Interpump Group S.p.a. · MIL:IP

Interpump — STAR Conference 2007

30 slides from Interpump's conference presentation, Oct 3, 2007

  1. Slide 1: STAR Conference 2007

    INTERPUMP GROUP STAR CONFERENCE 2007 London, October, 3rd and 4th, 2007

  2. Slide 2: 2007 Financial Results (First Half)

    2007 Financial Results (First Half) 1

  3. Slide 3: First Half Results

    First Half Results Growing sales, growing margins Pro -forma Pro-forma Pro -forma Pro-forma (euro/million) (euro/million) 30/06/07 30/06/07 30/06/06 30/06/06 GROWTH GROWTH Sales* 229.2 217.9 +5.2% +16.7% Sales** 204.9 196.5 +4.3% EBITDA* 49.9 46.5 +7.1% % of sales 21.8% +13.8% 21.4% EBITDA** 46.2 43

  4. Slide 4: Interpump Group Evolution

    Interpump Group Evolution • Both ROCE and ROE increased substantially in 2006 • Since listing (1996) IPG maintained a very high profitability • no dilution, though growth between 1996 and 2006 was obtained for two thirds through acquisitions ROCE* ROE* (Twelve months) (Twelve months) % 35 % 35 30 RO

  5. Slide 5: Interpump Group Evolution

    Interpump Group Evolution ROCE and ROE in the first six months* % % 19 ROCE ROE 19 Average Average 17 17 15 15 13 13 11 11 9 9 7 7 5 5 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 * 2004, 2005, 2006 and 2007 are prepared in accordance with Internati

  6. Slide 6: Cash Generation

    CASH GENERATION IPG has returned substantial amounts of cash to shareholders (euro/million) (euro/million) (1.1.97 (1.1.97 –– 30.06.07) 30.06.07) Operating cash flow 429 Capital expenditures (170) Net cash flow before acquisitions and dividends 259 Dividends (206) (263) Buy back (57) Sub-total (4) A

  7. Slide 7: Breakdown of Sales by Sector-Geography 1H 2007

    Breakdown of Sales by Sector-Geography 1H 2007 ConsolidatedSales Consolidated Sales 1H 1H2007 2007euro euro226 226million* million* Total Consolidated Sales Hydraulic Sector (€/million 226) (€/million 94) Rest of Rest of the World Italy Italy the World 16% 23% 23% 10% Pacific Area Pacific 7% Area Re

  8. Slide 8: First Half Results by Sector

    First Half Results by Sector (euro/million) Sales EBITDA Sectors 2006* 2007* Growth 2006* 2007* % % Hydraulic 91.4 93.9 + 2.8% 20.7 22.6% 21.5 22.9% Industrial High pressure pumps 41.3 41.5 + 0.6% 13.9 33.6% 13.4 32.2% Very high pressure pumps 52.4 59.2 + 13.1% 12.0 23.0% 12.5 21.2% Others 10.1 8.7

  9. Slide 9: IPG Today

    IPG TODAY INTERPUMP GROUP Company Profile

  10. Slide 10: IPG Today

    IPG TODAY • Today, IPG is an industrial group active in the mechanical component industry. • Two are the major market niches in which IPG is present: • high pressure plunger pumps - worldwide leader, with about 50% market share in the core part of the business - leading manufacturer (Hammelmann) in

  11. Slide 11: History of Interpump Group

    History of Interpump Group 1977 – Foundation of Interpump, manufacturer of high pressure plunger pumps (HPPP) • new conception • technological breakthrough early 80’s – Interpump becomes world leader in HPPP’s • high profitability / high cash generation end 80’s – First acquisitions • components (el

  12. Slide 12: NLB Acquisition

    NLB Acquisition • NLB is one of the the world leading manufacturers of very high pressure plunger pumps and high pressure systems with strong image and brand name. • Total acquisition price of 80% : $ 62.4 million*. • High potential for synergies with Group’s Companies (Hammelmann - Div. Pratissoli

  13. Slide 13: NLB First Half Results

    NLB First Half Results • Consolidated figures (six months): ($/million) 2006* 2007* Growth • Sales: 26.3 32.3 +22.8% • EBITDA 3.3 4.8 +44.8% % of sales 12.7% 15.0% • EBIT 2.6 3.7 +42.4% % of sales 10.0% 11.5% * Adjusted for director’s fees and one time extraordinary items related to the acquisition

  14. Slide 14: Net Sales Emerging Markets

    Net Sales Emerging Markets (Six months*) (euro/million) 16,0 14,0 +28% 12,0 10,0 (Euro/million) 8,0 14,1 '30/06/06 '30/06/07 6,0 10,9 +21% 4,0 +60% +17% 5,4 4,6 2,0 +6% 2,9 4,4 2,3 2,7 1,3 1,4 0,0 China India Brasil Eastern Total Europe *With NLB five months 13

  15. Slide 15: Future Growth

    FUTURE GROWTH Objective • By 2010, total sales of the group should reach € 650 million (+13% per year) With no dilution of ROCE Organic Growth • Market growth in existing mature markets: +5% per year on average • Extra growth in fast developing markets (China, India, Brazil, Eastern Europe) : an add

  16. Slide 16: The Future

    THE FUTURE • Free cash flow uses a) acquisitions b) dividends + buyback • Overall objectives a) total sales in 2010 equal or above 650 m€ b) maintain high profitability ROCE = 20% ± 2% ROE = 19% ± 2% c) average total yearly return for shareholders: at least double digit 15

  17. Slide 17: Growing without Forgetting Shareholders' Friendliness

    GROWING… without Forgetting Shareholders’ Friendliness • Since the listing (December 1996) until September 24, 2007* total return to shareholders’ (stock price increase + dividends + buy-back) has been higher than 14.3 % per year over a period of more than ten consecutive years. *(share price € 7.10

  18. Slide 18: Exhibits

    INTERPUMP GROUP Exhibits (Euro/million) 17

  19. Slide 19: Net Sales (Twelve Months)

    Net Sales (Twelve Months*) (euro/million) 600 532 493 502 500 452** 426 (Euro/million) 412 400 365*** 319 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 *2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996

  20. Slide 20: Net Sales (Twelve Months), Pro-forma

    Net Sales (Twelve Months*) (euro/million) 600 493 502 500 426 412 400 (Euro/million) 365** 319 343** 320** 300 283 221 200 200 100 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Pro-forma Pro-forma * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standa

  21. Slide 21: EBITDA (Twelve Months)

    EBITDA (Twelve Months*) (euro/million) 90 85 81 83** 80 79*** 80 77 75 70 65 61 (Euro/million) 60 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 fi

  22. Slide 22: EBITDA (Twelve Months), Pro-forma

    EBITDA (Twelve Months*) (euro/million) 90 85 80 81 79** 80 75 71** 70 65 61 59** 60 (Euro/million) 50 47 41 40 30 20 10 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Pro-forma Pro-forma * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS).

  23. Slide 23: Cash Flow (Twelve Months)

    Cash Flow (Twelve Months*) (euro/million) 65 59 55 52 (Euro/million) 43 44 45 38*** 36 35 35 32** 29 25 18 17 15 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures

  24. Slide 24: Synthesis of Results

    Synthesis of Results (Twelve Months*) (Euro/ (Euro/ million) million) 1996 1997 1996 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** 2006*** 2006*** Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 531.7 451.5 364.9 EBITDA 40.7 46.8 61.1 64.9 79.8 81

  25. Slide 25: Synthesis of Results (Pro-forma)

    Synthesis of Results (Twelve Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma million) million) 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004** 2004** 2005** 2005** 2006 2006 Net Sales 199.6 221.3 283.4 319.3 411.7 426.1 492.9 501.7 319.

  26. Slide 26: Net Sales (First Six Months)

    Net Sales (First Six Months*) (euro/million) 350 309 300 284 278 270 250 231 229** 224 218** (Euro/million) 200 166 150 134 118 112 100 50 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Pro-forma Pro-forma * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Stand

  27. Slide 27: EBITDA (First Six Months)

    EBITDA (First Six Months*) (euro/million) 60 49 50 50** 48 49 50 46 47** 43 40 (Euro/million) 36 30 30 25 25 20 10 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 Pro-forma Pro-forma * 2004, 2005, 2006 and 2007 are prepared in accordance with International Financial Reporting Standards (IFRS). From

  28. Slide 28: Cash Flow (First Six Months)

    Cash Flow (First Six Months*) (euro/million) 38 40 33 34 31 30 21 21 21 (Euro/million) 19 18 20 17 12 10 5 0 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 ** *** **** * 2004, 2005 and 2006 are prepared in accordance with International Financial Reporting Standards (IFRS). From 1996 to 2003 figures

  29. Slide 29: Synthesis of Results (First Six Months)

    Synthesis of Results (First Six Months*) (Euro/mln) 11996 (Euro/mln) 996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005** 2005** 2006*** 2006*** 2007**** 2007**** Net sales 117.7 111.8 134.1 165.9 224.1 230.9 269.6 277.8 309.4 284.3 196.5 225.8 EBITDA 25.4 24.5

  30. Slide 30: Synthesis of Results (First Six Months, Pro-forma)

    Synthesis of Results (First Six Months*) (Euro/ (Euro/ Pro- Pro-forma Pro- Pro-forma Pro-forma Pro-forma million) million) 11996 996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006** 2006** 2007** 2007** Net sales 117.7 111.8 134.1 165.9 224.1 230.9 269

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