Centrotec Se · HAM:CEV
Centrotec — CENTROTEC Sustainable — FY2009 Earnings Presentation
44 slides from Centrotec's earnings presentation, March 2010
Slide 1: CENTROTEC Annual results 2009 and outlook 2010
CENTROTEC – The European Energy-Saving Company CENTROTEC Sustainable AG Annual results 2009 and outlook 2010
Slide 2: Agenda
AGENDA FINANCIALS 2009 ! Major achievements in 2009 ! Respectable results in a weak economic climate OPERATIONAL PERFORMANCE ! Climate Systems OF SEGMENTS ! Gas Flue Systems ! Medical Technology & Engineering Plastics ! CENTROSOLAR Group AG – At Equity MARKET OUTLOOK ! Market environment ! Product i
Slide 3: Major achievements 2009: Strong performance in a challenging market
Financials 2009 Major achievements 2009: Strong performance in a challenging market ! Sales of EUR 466.6 mil. only 2.0 % below record level in 2008 ! Further gain of market shares in core markets, especially in German heating technology market ! Major growth with innovative energy saving solutions,
Slide 4: Stable performance in core business, recession impact in non-core
Financials 2009 Stable performance in core business, recession impact in non-core Sales Distribution 2009 Sales Growth by Segment [in million EUR] [in million EUR] EUR 466.6 million 2009 2008 Growth Climate Systems 309.5 319.3 -3.1 % Gas Flue Systems Gas Flue Systems 128.1 118.8 7.8 % 66% Climate 28
Slide 5: Seasonal sales development with strong recovery in last quarter 2009
Financials 2009 Seasonal sales development with strong recovery in last quarter 2009 Sales Development per quarter 2007 - 2009 [in million EUR] 5 CENTROTEC Presentation CP_2010_03_e
Slide 6: Profit & Loss Statement 2009 – Slightly below 2008 record level
Financials 2009 Profit & Loss Statement 2009 – Slightly below 2008 record level Profit & Loss Statement Profit & Loss Margins / Structure [in million EUR] [in % of sales] 2009 2008 Change 2009 2008 Sales (third party) 466.6 476.1 -2 % EBITDA 46.6 48.8 -4 % EBITDA 10.0 % 10.3 % EBIT 29.0 32.2 -10 % E
Slide 7: Reconciliation EPS vs. 2008 – Major impact from CENTROSOLAR
Financials 2009 Reconciliation EPS vs. 2008 – Major impact from CENTROSOLAR EPS [EUR] CENTROTEC reported 2008 1.13 CENTROSOLAR effect 2008 -0.13 CENTROTEC 2008 without +1.00 CENTROSOLAR CENTROSOLAR effect 2009 -0.60 Climate Systems -0.09 Gas Flue Systems +0.12 Medical Tech. & Eng. Plastics -0.18 Red
Slide 8: Balance sheet 2009 – Equity increased
Financials 2009 Balance sheet 2009 – Equity increased Assets Equity and Liabilities [in million EUR] [in million EUR] 378.4 379.6 378.4 379.6 Cash 6% 9% Other short- 10% 11% 2% term 2% liabilities 7% 8% Other short- 16% term assets 15% 13% Trade 14% Stock 16% payables 15% Trade receivables 9% 9% Oth
Slide 9: Cash-Flow 2009 – Strong operational cash-flow
Financials 2009 Cash-Flow 2009 – Strong operational cash-flow Group Cash-Flow and Investment Figures [in million EUR] 2009 2008 Delta Cash-Flow I (EAT + Depreciation & Amortization) 35.3 23.5 11.8 Cash-Flow from operations 45.1 24.8 20.2 Cash-Flow from investments -18.0 -17.9 -0.1 Cash-Flow from fin
Slide 10: Net financial debt significantly reduced due to cash flow development
Financials 2009 Net financial debt significantly reduced due to cash flow development Net financial debt [in million EUR] Acquisition Wolf 159 122 114 86 46 2005 2006 2007 2008 2009 10 CENTROTEC Presentation CP_2010_03_e
Slide 11: Cash-Flow from operations – Reconciliation 2008-2009
Financials 2009 Cash-Flow from operations – Reconciliation 2008-2009 Cash-Flow from operations [in million EUR] 11 CENTROTEC Presentation CP_2010_03_e
Slide 12: Key debt ratios – Positive development due to strong cash-flow
Financials 2009 Key debt ratios – Positive development due to strong cash-flow Key Debt Ratios Ratio Standard 2005 2006 2007 2008 2009 Net interest bearing debt < 4.0 2.0 5.3 2.8 2.3 1.9 / EBITDA Interest coverage1) > 2.5 8.3 2.6 2.9 3.7 4.5 Fixed charge coverage2) > 1.0 1.8 1.1 1.2 1.6 1.3 Gearing3
Slide 13: Profitable core business segments
Financials 2009 Profitable core business segments ROE & ROCE by segment 2009 [in %] Percentage of total sales 66 % 28 % 6% EUR 466.6 million ROE ROCE 31% 32% 29% (adj.) 19% 14% 10% ROCE Med. Tec. & 16 % 6% Eng. Plast. 10 % -4 % Climate Gas Flue Systems CENTROTEC -6% Systems (incl. holding) -46% ROE
Slide 14: Profitability development affected by economic recession
Financials 2009 Profitability development affected by economic recession Gross Margin and EBIT-Margin ROE & ROCE [in %] [in %] 58% 58% 60% 58% 56% 55% 43% Gross 53% 55% 39% margin 30% 27% 29% ROE 20% 12% 10% 14% 11% 12% 14% 10% 11% 11% 10% 10% 10% 7% 7% 6% 8% EBIT- ROCE margin 5% 3% 2002 2003 2004 2
Slide 15: Agenda
AGENDA FINANCIALS 2009 ! Major achievements in 2009 ! Respectable results in a weak economic climate OPERATIONAL PERFORMANCE ! Climate Systems OF SEGMENTS ! Gas Flue Systems ! Medical Technology & Engineering Plastics ! CENTROSOLAR Group AG – At Equity MARKET OUTLOOK ! Market environment ! Product i
Slide 16: Climate: Growth with competitive energy saving solutions
Operational Performance of segments Climate: Growth with competitive energy saving solutions Sales Major achievements 2009 [in million EUR] CAGR 2004 – 2009: 54 % ! German heating market defied the bad economic environment in 2009 with a growth of 3 %1) ! Renovation market is further gaining in impo
Slide 17: Climate: P&L development 2009: Limited impact of economic crisis
Operational Performance of segments Climate: P&L development 2009: Limited impact of economic crisis Profit & Loss statement 2009 Major effects [in million EUR] ! Further gain in market shares, especially in Climate Systems 2009 2008 Change German core market with above market average development Sa
Slide 18: Gas Flue: Continued organic growth in challenging market environment
Operational Performance of segments Gas Flue: Continued organic growth in challenging market environment Sales Major achievements 2009 [in million EUR] CAGR 2004 – 2009: 13 % ! Continued penetration of existing markets with condensing boiler technology supported by expanded regulation and incentive
Slide 19: Gas Flue: P&L development 2009 with strong performance
Operational Performance of segments Gas Flue: P&L development 2009 with strong performance Profit & Loss statement 2009 Major effects [in million EUR] ! Reduced raw material prices and further Gas Flue Systems 2009 2008 Change contributions from profit improvement programs increased gross margin Sal
Slide 20: Medical Technology & Engin. Plastics: Diverse market development
Operational Performance of segments Medical Technology & Engin. Plastics: Diverse market development Sales Major achievements 2009 [in million EUR] ! Engineering Plastics business with strong impact from economic crisis in the plant construction and engineering industry (over 50% decrease) ! Medical
Slide 21: Medical Technology & Engin. Plastics: P&L development 2009
Operational Performance of segments Medical Technology & Engin. Plastics: P&L development 2009 Profit & Loss statement 2009 Major effects [in million EUR] Medical Technology & ! Restructuring and streamlining of capacities Engineering Plastics 2009 2008 Change and cost structure in the Engineering P
Slide 22: CENTROSOLAR Group AG: P&L development 2009
Operational Performance of segments CENTROSOLAR Group AG: P&L development 2009 Profit & Loss statement 2009 Major effects [in million EUR] CENTROSOLAR ! Sales target of EUR 280 to 290 mil. exceeded Group AG 2009 2008 Change ! Non-operating impact, mainly from discontinuation of cell production Joint
Slide 23: Agenda
AGENDA FINANCIALS 2009 ! Major achievements in 2009 ! Respectable results in a weak economic climate OPERATIONAL PERFORMANCE ! Climate Systems OF SEGMENTS ! Gas Flue Systems ! Medical Technology & Engineering Plastics ! CENTROSOLAR Group AG – At Equity MARKET OUTLOOK ! Market environment ! Product i
Slide 24: Copenhagen climate conference only agreed on a 2°C goal
Market outlook Copenhagen climate conference only agreed on a 2°C goal Projection of energy related CO2-emissions Reduction scenarios for CO2-emissions and (reference scenario) major levers [ Gigatons CO2 ] International [ Gigatons CO2 ] shipping and plane traffic Not OECD gas nuclear Not OECD oil C
Slide 25: Influencing factors for investment decisions in energy saving solutions
Market outlook Influencing factors for investment decisions in energy saving solutions Oil Price National regulation Subsidies and grants [average in US$/barrel] (selection) (examples) ! Obligation for energy ! Direct grants: efficient technology: ! DE: 1.450 EUR subsidies solar 94 US$ ! ES: Solar t
Slide 26: Renovation backlog: huge market potential for energy efficient heating solutions
Market outlook Renovation backlog: huge market potential for energy efficient heating solutions German heating market development Annual boiler Comparison [ units sold ] exchange rate European boiler markets [ % of installed base ] [ 1,000 units ] [ units/mil. Inhab. ] Minimum requirement 26,500 to
Slide 27: CENTROTEC product portfolio with innovative energy saving solutions
27 Heat pumps and Condensing boiler and biomass systems heat recovery ventilation Market outlook CENTROTEC Presentation CP_2010_03_e CENTROTEC product portfolio with innovative energy saving solutions CHP and Air conditioning Solar thermal and PV- with heat recovery systems / solar cooling
Slide 28: Highly efficient condensing boiler systems for oil and gas
Market outlook Highly efficient condensing boiler systems for oil and gas Condensing boiler systems Major advantages ! Multi awards and positive test results condensing technology for oil and gas boilers ! Oil condensing boiler product range from 15 kW (newly introduced in 2010) to 40 kW ! Gas conde
Slide 29: Next generation air duct for heat recovery ventilation solutions
Market outlook Next generation air duct for heat recovery ventilation solutions Innovative air duct system Major advantages for heat recovery ventilation ! Low profile reduces overall construction costs due to reduced installation height ! Highest hygienic standards due to anti- bacteria inner surfa
Slide 30: CENTROTEC growth in an expanding German condensing boiler market
Market outlook CENTROTEC growth in an expanding German condensing boiler market German market volume for condensing boilers Source: BDH, own research 30 CENTROTEC Presentation CP_2010_03_e
Slide 31: Integrated energy roof combines solar thermal and PV
Market outlook Integrated energy roof combines solar thermal and PV with aesthetic appearance Integrated energy roof system Major advantages ! Seamless integration of solar thermal, photovoltaic and dummy collectors to a consistent aesthetic roof ! Embedding of roof windows, chimneys etc. via dummy
Slide 32: Project example: Largest solar thermal installation in UAE
Market outlook Project example: Largest solar thermal installation in UAE Solar thermal solution ADNEC hotel Abu Dhabi Project details ! Solar thermal solution with 560 collectors (1.288 sqm) for hot water in 5-star hotel with 820 beds with daily hot water consumption of 40.000 litres, total power 9
Slide 33: Growing market shares in an attractive solar thermal market
Market outlook Growing market shares in an attractive solar thermal market Newly installed solar thermal surface in Germany [ thousand sqm ] CAGR 2002 - 2009: 17 % p. a. Source: BDH, own research 33 CENTROTEC Presentation CP_2010_03_e
Slide 34: Newly introduced heat pump portfolio with highly competitive performance
Market outlook Newly introduced heat pump portfolio with highly competitive performance Complete heat pump product portfolio Major advantages ! Completely new developed heat pump system family ! Comprehensive product portfolio (Air / water, brine / water) with power range from 6 to 18 kW ! Highly ef
Slide 35: Air conditioning solutions for multiple applications
Market outlook Air conditioning solutions for multiple applications Air conditioning solutions Major advantages ! High energy efficiency through energy recovery (heat / cold) up to 90% ! Wide product range with air heating, warm air curtains, central and local air conditioning and ventilation – air
Slide 36: CHPs for efficient decentralized supply of power and heat
Market outlook CHPs for efficient decentralized supply of power and heat Combined heat and power units Major advantages ! Comprehensive CHP product range with gas engines optimized for biogas and sewage gas with performance range of 20 to 2,000 kW (total output) and up to 800 kW electric output ! Re
Slide 37: Agenda
AGENDA FINANCIALS 2009 ! Major achievements in 2009 ! Respectable results in a weak economic climate OPERATIONAL PERFORMANCE ! Climate Systems OF SEGMENTS ! Gas Flue Systems ! Medical Technology & Engineering Plastics ! CENTROSOLAR Group AG – At Equity MARKET OUTLOOK ! Market environment ! Product i
Slide 38: Moderate growth in all segments planned in 2010
Outlook 2010 Moderate growth in all segments planned in 2010 Sales Development and Guidance by Segment [in million EUR] Growth EBIT-margin 476 467 480 – 500 Medical Tech. & low one- 30 – 32 3 % … 10 % Engin. Plastics 38 29 digit area Gas Flue on 2009 119 128 130 – 140 2%…9% Systems level slightly Cl
Slide 39: Steady organic growth with energy saving solutions
Outlook 2010 Steady organic growth with energy saving solutions Sales [in million EUR] CAGR 1999 – 2009: 38 % p. a. 480 - 500 476 467 396 406 153 135 116 98 65 74 18 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e 39 CENTROTEC Presentation CP_2010_03_e
Slide 40: Continued profitable growth – back on track in 2010 (EBITDA)
Outlook 2010 Continued profitable growth – back on track in 2010 EBITDA [in million EUR] CAGR 1999 – 2009: 34 % p. a. 48– 50 48.8 46.6 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 2008 2009 2010e 40 CENTROTEC Presentation CP_2010_03_e
Slide 41: Continued profitable growth – back on track in 2010 (EBIT)
Outlook 2010 Continued profitable growth – back on track in 2010 EBIT [in million EUR] CAGR 1999 – 2009: 31 % p.a. 32.2 30 – 32 27.6 29.0 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 2008 2009 2010e 41 CENTROTEC Presentation CP_2010_03_e
Slide 42: Share price and EPS development
Outlook 2010 Share price and EPS development Share Price and EPS Development** [in EUR] 1.13 1.10 – 1.20 1.01 0.932) 0.88 20 Earnings per share [in EUR]* 0.701) Share price 0.65 15 [in EUR] 0.53 0.42 0.38 10 5 0.29 IPO 3.24 0.08 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010e * EPS (I
Slide 43: Forward looking statement
Forward looking statement This presentation contains forward-looking statements based on current expectations, assumptions and forecasts of the executive board and on currently available information. Various known and unknown risks, unpredictable developments, changes in the economic and political e
Slide 44: Thank You
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 Thank You 44 CENTROTEC Presentation CP_2010_03_e