The LEONI Group. 1 st Quarter The Quality Connection

Transcription

1 The LEONI Group 1 st Quarter 2015 The Quality Connection

2 Contents 1. LEONI Group 2. LEONI Divisions 3. Report 1 st Quarter Outlook 5. Appendix LEONI AG 2

3 LEONI Group Divisions 2014 Divisions Sales breakdown and operating margin Sales breakdown per region Wiring Systems Wiring systems and electrical components Total sales: 2.40 billion EBIT: 105 million % margin: 4.4 % Employees: 59,056 EMEA 71% thereof Germany 30% points Asia/Pacific 17% Americas 12% Sales 2014: 4.10 billion EBIT 2014: 183 million Wire & Cable Solutions % margin: 4.4 % Employees: 67,988 Wires, cables and cable systems for non automotive applications Total sales: 1.70 billion EBIT: 78 million % margin: 4.6 % Employees: 8,679 EMEA 59% thereof Germany 23% points Asia/Pacific 21% Americas 20% million LEONI AG 3

4 LEONI Group Sales long-term overview , CAGR 15% 3,701 3,809 3,918 4,103 4, ,114 CAGR 15% 2,367 2,108 1,548 2,912 2,160 2, in million estimated estimated major acquisitions Lucas Rists sales about 100 million Kerpen sales about 116 m Studer Draht- und Kabelwerk AG sales about 84 m Valeo Wiring Systems sales about 574 m LEONI Wiring Systems Korea sales about 121 m LEONI AG 4

5 LEONI Group External sales 2014 Americas 620 Asia / Pacific 777 EMEA 2,704 thereof Germany 1,108 thereof Europe excl. Germany 874 thereof Eastern Europe 677 thereof Africa 33 Rest of EMEA 12 by regions in million Total 4.1 billion LEONI AG 5

6 LEONI Group EBIT long-term overview CAGR 18% CAGR 16% > (116) in million estimated estimated 1 Including the exceptional income from the sale of Studer Hard AG of 28 million 2 Adjustment of various pre-year amounts due to amendment of IAS 19 LEONI AG 6

7 LEONI Group Key ratios Net income 200 ROCE in million in % LEONI AG 7

8 LEONI Group Net debt / Cash flow Net debt / EBITDA Operating cash flow Free cash flow * (38) in million * before dividends, acquisitions and purchase or sale of own shares LEONI AG 8

9 LEONI Group Gearing Equity and net financial debt Equity Net financial debt Gearing 92 % 32 % 32 % 31 % 34 % in million LEONI AG 9

10 Wiring Systems LEONI AG 10

11 Wiring Systems Technical data of a wiring system Length of cable: more than 3,000 meters Number of single cables: up to 1,500 Number of contacts: up to 3,000 Weight: up to 50 kg LEONI AG 11

12 Wiring Systems Full service provider The division s products and services range from basic cable harnesses to cables for wired sensors to complete ready-to-install wiring systems for cars and commercial vehicles. The product range also comprises high voltage cable harnesses for vehicles with alternative drive technology. Design Electronical Integrated system components wiring systems LEONI AG 12

13 Wiring Systems Sales long-term overview in million CAGR 18% 1,511 1,225 1,634 2,024 2,206 2,321 2,400 2, estimated major acquisitions Lucas Rists sales about 100 million Valeo Wiring Systems sales about 574 million LEONI Wiring Systems Korea sales about 121 million LEONI AG 13

14 Wiring Systems Start-ups 30 number 25 start up costs Number of major project starts basis for future growth LEONI AG 14

15 Wiring Systems Customers (examples) Passenger cars [ 75 % ] Commercial vehicles [ 15 % ] Suppliers [ 10 % ] LEONI AG 15

16 Wiring Systems Customer segments 2014 Asian Customers 1.5% Systems & Components 8.6% European Customers 24.6% excl. German Customers German Customers 35.6% US Customers & CV 29.7% LEONI AG 16

17 Wiring Systems Sales per region Sales breakdown per region Final customer market 2015e Americas 11.8 % Americas 20 % Asia / Pacific 17.3 % EMEA 70.9 % thereof Germany 29.6 % points Asia / Pacific 23 % EMEA 57 % LEONI AG 17

18 Wiring Systems Light vehicles production CAGR +4% % % +2% EMEA Americas Asia / Pacific Total in million pieces estimated Copyright 2015 IHS, Inc. LEONI AG 18

19 Wiring Systems Global facilities number of employees 7,456 2,415 23,795 23,827 3,512 3,011 leased personell USA France Romania Egypt China Mexico Germany Russia Morocco India Brazil UK Serbia Tunisia South Korea Portugal Slovakia Ukraine number of employees in total: 61, ,815 leased personell = 64,820 Main production sites Competence centre as of March 2015 LEONI AG 19

20 Wiring Systems Electromobility Start of production (Europe) Electric drive Hybrid drive Sales performance in million LEONI AG 20

21 Wiring Systems Profile No. 1 in Europe No. 4 worldwide Full service provider of wiring systems Cost leadership due to production in low-cost regions in Eastern Europe, North Africa, Asia and Mexico New and follow-on orders from the automotive industry retain growth over many years LEONI AG 21

22 Wire & Cable Solutions LEONI AG 22

23 Wire & Cable Solutions Products and markets Automotive Industry & Healthcare Communication & Infrastructure Electrical Appliances Conductors & Copper Solutions LEONI s products and services portfolio Services Cable System Solutions Cable Assemblies Cable Hybrid Cable Fiber Optics Wire & Strands Optical Fibers R&D / Engineering LEONI AG 23

24 Key markets Automotive Wire and cables for - wiring systems in cars and commercial vehicles - telematics and multimedia - antenna based communication - propulsion and engines - alternative powertrains - safety applications - ergonomics and lighting - driver assistance and active safety systems in the axle wiring - seat heatings Charging cables for electric vehicles Cables with alternative conductor materials Sales: in million LEONI AG 24

25 Key markets Industry & Healthcare Cable and cable systems, fiber optics, fiber optical cables, optical and mechanical system components for - plant and mechanical engineering - automation and drives - measurement and control technology - robotics - special vehicles - aerospace - telecommunication - medical devices, medical laser applications - patient monitoring - science Sales: in million LEONI AG 25

26 Key markets Communication & Infrastructure Cables and cable systems for - structural and civil engineering as well as traffic infrastructure (e.g. installation cables) - large plant and refineries (project-specific instrumentation and power cables) - power generation and distribution (solar-, wind-, hydro- und nuclear power) - traffic on board (rolling stock, marine technology) - LAN cable system office (copper and fiber optic cables, systems and accessories) - telecommunication networks Sales: in million LEONI AG 26

27 Key markets Electrical Appliances Cables and cable systems for - small appliances - irons - vacuum cleaners - consumer electronics - washing machines Sales: refrigerators tools lighting industry in million LEONI AG 27

28 Key markets Conductors & Copper Solutions Wires and strands for - special cable industry - heating system manufacturers Round, stranded copper flexibles and braided copper tapes for - carbon brushes - welding equipment - mechanical engineering Sales: in million LEONI AG 28

29 Wire & Cable Solutions Sales long-term overview in million 2000 CAGR 13% 1,678 1,603 1,597 1,704 1, ,381 1,402 1,322 1, estimated major acquisitions Kerpen Sales about Euro 116 m Studer Draht- und Kabelwerk AG Sales about Euro 84 m LEONI AG 29

30 Wire & Cable Solutions Customers (examples) Automotive Industry & Healthcare Communications & Infrastructure Electrical Appliances in total about customers LEONI AG 30

31 Wire & Cable Solutions Profile Third largest group in the European cable industry Complete range of technologies and products Leading position in the most important target markets Development of the division into a system supplier LEONI AG 31

32 1 st Quarter 2015 Highlights Consolidated sales up by about 9 percent to a new high: quarterly sales of more than 1.1 billion for the first time EBIT of 35.2 million (previous year: 50.6 million) due to major pre-production spending on new projects First order for wiring systems from the Korean carmaker Hyundai Motor Company Forecast for the year as a whole reaffirmed LEONI AG 32

33 1 st Quarter 2015 Group sales , , , , , ,050.0 in million Q1 Q2 Q3 Q4 in million Consolidated sales increased by nearly 9 percent (thereof + 6 % currency translation, + 4 % organically, 1 % copper price). LEONI AG 33

34 1 st Quarter 2015 Group EBIT Q1 Q2 Q3 Q4 in million EBIT down to 35.2 million due to pre-production spending. LEONI AG 34

35 1 st Quarter 2015 Group net income Q1 Q2 Q3 Q4 in million LEONI AG 35

36 1 st Quarter 2015 Free cash flow* (82) (65) (86) (2) (30) (29) Q1 Q2 Q3 Q4 in million The lower earnings figure and the somewhat larger amount of funds tied up in working capital led to the higher negative free cash flow in the 1st quarter. * Before dividends, acquisitions and purchase or sale of own shares LEONI AG 36

37 1 st Quarter 2015 Key figures in million 01/01 31/ /01 31/ /01 31/ Consolidated sales , ,108.8 EBITDA EBIT adjusted EBIT EBT 30, Net income Equity ratio in % 33.9 % 34.2 % 33.3 % Net debt Capital expenditure (incl. acquisitions) Employees (as at 31/03) 59,884 64,071 70,065 1 Earnings adjusted for the impact of revaluation as part of allocating the prices of major acquisitions, restructuring, impairment of non-current assets, gains on business acquisitions and derivatives relating to business combinations. LEONI AG 37

38 1 st Quarter 2015 Segment reporting Wire & Cable Solutions Wiring Systems LEONI Group in million External sales , ,108.8 EBIT EBIT / external sales 3.6% 4.4% 3.7% 4.3% 5.3% 2.7% 4.0% 5.0% 3.2% LEONI AG 38

39 Outlook Forecast 2015 Again an above-average number of start-ups in the Wiring Systems Division Further increase in capital expenditure of approx. 240 million Sales growth to approx 4.3 billion Increase in EBIT to more than Euro 200 million Equity ratio of more than 35 percent Return on capital employed (ROCE) of approx.14 percent è Preparation for the big boost in sales and earnings in 2016 Forecast 2016 Strong contributions from wiring systems projects started in 2014 and 2015 Significant increase in sales to Euro 5 billion Reduction of start-up costs to normal level Full effect of new efficiency programmes Strong increase in earnings to a 7 percent EBIT margin è Confirmation of the forecast already defined in 2011 LEONI AG 39

40 LEONI Group Consolidated sales by region 100% 90% 80% % Asia/Pacific 60% 50% 25 Americas 40% 81 30% 20% EMEA 10% 0% e 2025e in % LEONI AG 40

41 Financial calendar 2015 Annual General Meeting 7 May 2015 Interim Report 1 st Quarter May 2015 Interim Report 2 nd Quarter and 1 st Half August 2015 Interim Report 1 st 3 rd Quarter November 2015 Preliminary Figures 2015 February 2016 LEONI AG 41

42 Contact Investor relations Frank Steinhart Phone +49 (0) Fax +49 (0) Susanne Kertz Phone +49 (0) Fax +49 (0) Denise Pfefferler Phone +49 (0) Fax +49 (0) LEONI AG 42

43 Appendix LEONI AG 43

44 UN Global Compact Declaration of support As a company operating globally, LEONI has made it its mission to ensure observance of human rights and recognised labour standards at our facilities. This form of responsibility was already taken on in 2003 with publication of the LEONI Social Charta, continued in 2007 with the LEONI Code of Ethics and taken further forward in 2011 by joining the UN Global Compact. Further informationen about the Global Compact Communication on Progress can be found on our website / downloads / corporate responsibility LEONI AG 44

45 LEONI Group Finance structure Long-term finance (> 1 year) Amount Placed Term (in million ) (year) (to year) Borrower s note loan matures 2017 Other bank loans /14/15 matures up to 2017 EIB loan matures 2018 Borrower s note loan matures 2018 Borrower s note loan matures 2019 Borrower s note loan matures 2020 Borrower s note loan matures 2020 Borrower s note loan matures 2022 Borrower s note loan matures 2022 Borrower s note loan matures 2025 Total Credit lines: short- / medium- / long-term credit lines about: 576,5 million As a matter of principal: no covenants / mortgages LEONI AG 45

46 Significant key figures in million in million Sales Growth (index 2010 = 100 %) 2, % 3, % 3, % 3, % 4, % EBITDA EBIT EBT PAT Growth (index 2009 = 100 %) % % % % % Depreciation and amortisation Cash flow from current business operations Investment (cash effective) - Investment in intangible assets and property, plant and equipment - Investment in financial assets and acquisitions Total net debt Equity Gearing Employees (end of period) 55,156 60,745 59,393 61,591 67, Adjustment of various pre-year amounts due to amendment of IAS 19 2 Total net debts / equity LEONI AG 46

47 Significant key figures in % in % EBITDA (in % of sales) EBIT (in % of sales) EBT (in % of sales) PAT (in % of sales) Equity (in % of balance sheet total) Investment 2 (in % of depreciation / amortisation) ROCE 1 3 (in % ) ROCE 2 4 (in % ) ROE 5 (in % ) Adjustment of various pre-year amounts due to amendment of IAS 19 2 Investment in intangible assets and property, plant and equipment 3 EBIT / capital employed 4 PAT BI / capital employed 5 PAT / equity LEONI AG 47

48 Significant key figures per share Shares 1 (million shares) Consolidated net income ( per share) P/E (factor) Dividend (million ) Dividend per share ( ) Dividend yield 2 (in %) BVPS ( ) Market capitalisation 2 (million ) ,775 1,614 Share price closed ( per share) Share price high for the year ( per share) Share price low for the year ( per share) As per yearend 2 Relating to price at yearend 3 Adjustment of various pre-year amounts due to amendment of IAS 19 4 Subject to approval by shareholders at the Annual General Meeting LEONI AG 48

49 Consolidated income statement Sales Cost of sales Change million % million % million % 4,103.4 (3,401.1) (82.9) 3,917.9 (3,240.1) (82.7) (161.0) Gross profit on sales Selling expenses 4 (213.8) (5.2) (196.4) (5.0) (17.4) (8.9) General and administrative expenses 5 (197.4) (4.8) (191.0) (4.9) (6.5) (3.4) Research and development expenses 6 (109.3) (2.7) (106.1) (2.7) (3.2) (3.0) Other operating income (20.8) Other operating expenses 8 (11.9) (0.3) (31.3) (0.8) Result from associated companies and joint ventures (0.3) > 100 EBIT Finance revenue Finance costs 12 (32.6) (0.7) (32.7) (0.9) 0.1 (0.4) Other income from share investments (0.2) (44.8) Income before taxes Income taxes 15 (35.7) (0.9) (25.3) (0.6) (10.3) (40.8) Net income (5.0) Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 49

50 Consolidated statement of financial position Assets 31/12/ /12/2013 of funds Disposition Source of funds million % million % million million Cash and cash equivalents Trade receivables and other financial assets Other assets Receivables from income tax Inventories Assets held for sales Total current assets 1, , Property, plant and equipment Intangible assets Goodwill Shares in associated companies and joint ventures Trade receivables from long-term development contracts Other financial assets Deferred taxes Other assets Total non-current assets 1, , Total assets 2, , Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 50

51 Consolidated statement of financial position Equity and liabilities 31/12/ /12/2013 of funds Disposition million % Source of funds million % million million Current financial liabilities and proportion of long-term financial liabilities Trade accounts payable and other financial liabilities Income taxes payable Other current liabilities Provisions Total current liabilities 1, Long-term loans Long-term financial liabilities Other non-current liabilities Pension provisions Other provisions Deferred taxes Total non-current liabilities Equity Total equity and liabilities 2, , Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 51

52 Consolidated cash flow statement page 1 in million Consolidated net income Adjustments to reconcile cash provided by activities Income taxes Net interest Dividend income (0.1) (0.3) Depreciation and amortisation Other non-cash expenses and income (0.2) 0.3 Result of asset disposals and measurement of assets held for sale Change in operating assets and liabilities, adjusted for the impact of changes in the scope of consolidation Change in receivables and other financial assets (48.3) (49.1) Change in inventories (54.5) (21.2) Change in other assets (12.5) (8.7) Change in provisions (7.9) (3.9) Change in liabilities Income taxes paid (32.7) (23.9) Interest paid (24.2) (31.0) Interest received Dividends received Cash provided by operating activities Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 52

53 Consolidated cash flow statement page 2 in million Capital expenditures for intangible assets and property, plant and equipment (219.7) (153.6) Capital expenditures for other financial assets Cash receipts from disposal of assets and disposal of assets held for sales (incl. liabilities) Income from disposal of a business operation/ subsidiaries less cash and cash equivalents paid thereof: Disposal proceeds: 0 k (previous year: 120 k) Cash and cash equivalents paid: 0 k (previous year: 0 k) Cash used for capital spending activities (218.7) (150.7) Cash receipts from acceptance of financial debts Cash repayments of financial debts (37.6) (251.7) Dividends paid by LEONI AG (32.7) (49.0) Dividends paid to the non-controlling interest shareholders (0.2) (0.6) Cash provided by/ used for financing activities 64.8 (135.7) Change of cash and cash equivalents (26.9) (98.9) Currency adjustment 7.1 (1.4) Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 53

54 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. LEONI has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forwardlooking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and LEONI does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. LEONI AG 54