General Meeting of Shareholders. Kendrion N.V. Monday 6 April Agenda 6 April 2009

Transcription

1 General Meeting of Shareholders Kendrion N.V. Monday 6 April 2009 Agenda 6 April Kendrion new style" 2. Most important developments Key figures Effects of sale of Distribution Services 5. Normalisation of 2008 results 6. Further explanation of business units 7. Risk Management & Corporate Governance 8. Recent developments and cost-reducing measures 9. Financial position 10. Dividend payment 11. Goals and outlook 2

2 1. Kendrion "new style" - 4 focused business units - Revenue approximately EUR 200 million (in 2008) - Risk spread across a large number of industrial markets - Support by Kendrion Group Services 3 Kendrion new style" 4

3 Kendrion committed to being a high-performer in selected business units Mission Strategy Objectives To develop business units that have strong international market positions in selected business-to-business niche markets and are market leader whenever possible To develop leading positions in business-to-business niche markets To create operational and commercial synergy between companies and each business unit To achieve efficiency improvements at the companies Organic Growth > 10% ROI > 17.5% 5

4 Breakdown of revenue Kendrion 22% 28% 33% 17% Industrial Magnetic Systems Passenger Car Systems Industrial Drive Systems Commercial Vehicle Systems 8

5 Kendrion's strategy - Clear profile as an international, high-tech and rapidly growing company - Concentration on electromagnetic systems and components - Niche market leadership (no. 1 or 2 positions) - Considerable growth targets (EUR 350 million in revenue in 2 to 3 years) - Targeted acquisitions in primarily industrial activities - Financially strong 9 2. Most important developments

6 Most important developments in Sale of Distribution Services - Realisation of a focused company with a clear profile - Book profit in 2008 of EUR 2.8 million, approximately EUR 10 million in Q Organic growth of approximately 4% - Economic conditions deteriorated significantly, particularly in Q Cost-reducing measures implemented in Q Good integration of Linnig Antriebstechnik - Acquisition of Tri-Tech LLC in USA - Strong financial position Key figures

7 Key figures 2008 (1) Operating profit Net profit fourth quarter 2007 fourth quarter % Continuing operations Continuing operations Revenue % EBITA % Full year 2008 Full year 2007 % Continuing operations 1 Continuing operations 1 Revenue % EBITA % 1 Including central costs 13 Key figures 2008 (2) - Solvency 33% (pro forma > 60%) - Considerable investments in projects (EUR 13.5 million with depreciation of EUR 8.3 million) - Good free cash flow (EUR 12.9 million, with continuing operations accounting for EUR 3.7 million of this amount) 14

8 4. Effects of sale of Kendrion Distribution Services 15 Effects of sale of Distribution Services - Servico sold to Robert Bosch GmbH (closing 22 December 2008) - Vink Group sold to Edmundson Distribution Limited (closing 12 February 2009) - Net book profit in 2008 EUR 2.8 million - Book profit Servico EUR 9.2 million - Impairment goodwill Vink minus EUR 5.0 million - Sales costs minus EUR 1.4 million - Net book profit in 2009 EUR 10 million - Book profit Vink EUR 15.0 million - Impairment deferred tax assets, sales costs and other costs minus EUR 5.0 million - Total net book profit resulting from sale EUR 12.8 million 16

9 5. Normalisation of 2008 results 17 Normalisation of 2008 results Q1 Q2 Q3 Q4 Total Revenue EBITA Amortisation expenses Interest charges Profit before tax Taxes Net profit Only Electromagnetic + Group Services Q4 including EUR 0.7 million in restructuring costs 18

10 6. Further explanation by business unit 19 General - Global player with activities in Germany, Austria, Switzerland, Spain, China and US - Activities: electromagnetic systems for industrial applications - Revenue 2008: EUR 58 million (comparable to 2007) - Revenue spread across broad client base (machine manufacturing, energy distribution, process automation, safety technology) - Project business (70%) and standard products (30%) - New projects in the energy sector in Special focus on manufacturing excellence in Numerous market players (smaller family companies), efficiency drive 20

11 Customers 21 Products Atex Line Elevator Line Industrial Line Safety Line Classic Line High Performance Line Locking Line System Line Control Power Line High Power Line Oscillating Line Acessory Line 22

12 Further explanation of business unit 23 General - Global player with activities in Germany and the UK - Activities: electromagnetic brakes and clutches for industrial drive technology - Revenue 2008: EUR 34 million - Organic growth: 4% - World market leader in permanent magnetic braking systems - Project business (80%) en services business (20%) - Good performance in recent years, numerous new products - Emphasis in 2009 on new markets and clients - Market dominated by limited number of players, forward integration possible 24

13 Customers 25 Products Permanent magnet brakes Electromagnetic spring applied brakes Electromagnetic clutches Electronic accessories Machine tools Brakes for Elevators Brake-Motor Drives hazardous locations Medical applications Industrial robots High Power Brakes and Magnets Cranes Automatic Door Drives 26

14 Further explanation of business unit 27 General - Global player with activities in Germany, Austria, Czech Republic and Romania - Activities: electromagnetic parts for applications in the automotive industry - Revenue 2008: EUR 68 million (comparable to 2007) - Focus on safety, energy saving and comfort - Good start in 2008, difficult market conditions in Q4 - Complete project business - Performance has improved in recent years, numerous new products - Emphasis in 2009 on realising current projects - Numerous new projects in the years ahead, acquisitions are consequently not a priority 28

15 Niches Niches 2008 (in % of turnover) Niches 2010 (in % of turnover) 31% 11% 10% 12% 2% 3% 35% 6% 5% 17% 20% 20% 16% 9% Common Rail Mobile and standard hydraulic Bi-xenon (excl. Aut. Lightning) Transmission Chassis / Damptronic Motor applications Pow er train Common Rail Mobile and standard hydraulic Bi-xenon (excl. Aut. Lightning) Transmission Chassis / Damptronic Motor applications Pow er train 29 Customers 30

16 Products Safety Environment Comfort Linear Solenoid (Shiftlock) 3/2 Directional Pneumatic Valve (EUV) 3/2 Directional Hydraulic Valve (automatic transmission) Linear Solenoid (Bi-Xenon) 2/2 Directional Solenoid Valve (4-wheel drive) Electromagnetic Brake (differential gear) Camshaft Solenoid (VCT) Slide Valve Solenoid (Ø28) Pressure Control Valve (Common Rail fuel systems) Pressure Control Valve (automatic transmission) 3/2 Directional Hydraulic Valve (pressure compensation) Pressure Control Valve (power steering) Proportional Solenoid (shock absorbers) Further explanation of business unit 32

17 General - Global player with activities in Germany, China, USA, Mexico and Brazil - Activities: parts and complete cooling systems for buses, trucks and special vehicles - Revenue 2008: EUR 45 million - Organic growth: 15% - Worldwide market leader in electromagnetic cooling systems for luxury coaches - Project business (50%) and services business (50%) - Uses agents for service - Outstanding performance in recent years, innovative - Emphasis in 2009 on new markets (India, Eastern Europe) - Possible to widen production package through supplementary technologies 33 Customers EvoBus 34

18 Products 1-speed 2-speed 3-speed Risk Management & Corporate Governance 36

19 Risk Management Outcome tests Linnig Group, as well as other companies satisfactory - Some (ICT) procedures to be tightened up (segregation of duties, authorisations, super users) 37 Corporate Governance - No material changes in corporate governance structure in In 2009 study expansion Supervisory Board with 4th member with Dutch nationality - Implementation revised Corporate Governance Code to be discussed next AGM 38

20 8. Recent developments and cost-reducing measures 39 Cost-reducing measures in Q % drop in turnover - Approximately 50 jobs cut in Germany and Austria - Reduction of approximately 70 temporary employees - Implementation of 35-hours working week - In addition, Kurzarbeit in Germany and Austria - 10% salary reduction for approximately 50 managers (incl. Board and Supervisory Board) 40

21 Recent developments and cost-reducing measures in Q Q1 2009: 35% drop in turnover - No signs of improvement on short term: plan Springtime - Measures: worldwide approximately 330 jobs additionally eliminated - Number of temporary employees minimised - Reduction other costs - Realisation in total costs savings approximately EUR 20 million annually (costs EUR 8.5 million) - In Q modest positive net result again - Positive cash flow expected Financial position 42

22 Financial position Kendrion N.V. - Strong balance sheet ratios - Solvency approximately 60% following finalisation of sale of Vink Group - Room for acquisitions (approximately EUR 50 million) within existing credit conditions Dividend payment 44

23 Dividend payment - Strong balance sheet provides room for dividend payments - The banks have limited the amount of the dividend payment - Proposed dividend payment of EUR 0.97 in cash per share - Current financing agreement to be evaluated in the course of Goals and outlook 46

24 Goals Kendrion in the coming years - Real niche player - (World)market leader - Clear focus - Strong balance sheet - ROI target > 17.5% - Make use of opportunities that are given by the current market circumstances - Organic growth as well as growth by acquisitions 47 Outlook - Difficult start in Current economic climate extremely uncertain - Cost measurements taken ( Springtime ) - Investments at about depreciation level - No concrete profit forecast 48

25 The Kendrion website has been updated: