R&s Group Holding Ag Pref Class A · SIX:RSGN
R&s Group Holding Ag Pref Class A — R&S Group — Merger or Acquisition (August 2024)
24 slides from R&s Group Holding Ag Pref Class A's merger presentation, Aug 20, 2024
Slide 1: Expanding Footprint & Capacity through Strategic Acquisition of Kyte Powertech
Expanding Footprint & Capacity through Strategic Acquisition of Kyte Powertech We guarantee energy 20 August 2024
Slide 2: Disclaimer
2 Disclaimer This presentation contains certain forward-looking statements. Such forward-looking statements reflect the current views of management and are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause actual results, performance or achievements of t
Slide 3: Today's hosts
3 Today’s hosts In Zurich, Switzerland Heinz Kundert Beatrix Natter Andreas Leutenegger Gregor Greber Doris Rudischhauser Chairman Board Member Board Member Board Member Head of IR R&S Group R&S Group R&S Group R&S Group R&S Group In Cavan, Ireland Rolf Lanz Markus Laesser Matthias Weibel Stephanie
Slide 4: Agenda for today
4 Agenda for today 1 Transaction overview and strategic rationale 2 Kyte Powertech: Leading manufacturer of distribution transformer solutions 3 Key financials, financing and guidance 4 Concluding remarks 5 Q&A
Slide 5: Transaction overview
5 1 Transaction overview • R&S Group (“R&S”) agrees to acquire 100% of Kyte Powertech (“Kyte”) from MML Capital Partners Ireland and the Kyte management team • Kyte is a leading manufacturer of distribution transformer solutions with LTM Jun-24 net sales of €174m and EBITDA of €34.5m (20% margin), O
Slide 6: R&S Group has delivered an exceptional performance since its listing
6 1 R&S Group has delivered an exceptional performance since its listing Strong 2024 momentum, Strong order backlog of Secular tailwinds for the with financial guidance CHF218m & book-to-bill of electricity distribution raised for the year to net 1.3x as of end of June 2024 sector driving multi- 15%
Slide 7: Strategic pillars – M&A has always been an instrumental part
7 1 Strategic pillars – M&A has always been an instrumental part Focus on what we have and accelerate. Create long-term value, based on leading positions with selected products and specific countries. Focus on what we do best and offer our engineering expertise, quality M&A potential and reliability
Slide 8: Strong rationale for the combination of R&S Group and Kyte
8 1 Strong rationale for the combination of R&S Group and Kyte The combination of R&S Group and Kyte will increase R&S Group’s profile as a public company, strengthen market leading positions, create a deeper management bench, and enhance product offerings and technical expertise for both companies
Slide 9: Kyte will bolster R&S Group's position as a European leader
1 Kyte will bolster R&S Group’s position as a European leader for 9 distribution and medium voltage transformers 65% Oil distribution transformers 30% Oil distribution transformers R&S Group key market positions1 30% Cast resin transformers 40% Small power transformers 30% Cast resin transformers 45
Slide 10: Strength with industrial customers
1 R&S Group and Kyte share a strategic positioning as local niche players, 10 with highly recognisable brands in their respective markets… R&S and Kyte share some structural advantages vs. …with highly recognisable quality brands in the low to mid- global players… voltage segment that have “the righ
Slide 11: Combined pan-European footprint opening further market opportunities
1 …and a combined pan-European footprint that will open up further 11 market opportunities with new and existing customers Complementary footprint covering key countries in …to be leveraged with a combined product portfolio Western / Central Europe… Region Opportunity Timing Kyte 4-6MVA distribution
Slide 12: Strong presence in UK, Ireland, Netherlands and Belgium
2 Strong presence in UK, Ireland, Netherlands and Belgium across utility 12 and industrial customers Net sales segmentation, LTM Mar-24 (%) By geography By customer type By customer Other Other customers Industrial 2% 1% 11% 17% 13% Customer 10 Customer 1 3% 27% 11% 4% Customer 9 6% €165m 47% €165m
Slide 13: Kyte's management team has deep expertise and high market competence
2 Kyte’s management team has deep expertise and high market 13 competence Experienced and committed management team reinvesting into the combined group Stephanie Leonard Noel Culbert Martin Reilly Chief Executive Officer Chief Financial Officer Chief Operating Officer 2009 2019 2022 2022 1999 2022 P
Slide 14: Kyte Powertech: Leader in distribution transformers
14 2 Kyte Powertech: Leader in distribution transformers Kyte highlights Key competitive advantages European markets Deeply entrenched leadership blue-chip customer base Approved supplier to all UK / Ireland DNOs #1 #1 25+ Years Top 3 Top 5 Bespoke designs and solutions in-house Relationship tenure
Slide 15: Strong traditional product portfolio of transformers
15 2 Strong traditional product portfolio of transformers… Deep product portfolio across the MVA spectrum Primary end LTM Mar-24 LTM Mar-24 Product MVA1 range market net sales split output3 Single phase 18%2 15–100kVA c.9.7k3 transformers Small / Medium 16% 15–315kVA c.2.7k transformers 30% 400kVA–1
Slide 16: Complemented by digital capabilities
16 2 …complemented by digital capabilities “DesDT” proprietary design software Highly accurate design software leveraging intelligent algorithms for design optimisation 45+ years of accumulated data Proprietary formulae algorithms Extensive library of 5,000+ active designs from prior customer
Slide 17: Kyte's customer relationships from customer proximity and responsiveness
2 Kyte’s strong customer relationships derive from a business model 17 centred on customer proximity and responsiveness Overview of Kyte’s operations and customers (% of LTM Mar-24 net sales) ✓ All offices and facilities are strategically positioned, ensuring proximity to key markets for swift lead
Slide 18: Kyte: a high-quality asset acquired at an attractive valuation
18 3 Kyte: a high-quality asset acquired at an attractive valuation Acquisition consideration (EURm) 267 264 Bridge Take-out • Bridge financing facility provided by UBS 250 17 14 Equity issuance – Take-out by a combination of bank debt, excess cash and equity issuance of ~CHF 23m2 Excess cash – R&S
Slide 19: R&S and Kyte have highly complementary financial profiles
19 3 R&S and Kyte have highly complementary financial profiles Order backlog (June 2024 LTM, CHFm)1 Adj. net sales (June 2024 LTM, CHFm)1,2 Growth Y-o-Y ~25% ~18% ~23% Adj. EBIT (June 2024 LTM, CHFm)1,2 Free Cash Flow (June 2024 LTM, CHFm)1,3 Margin Margin 20.8% 19.7% 20.3% 19.8% 14.9% 17.7% Sources
Slide 20: Update on 2024 and mid-term guidance
20 3 Update on 2024 and mid-term guidance 2024 outlook1 Mid-term outlook2 Commentary Confirmed Confirmed • Mid-term outlook organic growth over the cycle Net sales growth • Strong tailwind from global electrification demand, Above 12% Around 12% decarbonization, decentralization and aged grids Confi
Slide 21: Key takeaways
21 4 Key takeaways R&S Group and Kyte Powertech are excited to join forces looking ahead into a bright future, guaranteeing energy and transforming the world of energy every day 1 2 3 4 R&S Group has delivered a Part of the R&S Group success Kyte represents an The acquisition will further successful
Slide 22: Stronger together
22 4 Stronger together The acquisition of Kyte Powertech is a natural next step in the continued evolution of R&S Group Next update on combined group strategy and integration to follow at Capital Markets Day in Zurich on 31 October
Slide 23: Q&A
23 5 Q&A
Slide 24: Presentation name (Insert > Header and footer)
24 Presentation name (Insert > Header 20.08 and footer) .2024