Cembre S.p.a. · MIL:CMB
Cembre — FY2017 Earnings Presentation
32 slides from Cembre's earnings presentation, March 2018
Slide 1: Investor Presentation: 2017 Consolidated Results
Investor Presentation 2017 Consolidated results
Slide 2: Cembre at a Glance
Investor Presentation Cembre at a Glance Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools; The Group has grown its revenues by a CAGR of 5.5% in the last 17 years (2001-2017), from €56 mn in 2001 to €132.6 mn in 2017; It is a dividend-payer w
Slide 3: Contents
Investor Presentation Contents Management Team Business overview 2017 results 2017 guidance Stock data & shareholding structure Contact 3
Slide 4: Management team
Investor Presentation Management team Giovanni Rosani Chief Executive Officer (CEO) OUR MISSION Cembre cooperates with the users of its products to find the best technical Aldo Bottini Bongrani and economical solutions related to electrical connection applications. Sales and Marketing Director Claud
Slide 5: Group Structure
Investor Presentation Group Structure 488 S.p.A 100% 100% 100% 100% 100% Cembre Cembre Ltd. Cembre Sarl Cembre GmbH Cembre Inc. España SLU Great Britain France Germany USA Spain 102 27 41 22 30 Production and commercial units Commercial units Number of employees at December 31, 2017 5
Slide 6: Business Overview
Investor Presentation Business Overview Cembre is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools. Electrical Connectors Tools Railway Products Identification Cable Glands, Systems Accessories and other 6
Slide 7: Made in Brescia…
Investor Presentation Made in Brescia… Cembre, established in 1969, manufactures its products in its state-of- art production facility located in Brescia. The facility covers an area of 51,000 m2 on a total land area of 121,000 m2. 7
Slide 8: … and U.K.
Investor Presentation … and U.K. In addition, Cembre has a production facility in the UK which operates on a 8,800 m2 land. This plant in Birmingham manufactures mainly for the local market. The sales generated in the UK are 13% of the 2017 consolidated turnover. Cembre Ltd. Factory in Curdworth Bir
Slide 9: An Integrated Business Partner…
Investor Presentation An Integrated Business Partner… The Group employs 710 employees worldwide. R&D Production Marketing/Sales/Distribution Administration/Services 24 415 198 73 Cembre has extensive know-how Sharp focus on customer needs in its operating field, and its strong and the efficient inte
Slide 10: Very Strong in Europe…
Investor Presentation Very Strong in Europe… Cembre is present all over the Italian territory through a network of salesmen and representatives who are able to offer fast and constant technical assistance. Abroad, it operates through 4 subsidiaries in Europe (UK, France, Spain, Germany) and 1 in the
Slide 11: Present All Around the World…
Investor Presentation Present All Around the World… Cembre has a network of importers and agents who provide technical and commercial assistance and rapid delivery all around the world… 11
Slide 12: Revenues breakdown by Product Family
Investor Presentation Revenues* breakdown by Product Family (€ ‘000) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Electrical Tools Railway Products Cable Markers Cable Glands Terminal Blocks Others Total connectors *Customers’ bonuses not included 45,562 25,540 27,474 24,115 10,092 2,639 2,789 138,21
Slide 13: Geographical Revenue Breakdown
Investor Presentation Geographical Revenue Breakdown Italy 2017 2016 Δ Sales 55.6 mn 49.0 mn 13.4% % in total 41.9% 40.0% 1.9 pp Europe (ex-IT) 2017 2016 Δ Sales 54.3 mn 51.5 mn 5.4% % in total 41.0% 42.0% -1.0 pp Rest of the World 2017 2016 Δ Sales 22.7 mn 22.1 mn 3.1% % in total 17.1% 18.0% -0.9 p
Slide 14: 17-Year Revenue Evolution
Investor Presentation 17-Year Revenue Evolution € Millions Economic Back to Growth Crisis 140 132,6 121,4 122,6 120 112,9 103,0 103,9 104,5 100 93,4 94,3 93,9 84,1 80 76,0 70,0 65,1 59,9 60 56,0 56,9 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 14
Slide 15: A Wide Product-Mix
Investor Presentation A Wide Product-Mix In order to maintain its leading position and increase the penetration of market, Cembre had sensibly enlarged the range of products offered through: •Research activities mainly focused on the development of innovative products for the sectors with the highes
Slide 16: Electrical Connectors: 6.2% increase in Sales
Investor Presentation Electrical Connectors: 6.2% increase in Sales Electrical Connectors: 2017 2016 Δ Total Sales 45.6 € mn 42.9 € mn 6.2% Sales in Italy (% share) 22.5 € mn (16.2%) 20.7 € mn (16.3%) 8.6% Sales in Europe ex-IT (% share) 19.3 € mn (13.9%) 18.3 € mn (14.5%) 5.1% Sales in RoW (% share
Slide 17: Tools: 0.7% increase in Sales
Investor Presentation Tools: 0.7% increase in Sales Tools: 2017 2016 Δ Total Sales 25.5 € mn 25.4 € mn 0.7% Sales in Italy (% share) 6.8 € mn (4.9%) 5.9 € mn (4.6%) 15.1% Sales in Europe ex-IT (% share) 10.2 € mn (7.4%) 9.7 € mn (7.6%) 6.0% Sales in RoW (% share) 8.5 € mn (6.2%) 9.8 € mn (7.8%) -13.
Slide 18: Railway Products: 11.0% increase in Sales
Investor Presentation Railway Products: 11.0% increase in Sales Railway Products: 2017 2016 Δ Total Sales 27.5 € mn 24.7 € mn 11.0% Sales in Italy (% share) 2.7 € mn (2.0%) 1.9 € mn (1.5%) 44.9% Sales in Europe ex-IT (% share) 16.7 € mn (12.1%) 16.1 € mn (12.7%) 4.0% Sales in RoW (% share) 8.0 € mn
Slide 19: Cable Markers: 20.8% increase in Sales
Investor Presentation Cable Markers: 20.8% increase in Sales Cable Markers: 2017 2016 Δ Total Sales 24.1 € mn 20.0 € mn 20.8% Sales in Italy (% share) 15.4 € mn (11.2%) 12.8 € mn (10.1%) 20.6% Sales in Europe ex-IT (% share) 7.0 € mn (5.1%) 6.1 € mn (4.8%) 15.9% Sales in RoW (% share) 1.7 € mn (1.2%
Slide 20: Cable Glands: 12.4% increase in Sales
Investor Presentation Cable Glands: 12.4% increase in Sales Cable Glands: 2017 2016 Δ Total Sales 10.1 € mn 9.0 € mn 12.4% Sales in Italy (% share) 8.6 € mn (6.2%) 7.5 € mn (6.0%) 13.9% Sales in Europe ex-IT (% share) 1.3 € mn (0.9%) 1.2 € mn (0.9%) 9.7% Sales in RoW (% share) 0.2 € mn (0.2%) 0.3 €
Slide 21: 2017 Consolidated Results
Investor Presentation 2017 Consolidated Results Euro Millions 2017 2016 Changes 2015 % Sales 132.6 122.6 8.2% 121.4 EBITDA 33.4 30.0 11.4% 28.5 In % of sales 25.2% 24.5% 23.5% EBIT 27.0 24.1 12.2% 22.8 In % of sales 20.4% 19.7% 18.8% EBT 26.6 24.1 10.5% 22.9 In % of sales 20.0% 19.6% 18.8% Net Profi
Slide 22: Group's Companies Turnover for year 2017
Investor Presentation Group’s Companies Turnover* for year 2017 Company 2017 2016 Changes 2015 (Euro thousands) % Cembre S.p.A. (Italy) 74,966 67,134 11.7% 65,725 Cembre Ltd. (UK) 17,468 18,143 -3.7% 19,710 Cembre S.a.r.l. (France) 9,502 8,976 5.9% 8,677 Cembre España S.L. (Spain) 9,549 7,979 19.7%
Slide 23: December 31, 2017 Consolidated Balance Sheet
Investor Presentation December 31, 2017 Consolidated Balance Sheet Euro Millions Dec. 31, 2017 Dec. 31, 2016 Dec. 31, 2015 a Net operating working capital 50.6 44.2 47.6 % of sales 38.1% 36.0% 39.2% b Net fixed assets 77.4 71.8 71.0 c Assets available for sales - - - d Severance indemnities 2.7 2.6
Slide 24: Cembre's Revenue and Profitability Trend
Investor Presentation Cembre’s Revenue and Profitability Trend (€ ‘000) 140.000 132.637 121.377 122.605 120.000 112.905 103.028 103.899 104.547 100.000 93.417 94.288 93.934 84.127 75.984 80.000 69.997 65.149 56.003 56.946 59.870 Revenues 60.000 40.000 20.000 0 2001 2002 2003 2004 2005 2006 2007 2008
Slide 25: Cembre's Revenue and Profitability Trend
Investor Presentation Cembre’s Revenue and Profitability Trend (€ ‘000) 28.000 27.036 55,0% 24.095 50,0% 24.000 22.836 45,0% 19.433 40,0% 20.000 18.420 17.379 17.291 35,0% 15.941 16.221 16.456 16.000 15.838 30,0% Ebit 11.023 10.581 25,0% 12.000 20,0% 7.656 19,7% 20,4% 8.000 6.932 6.271 6.364 18,9% 1
Slide 26: Index analysis
Investor Presentation Index analysis ROI (EBIT/Investments) ROACE (EBIT/Net Capital Employed) 25,00% 35,00% 29,45% 30,00% 19,67% 29,05% 20,00% 24,34% 16,60% 16,57% 16,18% 25,00% 23,13% 19,06% 23,39% 15,11% 15,09% 21,23% 22,23% 15,00% 21,49% 20,00% 14,15% 14,65% 16,85% 17,12% 20,61% 11,04% 13,75% 18,
Slide 27: Investments trend
Investor Presentation Investments trend 18.000 16.000 14.000 12.000 10.000 8.000 6.000 4.000 2.000 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Investments in tangible assets Investments in intangible assets Total investments € ‘000 2001 2002 2003 2004 2005
Slide 28: 2018 and onwards…
Investor Presentation 2018 and onwards… Cembre focused on these targets: Increase of turnover thanks to: •A strengthening of Cembre competitive advantage by developing new products and continuous product range renewing by an intense R&D activity, •A new product line for plumbing sector; •An higher p
Slide 29: 2018 and onwards…
Investor Presentation 2018 and onwards… •The construction of a new 4,800 m2 industrial building which is the new logistic center. This center include an automated warehouse with 16-metre-high shelves. The construction started in March 2012, and the new automatic warehouse is operative since January
Slide 30: Stock Data & Shareholding Structure
Investor Presentation Stock Data & Shareholding Structure Cembre FTSE Italia Star Shareholders: Share: data updated at March 21, 2018 LYSNE Spa 55.92% Sara Rosani 8.65% Giovanni Rosani 8.53% Anna Maria Onofri 0.71% Altri 26.19% Cembre has been listed since December 1997, and is a part of the Star In
Slide 31: Share price evolution
Presentazione agli analisti Share price evolution 30 Share price Share return 28 Total return 26 2001-2017 24 22 +15.8% 20 CAGR 18 Share price(€) 16 14 Performance 12 2001-2017 10 8 +14.7% CAGR 6 4 Total Return is the average ‘Share return’ 2 growth in the period 0 Performance is the average ‘Share
Slide 32: Contact
Contact Claudio Bornati: CFO and IR Via Serenissima 9, 25135 Brescia (BS) Italy Phone: ++39 030 36921 Email: [email protected] The manager responsible for preparing the Company’s financial reports, Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis of the Consolidated Law