Nkt A/s · OMXCOP:NKT
Nkt A/s — Nilfisk — Investor Day (September 2015)
35 slides from Nkt A/s's investor day presentation, Sep 23, 2015
Slide 1: NKT Capital Markets Day 2015
NKT I Capital Markets Day 2015 23 September 2015 I 54
Slide 2: Introduction
NKT I Capital Markets Day 2015 23 September 2015 I 55 Introduction Jonas Persson President & Chief Executive Officer Tina Mayn Executive Vice President Global Marketing & Product Management
Slide 3: Nilfisk Group Management team
NKT I Capital Markets Day 2015 23 September 2015 I 56 Nilfisk Group Management team Jonas Persson Morten Johansen Anders Terkildsen Jeff Barna Lars Gjødsbøl Tina Mayn President & CEO EVP & CFO EVP EVP EVP EVP EMEA Sales & Service Americas Sales & Service Global Operations Global Marketin
Slide 4: Global leader in a fragmented industry
NKT I Capital Markets Day 2015 23 September 2015 I 57 Global leader in a fragmented industry Professional cleaning equipment industry Market shares, % 12 • Nilfisk is the global leader in the professional cleaning equipment industry Kärcher 12 • Four companies with >5% market share Tennant 8 • Indus
Slide 5: Nilfisk has a strong platform for growth
NKT I Capital Markets Day 2015 23 September 2015 I 58 Nilfisk has a strong platform for growth Nilfisk Organic growth 2012 2013 2014 2015 - Quarterly (Y/Y) 4% 1% -4% 1% 1% 4% 7% 1% 9% 4% 0% 9% -2% 0% - Annually 0% 3% 6% -1% (H1) Americas (24%) EMEA (65%) APAC (11%) H1 2015 -4% H1 2015 2% H1 2015 -11
Slide 6: Stable level of operational EBITDA
NKT I Capital Markets Day 2015 23 September 2015 I 59 Stable level of operational EBITDA Short-term margin dilution from investments in front-end Nilfisk - Operational EBITDA DKKm 11.7% 11.9% 11.7% 12.0% 11.7% 11.9% 10.9% 12.1% 11.7% 250 14% 11.9% 11.8% 11.8% 11.7% 11.1% 13% 200 Operational EBITDA o
Slide 7: Products and channel access are key competitive advantages
NKT I Capital Markets Day 2015 23 September 2015 I 60 Products and channel access are key competitive advantages • Widest product range in the industry Products • Known for high-quality products • Launching +30 new products every year • Sales companies in 45 countries Channel access • More than 1,00
Slide 8: Floorcare and vacuums are strongholds in the industry's widest product range
NKT I Capital Markets Day 2015 23 September 2015 I 61 Floorcare and vacuums are strongholds in the industry's widest product range Floorcare equipment Vacuum cleaners High-pressure washers Service • Scrubbers and sweepers • Commercial • Professional • Service and • Outdoor • Industrial • Consumer ma
Slide 9: Strong customer focus
NKT I Capital Markets Day 2015 23 September 2015 I 62 Strong customer focus Example: Amy's Bakery chain in New York Note: Video cannot be shared publicly, therefore no link is available
Slide 10: Nilfisk's key value propositions match different customer needs
NKT I Capital Markets Day 2015 23 September 2015 I 63 Nilfisk's key value propositions match different customer needs Customer archetypes Example Product needs Key Nilfisk value proposition • TCO Large commercial • Reliability • Full-range supplier DIY reseller • Full-range supplier (Home improvemen
Slide 11: Asset-light production setup through assembly-only
NKT I Capital Markets Day 2015 23 September 2015 I 64 Asset-light production setup through assembly-only Hungary (2 sites) ~30% of global production US ~10% of global production China (2 sites) Mexico ~30% of global production ~10% of global production Italy (2 sites) ~10% of global production Note:
Slide 12: Solution selling and market access are essential competitive elements
NKT I Capital Markets Day 2015 23 September 2015 I 65 Solution selling and market access are essential competitive elements Industry trends How we respond • Commoditisation • Solution selling • Need for basic products • Pressure on production cost and specs • Pressure on cleaning costs • "Total cost
Slide 13: 'Accelerate' strategy to consolidate leading position
NKT I Capital Markets Day 2015 23 September 2015 I 66 'Accelerate' strategy to consolidate leading position Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain performance Agile and commercial o
Slide 14: 'Accelerate' strategic targets
NKT I Capital Markets Day 2015 23 September 2015 I 67 'Accelerate' strategic targets Nilfisk Financial aspirations For the strategy period 2015-18, financial Organic growth 2-3% above GDP targets were defined within market growth and RoCE RoCE % 18-19% Nilfisk expects organic growth of 2-3% above GD
Slide 15: Growth targets defined as 2-3% above GDP growth
NKT I Capital Markets Day 2015 23 September 2015 I 68 Growth targets defined as 2-3% above GDP growth Nilfisk, Historical annual growth Nilfisk, Expected annual growth Growth 2007-2014, %, Growth target 2015-2018, % 2-3% 6-8% • Nilfisk's annual total growth has historically been around 2-3% 3% 1.9%
Slide 16: Asset-light operating model makes it attractive to grow
NKT I Capital Markets Day 2015 23 September 2015 I 69 Asset-light operating model makes it attractive to grow Operational leverage, illustrative RoCE Leverage, % of revenue RoCE, % 100 59 ~20 1-2 • Due to operational 18-19 leverage, ~34% of marginal revenue impact the bottom-line • Acquisitions are
Slide 17: Increased focus on mid-market segment will support growth
NKT I Capital Markets Day 2015 23 September 2015 I 70 Increased focus on mid-market segment will support growth Market value Customer Nilfisk's 'Accelerate' DKKbn1 demands historical position strategy 22-27 • High reliability and long • Strong • Strengthen High-end (~45%) durability • Key focus posi
Slide 18: Strong M&A focus to consolidate market position
NKT I Capital Markets Day 2015 23 September 2015 I 71 Strong M&A focus to consolidate market position Actively consolidating the industry, recent acquisitions: Three focus areas • Kerrick (AUS/NZ) July 2015 • Market access through Broad-ranged dealer/service dealers and service company, 50 employees
Slide 19: Strengthen front-end
NKT I Capital Markets Day 2015 23 September 2015 I 72 'Accelerate' strategy Strengthen front-end initiatives continue and positive impact already visible Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands s
Slide 20: Strengthen front-end: improved sales models and new tools
NKT I Capital Markets Day 2015 23 September 2015 I 73 Strengthen front-end Improved sales models and introduction of new tools SALES MODELS DIRECT SALES INDIRECT SALES Focus on high-potential opportunities and Attractive dealer collaboration models full-share of wallet TOOLS INCENTIVES SYSTEMS & CRM
Slide 21: Three key commercial levers driving performance improvements in Germany
NKT I Capital Markets Day 2015 23 September 2015 I 74 Strengthen front-end Three key commercial levers are driving performance improvements in Germany CUSTOMER CROSS-SELLING SERVICE PRIORITISATION OPPORTUNITIES PENETRATION Growth from new, high-priority customers Cross-selling leads generated each m
Slide 22: Commercial Excellence now covers more than 50% of revenues
NKT I Capital Markets Day 2015 23 September 2015 I 75 Strengthen front-end Commercial Excellence now covers more than 50% of revenues Already implemented Full-scale roll-out Ongoing implementation Full-scale roll-out Planned Light-scale roll-out
Slide 23: Drive competitive offerings
NKT I Capital Markets Day 2015 23 September 2015 I 76 'Accelerate' strategy Drive competitive offerings will simplify and empower offering Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain per
Slide 24: Focusing our product offering
NKT I Capital Markets Day 2015 23 September 2015 I 77 Drive competitive offerings Focusing our product offering Objective Product Complexity Drive customer-led and innovative approach to portfolio management product development Focus Support our growth agenda with market-leading products, innovation
Slide 25: Key product launches
NKT I Capital Markets Day 2015 23 September 2015 I 78 Drive competitive offerings Key product launches Key 2014 launches Key launches YTD 2015 VL200 SC2000 Wet and dry vac Smart Micro-rider scrubber window vac MC3/4 High-end HPW Professional Viper AS430/510 Mid-market scrubber SC500 Walk-behind scru
Slide 26: Product portfolio
NKT I Capital Markets Day 2015 23 September 2015 I 79 Drive competitive offerings Product portfolio Nilfisk brand 'Accelerate' and position strategy Customer focus Nilfisk response • Strengthen • TCO • Innovation/fleet mgmt. & position • Solution supplier Rentals • Service • 360° service offerings S
Slide 27: Complexity management
NKT I Capital Markets Day 2015 23 September 2015 I 80 Drive competitive offerings Complexity management Brands Product platforms Ranging/portfolio Websites Product platforms • Branded business focus -45% -15% Nilfisk today • Portfolio optimisation • Platform roadmap • Key strength is wide Before Now
Slide 28: Build strong brands
NKT I Capital Markets Day 2015 23 September 2015 I 81 'Accelerate' strategy Build strong brands will create fewer but stronger brands Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain performa
Slide 29: Nilfisk corporate movie - already started brand journey
NKT I Capital Markets Day 2015 23 September 2015 I 82 Build strong brands Nilfisk corporate movie - already started brand journey For link to the video, click: https://www.youtube.com/watch?v=2dAighJLs20&feature=youtu.be
Slide 30: Nilfisk approaches markets with strong, individual value propositions
NKT I Capital Markets Day 2015 23 September 2015 I 83 Build strong brands Nilfisk approaches markets with strong, individual value propositions Clearing the way Clearing the way for a safer, cleaner and more with simple, reliable and powerful productive everyday cleaning products
Slide 31: Why Nilfisk - Municipality customer
NKT I Capital Markets Day 2015 23 September 2015 I 84 Build strong brands “Why Nilfisk” Municipality customer
Slide 32: Build strong brands: three key focus areas
NKT I Capital Markets Day 2015 23 September 2015 I 85 Build strong brands Three key focus areas Great communication Increase digital focus Execution power Increase the relevance and quality Increase relevance and reach by Increase reach, impact and of external communication to moving focus from o
Slide 33: Power supply chain performance
NKT I Capital Markets Day 2015 23 September 2015 I 86 'Accelerate' strategy Power supply chain will make supply chain a competitive advantage Accelerate Growing our company to lead the industry Grow market share Strengthen Drive competitive Build strong Power front-end offerings brands supply chain
Slide 34: Enhancing customer experience through fast and seamless delivery
NKT I Capital Markets Day 2015 23 September 2015 I 87 Power supply chain performance Enhancing customer experience through fast and seamless delivery Supply chain vision 3 steps to enable vision Specific supply chain initiatives 1• Centrally located European Enable full warehouse customer • 2 days c
Slide 35: Key messages
NKT I Capital Markets Day 2015 23 September 2015 I 88 Key messages Growth to consolidate market-leading position • Market leader with strong market access and brands • 'Accelerate' strategy to drive ambitious growth target • Consolidate position through M&A • Efficient operational model through asse