Komax Holding AG · SIX:KOMN
Komax — FY2014 Earnings Presentation
20 slides from Komax's earnings presentation, Mar 24, 2015
Slide 1: Results 2014 and Outlook 2015
Results 2014 and Outlook 2015 24 March 2015 24 March 2015 / Results 2014 and Outlook 2015 / 1 Agenda Results 2014 Operational performance Financial performance Focus and Outlook 2015 Discussion 24 March 2015 / Results 2014 and Outlook 2015 / 2
Slide 2: 2014 in brief / Key figures
2014 in brief Profitable growth Revenues increased by 12.2% to CHF 363.3 million, internal growth of 9.5% Operating profit (EBIT) increased to CHF 48.1 million (+11.1%) Strong balance sheet (equity ratio of 73.2%) Distribution increased to CHF 5.00 per share (2013: CHF 4.50) Komax Wire Trend in wire
Slide 3: Distribution of net sales by segment, region and industry
Distribution of net sales by segment, region and industry 1 2012 2013 2014 by sements Komax Wire 79% 79% 81% Komax Medtech 18% 21% 19% Komax Solar 3% n.s. n.s. k.A. by region Switzerland 2% 2% 3% Europe 40% 47% 46% Africa 9% 7% 9% North/South America 29% 24% 19% Asia 20% 20% 23% by industry Automoti
Slide 4: Komax Wire – strong performance
Komax Wire – strong performance EBIT margin Net sales by region 40 0 18.6% 18.7% 24% 35 0 Asia 2% 295.0 Switzerland 30 0 256.2 in CHF million 25 0 Net sales EBIT 20% 20 0 North/ South America 15 0 43% Europe 10 0 47.6 55.3 11% 50 0 Africa 1 2013 2014 Change from previous year -40% -20% 0% 20% 40% 60
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 Increasing number of vehicules produced – CAGR 2014 – 2020E: ~2.5% + CAGR of around 3% Trends such as: • Environmental awareness/climate change • Connected car • Safety • Affordable car Number of wires from vehicle production CAGR of aro
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… 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 Relative competitive posi
Slide 7: Market position continuously strengthened through acquisitions
Market position continuously strengthened through acquisitions Strategic priorities of Komax Wire Company Products/solutions • Harness test systems TSK Group Growth along the value chain • Module test systems • Entry-segment machines MCM Cosmic and coaxial cable Innovation processing applications •
Slide 8: Komax Medtech – a structured approach from concept to high volume production
Komax Medtech – a structured approach from the concept to high volume production One of the leading players in its niche markets Focus on self-medication and on projects providing repeat potential Restructuring of La Chaux-de-Fonds site initiated 24 March 2015 / Results 2014 and Outlook 2015 / 15 Ag
Slide 9: Management buyout Komax Solar – Impact on financial statements
Management buyout Komax Solar – Impact on financial statements according to IFRS 5 Consolidated Consolidated Consolidated balance sheet income statement cash flow statement No restatement of Restatement of No restatement of prior-year figures prior-year figures prior-year figures Disclosure accordin
Slide 10: Volume-related increase in EBIT – gross profit remains high
Volume-related increase in EBIT – gross profit remains high in CHF million 23.6 -14.8 -0.2 -3.8 48.1 43.3 Gross profit margin Personnel expenses R&D expenses 2014: 60.6% in % of revenues in % of revenues 2014: 32.6% 2014: 7.1% Personnel expenses R&D expenses Gross profit margin in % of revenues in %
Slide 11: Free cash flow remains high – despite increased investments
Free cash flow remains high – despite increased investments in CHF million 15.8 27.7 -13.2 -15.9 -13.9 Free cash flow CHF 14.4 million (2013: CHF 24.5 million) 52.2 52.7 Good business in Q4 Cash Group profit Depreciation Change in NWC Capex Financing Cash 1 January 2014 and others 31 December 2014 O
Slide 12: Currencies weigh on Net sales, gross profit and EBIT
Currencies weigh on Net sales, gross profit and EBIT Currency impact Net sales by currencies • Net sales –1.7% 6% Others • Gross profit –1.1pp 30% • EBIT margin –0.8pp CHF Increasing importance of other currencies (BRL, 33% MAD, MYR, SGD). As in the previous year, the EUR BRL in particular was negat
Slide 13: Group profit after taxes (EAT)
Group profit after taxes (EAT) EAT increased by 10.4% to CHF 27.7 million Basic earnings per share CHF 7.64 (2013: CHF 7.33) Tax rate in % of EBT Tax rate decreased to 6.8% • Healthy business development in Switzerland 13.0 7.7 6.8 • A number of capitalized tax-loss carryforwards in countries with s
Slide 14: Additional CHF 99.9 million of unutilized credit lines
Additional CHF 99.9 million of unutilized credit lines Syndicated loan CHF 120 million Average interest rate in % Additional credit lines to a maximum of CHF 15 million (on top of the syndicated loan) 1.29 Financial liabilities reduced by CHF 4.0 million and 0.82 0.82 financial loans by CHF 1.9 mill
Slide 15: Attractive profitability of capital employed
Attractive profitability of capital employed RONCE reached 23.4% Share price development from 2010 to 12 January 2015 • Healthy margin at Komax Wire • Efficient use of capital Payout of CHF 5.00 per share proposed • Thereof CHF 2.50 as dividend and CHF 2.50 as distribution from capital contribution
Slide 16: Strategy geared to long-term profitable growth
Strategy geared to long-term profitable growth Business Unit Revenues growth target EBIT margin target Acquisitions Business Unit Wire 3 to 5% ~20% selective Business Unit Medtech -- ~5% -- As part of the annual strategy process now getting underway, all possible options are being examined for the K
Slide 17: FX impact and measures / Outlook Komax Group
FX impact and measures Impact of an increase/decrease in the average exchange rate of the Euro of +/–10% on 2014 results (ceteris paribus): Increase/decrease in revenues of around +/– 3% Increase/decrease in EBIT margin of around 0.6pp Impact of an increase/decrease in the average exchange rate of t
Slide 18: Outlook Komax Wire / Outlook Komax Medtech
Outlook Komax Wire Supported by the momentum of the automotive industry, the ongoing global trend towards automation of production processes, and the increased quality demands that original equipment manufacturers are making of their suppliers, end demand should continue to be strong from today's pe
Slide 19: Contact/Financial calendar
Agenda Results 2014 Operational performance Financial performance Focus and Outlook 2015 Discussion 24 March 2015 / Results 2014 and Outlook 2015 / 37 Contact/Financial calendar Contact Financial calendar Marco Knuchel Annual General Meeting 8 May 2015 Industriestrasse 6 Dividend payment 15 May 2015
Slide 20: Disclaimer
Disclaimer 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 the economic and l