
Slide 12: More customer benefit
Higher earnings Economies of scale Higher attractivity Higher More productivity customer Customer benefit benefit Positive Rising learning demand curve 02.05.2018 \ Unternehmenspräsentation 2018 12 Growth
Slide 13: RATIONAL – ideas change the world
RATIONAL – ideas change the world Yesterday, today, and in the future 1976: Combi-steamer 1986: CombiMaster 1997: ClimaPlusCombi 2004: SelfCookingCenter® 2011: SelfCookingCenter 2014: SelfCookingCenter 2016: SelfCookingCenter® and whiteffiency® 5 Senses® SelfCookingCenter® XS 13
Slide 14: The SelfCookingCenter
The SelfCookingCenter® The first really intelligent cooking device 14
Slide 15: The first and only cooking system with real intelligence
The first and only cooking system with real intelligence Four assistants for simplicity, food quality and efficiency HiDensityControl® Precision for top quality, also for large quantities of dishes iCookingControl® Simplicity and standardisation thanks to cooking intelligence iLevelControl Fast food
Slide 16: The new CombiMaster Plus
The new CombiMaster® Plus Launched in May 2017 › New: ready to use again quickly thanks to automatic cleaning › New: automatic descaling › New: triple-pane glass door › New: now also as XS format › The tailor-made solution for chefs who are looking for a classic combi-steamer and want to operate it
Slide 17: Our contribution to healthier nutrition
Our contribution to healthier nutrition More nutrients, fewer harmful substances More secondary plant More More More nutrients vitamins trace elements minerals Fewer harmful Fewer harmful Fewer hard-to-digest Less substances through the substances from water carbohydrates fat cooking process 17
Slide 18: The VarioCookingCenter
The VarioCookingCenter® The multifunctional cooking appliance with contact heat Up to 4 times faster and with up to 40% less power consumption. 18
Slide 19: The VarioCookingCenter: Powerful equipment for the best results
The VarioCooking Center® Powerful equipment for the best results VarioCooking Control® No monitoring required thanks to the built in cooking intelligence AutoLift® Precise cooking with the automatic raising and lowering mechanism VarioBoost® Patented heating system offers maximum performance and sho
Slide 20: An unbeatable team
An unbeatable team 90 % of all cooking processes in professional kitchens or 20
Slide 21: All-in-2: SelfCookingCenter & VarioCookingCenter
All-in-2: SelfCookingCenter ® & VarioCooking Center® The most efficient kitchen in the world › Up to 50% space savings Conventional technology Saved space Saved space All-in-2 › Kitchens with around › 1,000 meals a day 21
Slide 22: That pays off
That pays off Restaurant with 200 meals per day Equipment Investment 1 SelfCookingCenter® 101 appr. 25,000 euros 1 VarioCookingCenter® 112 Profit* Extra earnings per month Raw matrerial input (20 % savings) 1,536 € Fat (up to 95 % savings) 164 € Energy consumption (up to 50 % savings) 578 € Savings
Slide 23: ConnectedCooking.
ConnectedCooking. The connected kitchen made by RATIONAL. 23
Slide 24: Convenience. Security. Inspiration.
Convenience. Security. Inspiration. Everything under control at all times. Push notification HACCP Updates Transfer cooking Remote programs access 24
Slide 25: We are the company of chefs for chefs
We are the company of chefs for chefs More than 1,000 chefs work for our customers daily Application research Application development Sales Application consultancy 25
Slide 26: Worldwide presence
Worldwide presence Close to the customer Local presence in more than 100 countries More than 5,000 partners worldwide 26
Slide 27: RATIONAL ServicePlus
RATIONAL ServicePlus The all-inclusive service package 27
Slide 28: 93% of our customers confirm maximum customer benefits
93% of our customers confirm that we offer maximum customer benefits* * Independent TNS Infratest 2016 study 28
Slide 29: Awards
Awards What others think about us Snacking d‘Or 2016 Chef‘s Choice Award 2016 Innovation challenge „Gold winner“ 2017 Intergastra Best of Market 2017 Küche Award 2017 Show Star 2017 Innovationspreis 2018 29
Slide 30: Kurt Rass, BMW Group testimonial
"I decide on the desired result, RATIONAL does the rest, and I can rely absolutely 100% on the quality." Kurt Rass , Kitchen Manager BMW Group Munich, Germany 30
Slide 31: Quanjude Group testimonial
"Without RATIONAL, we would not be able to prepare 20,000 Peking ducks every day with such high quality." Yan Dajian, Head of R&D, Quanjude Group, P.R. China 31
Slide 32: Nando's International testimonial
"They know what they do and understand what we need. We believe that RATIONAL is simply the perfect partner." Nando’s International, restaurant chain Partner for more than 25 years 32
Slide 33: With responsibility.
With responsibility. For people and the nature. 33
Slide 34: Our Employees
Our Employees Genuine customer benefits – in Landsberg and worldwide. 34
Slide 35: The Entrepreneur in the Company (U.i.U.)
The Entrepreneur in the Company (U.i.U.®) Highly passionate and enthusiastic employee … › … accomplishes more and takes responsibility › … makes decisions › … is on eye-level with everyone - without hierarchical borders › … always focuses on customer benefit 89% of all employees are proud to work fo
Slide 36: Training at RATIONAL
Training at RATIONAL More than 120 apprentices and students › Dual study program › Apprenticeship › Bachelor and master thesis › Doctorial thesis 36
Slide 37: Where sustainability is practiced: whitefficiency
Where sustainability is practiced whitefficiency® › Minimal use of time, energy, water, space and raw materials › Certified according to ISO 9001, 14001 and 50001 (quality, environment and energy) and “Lean & Green”-certified 37 › Resource-saving operational logistics
Slide 38: Good results
Good results Facts and figures 38
Slide 39: RATIONAL grows organically
RATIONAL grows organically Q1 2018: Sales growth burdened by F/X effects 702 613 564 497 461 435 166 174 +15% +11% +6% +8% +14% +9% +15% +22% +5% 2012 2013 2014 2015 2016 2017 Q1 2017 Q1 2018 Sales revenue in m EUR Sales revenue growth in % 39
Slide 40: RATIONAL is, by far, the world market leader
RATIONAL is, by far, the world market leader Concentration is the basis for our market position Major competitors RATIONAL (about100 worldwide): › Welbilt › Middleby › MKN Market share › Lainox › Eloma (Ali Group) › Electrolux › Alto-Shaam Competition › Unox 40
Slide 41: Worldwide success
Worldwide success Q1 2018: Above-average growth in Germany and Asia Q1 2018 share of Q1 2018 sales +14 sales revenues: revenue growth: % Europe (excl. Germany) 48% +4% Germany 12% +13% North America 17% 0% Sales revenues by region Latin America 5% -8% Asia 13% +12% Rest of the world 5% +8% 41
Slide 42: Positive performance in both product segments
Positiv performance in both product segments VarioCookingCenter® with exceptional growth Sales revenues combi-steamers Sales revenues VarioCookingCenter® +4% 154 160 +14% 13 12 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Sales revenues in m EUR Sales revenues growth in % 42
Slide 43: Sustained high EBIT margin level
Sustained high EBIT margin level Q1 2018: F/X effects burden EBIT 188 167 160 145 123 128 28% 28% 29% 28% 27% 27% 27% 24% 0% 44 41 +13% +20% +5% +13% +10% +4% +13% +37% -7% 2012 2013 2014 2015 2016 2017 Q1 2017 Q1 2018 EBIT (m EUR) EBIT margin in % Growth compared to previous year in % 43
Slide 44: High operating cashflow
High operating cashflow Business model with low capital intensity and a lean supply chain 143 146 129 111 112 103 +65% -8% +9% +27% -9% +13% 2012 2013 2014 2015 2016 2017 Operating cash flow in m EUR Growth compared to previous year in % 44
Slide 45: Solid balance sheet provides security and flexibility
Solid balance sheet provides security and flexibility High equity ratio and liquidity Q1 2018 Q1 2017 Non-current assets 143 107 Inventories 48 39 Trade receivables 114 101 Other assets 88 193 Liquid funds 179 111 Total assets 572 551 Equity 455 431 Non-current liabilities 28 34 Current provisions 3
Slide 46: Targeted investments for growth and efficiency
Targeted investments for growth and efficiency Investment in employees, infrastructure and products 50 43 25 19 17 15 12 12 9 10 7 8 2013 2014 2015 2016 2017 2018e Capital investments Depreciation/amortisation in m EUR 46
Slide 47: Attractive dividend policy
Attractive dividend policy More than 70% payout ratio on average 12.58 Fiscal year 2017 11.18 10.71 › 8.80 euros dividend per share 9.68 2.20 8.20 8.55 2.00 › 2.20 euros special dividend 8.80 › 11.00 euros total payout 8.00 7.50 6.80 › 87% payout ratio 5.70 6.00 In the long term › Sustainable and fl
Slide 48: Investment recommendations
Investment recommendations RATIONAL – the quality stock in the SDAX Average fair value: 558 euros Sell 1 Buy 4 Hold 7 As of April 2018 48
Slide 49: Share price development since the IPO
Share price development since the IPO Approx. 6 billion euros market capitalisation 49
Slide 50: What may we expect in the future?
What may we expect in the future? 50
Slide 51: Investment story: Positive megatrends for RATIONAL
Investment story Positive megatrends for RATIONAL › Worldwide growth of population › Increase in life expectancy › Increasing purchasing power in developing countries › Increasing share of single households › Healthier nutrition and a wider range of dishes › Varied catering locations (e.g. supermark
Slide 52: Investment story: Our strengths profile
Investment story Our strengths profile › Two technologically leading products, leading in connectivity › By far the world market leader, huge free market potential › High brand awareness in professional kitchens › High customer satisfaction and loyalty › Global footprint of sales and service network
Slide 53: Investor Relations contact, Financial calendar
Investor Relations contact Financial calendar Company information Financal calendar 2018 RATIONAL AG 09.05.2018 Annual shareholder meeting 2018 Iglinger Str. 62 09.08.2018 Financial figures HY 2018 86899 Landsberg am Lech 12.09.2018 RATIONAL analysts day 2018 Germany 30.10.2018 Financial figures 9M
Slide 54: RATIONAL
RATIONAL