Zumtobel Group AG Q1-Q3 2017/ March 2018

Transcription

1 Zumtobel Group AG Q1-Q3 2017/ March 2018

2 Weak revenues dynamic leads to lower profitability Financials Q1-Q3 FY 2017/18 at a glance Group revenues fx-adjusted 4.6% below prior year, UK is the biggest driver for this decline Revenues from the sale of LED products increase by 1.4% and the LED share of Group revenues stands now at 79.2%. Group adj. EBIT decreases from EUR 62.0 million to EUR 20.5 million driven by: missing contribution from revenues growth ongoing price pressure substantially higher warranty provisions Construction of the new production plant in Serbia on plan Sale of Les Andelys (France) plant finalised Adjustment of revenue and earnings guidance for the full 2017/18 financial year on 24 January 2018 Q1-Q3 2017/

3 Significant decline in revenues as well as in adjusted EBIT Lighting Segment Revenue and EBIT development Lighting Segment Revenues Adjusted EBIT 1) -1.6% (fx-adj. +0.1%) % (fx-adj %) % (fx-adj. -5.5%) % 5.4% 9.1% % 2.8% 0.5% 2.8% Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues Q1-Q3 FY 2017/18 EUR million (minus 7.2%) Revenues Q1-Q3 FY 2016/17 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2016/17 Adjusted EBIT 2017/18 in EUR million 1) Reported EBIT adjusted for special effects Adjusted EBIT 2016/17 Adjusted EBIT 2017/18 as a % of revenues Adjusted EBIT Q1-Q3 FY 2017/18 EUR 14.0 million (margin of 2.0%) Adjusted EBIT Q1-Q3 FY 2016/17 EUR 46.4 million (margin of 6.2%) Q1-Q3 2017/

4 Continuation of negative growth dynamic Components Segment Revenue and EBIT development Components Segment Revenues Adjusted EBIT 1) -8.7% (fx-adj. -6.6%) % (fx-adj. -0.9%) % (fx-adj. -3.8%) % 9.0% % 9.9% % 6.1% % Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues Q1-Q3 FY 2017/18 EUR million (minus 6.4%) Revenues Q1-Q3 FY 2016/17 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2016/17 Adjusted EBIT 2017/18 in EUR million 1) Reported EBIT adjusted for special effects Adjusted EBIT 2016/17 Adjusted EBIT 2017/18 as a % of revenues Adjusted EBIT Q1-Q3 FY 2017/18 EUR 24.2 million (margin of 9.2%) Adjusted EBIT Q1-Q3 FY 2016/17 EUR 30.8 million (margin of 10.9%) Q1-Q3 2017/

5 Profitability hit by lower volume and pricing pressure Zumtobel Group Revenue and EBIT development Zumtobel Group Revenues Adjusted EBIT 1) -2.6% (fx-adj. -0.7%) % (fx-adj. -8.3%) % (fx-adj. -4.5%) % 5.7% % 0.7% % 0.1% 3.1% Includes the release of EUR 3 m bonus provision Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues Q1-Q3 FY 2017/18 EUR million (minus 6.7%) Revenues Q1-Q3 FY 2016/17 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2016/17 Adjusted EBIT 2016/17 Adjusted EBIT 2017/18 Adjusted EBIT 2017/18 in EUR million as a % of revenues Adjusted EBIT Q1-Q3 FY 2017/18 EUR 20.5 million (margin of 2.3%) Adjusted EBIT Q1-Q3 FY 2016/17 EUR 62.0 million (margin of 6.4%) 1) Reported EBIT adjusted for special effects Q1-Q3 2017/

6 Simplified illustration to highlight main building blocks of the adj. EBIT development Zumtobel Group adj. EBIT Q1-Q3 2016/17 vs. Q1-Q3 2017/18 Lower volume, increasing price pressure (approx. 5% in the Lighting Segment) as well as increase in warranty provision lead to lower absolute contribution margin Result of recently implemented saving measures Lower income from government grants and licenses Efficiency gains through group-wide bundling of R&D capacities Adj. EBIT Q1-Q3 2016/17 Gross Profit (before R&D) R&D Selling & Administrative Other income Adj. EBIT Q1-Q3 2017/18 [in EUR million] Q1-Q3 2017/

7 Alfred Felder Acting President of the Executive Board Education Doctoral degree in Electrical Engineering of the Technical University of Vienna Business Experience Since 2012 Zumtobel Group AG Acting President of the Executive Board & CSO (since Feb 1, 2018) COO Zumtobel Group ( ) CEO Tridonic ( ) OSRAM SIEMENS Senior Vice President Sales, OSRAM General Lighting, China President and CEO, Osram Opto Semiconductors, Asia Vice President Sales and Marketing, Osram Opto Semiconductors, Malaysia General Manager, BU Organic Light Emitting Displays (OLED), Osram Opto Semiconductors Inc., USA Director of OLED Technology, Osram Opto Semiconductors Inc., USA Department Head, Ceramics Department, SIEMENS AG, Germany Microcontroller / Product Marketing Industrial, Infineon Technologies, Japan Manager Technology Dept., Siemens K.K., Japan Project Manager, Siemens Central R&D, Germany Research Scientist, Siemens Central R&D, Germany Q1-Q3 2017/

8 Stabilizing the operating performance and building the foundation for returning to profitable growth Zumtobel Group Working Agenda for the next 6 months Regain trust by realigning the Zumtobel Group strategy to its historically successful DNA Draw a clear line under disruptive internal struggle over the last few months refocus on customers and innovations Put the client first in everything we do: refocus on innovation leadership and customer intimacy Foster group-wide cooperation and unlock employee motivation Kick start a major joint effort to address all current internal operational challenges Set-up a leaner organization with higher accountability and more focus Create a leaner management team with clear responsibilities as well as higher accountability Critically scrutinize existing structures and processes as well as market, product and brand portfolio Take (bold) decisions, stick to them and implement swiftly Evaluate and rigidly push through further structural cost reductions in all functional areas Work on new Strategy Roadmap with defined actions and targets by June 2018 Q1-Q3 2017/

9 Zumtobel Group Outlook The general development of the professional lighting industry still remains below our original expectations and there are no signs of the hoped-for recovery in the near future Intense price competition in the lighting and components businesses Ongoing revenue decline in Great Britain, the most important single market for the Zumtobel Group Significant cost saving measures implemented in Q3 Adjustment of revenue and earnings guidance for the full 2017/18 financial year on Jan 24, 2018: The Management Board now expects operating results (adjusted EBIT) of EUR 15 to 25 million and a decline of approximately 8% in revenues for the 2017/18 financial year. The previous forecast called for adjusted EBIT of EUR 50 to 60 million and a decrease in revenues of roughly 5%. Additional restructuring costs in Q4 2017/18 as a consequence of ongoing strategic review Q1-Q3 2017/

10 Back-up

11 Revenues decline in most major markets, particularly in UK Zumtobel Group Regional revenue distribution Q3 2017/18 Revenues in EUR million Change in % Revenues in EUR million Q1-Q3 FY2017/18 Change in % nominal FX adjusted D/A/CH Northern Europe Benelux & Eastern Europe Southern Europe Asia & Pacific Middle East & Africa America Total Q1-Q3 2017/

12 LED share of group revenues increases to 79.2% (Q1-Q3 PY: 72.9%) Zumtobel Group LED revenue development Zumtobel Group +8.0% LED revenues -0.7% -3.0% LED revenues in Q1-Q3 FY 2017/18 grow by 1.3% to EUR million LED share of group revenues increases to 79.2% (Q1-Q3 PY: 72.9%) Lighting Segment increases sales with LED products by 0.1% to EUR million (LED Penetration 78.3%) LED sales in Components Segment grow by 2.6% to EUR million (LED Penetration 83.7%) Q1 Q2 Q3 Q4 LED revenues 2016/17 In EUR million LED revenues 2017/18 In EUR million Q1-Q3 2017/

13 ZGS revenues grow by 8.4% to EUR 41.0 million in Q3 Zumtobel Group ZGS revenue development Zumtobel Group +9.5% ZGS revenues +17.5% Evolved customer needs drive new integral service offerings +8.4% ZGS bundles all services of the Zumtobel Group within one business unit Turn Key solutions as well as connectivity systems (incl. emerging lighting) are the biggest revenues drivers within the ZGS offering Q1 Q2 Q3 Q4 ZGS revenues 2016/17 In EUR million ZGS revenues 2017/18 In EUR million Q1-Q3 2017/

14 Net profit for the period at minus EUR 1.7 million Zumtobel Group Income statement in EUR million Q1-Q3 2017/18 Q1-Q3 2016/17 Change in % Revenues Cost of goods sold Gross profit (w/o development) as a % of revenues R&D SG&A expenses Adjusted EBIT as a % of revenues Special effects EBIT as a % of revenues Financial results Profit before tax Income taxes Net profit for the period <-100 Special effects related to adjustments to the global plant network Earnings per share ( in EUR) Q1-Q3 2017/

15 Working capital below prior year level Zumtobel Group Working capital Working capital in % of rolling 12-month revenues 20.4% 20.1% 18.7% 19.2% 18.9% 18.0% 18.2% 17.3% 17.9% 17.0% 16.9% Working capital at EUR million as of 31 January 2018 (31 January 2017: EUR million) In % of rolling 12-month revenues, working capital down to 17.9% (Q1-Q3 PY: 18.2%) Q1 Q2 Q3 Q4 FY 2015/16 FY 2016/17 FY 2017/18 Q1-Q3 2017/

16 Free cash flow at minus EUR 39.3 million Zumtobel Group Cash flow statement Q1-Q3 Q1-Q3 in EUR million 2017/ /17 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) Change in current and non-current financial assets Change in liquid funds from changes in the consolidation range 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 2016/17 FY 2017/18 Q1-Q3 2017/

17 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key balance sheet data in EUR million 31 January April 2017 Total assets ,019.6 Net debt Debt coverage ratio Equity Equity ratio in % Gearing in % Investments Working capital Net debt totalled EUR million as of 31 January 2018 (31 January 2017: EUR million) Secure liquidity position backed by: Syndicated credit facility with a term ending November 2022 and a current max. volume of EUR 300 million (EUR 115 million drawn by 31 January 2018) Two bilateral bank credit agreements of EUR 40 million each with a term extending to September 2018 respectively January 2020 (fully drawn by 31 January 2018) Uncommited lines of credit totalling EUR 84.4 million as of 31 January 2018 As a % of rolling 12 months revenues Q1-Q3 2017/

18 The new Management Board Management Board Alfred Felder Acting President of the Executive Board (from ) Karin Sonnenmoser Chief Finance Officer Bernard Motzko Chief Operating Officer (from ) Q1-Q3 2017/

19 Bernard Motzko Chief Operating Officer (COO) Education Doctoral degree in the filed of Mechanical/Production Engineering Further education in business administration Business Experience 2018 Zumtobel Group AG Diebold-Nixdorf AG Chief operating Officer (since Feb 1, 2018) VP Global Operations Wincor Nixdorf AG VP Global Operations Peacock AG Karmann AG Department Head of Production and Logistics at Paderborn plant Business Controller of Production at Paderborn Plant Department Head of Production Assistance to Department Head of Production Q1-Q3 2017/

20 Financial Calendar June 28, 2018 Annual Results 2017/18 (1 May April 2018) July 17, 2018 July 27, 2018 July 31, 2018 August 1, 2018 August 2, 2018 Record Date fort he Annual General Meeting 42 nd Annual General Meeting Ex-Dividend Day Record Date Dividende Dividend Payout Day September 4, 2018 Report on the First Quarter 2018/19 (1 May July 2018) December 4, 2018 Report on the First Half-year 2018/19 (1 May October 2018) March 5, 2019 Report on the First Three Quarters 2018/19 (1 May January 2019) Q1-Q3 2017/

21 Five-Year Overview in EUR million 2016/ / / / /13 Revenues 1, , , , ,243.6 Adjusted EBIT as a % of revenues Net profit/loss for the period as a % of revenues Total assets 1, , , , 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) 6,562 6,761 7,234 7,291 7,162 Q1-Q3 2017/

22 Many thanks for your attention!

23 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) Annual Results 2016/17 23 June