Jenoptik Ag · XETR:JEN
Jenoptik — Investor Presentation (August 2018)
35 slides from Jenoptik's investor presentation, August 2018
Slide 1: Investor Relations Presentation
INVESTOR RELATIONS PRESENTATION August 2018 © Copyright Jenoptik. All rights reserved
Slide 2: Jenoptik Group
Jenoptik Group 1 Financial statements H1 2018 2 Strategy and outlook 3 Appendix © 2018 JENOPTIK AG, All rights reserved. 2
Slide 3: Jenoptik – at a glance
Jenoptik – at a glance A leading player in attractive photonic sectors Jenoptik today: A customer-oriented and international partner for high-end optics and optoelectronics Leading market positions on a global scale Present in more than 80 countries worldwide Facts and figures: Founded 1991
Slide 4: Major events in the 1st half-year 2018
Major events in the 1st half-year 2018 Acquisition of Prodomax Automation Ltd., Canada Revenue and earnings guidance raised Substantial investments in expansion of our locations Revenue of 384.7 million euros H +10.4% EBITDA of 56.3 million euros 1 +31.4% © 2018 JENOPTIK AG, All rights
Slide 5: Acquisition of Prodomax Automation Ltd. in July 2018
Acquisition of Prodomax Automation Ltd. in July 2018 Largest acquisition in recent years Prodomax Automation Ltd. ▪ Company focuses on machine integration and process automation in the automotive industry ▪ Approx. 180 employees, headquartered in Barrie, Ontario, Canada ▪ Revenue in fiscal year
Slide 6: Strong tailwind from the markets led to substantial rise in revenue
Strong tailwind from the markets led to substantial rise in revenue Revenue in million euros 500 + 10.4% 400 384.7 348.4 300 200 221.1 184.7 189.9 194.8 178.4 163.7 100 0 Q1/17 Q2/17 H1/17 Q3/17 Q4/17 Q1/18 Q2/18 H1/18 Revenue grew as expected, highest revenue in a 1st half-year Growth in all th
Slide 7: Foreign revenue came to about 67 percent; strong growth in Germany
Foreign revenue came to about 67 percent; Strong growth in particular in Germany EUROPE + 21.5% GERMANY 241.2 + 27.4% 198.5 125.5 98.6 AMERICAS + 0.8% 81.8 82.5 ASIA / PACIFIC AFRICA / - 17.5% MIDDLE EAST 53.3 44.0 + 15.3% 14.8 17.0 © 2018 JENOPTIK AG, All rights reserved. 7
Slide 8: Earnings showed disproportionate improvement; significant increase in margins
Earnings showed disproportionate improvement; significant increase in margins EBITDA in million euros 80 + 31.4% 60 EBITDA showed stronger increase 56.3 than revenue 40 42.8 All three segments with higher 30.3 33.8 earnings contribution 20 25.0 27.7 28.5 17.8 EBITDA margin 14.6% (prior year 12
Slide 9: Successful business development is also reflected in marked EPS improvement
Successful business development is also reflected in marked EPS improvement Revenue 384.7 348.4 Gross margin at good prior year level Gross margin 35.2% 35.3% Increase in R+D and selling expenses; administrative expenses Functional costs 92.7 90.8 reduced Financial result improved, in part due
Slide 10: Positive catch-up effects in order intake already in Q2
Positive catch-up effects in order intake already in Q2; on a cumulated basis slightly below prior year Order intake in million euros Order backlog in million euros 500 500 2.0% 453.5 454.7 400 400 405.3 397.2 300 300 200 200 100 100 0 0 H1/2017 H1/2018 Dec 31, 2017 Jun 30, 2018 Better developme
Slide 11: Free cash flow increased – good basis for future investments
Free cash flow increased – good basis for future investments In million euros H1/2018 H1/2017 Operating profit before 55.1 43.5 Working capital grew to 227.1 million adjusting working capital euros (31.12.17: 214.8m euros / 30.6.17: 212.8m euros), in particular due to Changes in working capital hi
Slide 12: Optics & Life Science segment
Optics & Life Science segment: continuing high demand was driving growth and profitability Revenue in million euros EBITDA in million euros Order intake in million euros 200 + 11.7% 40 + 22.4% 200 + 5.7% +17,1% 160 32 160 32.4 157.5 139.5 149.1 120 24 26.5 120 124.9 80 16 80 40 8 40 0 0 0 H1/2017 H1
Slide 13: Mobility segment
Mobility segment: as expected, delivery of toll monitoring systems resulted in significant improvement Revenue in million euros EBITDA in million euros Order intake in million euros 200 20 200 + 17.6% + 155.8% 2.9% 160 16 160 16.1 138.5 144.4 140.2 120 12 120 117.8 80 8 80 6.3 40 40 4 0 0 0 H1/201
Slide 14: Defense & Civil Systems segment
Defense & Civil Systems segment: slight rise in revenue and earnings; order intake improved in Q2 Revenue in million euros EBITDA in million euros Order intake in million euros 150 15 150 + 2.7% + 3.0% 10.2% 120 12 120 11.3 11.7 105.4 108.2 111.8 90 9 90 100.4 60 6 60 30 3 30 0 0 0 H1/2017 H1/2018
Slide 15: Jenoptik Group – Strategy and outlook
Jenoptik Group 1 Financial Statements Q1 2018 2 Strategy and outlook 3 Appendix © 2018 JENOPTIK AG, All rights reserved. 15
Slide 16: Transforming Jenoptik into a Focused Technology Group
Transforming Jenoptik into a Focused Technology Group Focused Technology Group Diversified Industrial Conglomerate 2017 2007 Steering Jenoptik through difficult times Strategy 2022 Managing the 2008 financial crisis MORE FOCUS Building a global infrastructure MORE INNOVATION Net debt reduc
Slide 17: Photonics – The Mastery of Light
Transforming Jenoptik into a Focused Technology Group Photonics – The Mastery of LIGHT an enabling technology, influencing almost all areas of our society is a global marketplace of ~ 600 bn euros, growing 2x global GDP on average is at the Heart of Jenoptik We will intensify our focus on phot
Slide 18: Attractive photonic applications at the core of Jenoptik
Attractive photonic applications at the core of Jenoptik World market 22 bn in Photonics: Jenoptik will focus on: € 54 bn € 36 bn ~ € 600 bn, Information processing CAGR of ~5-6% (i.e. semiconductor equipment € 31 bn manufacturing and communication) Photonic Biophotonics € 27 bn components Σ 120
Slide 19: Stepping-up our R+D work
Transforming Jenoptik into a Focused Technology Group Stepping-up our R+D work Enhancing our application know-how and expertise by establishing application centers in all major geographies Higher level of R+D: By 2022 we will spend ~10% of revenue on innovation and product development We will nu
Slide 20: Building a truly global enterprise
Transforming Jenoptik into a Focused Technology Group Building a truly global enterprise Expanding our business in Asia, with particular focus on China Local R&D teams in all major markets and production facilities in all regions At least one of our divisions will have its headquarters outside
Slide 21: Strategy 2022: Three building blocks for growth
Transforming Jenoptik into a focused technology group Strategy 2022: Three building blocks for growth and margin expansion We leverage our core We step-up our R+D work We build a truly global competencies enterprise in Optics & Photonics © 2018 JENOPTIK AG, All rights reserved. 21
Slide 22: Our new structure starting 2019: Focused Divisions and Technology Synergies
Our new structure starting 2019: Focused Divisions and Technology Synergies …………….………….……………. Photonic ……….…………………………. …….. Mechatronic……. Division LIGHT & OPTICS LIGHT & PRODUCTION LIGHT & SAFETY “New-DCS” OEM-Business B2B-Business B2G-Business A member of Jenoptik Group Design & Manufacturing
Slide 23: Our priorities for 2018
Our priorities for 2018 We launch a new brand for our mechatronic business We establish a new business structure We reorganize our business in Asia © 2018 JENOPTIK AG, All rights reserved. 23
Slide 24: Higher earnings expected for 2018; increased revenue guidance confirmed
Higher earnings expected for 2018; increased revenue guidance confirmed New financial guidance for 2018* – following the acquisition of Prodomax and a better than originally anticipated profitability in the ongoing businesses We expect revenue to be in a range between 805 and 820 million euros (pr
Slide 25: Our mid-term guidance by 2022
Our mid-term guidance by 2022 Group 5-year targets: accelerated growth and margin expansion Revenue growth We expect mid- to high-single digit revenue growth (CAGR). By 2022, we expect to achieve Margin increase an EBITDA margin for the Group of around 16 percent. © 2018 JENOPTIK AG, All rights rese
Slide 26: Jenoptik – Investment highlights
JENOPTIK – Investment highlights We are We aretaking taking thethe next next stepstep of development of development – – 1 We will intensify our focus on photonic technologies and manage our portfolio more actively. transforming transformingJenoptik Jenoptikintointo a focused technology a focused gro
Slide 27: Jenoptik Group – Appendix
Jenoptik Group 1 Financial Statements H1 2018 2 Strategy and outlook 3 Appendix © 2018 JENOPTIK AG, All rights reserved. 27
Slide 28: Profitable business model with operating leverage
Profitable business model with operating leverage Segments Optics & Life Science Mobility Defense & Civil Systems Optical Healthcare Automotive Traffic Defense & Civil Systems Systems & Industry Solutions Divisions Rising revenue with attractive Globally growing demand Major orders secure stab
Slide 29: Optical Systems Division
Leading global provider of value-added optical and micro-optical systems Optical Systems Division High-end optical and micro-optical systems and precision components Areas of application Primary markets Semiconductor equipment: Optical and micro-optical systems for lithography and inspection app
Slide 30: Healthcare & Industry Division
High-tech equipment and products for better quality of life Healthcare & Industry Division Development of system solutions and products based on beam sources that use lasers and LEDs, precision optics, digital imaging and innovative software solutions Areas of application: Medicine / life science:
Slide 31: Automotive Division
Leading global provider of value-added optical and micro-optical systems Automotive Division Laser Processing One of the world’s leading manufacturers of laser machines and laser systems for material processing Perforation of predetermined breaking points for airbag covers; global No.1 for las
Slide 32: Traffic Solutions Division
State-of-the-art systems allow to improve road traffic safety Traffic Solutions Division The world's widest range of sensor technologies: lasers, radar, piezo sensors, induction loops Supplier for whole process chain of traffic law enforcement More than 30,000 installed systems in over 80 coun
Slide 33: Defense & Civil Systems Division
Long-term stable, profitable and cash-generating business Defense & Civil Systems Division Products in the field of defense and security technology are used to generate and manage energy, move, stabilize and perform reconnaissance as well to measure and protect High-quality standard products and
Slide 34: Dates and contact
Dates and contact August 9, 2018 Results of 1st half-year 2018, conference call August 10, 2018 Analysts‘ meeting and roadshow Frankfurt/Main August 16, 2018 Roadshow Hamburg August 20/21, 2018 Roadshow USA August 30, 2018 Commerzbank Sector Conference, Frankfurt/Main September 13/14, 2018 Roadshow
Slide 35: Disclaimer
Disclaimer This presentation can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the