Zumtobel Group AG H1 2015/16 results. December 9, 2015

Transcription

1 Zumtobel Group AG H1 2015/16 results December 9, December 2015 H1 2015/16 results

2 Solid Q2 after a weak start into the financial year Financials H1 2015/16 at a glance Group revenues increase by 5.8% year-on-year (FX adjusted 1.6%) to EUR million driven by strong growth with LED products (plus 45.1%), positive FX effects and an encouraging development in our Components Segment LED share of group revenues increases to 61.8% in H1 2015/16 (H1 2014/15: 45.1%) Group adj. EBIT decreases to EUR 42.3 million (Adj. EBIT margin 6.0%) due to an increase in R&D-expenditures, delay in restructuring benefits, ongoing price pressure as well as temporary negative currency effects (USD/CHF) The backlog situation and efficiency issues at the Spennymoor lighting plant significantly improved in Q2 New Earnings Guidance for FY 2015/16: adj. EBIT of EUR 70 to 80 million 2 9 December 2015 H1 2015/16 results

3 LED share of group revenues increases to 61.8% (H1 2014/15: 45.1%) Zumtobel Group LED revenue development Zumtobel Group 48.0% LED revenues 42.6% LED revenues in H1 2015/16 grow by 45.1% to EUR million LED share of group revenues increases to 61.8% (H1 2014/15: 45.1%) Lighting Segment increases sales with LED products by 47.1% to EUR million (LED Penetration 60.4%) Q1 Q2 Q3 Q4 LED sales in Components Segment rise by 50.2% to EUR million (LED Penetration 68.1%) LED revenues 2014/15 In EUR million LED revenues 2015/16 In EUR million 3 9 December 2015 H1 2015/16 results

4 Growth dynamics improved in Q2 Lighting Segment Revenue and EBIT development Lighting Segment 4.7% (fx adj. -0.5%) Revenues Adjusted EBIT 1) 9.8% 7.3% 7.1% (fx adj. 4.0%) 8.5% 4.1% % % 15.8 Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million 1) Reported EBIT adjusted for special effects Revenues 2015/16 In EUR million Revenues H1 2015/16 EUR million (plus 6.0%) Revenues H1 2014/15 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues Adjusted EBIT H1 2015/16 EUR 34.0 million (margin of 6.4%) Adjusted EBIT H1 2014/15 EUR 42.3 million (margin of 8.4%) 4 9 December 2015 H1 2015/16 results

5 Price increases lead to improved profitability but slow down in growth Components Segment Revenue and EBIT development Components Segment Revenues Adjusted EBIT 1) 13.3% (fx adj. +8.3%) 6.4% (fx adj. +4.2%) 9.0% 12.1% % 8.2% % % Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million 1) Reported EBIT adjusted for special effects Revenues 2015/16 In EUR million Revenues H1 2015/16 EUR million (plus 9.7%) Revenues H1 2014/15 EUR 196,4 million Q1 Q2 Q3 Q4 Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues Adjusted EBIT H1 2015/16 EUR 22.7 million (margin of 10.5%) Adjusted EBIT H1 2014/15 EUR 15.7 million (margin of 8.0%) 5 9 December 2015 H1 2015/16 results

6 Better fx adjusted growth compensates for temporary headwinds and delay in restructuring benefits Zumtobel Group Revenues and EBIT development Zumtobel Group Revenues Adjusted EBIT 1) 5.9% (fx adj. +0.5%) 5.8% (fx adj. +2.7%) % 3.9% 8.3% 8.0% % 4.3% Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Revenues H1 2015/16 EUR million (plus 5.8%) Revenues H1 2014/15 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 in EUR million Adjusted EBIT 2014/15, Adjusted EBIT 2015/16 as a % of revenues Adjusted EBIT H1 2015/16 EUR 42.3 million (margin of 6.0%) Adjusted EBIT H1 2014/15 EUR 47.2 million (margin of 7.1%) 1) Reported EBIT adjusted for special effects 6 9 December 2015 H1 2015/16 results

7 Zumtobel Group adj. EBIT H1 2014/15 vs. H1 2015/16 adjusted for fx translation effects Simplified illustration to highlight main building blocks of the adj. EBIT development Slightly higher volume and savings in material ratio partly compensated by price pressure (2-3%) and negative fx hedging Productivity issues, particularly in Spennymoor -4.4 New product development according to plan -7.2 Salary increases according to collective bargaining power Adj. EBIT H1 2014/15 Price / Volume / Mix Operations (ICOGS) R&D SG&A Adj. EBIT H1 2015/16 [in EUR million] 7 9 December 2015 H1 2015/16 results

8 Seasonal increase in Working Capital Zumtobel Group Cash flow statement in EUR million H1 2015/16 H1 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 Change in current and non-current financial assets Change in liquid funds from changes in the consolidation range Assets held for sale 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/ December 2015 H1 2015/16 results

9 New credit agreement secures long-term liquidity and financing capabilities Zumtobel Group Solid financial foundation Syndicated loan agreement with a max. line of EUR 300 m, step-up clause for additional EUR 200 m Five-year term ending on November 30 th 2020, plus two one-year extension options (5+1+1 ruling) Usage of funds: refinance Zumtobel Group s existing EUR 350 million loan which would have expired in October 2016 and for general corporate purposes Agreement requires compliance with financial covenants (a debt coverage ratio of less than 3.5 and an equity ratio of 25%) Bank consortium with Commerzbank AG, Raiffeisenbank International AG, UniCredit Bank Austria AG, Bank für Tirol und Vorarlberg AG, HSBC Trinkaus & Burkhardt AG, SEB AG, Vorarlberger Landes- und Hypothekenbank AG 9 9 December 2015 H1 2015/16 results

10 Progress report Headwinds at a glance Negative impacts in H1 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 in H2 Tridonic increased sales prices which is visible in Tridonic s improved profitability (but slow down in growth dynamic) CHF Hedge terminated in Nov 2015 Problems of efficiency/delivery in our production site in Spennymoor Backlog at normalised level, productivity improved (but still below group s average) Price pressure in Lighting Segment (2-3%) New products launched in November quick ramp-up targeted Significant increase in R&D to develop business with intelligent controls and data management The majority part of the expected 10 Mio EUR full year increase has been digested in H December 2015 H1 2015/16 results

11 Good growth momentum in all European key markets except France Zumtobel Group Regional revenue distribution Zumtobel Group Q2 2015/16 H1 2015/16 Regional revenue distribution Revenues in EUR million Change in % Revenues in EUR million nominal Change in % FX adjusted D/A/CH Northern Europe Benelux & Eastern Europe Asia & Pacific Northern America 2.6% Middle East & Africa 10.5% 5.2% 30.0% D/A/CH Southern Europe Asia & Pacific Southern Europe 13.7% Middle East & Africa America Total Benelux & Eastern Europe 11.3% 26.7% Northern Europe 11 9 December 2015 H1 2015/16 results

12 Euroconstruct December forecast: good market environment for the next two years confirmed Market environment / trends Growth Forecast for Non-Residential Construction Annual Growth Rates in % New build Renovation Total 1.7 For 2015 significant downwards revision from 1.9% growth to 0.1% decline but forecasts for 2016 and 2017 confirm sound market growth Austria (+1.5%), Germany (+1.5%) with modest growth, Switzerland (+0.2%) stagnating UK (+5.6%) remains growth engine in Europe, France and Italy expected to be back on growth path (+5.4% and +1.7%) Stronger expected growth for new build compared to renovation Source: Euroconstruct, December 2015 Total based on Austria, Switzerland, Germany, France, Italy, UK and Nordic 12 9 December 2015 H1 2015/16 results

13 Tridonic sells commercial signage business to AgiLight Transaction overview Buyer: U.S.A-based AgiLight Inc. headquarted in San Antoinio. With this transaction AgiLight becomes a global player in the LED signage market Deal rationale: Tridonic strenghtens focus on connected LED components and systems in general lighting / Signage business has a different customer base and sales approach Transaction structure: Asset Deal Closing date: 30 Nov 2015 Employees affected: around 10 Tridonic s annual revenues with commercial signage: ca. 20 Mio EUR in 2014/15 (12% market share in Europe) The Tridonic plant in Jennersdorf (Austria) will continue to supply LED components in AgiLight s signage product portfolio Transaction amount: not disclosed 13 9 December 2015 H1 2015/16 results

14 Zumtobel Group Guidance for FY 2015/16 adjusted Zumtobel Group Outlook Despite significant improvement in Q2 the first six months were marked by below expectation fx-adjusted revenue growth, delays in forecasted restructuring benefits and temporary headwinds FY 2015/16 guidance: Revenues guidance unchanged: supported by substantial positive currency translation effects - we continue to expect an increase of approx. 5% in group revenues in FY 2015/16 Earnings guidance adjusted: We expect an improvement in adjusted EBIT to EUR 70 to 80 million (adjusted EBIT 2014/15 financial year: EUR 66.5 million) Evaluation of further opportunities to optimize structural costs Capital Markets Day Light & Building (March 15, 2016) 14 9 December 2015 H1 2015/16 results

15 Financial Calendar March 2, 2016 Report on the First Three Quarters 2015/16 (1 May January 2016) March 15, 2016 Capital Markets Day at the Light & Building June 22, 2016 Report on the Annual Results 2015/16 (1 May April 2016) July 12, 2016 July 22, 2016 July 29, 2016 August 1, 2016 August 2, 2016 Record Date Annual General Meeting 40 th Annual General Meeting of Zumtobel Group AG Ex-Dividend Day Record Date Dividend Dividend Payout Day September 6, 2016 Report on the First Quarter 2016/17 (1 May July 2016) December 6, 2016 Report on the First Half-Year 2016/17 (1 May October 2016) March 7, 2017 Report on the First Three Quarter 2016/17 (1 May January 2017) 15 9 December 2015 H1 2015/16 results

16 Thank you for your attention! 16 9 December 2015 H1 2015/16 results

17 Continued strong growth with LED-modules and LED-drivers Components Segment LED modules Revenues LED driver ~68% Revenues ~% ~ 68% ~ % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million Revenues 2014/15 In EUR million Revenues 2015/16 In EUR million European market share of around 9% (H1 14/15: 8%) for LED Modules and around 14% (H1 14/15:12%) for LED Driver 17 9 December 2015 H1 2015/16 results

18 Working capital remains on a high level Zumtobel Group Working capital Working capital in % of rolling 12-month revenues 20.4% 20.1% 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 20.1% vs. 18.0% in Q2 PY Increase of inventories (~ EUR 21 million vs. Q2 PY), increase in receivables (~ EUR 22 million vs. Q2 PY) and increase in payables (~ EUR 1 million vs. Q2 PY) Q1 Q2 Q3 Q4 FY 2013/14 FY 2014/15 FY 2015/ December 2015 H1 2015/16 results

19 Net result for the period at EUR 27.5 million Zumtobel Group Income statement in EUR million H1 2015/16 H1 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 >100 Net profit or loss for the period Earnings per share ( in EUR) December 2015 H1 2015/16 results

20 Restructuring on track - EUR 5.4 million special effects in H1 2015/16 Zumtobel Group special effects Special Effects: EUR 5.4 million Adjusted EBIT in EUR million H1 2015/16 H1 2014/15 Change in % Reported EBIT Thereof special effects Adjusted EBIT Adjustments in the sales organisation (EUR 5.4 million) Adjustments in Global Operations (EUR 4.1 million) Property sale Landskrona (EUR -3.3 million) Deconsolidation-effect of Tridonic NZ (EUR -1.1 million) Miscellaneous (EUR 0.3 million) 20 9 December 2015 H1 2015/16 results

21 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 H1 2015/16 H1 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 21 9 December 2015 H1 2015/16 results

22 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key balance sheet data in EUR million 31 October April 2015 Total assets 1, ,086.3 Net debt Debt coverage ratio Equity Equity ratio in % Gearing in % Investments Working capital Net debt totalled EUR million as of 31 Oct 2015 (31 Oct 2014 : EUR million) Secure liquidity position backed by: Consortium credit agreement with a term ending November 2020 and a max. volume of EUR 300 million (EUR 145 million drawn by 31 Oct 2015) Two bilateral credit agreements with a term extending to September 2018 respectively January 2020 Unsecured lines of credit totalling EUR 93.0 million as of 30 Oct 2015 As a % of rolling 12 months revenues December 2015 H1 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 Closed plants Auckland, NZ Downsizing of Lemgo 23 9 December 2015 H1 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, December 2015 H1 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 Group 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 Group 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 Group 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 Group AG as being accurate. Contacts: Investor Relations Tel.: +43 (5572) December 2015 H1 2015/16 results