Company Presentation. London Star Event 2006

Transcription

1 Company Presentation London Star Event 2006

2 Introduction to Trevisan Cometal Group Trevisan Cometal is a global leader and the only General Contractor in design, engineering and manufacturing of industrial machinery for aluminium extrusion and finishing. Mainly thanks to patented systems (Effecta e Ezy) the Group is also a relevant player in aluminium profiles coating in Italy and China, mainly in wood grain effects. Trevisan Cometal is an International Group and it is a player pole for the aluminium industry as a whole. Trevisan Cometal is a steady, growing Group. 2

3 Group Structure 3

4 Mission Statement Maintain leadership in industrial machinery for aluminium powder coating and extrusion process. Leadership in coating services wood grain effect Strategic growth in emerging markets. Market leadership in extrusion plants and vertical coating plants Innovation, flexibility, environmentally-friendly solutions Tecnology Know How Growth Dynamic development strategy Geographical diversification Management Experienced and committed 4

5 Business Model Business Unit Engineering Coating Extrusion, Foundry plants and Logs Foundry Powder Aluminium Coating Plant Coating Servces for aluminium Wood grain effects: exploitation of Effecta and Ezy patent. Other technologies. Anodizing Plant Make Strategy Sell Strategy Industrial automation Packaging Direct ownership and management of production facilities for coating services Local partners with well developed customer portfolio Effecta plug-in licensed to independent players in exchange for royalties. 5

6 Key Financials

7 Profit and Loss as of 30 june 2006 High Increase in Profitability Huge Investment Effects of Group Taxation 7

8 Key Figures Profit & Loss Value of Production EBITDA H1 06 vs % H1 06 vs % H H H H EBIT Net Profit H1 06 vs % H H H H

9 Key Figures Value of Production Trend by Division 2002 vs ,6 % + 246,7 % + 146,5 % H

10 Key Figures EBITDA Trend by Division H

11 Reclassified Balance Sheet 11

12 Key Figures Cash Flow 12

13 Coating Division

14 Coating: competitive scenario in Italy Market Background Competitive Positioning Key Success Factors Fragmented demand Main wood grain effects job coater in Italy Ownership of high productivity wood decoration systems: Local Players Mature markets moving to special treatments (wood grain effects) more profitable than RAL Few coaters specialised in wood like effects. Different strategies: Make (Italy and China) or Sell (licence, worldwide) Price / quality differentiations policies Effecta (powder on powder, operating in line along the vertical lines) Ezy (high definition drawing by powder on powder by means of a compact plant) 14

15 From Engineering to Coating: Effecta & Ezy patents Patented technique to give extruded aluminium products a wood grain decorative finishing. A fully internal development. Exclusive plug in on Trevisan plants At present the only fully automated industrial process for ornamental finishing available on the market A cost-effective process: lower costs at high quantity production. High quality and good appearance at competitive prices Highly aesthetic wood grain decorative finishing for aluminium profiles It requires to the Client low capex obtaining high returns, enlarging the potential market of the minor job coaters Compared to the similar machineries available on the market, this innovative plant: much more flexibility and productivity requires less personnel, smaller dimensions and lower energy costs. 15

16 Wood grain technology: ranking Productivity Automation Aesthetic quality Variety of applicable profiles NATURALL SUBLIMALL WOODALL Low High Highly automated technology Best Aesthetic Standards Easily applicable on different profile shapes 16

17 Wood grain technology in TC Group Production Plant TSM * DFV Effecta Koinè MIDA Trevisan Nanhai RAL Effecta EZY Naturall Other Serigraphic Effect Woodall *three production plants Licensor Effecta USA Spain Germany (4) Saudi Arabia China (3) Australia (2) Greece 17

18 TC Group: increase of wooden-like-effects weight Increase 2006 vs Market Mercato Ezy e Effect 1 0 % Non RALlegno Other Altro Wood legno +76% Ezy e Effecta RAL 6 4 % Other Woo 2 6 % -20,0% 20,0% 60,0% 100,0% MonthlyTrend 2006 vs 2005 Ezy and Effecta total ,1 376,2 416,6 Ezy e Effect 1 6 % 301,6 308,8 273,8 255,5 242,2 189,8 164,8 149,4 84,4 226,5 248,2 35,441,5 RAL 6 2 % Other Woo 2 2 % Jan Feb Mar Apr May Jun Jul Aug

19 P&L: Coating Business Unit 000 Dec Dec Dec % vs I-h '05 I-h '06 % vs Value of production % % Ebitda % % Ebitda margin % 7,7% 15,7% 19,6% 18,1% 19,0% Coating is continuing the growth path in terms of revenues Increase also in margins driven by wood-like effects 19

20 Engineering Division

21 Engineering: competitive scenario Market Background Competitive Positioning Key Success Factors Niche market Technological leadership High tecnology, R&D and environmental Friendly solution. Few global engineering suppliers Extrusion market: fragmented but increasing by volumes Innovation and customization More than 150 extrusion plants, more than 135 vetical powder coating plants, more than 45 anodizing plants Installed worldwide Turn Keys plants solution Powder coating Plants: wood Decoration systems Extrusion plants: Cooling systems and foundry Strong growth in emerging markets Production site and sales force in China Reference list 21

22 Cometal Engineering Leader in engineering, manufacturing and assembling of aluminium foundry and extrusion plant Billet shear and furnaces Extrusion press Profile handling system Logs foundry Furnace and heat treatment plants 22

23 Engineering wins-2006 Strong capacity of exploitation of new products: short time to market low capex (mainly internally generated R&D) The Ezy history new patent in september plant sold The packaging history: a new range of products developed in twelwe months Capacity of the Group to develop strong relationships with partners: the Tellkamp history- one contract concluded and an other expected within year end Cometal improvements and efficiency-reduction of break even point High introduction in eastern Europe FTCIM factory- CHINA 23

24 P&L: Engineering Business Unit (*) 000 Dec Dec Dec % vs I-h '05 I-h '06 % vs Value of production % % Ebitda % % Ebitda margin % 23,8% 15,3% 6,7% 4,2% 11,2% Year 2005 penalised by difficult market conditions and start up phase of Foshan. Recovery in margins in Ih 06 vs driven by reductions of costs, improve of efficiency High marginality of new products Decrease in revenues due to change in mix of products (*) Not including Adotta S.p.A., not considered core to the Engineering B.U. 24

25 Extrusion consumption worldwide: consumption s forecasts are positive Extrusion Consumption M tons 14,0 13,5 13,0 12,5 12,0 11,5 11,0 10,5 10,0 9,5 9,9 10,3 10,0 10,4 11,0 11,0 11,3 13,4 Value of extrusion lines forecasted for next 5 years: 250 Euro millions/year 9, Extrusion Consumption M Ton M tons 16,0 14,0 12,0 10,0 8,0 6,0 Americas Europe Italy Germany Russia Others China Japan Russia Germany Italy 1,9 1,1 1,4 0,3 0,4 0,5 2,2 1,8 1,4 0,4 0,5 0,5 2,1 2,3 1,8 0,4 0,5 0,6 4,0 Japan Europe 1,5 1,7 2,1 2,0 China Americas 2,9 2,9 3,6 0,0 Others Total 9,9 11,3 13,

26 Industry Dynamics: Extrusion Market The market is growing, but it is still fragmented in many production sites. China and Russia extrusion consumptions are forecasted to growth relevantly. In Europe buildings applications remain stable, while transportation is strongly growing. The market in Central and South America is significant and growing The North American market has experienced consolidation over the last few years. Increasing demand for quality, faster delivery and very competitive pricing. Per capita aluminium consumption ,6 3,0 4,5 4,6 14,7 19,4 22,5 27,9 28,4 29,0 29,2 30,4 India Russia Brasil China UK Australia France Japan Italy Canada Usa Germany 26

27 What s next

28 New CEO On 25 september has been appointed a new CEO Completion of the transition from an entrepreneurs company to a managerial public company The new CEO profile: aged forty coming from a very large multinational company Italian people with a deep international experience a great experience in the aluminium industry succesfull in business integration sound experience in far east markets A Compensation plan strongly linked to creation of Company value 28

29 Outlook for Coating Division Keep on converting from commodity (plain colours coating) to specialty (wood like effects coating). Increase production of Trevisan Ezy new patented technology in Italian Sites. To fully exploit the increase of productivity and effciency in Aprilia, Elmas and Lecce thanks to the high level of investment performed in Boost of profitability in Effecta Koinè. Continuous growth in China-Nanhai facility. Search of local partners with well developed customer portfolio for JV outside from Italy. Opportunity offered from high quality services (logistics management) Implementation of a strong brand awarness to become the leader in the Italian Market 29

30 Outlook for engineering division Penetration on new markets, and growth in the most profitable niche of demand. To benefit of the new asset of Foshan - China. Cometal: optimization of the cost structure. Re-engineeing and repositioning of some products. JV and integration with engineering operators outside from Italy to reinforce the worldwide leadership (i.e. Tellkamp USA). R&D Launching of new machineries internally generated: Packaging machine: enlarge the plants range available for aluminum extruders and coaters. A new wood-like finish coating plant: high quality finishing standards and low capex for clients. Integration of the existing structure in a unique entity To exploit possibility of strategic alliances and external growht 30