ElringKlinger Group. Analysts and Investors Conference on the 2012 Financial Year March 28, 2013

Transcription

1 ElringKlinger Group Analysts and Investors Conference on the 2012 Financial Year March 28,

2 Business year 2012: Key developments ElringKlinger sales again outgrowing the market: plus 9.1% slightly higher than targeted (excl. acquisitions 7.3%) Adjusted EBIT increases to EUR (126.0) mn target of EUR 145 to 150 mn not achieved due to weak Q4 segment mix and one-offs EBIT burdened by FX-effects of minus EUR 2.9 mn and PPA of EUR 2.3 mn Acquisition and expansion of metal housing producer ThaWa GmbH in Saxony-Anhalt, Germany Start of first production lots at new PHM plant in Dettingen/ Erms Integration of Freudenberg entities and Hug: > Freudenberg France loss-making in Q4 > Hug profitable in Q4 for the first time 2

3 Group Sales by segment 2012 (py) OE share up due to new product ramp-ups and acquisitions Engineered Plastics 8.1% (8.2%) Industrial Parks 0.4% (0.7%) Services 0.6% (0.5%) Aftermarket 10.5% (10.9%) OEM 80.4% (79.7%) 3

4 Group Sales by region 2012 (py) Almost 50% of OE sales in Asia and the Americas South America & Others 6.1% (5.8%) Asia and Australia 15.9% (13.9%) incl. exports: ~24% of OE sales Rest of Europe 30.4% (33.4%) NAFTA 17.5% (16.0%) incl. exports: ~25% of OE sales Germany 30.1% (30.9%) 4

5 Employees ElringKlinger Group worldwide slower increase than sales growth as of December 31, 2012 (py) Group 6,263 (6,075) +3.1% Germany 2,918 (2,813) International subsidiaries 3,345 (3,262) AG 2,059 (1,972) Domestic subsidiaries 859 (841) 5

6 2 Q4 2012: Sales and operating result in mn Q Q Change in % Sales % Cost of Sales % EBITDA % EBIT % Operating Result % 1 Incl. currency effects 6

7 Q4 2012: Financial Result and Net Income in mn Q Q Change in % Net finance cost % EBT % Taxes % Net income % Profit attributable to EK shareholders % EPS (in ) % 7

8 Sales by quarter mn Q1 Q2 Q3 Q

9 Sales OE business up 2.8% in Q4 sequentially mn % EBIT in EUR mn Q3: 24.3 Q4: FY 2011 FY 2012 Q Q

10 Aftermarket sales down in Q4 sequentially mn % EBIT in EUR mn Q3: 6.4 Q4: FY 2011 FY 2012 Q Q

11 Sales Engineered Plastics down in Q4 sequentially mn % 91.3 EBIT in EUR mn Q3: 4.6 Q4: FY 2011 FY 2012 Q Q

12 Q4 2012: Operating result at EUR 25.8 mn mn Q1 Q2 Q3 Q4 1 Excl. one-time gain of EUR 22.7 mn from sale of industrial park

13 Q4 2012: EBIT came in at EUR 24.4 mn mn Q1 Q2 Q3 Q Excl. one-time gain of EUR 22.7 mn from sale of industrial park 13

14 Effects on Q4 EBIT Q4 sales at EUR mn slightly higher than planned, almost matching strong Q3 level (EUR 279.8) yet: Weaker share of higher margin segments in Q4: > Aftermarket sales sequentially down EUR 5.5 mn to EUR 26.6 mn (Q3: EUR 32.1 mn) > Engineered Plastics sales down EUR 3.1 mn to EUR 20.3 mn (Q3: EUR 23.4 mn) Unusually strong proportion of lower-margin tooling revenue in the OE segment (plus EUR 10 mn in Q4 vs. Q3) One-time adjustments of EUR 2.0 mn to investee inventories Negative EBIT swing at Freudenberg-location in Nantiat, France: minus EUR 1.1 mn sequentially 14

15 Dividend proposal for FY 2012 EUR 0.45 (0.40) regular dividend per share, which is a 12.5 % increase Dividend for 2011 included a special bonus of EUR 0.18 per share for onetime gain from the sale of the Ludwigsburg industrial park Total dividend payout amounts to EUR 28.5 (36.7) mn AGM takes place on May 16, 2013 dividend payout on May 17,

16 Q4 2012: Effects from Freudenberg acquisition in mn Freudenberg in mn Freudenberg Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales EBIT PPA EBT Freudenberg, French site: Q4-EBIT down EUR 1.1 mn on Q3 due to weak Western European car market, lack in parts sales and customers reducing stock Restructuring plan for French site in 2013 to improve cost structure Total dilution from all acquisitions incl. Freudenberg on Group EBIT margin: 1.2 PP in Q4, 1.4 PP in FY 2012 Total PPA (Hug, Hummel): EUR 2.3 mn in

17 Improving performance at former Freudenberg site Nantiat French car sales fall 13.9% in 2012; February 2013 down by another 12.1% Adapting cost structure to demand: > Reduction of work force > Restructuring cost approx. EUR 1.5 mn Installation of small batch series production for the Aftermarket business Target: EBT improvement for the full year German and Italian site profitable 17

18 Q4 2012: Effects from Hug acquisition Swing time in mn Hug in mn Hug Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Sales EBIT PPA EBT Hug still burdened by EUR/CHF exchange rate, high personnel costs and PPA Positive: Sequential earnings improvement quarter-by-quarter Q4 profitable New plant in Thale completed relocation in Q2 2013, in order to decrease cost base in CHF and lower personnel cost Swing potential from Hug in 2013: EUR 6 mn (from minus EUR 3.5 mn 2012 to EUR 2.5 to 3 mn in 2013) 18

19 Every engine needs a Hug low emissions on the high sea Positive development from Q has continued in 2013 New large-scale non-automotive contracts: (CHF 20 mn over two years) > nauticlean DPF systems for 10 river cruise ships > Retrofit for 16 locomotives with DPF systems > Complete exhaust abatement systems for natural gas engine-based power plant in North America Large projects for ocean liners in negotiation 19

20 Every engine needs a Hug CARB accreditation brings high potential in the US CARB certification (California Air Resources Board) for retrofit business Mandatory for on-road vehicles above 6.34 tons entering or operating in California Retrofit business with Hug mobiclean DPF retrofit systems has started to ramp up in the US First prototypes in development for US and European truck OEM 20

21 Normalization of capex towards 8 to 10% of sales mn Investments in plant, property and equipment, invest. prop. and intangible assets Depreciation and amortization 21

22 Sequential step-up of operating free cash flow driven by working capital optimization mn Q1 Q2 Q3 Q4 22

23 Operating FCF up EUR 18.7 mn y-o-y mn Q4: Inventories: - EUR 11.4 mn Trade receivables: - EUR 19.2 mn Net cash from operating activities Operating FCF 23

24 Balance sheet structure as at December 31, 2012 Equity Ratio above 50% Assets in % Liabilities and shareholder s equity in % December 31, 2011 Non-current assets Current assets December 31, 2012 December 31, 2011 December 31, 2012 Shareholder s equity Non-current liabilities Current liabilities 24

25 ElringKlinger enabling efficiency: Gains in fuel efficiency of light vehicles 47 mpg Powertrain improvements/ Downsizing Body and accessories advancements Lightweight construction Hybridization 27 mpg Source: 25

26 Hybrids: Combination of combustion engine & electric drivetrain lifts value sold in Value sold in max. Euro 40 to 60 Value sold in Euro 100 to 150 Optimized Combustion Engine Core business: Turbocharger sealing Advanced HT gaskets Thermal shielding parts Plastic housing modules Hybrid Electric Drivetrain Lithium-ion battery components > Cell contact systems > Pressure exchange systems > EMR shielding Fuel-cell components, APUs/ complete stacks 26

27 E-Mobility: Battery Technology for Hybrids/ PEVs and Fuel Cells High pre-expenses: almost 100 engineers and specialists plus prototyping and general cost In-series production contracts for 3 European OEMs: EUR 6.6 (4.5) mn sales Several development projects with car manufacturers as well as battery producers Fuel-cell: auxiliary power units for trucks Non-automotive applications for use in material handling equipment 27

28 ElringKlinger: Growing in Asia ASEAN region one of the fastest growing regions: GDP growth % At 3.1 million car sales in 2012, the ASEAN market outflanks e.g. India (2.8 million) Stepping stone in Indonesia: ElringKlinger Indonesia starts operating first production plant in Greater Jakarta area Full takeover of Korean joint venture ElringKlinger Korea Co., Ltd. in Changwon, South Korea, effective from February 1, 2013 New plant to be built (invest ~ EUR 10 mn) to expand business with Korean OEMs 28

29 China: Opportunities from CAFE standards Chinese government announced phase III of fuel consumption regulation (CAFE) Stricter CAFE standards to start as of May 1, 2013 Target: National average PC fuel consumption of 6.9 liter/100 km in 2015 and 5.0 liter/100 km in 2020 OEs have to further improve traditional combustion engines to meet these requirements and secondly promote hybrids/ PEVs Growing demand for ElringKlinger product portfolio focusing on downsizing and hybridization 29

30 Outlook 2013: Markets ElringKlinger expects overall worldwide car production in 2013 to stagnate or increase modestly at best Demand once more driven by Asia and the Americas Russia also up Downturn in Europe (-8% in 2012 to 20-year-lows) continues swing not before H Truck segment in Europe still burdened by slow economy pre-buying due to Euro VI introduction might have a positive effect in H New products & structural growth in ElringKlinger s core business (turbocharger gaskets, heat shields, light weight parts, automatic transmission control plates) enable the Group to outgrow the market 30

31 Outlook 2013: Financial performance Q4 order intake: minus 4.3% at EUR (272.6) mn, FY 2012 order backlog up 1.7% (EUR mn) Based on the assumption that global vehicle production will stagnate or at best grow slightly, the ElringKlinger Group anticipates organic revenue growth of 5 to 7 % in 2013; In case global car production stagnates in 2013, sales growth will be rather at the lower end of this range Group EBIT margin still burdened to some extent by weaker margins of the acquired entities and related PPA, as well as lead costs incurred in the field of E-Mobility; But dilution will decrease in 2013 Overall, ElringKlinger anticipates EBIT to grow at a faster rate than sales targeting a range of EUR 150 to 155 mn (EUR 136 mn in 2012) 31

32 ElringKlinger Group Thank you for your attention! 32

33 Disclaimer Forward-looking Statements and Predictions This presentation contains statements about the future. These statements are based on current expectations, market evaluations and predictions by the Management Board, and on information that is currently available to them. The statements about the future should not be interpreted as guarantees of the future developments and results that they refer to. Whilst the Management Board are convinced that the statements that have been made, and the convictions and expectations on which they are based, are realistic, they rely on suppositions that may conceivably prove to be incorrect; future results and developments are dependant on a multitude of factors, they involve various risks and imponderabilities that can affect whether the ongoing development deviates from the expectations that have been expressed. These factors include, for example, changes to the general economic and business situation, variations of exchange rates and interest rates, poor acceptance of new products and services, and changes to business strategy. 33