AFG FY 2013 Results 04 March Welcome

Transcription

1 AFG FY 2013 Results 04 March 2014 Welcome 1

2 AFG FY 2013 Results 04 March 2014 Rudolf Graf, Chairman of the Board of Directors & CEO (ad interim) Felix Bodmer, CFO 2

3 Disclaimer AFG Arbonia-Forster-Holding AG is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever for the use of it. The information provided in this document is not intended nor may be construed as an offer or solicitation for the purchase or disposal, trading or any transaction in any AFG Arbonia-Forster-Holding AG securities. Investors must not rely on this information for investment decisions. This presentation may contain certain forward-looking statements relating to the Group s future business, development and economic performance. Such statements may be subject to a number of risks, uncertainties and other important factors, such as but not limited to (1) competitive pressures; (2) legislative and regulatory developments; (3) global, macroeconomic and political trends; (4) fluctuations in currency exchange rates and general financial market conditions; (5) delay or inability in obtaining approvals from authorities; (6) technical developments; (7) litigation; (8) adverse publicity and news coverage, which could cause actual development and results to differ materially from the statements made in this presentation. The AFG Arbonia-Forster-Holding AG assumes no obligation to update or alter forward-looking statements whether as a result of new information, future events or otherwise. 3

4 Agenda 1. Review 2013 (Rudolf Graf) 2. Strategy (Rudolf Graf) 3. Financial Results (Felix Bodmer 4. Outlook (Felix Bodmer) 5. Conclusion (Rudolf Graf) 6. Questions 4

5 Review 2013: Financial key figures Reported net loss, lack of revenue growth AFG Group Net revenues: CHF million (-0.3%) Flat development, despite a major changes in group structure vs EBITDA: CHF million (+16.3%), 7.8% margin Improved mix effects from new business portfolio results in margin expansion EBIT: CHF million (+44.4%), -1.8% margin Reflects impairments at STI/Kitchen Reported net loss: CHF million Driven by CHF 83.4 million loss from discontinued operations 5

6 Review 2013: Key figures future core business Disappointing growth, clearly higher profitability Continued Operations Net revenues: CHF million (+0.3% org.) Still disappointing, as reshaping of group portfolio diverted focus from growth EBITDA adjusted: CHF million (+9.4%), 10.2% margin Successful cost control ensures margin stability, despite lack of growth EBIT adjusted: CHF 62.8 million (+8.5%), 6.3% margin Margin maintained above 6% despite price and margin pressure Net profit adjusted: CHF 35.1 million (+31.0%), 3.5% margin Substantial improvement driven by higher operating result and lower taxes 1 st dividend proposal since 2011: CHF 0.30 per share Enabled through positive development in core business and expected end of portfolio clean up 6

7 Review 2013: Positive achievements Foundation set for future success Portfolio focused, Bleeders sold or separated Allows full focus on expansion towards building envelope and interiors Structure of industrial holding successfully established Organisation in place; lean corporate administration to be established Core business with high growth potential, dedicated initiatives Growth expected to materialise as of

8 2013 Open issues for 2014 Highest priority for new management team STI divestment target to be completed by end 2014 Divestment process initiated, will mark end of portfolio reshaping Industrial holding structure has to reflect size core business Ensure efficient organisation with empowered divisions Execution of Supply Chain and production optimisation Project Footprint at Building Envelope Targeted investment in R&D and innovation Finalisation of system move into x-optimised Capitalise on growth initiatives to boost revenues (sales Hubs) Thorough divisional and regional growth initiatives Consistent integration of acquired units: Dobroplast, PZP HEATING 8

9 New management approach New style in running the AFG Industrial Holding No. 1 Priority: Organic growth Acquisitions, only for portfolio suplementing Thorough execution: No overload of the organisation Lean & efficient corporate organisation: Empower divisions and trust in the leaders you chose Ongoing internationalisation Do not over-promise deliver! 9

10 Agenda 1. Review Strategy 3. Financial Results 4. Outlook 5. Conclusion 10

11 Leading construction components group Mission AFG is a technologically leading international construction-related building supplier convincing through innovative solutions and services for increased room comfort, quality of life and sustainability. Vision We make buildings efficient, safe and comfortable. 11

12 AFG Businesses respond to global market trends Strategic alignment is confirmed Global market trends Group Divisions focus Energy Efficiency Safety & Security Well-Being Building Envelope Internationalisation, production footprint Building Technology Heating, Cooling, Energy optimisation, ventilation XXX XXX XXX XXX XXX XXX Building Security Protection XXX XXX XXX 12

13 The AFG Industry Holding Three profitable core divisions Building Technology Building Envelope Building Security Heating Technology Sanitary Equipment Windows Profile Systems Unique Doors Revs. 2013: CHF 445 Mio. Adj. EBIT 13: CHF 39 Mio. Employees: ca Locations: Plattling, Stribro, Arbon, Dobre, Qingpu Revs. 2013: CHF 411 Mio. Adj. EBIT 13: CHF 31 Mio. Employees: ca Locations: Altstätten, Villeneuve, Pravenec, Lublin, Zambrow Revs. 2013: CHF146 Mio. Adj. EBIT 13: CHF 14 Mio. Employees: ca. 350 Locations : Arbon, Roggwil, Qingpu 13

14 Value creation in all businesses Consistent execution of existing programs Strategic Objectives 1. Industrial Holding 2. Operational Excellence 3. Technological Innovation Management & Performance 1. Revenues & Cost of Sales 2. Procurement 3. Production 4. Growth through Internationalisation 4. Administration 5. Human Resources Right setup structure Right operational framework Technology & product roadmap Accelerate growth and level of internationalisation Focus

15 Growth contributors I Business Unit Heating Technology Products/Systems System Solutions (x-optimised) New products (heat pumps) Innovation: cooling, room ventilation, sub floor convectors (Ascotherm eco) Cross-selling opportunities Markets Germany: Heat pumps Switzerland: Panel heating, industrial heating Russia: Sales Network 15

16 Growth contributors II Business Unit Sanitary Equipment Products/Systems new Cada XS Markets Hubs Russia, China, Middle East (Organisation, Shops, flagship stores) Entering Swiss market Entering Eastern Europe 16

17 Growth contributors III Division Building Envelope Products/Systems Innovation: ventilation in windows Low cost PVC line for Switzerland Aluminium and roof windows (Skylight) New mobile service units (CH) Markets International growth focus on Austria, France, Germany, Italy and Russia Reinforce market presence in Poland 17

18 Growth contributors IV Business Unit Profile Systems Products New applications in safety & security area: fire protection door E30, finger protection door El30 Cross-selling Forster/RWD Schlatter Markets Improving economies in Eurozone to support construction industry Development direct distribution Austria Expansion European markets (DACH) Expansion to new markets through Hubs 18

19 Growth contributors V Business Unit RWD Schlatter AG Products Ecology (FSC, natureplus, EPD*) *Environmental Product Declaration Automation (EBZF, MRL) Einbruchschutz, Brandschutz, Zutrittskontrolle, Fluchtwegtechnik Fire protection, smoke protection New products (Verbundlüfter, Forster/RWDS-Door) Service (Care, Maintenance) Markets Benefit from sales network/hubs with opportunities in Middle-East and Asia 19

20 Economic growth drivers in strategic markets Internationalisation in China Strategic Region Forecasted Growth China <5 50 Urbanisation, Demography, Private Income CHF Mio Opening of three Kermi flagship stores (Heating) Doubling net revenues flat panel radiators 1st Kermi flagship store (Sanitary) Expansion numbers of Kermi flagship stores (Heating) 2nd flagship store Sanitary (Beijing) Penetrate sanitary project business Expansion production steel profiles in Qingpu (from 1 to 2 shifts) Net revenue +29% y-o-y Increase profile business with private investors Forecast net revs. +40% y-o-y 20

21 Economic growth drivers in strategic markets Internationalisation in Russia Strategic Region Forecasted Growth Russia Governmental Investments, Private Demand <30 > CHF Mio New Business Model Heating with extended service & local warehouse Development sales network for Sanitary Several projects in Sochi Reorganised distribution for Forster profile systems Net revenues +7.5% y-o-y Development regional sales network Heating Doubling presence in regional sanitary exhibitions Technoparc Skolkovo for Forster profile systems Expand local sales organisation Forecast net revs. +50% y-o-y 21

22 Economic growth drivers in strategic markets Internationalisation in Middle East Strategic Region Forecasted Growth ME 15 Geographic Intersection, 1 Expats Inflow CHF Mio. ***** Anjum Hotel in Mekka (1 600 shower enclosures) Doubled net revenues Forster profile systems Implementing HUB structure Development of regional Sanitary distribution network Double net revenues for Forster profile systems (Oman airport) Implementation and Development of local sales organisation Net revenues +50% y-o-y Forecast net revs % y-o-y 22

23 Agenda 1. Review Strategy 3. Financial Results 4. Outlook 5. Conclusion 23

24 Income Statement AFG Group As reported in million CHF 2013 in % 2012 in % Net revenues 1' ' Cost of material and goods Personnel expenses Other operating expenses EBITDA Depreciation, amortisation, impairments EBIT Financial results Result before income tax Income tax expenses Group result Total Ø-Employees 6'910 5'736 24

25 Income Statement Continued Operations Core Business as reported in million CHF 2013 in % 2012 in % Net revenues 1' Cost of material and goods Personnel expenses Other operating expenses EBITDA Depreciation, amortisation, impairments EBIT Financial results Result before income tax Income tax expenses Group result from continued operations Group result from discontinued operations after taxes Group result

26 Reconciliation to adjusted numbers AFG Group Impairments at STI/Kitchens impact profitability in million CHF Actual 2013 Division HTS Division KR Division ST Division STI Others 2013 Without one-time effects Net revenues 1' '285.5 EBITDA EBIT Group result Presentation of the respective one-time effects on the immediate result line without disclosure of the impact on the subsequent line items. 26

27 Adjusted Income Statement AFG Group Improved due to Desinvestments/Acquisitions in million CHF % Net revenues 1' ' Cost of material and goods Personnel expenses Other operating expenses EBITDA in % of net revenues Depreciation, amortisation EBIT in % of net revenues Financial results Result before income tax Income tax expenses Group result

28 Adj. Income Statement Continued Operations Higher revenues, group result improved in million CHF % Net revenues 1' Cost of material and goods Personnel expenses Other operating expenses EBITDA in % of net revenues Depreciation, amortisation EBIT in % of net revenues Financial results Result before income tax Income tax expenses Group result

29 Net revenues by Division / Country AFG Group Reflects Acquisition & Desinvestments Net revenues by Division Net revenues by Country 5% 8% (5%) (10%) RoW 25% (20%) 14% (19%) 35% (35%) Germany 27% (29%) Switzerland 48% (51%) 38% (31%) Heating and Sanitary Kitchens and Refrigeration Surface Technology Figures in brackets represent last year's figures. Windows and Doors Steel Technology 29

30 Net revenues / EBITDA adjusted / EBIT adjusted Flat revenues, margins slightly up in million CHF 1' % 1'600 1'400 1'384 1'414 1'347 1'289 1' % 14.0% 1' % 1' % % % % % % Net revenues EBITDA adj. EBIT adj. 30

31 EBITDA margin, adjusted EBITDA- / EBIT-margins per Division Impact from price pressure in Core Divisions 20% 10% 12.9% 12.3% 10.9% 10.9% 5.5% 8.8% 1.5% 0% -10% -0.8% -2.1% -0.4% % Heating and Sanitary Windows and Doors Kitchens and Refrigeration Steel Technology Surface Technology EBIT margin, adjusted 20% 10% 9.6% 8.8% 7.6% 7.2% 7.5% 0% -10% -3.2% -3.8% 0.5% -6.5% % -20% Heating and Sanitary Windows and Doors Kitchens and Refrigeration Steel Technology Surface Technology 31

32 Balance Sheet Increased equity-ratio despite impairments in million CHF 1'200 1' Current assets 51.5% Non-current assets 48.5% Current assets 51.7% Non-current assets 48.3% Current liabilities 35.9% Non-current liabilities 28.0% Shareholders' equity 36.1% Assets 2012 Assets 2013 Liabilities and shareholders' equity 2013 Current liabilities 25.2% Non-current liabilities 42.7% Shareholders' equity 32.1% Liabilities and shareholders' equity

33 Free Cash Flow 1) Clearly positive without acquisition effect in million CHF ) ) Cash flow from operating and investing activities 2) Free cash flow without acquisitions and desinvestments 33

34 Development of Investments Capex of CHF 44 Mio. below previous years in million CHF Property, plant, equipment Intangible assets Acquisition of subsidiaries 34

35 Changes in Operating Net Working Capital Slight increase driven by STI / Windows & Doors in million CHF % 18.0% 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Operating net working capital % Net revenues Operating NWC = Accounts receivable + inventories accounts payable advances from customers 35

36 Net Indebtedness and Leverage Ratio Solidly financed at 1.5x net debt / EBITDA in million CHF X 0.5 X X X 2.0 X X X Net indebtedness Leverage Ratio 36

37 Maturities of Financial Debt Financial flexibility maintained with synd. loan in million CHF Bond , CHF 200 million US private placement , USD 160 million Syndicated loan , CHF 250 million Others 37

38 Agenda 1. Review Strategy 3. Financial Results 4. Outlook 5. Conclusion 38

39 Looking ahead to the New AFG Revenues and adj. EBIT of future Core business Net revenues, in million CHF % Division Building Technology Division Building Envelope Division Building Security Others / Elimination Total 1' EBIT adj., in million CHF % Division Building Technology Division Building Envelope Division Building Security Others / Elimination Total

40 Net revenues by Division/Country Core Business Core business Net revenues by Division Net revenues by Country 15% (15%) RoW 27% (22%) 41% (35%) 44% (50%) Germany 29% (31%) Switzerland 44% (47%) Building Technology Building Envelope Building Security Figures in brackets represent last year's figures. 40

41 Building Technology division Heating Technology & Sanitary Equipment in million CHF, resp. in % Net revenues Adjusted organic growth -0.3% -2.1% ~ 3% EBITDA margin, adjusted 12.9% 12.3% EBIT margin, adjusted 9.6% 8.8% > 8% Outlook and initiatives 2014: Focus on growth initiatives Develop products for refurbishment segment Add other components into room climate system Roll-out hub concept 41

42 Building Envelope division Windows in million CHF, resp. in % Net revenues Adjusted organic growth -3.8% +2.1% 1-3% EBITDA margin, adjusted 11.0% 11.5% EBIT margin, adjusted 7.3% 7.5% > 7% Outlook and initiatives 2014: Consistent integration of Dobroplast Key priority project: Footprint - Supply Chain and production excellence Pressure on sales prices to be counter-acted with lower COGS Opportunities from innovations (e.g. Ego Fresh MINERGIE compatible) 42

43 Building Security division Doors & Profile Systems in million CHF, resp. in % Net revenues Adjusted organic growth +1.1% +3.2% 3-5% EBITDA margin, adjusted 9.4% 11.4% EBIT margin, adjusted 7.3% 9.4% > 8% Outlook and initiatives 2014: Opportunities from new European permissions Benefit from international sales network / hub strategy Mutual benefit from cross-selling Complement natureplus offering with new products 43

44 AFG s mid-term targets Getting gradually at 8% EBIT-margin Financial targets 2015: Growth 3-5% p.a. EBIT-margin >8% ROCE >10% realisticly achieved in 2016/17 FCF >CHF 50 million 40% Revenues outside core markets D/CH realisticly achieved in 2016/17 Net debt < CHF 200 million ( x EBITDA) 44

45 Outlook 2014 AFG Group Heterogeneous regional trends: - Core markets CH / D stable on high level - Growth opportunities in Eastern Europe, Russia and Middle East Selective investments into organic growth will pay-off midterm: - Project Footprint at Building Envelope (Windows) - Completing system / heat pumps at Building Technology - Sales & distribution optimisation and cross-selling at Building Security Infill acquisitions to complement attractive product portfolio Financials: - Organic growth - Stable margins, despite major initiatives and continued price pressure - First profitable year since 2010 expected for AFG Group 45

46 Agenda Important events 2014 / April 2014 Annual General Meeting August 2014 Half-year results November 2014 Investors day 22 January 2015 Release of 2014 net revenues 03 March 2015 Financial media / analyst s conference presenting 2014 results 46

47 Agenda 1. Review Strategy 3. Financial Results 4. Outlook 5. Conclusion 47

48 Conclusion & key takeaways 1. STI divestment marks end of portfolio clean-up 2. Group strategy is fully confirmed 3. Priorities of management: Execution and Growth 4. Focus on organic growth without any transformative acquisitions; priority on integration of acquired units (Dobroplast, PZP HEATING) expected to be 1 st profitable year for AFG since 2010, Group remains committed to continue its dividend payments 48

49 Your questions 49

50 Thank you 50