Interpump Group S.p.a. · MIL:IP
Interpump — H1 2018 Earnings Presentation
32 slides from Interpump's earnings presentation, August 2018
Slide 1: Interpump Group 2018 Second Quarter and Half-Year Results
August 2018 Interpump Group 2018 Second Quarter and Half-Year Results
Slide 2: Disclaimer
Disclaimer This document has been prepared by Interpump Group S.p.A for use during The information set out in this document is provided as of the date indicated meetings with investors and financial analysts and is solely for information herein. Except as required by applicable laws and regulations,
Slide 3: Table of Contents
Table of Contents Welcome! Our Q2/H1 2018 & FY 2017 Results are on page 3 New to the company and could use an Introduction? See Who we are on page 9 Our yearly update on Markets and Diversification is on page 17 More information on Growth Strategy and Recent M&A on page 22 You will find Shareholder
Slide 4: Q2 2018 Consolidated Results
FINANCIALS Q2 2018 Consolidated Results € mn Q2 2017 Q2 2018 y/y Organic growth in sales +13.3% FX contribution -3.7% Increase in perimeter +6.2% TOTAL REPORTED SALES 286.0 331.1 +15.8% EBITDA 67.9 77.2 +13.7% EBITDA / SALES 23.7% 23.3% NET INCOME (as reported) 33.7 42.7 +26.6% Tax rate 33.9% 31.3%
Slide 5: H1 2018 Consolidated Results
FINANCIALS H1 2018 Consolidated Results € mn H1 2017 H1 2018 y/y Organic growth in sales +12.9% FX contribution -4.9% Increase in perimeter +7.2% TOTAL REPORTED SALES 558.8 643.4 +15.2% EBITDA 130.8 146.8 +12.3% EBITDA / SALES 23.4% 22.8% NET INCOME (as reported) 66.3 94.3 +42.3% Tax rate 34.2% 27.5
Slide 6: Results by Sector
FINANCIALS Results by Sector € mn WATER-JETTING Q2 2018 y/y H1 2018 y/y Organic growth in sales +7.4% +7.9% FX contribution -4.1% -5.7% Increase in perimeter +1.2% +4.0% TOTAL REPORTED SALES 109.9 +4.5% 215.5 +6.2% EBITDA 30.9 +7.5% 58.4 +7.3% EBITDA / SALES 28.0% 27.0% HYDRAULICS Q2 2018 y/y H1 201
Slide 7: FY 2017 Consolidated Results
FINANCIALS FY 2017 Consolidated Results € mn FY 2016 FY 2017 y/y Organic growth in sales +9.3% FX contribution -0.7% Increase in perimeter +9.1% TOTAL REPORTED SALES 922.8 1,086.5 +17.7% EBITDA 198.5 248.6 +25.3% EBITDA / SALES 21.5% 22.9% NET INCOME (as reported) 94.5 135.7 +43.7% Tax rate 36.4% 29
Slide 8: Sales & EBITDA Trend
FINANCIALS Sales & EBITDA Trend € mn - net of Cleaning (dismissed in 2005) and Electric Motors (2011) 1,087 249 923 895 199 180 672 557 527 136 472 400 105 105 389 389 95 92 329 322 87 297 80 74 68 48 05 06 07 08 09 10 11 12 13 14 15 16 17 05 06 07 08 09 10 11 12 13 14 15 16 17 First 12 months’ turn
Slide 9: 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 and including commitments for purchase of investments Operating profit / (consolidated shareholder's equity + net debt) 5x 25 DE
Slide 10: Who we are
Who we are INTERPUMP GROUP Public company (~75% free float) Listed at the Milan Stock Exchange since 1996 (ticker: IP.MI) Among the largest market caps in the STAR segment Stock is eligible for PIRs (government-sponsored saving investment plans for Italian households with significant tax advanta
Slide 11: 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 12: Know-How & Innovation: Water-Jetting Competitive Scenario
WATER JETTING Competitive Scenario Flow Handling Niche of Very High Pressure Plunger Pumps Food, Cosmetics & Pharma (estimated market size: <1bn/yr) (estimated market size: € 8 bn/yr) Wide High Know-How & Innovation Product Range Narrow Low Low High Low High Market Penetration Market Penetration GRO
Slide 13: Hydraulics Competitive Scenario
HYDRAULICS Competitive Scenario A fast-growing global player in a huge market (est. € 40 bn/yr) with countless opportunities for acquisitions Wide Product Range Narrow Low Market Penetration High Markets served, geographical presence 12
Slide 14: Main Companies, Brands and Products: Water-Jetting
WATER JETTING Main Companies, Brands and Products June 2018 – Total employees: 1,757 High-pressure Plunger Pumps Flow Handling Components High-pressure pumps Pumps, mixers, Plunger pumps Production and rental Specialized solutions (up to 1,500 HP - Homogenizers for components & high flow/ high
Slide 15: Main Companies, Brands and Products: Hydraulics
HYDRAULICS Main Companies, Brands and Products March 2018 – Total employees: 4,661 Power Take-Offs Valves Rubber hoses INTERPUMP HYDRAULICS, Directional Control Valves I.M.M. Muncie Power Products, Hypress PZB, Hydrocar, Takarada Interpump Hose Cylinders Metallic flexible hoses Panni Oleodinam
Slide 16: Application examples: Water-Jetting
WATER JETTING Application examples FOOD, COSMETICS, PHARMACEUTICAL AUTOMOTIVE Pumps, valves, processing and cleaning systems Deburring of common-rail engine heads Agitators (including magnetic trasmission) Cutting of bodywork and other materials High-pressure homogenizers Cleanup of welded seals Wat
Slide 17: Application examples: Hydraulics
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 18: Diversification by sales channel and application field
Diversification by sales channel and application field Total sales by channel Sales by Application Field 2017 Total Turnover: Euro 1,087 million Dealers Truck 16% 30% Shipyard/Marine 1% Final & Other 4% OEM's Cleaning 6% 70% Food & Pharma Contractors 5% 7% Dealers (30%) not included Other Industries
Slide 19: 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 20: International Profile: Interpump in the World
International Profile: Interpump in the World NORTHERN ITALY Company headquarters Foreign subsidiary Local branch Other plant / office 19 Map data ©2018 GeoBasis-DE/BKG (©2009), Google, INEGI
Slide 21: International Profile: geographical breakdown of sales and costs
International Profile Geographical breakdown of sales and costs (2017) Sales Total Costs Rest of the World North 10% Italy 18% America 22% Eastern Europe North 6% America Italy 27% Rest of the 50% World 14% Rest of Europe 29% China 4% Germany Rest of Europe India 3% 7% 7% Latin America 3% 20
Slide 22: International Profile: emerging markets
International Profile Focus on emerging markets: a well-balanced presence CHINA (大陆) INDIA SOUTH KOREA BRAZIL New Delhi Pyeongtaek Seoul Beijing Brasília Mumbai Pune Rio de Shanghai Janeiro Busan Bangalore São Paulo Chennai Guangzhou Porto Alegre Presence through Presence through Presence through Pr
Slide 23: 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 3 kinds of acquisitions: Completing the product range, reinforcing competitive positioning, enhancing distribution Bolt-on acquisitions: no disruption in activity, immediate syn
Slide 24: Acquisition & Diversification Timeline: Water-Jetting
WATER JETTING Acquisition & Diversification Timeline Applications: from cleaning to countless Pumps and other machines for household and industrial cleaning NLB: selling and renting Hammelmann: focus on high pressure systems to a large and Acquisition of a control stake higher-pressure pumps. in Ino
Slide 25: Acquisition & Diversification Timeline: Hydraulics
HYDRAULICS Acquisition & Diversification Timeline Products: from PTOs only to integrated hydraulic kits, systems and services PZB & Hydrocar, Italian manufacturers of power take-offs. Galtech, MTC Muncie: Interpump valves becomes world American Walvoil reinforces leader in PTOs Mobile Power presence
Slide 26: 2018 Acquisitions: GS-Hydro
HYDRAULICS 2018 Acquisitions: GS-Hydro - a world leader in design and execution of piping systems in the industrial, marine, and offshore sectors Estimates for 2017 (€ mn) - revolutionized the piping industry with the SALES 60 invention of “non-welded” pipe assembly EBITDA 4 technology (cleaner and
Slide 27: 2018 Acquisitions: Ricci Engineering
WATER JETTING 2018 Acquisitions: Ricci Engineering - A successful start-up which designs, builds and installs plants for breweries and winemakers - operates in the promising business of micro-brewery plants, a new and fast- expanding market Total acquisition price: € 0.6 mn Estimates for 2018 (€ mn)
Slide 28: Shareholders, Stock Performance, Analyst Coverage
Shareholders, Stock Performance, Analyst Coverage Updated 02/08/2018 Shareholder Structure Interpump Stock Performance Source: CONSOB/Company Total return to shareholders since the IPO: 14.1% 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 June 2018 Board of Directors = independent Board of Statutory Auditors Fulvio Montipò Chairman and CEO Fabrizio Fagnola Chairman Paolo Marinsek Deputy Chairman Federica Menichetti Franco Garilli Lead Independent Director Alessandra Tronconi Angelo Busani Minority Director
Slide 30: Appendix: Synthesis of results
Appendix Synthesis of results Euro/million 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 531.7 331.6 364.9 432.2 424.5 342.9 424.9 472.3 527.2 556.5 672.0 894.9 922.8 1086.6 EBIT
Slide 31: Appendix: Free Cash Flow
Appendix Free Cash Flow (12 Months) (euro/million) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cash Flow from Operations 25.2 54.6 60.8 65.6 65.3 95.8 120.2 138.0 172.4 Change in Trade Working Capital 44.4 10.1 (21.8) (12.3) (1.7) (23.7) (6.6) (12.2) (30.8) Capex (9.2) (8.7) (11.8) (15.8) (29.8) (3
Slide 32: Manager's declaration (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