Kendrion N.v. · EURONEXT:KENDR
Kendrion — H1 2012 Earnings Presentation
19 slides from Kendrion's earnings presentation, Aug 23, 2012
Slide 1: Interim results 2012 - Analysts' meeting
13-12-2012 Interim results 2012 Analysts' meeting Thursday 23 August 2012 Agenda 1. Kendrion at a glance 2. Highlights for the first six months of 2012 3. Key figures and financial objectives 4. Review of the business units 5. Financial position 6. ERP project HORIZON 7. Priorities and outlook 2 1
Slide 2: Kendrion at a glance
13-12-2012 1. Kendrion at a glance 3 The Kendrion organisation KENDRION N.V. Development, production and marketing of high-quality electromagnetic components 1,800 employees (including 200 temps) in 13 countries Revenue: approximately EUR 300 million Listed company on NYSE Euronext's Amsterd
Slide 3: Kendrion breakdown of revenue first six months of 2012
13-12-2012 Organisation – Kendrion breakdown of revenue first six months of 2012 Industrial Magnetic Systems Passenger Car Systems PCS • Machine building • Automotive applications IDS • Safety engineering • Hydraulic applications • Transportation industry • Medical engineering • Power engineering •
Slide 4: Kendrion committed to being a high-performer in selected business units
13-12-2012 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives Spearheads - Niche market leadership - Organic growth in the current operations To develop business units that Organic growth > 10% - Utilisation of synergy in and have strong international
Slide 5: Financial objectives
13-12-2012 Financial objectives Target Organic growth >10% per year ROS >10% ROI >17.5% Solvency ≥ 35% Interest-bearing debt/EBITDA <3.00 Free cash flow Healthy Dividend 35-50% of net profit 9 Concrete issues to fulfil our strategic spearheads (1) - Alert response to market developments in all key m
Slide 6: Concrete issues to fulfil our strategic spearheads (2)
13-12-2012 Concrete issues to fulfil our strategic spearheads (2) - Targeted acquisitions - In the USA and China (markets, customers) - Niche players in Germany (technological know-how) - Enhancement of innovative capacity - Continuous new initiatives and ideas - Innovation cells - IP strategy 11 2.
Slide 7: Highlights for the first six months of 2012
13-12-2012 Highlights for the first six months of 2012 (1) - After good 1st quarter, a 3% decline in revenue in the 2nd quarter, for which the business unit Industrial Magnetic Systems was most responsible (-15%) - No new projects in PCS this year (crisis year 2009 limited opportunities) - In 2012 l
Slide 8: Revenue development per region
13-12-2012 Revenue development per region (x EUR 1 million) June 2012 share 2011 share Germany 75 49% 148 55% Rest of Europe 33 22% 65 24% Americas 26 17% 20 8% Asia 17 11% 32 12% Other 2 1% 3 1% Total 151 268 15 3. Key figures and financial objectives 16 8
Slide 9: Key figures for the first six months of 2012
13-12-2012 Key figures for the first six months of 2012 (x EUR 1 million unless otherw ise stated) Q2 2012 Q2 2011 Difference in % Revenue 74.0 67.9 9% EBITA 6.9 8.1 -15% Net profit 4.1 5.4 -24% EBITA margin 9.3% 11.9% EBITDA margin 12.8% 15.3% (x EUR 1 million unless otherw ise stated) HJ1 2012 HJ1
Slide 10: Review of the business units: Industrial Magnetic Systems
13-12-2012 4a. Review of the business units 19 General - Operations: electromagnetic components and systems for industrial applications - Focus markets: machine building, locking and safety, energy sector and medical sector - Highly innovative, customised solutions - Global player with operations in
Slide 11: First six months of 2012 (IMS)
13-12-2012 First six months of 2012 (1) - Difficult market circumstances in 2nd quarter in Germany and the USA - Strong reduction of volume at two customers - Strong reduction of customer demand (high number of smaller customers) - Total revenue top 10 customers HY1 2012 stable in comparison with HY
Slide 12: Review of the business units: Industrial Drive Systems
13-12-2012 4b. Review of the business units 23 General - Operations: electromagnetic brake and clutch systems for industrial drive technology - Two production sites in Germany; international service coordinated through UK sales office - Global market leader in permanent magnetic brake systems - Appr
Slide 13: First six months of 2012 (IDS)
13-12-2012 First six months of 2012 - Revenue growth 12% (of which 5% due to price compensation permanent magnets) - Strong organic growth in permanent magnet brakes - Growth especially at top 10 customers, smaller customers show decline in revenue - Strong focus on market introduction of spring app
Slide 14: Review of the business units: Passenger Car Systems
13-12-2012 General - Operations: electromagnetic components and systems for the automotive industry - Production sites in Germany, Austria, the Czech Republic, Romania, China and the USA - Serves European Original Equipment Manufacturers; Daimler, Volkswagen (incl. Audi), and first tier suppliers (C
Slide 15: Review of the business units: Commercial Vehicle Systems
13-12-2012 4d. Review of the business units 29 General - Operations: components and total cooling systems for buses, trucks, special vehicles and generators - Global market leader in electromagnetic cooling systems for luxury coaches - Many customers worldwide - Sites in Germany, USA, Mexico, Brazil
Slide 16: First six months of 2012 (CVS)
13-12-2012 First six months of 2012 - Organic growth 4% by India - Kendrion Linnig India lower as expected, no operating result, pressures EBITA margin - Good revenue growth in bus market China again - Currently active in the US truck market, Brasil and India, Brasil truck sales down - Kendrion sees
Slide 17: Financial position
13-12-2012 Financial position - Free cash flow under pressure in HY1 2012 due to high investments, increased working capital, particularly due to year-end effect positive free cash flow expected for 2012 - Strong balance sheet (net debt 30 June 2012 EUR 35 million, solvency 40%) - Approximately EU
Slide 18: ERP project HORIZON
13-12-2012 ERP project HORIZON - Investment between EUR 5.5 and EUR 6.0 million - PCS Villingen (Germany), India and HRM Villingen/Markdorf (Germany) live in 2011 - Atlanta (USA) live in April 2012 - 2012 focus on industrial companies, IDS Villingen will Go-Live as per 1 October 2012 - Investments a
Slide 19: Outlook - We magnetise the world!
13-12-2012 Outlook - Growth slowdown in 2nd quarter 2012 - Uncertainty economic developments (Eurozone, China and the USA) - Planned margin pressure PCS continues in HY2 2012 - Expectation 2012: 15 - 20% lower net profit in comparison with the normalised net profit 2011 (EUR 20.5 million) - Confiden