Slide 1: First Quarter Results 2016
NORMA Group SE First Quarter Results 2016 Maintal, 4 May 2016
Slide 2: Q1 2016 highlights
Sales Growth of 2.3% leads to sales of EUR 226.6 million (Q1 2015: EUR 221.5 million) Adjusted EBITA Adjusted EBITA of EUR 40.1 million resp. +2.2% y-o-y (Q1 2015: EUR 39.2 million) Margin Sustainable adjusted EBITA margin of 17.7% (Q1 2015: 17.7%) Balance Equity ratio further improved to 37.5% (31
Slide 3: Sales Development in EUR million
Sales Development in EUR million Sales 2015 2016 Change Change in % thereof thereof organic currency Q1 221.5 226.6 5.1 2.3% 2.4% -0.1% Organic growth of 2.4% as expected Easter break in first quarter of 2016 versus second quarter in 2015 shifts some working days and sales into Q2 2016 Overall
Slide 4: Sales breakdown by region and way-to-market
Weakness in US truck and heavy industry market with a simultaneous excellent growth in EJT Europe lead to an Americas/EMEA sales shift of 2 percentage points Q1 2016 (Q1 2015) sales breakdown by region Q1 2016 (Q1 2015) sales breakdown by way-to-market 8%* (8%) 38% 50% (37%) 42% (48%) 62% (44%) (6
Slide 5: Adjusted EBITA and margin development
FY 2010: FY 2011: FY 2012: FY 2013: FY 2014: FY 2015: Q1 2016: 17.4% 17.7% 17.4% 17.7% 17.5% 17.6% 17.7% EUR million 21.1% 21.0% 21.3% 20.5% 20.5% 20.4% 20.4% 20.6% 20.8% 20.6% 19.9% 19.7% 19.7% 20.2% 20.1% 20.4% 20.4% 20.0% 19.6% 19.2% 19.6% 50 19.1% 18.9% 19.0% 19.2% 18.9% 20% 18.2% 18.3% 18.3% 18
Slide 6: Material cost ratio improved by 130 basis points
Material cost ratio improved by 130 basis points Improved material costs compensate higher personnel expenses Personnel expense ratio increased mainly due to weaker truck and heavy industry sales in the US Material Costs (in EUR million and % of sales) Personnel Expenses (in EUR million and %
Slide 7: Ongoing PPA leads to EUR 0.10 adjustments on EPS level
Ongoing PPA leads to EUR 0.10 adjustments on EPS level in EUR million Reported Adjustments Adjusted Sales 226.6 0 226.6 EBITDA 45.4 0 45.4 EBITDA margin 20.0% 20.0% 0.5 EBITA 39.6 (Depreciation PPA) 40.1 EBITA margin 17.5% 17.7% 4.7 EBIT 33.3 (incl. EUR 4.2 million amortisation PPA) 38.0 EBIT marg
Slide 8: Reported and adjusted EPS
Adjusted EPS* Reported EPS* EUR EUR 0,80 0,80 0,60 0,60 0,40 0,40 0.72 0.71 0.56 0.61 0,20 0,20 0,00 0,00 Q1/2015 Q1/2016 Q1/2015 Q1/2016 Net income in EUR million 22.9 22.6 17.9 19.4 * Based on number of shares of 31,862,400 Page 8
Slide 9: Net debt at EUR 343 million
Net debt* at EUR 343 million, decreased by EUR 15 million or 4.0% Equity ratio up by 70 basis points to 37.5% Leverage further improved to 1.9x (Net debt* / adjusted LTM EBITDA) Net Debt (in EUR million) Equity Ratio 600 31 Dec 2015 31 Mar 2016 xxx 358* 343* xxx Equity Ratio (equity / 400 36.8
Slide 10: Operating net cash flow
Operating net cash flow in EUR million Q1 2015 Q1 2016 Variance EBITDA 44.5* 45.4 +2.0% Δ ± Working capital -22.4 -24.1 -8.0% Operating net cash flow before investments 22.1 21.3 -3.9% from operating business Δ ± Investments from operating business -10.5 -9.5 +9.5% Operating net cash flow 11.6 11.8
Slide 11: Guidance 2016
Sales Solid organic growth of around 2% to 5% Adjusted EBITA Sustainable margin level as in previous years of more than 17.0% margin Dividend Approx. 30% to 35% of group adjusted net profit Page 11
Slide 12: Appendix: Strategy
Appendix Strategy Page 12
Slide 13: NORMA Group products and customer requirements
NORMA Group products Specific customer requirements driven by megatrends NORMACLAMP® 37% of sales Continuous new developments on a global level in order to Emission fulfill fleet consumption regulations and cope with increased reduction awareness in public perception Weight Ongoing trend in many ind
Slide 14: Tightening emission regulations globally
Today Europe EURO 3 EURO 4 EURO 5 EURO 6 NAFTA EPA '00 EPA '04 EPA '07 EPA '10 EPA '15 Japan JPN '98 JPN '02 JPN '05 JPN '09 JPN '14 J. '19 Brazil EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 EURO 6 Russia EURO 1 EURO 2 EURO 3 EURO 4 EURO 5 India EURO 1 EURO 2 EURO 3 EURO 4 EURO 4+ China EURO 1 EURO 2 EURO 3
Slide 15: EU legislation required CO2 fleet average limits
EU legislation required CO2 fleet average limits 2007 2015 2020 2021 158.7 g/km 130 g/km 95 g/km ~ 6.8 l/100km* ~ 5.6 l/100km* ~ 4.1 l/100km* [95%] [100%] Reduction from Reduction of 27% during 6 years 2007 to 2015 (5.1% p.a.) only 18% in 8 triggers high efforts in emission reduction across years (2
Slide 16: Global Comparison of Fuel Economy
Global Comparison of Fuel Economy Region Target Target Duration Fleet Fleet Change CAGR year year in years Goal year 1 Goal year 2 1 2 under under converted** converted** national laws national laws EU 2015 2021 6 130 g/km 130 g/km 95 g/km 95 g/km -27% -5.1% USA 2016 2025 9 37.8 mpg 139 g/km 56.2 mp
Slide 17: Company history and acquisitions
Integration 2015 National Diversified Sales, USA Foundation Acquisition Acquisition National 2014 NORMA China II Five Star, USA Diversified Sales, USA Acquisition Acquisition Variant, 2011 Acquisition Guyco, Foundation MDAX listing 2013 Davydick & Co, Australia Poland Australia NORMA Brazil Acquisit
Slide 18: Sales consolidation effects of acquisitions
Date of Total Sales consolidation effects in EUR million acquisition Sales Connectors Verbindungstechnik AG, Switzerland 04/12 Market entry in connecting technology in Pharma & Biotech 16.6 Nordic Metalblok S.r.l., Italy 07/12 Market consolidation heating and air conditioning clamps 5.2 Chien Jin Pl
Slide 19: Broad diversification in application areas and products (NDS)
Broad diversification in terms of application areas and products Stormwater Management Efficient Landscape Irrigation Flow Management ~ 50 % ~ 30 % ~ 20 % Large target markets for all NDS application areas nationwide and international International expansion with mid-term focus Page 19
Slide 20: Highly differentiated distribution and service model
Highly differentiated distribution and service model More than 5,000 products Over 7,700 customer locations (retail and wholesale customers) Two production sites (CA), six warehouses in the US, more than 500 employees Overnight shipment for wholesale orders 98% on-time delivery Over 7,700
Slide 21: Sales split by way-to-market and end market
thereof water management** thereof industrial supplier 19% (18%) 26% (25%) DS 39% (42%) EJT 61% (58%) 20% 8% thereof general distribution thereof (24%) (8%) products commercial vehicle OEM 27% (25%) thereof passenger vehicle OEM * FY 2015 (2014 in brackets) Page 21 ** NDS, Malaysia & Australia
Slide 22: Historic revenue development 1997 to 2015
Historic revenue development in EUR million 890 695 636 605 581 490 458 385 330 277 229 242 182 198 207 150 174 121 138 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 HGB IFRS 1997 to 2015: 19 years of a successful growth story Page 22
Slide 23: Clear global market leader in Clamp / Connect
Clear global market leader in Clamp / Connect Excellent growth outlook across EJT market Sales in EUR million (year) Additional growth for 1000 Joining Technology market 890 above market growth 800 ca. Fluid Passenger vehicles add. 2- 4% 40% 600 Commercial vehicles add. 2- 4% ca. 60% Clamp (ca. 37%)
Slide 24: Mission-criticality: small relative cost, high impact
Mission-criticality: Small relative cost – high impact Ability to achieve premium pricing Approx. value of Basis for premium pricing: Example: joining technology Harvester content Market leadership Cooling water c. € 21-26 Technology Quality Charged air c. € 20-25 Innovation Fuel and oil s
Slide 25: Key end markets
Examples of NORMA Group’s key end markets Construction / infrastructure / Engines Commercial vehicles Passenger vehicles Construction equipment water management Wholesalers & Technical Agricultural equipment Shipbuilding White goods Pharma & Biotech distributors More than 35,000 products, manufact
Slide 26: Unique business model with two ways-to-market
Unique business model with two distinct ways-to-market Significant economies of scale in production Resident engineers with close contact to international EJT customers No. 1 national and international DS service level and DS product portfolio Engineered Joining Technology (EJT) Distribution S
Slide 27: A world without NORMA Group
A world without NORMA Group Customer impact Reputation loss Image loss Warranty costs Non-compliance with legal requirements/regulations Loss of end-customers Page 27
Slide 28: Global footprint: 22 production sites
EMEA Czech Republic (P) France (P, D) Germany (P, D) Italy (D) Netherlands (D) Poland (P, D) Russia (P, D) Serbia (P) Spain (D) Sweden (P, D) Switzerland (D) Turkey (D) United Kingdom (P, D) Americas Brazil (P, D) Mexico (P) USA (P, D) Asia-Pacific Australia (D) China (P, D) India (P, D) Indonesia (
Slide 29: Investment highlights
1 Market leader in attractive engineering niche markets with strong growth prospects 2 Enhanced stability through broad diversification across products, end markets and regions Engineered products with premium pricing through technology and innovation leadership 3 in mission-critical components 4 St
Slide 30: Strategic achievements by region
Introduction of new products supports customers in meeting fleet fuel consumption requirements EMEA per OEM until 2020/21 Americas Successful integration of National Diversified Sales Inc. into North America region Start of cross selling of Distribution Service parts into sales channels of National
Slide 31: Continue international expansion
1 Continue international expansion 2 Continue to explore business opportunities in APAC to expand regional business and further improve profitability 3 Further ramp up of second China plant to enable further expansion into domestic and APAC markets 4 Expanding water business in the US as well as exp
Slide 32: Appendix: Full Year Results 2015
Appendix Full Year Results 2015 Page 32
Slide 33: FY 2015 highlights: sales, EBITA, EPS
Sales Record sales of EUR 889.6 million (2014: EUR 694.7 million) leads to growth of 28.0% Adjusted EBITA Record adjusted EBITA of EUR 156.3 million (2014: EUR 121.5 million) Margin Adjusted EBITA margin at 17.6% (2014: 17.5%); 6th year of sustainable margin higher than 17.0% Tax rate Improved tax r
Slide 34: FY 2015 balance sheet, dividend and guidance
Strong balance sheet with an increased equity ratio by 270 basis points to 36.8% (2014: 34.1%) Equity despite dividend payment Net debt including derivative financial liabilities decreased to EUR 360.9 million (2014: EUR 373.1 Net Debt million), net debt excluding derivatives of EUR 357.5 million (2
Slide 35: Regional sales EMEA, Americas, Asia-Pacific
EMEA: Solid growth in EJT includes favourable automotive business while DS sales were slightly negative in challenging economies – this leads in total to a growth of +5.5% Americas: Growth of 66.3% strongly supported by NDS acquisition and favourable currency Asia-Pacific: Strongly increased d
Slide 36: Sales development by quarter 2015
Organic growth accelerated during the year as expected due to lower previous year comparables and inclusion of NDS starting in November NDS contributed 16.6% of growth in 2015 Weakening of the Euro against most major currencies leads to sales increase of 7.7% Sales Development in EUR million S
Slide 37: Adjusted cost ratios and EBITA 2015
Higher plastic material content at NDS in combination with improvements from the Global Excellence programme leads to better material cost ratio Shift in cost ratios from decreased personnel costs to increased OPEX costs mainly due to favourable personnel costs at NDS and outsourced logistics at
Slide 38: Operational adjustments to EBITA
Operational adjustments after major NDS acquisition for 2014 and ending in 2015 Only EUR 3.6 million integration costs for NDS in 2015 No further operational adjustments planned in 2016 (except for ongoing PPA adjustments) in EUR million 2010 2011 2012 2013 2014 2015 Reported EBITA 64.9 84.7 1
Slide 39: Adjustments due to NDS acquisition
Operational adjustments due to acquisition of National Diversified Sales, Inc. EUR 0.47 adjustments on EPS level in EUR million Reported Adjustments Adjusted Sales 889.6 0 889.6 3.6 EBITDA 173.9 (incl. EUR 1.1 million integration costs & EUR 2.5 million Inventory-Step-Ups) 177.5 EBITDA margin 19
Slide 40: PPA adjustments FY 2015 to 2017
in EUR million FY 2015 FY 2016* FY 2017* EBITDA level 3.6 0 0 EBITA level 5.8 ca. 2 ca. 2 (incl. EUR 2.2 mio. depreciation PPA) (depreciation PPA) (depreciation PPA) EBIT level 23.1 ca. 19 ca. 19 (incl. EUR 17.3 mio. amortization PPA) (incl. ca. EUR 17 mio. amortization PPA) (incl. ca. EUR 17 mio. a
Slide 41: Dividend proposal EUR 0.90 per share
Dividend proposal to the shareholders at the AGM on 2 June 2016: EUR 0.90 per share (2015: EUR 0.75) Pay-out of EUR 28.7 million for 31,862,400 shares (32.3% of adjusted net income of EUR 88.7 million) General policy: dividend of 30% to 35% of adjusted net income Adjusted EPS Reported EPS Divi
Slide 42: Adjusted and reported income statement
in EUR million adjusted reported 2014 2015 2014 2015 Sales 694.7 889.6 694.7 889.6 Gross Profit 405.6 533.1 403.4 530.6 EBITDA 138.4 177.5 131.5 173.9 in % 19.9 20.0 18.9 19.5 EBITA 121.5 156.3 113.3 150.5 in % 17.5 17.6 16.3 16.9 EBIT 116.2 147.9 97.8 124.8 in % 16.7 16.6 14.1 14.0 Financial Result
Slide 43: Trade working capital ratio improved to 17.1%
Trade Working Capital Ratio further improved to 17.1% of sales Increased ratio in 2014 due to structurally higher inventory levels at NDS more than offset in 2015 Inventories and trade receivables improved, trade payables showed stable ratio EUR million 18.5% 20% 300 18.1% 18.3% 18.1%* 17.4% 1
Slide 44: Equity ratio on a solid level
Equity ratio on a solid level due to high profit despite increased dividend payment EUR million 500 12* 36.8% -24 400 34.1% 74 300 200 430 368 100 0 Equity 2014 Profit Dividend Others* Equity 2015 Balance 1,078 1,168 Sheet Total * mainly exchange differences on translation of foreign operations an
Slide 45: Net debt
Net Debt (in EUR million) excl. derivatives* incl. derivatives 353 358 373 361 500 500 20 3 400 400 300 300 437 458 Derivatives 458 200 200 437 Debt 100 Cash 100 0 0 -84 -100 -84 -100 -100 -100 31 Dec 14 31 Dec 15 31 Dec 14 31 Dec 15 Leverage 31 Dec 2014 31 Dec 2015 Gearing 31 Dec 2014 31 Dec 2015 (
Slide 46: Maturity profile
Maturity Profile (in EUR million) – Financial Instruments Promissory Note 2 Promissory Note 1 52 Bank Borrowings 110 52 81 34 45 35 5 5 5 5* 21 2016 2017 2018 2019 2020 2021 2022 2023 2024 Maturity Profile (in EUR million) – Currencies USD EUR 65 87 4 68 23 53 16 45 1 4 28 19 21 16 2016 2017 2018 20
Slide 47: Balance sheet
in EUR million 31 Dec 2014 31 Dec 2015 in EUR million 31 Dec 2014 31 Dec 2015 Assets Equity and liabilities Non-current assets Equity Goodwill / Other intangible assets / Total equity 368.0 429.8 741.5 784.8 Property, plant & equipment Non-current and current Other non-financial assets / liabilities
Slide 48: Operating net cash flow
Operating net cash flow in EUR million 2011 2012 2013 2014 2015 Variance Adjusted EBITDA 117.0 120.8 129.3 138.4 177.5 +28.2% Δ ± Working capital -19.5 -9.8 +5.1 +10.4 -0.6 -106.3% Operating net cash flow before 97.5 111.0 134.4 148.8 176.9 +18.9% investments from operating business Δ ± Investments
Slide 49: Revenue, gross profit, personnel expenses, adjusted EBITA
Revenue (in EUR million) Gross profit (in EUR million) 1000 600 54.9% 55.3% 56.0% 55.5% 57.0% 58.4% 58.4% 59.9% 60% of sales 890 533 750 400 40% 695 406 500 605 636 371 581 323 344 458 490 275 200 251 20% 250 330 182 0 0 0% 2008 2009 2010 2011 2012 2013 2014 2015 2008 2009 2010 2011 2012 2013 2014 2
Slide 50: Trade working capital and capex
Adjusted Operating Net Cash Flow (in EUR million) Trade working capital (in EUR million) 400 18.5% 18.3% 18.1% 18.3% 18.5% 17.4% 18.1%* 17.1% 20% of sales 150 300 200 108 123 79 90 10% 125 100 49 46 70 81 80 115 130 54 45 65 67 74 0 -19 -30 -46 -41 -38 -59 -81 -101 100 -100 0% 2008 2009 2010 2011 20
Slide 51: Identified institutional shareholders
100% Identified institutional Shareholders* 75% 25% 50% 23% 7% 25% 19% 12% 14% 0% pre IPO post IPO Dec. 2012 Today Dec. 2011 Germany United Kingdom USA 3i MABA CYPRUS Ltd. old & existing management free float Nordic France Rest of World Free float per 3 May 2016 includes Ameriprise, USA 9.96% Allian
Slide 52: Financial calendar and contact
Event Date Annual General Meeting in Frankfurt / Main 2 June 2016 Publication Interim Results Q2 2016 3 August 2016 Publication Interim Results Q3 2016 2 November 2016 Contact: Andreas Troesch Vice President Investor Relations Phone: +49 6181 6102-741 Fax: +49 6181 6102-7641 Email: Andreas.Troesch@n
Slide 53: Disclaimer
This presentation contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “should” or