KENDRION N.V. Small & Mid Cap Seminar SNS Securities. 13 February Power of Partnership. Page 1

Transcription

1 KENDRION N.V. Small & Mid Cap Seminar SNS Securities 13 February 2008 Page 1

2 Agenda 13 February Kendrion at a glance 2. Most important developments Acquisition Linnig Antriebstechnik 4. Disposal Automotive Metals 5. Key figures 1st nine months Our divisions 7. Financial position 8. Dividend policy Page 2

3 1. Kendrion at a glance

4 Kendrion: Niche player in B2B markets Kendrion N.V. Division Kendrion Electromagnetic Turnover approximately EUR 200 million Active in 10 countries About 1,300 employees Division Kendrion Distribution Services Turnover approximately EUR 350 million Active in 13 countries About 1,100 employees Page 4

5 Kendrion aims to be high performer in selected business areas Mission Strategy Objectives Developing business areas with strong international market positions in selected business-to-business niche markets, whereever possible as market leader Build niche market leader positions in business-tobusiness markets Create operational and commercial synergies between companies in each business area. Drive efficiency improvement of operations Organic Growth > 5% ROI > 20% More and more focused company Page 5

6 2. Most important developments 2007

7 Most important developments so far Improved focus according to strategy Focused acceleration Acquisition of Linnig Antriebstechnik Disposal of Automotive Metals New finance arrangement Publication results 2007 on 26 February 2008 Page 7

8 Focused Acceleration Kendrion in 2008 Real niche player Market leader Clear focus Strong balance ROI target > 20% Page 8

9 3. Acquisition Linnig Antriebstechnik

10 Facts Linnig Antriebstechnik Facts and figures: - Turnover 40 Mill. Euro - 5 Companies Employees - 5 Countries Production in: - Germany 160 Employees - USA 15 Employees - China 10 Employees - Mexico 15 Employees - Brasil 10 Employees Page 10

11 Facts Linnig Antriebstechnik Linnig products - Angle gear fan drive - Fan bracket - Torsional vibration damper - Deflection pulley - Compressor clutch Page 11

12 4. Disposal Automotive Metals

13 Facts Turnover approximately EUR 110 million Sold to Swedish investors with management participation Revenue EUR 35 million Book loss EUR 10 million including write off goodwill, deferred tax assets and expenses. Closing end 2007 Page 13

14 5. Key figures 1st nine months 2007

15 Key figures 1st nine months 2007 Q Q Revenu Operating profit Net profit Excluding non-recurring writedown of deferred tax assets (non-cash) of EUR 3.1 million reflecting the reduction in the German corporation tax rate as from 1 January Including this non-recurring writedown, there was a net loss of EUR 1.2 million in the third quarter. Page 15

16 6. Our divisions

17 Division Kendrion Electromagnetic Turnover 2008 > EUR 200 million Leading position in Europe Size market EUR 3.0 billion, Europe EUR 1.5 billion Good geographical spread Increasing market (applications) Page 17

18 Division Kendrion Electromagnetic Plant Villingen, Germany Page 18

19 Division Kendrion Electromagnetic Plant Donaueschingen, Germany Page 19

20 Division Kendrion Electromagnetic Plant Engelswies, Germany Page 20

21 Division Kendrion Electromagnetic Plant Eibiswald, Austria Page 21

22 Division Kendrion Electromagnetic Plant Prostejov, Czech republic Page 22

23 Division Kendrion Electromagnetic Plant Suzhou, China Page 23

24 Division Kendrion Electromagnetic Production Know-how - Product-specific assembly line - Highly automated production Page 24

25 Division Kendrion Electromagnetic Production Know-how - State of the art production technology and assembly plants - Integrated 100% end of line testing for each product Page 25

26 Market and competitive Market characteristics Size > 3 Billion world wide (1.5 Billion in Europe) Historical - Technology driven, over sales trends engineered Main competitors Factors impacting trends - Outsourcing by big OEM s (active partners) - Looking for problem solver (global competitiveness) - Cost pressure - Global presence small competitors Harting NASS EKS Thomas world wide Bosch Borg Warner Warner Electric Kuhnke Schulz KEC ETO Lenze Consolidation is a must in this fragmented market. Page 26

27 Customers Type of contracts 50% 2% 2% 2% 3% 3% 4% 4% 10% - 60 % long term > 5 years - 25 % applications - 15 % standard 12% 8% Customer sales drivers Bosch Rexroth Schindler Stoll Automotive Ligthing Bosch Hydraulikring Hella KG ZF Lemföfer Siemens AG Daimler Others Company dependency on customers: low - Technology - Problem solver - Global positioned (NA, Asia) -Price Page 27

28 Division Kendrion Electromagnetic Excellent development, good market circumstances Organic growth in turnover 10-15% Growth in both industrial activities as well as in automotive activities Many new orders Page 28

29 Division Kendrion Electromagnetic Focused Limited niches innovation leadership by R + D synergies Clear structure efficiency decentralized, unbureaucratic Kendrion Electromagnetic Automotive Industrial Cars Magnetic Systems Busses Power Transmission Page 29

30 Division Kendrion Electromagnetic Focused acceleration Worldwide increasing importance for: -Safety - Environment target markets for KE -Comfort New acquisition Linnig is exactly in line: Focused on fuel consumption and comfort. Page 30

31 Division Kendrion Electromagnetic Automotive Systems Possible applications in the automotive sector Motor management: Camshaft displacement 3/2 pneumatic solenoid Common rail injection Safety Environment Comfort Doors/deck lids: Doors/deck lid actuation Closing systems Top operation: 3/2 solenoid valve Headlights: Adjustment Chassis: Active buffer Oil control Air conditioning technology: Thermal management Transmissions: Automatic control gear All-wheel hook up / cut off Interlock Power allocation Switch mechanisms: Shift lock-solenoids Key lock-solenoids Interlock-solenoids Page 31

32 Division Kendrion Electromagnetic Automotive Systems Automotive Systems in 1st nine months 2007 Organic growth 16% Remains turbulent market with a lot of price pressure Good expectations for common rail technology (>EUR 30 mln turnover in 2009/2010) High investments Strong growth in Czech Republic (this year expansion of the production) Also growth in USA in the coming years (new projects) Page 32

33 Business model Division Kendrion Electromagnetic Industrial Systems Increased customised solenoids Service model for catalogue products Many customers a.o. world players Engineering, logistics and delivery time most important drivers Page 33

34 Division Kendrion Electromagnetic Industrial Systems Page 34

35 Division Kendrion Electromagnetic Industrial Systems Page 35

36 Division Kendrion Electromagnetic Industrial Systems Page 36

37 Division Kendrion Electromagnetic Industrial Systems Industrial Systems in 1st nine months 2007 Organic growth 15% Benefits from good market situation in machine building Strengthened international sales organisation First large order in USA (Siemens, post ordering system) China develops step by step Page 37

38 Division Kendrion Electromagnetic Competitive advantages Know how of decades Reliable partner, solid and edifying know how Fast delivery time Risks Raw material market, especially copper Page 38

39 Division Kendrion Electromagnetic Conclusion Excellent development with strong organic growth Acquisition opportunities get a lot of attention A lot of perspective Page 39

40 Division Kendrion Distribution Services Vink Preferred plastics supplier in Europe Market leader active in 14 countries More and more focus on added value (machining, industry) Central marketing and logistics improvement Increasing market share in key countries Page 40

41 Division Kendrion Distribution Services Vink and Servico (1) Organic growth in turnover 1st nine months 2007 approximately 4% (Q3 5.5%) Growth in turnover and growth operating result depressed by implementation Vink broad applied ICT system in NL Excellent performance in Scandinavia and Belgium Improvements visible in France, strong revenue growth Also strong revenue growth in Germany, margin still too low Page 41

42 Division Kendrion Distribution Services Vink and Servico (2) In Germany new warehouse brought into use in accordance with strategy (extra costs) Central management Vink Group more and more in place (purchase, marketing, logistics) Small acquisition France Unexpected sharp decline Q3 revenue / results Servico due to model changes Page 42

43 Vink Group In most European countries Vink is is synonymous with Plastics Distribution Knowledge Application Page 43

44 What does Vink do? Vink is a plastics supplier offering competency in the following main areas: Distribution of semi-finished plastic materials Engineering and production of customer specific, manufactured plastic products and components Systems solutions Vink is focused on serving in the following market segments Signs & Graphics Industry Building & Construction Page 44

45 Brief description of the market segments Signs & Graphics: From signs, selfadhesive lettering and banners to shop interiors and displays. Industry: From transport guides in conveyor systems, glazing for forrestry machines to parts of water treatment installations and windwills. Building & Construction: From facades, stadion roof, green houses to shop security and sound walls. Page 45

46 Vink Group in locations in 13 European countries 50,000 active customers 1,100 dedicated employees Over 400 persons in commercial functions 30,000 different products on stock in 26 warehouses 5 modern machine shops in NL, B, DK, S and Fi Page 46

47 Locations in Europa 2008 Act Local - Support Global 13 countries / 4 regions Headquarters in Zeist Group Functions Marketing / business development Production development Supply Chain Purchasing IT / Systemen Controlling & Analysis Page 47

48 Now and in the future Find and deliver the best plastic solution, starting from the application at the customer End customer Application Machining Extrusion plaatje raffinage Refinery Plaatje olie Oil Page 48

49 Market situation and competition Vink Market share % DK Nor Swe Fin Bel NL Ger Fra UK Ire CH Cze Vink Thyssen Amari Sunclear Hun Amari Vink Page 49

50 What are Vink s markets and who are our customers? Page 50

51 Signs & Graphics

52 Industry from machine part to wind mill Page 52

53 Industry: machined product

54 Industry: installation Corrosion free constructions for the Chemical- and water treatment industry

55 Building & Construction

56 Billboards in stadiums Customers: advertising agencies Page 56

57 Shop interiors Customers: interior decorators and shop fitters Page 57

58 Cinema lobby Page 58

59 Printed foil for a restaurant interior Page 59

60 The perception of plastics has changed Perception then: plastic and nylon cheap, fake bad for the environment Perception now: plastics have countless applications high tech durable and responsible Total plastics market in Europe; more than Euro 200 billion of which 6 billion in semi finished products Page 60

61 Vink combines competencies in 3 areas Information Technology Added value: Knowledge Driven solutions Production Clear processes VINK Plastics Distribution People Distribution: High servicelevel and cost efficiency Page 61

62 Main points Vink strategy Focus on the customer Market segment focus Supply Chain Excellence Services (added value) aimed at solutions Targeted acquisitions: Critical mass in existing countries (France and Germany) New growth markets Machining facilities Page 62

63 Organic growth 9 months Target Electromagnetic 15.0% 12.6% 8.0% 7.8% > 10% Distribution Services 4.0% 5.3% 7.8% 4.6% > 5% Page 63

64 ROS (12 months rolling) HY Target Electromagnetic 9.2% 9.0% 9.0% 9.2% 7.2% > 10% Distribution Services 4.3% 4.2% 4.2% 3.5% 1.9% > 5% Page 64

65 ROI (12 months rolling) HY Target Electromagnetic 24.7% 24.3% 22.4% 20.0% 14.9% > 25% Distribution Services 23.0% 23.4% 22.3% 15.5% 10.6% > 20% Page 65

66 7. Financial position

67 Financial position Solvency approximately 28-30% Renewed financial arrangements with our bank consortium High capital expenditure 2007 (as planned) Available for acquisitions approximately EUR 40 million Page 67

68 8. Dividend policy

69 Dividend policy With continuation current state of affairs paying dividend over 2007 is considered Decision will be taken beginning 2008 Page 69

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