H2apex Group Sca · XETR:H2A
H2apex Group Sca — exceet Group — Q1 2014 Earnings Presentation
38 slides from H2apex Group Sca's earnings presentation, May 2014
Slide 1: Investor Relation Presentation
Investor Relation Presentation May 2014 exceet Group | November 2013
Slide 2: Agenda
▪ Business ▪ Applications & Operational Highlights ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 2 exceet Group | May 2014
Slide 3: exceet Group at a Glance
EXCEET GROUP AT A GLANCE Technology Group providing development, (in EUR 1’000) Q1 2013 Q1 2014 production and services for demanding electronics in the Health, Industry and Security markets. Net Sales 43’086 48’395 Organic Sales Growth (16.5%) 12.4% The group combines know-how in development and EB
Slide 4: Our Segments
OUR SEGMENTS Segments* Competences End Markets ECMS Intelligent Electronics Comprehensive technology & product portfolio 72% combined with state-of-the art development and manufacturing ECMS: Electronic Components, Modules & Systems Health ESS Sophisticated Applications & Solutions Focuses on securi
Slide 5: Market Focus
MARKET FOCUS Markets and share of Group sales* Products & solutions Applications Competences PCBs Miniaturization Hearing aid 40% Medical Certified Box- Imaging Building Health Multichannel Embedding Transceivers 35% Chip Level Precise Sensor Placement Industry Modules Secure Payment Personalization
Slide 6: Agenda
▪ Business ▪ Applications & Operational Highlights ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 6 exceet Group | May 2014
Slide 7: Insulin Pump and Glucose Sensor
INSULIN PUMP AND GLUCOSE SENSOR ▪ Insulin Pump ▪ 2 layer rigid-flex PCB ▪ Glucose Sensor ▪ 4 layer rigid PCB Description Patient Benefit ▪ Glucose monitoring system consisting of a small sensor ▪ Alerts user in case glucose target (displays glucose data) limits are reached or likely to be ▪ An insul
Slide 8: Implanted Hearing Aid
IMPLANTED HEARING AID To ensure the best patient comfort with a long- term solution we provide ultra-miniaturized and high reliable electronics for cochlea implants. 8-Layers Flex; thickness < 0.6mm exceet Solution Patient Benefit ▪ Development and manufacturing of highly ▪ Life time solution miniat
Slide 9: Multichannel Signal Processing for Data Communications
MULTICHANNEL SIGNAL PROCESSING FOR DATA COMMUNICATIONS Electronic Signal Multi-Channel Optic Transceiver Optical Signal exceet Enables Technological Benefit ▪ The optical signals are converted to electrical ▪ Resection of cost and space in the information via integrated detectors and further field o
Slide 10: Embedded Platform
EMBEDDED PLATFORM Control unit for conveyor and processing Hardware & Software developed and produced by exceet machines used by newspaper printing companies Mainboard/ Central Machine Control Unit Human Machine Interface Processing Unit exceet`s Customer exceet`s Offering Value Added for Customer ▪
Slide 11: M2M Solution – Diagnostic Devices
M2M SOLUTION – DIAGNOSTIC DEVICES exceet as Full-Service Provider exceet provides ▪ customized hardware, connectivity tailored to the customers specific requirements as well as HARDWARE the integration of the data into the relevant APPLICATION applications and business processes DIAGNOSTIC DEVICE ▪
Slide 12: Electronic Locking Solution
ELECTRONIC LOCKING SOLUTION exceet`s electronics exceet Services End User Benefit ▪ Integrated Security Solution; exceet also provides ▪ Increase of security level access smart cards and mobile access solutions ▪ Mobile phone can be used as access ▪ exceet supplies the security electronics inside th
Slide 13: Security Solutions
SECURITY SOLUTIONS Design & Security & Manufacturing & Personalization Service Development Integration Assembly Chip, RFID, NFC, Visa, Master Card Production sites Personalization via Personalization microcontrollers, Certificated with maximum laser or thermal via laser or magnet strips, bar product
Slide 14: Operational Highlights
OPERATIONAL HIGHLIGHTS exceet further enhances sales activities in the US by appointing three new sales representatives Sales & Production Serial production qualification reached for ultra High Density Interconnector (HDI) PCBs with 15 μm line & space and laser micro holes with a diameter of 22 μm w
Slide 15: Agenda
▪ Business ▪ Applications & Operational Highlights ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 15 exceet Group | May 2014
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS ▪ Free Cash Flow EUR 1,8 million ▪ Revenues are up 12.3% (Q1 2013: EUR -3,4 million) to EUR 48.4 million driven by: ▪ Organic growth: +12.4% Free Cash - improved EBITDA Margin Revenues Flow ▪ FX impact: (0.1%) - good Working Capital management - broadly stable Capex ▪ Q1 2014 EB
Slide 17: Net Sales & EBITDA
NET SALES & EBITDA (in EUR 1,000) 12,4% 48,426 48,395 43,086 5,340 (31) 0 Revenue Actual Q1 13 Organic Growth Like-for-like Q1 14 FX impact Q1 14 Scope changes Q1 14 Actual Q1 14 / Decline Q1 14 6,6% 6,6% 10,3% 10,3% 10,3% 5,007 5,004 5,004 (3) 0 0 2,153 EBITDA 2,854 0,000 2,854 0 Actual Q1 13 Non r
Slide 18: Net Working Capital
NET WORKING CAPITAL 93,1% 28,6 59,8 60 100% 85,2% 85,6% 75,3% Trade payables 90% 50 71,0% 73,0% Other current 80% 62,4% 64,3% liabilities 40,6 40,1 40,9 63,4% Inventories 70% 40 Accrued expenses 35,8 37,2 and deferred income 33,5 Current income 60% 31,1 31,2 30 28,7 tax liabilities 50% 40% 20 30% Ot
Slide 19: From EBITDA to Free Cash Flow
FROM EBITDA TO FREE CASH FLOW (in EUR 1,000) 5,004 (627) (363) (322) (235) (1,646) 1,811 Group reported Non cash Taxes paid Interest paid Change in NWC Net Capex* Free Cash Flow EBITDA items recorded above EBITDA Positive Free Cash Flow in Q1 2014: EUR 1.8 million vs EUR (3.4 million) in Q1 2013 Mai
Slide 20: Net Debt
NET DEBT (in EUR 1,000) 7,035 1,811 0 5,105 185 66 Net financial Free Cash Flow Q1 14 Acquisition of subsidiaries Impact of FX Others Net financial debt 31.12.2013 & non controlling interests rates on cash debt 31.03.2014 Borrowings' 38,205 Borrowings' 39,554 Cash (31,170) Cash (34,449) Net Debt 7,0
Slide 21: Actuals & Medium-Term Targets
ACTUALS & MEDIUM-TERM TARGETS Group Sales (in EUR million) Organic Growth Rate 12,4% 188,8 190,8 10,8% 7,5% 7,9% 170,5 ~5,0% 3,0% 1,9% (2,4%) (2,2%) (6,4%) 47,7 50,5 50,9 49,0 48,4 46,0 44,6 43,1 47,8 (12,6%) (16,5%) (18,6%) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Medium- FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 F
Slide 22: Agenda
▪ Business ▪ Applications & Operational Highlights ▪ Financial Review & Analysis ▪ Growth Strategy & Group Strengths 22 exceet Group | May 2014
Slide 23: Growth Strategy
GROWTH STRATEGY ▪ Exploit fragmented market structure ▪ Leverage customer ▪ Enhance value chain coverage relationships Market Existing Consolidation Customers ▪ Expansion of ▪ Extend customer base technological through new healthcare capabilities applications e.g. Ultra HDI ▪ e.g. medical implants T
Slide 24: Group Strengths
GROUP STRENGTHS Strong skills in development & manufacturing of miniaturized electronic components, modules & Miniaturization systems Specialist with many years of experience in development and manufacturing of complete medical Health devices and experienced Partner for FDA approvals & certification
Slide 25: is exciting
is exciting exceet Group | November 2013
Slide 26: Annex
Annex 26 exceet Group | May 2014
Slide 27: History of exceet
HISTORY OF EXCEET Acquisition of Add-on acquisitions AuthentiDate of ECR AG and GS Merger with Card Acquisition of International AG and Swiss PCB AG Factory and the Group1) Winter AG Contec GmbH2) 2006 2007 2008 2009 2010 2011 2012 Foundation of AEM Acquisition of Ulrich Reutner Change of group IPO
Slide 28: Markets & Drivers
MARKETS & DRIVERS Share of Group Industry-CAGR 2013* until Market drivers revenues 2018 by sub-end markets Cochlea 15% ▪ Increase in aging population Hearing aid 7% ▪ Advanced developments in medical imaging Defibrillator 6% ▪ Increasing miniaturization of electrical and Tomography 8% electronic com
Slide 29: Top Customers
TOP CUSTOMERS Top 10 Customer = 46% of total Sales Selected References Customer Revenue in EUR million BERTELSMANN TRANS LINK BARCLAYCARD PHILIPS Health 22.4 CERN PHONAK Industry 13.4 COCHLEAR POSTBANK DELPHI RED BULL Health 11.8 DINERS CLUB RITTAL Health 10.2 DORNIER ROCHE DIAGNOSTICS DOUGLAS SANDO
Slide 30: Production & Engineering Sites
PRODUCTION & ENGINEERING SITES ECMS ESS IDMS Berlin, D Design, development, Düsseldorf, D Groningen, NL industrialization and series Software, Services (Cloud Services) and Development & Production production for high-end complex Consulting for Secure Business Processes of debit & credit cards elect
Slide 31: Ownership – Class A Shares
OWNERSHIP – CLASS A SHARES Eiflia Holdings GmbH 0.7% Hans Hofstetter 1.1% exceet Group (Treasury shares) 2.2% Roland Lienau 0.5% Management (Reutner, Wolny, Trommershausen) 5.7% Free Float 28.1% Class A Shares: Oranje-Nassau Participates B.V. (Wendel ) 27.8% 20,523,695 Greenock S.à r.l. (VMCap) 33.9
Slide 32: Ownership - Class B and C Shares
OWNERSHIP - CLASS B AND C SHARES Class B (Founding) Shares Class C (Earn-out) Shares 5.21 m Founding Shares 9.0m Earn-out Shares 1 Ventizz Capital Fund III 87.3% 1 Wendel 89.0% 2 Ulrich Reutner 6.0% 2 Prof. Hermann Simon 5.5% 3 Robert Wolny 6.0% 3 Roland Lienau 5.5% 4 Jan Trommershausen 0.6% Total s
Slide 33: Management Team
MANAGEMENT TEAM 2012 Ulrich Reutner Wolf-Günter Freese Robert Wolny Jan Trommershausen Chief Executive Officer Chief Financial Officer Chief Operating Officer IDMS Chief Operating Officer ECMS 33 exceet Group | May 2014
Slide 34: Group Income Statement
GROUP INCOME STATEMENT Q1 2014 / Q1 2013 (in T EUR) March 31, 2014 March 31, 2013 Revenue 48,395 43,086 Cost of sales (39,227) (36,403) Gross profit 9,168 6,683 % margin 18,9% 15,5% Distribution costs (3,177) (3,136) Administrative expenses (3,839) (3,529) Other operating expenses - - Other operatin
Slide 35: Group Balance Sheet
GROUP BALANCE SHEET Q1 2014 / Q1 2013 ASSETS (in T EUR) March 31, 2014 Dec 31, 2013 Tangible assets 35,300 35,425 Intangible assets 58,049 58,597 Deferred tax assets 0,910 0,836 Other non current assets 0,214 0,209 Inventories 33,063 31,335 Trade receivables, net 23,149 22,777 Other current receivab
Slide 36: Group Cash Flow Statement
GROUP CASH FLOW STATEMENT Q1 2014 / Q1 2013 (in T EUR) March 31, 2014 March 31, 2013 Earnings Before Taxes 1,072 3,772 Depreciation, amortization & impairment 2,487 2,481 Interest Income/(expense), net 0,294 0,255 Change in fair value in financial instruments 0,984 (3,418) Change of provisions 0,021
Slide 37: Segment Information
SEGMENT INFORMATION Q1 2014 / Q1 2013 ECMS IDMS ESS Corporate and Others Eliminations Group Consolidation 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- 01.01.- TEUR 31.03.14 31.03.13 31.03.14 31.03.13 31.03.14 31.03.13 31.03.14 31.03.13 31.03.14 31.03.13 31.
Slide 38: Disclaimer & Contact
DISCLAIMER & CONTACT This presentation contains forward-looking statements based on beliefs of exceet Group SE management. Such statements reflect current views of exceet Group SE with respect to future events and results and are subject to risks and uncertainties. Actual results may vary materially