Mutares SE & Co. KGaA · XETR:MUX
Mutares SE & Co. KGaA — Investor Day (October 2019)
21 slides from Mutares SE & Co. KGaA's investor day presentation, October 2019
Slide 1: Balcke Duerr | Value Creation Process
Balcke Duerr | Value Creation Process Mutares Capital Markets Day 2019
Slide 2: Agenda & presenter introduction
Agenda & presenter introduction 1 Company Profile 2 Product Portfolio 3 Value Creation 4 Key Messages 2
Slide 3: Company Overview
1 Company Overview 3
Slide 4: Balcke Duerr at a glance
Balcke Duerr at a glance Balcke Duerr is a leading supplier of components and services for increasing energy efficiency and reducing environmental impact ¬ Blue-chip customer base: Company rich in history and longstanding customer relations across relevant industries ¬ Diversified product applicatio
Slide 5: History
History Extensive history aids accumulation of technology 1883 Founding of "Düsseldorf-Ratinger Röhrenkesselfabrik Dürr & Co.“ 1894 Invention of the natural draft cooling tower and founding of Balcke & Co. 1972 Merger to form Balcke Duerr AG, part of Deutsche Babcock 2001 Merger of Babcock Borsig AG
Slide 6: Key Differentiators
Key Differentiators Technologically advanced products with impressive references ¬ World‘s largest Regenerative Heat Exchanger (Duisburg Walsum, Germany*) ¬ World‘s largest Moisture Separator Reheater (Olkiluoto, Finland)* and largest high-pressure Feedwater Heater (Neurath, Germany)* ¬ Engineering
Slide 7: Mutares' Investment Hypothesis
Mutares’ Investment Hypothesis Attractive Both Balcke Duerr as well as Rothemühle are global brands with Market Position a loyal blue-chip customer base Extensive Own Worldwide installed base generating sustainable and recurring Installed Base revenue streams Technological Strong engineering and tec
Slide 8: Product portfolio
2 Product portfolio 8
Slide 9: Balcke Duerr at a glance: Products & Services overview
Balcke Duerr at a glance: Products & Services overview Water- Steam- Cycle Decomissioning Flue- Gas- Path 9
Slide 10: Water- Steam- Cycle: Shift in product application
Water- Steam- Cycle: Shift in product application Products and Services Applications Customers ▪ Feedwater Heaters ▪ Turbine Condensers ▪ TEMA Heat Exchangers Nuclear Chemical ▪ Rotor Air Coolers ▪ Cold-End Systems ▪ Moisture Separator Reheaters ▪ POWERVANES Separators Oil Waste>Energy ▪ Waste Heat
Slide 11: Decommissioning: A future value driver
Decommissioning: A future value driver ▪ Decommissioning and dismantling of ▪ Radiation testing, protection and release nuclear installations ▪ Consulting, project management and ▪ Permit Management implementation 11
Slide 12: Flue- Gas- Path: Growth through modernization
Flue- Gas- Path: Growth through modernization Products and Services Applications Customers ▪ Air Preheaters ▪ Gas-Gas-Heaters ▪ LUGAT®-Compact Heat Exchangers Coal Oil ▪ DELTA WINGS ▪ Electrostatic Precipitators ▪ Filter Upgrades Refineries Waste>Energy Paper Biomass Gas Steel 12
Slide 13: Balcke Duerr at a glance: Delta Wings Deep Dive
Balcke Duerr at a glance: Delta Wings ® Deep Dive Proprietary technology Delta Wings ® allow for higher contractual performance commitment as competitors Improvements by Delta Wings ® Key applications Delta Wings ® Visible improvements Proven significant performance enhancement1) Conventional techno
Slide 14: Value Creation
3 Value Creation 14
Slide 15: Value Creation: What we found I/II
Value Creation: What we found I/II Situation of the company worse than anticipated Sales 2016 -8% ¬ Between submission of the binding offer and 151 139 actual closing of the transaction, the situation in the company has worsened significantly ¬ This was caused mainly by cost overruns in Investment m
Slide 16: Value Creation: What we found II/II
Value Creation: What we found II/II Distraction of sale process evident in order backlog Balcke Duerr Group P&L In EUR m 188 x Low order intake in 2016 142 139 x Extremely high cost structure x Subpar project management x No sales strategy visible x Inadequate agency network 10 Operating loss of EUR
Slide 17: Value Creation: Measures
Value Creation: Measures Heavy operational involvement in first 18 months of ownership Realignment Stabilization Grow 2017 2018 2019 Structure adapted Processes adjusted Organic growth ▪ Site consolidation ▪ Project management ▪ Re-enter chemical industry ▪ Headcount reduction ▪ SAP release upgrade
Slide 18: Value Creation: Impact
Value Creation: Impact Targeted cost saving almost reached Summary of measures Adj. In EUR m EBITDA 2018 4.6 4.9 2.7 ✓ Structural changes in organization 1.8 ✓ Extreme cost control in all entities ✓ Improved processes 15.8 ✓ Investment in energy efficiency Positive operative result in year two -20.0
Slide 19: Value Creation: Balcke Duerr in Numbers
Value Creation: Balcke Duerr in Numbers Implemented measures validated by the Business Revenue and adj. EBITDA In EUR m 4.2% 4.8% 2.8% 139 121 117 124 -10.6% 2016 2017 2018 2019F Adj. EBITDA % Rothemühle Balcke Duerr 19
Slide 20: Key Messages
Key Messages Mutares’ approach provided company with solid basis for successful future ¬ Favourable transaction terms: Part of the value creation process was in the terms negotiated with the seller ¬ Experienced team: A team of 5 Mutares managers was present from day one for the first 18 months, act
Slide 21: Disclaimer
Disclaimer This document has been prepared by Balcke Duerr and Mutares SE & Co. KGaA solely for the use in this presentation. The information contained in this document has not been independently verified. No representation or warranty - whether expressed or implied – is made as to, and no reliance