PKC Group Plc. Investor Presentation Q2/ August Matti Hyytiäinen President & CEO

Transcription

1 PKC Group Plc Investor Presentation Q2/ August 2012 Matti Hyytiäinen President & CEO 1

2 4-6/2012 Highlights Business Environment Truck production in all markets remained in the same level as Q1/2012. North America H2/2012 production volume estimations were lowered. New measures implemented by Brazilian government to improve truck sales. PKC s Operations North American integration was finished ahead of the schedule. New sales and design office was opened in Munich, Germany. Production transfers were rescheduled in Brazil. PKC s Financial Performance Cash flow from operations continued on a positive path. Improved EBITDA % and EBIT %. Electronics back to positive EBIT. 2

3 PKC Group Briefly PKC Group operates in two core business segments: Wiring Systems and Electronics PKC designs and manufactures electrical distribution systems, wire & cables, wiring components and electronics The Group s products and services are delivered mainly to the commercial vehicle, automotive and electronics industries Global footprint with headquarters in Helsinki, Finland The Group s net sales amounted to EUR million in 1-6/ ,970 employees globally at the end of Q2/2012 (rented employees included) PKC Group Plc is listed in NASDAQ OMX Helsinki Ltd. 3

4 Growth Through Focused Investments PK Cables listed in the Helsinki Stock Exchange Acquisition of Estonian production Operations started in China Acquisition of MAN business in Poland Acquisition of SEGU in Germany, Poland and Ukraine Brazilian factory was opened Acquisition of electronics business Acquisition of Russian production Acquisition of Electro Canada in Canada, the USA and Mexico Acquisition of AEES in North America, Brazil and Ireland Adj. EBITDA (1) EUR million Development Over Time (1) Illustrated net of non-recurring items 4

5 PKC Group s Executive Board President & CEO Matti Hyytiäinen WIRING SYSTEMS EUROPE & APAC President, WS, Europe & APAC Harri Ojala WIRING SYSTEMS NORTH AMERICA President, WS, North America Frank Sovis WIRING SYSTEMS SOUTH AMERICA President, WS, South America Pekka Korkala ELECTRONICS President, Electronics Jarmo Rajala BUSINESS DEVELOPMENT Senior Vice President, Business Development Jyrki Keronen FINANCE CFO Juha Torniainen LEGAL & CORPORATE DEVELOPMENT General Counsel Sanna Raatikainen 5

6 PKC locations today North America Acuna, Mexico (M) Dallas, Texas Green Valley, Arizona Farmington Hills, Michigan Jeffersontown, Kentucky Juarez, Mexico (M) Kirkland, Washington Monterey, Mexico Nogales, Mexico (M) Piedras Negras, Mexico (M) Portland, Oregon San Antonio, Texas Torreon, Mexico (M) Traverse City, Michigan (M) South America Campo Alegre, Santa Catarina, Brazil (M) Curitiba, Brazil (M) Itajuba, Brazil (M) São Bento do Sul, Brazil (M) São Paulo, Brazil Europe Barchfeld, Germany (M) Dundalk, Ireland (M) Haapsalu, Estonia (M) Helsinki, Finland (HQ) Keila, Estonia (M) Kempele, Finland Kostomuksha, Russia (M) Mukachewo, Ukraine (M) Munich, Germany Raahe, Finland (M) Sosnowiec, Poland (M) Starachowice, Poland (M) Asia Suzhou, China (M) Wiring Systems business Electronics business (M) Manufacturing 6

7 Geographical split 7

8 Key Figures, 1-6/2012 EUR million 1-6/12 1-6/11 Change % 1-12/11 Net sales EBITDA Depreciation and amortisation 1) PPA depreciation and amortisation EBIT Non-recurring items EBIT after non-recurring items Financial items Taxes Net profit EPS, (EUR) ) Excluding PPA depreciation and amortisation 8

9 Key Figures, 4-6/2012 EUR million 4-6/12 4-6/11 Change % 1-12/11 Net sales EBITDA Depreciation and amortisation 1) PPA depreciation and amortisation EBIT Non-recurring items EBIT after non-recurring items Financial items Taxes Net profit EPS, (EUR) ) Excluding PPA depreciation and amortisation 9

10 Key Figures, 1-6/2012 EUR million 1-6/12 1-6/11 Change % 1-12/11 Net cash from operating activities Cash flows after investments Net working capital Net debt ROI, % Equity ratio, % Gearing, % No. of employees at closing (Rented employees included) 20,970 8, ,895 10

11 Key Figures, 1-6/2012 Net Sales by Geographical Areas EUR million Net Sales EUR million Adjusted EBITDA Illustrated net of non-recurring items, EUR million Adjusted EBITDA % and EBIT % Illustrated net of non-recurring items, % 11

12 Key Figures, 1-6/2012 Net Investments EUR million Cash Flows after Investments EUR million Return on Investment (ROI), % Earnings per Share (EPS) % EUR 12

13 Key Figures, 1-6/2012 Personnel incl. rented employees Personnel incl. rented employees at the end of report period at the end of report period -4.2% R&D Personnel R&D Expenditures at the end of report period EUR million Q2/11 Q2/12 13

14 Wiring Systems Business Segment 14

15 Key Financials, Wiring Systems 1-6/2012 EUR million 1-6/12 1-6/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

16 Key Financials, Wiring Systems 4-6/2012 EUR million 4-6/12 4-6/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

17 Net Sales, Wiring Systems EUR million 17

18 Adjusted EBIT, Wiring Systems EUR million Illustrated net of non-recurring items 18

19 Key Customer Segments Trucks & Buses Light vehicles Engines Recreational Products Agricultural, Forestry and Construction Equipment 19

20 PKC Group Truck Market Share Globally North America Europe Brazil Heavy Trucks Class 8 Medium Trucks PKC Other Class 5-7 Source: ACT Build History, July 2012; LMC Automotive forecasting Q2/2012. Note: Europe comprised of EU27 + Efta 20

21 Heavy Trucks Production, EU27+ EFTA Trucks >16t, units EURO 6 Source: LMC Automotive forecasting Q2/

22 Medium Trucks Production, EU27+ EFTA Trucks <16t, units EURO 6 Source: LMC Automotive forecasting Q2/

23 Heavy Trucks Production, North America Trucks >16t, units EPA 2014 Source: LMC Automotive forecasting Q2/

24 Medium Trucks Production, North America Trucks <16t, units EPA 2014 Source: LMC Automotive forecasting Q1/

25 Light Vehicle (Pick-up and SUV) Production, North America Units Source: LMC Automotive forecasting Q2/

26 Heavy Trucks Production, Brazil Trucks >16t, units EURO 5 (Brazil) Source: LMC Automotive forecasting Q2/

27 Medium Trucks Production, Brazil Trucks <16t, units EURO 5 (Brazil) Source: LMC Automotive forecasting Q2/

28 Electrical Distribution Systems, EDS Electrical Distribution Systems are responsible for power supply and transfer of information Manufacturing for heavy and light vehicles, buses, recreational vehicles as well as agricultural, forestry and construction equipment EDS are tailored to the customerspecific requirements and they must work under all conditions Strong experience in mass producing product variations (synchroproduction) Factories in Brazil, China, Estonia, Germany, Mexico, Poland, Russia and Ukraine Batch harnesses Engine harnesses ABS cable Chassis harnesses Instrument harnesses 28

29 Components Manufacturing of plastic components & connectors, junction boxes and various power distribution centres Key Products Power Distribution Centers Connection Systems Terminal Systems Routing and Retention Aids Fuse boxes Factories in USA, Mexico and Ireland 29

30 Wire & Cable Manufactures and distributes selected insulated and non-insulated wire, multi-conductor cables and battery cables Key Products PVC coated wire Cross linked polyethylene coated wire Polyethylene coated wire Metric and English wire sizes Battery cable Factory in Mexico 30

31 Electronics Business Segment 31

32 Key Financials, Electronics 1-6/2012 EUR million 1-6/12 1-6/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

33 Key Financials, Electronics 4-6/2012 EUR million 4-6/12 4-6/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

34 Net Sales, Electronics EUR million 34

35 Adjusted EBIT, Electronics EUR million Illustrated net of non-recurring items 35

36 Electronics Segment, 1-6/2012 The economic uncertainty and worldwide drop in industrial investments affected the demand for electronic appliances. Investments in renewable energy and telecommunication testing equipment remained on the same modest level as during the first quarter of However, the volumes of developing and constructing smart grids were at a good level. Also the demand for energy efficient technologies and products grew during the second quarter. 36

37 Electronics Business Provides design and contract manufacture services to commercial vehicle, industrial electronics and energy industries Products are used e.g. in power control for machinery, the testing of electronic products and for energy-saving The service concept includes services covering the product s whole life-cycle Innovative design and product development services in Finland and China Strong experience in the development and manufacture of automotive electronics and products relating to renewable energy Factories in Finland, China and Russia 37

38 Products and Industrial Segments Products Power supply units Electronics control units Vehicle electronics Testing equipment Electronics service devices Industrial Segments Commercial vehicles Energy Industrial electronics Telecommunication Security Vehicle computers Security products 38

39 Outlook for the Future 39

40 Outlook for the Future PKC expects that its net sales and comparable operating profit will increase in 2012 from the previous year s level. Net sales in 2011 amounted to EUR million and operating profit without non-recurring items was EUR 42.6 million. Major part of net sales and profit is generated by the Wiring Systems business. 40

41 Shareholders Major shareholders % Ilmarinen Mutual Pension Insurance Company 10.7 AS Harju Elekter 6.5 Project Del Holdings Llc 5.8 Varma Mutual Pension Insurance Company 2.7 Takanen Jorma 2.7 OP-Finland Small Firms Fund 2.3 Laakkonen Mikko 2.0 OP-Focus Non-UCITS Fund 1.9 ODIN Finland 1.7 Suutari Harri 1.4 Eestilä Matti 1.4 Tukinvest Oy 1.0 FIM Forte Sijoitusrahasto 1.0 Nordea Nordic Small Cap Fund 0.8 Savings Bank Finland Fund 0.8 Total ,976 owners 41

42 Thank You! 42