Financial Results Investor Presentation

Transcription

1 Financial Results Investor Presentation

2 SAFE HARBOR STATEMENT Certain statements in this slide show, including those addressing the Company s beliefs, f, plans, objectives, estimates or expectations of possible future results or events, are forward looking statements. They are based on the assumptions, beliefs and expectations of our management team as of the date this slide show was prepared. Forward looking statements involve known or unknown risks, including general economic and business conditions, and conditions in the industry we operate. Forward looking statements may also be affected if our assumptions turn out to be inaccurate. Consequently, no forward looking statement can be guaranteed and actual future results, performance, or achievements may vary materially from those expressed or implied by such forward looking statements. For additional information concerning other factors that may affect the Company s current and future business, results of operations and financial condition, we suggest you review the Company s filings with Borsa Italiana. The Company undertakes no obligation to update the forward looking statements to reflect events or circumstances that may arise after the date hereof. 2

3 Business Overview

4 BUSINESS OVERVIEW GEFRAN SUPPLIES automation components and systems to manufacturers of industrial machinery on a global basis. It operates 100% in the capital goods, B2B segment. GEFRAN Industrial machine manufacturers Cons/Ind goods manufacturers End users Drives Motion control of CC and AC motors Sen nsors Measurement of process variables ibl Automatio on componen nts Hardware & Software for indication and control of process variables 4 4

5 BUSINESS OVERVIEW THREE PRODUCT FAMILIES Product Family Drives Sensors Automation Components Product Types Inverter, Servo drive, DC Converter, PV inverter. Pressure, Position, Temperature, Force. Industrial PC, PLC, Remote I/O, HMI, Controllers and Indicators, SSR, Software. Industries Served HVAC, elevators, escalators, photovoltaic Metal, plastics, wood, glass, packaging Mobile hydraulic, solar, test benches, textile Heat treatment Competitive Position Global leader in elevators and escalator solutions. Technology leader thanks to design and production of key elements. Italian leader in automation solution for plastic OEMs. High level of customization. Share in Turnover 45% 29% 26% % turnover per geographical area Italy 35% Eu 18% America 10% Asia 37% Italy 23% Eu 36% America 20% Asia 21% Italy 51% Eu 28% America 10% Asia 11% 5

6 Drives regulate the motion of CC and AC motors. BUSINESS OVERVIEW InverterLift Servo DigitalDC DC AC inverters PV Inverter Gefran drives have 3 major markets: Industrial applications: Gefran products are utilized by industrial business partners to produce machines that work on metals, plastics, paper Within the course of 2011, Gefran developed specific products to be used also in water treatment and HVAC industries. Gefran products for the elevators and escalators segment are continuously developed in line with technological changes and safety solutions Having generated 45% of revenues, Drives is the largest product family for Gefran. Competitive Landscape Global market for Drives is estimated to be as big as 1.6 bn*, and the top 3 players, namely Rockwell, Siemens and ABB, together account for an estimated 30%* of the market. Gefran, with a market share of less than 1% is among the niche and focalized players. GefranPVinvertersthataresofarutilizedinthe local/italian photovoltaic industry will be marketed to new markets such as South Africa, India as well as other European countries. In the elevators and escalator solutions segment, Gefran is a global leader. *Gefran estimates 6

7 BUSINESS OVERVIEW Sensors are devices for the measurement ofprocess variables like pressure, position, temperature and force.. Pressure Linear position Melt pressure Temperature transducer sensor sensor sensors Loadcells Having generated 29% of revenues, Sensors is the second largest product family for Gefran. Gefran sensors are used in a variety of industries like wood, plastic, mobile hydraulic, metal, solar, test benches and textile Competitive Landscape Global sensors business is composed of only small sized niche players just like Gefran. Thanks to in house design and production of key elements, Gefran is a technology leaderin this segment. 7

8 BUSINESS OVERVIEW Automation components are products designed for indication and control of process variables. Industrial PC Operating panels Software PLC Remote I/O Indicators Controllers Having generated 26% of revenues Automation components is the third largest product family for Gefran. Gefran offers its clients the ability of combining HW and SW devices, developing application technologies, and a high level of customization. Competitive Landscape Similar to the Drives, Automation Components business includes large multinational players. In addition, there are small niche players with a size similar to Gefran s. Gefran s competitive advantage is its high level of customization as well as full service coverage to clients. Specific and focused know how in the temperature control process. 8

9 BUSINESS OVERVIEW AN INTEGRATED BUSINESS PARTNER 877 employees worldwide (including administrative staff) of which: R&D Production Marketing Sales/Distribution Adm. Staff Gefran has 50 years of know how in industrial automation It develops its proprietary technology for the key steps of design and manufacturing It has technical and technological cooperations with global industry leaders And it has a uniquely complete product line for industry control. 9

10 R&D TECHNOLOGY DEVELOPMENT BUSINESS OVERVIEW Stock Data and Shareholding Structure As the technological evolution of its products is an important factor for potential future growth, Gefran typically invests around 5% of its turnover to R&D activities which are concentrated mainly in Italy in company laboratories located in Provaglio d Iseo and Gerenzano. Around 10% of the total workforce is dedicated to R&D activities. 10

11 BUSINESS OVERVIEW GEOGRAPHICAL REVENUE BREAKDOWN North America 9% Lt Latam 4,1% Europe 26% Italy 32,5% Asia 27% Rest of world 0,7% Nearly 70% % of revenues are generated outside Italy 11

12 BUSINESS OVERVIEW PRODUCING IN 5 DIFFERENT CONTINENTS Gefran has 4 production plants in Italy where it produces the full product mix (drives, sensors and automation components), which are then exported on a global basis. basis In addition, the group has five more production sites in different parts of the world: ld USA S (produces ( d sensors), ) Brazilil ((produces d automation i components), ) China Chi (produces sensors and drives), and Germany (produces drives). GEFRAN SpA Italy During (5years), Gefran invested a total of around 47 mn, and a major part of these investments were to increase the production capacities, renew the machinery and production sites. Gefran China Gefran USA Gefran G f Germany Gefran B il Brasil Production Site Gefran Enertronica 12

13 BUSINESS OVERVIEW MARKETING, DISTRIBUTION & SALES Gefran has direct presence in 14 different countries ((includingg the representative p office in Taiwan)) via its own subsidiaries. In addition, the Company sells its products via 65 distributors (in 52 different countries) with whom Gefran established stable and long long term relations. GEFRAN SpA Italy Gefran UK Gefran Germany Having recently completed its investments in capacity, Gefran now targets to focus investments in marketing and distribution. Gefran Belgium Gefran USA Gefran China Gefran France Gefran Switzerland Gefran Taiwan Gefran Spain Gefran Brasil Gefran India Gefran Enertronica Gefran Singapore Commercial Site/Subsidiary 13

14 Financial Results at 31 December 2012

15 FINANCIAL RESULTS 2012 highlights Revenues: the decrease by 5,7% is concentrated in Italy and China, while the otherterritoriesarepositively growing (+8%) Costs & Margins in 2012 the margins were reduced due mainly to the decrease in sales volumes, the decrease in margins for the PV industry and to rising ii costs from expansion of sales and marketing structure R&D investment still at 6% of turnover NFP Gefran generated a Cash Increase in 2012, managing g to generate a significant improvement in the Net Financial Position

16 FINANCIAL RESULTS 2012 highlights Orders received in the year and orders backlog at 31 st December 2012 are increasing vs % +31%

17 PROFIT & LOSS at 31 th December 2012 FINANCIAL RESULTS dec2012 % 31dec2011 % Δ Revenues % % 5,66% Cons. of material and products ,7% ,7% 0,82%, % Value Added ,3% ,3% 8,84% Operating Costs ,6% ,7% 4,19% Personnel Costs ,7% ,2% 5,33% Inc. for in factoryworks ,9% ,8% 0,52% EBITDA ,9% ,3% 58,31% Amm/Depr ,2% ,4% 11,25% EBIT 823 0,6% ,8% 93,31% Financial i Exp ,0% 10% ,9% 09% 2,52% Taxes ,0% ,9% Net Profit after min.int ,4% ,9% 92,91% Revenues decrease by 5,7% : Italy: lack of sales in PV market and the adverse macroeconomic environment, slowdowns in Asia and Brasil, very good results in Us and rest of Europe ThedropinEBITDAwasduetothemixof product sold, the declining of the PV margins and the increase in sales efforts which brought more operative costs. 17

18 FINANCIAL RESULTS 2012 highlights 11,2% +2,9% +3,8% Revenues by segment Ebit margin by Ebit margin by segment

19 FINANCIAL RESULTS REVENUES AND MARGINS BREAKDOWN Product Family Drives* Sensors* Automation Components * Total** in 000 Dec2012 Dec2011 Δ Dec2012 Dec2011 Δ Dec2012 Dec2011 Δ Dec2012 Dec2011 Δ Revenues % ,8% 38% ,9% 29% ,7% 57% EBITDA n.s ,3% ,3% EBITDA % 2,2% 10,9% 22,7% 24,3% 1,7% 4,7% 5,8% 13,2 EBIT n.s ,9% n.s ,3% EBIT % 7% 7,1% 17,6% 19,3% 3,6% 0,1% Drives: the 2012 turnover is down 11,3% compared to The reduction applies in particular to the Italian market, where the products for the photovoltaic industry decreased by 24%, and for the industrial sector by 5%. In Asia the reduction is equal to 20%. The other European countries and the U.S. market instead have yielded positive results, growing by 22% and 29%. Sensors: The 2012 turnover increased compared to 2011 by about 3.8%. Growth was important in the North American market (+21.5%) and in the European market (+7.8%) due to the significant growth in France, Germany and Spain, and on the Asian (+3.4%) for improvement in India. Some difficulties in sales in Italy ( 7.1%) and in the South American market ( 6.3%). Automation Components: Total revenues were up compared to 2011, rising from million to million (+2.9%). The sales market shows a slight decrease ( 3.1%), while are increasing exchanges with other businesses, in particular to the drives business * Including Intercompanies ** Excluding Intercompanies 19

20 BUSINESS OVERVIEW GEOGRAPHICAL REVENUE BREAKDOWN N. America 31 Dec Dec 2011 Sales 11.85mn 9.69mn % in total 9% 7% Europe 31 Dec Dec 2011 Sales 34.11mn 32.10mn % in total 26% 23% Italy 31 Dec Dec 2011 Sales mn mn % in total 32.6% 35% Latam 31 Dec Dec 2011 Asia 31 Dec Dec 2011 Sales 5.42mn 5.66mn Sales 36.24mn mn % in total 4.1% 4.1% % in total 27.6% 30.2% RoW 31 Dec Dec 2011 Sales 0.97mn 1.03mn % in total 0.7% 0.7% More than 70% of revenues are generated outside Italy 20

21 FINANCIAL RESULTS BALANCE SHEET 000 Dec 31, 2012 Dec 31, 2011 Inventories Trade receivables Trade payables (17.405) (19.292) Other net assets/payables (7.133) (8.073) Current funds (1.263) (2.007) Net Working Capital Net Non Operating Capital Net Invested Capital Shareholders' Equity (72.454) (74.984) Short term Financial Debt (5.589) (4.119) Long term Financial Debt (20.316) (24.605) Net Financial Position (25.905) (28.724) 21

22 FINANCIAL RESULTS NET FINANCIAL POSITION AT THE END OF DECEMBER 2012 NFP Dec 2011 Gross cash flow Working capital Capex Dividends and other NFP Dec 2012 (28.724) (7.068) (3.473) (25.905) The working capital decrease by M vs. December 11, thanks to inventory and trade receivables reduction 22

23 FINANCIAL RESULTS CASH FLOW '000 Dec, Dec, Gross Cash flow Change in Working Capital (9.498) Operating Cash flow Cash flow used in Capex and investment activities (7.068) (9.549) Free Cash flow (6.864) Cash flow from(to) financing activities Dividends paid and Other (2.246) 246) (2.478) Opening Cash & Cash equivalents Cash Increase (Decrease) (218) Closing Cash & Cash equivalents

24 BUSINESS OVERVIEW CAPEX Totale Tangible Assets Intangible assets

25 2013 Outlook Q&A and Contact

26 2013 OUTLOOK 2012 in line with expectations: the contraction of the economic performance is due to the increased costs associated with development and penetration initiatives in selected foreign countries. In addition, however, came the reduction in sales in Italy and in China and the reduction for margins in the PV market in Italy, following the reduction of tariffs. Strong cash generation and consequent improvement in the net financial position of about 10% 2013 opens with mixed signals: A general world economic slowdown in the fourth quarter, but signs of a possible economic recovery. Confidence of investors, businesses and consumers increased slightly. Very difficult situation on the Italian market, where the macroeconomic data already negative are getting worse, and the outcome of elections added political uncertainty. Performance varied from a geographical point of view: more development opportunities in some countries, China, USA, Germany, India, in addition to South Africa, where the first results of the productive investment will occur in the second half, a much more difficult situation on the Italian market. The great focus to the dynamics of costs will continue, with a firm control of the determinants of net working capital with an adequate level of investment for further development 26

27 CONTACT Giovanna Franceschetti Investor Relations Director Via Sebina, Provaglio d Iseo (BS) Italy Tel Fax giovanna.franceschetti@gefran.com f 27