PKC Group Plc. Investor Presentation Q4/ February Matti Hyytiäinen President & CEO

Transcription

1 PKC Group Plc Investor Presentation Q4/ February 2013 Matti Hyytiäinen President & CEO 1

2 Strong Performance During Year 2012 The Highlights Successful integration of AEES companies into PKC. New customers, increased sales to current customers in new market areas. Free cash flow of EUR 3.0 per share. Dividend up by 17%, the proposal is EUR 0.70 per share. 2

3 10-12/2012 Highlights Business Environment European truck production volumes remained on a same level as Q3 whereas in NA they continued to decrease. PKC s Operations New customers won. Capacity adjustments continued. Recovery of truck production gained momentum in Brazil. PKC s Financial Performance Strong cash flow driven by actions to reduce the NWC. EBITDA burdened by low December volumes. Higher NRIs. 3

4 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 ,759 employees globally at the end of 2012 PKC Group Plc is listed in NASDAQ OMX Helsinki Ltd. 4

5 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 5

6 PKC Group, Executive Board President & CEO Matti Hyytiäinen WIRING SYSTEMS EUROPE WIRING SYSTEMS NORTH AMERICA WIRING SYSTEMS SOUTH AMERICA ELECTRONICS BUSINESS DEVELOPMENT & APAC FINANCE LEGAL & CORPORATE DEVELOPMENT President, WS, Europe Jani Kiljala President, WS, North America Frank Sovis President, WS, South America Pekka Korkala President, Electronics Jarmo Rajala Senior Vice President, Business Development & APAC Jyrki Keronen CFO Juha Torniainen General Counsel Sanna Raatikainen 6

7 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) 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 Hong Kong, China Suzhou, China (M) (M) Wiring Systems business Electronics business Manufacturing 7

8 PKC Sales Split 8

9 Geographical Split 9

10 Key Figures, 1-12/2012 EUR million 1-12/ /11 Change % 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 10

11 Key Figures, 10-12/2012 EUR million 10-12/ /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 11

12 Key Figures, 12/2012 EUR million 12/12 12/11 Change % Goodwill Intangible assets Property, plant and equipment Others Total non-current assets Inventories Trade receivables Cash and cash equivalents Others Total current assets Total assets

13 Key Figures, 12/2012 EUR million 12/12 12/11 Change % Total equity Total non-current liabilities Trade payables Other current liabilities Total current liabilities Total liabilities Total equity and liabilities

14 Key Figures, 1-12/2012 EUR million 1-12/ /11 Change % Net cash from operating activities Cash flow after investments Net working capital Net debt ROI, % Equity ratio, % Gearing, % No. of employees at closing 19,759 21,

15 Key Figures, 1-12/2012 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, % 15

16 Key Figures, 1-12/2012 Net Investments EUR million Cash Flows after Investments EUR million Return on Investment (ROI), % Earnings per Share (EPS) % EUR 16

17 Key Figures, 1-12/2012 Personnel Personnel at the end of report period at the end of report period -9.8% R&D Personnel R&D Expenditures at the end of report period EUR million 17

18 Wiring Systems Business Segment 18

19 Key Financials, Wiring Systems EUR million 1-12/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT EUR million 10-12/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

20 Net Sales, Wiring Systems EUR million 20

21 Adjusted EBIT, Wiring Systems EUR million Illustrated net of non-recurring items 21

22 Key Customer Segments Trucks & Buses Light vehicles Engines Recreational Products Agricultural, Forestry and Construction Equipment 22

23 PKC Group Truck Market Share Globally North America Europe Brazil Heavy Trucks Class 8 Medium Trucks PKC Other Class 5-7 Source: ACT report, January 2013, LMC Automotive forecasting Q4/2012. Note: Europe comprised of EU27 + Efta 23

24 Heavy Truck Production, EU27+ EFTA Trucks >16t, units EURO 6 year Source: LMC Automotive forecasting Q4/

25 Medium Truck Production, EU27+ EFTA Trucks <16t, units EURO 6 year Source: LMC Automotive forecasting Q4/

26 Heavy Truck Production, North America Trucks >16t, units EPA 2014 year Source: LMC Automotive forecasting Q4/

27 Medium Truck Production, North America Trucks <16t, units EPA 2014 year Source: LMC Automotive forecasting Q4/

28 Light Vehicle (Pick-up and SUV) Production, North America Units year Source: LMC Automotive forecasting Q4/

29 Heavy Truck Production, Brazil Trucks >16t, units EURO 5 (Brazil) year Source: LMC Automotive forecasting Q4/

30 Medium Trucks Production, Brazil Trucks <16t, units EURO 5 (Brazil) year Source: LMC Automotive forecasting Q4/

31 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 31

32 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 32

33 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 33

34 Electronics Business Segment 34

35 Key Financials, Electronics EUR million 1-12/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT EUR million 10-12/ /11 Net sales EBIT before non-recurring items % of net sales Non-recurring items EBIT

36 Net Sales, Electronics EUR million 36

37 Adjusted EBIT, Electronics EUR million Illustrated net of non-recurring items 37

38 Electronics Segment, 1-12/2012 The economic uncertainty in Europe and industrial investment cautiousness of companies globally affected the demand for electronic appliances. Volumes of renewable-energy and energy saving products including smart grid solutions on the market continued to be good. The increased use of electronics in vehicles has increased the demand of vehicle electronics accordingly. 38

39 Electronics Business Provides design and manufacture services to industrial electronics, telecommunications 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 Factories in Finland, China and Russia 39

40 Products and Industrial Segments Products Power supply units Electronics control units Testing equipment Electronics service devices Industrial Segments Energy Industrial electronics Telecommunication Security Vehicle computers Security products 40

41 Outlook for the Future 41

42 Market Outlook European heavy and medium truck production is estimated to decrease by 8% compared to The general economic uncertainty is estimated to keep the commercial vehicle demand in Europe at a lower level especially during the first half of In the second half, the production volumes are estimated to increase due to transition to Euro 6 emission standard. North American heavy duty truck production is estimated to decrease by 5%, medium duty truck production to increase 10% and light vehicle production to remain at 2012 level. It is estimated that the production volumes of trucks will increase gradually throughout the year. Brazilian heavy duty truck production is estimated to increase by 14% and medium duty truck production by 48% compared to The governmental incentive program to support the purchase of new trucks is ongoing. The continuation of the program is decided during year The continuation of the program may have an impact on the production volumes. PKC s market outlook is further impacted by some light vehicle and component programs that are near end-of-life-cycle and will be ramped-down in Industrial investment cautiousness of companies globally is estimated to keep the demand of industrial electronic appliances not more than on a current level. Volumes of renewable-energy and energy saving products including smart grid solutions are likely to remain good. 42

43 PKC Group s Outlook PKC Group estimates its full year 2013 net sales to be lower than in 2012 and estimates its comparable operating profit excluding nonrecurring items to reach 2012 level. In 2012 PKC s net sales were EUR million and comparable operating profit excluding non-recurring items was EUR 51.5 million. 43

44 Events after the Financial Year PKC puts emphasis on Asia, President & CEO to relocate to Hong Kong. PKC is establishing NPI-centers (New Program Introductioncenters) in Keila, Estonia and Curitiba, Brazil. PKC has decided to close the operations in Ireland and transfer its production to other existing facilities in Mexico and Germany. PKC Group is studying the options for its metal stamping manufacturing site in Traverse City, Michigan, USA, including the potential sale of the business and its operations. 44

45 Shareholders Major shareholders % Ilmarinen Mutual Pension Insurance Company 10.2 AS Harju Elekter 6.4 OP-Focus Non-UCITS Fund 3.2 Varma Mutual Pension Insurance Company 2.7 Takanen Jorma 2.7 OP-Finland Small Firms Fund 2.4 Laakkonen Mikko 1.9 ODIN Finland 1.6 Nordea Nordic Small Cap Fund 1.4 Eestilä Matti 1.4 Fondica Nordic Micro Cap 1.3 Mutual Fund Evli Finnish Equity 1.2 OP-Delta Fund 1.1 Tukinvest Oy 1.0 Savings Bank Finland Fund 0.9 Total ,853 owners 45

46 Thank You! 46