Centrotec Se · HAM:CEV
Centrotec — CENTROTEC Sustainable — Investor Presentation (November 2008)
64 slides from Centrotec's investor presentation, November 2008
Slide 1: Company Presentation November 2008
CENTROTEC Sustainable AG Company Presentation. NOVEMBER 2008
Slide 2: Agenda
AGENDA INTRODUCTION Well positioned group in energy-saving & climate protection and health & comfort trends for modern houses Business segments MARKET FOR Market drivers energy efficiency and saving in SUSTAINABLE SOLUTIONS buildings / global climate protection Renewable energy solutions Technologic
Slide 3: Business Segments
Introduction Business Segments Medical Technology & Engineering Plastics Gas Flue Systems (medimondi AG) Medical Gas flue systems and roof products Technology & Engineering Plastics Climate Systems Solar Systems Heating, climate control and Systems integrator for photovoltaic ventilation technology
Slide 4: Development and Production of Sustainable Products
Introduction Development and Production of Sustainable Products Plastic gas flue Cascade Multi–boiler Chimney reno- Ventilation piping Ubiflex – the Technical roof Solar mounting Gas Flue systems for systems systems vation systems technology environm.-friendly products systems condensing lead substi
Slide 5: CENTROTEC is growing strongly with these products
Introduction CENTROTEC is growing strongly with these products Sales Development Market Position (EU) & Competitors [in million EUR and %] 9% Solar Top 10 Conergy, Solarworld, 9% Phoenix Medical N/A1) Fragmented market 43% Technology & Engineering Plastics 7.3% 67% 66% 10% Climate – 12) Zehnder. Ith
Slide 6: Organic growth together with rigid buy-and-build concept
Introduction Organic growth together with rigid buy-and-build concept 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Gas Flue SITEC (Italy) Climate Medical / Engineering Plastics Solar- Solar Flabeg square Solarglas Sales Development 396 406 [in million EUR] Acquisition Average organic growth 199
Slide 7: Broad positioning in the market (1/3)
Introduction CENTROTEC has broad positioning in the market (1/3) Sales Climate Sales Gas Flue [in million EUR] [in million EUR] Total EUR 274 million 167 Total EUR 96 million 86 20% 40% 107 70% 80% 60% 30% 10 20% 80% Commercial Residential Commercial Residential 40% 60% 10% 90% New Buildings Retrofi
Slide 8: Broad positioning in the market (2/3)
Introduction CENTROTEC has broad positioning in the market (2/3) Sales Climate Commercial Sales Climate Residential [in million EUR] [in million EUR] Total EUR 107 million Total EUR 167 million Renewable Energy (Wolf) Heating (Wolf) 24 10 Ventilation 15 Ventilation (Wolf) (Ned Air) 82 33 Ventilation
Slide 9: Broad positioning in the market (3/3)
Introduction CENTROTEC has broad positioning in the market (3/3) Sales Gas Flue Sales Climate Systems [in million EUR] [in million EUR] Germany 80 Germany 40 12 5 Rest of World 37 25 43 Netherlands 37 137 28 100 Netherlands Rest of 12 6 40 42 World Heating Ventilation Renew. Ventilation (Wolf) (Wolf
Slide 10: Continued international market expansion in core segments
Introduction Continued international market expansion in core segments 1) Sales by Destination 2007 CAGR June 2006-2008 2) [in %] [in %] Total EUR 370 million Former 36% Rest of Soviet Union world 14% Germany France 32% USA 2% Former Soviet Union 4% Eastern Europe 6% 45% Italy 31% Italy 2% Spain 3%
Slide 11: Entrepreneurial subsidiaries within business segments
Introduction Entrepreneurial subsidiaries within business segments CENTROTEC Sustainable AG 1) Gas Flue Climate Medical Technology & CENTROSOLAR Systems Systems Engineering Plastics Group AG 100 % 100 % 100 % 31 % 2) Ubbink NL Brink Climate Systems medimondi AG Solarstocc Ubbink F Ned Air Möller Med
Slide 12: Steady organic growth in challenging market environment
Introduction 2007: Steady organic growth in challenging market environment Sales Development [in million EUR] 470 – 475 406.4 CAGR3) 1999 – 2007 48 % 396.3 152.9 134.8 115.7 98.4 64.8 74.3 17.6 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008(e) EPS1) [in EUR] 0.08 0.29 0.42 0.38 0.53 0.65 1.13 0.8
Slide 13: Gas Flue: Continued organic growth through internationalisation
Introduction Gas Flue: Continued organic growth through internationalisation Milestones 1994 1999 2000 2007 Growth Strategy International Expanding market shares by sales to over concentrating on growing sub- (D) (NL, F, B, UK) (I) 20 countries segments: condensing boilers. closed boilers. Innovativ
Slide 14: Climate: Comprehensive range of integrated energy saving solutions
Introduction Climate: Comprehensive range of integrated energy saving solutions Milestones 2002 2003 2005 2006 2007 2008 Growth Strategy sales Exploiting energy-saving / climate to over protection trend as well as respective (NL) (NL) (D, NL) (D) 45 countries regulations in Europe by building on the
Slide 15: Medical Technology & Engineering Plastics: On track for IPO
Introduction Medical Technology & Engineering Plastics: On track for IPO Milestones 2002 2003 2005 2006 2007 Growth Strategy sales Strengthened organic growth through to over innovative own products (D) (DK) (D) (CH) 40 countries Focussing on areas or applications Fully integrated provider of medica
Slide 16: Broad international market presence
Introduction CENTROTEC group has a broad international market presence Brink Climate Systems Staphorst, NL CENTROTEC Sustainable AG Brilon, D Rolf Schmidt IndustriPlast Kolding, DK International Sales Network EnEV-Air Austria Lithuania Centroplast GmbH Ahaus, D Marsberg, D Bahrain Luxembourg Belgium
Slide 17: International market presence with strong distribution partners
Introduction International market presence with strong distribution partners CENTROTEC Group Companies and Brands End Wholesaler Installer consumer OEM Communication Advisors Direct contact with more than 10.000 Installers p.a. Project planer Architects (e.g. Product and installation training) Engin
Slide 18: Agenda
AGENDA INTRODUCTION Well positioned group in energy-saving & climate protection and health & comfort trends for modern houses Business segments MARKET FOR Market drivers energy efficiency and saving in SUSTAINABLE SOLUTIONS buildings / global climate protection Renewable energy solutions Technologic
Slide 19: Global resources of fossil fuels have limited reach
Market for Sustainable Solutions Global resources of fossil fuels have limited reach Global Energy Consumption Oil Price – actual / expectation [in billion toe/a] [average in %/barrel] 18 2018e: 200 $ Reach X3 [in years] 16 14 renewable ∞ 12 X2 biomass ∞ 2008 average up 10 coal 95 to Oct.: 101 $ 8 n
Slide 20: Limiting global warming requires ambitious targets
Market for Sustainable Solutions The limitation of global warming impact requires ambitious targets Scenarios of Global Warming: Change to Average Global Surface Temperature Intergovernmental [in °C] Panel on Climate Change (IPCC) 4,5 Impact of Global Warming 3,5 Rising sea levels / reduced glaciers
Slide 21: Significant contributions in buildings by modern heating technology
Market for Sustainable Solutions Significant contributions in buildings by modern heating technology Potential Reduction of CO2 Emissions in Buildings Global CO2 Reduction Potential Reduction of CO2 Emissions vs. Standard Boiler in 2030 [by sector in Gt CO2-eq] 0 2 4 6 8 energy -23% -28% -36% -38% c
Slide 22: Stimulation of European market by climate protection regulation
Market for Sustainable Solutions Stimulation of European market by climate protection regulation 20 / 20 / 20 EU Energy EU Directive Target Implementation of Energy Targets for 2020 Efficiency Regulation EUPD Eco-friendly design and municipal Eco-Design of Energy- energy efficiency labelling of nati
Slide 23: EPBD: Implementation of EU directives varies across Europe
Market for Sustainable Solutions EPBD: The implementation of EU directives varies across Europe Basic Regulation Instruments EU Examples of Climate Protection Regulation Direct grants: Germany: 1.800 EUR subsidies for solar UK: 2008-2011: CO2-emission target thermal system in combination with 2013:
Slide 24: EPBD: Germany has extended its support programme
Market for Sustainable Solutions EPBD: Germany has extended its comprehensive support programme Climate protection regulation and subsidies in Germany [as of Dec. 2007] Renewable Energy Incentive Program for Residential and Small Business Customers Modular system allows combination of multiple subsi
Slide 25: EUPD: MEEPS target
Market for Sustainable Solutions EUPD: MEEPS target is to cut out worst and promote the best solutions Minimum Energy Efficiency Standards (MEEPS) & Eco-Index Label Source: EU, Kemna 25 CENTROTEC Presentation CP_2008_11_e
Slide 26: EPBD: Calculation of integrated energy performance
Market for Sustainable Solutions EPBD: Methodology for calculation of integrated energy performance Energy Performance Coefficient Tightened Standards for Energy Demand in Buildings U-value (roof, walls, ground) Energy Demand U-value (windows, door) [in kWh / (m² a)] Heating Air tightness Passive so
Slide 27: Energy requirements of buildings are constantly reducing
Market for Sustainable Solutions Energy requirements of buildings are constantly reducing Energy Consumption of European Buildings [ toe 1) / unit ] 1,2 1,1 Germany 1 Austria 0,9 Sweden 0,8 Netherlands 0,7 France 0,6 Italy 0,5 Denmark 0,4 EU 0,3 1985 1990 1995 2000 2002 Source: BDH 1) toe = ton of o
Slide 28: Technology enabled significantly reduced energy demand
Market for Sustainable Solutions Technology enabled significantly reduced energy demand 1970 1980 1990 2000 2007 Regulation Germany WSV 1984 WSV 1995 EnEV 2001 KfW40/60 Double-glazed windows Insulation roof and wall Condensing boilers Solar thermal collectors Heat pumps Heat recovery ventilation Low
Slide 29: Increased penetration of condensing boilers in Europe
Market for Sustainable Solutions Increased penetration of condensing boilers in Europe Market Penetration of Condensing Boiler Technology [Share of total Boiler Market 1)] UK 100% Netherlands 80% Germany 60% Belgium Austria 40% Average EU Italy 20% France 0% Spain 1995 1997 1999 2001 2003 2005 2007
Slide 30: Significant growth in energy saving/renewable solutions
Market for Sustainable Solutions Significant growth in energy saving/ renewable solutions Expected Investments in Heating Technology in Germany [bn. EUR p.a.] CAGR 2007-2020 18 Heat Pumps CAGR 2007-2020: + 6 % +3% 16 Thermal Solar +9% 14 12 Wood Pellets +19% 10 8 Wood Stove -9% 6 -100% Conventional
Slide 31: Agenda
AGENDA INTRODUCTION Well positioned group in energy-saving & climate protection and health & comfort trends for modern houses Business segments MARKET FOR Market drivers energy efficiency and saving in buildings / SUSTAINABLE SOLUTIONS global climate protection Renewable energy solutions Technologic
Slide 32: Comprehensive portfolio of integrated energy saving solutions
CENTROTEC Product Offering & Innovations Comprehensive portfolio of integrated energy saving solutions Heating Climatisation Components Gas flue systems Oil / gas heating systems Climatisation systems up Standard up to 1 MW to 100.000 m³/h Water storage Ventilation systems Photovoltaic systems Build
Slide 33: Current development project Passivhaus-Kompaktsystem
CENTROTEC Product Offering & Innovations Current development project “Passivhaus-Kompaktsystem” Heating / Cooling Heat Recovery / Filtering Condensing Boiler Thermal Solar Water Heat / Cooling Storage Distribution Heat Pump Ventilation Network Bio- Mass Floor Control Heating Centre Comprehensive pro
Slide 34: Business Segments: Gas Flue Systems
Business Segments Gas Flue Systems Medical Technology & Gas flue systems and roof products Engineering Plastics Climate Systems Solar Systems 34 CENTROTEC Presentation CP_2008_11_e
Slide 35: Gas Flue Systems: Enabling energy saving heating systems
CENTROTEC Product Offering & Innovations Gas Flue Systems: Enabling energy saving heating systems Products Gas flue systems for heatings (extracting waste gas of boilers in domestic houses) and supply of oxygen from outside for burning process Typically concentric (pipe-in-pipe) in various material
Slide 36: Gas Flue Systems: Chimney renovation system
CENTROTEC Product Offering & Innovations Gas Flue Systems: Chimney renovation system Stock and Ageing Structure of Boilers Chimney Renovation System in Germany German Stock of Boilers1) Developed for retrofit of [in million] chimneys 4,3 Leaves roofs and chimney 10.5 mil. Boilers older Oil than 10 y
Slide 37: Gas Flue Systems: Multi-boiler gas flue system
CENTROTEC Product Offering & Innovations Gas Flue Systems: Multi-boiler gas flue system Ageing Structure of Boilers in Germany Cascade & Multi-Boiler System CLV European Stock of Boilers Developed for multi-family [in million] dwellings Collective District Heating Boilers 31 30 & Electric Several bo
Slide 38: Gas Flue Systems: Ubiflex eco-friendly lead replacement
CENTROTEC Product Offering & Innovations Gas Flue Systems: Ubiflex – eco-friendly lead replacement Average Yearly Lead Prices Lead Replacement Ubiflex [in US$ per ton] No environmental or health risk 3.000 Life expectancy of more CAGR 2002 - 2008: 34 % p. a. than 30 years Absolutely corrosion-proof
Slide 39: Business Segments: Climate Systems
Business Segments Medical Technology & Gas Flue Systems Engineering Plastics Solar Systems Climate Systems Heating, climate control and ventilation technology 39 CENTROTEC Presentation CP_2008_11_e
Slide 40: Climate Systems: Product range with leading edge technology
CENTROTEC product offering & innovations Climate Systems: Product range with leading edge technology Products Heating systems Gas and Oil (floor standing and wall hung) Heating systems Renewable Energies (solar, biomass) Large climatisation systems for commercial buildings Ventilation systems saving
Slide 41: Climate Systems: Oil condensing boilers
CENTROTEC Product Offering & Innovations Climate Systems: Oil condensing boilers Breakdown of New Boilers Installed in Germany COB Condensing Oil Boilers by Wolf CAGR 1998 - 2007: 12 % p. a. Very wide selection of performance ranges Suitable for extra liquid and low-sulphur heating oil 7% Condensing
Slide 42: Climate Systems: Solar thermal systems
CENTROTEC Product Offering & Innovations Climate Systems: Solar thermal systems New Installed Solar Thermal Surface Wolf Solar Thermal System in Germany [in million sqm] 2,150 CAGR 2002 - 2009: 20 % p. a. Suitable for water heating and for heating backup 1,800 High efficiency 1,500 Versatile install
Slide 43: Climate Systems: Wolf KG-TOP climate systems
CENTROTEC Product Offering & Innovations Climate Systems: Wolf KG-TOP – new generation climate systems Climate Controlled Building Space in the EU New Generation of Climatisation System [in m² per inhabitant in 2000] Air volume output: up to 100,000 m3/h ES 6,2 16 different sizes available immediate
Slide 44: Business Segments: Medical Technology & Engineering Plastics
Business Segments Medical Technology & Engineering Plastics (medimondi AG) Medical Gas Flue Systems Technology & Engineering Plastics Climate Systems Solar Systems 44 CENTROTEC Presentation CP_2008_11_e
Slide 45: Fully integrated medical systems and high-tech plastics
CENTROTEC Product Offering & Innovations Fully integrated medical systems and high-tech plastics LiquoGuard Products Medical equipment - Fully integrated systems: Liposuction, blood mixing machine, LiquoGuard (New own product with leading application and security advantages) - Larger sub-systems: di
Slide 46: LIQUOGUARD automatic liquor control system
CENTROTEC Product Offering & Innovations Medical: LIQUOGUARD® - automatic liquor control system German medical technology market volume Example LIQUOGUARD® [in EURO bn.] CAGR 2001 - 2008: > 7 % p. a. Maximized patient safety by means of 18,28 15,92 17,17 sophisticated alarm concept and 14,72 minimiz
Slide 47: Agenda
AGENDA INTRODUCTION Well positioned group in energy-saving & climate protection and health & comfort trends for modern houses Business segments MARKET FOR Market drivers energy efficiency and saving in buildings / SUSTAINABLE SOLUTIONS global climate protection Renewable energy solutions Technologic
Slide 48: Organic growth in all segments
Financials Organic growth in all segments Sales Distribution 2007 Sales Growth by Segment [in million EUR] [in million EUR] Organic EUR 406.4 million 2007 2006 Growth Growth Gas Flue 96.4 85.1 13% 13% Systems Gas Flue Systems Climate Systems 274.1 110.0 149% 2% 67% Medical 24% Climate Technology & 3
Slide 49: Changes in segment structure
Financials Changes in segment structure Sales Transition 2006 – 2007 [in million EUR] 396 383 406.4 36 29 +23.6 172 -172 +158 269 274 29 110 85 85 96 2006 Solar Systems Wolf 12 2006 organic growth 2007 At Equity months As-If 2007 49 CENTROTEC Presentation CP_2008_11_e
Slide 50: Turnover affected by decline of German heating market
Financials Turnover affected by decline of German heating market Sales Split Gas Flue and Climate to German Heating Market 2006-2007 [in million EUR] 383 354 + EUR 16 million 370 +4.6% 29 229 Other 273 269 + EUR 44 million Organic Growth +19% 125 Heating Market Germany Decline -22% 85 97 - EUR 28 mi
Slide 51: Profit & Loss Statement 2007
Financials Profit & Loss Statement 2007 Profit & Loss Statement Profit & Loss Margins / Structure [in million EUR] [in %] 2007 2006 Change 2007 2006 Change Sales (third party) 406.4 396.3 3% EBITDA 43.6 30.3 44% EBITDA 10.7% 7.6% 40% EBIT 27.6 12.5 121% EBIT 6.8% 3.2% 115% Interest -9.6 -5.6 71% Int
Slide 52: Reconciliation EBIT and EPS vs. previous year
Financials Reconciliation EBIT and EPS vs. previous year EBIT EPS [in million EUR] [in EUR] Actual 2006 12.5 0.88 Wolf PPA and acquisition costs, Innosource +8.0 – 8.5 +0.32 – 0.34 impairment, financing Increased financing costs -0.20 due to Wolf acquisition Wolf operational Q1-Q3 / +3.4 +0.13 2006
Slide 53: Balance sheet 2007
Financials Balance sheet 2007 Assets Equity and Liabilities [in million EUR] [in million EUR] 483.1 361.8 483.1 361.8 4% 5% Cash 2% 2% Other short- 10% 10% term 17% 15% liabilities 8% 9% Other short- term assets 14% 13% Trade Stock 16% 17% payables Trade 2% 9% Other long- receivables term 37% 38% Ot
Slide 54: Cash-Flow 2007
Financials Cash-Flow 2007 Group Cash-Flow and Investment Figures [in million EUR] 2007 2006 Delta Cash-Flow I (EAT + Depreciation & Amortization) 32.6 33.1 - 0.5 Cash-Flow from operations 32.7 5.6 + 27.0 Cash-Flow from investments -19.1 - 96.3 + 77.2 Cash-Flow from financing -10.8 83.9 - 94.7 Total
Slide 55: Key debt ratios influenced by 2006 investing activities
Financials Key debt ratios influenced by 2006 investing activities Key Debt Ratios Ratio Standard 2002 2003 2004 2005 2006 2007 2008e Net interest bearing debt / < 4.0 2.4 2.4 1.7 2.0 5.3 2.8 2,0 – 2,5 EBITDA Interest coverage* > 2.5 4.7 6.0 7.5 8.3 2.6 2.9 3,5 – 4,0 Fixed charge coverage** > 1.0 1.
Slide 56: Continued growth in new segment structure
Financials Continued growth in new segment structure Sales Development and Guidance by Segment [in million EUR] Growth 470 – 475 EBIT- 406 ~ 401) margin 383 36 Medical Tech. & 29 Engin. Plastics ca. 8 % 8–9% > 310 Climate 269 274 ca. 14 % 6-7% Systems > 14 % < 10 %2) Gas Flue > 110 85 96 Systems 200
Slide 57: Continued growth in new segment structure: Sales
Financials Continued growth in new segment structure Sales [in million EUR] CAGR 1999 – 2007: 48 % p. a. 470 – 475 406.4 396.3 As-If with As-If with 12 months months Wolf excluding Wolf excluding CENTROSOLAR CENTROSOLAR 153 135 116 98 74 65 18 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e 57 CE
Slide 58: Integration and exploitation of synergies in 2008
Financials Integration and exploitation of synergies in 2008 EBITDA [in million EUR] CAGR 1999 – 2007: 42 % p. a. 47 – 49 43.6 30.3 23.2 23.0 19.4 15.6 13.4 11.4 2.6 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e 58 CENTROTEC Presentation CP_2008_11_e
Slide 59: Continued profitable growth
Financials Continued profitable growth EBIT [in million EUR] 32 – 34 CAGR 1999 – 2007: 39 % p.a. 27.6 operational 23 – 24 18.5 17.7 15.2 11.4 10.2 8.3 12.5 2.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008e 59 CENTROTEC Presentation CP_2008_11_e
Slide 60: Share price and EPS development
Financials Share price and EPS development Share Price and EPS Development** [in EUR] 20 2005: 2005: Dilutionprofits Dilution profits Centrosolar Centrosolar 1.01 1.10 – 1.15 1.13 18 16 2006: Net-effect 2006: Net-effect dilution dilutionCentrosolar Centrosolar 0.88 Shareprice Share price 14 andand e
Slide 61: Profitability affected by Wolf acquisition
Financials Profitability affected by Wolf acquisition Gross Margin and EBIT-Margin ROE & ROCE (Adjusted for Goodwill) [in %] [in %] 58% 60% 58% 58% 58% 56% 56% 55% 43% 54% Gross ROE 39% margin 30% 31% 27% 29% 25% 12% 20% 20% 14% 18% 13% 16% 11% 12% 15% 10% 13% 7,5% EBIT- 6,8% ROCE margin (adj.) 7% 3
Slide 62: Profitability dependent on specifics of business segment
Financials Profitability dependent on specifics of business segment ROE & ROCE (adjusted for goodwill) by segment 20071) [in %] Percentage of total sales 24% 67% 9% EUR 406.4 million 115% 54% 29% 12% 23% 23% ROE 15% 7% ROCE (adj.) Gas Flue Systems Climate Systems MedTec. & CENTROTEC & Other EngPlast
Slide 63: Results first nine month of 2008
Financials Results first nine month of 2008 P&L [in million EUR] Jan. - Sep. 2008 Jan. – Sep. 2007 Delta Sales (external) 346.8 290.3 19.5 % Gross margin % 49.7 % 50.7 % EBITDA 34.6 28.0 23.8 % EBIT 22.9 16.3 40.3 % Interest -6.5 -6.5 0% EBT 19.1 10.4 82.7 % Tax -5.2 0.8 >-100 % EAT 13.8 11.2 23.5 %
Slide 64: Contact
Contact CENTROTEC Sustainable AG Am Patbergschen Dorn 9 59929 Brilon www.centrotec.de GERMANY [email protected] Tel,: +49 2961 96631-0 WKN: 540750 Fax: +49 2961 96631-100 ISIN: DE 0005407506 64 CENTROTEC Presentation CP_2008_11_e
CENTROTEC Sustainable — Investor Presentation (November 2008) on 6ix