Komax Holding AG · SIX:KOMN
Komax — FY2015 Earnings Presentation
23 slides from Komax's earnings presentation, Mar 22, 2016
Slide 1: Results 2015 and Outlook 2016
THE WAY TO MAKE IT Results 2015 and Outlook 2016 22 March 2016 22 March 2016 / Results 2015 and Outlook 2016 / 1 Agenda THE WAY TO MAKE IT Results 2015 Operational performance Financial performance Focus and Outlook 2016 Discussion 22 March 2016 / Results 2015 and Outlook 2016 / 2
Slide 2: 2015 in brief / Key figures
2015 in brief THE WAY TO MAKE IT High order intake and increased Group profit Order intake +20.4% to CHF 442.8 million Revenues +1.4% to CHF 368.5 million, internal growth 4.4% EBIT CHF 46.7 million (2014: CHF 48.1 million), EBIT margin 12.7% EAT +5.3% to CHF 29.2 million Strong balance sheet (equit
Slide 3: Distribution of net sales by segment, region and industry
Distribution of net sales by segment, region and industry THE WAY TO MAKE IT 1 1 2013 2014 2015 by segment Komax Wire 79% 81% 85% Komax Medtech 21% 19% k.A. 15% k.A. by region Switzerland 2% 3% 3% Europe 47% 46% 48% Africa 7% 9% 8% North/South America 24% 19% 23% Asia 20% 23% 18% by industry Automot
Slide 4: Komax Wire – strong momentum
Komax Wire – strong momentum THE WAY TO MAKE IT EBIT margin Net sales by region 40 0 18.7% 19.0% 19% 2% 35 0 313.3 Asia Switzerland 30 0 295.0 in CHF million 25 0 Net sales EBIT 21% North/ 20 0 15 0 South America 48% 10 0 Europe 55.3 59.7 50 10% 0 Africa 2014 2015 Change from previous year -20% 0% 2
Slide 5: The number of wires globally processed for cars is set to grow
The number of wires globally processed for cars is set to grow THE WAY TO MAKE IT Increasing number of vehicules produced – + around CAGR 2015 – 2021E: ~2.5% 3% CAGR Trends such as: • Environmental awareness/climate change • Connected car • Safety • Affordable car Number of wires from vehicle produc
Slide 6: Komax Wire covers the most capital intensive parts of the value chain
Komax Wire covers the most capital intensive parts of the value chain… THE WAY TO MAKE IT Komax Wire is market leader Market share1 Technological leadership High level of innovation Komax Wire Global presence Comprehensive product range – Others complete solution provider Komax Wire systems 1 Relati
Slide 7: New processing solutions thanks to the collaboration with partners
New processing solutions thanks to the collaboration with partners THE WAY TO MAKE IT Efficient automation in control cabinet engineering Efficient automation process • Manufacturing time reduced by up to 50% • End-to-end data flow from ECAD to the machine • Efficient just-in-time production • Wirin
Slide 8: Further potential along the value chain / Market position strengthened through acquisitions
… Thus further potential along the value chain emerges THE WAY TO MAKE IT Required working time in harness manufacturing taping/ assembly of fixtures bundling routing taping assembly of fixtures handling/ handling/ logistics logistics Komax Wire routing systems 22 March 2016 / Results 2015 and Outlo
Slide 9: Thonauer Group – an ideal fit for Komax Wire
Thonauer Group – an ideal fit for Komax Wire's service and distribution network THE WAY TO MAKE IT Unique distribution channel in central and eastern Europe, one of the fastest growing areas globally Service and distribution network in seven countries Revenues of ~EUR 20 million, 50 employees Extens
Slide 10: A structured innovation process leads to value-creating solutions
A structured innovation process… THE WAY TO MAKE IT INTERNAL SOURCES Know how and competencies > 7% of net sales for R&D Around 145 employees in R&D; additionally more than 160 people for the engineering of customer-specific applications VALUE ADDING PRODUCT DEVELOPMENT – KOMAX SOLUTIONS Optimizatio
Slide 11: Komax Medtech – record high order intake
Komax Medtech – record high order intake THE WAY TO MAKE IT Net sales by region 12% 11% Asia Switzerland 68.6 in CHF million Net sales 36% 54.7 EBIT North/ South America 41% Europe 1.2 -2.6 2014 2015 Change from previous year -60% -40% -20% 0% 20% 40% 60% 80% Increase in order intake of 45.2% Switze
Slide 12: Growth in revenues despite currency influence burden
Agenda THE WAY TO MAKE IT Results 2015 Operational performance Financial performance Focus and Outlook 2016 Discussion 22 March 2016 / Results 2015 and Outlook 2016 / 23 Growth in revenues despite currency influence burden THE WAY TO MAKE IT EBIT margin Net sales by region 13.4 13.2 12.7 18% 3% Asia
Slide 13: EBIT virtually unchanged – significant increase in gross profit margin
EBIT virtually unchanged – significant increase in gross profit margin THE WAY TO MAKE IT in CHF million 15.9 -12.6 -4.7 Gross profit margin Personnel expenses 2015: 64.1% in % of revenues • Product mix 2015: 35.6% 46.7 48.1 • Volume effect marginal • IAS 19: negative impact of CHF 2.3 million Gross
Slide 14: Free cash flow increased – despite higher investments
Free cash flow increased – despite higher investments (incl. granted loans) THE WAY TO MAKE IT in CHF million 10.2 10.2 29.2 -25.1 -26.3 Free cash flow CHF 24.5 million (2014: CHF 14.4 million) Dividends CHF -18.3 million 52.7 50.9 Currency Cash flow from operating activities increased from translat
Slide 15: Currency weigh on net sales, gross profit and EBIT
Currency weigh on net sales, gross profit and EBIT THE WAY TO MAKE IT Currency impact Net sales by currencies • Net sales –3.0% • Gross profit margin –1.7pp 5% • EBIT margin –1.5pp 20% Others CHF Impact from abandonment of the minimum EUR/CHF exchange rate was compensated by around 50% with specific
Slide 16: Group profit after taxes (EAT)
Group profit after taxes (EAT) THE WAY TO MAKE IT EAT increased by 5.3% to CHF 29.2 million Basic earnings per share CHF 8.00 (2014: CHF 7.64) Tax rate in % of EBT Increase in tax rate to 17.7% (2014: 6.8%) 17.7 • Low tax rate in the previous year due to sale of Komax Solar 13.0 6.8 • High negative
Slide 17: Komax remains in extremely robust financial health
Komax remains in extremely robust financial health THE WAY TO MAKE IT Equity ratio 71.0% Further increase in net cash to CHF 34.4 million Equity ratio (2014: CHF 29.2 million) 73.8 73.2 71.0 Intangible assets of CHF 49.5 million (2014: CHF 47.4 million), thereof Goodwill CHF 29.2 million (2014: CHF
Slide 18: Steady reduction of average net working capital / Attractive profitability
Steady reduction of average net working capital in % of revenues THE WAY TO MAKE IT Further decrease of days sales outstanding (DSO) Average NWC in % of revenues on trade receivables Expansion contract controlling Extension worldwide inventory controlling 39.2 36.4 35.7 Target for average net workin
Slide 19: Focus 2016
Agenda THE WAY TO MAKE IT Results 2015 Operational performance Financial performance Focus and Outlook 2016 Discussion 22 March 2016 / Results 2015 and Outlook 2016 / 37 Focus 2016 THE WAY TO MAKE IT Capture synergies from acquisitions and partnerships Growth along the value chain Regional market de
Slide 20: Outlook Komax Group / Outlook Komax Wire
Outlook Komax Group THE WAY TO MAKE IT The current macroeconomic environment remains characterized by wide-ranging uncertainty. Against this backdrop, Komax is focusing on the factors that it can directly influence itself, and is therefore looking to its clear strengths such as its innovative drive
Slide 21: Outlook Komax Medtech / Strategy – focus on wire processing
Outlook Komax Medtech THE WAY TO MAKE IT The commercial environment facing Komax Medtech remains challenging. However, given its strong order book at the start of the year, with its numerous repeat projects and highly promising orders from new customers, Komax Medtech is confident that net sales wil
Slide 22: Contact/Financial calendar
Agenda THE WAY TO MAKE IT Results 2015 Operational performance Financial performance Focus and Outlook 2016 Discussion 22 March 2016 / Results 2015 and Outlook 2016 / 43 Contact/Financial calendar THE WAY TO MAKE IT Contact Financial calendar Marco Knuchel Annual General Meeting 12 May 2016 Industri
Slide 23: 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