RELAUNCH. Presentation January as at 8Jan. 2018

Transcription

1 RELAUNCH Presentation January 2018 as at 8Jan. 2018

2 1989 Founding LONG TERM Investor 4 GROUP SEGMENTS GESCO PROFILE 17 PORTFOLIO COMPANIES 01 IN BRIEF ~ 500 million GROUP SALES 100% TAKEOVER UP TO 3 Acquisitions per year Market leaders & established players PORTFOLIO HIDDEN CHAMPIONS Future oriented end markets based on MEGA TRENDS INDUSTRIAL Group German MITTELSTAND ~ 2,500 EMPLOYEES WORLDWIDE 36 SITES WORLDWIDE 2

3 01 SEGMENTS IN BRIEF Production process technology Dynamically growing markets, high degree of innovation, automation, batch size 1 Robotics and automation solutions in machine and plant construction, technologyintense manufacturing services Resource technology Consolidating markets, focus on niches and customer service Customised preparation of primary materials, e. g. materials supply, transport and loading technology Health and infrastructure technology Not very cyclical, relatively resilient to economic fluctuation Components, modules and primary products for providers for mass markets close to end customers Mobility technology Cyclical automotive market, positive outlook driven by technological leaps, e. g. electromobility Tools and moulds, components, parts etc. for vehicle industry 3

4 SHARE PRICE DEVELOPMENT 5 YEARS 01 THE SHARE GESCO Share (incl. div.) vs. SDAX and DAX (%) 240 SDAX % DAX +75.0% GESCO +56.6% 5 Jan Jan

5 180 SHARE PRICE DEVELOPMENT YTD GESCO Share (incl. div.) vs. SDAX and DAX (%) ANALYSTS STATEMENTS 01 THE SHARE GESCO +45.0% SDAX +27.2% DAX +14.8% 1 Jan Jan GSC Research: / buy / 21 Nov Bankhaus Lampe: / buy / 14 Nov SMC Research: / hold / 14 Dec Equinet: / accumulate / 13 Dec Oddo Seydler: / neutral / 13 Dec GESCO SDAX DAX 5

6 PORTFOLIO STRATEGY PORTFOLIO STRATEGY 2022 Starting point Long standing successful business model had been losing momentum since 2012/2013. Action In 2016/2017 we set a lot of actions in motion in order to lead GESCO back to the path of profitable growth. PORTFOLIO STRATEGY 2022 RELAUNCH 6

7 01 ANALYSE SITUATION Are our existing business model and our role as shareholders still suitable to achieve our goals? PORTFOLIO STRATEGY 2022 Phase of analysis terminated 02 ANALYSE MEGA TRENDS Which markets are attractive for us? 03 STRUCTURING OF SEGMENTS Which competences are the basis on which we shape our future? 01 PORTFOLIO STRATEGY BENCHMARK FOR EACH COMPANY How do we secure leading positions and margines? DECISION Q1/2016 the business model had to be further developed in order to realize improvement potential GESCO had to take a more active part in its shareholder role DECISION Q1/2016 growth markets related to mega trends focus put on 4 end customer market segments DECISION Q2/2016 GESCO competences identified Portfolio reshaped into 4 Group segments basis for focussed growth strategy foresees up to 3 acquisitions per year DECISION Q3/2016 Competitive benchmarking realised for each company optimisation potential identified support needs substantiated resulting gaps quantified 7

8 05 MANAGEMENT LEVER How do we best fulfil our duties as a shareholder? PORTFOLIO STRATEGY 2022 Optimizations started 06 GROWTH LEVER Which mix of measures helps us to get better? 07 MANAGEMENT METHOD How can the holding generate added value while maintaining high degrees of liberty? 01 PORTFOLIO STRATEGY VALUES & CULTURE DEVELOPED How can we preserve values and at the same time develop a strong culture of performance and results? DECISION Q4/2016 robust organization: placement of managing directors & key positions prioritization on investments for growth & competitiveness consultative support to the portfolio companies DECISION 03 04/2016 concrete actions developed and anchored in planning focus on revenue growth and competitiveness Increase cash flow through new focus on working capital DECISION 03 04/2016 annual strategy meetings used as kick off for strategic planning ambitious 3 year targets agreed with the Managing Directors consulting by portfolio managers in financial and technical topics & projects DECISION 03 04/2016 cultural change has been initiated operational degrees of freedom have been retained stronger focus on obligation and achievement have been put in place 8

9 A REFINING ACQUISITION FIELD OF BUSINESS processing of strip steel with brass, copper, nickel & zinc SIGNING: DEC CLOSING: JAN ACQUISITION 2016/2017 Profile Pickhardt & Gerlach Group HIDDEN CHAMPION Leading supplier in Europe USPs: QUALITY LEADER & DEDICATED CUSTOMER SERVICE CUSTOMER SECTORS electronics, home accessories, interior fittings, packaging, office supply, household appliances, handicraft & DIY, furniture accessories, sporting goods, automotive ~ 30 m SALES 41 STAFF 01 M&A SPECIALTY high degree of automation, production technology and site state of the art 9

10 FINANCIAL YEAR 2017/2018 H1 Dynamic start into the new financial year 02 H1 Business activity in capital goods industry has picked up significantly PORTFOLIO STRATEGY 2022 in progress, optimisation projects begin to show results Portfolio strengthened by acquisition of Pickhardt & Gerlach Group (PGW), included in P+L for the first time in current financial year Incoming orders and sales increased significantly, earnings more than doubled Also in Q3 incoming orders and sales on a high level H1 earnings benefit from better capacity utilisation and a favourable order mix in connection with dynamic market development disproportionately high earnings increase EBIT margin imroved from 4.6 % to 7.7 % Outlook for full financial year narrowed New guidance: sales and earnings expected to come in at upper end of outlook ranges 10

11 FINANCIAL FIGURES IN DETAIL 02 H1 H1 2016/2017 H1 2017/2018 Change Remark Incoming orders m % organic: +2.8 % Sales m % organic: +8.2 % EBITDA m % EBIT m % Earnings before tax m % Group net income after minority interest m % Earnings per share pursuant to IFRS % Weighted average number of shares No. 9,974,793 10,838, % Employees No. 2,528 2, % Disproportional growth, better capacity utilisation, temporary favourable order mix Disproportional development due to higher no. of shares Increase due to capital increase from March 2017 PGW s staff included for the first time (41 employees) 11

12 SEGMENT DEVEL0PMENT 02 H1 Segment m H1 H1 2016/ /2018 PRODUCTION PROCESS RESOURCE HEALTH & INFRASTRUCTURE MOBILITY Incoming orders lively customer demand; companies started production of Sales plants and machines which will contribute to sales and EBIT 0.5 earnings mainly in H1 0.1 Incoming orders Extraordinarily strong H1 with especially favourable Sales environment, PGW included for the first time EBIT Incoming orders Lively customer demand; all companies could increase Sales order intake EBIT Incoming orders Good demand for parts for serial production, large tools Sales business declining; negative one off effects; segment EBIT 1.5 development falls short of expectations

13 /2018 Q3 (operating business July to Sept. 2017) INCOMING ORDERS Q3: +4% YOY SALES Q3: +7% YOY 02 Q O S O Q1 Q2 Q3 Q4 Q1 Q2 Q S Preliminary figures for Q3: Business activity still on a high level ORDER BACKLOG END OF Q3: approx. 200 m / +5 % yoy O= Order intake (left) million S = Sales (right) million 13

14 ENVIRONMENT IMPROVED OUTLOOK 2017/2018 Expectations for full financial year 03 OUTLOOK FORECAST German GDP ,4% to +1,8% GESCO GROUP 2016/2017 Actual 2017/2018 Outlook June ) 2017/2018 Outlook Nov ) Change yoy VDMA Production forecast +3% after years of stagnation Group sales m Group net income after minority interest m to to 18 approx. 530 approx. 18 approx. +10 % approx % Earnings per share acc. to IFRS 3) to 1.66 approx approx % Sales and earnings now expected at upper end of ranges: sales approx. 530 m, earnings approx. 18 m 1) as at annual accounts press conference on 29 June ) as at financial report H1 from 14 Nov ) no. of shares increased due to capital increase from March

15 OUTLOOK 2017/ OUTLOOK Ad hoc from Antitrust proceedings against Dörrenberg Edelstahl GmbH, a 90% subsidiary of GESCO. Legal analysis in progress. Impact on 2017/2018 earnings not yet quantifiable. 15

16 OUTLOOK Expected Segment Development for full FY 03 OUTLOOK PRODUCTION PROCESS RESOURCE HEALTH & INFRASTRUCTURE MOBILITY Sales EBIT Sales EBIT Sales EBIT Sales EBIT segment benefits from trend to automation, sales and earnings expected above prev. year s figures profitable organic growth plus strong external growth due to addition of Pickhardt & Gerlach Group; very strong H1, normalisation on a high level expected for H2; sales and earnings expected clearly above prev. year stable development, sales increasing, earningsstable orslightlyrising despite one off burdens in invidivual companies for growth and optimisation projects Sales expected below prev. year; earnings expected to come in at or slightly below prev. year s figures 16

17 GOALS PORTFOLIO STRATEGY Portfolio PORTFOLIO STRATEGY 2022 Strategy2022 GESCO PORTFOLIO leading GESCO back to the path of profitable growth by consistently implementing measures in order to reach the ambitious goals agreed with the managing directors INTERNAL GROWTH 8% GESCO GROUP sustainably reaching the targeted EBIT margin by 2022 GESCO ACQUISITIONS acquiring up to 3 Hidden Champions per year with intensified M&A activities EXTERNAL GROWTH (corresponds to a margin of roughly 4% of Group net income after minority interest) 17

18 APPENDIX Shareholder Structure 13.7 % STEFAN HEIMÖLLER (private investor, entrepreneur, supervisory board member since 2013) 86.3% FREEFLOAT ACC. TO DEFINITION OF DEUTSCHE BÖRSE 14.4 % INVESTMENTAKTIENGESELLSCHAFT FÜR LANGFRISTIGE INVESTOREN TGV (institutional investor, represented in supervisory board since 2017) ~35.9 %* other private investors ~36.0 %* other institutional investors * estimate 18

19 APPENDIX Significant GESCO Group companies Segment PRODUCTION PROCESS RESOURCE HEALTH & INFRASTRUCTURE MOBILITY Company/Group Sales Staff Share GESCO AG C.F.K. 8, % Georg Kesel Group 10, % MAE Group 42, % VWH 12, % Dörrenberg Group 181, % Pickhardt & Gerlach Group 29, % SVT 41, % AstroPlast 12, % Frank Group 29, % Franz Funke 16, % Haseke 13, % Hubl 13, % Setter Group 26, % Paul Beier 10, % Dömer 15, % Modell Technik 11, % Werkzeugbau Laichingen Group 23, % 19

20 APPENDIX Please note: different financial year Financial year OPERATING COMPANIES 1 st Jan st Dec 2017 Financial year GESCO AG/GESCO GROUP 1 st Apr st Mar

21 APPENDIX GESCO Facts and Figures FACTS AND FIGURES FOR GESCO AG Founded: 1989 Share capital: 10,839,499 Shares: 10,839,499 registered shares Stock markets: Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart (open market) Sec. Identification Number: A1K020 ISIN: DE000A1K0201 IPO: 24 March 1998 End of financial year: 31 March Designated Sponsors: equinet Bank AG Oddo Seydler Bank AG FINANCIAL CALENDER 11 January 2018 Oddo BHF Forum, Lyon, France 14 February 2018 Q3 figures ( ) 21/22 February 2018 Oddo BHF Conference, Frankfurt/Main 28 June 2018 Annual Accounts Press Conference / Analysts Meeting 14 August 2018 Q1 figures ( ) 30 August 2018 Annual General Meeting, Wuppertal 14 November 2018 Q2 figures ( ) INVESTOR RELATIONS GESCO AG Phone: Investor Relations Fax: Oliver Vollbrecht info@gesco.de Johannisberg 7 Web: Wuppertal Germany 21