Zumtobel Group AG Q1 2015/16 results

Transcription

1 Zumtobel Group AG Q1 2015/16 results September 8, September 2015 Q1 2015/16 results

2 An expected slow start to the FY but on track to meet full year guidance Financials Q1 2015/16 at a glance Group revenues increase by 5.9% year-on-year (FX adjusted 0.5%) to EUR million driven by strong growth with LED products (plus 48.0%), positive FX effects and an encouraging development in our Components Segment LED share of group revenues increases to 60.2% in Q1 2015/16 (Q1 2014/15: 43.1%) Group adj. EBIT decreases to EUR 13.5 million (Adj. EBIT margin 3.9%) due to an increase in R&D-expenditures, ongoing price pressure, temporary negative currency effects (USD/CHF) as well as efficiency and delivery issues in some of our lighting plants Execution of restructuring measures and transformation process is on track additional opportunities to optimize cost structure are under review Outlook for FY 2015/16 confirmed approx. 5% increase in revenues and adj. EBIT of EUR 90 to 100 million 2 8 September 2015 Q1 2015/16 results

3 LED share of group revenues increases to 60.2% (Q1 2014/15: 43.1%) Zumtobel Group LED revenue development 48.0% Zumtobel Group LED revenues LED revenues in Q1 2015/16 grow by 48.0% to EUR million LED share of group revenues increases to 60.2% (Q1 2014/15: 43.1%) Lighting Segment increases sales with LED products by 46.4% to EUR million (LED Penetration 58.4%) Q1 Q2 Q3 Q4 LED sales in Components Segment rise by 62.1% to EUR 73.3 million (LED Penetration 67.0%) LED revenues 2014/15 In EUR million LED revenues 2015/16 In EUR million 3 8 September 2015 Q1 2015/16 results

4 Temporary headwinds burden EBIT margin Lighting Segment Revenue and EBIT development Lighting Segment Revenues Adjusted EBIT 1) 4.7% 7.1% 9.8% % % % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues Revenues FY 2014/15 EUR million Adjusted EBIT 2014/15 EUR 63.7 million (margin of 6.4%) 1) Reported EBIT adjusted for special effects 4 8 September 2015 Q1 2015/16 results

5 Back on a solid growth track Components Segment Revenue and EBIT development Components Segment 13.3% Revenues 9.0% Adjusted EBIT 1) % % % % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues Revenues 2014/15 EUR million Adjusted EBIT 2014/15 EUR 28.4 million (margin of 7.2%) 1) Reported EBIT adjusted for special effects 5 8 September 2015 Q1 2015/16 results

6 Strong growth with LED-modules and drivers overcompensates decline in electronic ballasts Components Segment LED modules Revenues LED driver ~68% Revenues ~ 68% Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million European market share of around 9% (Q1 14/15: 6%) for LED Modules and around 14% (Q1 14/15:11%) for LED Driver 6 8 September 2015 Q1 2015/16 results

7 Seasonal cash outflows from increase in working capital Zumtobel Group Working capital Working capital in % of rolling 12-month revenues 20.4% 18.2% 19.0% 18.2% 18.0% 18.5% 18.9% 16.0% Target range: 16% - 18% 17.8% In % of rolling 12-month revenues, working capital increased to 20.4% vs. 19.0% in Q1 PY Increase of inventories (~ EUR 31 million vs. Q1 PY), increase in receivables (~ EUR 17 million vs. Q1 PY) and increase in payables (~ EUR 16 million vs. Q1 PY) Increase in working capital: growth in inventories and temporary inefficiencies due to production relocation Q1 Q2 Q3 Q4 FY 2013/14 FY 2014/15 FY 2015/ September 2015 Q1 2015/16 results

8 Zumtobel Group adj. EBIT Q1 2014/15 vs. Q1 2015/16 adjusted for fx translation effects Simplified illustration to highlight main building blocks of the adj. EBIT development Significant higher savings compensated by negative fx hedging effects in the amount of ca. 4 Mio EUR (USD/CHF) Productivity issues, particularly in Spennymoor Higher volume/ better mix burdened by price pressure New product development according to plan Higher marketing; salary increases according to collective bargaining power Adj. EBIT Q1 2014/15 [in EUR million] Volume/mix/price effect Material savings Operations R&D SG&A Adj. EBIT Q1 2015/ September 2015 Q1 2015/16 results

9 Net result for the period at EUR 9.2 million (plus 60.8%) Zumtobel Group Income statement in EUR million Q1 2015/16 Q1 2014/15 Change in % Revenues Cost of goods sold Gross profit (w/o development) as a % of revenues R&D SG&A expenses adjusted for special effects Adjusted EBIT as a % of revenues Special effects EBIT as a % of revenues Financial results Profit before tax Income taxes Net profit or loss for the period Increase in net income due to decrease in special effects Earnings per share ( in EUR) September 2015 Q1 2015/16 results

10 Why a week Q1 is consistent with our full year guidance Headwinds at a glance Negative impacts in Q1 Negative currency effects due to a strong USD burdens EBIT margin Hedging of CHF exposure at a rate of CHF/EUR 1.2 results in a competitive disadvantage Reasons for improvement Increased sales prices of Tridonic products to compensate challenges due to USD denominated supplier base CHF Hedge will terminate by November 2015 Problems of efficiency/delivery in our production site in Spennymoor Issue is addressed, several measures for improvement introduced Price pressure in Lighting Segment (2-3%) Partly offset by improved cost structure of newly launched products Significant increase in R&D to develop business with intelligent controls and data management Technological leadership leads to competitive advantage and increasing revenues 10 8 September 2015 Q1 2015/16 results

11 Benelux and Eastern Europe were the main growth driver in Q1 2015/16 Zumtobel Group Regional revenue distribution Zumtobel Group Q1 2015/16 Regional revenue distribution Revenues in EUR million nominal Change in % FX adjusted D/A/CH Northern Europe Benelux & Eastern Europe Asia & Pacific Northern America 2.5% Middle East & Africa 11.3% 5.2% 29.7% D/A/CH Southern Europe Asia & Pacific Southern Europe 14.6% Middle East & Africa America Total Benelux & Eastern Europe 11.1% 25.6% Northern Europe 11 8 September 2015 Q1 2015/16 results

12 Euroconstruct June forecast: trend reversal to slight market growth confirmed Market environment / trends Growth Forecast for Non-Residential Construction 1.1 Annual Growth Rates in % Forecast for 2016 shows non-residential construction slowly growing in Europe Austria (+0.9%), Germany (+0.9%) with modest growth, Switzerland (-1.1%) declining New build Renovation Total UK (+4.9%) growth engine in Europe, Nordic (+1.5%) slowing down France and Italy expected to be back on growth (+2.8% and +2.7%) Stronger expected growth for new build compared to renovation Source: Euroconstruct, June 2015 Total based on Austria, Belgium, Switzerland, Germany, France, Italy, Netherlands, UK and Nordic 12 8 September 2015 Q1 2015/16 results

13 Strategic addition to the existing brand and product portfolio acdc lighting at a glance Headquarter in Barrowford, UK (north of Manchester) Former owner and CEO Gareth Frankland continues to head the brand High-end LED lighting solutions with a focus on the architectural façade and hospitality segments Revenues of approximately EUR 17 million and headcount of around 120 employees Acquisition of a majority of 60 per cent with an option to purchase the remaining shares in 2020 Transaction amount not disclosed but underlying EV/sales multiple below 1 Production site in Barrowford and sales offices in London, Dubai and New York 13 8 September 2015 Q1 2015/16 results

14 Guidance for FY 2015/16 Zumtobel Group Outlook Confirming FY 2015/16 guidance of improvement in Group revenues and operating earnings Revenues: Based on slight tailwinds from the recovering construction market in Europe, strengthened by the technology shift to LED we expect an increase of approx. 5% in group revenues in FY 2015/16 Earnings: We expect an improvement in adjusted EBIT to EUR 90 to 100 million (adjusted EBIT 2014/15 financial year: EUR 66.5 million) A well-filled order book (ca. plus 5% fx adjusted) and the continuous evaluation of additional opportunities to optimize structural costs will support us to meet our targets 14 8 September 2015 Q1 2015/16 results

15 Financial Calendar September 8, 2015 Report on the First Quarter 2015/16 (1 May July 2015) December 9, 2015 Report on the First Half-year 2015/16 (1 May October 2016) March 2, 2016 Report on the First Three Quarters 2015/16 (1 May January 2016) 15 8 September 2015 Q1 2015/16 results

16 Thank you for your attention! 16 8 September 2015 Q1 2015/16 results

17 Higher revenues mainly driven by positive currency effects Zumtobel Group Revenues and EBIT development Zumtobel Group Revenues Adjusted EBIT 1) 5.9% % 3.9% 8.3% % 4.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Revenues FY 2013/14 EUR 1,246.8 million (plus 0.3%) Revenues 2014/15 EUR 1,312.6 million Adjusted EBIT 2014/15 EUR 66.5 million (margin of 5.1%) 1) Reported EBIT adjusted for special effects Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues 17 8 September 2015 Q1 2015/16 results

18 Restructuring on track - EUR 1.1 million special effects in Q1 2015/16 Zumtobel Group special effects Q1 2015/16 Special Effects: EUR 1.1 million Adjusted EBIT in EUR million Q1 2015/16 Q1 2014/15 Change in % Reported EBIT Thereof special effects Adjusted EBIT Adjustments in the lighting segment sales organisation (EUR 1.7 million) Shift of production from Landskrona to Spennymore (EUR 0.3 million) Gain on sale of Tridonic NZ (EUR -1.2 million) Miscellaneous (EUR 0.3 million) 18 8 September 2015 Q1 2015/16 results

19 Further expanding the outstanding technology position of the Zumtobel Group Zumtobel Group Investments into Research and Development R&D Expenses Research & Development in EUR million Q1 2015/16 Q1 2014/15 Change in % Development costs Research costs R&D total as a % of revenues In line with medium term guidance to slightly increase R&D Focus on energy efficiency, light quality and intelligent controls Higher expenditures for system architecture, software development and data management 19 8 September 2015 Q1 2015/16 results

20 Free Cash Flow at prior year level (minus 35.5 Mio EUR) Zumtobel Group Cash flow statement in EUR million Q1 2015/16 Q1 2014/15 Cash flow from operating results Change in working capital Change in other operating items Taxes paid/received Cash flow from operating activities Proceeds from the sale of non-current assets Capital expenditures on non-current assets Free cash flow development (cumulative figures in EUR million) 3.2 Capital expenditures on non-current and current financial assets Change in liquid funds from changes in the consolidation range Assets/ Liabilities held for sale 0 0 Cash flow from investing activities Free cash flow Cash flow from financing activities Effects of exchange rate changes on cash and cash equivalents Change in cash and cash equivalents Q1 H1 Q1-Q3 FY FY 2014/15 FY 2015/ September 2015 Q1 2015/16 results

21 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key balance sheet data in EUR million 31 July April 2015 Total assets 1, ,086.3 Net debt Debt coverage ratio Equity Equity ratio in % Gearing in % Investments Working capital As a % of rolling 12 months revenues Net debt totalled EUR million as of 31 Jul 2015 (31 Jul 2014 : EUR million) Secure liquidity position backed by: Consortium credit agreement with a term extending to October 2016 and a max. volume of EUR 350 million (EUR 135 million drawn by 31 July 2015) Two bilateral credit agreements with a term extending to September 2018 respectively January 2020 Unsecured lines of credit totalling EUR 93.4 million as of 30 Apr September 2015 Q1 2015/16 results

22 Zumtobel Group - medium term targets (2016/17) call for a doubling of profitability FY 2014/15 results - a convincing interim step to reach the set goal Performance 2014/15 EBIT adj. 2013/14 Baseline 3.8% Categories & Measures Targeted margin impact Costs of Goods sold Implementation of an efficient global manufacturing footprint Bill of purchasing reduction + 3-4% +1.1% R&D R&D spending (through P&L) will slightly grow due to higher software content - 0.5% -0.2% SG&A Cost synergies from merging Performance programme Increase share of wallet + 2-3% +0.4% Contingency for market growth, price developments, mix change, inflation, FX effects - 0.5% - EBIT adj. 2016/17 Target 8-10% 5.1% 22 8 September 2015 Q1 2015/16 results

23 Measures to unlock full potential in Global Operations targeting best in class cost structure Progress report Global Operations Key Barrowford, UK Spennymoor, UK Landskrona, SE Usingen, DE Production volume >100 Mio EUR Highland, US Les Andelys, FR Lemgo, DE Tianjin, CN Production volume >50 Mio EUR Ennenda, CH Jennersdorf, AT Guangzhou, CN Shenzhen, CN Production volume <50 Mio EUR Innsbruck, AT Lighting Segment Dornbirn, AT Sydney, AU Components Segment Announced shut downs or sale of plants Auckland, NZ Announced downsizing of Lemgo 23 8 September 2015 Q1 2015/16 results

24 Five-Year Overview in EUR million 2014/ / / / /11 Revenues 1, , , , ,228.2 Adjusted EBIT as a% of revenues Net profit/loss for the period as a % of revenues Total assets 1, , , ,020.5 Equity Equity ratio in % Net debt Cash flow from operating results Investments as a % of revenues R&D total as a % of revenues Headcount incl. contract worker (full-time equivalent) 7,234 7,291 7,162 7,456 7, September 2015 Q1 2015/16 results

25 Disclaimer The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to predict. Therefore, actual outcomes or results may differ materially from what is expressed, implied or forecasted in these statements. Neither Zumtobel AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document, the facts and/or information. Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Zumtobel AG as of the date this document was made. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Zumtobel AG as being accurate. Contacts: Investor Relations Tel.: +43 (5572) September 2015 Q1 2015/16 results