London STAR Conference 2009

Transcription

1 London STAR Conference

2 Agenda Overview Elica in numbers 2

3 Agenda Overview Elica in numbers 3

4 The kitchen has changed 4

5 and Elica has revolutionized the hood 5

6 The largest product range available in the market 6

7 Elica is a worldwide player industrial footprint German: Gutmann consolidated from Nov 2008 Italy Poland: plant opened in Nov 2005 Mexico: plant opened in Aug 2006 Elica s industrial premises (8 sites, 5 of which in Italy) 7

8 Elica is a worldwide player distribution network Germany: Gutmann consolidated from Nov 2008 Japan: Ariafina consolidated from Jun Sales breakdown Elica active markets Elica direct distribution* Americas 10% Italy 17% Row 9% Rest of Europe 64% * Representative office in Moscow 8

9 Geography and channels Own brands Geographical expansion through direct sales presence - North America (Chicago) - Japan (Tokyo Osaka) - CIS (Moscow) Worldwide leader Market share New channels and clients - Retailers (Darty, El Corte Inglés) - Kitchen producers (Nobia) Client brands Consolidate leadership - New clients - Increase penetration on major clients (focus on the Americas through ElicaMex) Maintain margins - Mix management - Product innovation & design Europe Americas RoW World 35% 9% 2% 16% 9

10 In-house design team and collaboration with international designers International designers David Lewis (Bang & Olufsen) Phoenix (Loewe) Castiglia Associati (kitchen design firm) Design Team Elica 10

11 2004: OM, the first vertical hood 11

12 2006: the new frontier of aspiration 12

13 2007: SPACE, the most silent hood in the world 45db(A) working at 500 m 3 /h capacity 13

14 Lighting October 2008 The Hi-Life Company + = The first multifunctional line of equipment integrating lighting and air purification 14

15 2008/2009: New Generation of Elica Collection 15

16 Agenda Overview Elica in numbers 16

17 Cooker hoods demand evolution* Volume data In the past years 4.6%.. Current trend Change % vs Q1 Q Q1 08 H1 09 ~3% Western Europe -27% -26% CAGR '04-'06 07 vs vs. 07 Eastern Europe (including CIS) Europe -45% -34% -42% -32% North America -40% -35% Demand drivers GDP growth (developing countries) Replacement New housing construction Housing renovation Growth of high income families - 7% Latin America -13% -14% Americas -30% -27% Rest of the World -15% -15% World -25% -24% * Elica Group estimates 17

18 Q2 09 Highlights Weak market: even worse than Q low sales - downturn in Group s most profitable markets - negative mix consumer trading down Temporary shutdowns of production to adjust inventories Very good operating cash flow 18

19 H1 09 Consolidated Income Statement M * H1 09 H1 08 % Net Sales % EBITDA % % % -34.8% EBIT % % % -93.5% Group Net Result % % % -94.1% EPS** Euro cents % % * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation **EPS as at June 30, is calculated by dividing the Net Result pertaining to the Group by the number of ordinary shares outstanding, excluding treasury shares at the same data. 19

20 H1 09 Elica Sales Trend Change % vs. 2008* Cooker Hoods - Overall better than market (-17.0%) - Own Brands: increase (+4.4%) due mainly to Gutmann consolidation, organic performance better than market, overall gaining share in Europe. High-end segment better than market (-9.9%) Europe Americas Q % -52.6% H % -40.0% - Client brands: decrease (-24.5%) with growing market share in Top OEMs and customers portfolio rationalization of low margin/credit risk ones Strong decrease of Electric Motors (-37.7%) Rest of the World Total +13.4% -22.1% -0.6% -20.6% * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 20 20

21 Net Working Capital and Net Financial Position as of June 30 M * Tight credit control in a H1 09 Q1 09 H1 08 H1 09/ 08 tough environment Significant decrease of Net Working Capital (Managerial) inventories Close payables % on annualized sales 15.3% 16.1% 14.7% 0.6 pp management control despite a strong decrease Net Debt (Cash) * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 21

22 Consolidated Balance Sheet as of June 30 M * Net operating fixed assets Net Debt (Cash) Trade receivables Inventories Trade payables (76.1) (116.8) Group equity Minorities Short term assets & (9.1) (5.5) liabilities Net Working Capital % on annualized sales % % Total Shareholders equity Net financial assets Net Capital Employed Total Sources * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 22

23 Consolidated Cash Flow M * Q2 09 Q2 08 H1 09 H1 08 Operating cash Flow (0.7) CapEx (3.5) (5.1) (6.9) (8.3) Cash Flow before financial activities 6.6 (2.8) 5.1 (9.0) Financial operations & others (1.8) (6.1) (1.9) (11.2) Cash Flow to shareholders 4.8 (8.9) 3.2 (20.2) * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 23

24 Net Financial position as of June M * Cash, bank Long-term financial liabilities 6.8 deposits and marketable (20.9) Short-term financial liabilities 46.1 securities Total Financial Liabilities 52.9 Net Debt (Cash): 32.0 M * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 24

25 Manufacturing delocalisation Hoods volume allocation H1 Low Cost Countries 16% 27% Western Europe 84% 73%

26 Cooker Hoods revenues breakdown Value data H1* OWN BRAND 26% 33% CLIENT BRAND 74% 67% * 2008 figures restated after discontinuation of ACEM and 2009 figures include Gutmann consolidation 26

27 New product launches Own brands New versions of high volume products, with more powerful ventilation & sleek user interface Local Russian brand of Elica Group Circus Flat Glass Onda Client brands 66 new products, for 6 OEM clients 27

28 Awards For the second consecutive year Elica has been recognized as the best Italian company in terms of working climate in Europe. 28

29 Awards Elica wins Top Employers reputation from CFR, an international organization that evaluates the best business practices in 10 countries. Elica was selected among the most attractive companies to work in. 29

30 Awards Elica was among the top 10 most innovative companies in the Imprese x l Innovazione 2009 award of Confindustria. 30

31 Brand building: Events Milan, January 14 Elica and Lagostina: serving up innovation together! Elica Showroom hosted the presentation of Lagostina s new collection with a real time cooking show made by chef Csaba Della Zorza. During the event the photgrapher Steeve Iuncker presented his book Pasta. Elica invited retailers and press 31

32 Brand building: Events Mexico City, March 26 Casa Italiana Messico Elica takes part in Casa Italiana Messico, a project organized by ICE (Italian Insitute for foreign trade) to promote the Made in Italy of Design in Mexico. Elica presented Grace by Elica Collection. The exhibition continued until May. Target: designers, architects, press 32

33 Brand Building: Events Milan, April 21 - PescecappaxPescetrullo On the occasion of the Salone Internazionale del Mobile International Furniture Fair 2009 in Milan, Elica - The Ermanno Casoli Foundation - Caterina Tognon Contemporary Art presented PescecappaxPescetrullo. Pescecappa is a prototype cooker hood created by architect and designer Gaetano Pesce. 33

34 Brand building: Fairs Bad Salzuflen, Germany February 9 12: Z.O.W. and Focus Kuche & Bad Elica s top products such as OM Special Edition, Victoria, Gold and Black Stream, Ola and Vogue Metal were exhibited in a 60 m 2 stand. Elica sent 200 invitation s mails to german customers, architects, retailers, press. Elica registered about 150 contacts SADECC, Lyon Eurexpo March 15 17: Le salon professionnel pour le développement de la cuisine & des cuisinistes Elica exposed products such as OM Special Edition, Star, Gold and Black Stream, Ola and Horizonte. Elica invited customers, architects, retailers, press. 34

35 Brand Building: Fairs Atlanta, 1 3 May - K/BIS Kitchen/Bath Industry Show and Conference The world s largest trade event dedicated to the kitchen and bath industry Elica launched the new USA ranges Elica and Elica Collection such as Grace, Star, Twin. Star was voted the Best Product of the show 35

36 Brand building: New advertising campaign The future is not what it used to be Vogue leather OM Special Edition The future of hoods is breakthrough product innovation: sophisticated and silent aspiration technology, surprising new materials such as leather and blown glass, magical moving parts that reveal the hood only when it s needed 36 36

37 Brand building: Elica web-sites visits/month 37

38 Elica business model is OEM business based Own brands Accelerate growth! OEM Better governance! 38

39 Poland and Mexico were a correct strategic move, now the Elica Group looks toward Asia Americas expansion Europe expansion Asia expansion Americas Mexico: bridge to North and South America Break even point: 4 year (2010) Europe Poland became the manufacturing base for OEM business and the strategic bridge to east Europe expansion Asia Manufacturing and selling Limits: enter in the market trough a local partner to be faster 39

40 Product: plus and minus of Elica leadership + brand awareness design product range customer relationship Core Processes Bulldozer _ flexible production brand awareness industrial foot print (WE>LCC) product complexity sourcing balance (WE>LCC) product management Product development Supply Chain Model Octopus Olio One Company! 40

41 Product management: 3 Axis to work on Standard Functions & Characteristics Competitiveness Lighting Filtering Wellness Electronics Green Fan Aesthetics & Design Vision & Route 41 41

42 2009 Outlook - Markets A structural reset is underway - not a temporary crisis - not a drastic and definitive collapse - but a global structural reset, right-sizing markets by approx. 20% 42 42

43 2009 Outlook Elica Group Action Plan Strong Balance Sheet - working capital optimization - lean CapEx, with focused investments in new product innovation Flexible Cost Structure - production capacity alignment with industry demand - lean logistics - streamlining back-office and G&A Adaptive Commercial Approach - realizing benefits of Gutmann/Elica integration in Europe - increasing penetration in OEM customer - keeping market share global leadership 43

44 Disclaimer This presentation contains forwards-looking information and statements about Elica S.p.A and its Group. Forwardlooking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance. Although the management of Elica S.p.A. believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Elica are cautioned that forward-looking information and statements are subject to various risk and uncertainties, many of which are difficult to predict and generally beyond the control of Elica S.p.A.; that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking statements. These risks and uncertainties include, but are not limited to, those contained in this presentation. Except as required by applicable law, Elica S.p.A. does not undertake any obligation to update any forward-looking information or statements. 44