Komax Holding AG · SIX:KOMN
Komax — FY2016 Earnings Presentation
45 slides from Komax's earnings presentation, Mar 21, 2017
Slide 1: Results 2016 and Outlook 2017
THE WAY TO MAKE IT Results 2016 and Outlook 2017 21 March 2017
Slide 2: 2016 in brief
2016 in brief THE WAY TO MAKE IT Sale of Medtech business unit to GIMA Four acquisitions • Thonauer Group • SLE Electronics USA • Ondal Tape Processing • Kabatec Development of 2017–2021 strategy Launch of various new products Establishment of new site in Mexico Restructuring in Porta Westfalica (ex
Slide 3: Agenda
Agenda THE WAY TO MAKE IT 2016 financial year Operational performance Financial performance Focus on core market (wire) Focus and outlook 2017 Questions 21 March 2017 / Results 2016 and Outlook 2017 / 3
Slide 4: Significant rise in revenues
Significant rise in revenues THE WAY TO MAKE IT 373.0 Revenue growth 18.4%, internal growth 8.8% in CHF million • Europe CHF 190.1 million (2015: CHF 156.5 million) 315.1 • North/South America CHF 77.9 million (2015: CHF 64.3 million) • Asia CHF 73.5 million (2015: CHF 61.8 million) 1 2015 2016 1 As
Slide 5: EBIT affected by one-off expenses
EBIT affected by one-off expenses THE WAY TO MAKE IT EBIT in % of revenues 15.8 15.3 One-off expenses: CHF 6.4 million Various organizational optimizations Future market position further strengthened 57.0 49.9 50.6 in CHF million EBIT excl. one-off expenses EBIT 1 2015 2016 1 As a result of the sale
Slide 6: Komax Medtech: Key figures of the sale
Komax Medtech: Key figures of the sale THE WAY TO MAKE IT Strategic buyer: GIMA Komax Medtech transaction value Contingent consideration of CHF 6.1 million in total • Earn-out: CHF 4.1 million in CHF million • Sale of residual stake (24%): CHF 2.0 million 4.1 2.0 1.7 Optimal timing for divestment of
Slide 7: Agenda
Agenda THE WAY TO MAKE IT 2016 financial year Operational performance Financial performance Focus on core market (wire) Focus and outlook 2017 Questions 21 March 2017 / Results 2016 and Outlook 2017 / 8
Slide 8: Sales growth with broad-based regional spread
Sales growth with broad-based regional spread THE WAY TO MAKE IT Net sales by region Revenues: CHF 373.0 million 20% Revenue growth: 18.4% Asia 2% Switzerland Internal growth: 8.8% 21% Change from previous year North/ South America -10% 0% 10% 20% 30% Switzerland 49% Europe Europe Africa 8% Africa N
Slide 9: Positive EBIT development
Positive EBIT development THE WAY TO MAKE IT in CHF million 32.5 –19.7 –5.7 Gross profit margin Personnel expenses -6.4 2016: 63.9% in % of revenues • Product mix 2016: 33.8% 49.9 • Volume effect ~ 57 50.6 • Higher volumes • Higher variable • Porta Westfalica Personnel expenses costs restructuring G
Slide 10: Free cash flow: shaped by strong investment activity
Free cash flow: shaped by strong investment activity THE WAY TO MAKE IT in CHF million 10.7 35.5 –9.4 –34.1 –5.1 Dividends Free cash flow CHF 2.7 million (2015: CHF 24.5 million) CHF -22.5 million 50.9 48.5 Increase in Decline in cash flow from operating activities financial liabilities from CHF 49.
Slide 11: High investment volume in 2016
High investment volume in 2016 THE WAY TO MAKE IT Net investment (excl. acquisition and sale of Net investment companies): CHF 21.4 million (excl. acquisition and sale of companies) (2015: CHF 25.1 million) • Property, plant and equipment (CHF 17.1 million) 45% • Intangible assets (CHF 4.7 million)
Slide 12: Positive currency effect
Positive currency effect THE WAY TO MAKE IT Change in currency breakdown due to Currency impact acquisitions and divestments • Net sales +0.8% • Significant rise in other currencies • Gross profit margin +0.6 percentage points (from 5% to 11%) • EBIT margin +0.2 percentage points Net sales by curren
Slide 13: Group profit after taxes (EAT) rises by 21.5%
Group profit after taxes (EAT) rises by 21.5% THE WAY TO MAKE IT Absolute increase in EAT of CHF 6.3 million Improvement in financial result by CHF 3.9 million to CHF –2.2 million; Tax rate in % of EBT prior year influenced by abandonment of minimum EUR/CHF exchange rate (2015: CHF –6.1 million) 17.
Slide 14: Financial base remains strong
Financial base remains strong THE WAY TO MAKE IT Equity ratio 72.6% Equity ratio in % of total assets Net cash of CHF 17.4 million 72.6 71.0 (31.12.2015: CHF 34.4 million) Intangible assets CHF 69.9 million 429.6 (31.12.2015: CHF 49.5 million), of which goodwill 399.0 in CHF million CHF 45.9 Mio. (3
Slide 15: Changeover from IFRS to Swiss GAAP FER: Change in shareholders' equity
Changeover from IFRS to Swiss GAAP FER: Change in shareholders’ equity THE WAY TO MAKE IT Changeover took place as of 1 January 2017 First set of financial statements under Swiss GAAP FER: half-year results 2017 Swiss GAAP FER is tailored to the needs of medium-sized international companies Valuatio
Slide 16: New syndicated loan
New syndicated loan THE WAY TO MAKE IT New syndicated loan of CHF 100 million with an Average interest rate in % option of an additional CHF 40 million 0.81 0.91 Duration: until January 2022 Average rate of interest on financial loans: in CHF million 0.91% (2015: 0.81%) 40.0 Credit line thereof util
Slide 17: RONCE remains at a high level
RONCE remains at a high level THE WAY TO MAKE IT Strategic target 2017–2021: RONCE in % RONCE of 25% on average 23.9 24.2 Consistent management of net current assets • Ongoing improvement and acceleration of internal processes 217.0 • Strict debtor management 199.7 in CHF million Net Capital Decline
Slide 18: Attractive dividend policy
Attractive dividend policy THE WAY TO MAKE IT Payout of CHF 6.50 per share proposed • Of which CHF 5.00 as dividend and CHF 1.50 as Share price development since 1 January 2012 distribution from capital contribution reserves • Payout ratio 69.1% 2012 2013 2014 2015 2016 Distribution per share in CHF
Slide 19: Agenda
Agenda THE WAY TO MAKE IT 2016 financial year Operational performance Financial performance Focus on core market (wire) Focus and outlook 2017 Questions 21 March 2017 / Results 2016 and Outlook 2017 / 20
Slide 20: Impressive facts about vehicle wiring systems
Impressive facts about vehicle wiring systems THE WAY TO MAKE IT Compact Full-size approx. 1300 approx. 1800 Wires (approx. 25% twisted) (approx. 30% twisted) Crimp contacts approx. 2300 approx. 3200 Plug housings approx. 250 approx. 300 Wire length (total) approx. 2000 m approx. 4000 m Wire length
Slide 21: Megatrends
Megatrends THE WAY TO MAKE IT Safety Affordable vehicles From accident protection to accident Increase in cost efficiency through avoidance thanks to additional sensors platform strategies and automation Environmental awareness / Integrated automobile climate change Complex integrated information sy
Slide 22: Strong growth in wires requiring processing
Strong growth in wires requiring processing THE WAY TO MAKE IT In addition: Two additional factors are doubling the volume 2 – 3% CAGR over 5 years growth that comes from the increase in vehicle production: • Rise in number of wires in vehicles • Pressure for automation Rising number of vehicles pro
Slide 23: Key strategic priorities
Key strategic priorities THE WAY TO MAKE IT Solutions along the Innovative production Increase in global Development of non- value chain concepts reach automotive markets 21 March 2017 / Results 2016 and Outlook 2017 / 24
Slide 24: Global market leader in the taping area
Global market leader in the taping area THE WAY TO MAKE IT Gap in value chain closed through acquisitions (Ondal and Kabatec) Global leader in the taping area 21 March 2017 / Results 2016 and Outlook 2017 / 25
Slide 25: Key strategic priorities
Key strategic priorities THE WAY TO MAKE IT Solutions along the Innovative production Increase in global Development of non- value chain concepts reach automotive markets 21 March 2017 / Results 2016 and Outlook 2017 / 26
Slide 26: Special circuit solutions
Special circuit solutions THE WAY TO MAKE IT Antennae Infotainment Data transmission / E-mobility sensors / airbags 21 March 2017 / Results 2016 and Outlook 2017 / 27
Slide 27: Key strategic priorities
Key strategic priorities THE WAY TO MAKE IT Solutions along the Innovative production Increase in global Development of non- value chain concepts reach automotive markets 21 March 2017 / Results 2016 and Outlook 2017 / 28
Slide 28: Global production: vehicles and harnesses
Global production: vehicles and harnesses THE WAY TO MAKE IT Vehicle production Harness production 21 March 2017 / Results 2016 and Outlook 2017 / 29
Slide 29: Geographic markets
Geographic markets THE WAY TO MAKE IT ~ 20 Crimp to crimp machines ~ 20 Other machines 21 March 2017 / Results 2016 and Outlook 2017 / 30
Slide 30: Acquisitions: Thonauer Group, Practical Solution
Acquisitions: Thonauer Group, Practical Solution THE WAY TO MAKE IT Development and production site in Singapore Sales channel in Central and Eastern Europe Distribution centre in Shanghai 21 March 2017 / Results 2016 and Outlook 2017 / 31
Slide 31: Key strategic priorities
Key strategic priorities THE WAY TO MAKE IT Solutions along the Innovative production Increase in global Development of non- value chain concepts reach automotive markets 21 March 2017 / Results 2016 and Outlook 2017 / 32
Slide 32: Development of non-automotive markets
Development of non-automotive markets THE WAY TO MAKE IT Aerospace Telecom/Datacom Industrial Safety Multimedia Small batches Lightweight construction Connected cars E-mobility Reduction of emissions Autonomous driving Integrated production / industry 4.0 Selective and complementary build-up of comp
Slide 33: Komax has changed… From product-oriented
Komax has changed… THE WAY TO MAKE IT From product-oriented… 21 March 2017 / Results 2016 and Outlook 2017 / 35
Slide 34: Komax has changed… to market segment oriented
Komax has changed… THE WAY TO MAKE IT … to market segment oriented 21 March 2017 / Results 2016 and Outlook 2017 / 36
Slide 35: Komax has changed… From stand-alone machines
Komax has changed… THE WAY TO MAKE IT From stand-alone machines… 21 March 2017 / Results 2016 and Outlook 2017 / 37
Slide 36: Komax has changed… to integrated solutions
Komax has changed… THE WAY TO MAKE IT … to integrated solutions 21 March 2017 / Results 2016 and Outlook 2017 / 38
Slide 37: Komax has changed… From capital goods
Komax has changed… THE WAY TO MAKE IT From capital goods… 21 March 2017 / Results 2016 and Outlook 2017 / 39
Slide 38: Komax has changed… to services
Komax has changed… THE WAY TO MAKE IT … to services 21 March 2017 / Results 2016 and Outlook 2017 / 40
Slide 39: Agenda
Agenda THE WAY TO MAKE IT 2016 financial year Operational performance Financial performance Focus on core market (wire) Focus and outlook 2017 Questions 21 March 2017 / Results 2016 and Outlook 2017 / 41
Slide 40: Focus 2017
Focus 2017 THE WAY TO MAKE IT Integration of acquired companies and exploitation of synergy potential Innovation (launch of various new products) Digital transformation • Introduction of global ERP system • Industry 4.0 Start of work on newbuild in Dierikon (scheduled for H2 2017) Implementation of
Slide 41: 2017–2021: Ambitious targets, attractive dividend policy
2017–2021: Ambitious targets, attractive dividend policy THE WAY TO MAKE IT 2021 2021 2017–2021 2017–2021 CHF CHF 500–600 80–100 Avg. 25% 50–60% million million of EAT Revenues EBIT RONCE Payout 21 March 2017 / Results 2016 and Outlook 2017 / 43
Slide 42: Outlook Komax Group
Outlook Komax Group THE WAY TO MAKE IT The Komax Group is very well positioned, and is confident of achieving a result in the 2017 financial year that is in line with its strategic targets for 2017–2021. After the first two months of 2017, we expect momentum in the automotive industry to remain stro
Slide 43: Contact / Financial calendar
Contact / Financial calendar THE WAY TO MAKE IT Contact Financial calendar Roger Müller Annual General Meeting 12 May 2017 Industriestrasse 6 Dividend payment 18 May 2017 6036 Dierikon Half-year results 2017 24 August 2017 Switzerland Phone +41 41 455 06 16 First Information roger.mueller@komaxgroup
Slide 44: Disclaimer
Disclaimer THE WAY TO MAKE IT This presentation contains forward-looking statements in relation to Komax which are based on current assumptions and expectations. Unforeseeable events and developments could cause actual results to differ materially from those anticipated. Examples include: changes in
Slide 45: Results 2016 and Outlook 2017
THE WAY TO MAKE IT Results 2016 and Outlook 2017 21 March 2017