Interim Financial Report Zumtobel Group 2007/08. December 7, 2007

Transcription

1 Interim Financial Report Zumtobel Group 2007/08 December 7, 2007 Presentation Dr A. Ludwig / T. Spitzenpfeil

2 Q2 2007/08 key facts and figures On track for double digit EBIT margin Zumtobel Group Continuing growth Increasing profitability Strong market position Zumtobel Group: Revenues: 343,0 million Euros (+6,8%) LED activities +81% Zumtobel Lighting Division (+6,3%): Strong growth of D/A/CH region Turnaround in Northern Europe TridonicAtco Division (+7,1%): Continuous shift from magnetic to electronic ballasts Phase-out of copper effect Zumtobel Group: EBIT: 42,5 million Euro (+16,9%) EBIT-Margin: 12,4% (+110bp) ROCE: 18,7% (+240bp) Zumtobel Lighting Division: Acquisition of Hungarian sales partner Acquisition of Danish sales partner Ground-breaking of new plant (Spennymoor) TridonicAtco Division: Positive mix- and volume-effect Continuous investment in our brands Zumtobel Group Award launched Energy efficiency initiative Zumtobel Brand Austrian brand award Humanergy Balance Campaign Thorn Brand PEC (Performance, Efficiency, Comfort) Tridonic Atco Division Launch of the TridonicAtco Academy Ecolution 2 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

3 Zumtobel Group Strong growth in revenues and adjusted EBIT Zumtobel Group Revenues in EUR million Zumtobel Group Adjusted EBIT * in EUR million ,8% 343,0 6,1% 323,1 321,1 312,7 304,5 295,6 Q1 Q2 Q3 Q4 Revenues FY 2006/07 Revenues FY 2007/08 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% -100,0% -100,0% 13% 12% 11% 10% 9% 8% 7% ,2 10,3% 9,9% 33,3 11,3% 36,3 12,4% 42,5 6,9% 20,4 25,3 Q1 Q2 Q3 Q4 Adjusted EBIT FY 2006/07 as a % of revenues Adjusted EBIT FY 2007/08 as a % of revenues Adjusted EBIT FY 2006/07 Adjusted EBIT FY 2007/08 8,1% *) Reported EBIT adjusted for special effects The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS 19 3 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

4 First half-year sales development 6,5% organic growth like-for-like ZLD + 6,3% TAD + 7,1% USD, CHF, GBP Copper related price increase First half-year a 2006/07 FX effects b Copper cprice effect Growth core d business First half-year e 2007/08 The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS 19 4 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

5 Segment reporting Zumtobel Lighting Division Zumtobel Lighting Division Revenues in EUR million 6,3% 256,7 4,0% 241,6 235,9 230,8 226,8 222,7 Q1 Q2 Q3 Q4 Revenues FY 2006/07 Revenues FY 2007/08 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% -100,0% -100,0% 13% 12% 11% 10% 9% 8% 7% 6% Zumtobel Lighting Division * Adjusted EBIT in EUR million 12,1% 9,3% 11,4% 9,2% 7,4% 31,0 5,9% 27,6 21,2 21,7 17,1 13,1 Q1 Q2 Q3 Q4 Adjusted EBIT FY 2006/07 as a % of revenues Adjusted EBIT FY 2007/08 as a % of revenues Adjusted EBIT FY 2006/07 Adjusted EBIT FY 2007/08 *) Reported EBIT adjusted for special effects The comparable prior year figures were adjusted to reflect the application of IFRS 5, 14 and IAS 19 5 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

6 Segment reporting TridonicAtco Division TridonicAtco Division Revenues in EUR million 10,1% 7,1% 105,0 104,0 97,1 97,7 95,4 88,7 Q1 Q2 Q3 Q4 Revenues FY 2006/07 Revenues FY 2007/08 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% -100,0% -100,0% 13% 12% 11% 10% 9% TridonicAtco Division Adjusted EBIT * in EUR million 11,8% 12,0% 10,8% 11,3% 11,3% 9,8% 12,3 12,5 10,9 11,1 10,3 8,7 Q1 Q2 Q3 Q4 Adjusted EBIT FY 2006/07 as a % of revenues Adjusted EBIT FY 2007/08 as a % of revenues Adjusted EBIT FY 2006/07 Adjusted EBIT FY 2007/08 *) Reported EBIT adjusted for special effects The comparable prior year figures were adjusted to reflect the application of IFRS 5, 14 and IAS 19 6 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

7 Segment reporting: Regional trends Dynamic growth in core market Distribution of Regional Turnover 2nd Quarter 2007/08 1st Half-Year 2007/08 Distribution of Regional Turnover Growth +- in % Growth +- in % Revenues in EUR million D/A/CH 11,7 7,0 162,4 Eastern Europe 12,0 6,7 35,6 Northern Europe 14,5 6,5 52,1 Western Europe 7,1 11,4 223,6 Southern Europe 16,7 15,1 68,3 Europe 10,7 9,7 542,1 Asia -14,5-9,3 43,0 Australia & New Zealand 6,3 2,8 57,2 America -22,4-14,8 18,4 Others -16,3-20,3 5,5 Total 6,8 6,5 666,1 Australia & New Zealand 9% Asia 6% Southern Europe 10% Western Europe 34% America 3% Others 1% D/A/CH 24% Eastern Europe 5% Northern Europe 8% Europe 81,4% Growth drivers in 2 nd quarter Growth issues Strong growth of D/A/CH region (+11,7%) Turnaround in Northern Europe (+14,5%) Catch up of project business in Eastern Europe LED activities: +81% Asia: High volatility due to project business Recovery expected during the remainder of this year America: Continuing difficult market conditions expected 7 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

8 First half-year EBIT development 13,9% increase of adjusted EBIT 90 Net of: + Improvement in personnel cost ratio: 30bp + Efficiency programs + Reduced depreciation/amortization - Increased material cost - Increased development expenses Mainly project Lite : Downsizing Spennymoor Sale of real estate (D, AUS) Main driver of Cost Increase: Plus 3% on collective bargaining agreements 50 EBITa Adjustments 1st Half- price/ copper b Adj. cebit Volume/ d Net e 1st Half- Year 2006/07 Year 2006/07 mix effect CoGS SG&A Adj. EBIT 1st Half- Year 2007/08 Adjustments EBIT 1st Half- Year 2006/07 The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS 19 8 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

9 Income statement Comparable net profit rises by 30% Income Statement in EUR million 2nd Quarter 2007/08 2nd Quarter 2006/07* Change in % 1st Half-Year 2007/08 1st Half-Year 2006/07* Change in % Revenues 343,0 321,1 6,8 666,1 625,6 6,5 Cost of goods sold -208,8-197,6 5,6-409,3-385,7 6,1 Gross profit 134,3 123,5 8,7 256,8 240,0 7,0 as a % of revenues 39,1 38,5 38,6 38,4 SG&A expenses adjusted from special effects -91,8-87,2 5,3-181,1-173,4 4,4 Adjusted EBIT 42,5 36,3 16,9 75,7 66,5 13,9 as a % of revenues 12,4 11,3 11,4 10,6 Special effects -0,5-1,3-65,6-1,1-1,2-10,8 EBIT 42,0 35,0 20,1 74,7 65,3 14,3 Financial results -7,6-2,9 < ,3-14,1-13,3 Profit before tax 34,4 32,0 7,4 62,4 51,2 21,9 Income taxes -4,3-5,0-13,6-7,2 2,8 <-100 Net profit for the period from discontinued operations -0,2 8,7 <-100-0,2 9,4 <-100 Net profit for the period 29,9 35,8-16,4 55,1 63,4-13,2 thereof due to shareholders of the parent company 29,8 35,6-16,2 54,7 63,2-13,4 Basic earnings per share (in EUR) 0,67 0,80-16,3 1,23 1,44-14,5 Sale of Airfield business One-time expenses: -2,3 m breakage costs -3,4m valuation (TIR convertible bond and derivatives) One-time effects: Tax income 11,7m from deferred tax assets *The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS 19 9 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

10 Balance sheet Working Capital improvement despite seasonality in EUR million 31 October October 2006* 30 April 2007 Total assets 1.160, , ,4 Net debt 183,3 242,3 185,7 Equity 475,5 433,6 441,6 Equity ratio in % 41,0 38,7 38,6 Gearing in % 38,5 55,9 42,1 Average capital employed 650,1 631,8 647,4 Investments 22,5 23,7 54,3 Working capital 289,9 299,6 253,7 As a % of rolling 12 month revenues 22,7 24,8 20,6 Working capital as a % of rolling twelve-months revenues 26% 24.8% 24% 23.3% 23.6% 23.4% 24.0% 22.7% 22% 20.7% 20.6% 20% 18% Q3 05/06 Q4 05/06 Q1 06/07 Q2 06/07 Q3 06/07 Q4 06/07 Q1 07/08 Q2 07/ / / /08 *The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

11 Cash flow Statement Strong free cash flow improvement in TEUR 1st Half-Year 2007/08 1st Half-Year 2006/07 Cash flow from operating results Change in working capital Change in other operating items Taxes paid Cash flow from operating activities Proceeds from the sale of non-current assets Capital expenditures Change in non-current and current financial assets Change in liquid funds from changes in the consolidation range Cash flow from investing activities FREE CASH FLOW Change in net borrowings Capital increases Dividends Share buyback Interest paid Cash flow from financing activities CHANGE IN CASH AND CASH EQUIVALENTS The comparable prior year figures were adjusted to reflect the application of IFRS 5 and IAS Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

12 Outlook 2007/08 Top line growth approximately 6% EBIT-Margin 10% Growth drivers Non-residential construction in Europe remains healthy Long-term effects of the present capital market turmoil are still uncertain Energy efficiency and reductions in CO 2 emission is a key growth driver EBIT drivers Contribution of topline growth Effects from past restructuring and further cost saving and efficiency programmes Further upgrading of Thorn brand 12 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

13 Outlook 2007/08 Euroconstruct increased growth forecast for non-residential construction Annual Growth Rates in % Growth Forecast for Non-Residential Construction A 2006 A 2007 E 2008 F 2009 F 2010 O New build -0,9 4,8 4,8 3,7 2,4 2,5 Renovation 0,3 1,3 2,0 2,1 1,9 1,6 Total -0,4 3,2 3,6 3,0 2,1 2,1 Based on: AT, CH, DE, FR; UK, IT, Nordic - Source: Euroconstruct, Nov Growth Rates in % Forecast Growth-Split by Country Austria Germany France Non-residential 2,7 3,8 1,7 4,6 4,3 1,4 1,9 Civl Engineering 3,9 3,5 1,1 7,9 1,8 0,5 3,1 GDP 2,4 2,2 2,3 1,9 2,1 1,5 3,3 Source: Euroconstruct, November 2007 Sw itzerland UK Italy Nordic Euroconstruct November forecast shows a mixed picture Increased growth rates in Zumtobel Group s seven most important European markets: 2007: +0.6 percentage points to 3.6% 2008: +0.5 percentage points to 3.0% Downgrading of residential construction, non-residential not affected 13 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

14 Mid-term targets We confirm our targets on growth and profitability Growth targets 6% growth in revenues in FY 2007/08 Net revenues in EUR million Mid-term (FY 2010/11) target of 1,5 bn EUR ,5% + 5,6% CAGR + 5,0% Mid-term goal for LED : EUR 100 million revenues Additional upside from potential acquisitions 500 FY 2004/05 FY2005/06 FY 2006/07... FY 2010/11 ROS targets Targeting 10% operating EBIT-margin for FY 2007/08 Mid-term blue sky scenario: 12% operating EBITmargin 13,0 12,0 11,0 10,0 9,0 8,0 7,0 Adjusted EBIT as a % of revenues 12,0 8,5 9,1 8,0 FY 2004/05 FY2005/06 FY 2006/07... FY 2010/11 14 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

15 Financial Calendar Tues. March 18, rd Quarterly Report 2007/08 (May, 01 - January, 31) Wed. April 09, 2008 Capital Market Day in Frankfurt (Germany) Mon. July 07, 2008 Annual Results 2007/08 Tues. July 29, 2008 Annual Shareholders Meeting Thurs. July 31, 2008 Ex-dividend day Mon. August 04, 2008 Dividend payout day Tues. Sept. 16, st Quarterly Report 2008/09 (May, 01 - July, 31) Tues. Dec. 09, 2008 Interim Financial Report 2008/09 (May, 01 - October, 31) Thurs. March 12, rd Quarterly Report 2008/09 (May, 01 - January, 31) 15 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

16 Back-up 16 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

17 Project LITE Optimisation of real estate portfolio Scope of project LITE Streamline balance sheet to pursue a more asset light approach Free up cash from unnecessary real estate assets Eliminate facilities which are outdated or an ongoing cost burden Use of proceeds Deleveraging Funding of Acquisitions Funding of Dividends Financial impact spread until April 08 Cash generated: 30m with upside One time EBIT impact : 20m with upside in Mio country cash Romford warehouse bought to terminate onerous lease contract and sold one time EBIT UK -6,5-4,1 Dornbirn empty land sold AT 4,4 2,4 Somersby plant sold AUS 3,0 1,3 Rome old office sold IT 0,8 0,5 Oslo NO 2,6 0,6 Accounting effect FY 2006/07 4,3 0,7 Lindau D 0,7 0,4 Smithfield plant AUS 5,8 2,2 Accounting effect Q1+ Q2 FY 2007/08 6,5 2,6 Project LITE was announced on October 27, Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007

18 Disclaimer The facts and information contained herein are as up to date as is reasonably possible and are subject to revision in the future. Neither Zumtobel AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation. Neither Zumtobel 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 presentation. Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the 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. 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. 18 Presentation Dr A. Ludwig / T. Spitzenpfeil December 2007