Zumtobel Group AG Annual Financial Results 2017/18 & Update on strategy development process

Transcription

1 Zumtobel Group AG Annual Financial Results 2017/18 & Update on strategy development process 28 June 2018 title of presentation (change at 1st slide inside the slide master) xx.xx.xxxx

2 Thomas Tschol Chief Financial Officer (CFO) of Zumtobel Group Education Toulouse Business School France Double degree program with the TU Berlin Germany Degree in business administration Business Experience Oct 2017 Mar 2018 Apr 2017 Sept 2017 Jan 2013 Mar 2017 Oct 2011 Mar 2012 Feb 2010 Aug 2011 Since 2001 Konzern Industrie-Anlagenbau/montage Austria Restructuring Manger Asamer Baustoffe AG Austria Chief Financial Officer Mayr-Melnhof Holz Holding AG Austria Chief Financial Officer KLH UK Ltd. United Kingdom Finance Manager Trenkwalder International AG Austria Chief Financial Officer Management Factory Corporate Advisory GmbH Austria Co-founder, Managing Director Cap Gemini Ernst & Young AG Austria Consultant

3 Weak revenues dynamic leads to lower profitability Financials FY 2017/18 at a glance Group revenues 8.2% below prior year, UK and negative FX effects are the biggest drivers for this decline Group adj. EBIT decreases from EUR 72.4 million to EUR 19.7 million driven by: missing contribution from revenues growth ongoing intense price competition Corrective actions initiated - fix costs (selling, development & administrative expenses) favourable influenced by saving measures Net profit falls to minus EUR 46.7 million (PY: plus EUR 25.2 million) no dividend is planned for the 2017/18 financial year Construction of the new production plant in Serbia on plan The new strategy as well as revised medium-term goals will be presented in connection with Q1 2018/19 results

4 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%) -15.0% (fx-adj %) % 5.4% % % 2.8% 2.8% 0.5% -2.1% Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues FY 2017/18 EUR million (minus 9.2%) Revenues 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 FY 2017/18 EUR 9.4 million (margin of 1.0%) Adjusted EBIT FY 2016/17 EUR 53.5 million (margin of 5.3%) 1) Reported EBIT adjusted for special effects

5 Negative growth dynamic but sound profitability 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%) % (fx-adj. -3.3%) % 9.0% % 9.9% % 6.1% % 8.1% Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues FY 2017/18 EUR million (minus 6.5%) Revenues 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 FY 2017/18 EUR 31.4 million (margin of 8.9%) Adjusted EBIT FY 2016/17 EUR 39.6 million (margin of 10.5%)

6 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%) % (fx-adj. -9.5%) % 5.7% 9.4% % 3.3% 3.1% 0.1% -0.3% Q1 Q2 Q3 Q4 Revenues 2016/17 In EUR million Revenues 2017/18 In EUR million Revenues FY 2017/18 EUR 1,196.5 million (minus 8.2%) Revenues FY 2016/17 EUR 1,303.9 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 FY 2017/18 EUR 19.7 million (margin of 1.6%) Adjusted EBIT FY 2016/17 EUR 72.4 million (margin of 5.6%) 1) Reported EBIT adjusted for special effects

7 Simplified illustration to highlight main building blocks of the adj. EBIT development Zumtobel Group adj. EBIT FY 2016/17 vs. FY 2017/18 Lower volume as well as increasing price pressure lead to lower absolute contribution margin (more than 80% is attributable to the lighting segment) Result of cost cutting initiative Primarily lower income from licenses Efficiency gains through group-wide bundling of R&D capacities Adj. EBIT FY 2016/17 [in EUR million] Gross Profit (before R&D) R&D Selling & Administrative Other income Adj. EBIT FY 2017/

8 Net profit at minus EUR 46.7 million Zumtobel Group Income statement in EUR million FY 2017/18 Adjusted EBIT 19,7 as a % of revenues 1,6 Special Effects -27,0 Special effects related to adjustments to the global plant network, streamlining of management and impairment charges EBIT -7,3 s a % of revenues -0,6 Financial results -16,4 Profit before tax -23,7 Income taxes -23,0 Deferred taxes of EUR 18.2 mio resulted primarily from higher valuation discounts for deferred taxes on loss carryforwards. thereof current taxes -4,9 thereof deferred taxes -18,2 Net result for the period

9 Free cash flow at minus EUR 23.9 million Zumtobel Group Cash flow statement in EUR million FY 2017/18 FY 2016/17 Cash flow from operating results Change in working capital Change in other operating items Taxes paid/received Cash flow from operating activities Inflows form the disposals of property, plant and equipment Inflows form the sale of associates Outflows for the purchase of property, plant and equipment and other intangible assets Outflows for the acquisition of associates 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 Free cash flow development (cumulative figures in EUR million) Q1 H1 Q1-Q3 FY FY 2016/17 FY 2017/

10 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key balance sheet data in EUR million 30 April 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 30 April 2018 (30 April 2017: EUR 91.0 million) Secure liquidity position backed by: Syndicated credit facility with a term ending November 2022 and a current max. volume of EUR 250 million (EUR 115 million drawn by 30 April 2018) Two bilateral bank credit agreements of EUR 40 million each with a term extending to September 2018 respectively January 2020 (fully drawn by 30 April 2018) Uncommitted lines of credit totalling EUR 84.5 million as of 30 April 2018 As a % of rolling 12 months revenues

11 Revenues decline in most major markets, particularly in UK Zumtobel Group Regional revenue distribution Q4 2017/18 FY2017/18 Revenues in EUR million Change in % Revenues in EUR million Change in % nominal FX adjusted D/A/CH Northern Europe Benelux & Eastern Europe Southern Europe Asia & Pacific Middle East & Africa America Total ,

12 Development of the construction industry in Europe Latest estimates: Growth continues but at lower pace UK shrinking 7,8% New construction Renovation 6,0% 3,8% 0,8% 1,3% 2,2% 2,0% 1,9% 1,2% 1,4% 1,5% 1,4% 0,9% 1,8% Quelle: Euroconstruct Konferenz Helsinki (Nr.85) 8. Juni 2018 (Forecon)

13 Zumtobel Group Outlook Update on strategy development process Target: To strengthen the focus on customers while reducing complexity and costs Re-establish a stable foundation for profitable growth in the future Short Term Priorities stabilising the business: Stabilise sales development Lean structures focus on streamlining management and administrative functions Efficiency improvements in operations / supply chain Strategy development process: All structures and corporate processes as well as business areas, markets, brands and product portfolios are currently analysed in an open discussion External consultant supports the management team Results will be presented, at the latest, in connection with Q1 release on 4 September

14 Zumtobel Group Outlook Cautious optimism for the 2018/19 financial year We see 2018/19 as a year of transition in which we must do everything to stabilise the operating business and, at the same time, re-establish a stable foundation for profitable growth in the future. The forecast for revenues and earnings in the 2018/19 financial year is connected with substantial uncertainty due to the upcoming major changes in the company, the generally aggressive price competition in the lighting industry and the noticeable deterioration in the operating environment in Great Britain, the Zumtobel Group s most important market. We expect a further decline in revenues, especially during the first half-year. For the full 2018/19 financial year, the Management Board has set a goal to generate a slight year-on-year improvement in adjusted Group EBIT (FY 2017/18: EUR 19.7 million). Further non-recurring charges from the strategic reorientation are also highly probable in the coming quarters

15 Back-up

16 The Management Board The reorganisation of the Management Board is completed Management Board Alfred Felder Chief Executive Officer Thomas Tschol Chief Financial Officer Bernard Motzko Chief Operating Officer

17 ZGS revenues grow by 11.6% to EUR million in FY 2017/18 Zumtobel Group ZGS revenue development Zumtobel Group +9.5% ZGS revenues +17.5% Evolved customer needs drive new integral service offerings % % 41.2 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

18 LED share of group revenues increases to 79.6% (PY: 73.6%) Zumtobel Group LED revenue development Zumtobel Group +8.0% LED revenues -0.7% -3.0% % LED revenues in FY 2017/18 declined by 0.8% to EUR million LED share of group revenues increases to 79.6% (PY: 73.6%) Lighting Segment sales with LED products decline by 2.6% to EUR million (LED Penetration 78.5%) LED sales in Components Segment grow by 2.6% to EUR million (LED Penetration 84.6%) Q1 Q2 Q3 Q4 LED revenues 2016/17 In EUR million LED revenues 2017/18 In EUR million

19 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% 18.0% 18.9% 18.2% 17.3% 17.9% 17.0% 16.9% 15:7% Working capital at EUR million as of 30 April 2018 (PY: EUR million) In % of rolling 12-month revenues, working capital down to 15.7% (PY: 16.9%) Q1 Q2 Q3 Q4 FY 2015/16 FY 2016/17 FY 2017/

20 Supplement data on Special Effects Zumtobel Group Special Effects Special Effects: EUR 27.0 million Adjusted EBIT in EUR million FY 2017/18 FY 2016/17 Reported EBIT Thereof special effects Adjusted EBIT Major positions: Impairment charges: EUR 9.7 million, thereof EUR 6.9 million for write-down to a subsidiary in Great Britain Restructuring: EUR 15.1 million Thereof EUR 5.8 million with respect to the sales of the plant in Les Andelys Thereof EUR 3.7 million with respect of the streamlining of the management Thereof EUR 1.1 million for restructuring of the plant in Guangzhou Thereof EUR 0.8 million for the shutdown of the plant in Usingen

21 Five-Year Overview in EUR million 2017/ / / / /14 Revenues 1, , , , ,246.8 Adjusted EBIT as a % of revenues Net profit/loss for the period as a % of revenues Total assets , , , ,006.6 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) 6,224 6,562 6,761 7,234 7,

22 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)

23 Many thanks for your attention! title of presentation (change at 1st slide inside the slide master) xx.xx.xxxx

24 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)