STAR CONFERENCE MILANO

Transcription

1 ENG STAR CONFERENCE MILANO March 24th, /03/2015 1

2 CONTENTS 3 Business overview Growth leading factors Strategy& Guide Lines 2014 results targets 24/03/2015 2

3 PRODUCT PORTFOLIO IN THE INDUSTRIAL AUTOMATION BUSINESS GEFRAN Industrial machine makers B2B/B2C product manufacturers End-users Motion Control Motion control of AC and DC motors Sensors Measurement of process variables Automation Hardware & Software for indication and control of process variables 24/03/2015 3

4 WE COVER THE AUTOMATION SUPPLY CHAIN WITH SPECIFIC PRODUCTS PROCESS Measurement Program & Control Motion 24/03/2015 4

5 WE ARE SPECIALIST IN SPECIFIC APPLICATIONS 24/03/2015 5

6 WE ARE SPECIALIST IN SPECIFIC APPLICATIONS PROCESS Program& Control Motion 24/03/2015 Lift system 6

7 WE DIRECTLY COVER MATURE AND EMERGING MARKETS WITH A BALANCED PORTFOLIO A well balanced business portfolio, with about 70% of products dedicated to industrial applications Gefran exports about two thirds of its revenues(1h2014 data) Asia(mainly Cina) is the most important market 45% 33% 22% 1% 5% 4% 8% Sud South America Nord North America Asia 23% 27% 33% Italia Italy UE Europa Europe (non UE) UE) RoW ROW Sensori Componenti Automation Azionamenti Motion Control 03/10/2014 7

8 A CLEAR POSITIONING THAT LEADS STRATEGIES: SENSORS SENSORS Devices that convert a physical quantity in an electric signal. Gefran SENSORS ensure HIGH ACCURACY and RELIABILITY to the measurement of process variables: PRESSURE, POSITION, TEMPERATURE and FORCE. Gefran sensors are used in a variety of industries. Competitive landscape Critical success factors Technology Product quality Presencein the distribution channels: OEM, distributor s Competitive advantage Patents In-house design and production of key elements Know how Competitors Dynisco MTS Novotechnic Wika 24/03/2015 8

9 A CLEAR POSITIONING THAT LEADS STRATEGIES: AUTOMATION PC & PLC - hardware and software for regulation of process variables. Automation platforms HMI PLC Software Competitive landscape Critical success factors Reputation Pre-post sales technical support Key customer references Competitive advantage Specific know how in the plastic industry Chain integration Competitors B&R Siemens Keba 24/03/2015 9

10 INSTRUMENTS-Hardware and software for indication and regulation of process variables. Gefran instruments have set market standards. Gefran is leader in temperature controllers segment thanks to its wide range of: Indicators A CLEAR POSITIONING THAT LEADS STRATEGIES: AUTOMATION High performance controllers and programmers Competitive landscape Critical success factors Wide distribution network Specialisedand general distributors Competitive advantage Specialisation 15 subsidiariesin the world Competitors Omron Eurotherm Gavazzi 24/03/

11 A CLEAR POSITIONING THAT LEADS STRATEGIES: MOTION CONTROL INVERTERS FOR INDUSTRIAL APPLICATIONS - Gefran offers a wide range of drives for the speed control of AC, DC and brushless motors used in the most modern industrial automation systems. Competitive landscape Critical success factors Wide product range Customization Competitive advantage Flexibility Presence on distribution channels Competitors Siemens Rockwell Automation B&R 24/03/

12 A CLEAR POSITIONING THAT LEADS STRATEGIES: MOTION CONTROL LIFT INVERTERS- SIEIdrive lift inverters are flexible and complete thanks to a wide range of dedicated options and accessories and they represent the fastest and immediate solution for any application requirement. Thousands of working plants all over the world are the best proof of Gefran proficiency and product unconditional quality. Competitive landscape Critical success factors Technology Knowhow Performances and reliability Competitive advantage Specialisation Knowhow Strong reputation Competitors Fuji Electric Yaskawa 24/03/

13 TECHNOLOGICAL LEADERSHIP: OUR STRONGEST COMPETITIVE ADVANTAGE R&D TECHNOLOGICAL DEVELOPMENT As the technological evolution of its products is an important factor for potential future growth, Gefran typically invests more than 6% of its turnover to R&D activities which are concentrated mainly in Italy in company laboratories located in Provaglio d Iseo and Gerenzano. 10% of the total workforce is dedicated to R&D activities 24/03/

14 WE ARE PRESENT IN RELEVANT MARKETS WITH PRODUCTION SITES AND COMMERCIAL SUBSIDIARIES 10 production site 3 Sensors 2 Automation 4 Motion Control 1 Solutions 52 countries served with 16 trade organizations 7 subsidiaries in Europe in addition to Gefran Spa 3 subsidiaries in Asia (plus a rep. office) 1 subsidiary in South America Usa& Messico1 subsidiary and 1 rep. office 1 subsidiary in South Africa 24/03/

15 GROWTH LEADING FACTORS Growing consumption of manufactured goods (China, India, Brazil, CIS) Development of infrastructure (construction, engineering, energy) Growing production of machinery and equipment with a consequent increase in demand for industrial and civil automation Increased attention to reduce energy consumption (stimulated by government incentives) Progressive technological substitution of mechanical and hydraulic drives, with electric drives The penetration of electrical drives in machines and plants combines with the growth in demand multiplying the opportunities of business development From 2017 onwards in Europe and North America will no longer be allowed the use of mercury in the manufacture of sensors Growing demand for alternative technologies for both the construction of new equipment (OEM) and for the conversion of the existing units (After Market) The emerging countries (especially China) are adapting the quality and safety of products to meet international standards. Growing attention to the control of the production process and the resulting demand for highperformance sensors (pressure, temperature, position,...) and tools for automation and control systems (indicators, controllers and PLC) 24/03/

16 STRATEGY FOCUS ON Consolidating our presence in markets and distribution channels Growing in complementary applications Widening the range of products Organization efficiency 24/03/

17 STRATEGIC GUIDELINES: FOCUS ON CORE BUSINESS, ECONOMIES OF SCALE AND SCOPE Gefran has been adapting the organizational structure, work processes and skills of resources in order to: Increase the specialization of the organizational structures (research, marketing and sales) by product and by application Change the logistics and the distribution facilities with the aim of increasing the efficiency and the level of service Specialize our trade policies for product/ channel/ market 24/03/

18 2014 RESULTS* % 2013 % Δ Revenues % % Value added % % Personnel costs % % EBITDA % % EBIT % % Financial Loss/Gain (650) 1% (2.575) 2% Pre tax result % % Taxes (3.179) 2% (477) 0% (2.702) Net result from operative assets % % Result of available for sales assets (2.976) 2% (9.800) 8% Net result (224) 0% (8.486) 7% * With the start of negotiations to sell the photovoltaic business, in accordance with IFRS 5 Non-current assets held for sale and discontinued operations, the result of the business is shown separately in the income statement in the line Net profit (loss) from assets held for sale, below the profit (loss) from continuing operations. The restatement was applied retrospectively also to the figures for 2013, in order to ensure the data was comparable. 24/03/

19 2014 KEY FACTS Revenue growth of 3%, still below expectations of the business plan Margins on the rise: EBITDA + 18% EBIT +50% Cost rationalization restructuring in GefranSpa (Motion Control BU specially involved) Continue the strategy of focusing on high value-added business: - Transfer calibration activities - Disposal of a minority shareholding - Negotiations for the sale of the PV Investments for Sales Force specialization 24/03/

20 MARGIN EVOLUTION * 9,98% 8,72% 61% 61% 62% 7,24% VALUE ADDED EBITDA * and 2013 Data retrospectively reclassified to ensure comparability of values. 24/03/

21 REVENUES AND MARGINS BREAKDOWN Motion Control Sensors Automation in Δ Δ Δ Revenues (3,1%) ,3% (2,1%) EBITDA (31,6%) ,5% ,5% EBITDA % 2,2% 3,2% 24,6% 22,2% 2,1% 0,6% EBIT (1.215) (844) (44,0%) ,2% (1.219) (1.661) 26,6% EBIT % (2,1%) (1,4%) 20,2% 17,1% (4,0%) (5,3%) Focus 2015: turnaround in Motion Control and Automation profitability 24/03/

22 BALANCE SHEET* 000 Dec. 31, 2014 Dec. 31, 2013 Net fixed assets Inventories Trade receivables Trade payables Other net assets/payables Net Working Capital Other non current assets Asset available for sales Net Invested Capital Shareholders' Equity Short-term Financial Debt Long-term Financial Debt Net Financial Position Total Sources of Funding * With the start of negotiations to sell the photovoltaic business, in accordance with IFRS 5 Noncurrent assets held for sale and discontinued operations, the result of the business is shown separately in the income statement in the line Net profit (loss) from assets held for sale, below the profit (loss) from continuing operations. The restatement was applied retrospectively also to the figures for 2013, in order to ensure the data was comparable. 24/03/

23 NET FINANCIAL POSITION AT THE END OF 2014 ( 000) NFP Dec 2013 NFP Dec 2014 Gross cash flow Working capital Capex Other (24,367) 4,892 (5,718) (3,297) 885 (27,605) 24/03/

24 CASH FLOW 000 Dec, Dec, Gross Cash flow Change in Working Capital (5.718) Operating Cash flow (826) Cash flow used in Capex and investment activities (3.297) (9.884) Free Cash flow (4.123) Cash flow from(to) financing activities (593) Dividends paid and Other 408 (472) Opening Cash & Cash equivalents Cash Increase (Decrease) (4.308) Closing Cash & Cash equivalents /03/

25 CAPEX Total Tangible Assets Intangible Assets 11,3 6,3 5,7 3,3 2,5 8,3 7,4 4,5 6,4 3,2 5,5 2,6 3,0 3,1 3,0 2,9 3,2 2, * /03/

26 TARGET Mln 3% 5% 5% Fatturato Turnover Ebitda Ebit 24/03/

27 2015 TARGET For 2015 Gefran provides: -Revenues up 10% -Margins stable, EBITDA to 10% of sales Business Motion Control: upgrading of industrial application product lines Sustainable growth: cash generation and specific targets on Working Capital 24/03/