Zumtobel Group AG FY 2014/15 results

Transcription

1 Zumtobel Group AG FY 2014/15 results June 24, June 2015 Annual Results 2014/15

2 Improvement in revenues and earnings, restructuring measures on track Financials FY 2014/15 at a glance Group revenues increase by 5.3% year-on-year (FX adjusted 2.6%) to EUR 1,312.6 million driven by strong growth with LED products (plus 55.9%), positive FX effects and robust demand from key account clients (e.g. retail chains) LED share of group revenues increases to 49.8% in FY 2014/15 (FY 2013/14: 33.6%) Execution of restructuring measures and transformation process is on track and shows positive results negative special effects of minus EUR 25.4 million Group adj. EBIT increases by 39.7% to EUR 66.5 million (Adj. EBIT margin 5.1%) due to improved profitability in both segments Outlook for FY 2015/16 approx. 5% increase in revenues and adj. EBIT of EUR 90 to 100 milllion Dividend proposal of EUR 0.22 per share 2 24 June 2015 Annual Results 2014/15

3 Higher revenues and sequential margin expansion Zumtobel Group Revenues and EBIT development Zumtobel Group Revenues 4.6% 4.8% 2.5% % % 5.7% Adjusted EBIT 1) 8.3% 7.6% 1.4% % Including EUR 4.5 million higher bonus provisions 4.3% 1.7% Q1 Q2 Q3 Q4 Revenues 2013/14 In EUR million Revenues 2014/15 In EUR million Revenues FY 2014/ /14 EUR EUR 1, ,246.8 million million (plus (plus 5.3%) 0.3%) Revenues 2013/14 EUR 1,246.8 million 1) Reported EBIT adjusted for special effects Q1 Q2 Q3 Q4 Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 in EUR million Adjusted EBIT 2014/15 EUR 66.5 million (margin of 5.1%) Adjusted EBIT 2013/14 EUR 47.6 million (margin of 3.8%) Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 as a % of revenues 3 24 June 2015 Annual Results 2014/15

4 LED share of group revenues increases to 49.8% (FY 2013/14: 33.6%) Zumtobel Group LED revenue development Zumtobel Group 56.0% LED revenues 56.1% 57.6% % LED revenues in FY 2014/15 grow by 55.9% to EUR million LED share of group revenues increases to 49.8% (FY 2013/14: 33.6%) Lighting Segment increases sales with LED products by 51.1% to EUR million (LED Penetration 48.7%) Q1 Q2 Q3 Q4 LED sales in Components Segment rise by 79.6% to EUR million (LED Penetration 53.9%) LED revenues 2013/14 In EUR million LED revenues 2014/15 In EUR million 4 24 June 2015 Annual Results 2014/15

5 UK and Benelux were the main growth driver in FY 14/15 Zumtobel Group Regional revenue distribution Zumtobel Group Q4 2014/15 FY 2014/15 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 11.4% 7.4% 28.2% D/A/CH Southern Europe & Latin America Asia & Pacific Middle East & Africa* Northern America Total , Southern Europe & Latin America 15.3% Benelux & Eastern Europe 8.9% 26.1% Northern Europe * incl. India, Central Asia & Turkey 5 24 June 2015 Annual Results 2014/15

6 Restructuring measures take effect and lead to an improvement in profitability Lighting Segment Revenue and EBIT development Lighting Segment Revenues Adjusted EBIT 1) 9.8% 5.9% 4.4% 2.1% % % 6.5% % % 0.8% 6.0% 1.0% Q1 Q2 Q3 Q4 Revenues 2013/14 In EUR million 1) Reported EBIT adjusted for special effects Revenues 2014/15 In EUR million Revenues FY 2014/15 EUR million (plus 5.5%) Revenues FY 2013/14 EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 in EUR million Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 as a % of revenues Adjusted EBIT 2014/15 EUR 63.7 million (margin of 6.4%) Adjusted EBIT 2013/14 EUR 38.3 million (margin of 4.1%) 6 24 June 2015 Annual Results 2014/15

7 Successful transformation process Components Segment Revenue and EBIT development Components Segment - 3.1% 1.6 % Revenues 3.3 % % Adjusted EBIT 1) 7.8% 8.2% 6.2% 7.5% 6.6% 2.9% % 6.6% Q1 Q2 Q3 Q4 Revenues 2013/14 In EUR million Revenues 2014/15 EUR million (plus 2.4%) Revenues 2013/14 EUR million 1) Reported EBIT adjusted for special effects Revenues 2014/15 In EUR million Q1 Q2 Q3 Q4 Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 in EUR million Adjusted EBIT 2013/14, Adjusted EBIT 2014/15 as a % of revenues Adjusted EBIT 2014/15 EUR 28.4 million (margin of 7.2%) Adjusted EBIT 2013/14 EUR 25.1 million (margin of 6.5%) 7 24 June 2015 Annual Results 2014/15

8 Continuation of strong growth with LED-modules and converters Components Segment LED modules LED converters ~ 75% 15.8 ~105% Revenues ~90% ~80% ~135% 24.1 ~150% Revenues ~120% ~% Q1 Q2 Q3 Q4 Revenues 2013/14 In EUR million Revenues 2014/15 In EUR million Q1 Q2 Q3 Q4 Revenues 2013/14 In EUR million Revenues 2014/15 In EUR million European market share of around 9% (PY 8%) for LED Modules and around 14.5% (PY 12%) for LED converters 8 24 June 2015 Annual Results 2014/15

9 Restructuring effects increasingly visible in the P&L Zumtobel Group adj. EBIT FY 2013/14 vs. FY 2014/15 Atos transition, strengthening of central functions and higher consultancy Gross margin 1.1 percentage points above PY due to decreasing indirect COGS Strengthening the technology position 47.6 Sales FTEs reduced by around 120 FTEs over the last 12months (not fully P&L effective yet) but higher expenses for marketing and transportation Adj. EBIT 2013/14 Gross profit (before R&D) R&D Selling Administration Others Adj. EBIT 2014/15 [in EUR million] 9 24 June 2015 Annual Results 2014/15

10 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 FY 2014/15 FY 2013/14 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 Software development share in R&D crossed the 10%-threshold and nearly reached 15% in FY 2014/15 New product rate: Components Segment: 71.3% (2013/14: 54.1%) Lighting Segment: 40.7% (2013/14: 32.6%) June 2015 Annual Results 2014/15

11 Restructuring on track - EUR 25.4 million special effects in FY 2014/15 Zumtobel Group special effects FY 2014/15 Special Effects: EUR 25.4 million Adjusted EBIT in EUR million FY 2014/15 FY 2013/14 Change in % Reported EBIT > 100 Thereof special effects Adjusted EBIT Closure of luminaire plant in Landskrona, Sweden (EUR 7.9 million) Downsizing of luminaire plant in Lemgo, Germany (EUR 5.2 million) Closure of components plant in Fürstenfeld, Austria (EUR 0.7 million) Sale of components plant in Auckland, New Zealand (EUR 2.9 million) Adjustments in the lighting segment sales organisation (EUR 5.5 million) Miscellaneous (EUR 3.2 million) June 2015 Annual Results 2014/15

12 Net result for the period at EUR 11.9 million Zumtobel Group Income statement in EUR million FY 2014/15 FY 2013/14 Change in % Revenues 1, , 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 >100 as a % of revenues Financial results Profit before tax >100 Income taxes Net profit or loss for the period >100 Burdened by negative market valuation of financial instruments (i.e. predominantly CHF Hedge) Earnings per share ( in EUR) > June 2015 Annual Results 2014/15

13 Free Cash Flow at minus 15.2 Mio EUR Zumtobel Group Cash flow statement in EUR million FY 2014/15 FY 2013/14 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) Capital expenditures on non-current and current financial assets Change in liquid funds from changes in the consolidation range Assets/ Liabilities 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 2013/14 FY 2014/ June 2015 Annual Results 2014/15

14 Increase in working capital due to higher inventories Zumtobel Group Working capital Working capital in % of rolling 12-month revenues 20.2% 19.0% 18.2% Target range: 16% - 18% 19.0% 18.2% 18.5% 18.9% 18.0% 17.8% 17.0% 15.8% 16.0% In % of rolling 12-month revenues, working capital increased to 17.8% vs. 16.0% in Q4 PY Increase of inventories (~ EUR 20 million vs. Q4 PY), increase in receivables (~ EUR 28 million vs. Q4 PY) and increase in payables (~ EUR 14 million vs. Q4 PY) Increase in working capital due to increase in business and growth in inventories Q1 Q2 Q3 Q4 FY 2012/13 FY 2013/14 FY 2014/ June 2015 Annual Results 2014/15

15 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key balance sheet data in EUR million 30 April April 2014 Total assets 1, ,006.6 Net debt Debt coverage ratio Equity Equity ratio in % Gearing in % Investments Working capital As a % of rolling 12 months revenues Net debt totalled EUR million as of 30 Apr 2015 (31 Jan 2015: EUR million) Secure liquidity position backed by: Consortium credit agreement with a term extending to October 2016 Two bilateral credit agreements with a term extending to September 2018 respectively January 2020 Unsecured lines of credit totalling EUR 93.4 million as of 30 Apr 2015 Increase in CAPEX by ca. 17% to EUR 76.6 million, among other due to a big investment in an automated assembly line for the production of LED luminaires in our Dornbirn plant and the development of the C&S software Litecom June 2015 Annual Results 2014/15

16 Complete reset of Group structure to realize maximum synergies between all brands & functions Zumtobel Group organizational structure Zumtobel Group* Lighting Segment Components Segment Global Sales 7 regions Global Sales 7 regions Business Division Thorn Business Division Zumtobel Business Division OEM & TPP Business Division Tridonic Product Portfolio Product Development Marketing Product Portfolio Product Development Marketing Product Portfolio Product Development Marketing Product Portfolio Product Development Marketing Global Operations 9 plants Global Operations 4 plants Group Technology Group Purchasing Corporate Functions *simplified illustration June 2015 Annual Results 2014/15

17 Measures to unlock full potential in Global Operations targeting best in class cost structure Progress report Global Operations Key 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 11 plants (before shut downs) Dornbirn, AT Sydney, AU Components Segment 7 plants (before shut downs) Announced shut downs or sale of plants Auckland, NZ Announced downsizing of Lemgo June 2015 Annual Results 2014/15

18 Measures to unlock full potential in Global Sales to balance growth potential with cost savings Progress report Global Sales 1. Cost synergies from merging our two lighting brand sales organizations Reduction of 200 FTEs in the last 24 months (not fully P&L effective yet) Reduction of 22 sales offices 2. Sales force performance programme New incentive system for sales organization and upper management in place 3. Increase share of wallet Initiatives have been started multi-brand approach gains momentum 4. Selective build-up of the sales force in emerging markets June 2015 Annual Results 2014/15

19 Zumtobel Group: We take lighting beyond illumination New mission and vision statement: Unique brands with a clear strategic direction We make great lighting available to all Offering cost efficient high performance lighting We offer the definitive solution to make any lighting smart, connected and efficient Offering a holistic architecture of hard- and software that is easy to use We empower everybody to enjoy the superior light that we all love so much Offering superior lighting that is purposeful and inspiring We take lighting beyond illumination We leverage our multi-brand portfolio to create unique value for our customer June 2015 Annual Results 2014/15

20 Zumtobel Group - medium term targets (2016/17) call for a doubling of profitability FY 2014/15 results - a convincing interim step to reach the set goal Performance 2014/15 EBIT adj. 2013/14 Baseline 3.8% Categories & Measures Targeted margin impact Costs of Goods sold Implementation of an efficient global manufacturing footprint Bill of purchasing reduction + 3-4% +1.1% R&D R&D spending (through P&L) will slightly grow due to higher software content - 0.5% -0.2% SG&A Cost synergies from merging Performance programme Increase share of wallet + 2-3% +0.4% Contingency for market growth, price developments, mix change, inflation, FX effects - 0.5% - EBIT adj. 2016/17 Target 8-10% 5.1% June 2015 Annual Results 2014/15

21 Euroconstruct June forecast: trend reversal to slight market growth confirmed Market environment / trends Growth Forecast for Non-Residential Construction 1.1 Annual Growth Rates in % Forecast for 2016 shows non-residential construction slowly growing in Europe Austria (+0.9%), Germany (+0.9%) with modest growth, Switzerland (-1.1%) declining New build Renovation Total UK (+4.9%) growth engine in Europe, Nordic (+1.5%) slowing down France and Italy expected to be back on growth (+2.8% and +2.7%) Stronger expected growth for new build compared to renovation Source: Euroconstruct, June 2015 Total based on Austria, Belgium, Switzerland, Germany, France, Italy, Netherlands, UK and Nordic June 2015 Annual Results 2014/15

22 Guidance for FY 2015/16 Zumtobel Group Outlook The extensive restructuring in 2014/15 created a solid foundation that will support further growth and the realization of cost synergies. Activities in 2015/16 will focus on the continuous evaluation of additional opportunities to optimize structural costs. Revenues: Based on slight tailwinds from the recovering construction market in Europe, strengthened by the technology shift to LED we expect an increase of approx. 5% in group revenues in FY 2015/16 Earnings: We expect an improvement in adjusted EBIT to EUR 90 to 100 million (adjusted EBIT 2014/15 financial year: EUR 66.5 million) Based on the abovementioned expected positive development, the Management Board will make a recommendation calling for a dividend of EUR 0.22 per share for the 2014/15 financial year June 2015 Annual Results 2014/15

23 Financial Calendar July 24, 2015 July 28, 2015 July 31, th Annual General Meeting Ex-Dividend Day Dividend Payout Day September 8, 2015 Report on the First Quarter 2015/16 (1 May July 2015) December 9, 2015 Report on the First Half-year 2015/16 (1 May October 2016) March 2, 2016 Report on the First Three Quarters 2015/16 (1 May January 2016) June 2015 Annual Results 2014/15

24 Thank you for your attention! June 2015 Annual Results 2014/15

25 Strong growth momentum in Q4 mainly driven by positive currency effects Zumtobel Group Revenues and EBIT development Zumtobel Group Development of revenues over the last 10 quarters 8.1% 9.0% Development of revenues in % vs prior FY quarter 4.6% 4.8% 1.4% 2.5% -3.0% -6.0% -4.4% -3.2% Q3 2012/13 Q4 2012/13 Q1 2013/14 Q2 2013/14 Q3 2013/14 Q4 2013/14 Q1 2014/15 Q2 2014/15 Q3 2014/15 Q4 2014/ June 2015 Annual Results 2014/15

26 Encouraging growth in core business Components Segment revenue bridge FY 2014/15 vs. FY 2013/14 Core Business: ca. plus 15% Components Segment includes loss C&S development services for the Lighting Segment amounting to EUR 11.4 million CS revenues FY 2013/14 [in EUR million] June 2015 Annual Results 2014/15 Electronic ballasts Controls LED components Connection Magnetic ballasts Others CS revenues technology & wire FY 2014/15

27 Measures to unlock full potential in Global Operations targeting best in class cost structure Progress report Global Operations 1. Implementation of an efficient global manufacturing footprint Shut down of production lighting plant Tianjin, China (July 2014 / 70 employees) Shut down of production lighting plant Landskrona, Sweden (Dec / 155 employees) Shut down of production components plant Ennenda, Switzerland (Feb / 115 employees) Sale of Tridonic connection technology in Innsbruck, Austria (May 2014 / 97 employees) Downsizing of production lighting plant Lemgo, Germany (roughly 70 employees) Announcement date: end of Feb 2015 Execution: over the next six months Sale of Tridonic plant in Auckland, New Zealand (June 2015/ 39 employees) 2. Substantial reduction in the bill of material Centralized purchasing function has been implemented June 2015 Annual Results 2014/15

28 Zumtobel share clearly outpaces ATX average Zumtobel Group AG Development of Zumtobel Share over the last 12 months Zumtobel share price performance vs. ATX 180% 160% 140% 120% 100% 80% 60% Share price benefits from restructuring story, strategic reorientation, tailwind from the market and success in managing the LED technology change 63.0% increase in share price in FY 2014/15 ATX increases by 2.4% in FY 2014/15 Share price development (TSR) relative to a peer group is the key performance indicator for the bonus payment to the management Zumtobel Group AG ATX June 2015 Annual Results 2014/15

29 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, June 2015 Annual Results 2014/15

30 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 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 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 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 AG as being accurate. Contacts: Investor Relations Tel.: +43 (5572) June 2015 Annual Results 2014/15