Interpump Group S.p.a. · MIL:IP
Interpump — Q1 2020 Earnings Presentation
32 slides from Interpump's earnings presentation, May 13, 2020
Slide 1: First Quarter 2020 Consolidated Results
O120 First Quarter 2020 Consolidated Results Interpump Group S.p.A.
Slide 2: Table of Contents
Table of Contents Welcome! Our Q1 2020 & FY 2019 Results start on page 2 New to the company and could use an Introduction? See page 7 Our yearly update on Markets and Diversification is on page 15 More information on Growth Strategy and Recent M&A on page 20 You will find Shareholder Information on
Slide 3: Q1 2020 Consolidated Results
FINANCIALS Q1 2020 Consolidated Results € mn Q1 19 Q120 FY 2018 y/y Organic growth in sales -11.2% FX contribution +0.3% Increase in perimeter +11.0% TOTAL REPORTED SALES 343.6 344.0 +0.1% EBITDA 78.6 74.3 -5.5% EBITDA / SALES 22.9% 21.6% NET INCOME (as reported) 45.3 33.3 -26.4% Tax rate 27.9% 28.0
Slide 4: Quarterly Results by Sector
FINANCIALS Quarterly Results by Sector € mn WATER-JETTING Q120 Q4 18 y/y Organic growth in sales -2.6% FX contribution +0.8% Increase in perimeter +0.3% TOTAL REPORTED SALES 109.0 -1.5% EBITDA 28.3 -1.5% EBITDA / SALES 25.8% HYDRAULICS Q120 Q4 18 y/y Organic growth in sales -15.3% FX contribution +0
Slide 5: FY 2019 Consolidated Results
FINANCIALS FY 2019 Consolidated Results € mn FY 18 FY19 FY 2018 y/y Organic growth in sales +1.4% FX contribution +1.4% Increase in perimeter +4.2% TOTAL REPORTED SALES 1,279.2 1,368.6 +7.0% EBITDA 288.5 317.9 n.s. net of IFRS16 effect, for comparison only 302.4 +4.8% EBITDA / SALES 22.6% 23.2% net
Slide 6: Sales & EBITDA Trend
FINANCIALS Sales & EBITDA Trend € mn 318 1.369 IFRS16 289 1.279 249 1.087 923 199 895 180 672 136 557 527 472 105 105 95 389 400 87 322 74 48 08 09 10 11 12 13 14 15 16 17 18 19 08 09 10 11 12 13 14 15 16 17 18 19 First 12 months’ turnover Rest of business of acquired companies net of Electric Motor
Slide 7: Financial Ratios
FINANCIALS Financial Ratios Prudent debt policy and satisfactory return on capital employed Net Debt / EBITDA (12 M) Return On Capital Employed (12M) Net of treasury stock (at book value) and including commitments for purchase of investments FY Operating profit average of (consolidated shareholder's
Slide 8: Interpump Group
Interpump Group an Italy-based, international industrial manufacturing group Two business sectors: WATER-JETTING and HYDRAULICS World leader in high-pressure Wide range of components for plunger piston pumps mobile and non-mobile (historical core business) hydraulics: PTOs, cylinders, gear Also
Slide 9: Interpump's distinctive features
Interpump’s distinctive features • Vertically-integrated manufacturing • Use of general-purpose programmable machine tools; No rigid production lines • Standard metal-working processes facilitate outsourcing if needed FLEXIBILITY • Exposure to multiple cycles reduces Product mix and sales strategies
Slide 10: Water-Jetting Business sector overview
WATER JETTING Business sector overview 34% of Group sales and 41% of EBITDA in 2019 HIGH PRESSURE PUMPS, FLOW HANDLING COMPONENTS DEVICES AND SYSTEMS FOR FOOD, COSMETICS & PHARMA Piston pumps from 1 to 2,000 hP (0.7 to 1,500 KW) DESCRIPTION used in high-pressure applications, up to 6,000 bar (87,000
Slide 11: High-pressure application examples
WATER JETTING High-pressure application examples FOOD, COSMETICS, PHARMACEUTICAL AUTOMOTIVE in addition to flow handling components Deburring of common-rail engine heads High-pressure homogenizers Cutting of bodywork and other materials * Water-jet food cutting, slicing, meat separation Cleanup of w
Slide 12: Main products, companies, brands & websites
WATER JETTING Main products, companies, brands & websites Total employees as at 31 March: 1,895 High-pressure Plunger Pumps and Systems Flow Handling Components High-pressure pumps Pumps, mixers, Plunger pumps Production and rental Specialized solutions (up to 1,500 HP - Homogenizers for compo
Slide 13: Hydraulics Business sector overview
HYDRAULICS Business sector overview 66% of Group sales and 59% of EBITDA in 2019 Power Take-Offs, Cylinders, Hydraulic motors and gear pumps, Valves (including Directional Control Valves). DESCRIPTION Rubber hoses, flexible metal hoses, rigid pipes, pipe system design and connection flanges (also fo
Slide 14: Application examples
HYDRAULICS Application examples TRUCK OUTFITTERS EARTH-MOVING Tipping trucks Excavators and mini-excavators Trash collection - Sewer cleaning Backhoe loaders Firefighting - Snow plowing Skid-steer loaders Towing - Car Carriers Crane trucks AGRICULTURE TRUCK MANUFACTURERS Farm tractors Factory-fitted
Slide 15: Main products, companies, brands & websites
HYDRAULICS Main products, companies, brands & websites March 2020 – Total employees: 5,546 Power Take-Offs Valves Rubber hoses INTERPUMP HYDRAULICS, Directional Control Valves Muncie Power Products, Rotating manifolds I.M.M. PZB, Hydrocar, Takarada Hypress Planetary Reduction Gears Interpump F
Slide 16: Diversified across every dimension
Diversified across every dimension Diversification of our business is the key to our resilience and low overall cyclicality Both divisions have moved from the initial 100% concentration in one sector We sell our products all over the world, to a wide range of applications across either through our i
Slide 17: Diversification by application field
Diversification by application field 2019 Total Turnover: Euro 1,369 million Truck 14% Cleaning 5% Other 4% Shipyard/Marine Contractors 5% 3% Unidentified Food Cosmetics application field & Pharma 7% (generic dealers) 26% Other Industries 9% Oil & Gas 3% Earth Moving 6% Drilling & Mining 1% Lifting
Slide 18: Diversification is a never-ending journey
Diversification is a never-ending journey Significant reduction of cyclicality and correlation achieved over the past decade WATER JETTING HYDRAULICS Diversification into many application sectors with different cycles Ongoing expansion into sectors with little or no cyclicality No single sector is c
Slide 19: International Profile
International Profile Geographical breakdown of sales and costs (2019) Sales Total Costs Rest of the World Italy 16% North 10% America 22% North Italy America 46% 27% Rest of Rest of the W.Europe World 29% 13% Rest of Europe 12% China 5% Germany India 3% 7% Eastern Latin America 4% Europe 6% 18
Slide 20: International Profile: emerging markets
International Profile Focus on emerging markets: a well-balanced presence Water-Jetting Hydraulics CHINA (大陆) INDIA BRAZIL New Delhi Beijing Brasília FY19 sales Mumbai FY19 sales FY19 sales €65 mn Pune €13 mn Rio de Janeiro Shanghai Bangalore Chennai €46 mn São Paulo 2016-2019 2016-2019 Avg. organic
Slide 21: M&A: a Successful Track Record
M&A: a Successful Track Record 40+ companies acquired since the IPO in 1996 representing roughly 2/3 of each year’s growth Different purposes for acquisitions: completing the product range, reinforcing competitive positioning, enhancing distribution Bolt-on acquisitions: no disruption in activity, i
Slide 22: The Balance of Growth
The Balance of Growth Thanks to Interpump’s approach to M&A, the cost of acquisitions in terms of capital employed is comparable to the one of organic growth... No restructuring costs ORGANIC GROWTH COSTS ACQUISITIONS …However, acquired growth brings many more benefits. ORGANIC GROWTH BENEFITS ACQUI
Slide 23: Water-Jetting Acquisition & Diversification Timeline
WATER JETTING Acquisition & Diversification Timeline Applications: from cleaning to countless Ricci Engineering: beer-brewing Fluinox: flow handling for food 2018 and winemaking equipment and plant design. cosmetics & pharma with a specific expertise in powders and pastes Inoxpa: rotative pumps, mix
Slide 24: Hydraulics Acquisition & Diversification Timeline
HYDRAULICS Acquisition & Diversification Timeline Products: from PTOs only to integrated hydraulic kits, systems and services 2020 Transtecno reduction gears Hydra Dyne Tech rotary swivels and cylinders 2019 Reggiana Riduttori planetary reduction gears 2018 GS-Hydro World leader in non-welded piping
Slide 25: 2019 Acquisitions: Hydra Dyne Tech
HYDRAULICS 2019 Acquisitions: Hydra Dyne Tech Acquired March 2019 - Headquartered in Ontario, Canada - Manufacturer of best-in-class rotary manifolds, valves and hydraulic cylinders, using the proprietary patented LocSealTM technology. Rotary manifolds represent an addition to Interpump’s product ra
Slide 26: 2019 Acquisitions: Reggiana Riduttori
HYDRAULICS 2019 Acquisitions: Reggiana Riduttori Acquired October 2019 - Headquartered in Reggio Emilia, Italy; subsidiaries in Australia, Brasil, Canada, China, France, India, A world leader in design and manufacturing of the Netherlands, Slovakia, USA reduction gears with the most versatile, light
Slide 27: 2020 Acquisitions: Transtecno
HYDRAULICS 2020 Acquisitions: Transtecno Acquired January 2020 - Headquartered in Bologna, Italy; subsidiaries in China, Netherlands, Spain, USA, Mexico - Broad range of applications including specific Designer and manufacturer of reduction product lines for poultry farming, car wash, and renewable
Slide 28: Shareholders, Stock Performance, Analyst Coverage
Shareholders, Stock Performance, Analyst Coverage Updated 11/05/2020 Shareholder Structure Interpump Stock Performance Source: CONSOB/Company Total return to shareholders since the IPO: 13.2% per year (assuming dividend reinvestment and participation to the ‘09 capital increase) IPG HOLDING Share pr
Slide 29: Corporate Offices
Corporate Offices as of 30 April 2020 Board of Directors = independent Board of Statutory Auditors Fulvio Montipò Chairman and CEO Anna Maria Allievi Chair Giovanni Tamburi Deputy Chairman Roberta De Simone Marcello Margotto Lead Independent Director Mario Tagliaferri Angelo Busani Minority Director
Slide 30: Appendix: Synthesis of results
Appendix Synthesis of results 2019 Euro/million 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 ex-IFRS16 Net Sales 424.5 342.9 424.9 472.3 527.2 556.5 672.0 894.9 922.8 1,086.6 1,279.2 1,368.6 EBITDA 87.0 46.9 74.1 94.7 105.8 105.2 136,1 180.3 198.5 248.6 288.5 317.9 302.4 Margin 20.5%
Slide 31: Appendix: Free Cash Flow (12 Months)
Appendix Free Cash Flow (12 Months) (euro/million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cash Flow from Operations 25.2 54.6 60.8 65.6 65.3 95.8 120.2 138.0 172.4 209.8 233.4 Adjustment for leases paid (IFRS16) (15.3) Change in Trade Working 44.4 10.1 (21.8) (12.3) (1.7) (23.7) (6.6
Slide 32: Carlo Banci
The Manager in charge of preparing the company’s financial reports declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records. S.Ilario d’Enz