From melting steel to 3D-printing: investing in the technology-driven German Mittelstand. as at 31 October 2016

Transcription

1 From melting steel to 3D-printing: investing in the technology-driven German Mittelstand as at 31 October 2016

2 1. The business model GESCO an association of industrial SMEs including market and technology leaders Currently 17 operating subsidiaries under the roof of GESCO AG. We think and act on a sustainable and entrepreneurial basis. We operate in established sectors with innovative technologies. We offer technology made in Germany for the world s markets. GESCO is comprised of flexible, operationally independent and entrepreneurially-managed entities that benefit from being part of a strong group. GESCO AG long-term investor and safe haven for succession solutions We acquire and develop industrial SMEs on a long-term basis without exit intentions. Majority acquisitions, generally 100 %. Usually as part of a succession arrangement. New management is offered opportunity to acquire stake of up to 20 % of the new company ( entrepreneur company ). 2

3 2. Portfolio strategy GESCO s portfolio strategy Spring 2016: development of a portfolio strategy of profitable growth based on tried-and-tested GESCO business model Criteria: long-term positive megatrends, comparable end customer markets, similar economic fluctuation and growth rates Definition of 4 relevant end customer market segments Grouping of existing GESCO Group companies into the new segments, new segment reporting as of Q1 2016/2017 Production process technology Resource technology Health and infrastructure technology Mobility technology 3

4 2. Portfolio strategy Production process technology Features: Products / services: End customers: Dynamically growing markets, high degree of innovation, automation, trend towards batch size 1 Robotics and automation solutions in machine and plant construction, technology-intensive manufacturing services Serial producers, e.g. in automotive, steel and consumer goods industries Sales *) : 76.7 mn EBIT *) : 4.5 mn *) unaudited pro-forma figures, financial year 2015/2016 4

5 2. Portfolio strategy Features: Consolidating markets, focus on niches and customer service Resource technology Sales *) : mn EBIT *) : 18.8 mn Products / services: End customers: Customised preparation of primary materials, e.g. materials supply, transport and loading technology Material-intensive industrial companies, globally distributed production structures, broadly diversified *) unaudited pro-forma figures, financial year 2015/2016 5

6 2. Portfolio strategy Health and infrastructure technology Features: Products / services: End customers: Close to end consumers, not very cyclical, relatively resilient to economic fluctuation Components, modules and primary products Providers for mass markets close to end consumers (construction, sanitary equipment, food, hygiene, medicine) Sales *) : mn EBIT *) : 9.5 mn *) unaudited pro-forma figures, financial year 2015/2016 6

7 2. Portfolio strategy Mobility technology Features: Products / services: End customers: Cyclical automotive market, positive outlook driven by technological leaps, e.g. electromobility Tools and moulds, components, parts Vehicle industry, e.g. car, commercial vehicle and rail Sales *) : 85.5 mn EBIT *) : 8.2 mn *) unaudited pro-forma figures, financial year 2015/2016 7

8 2. Portfolio strategy Objective of the GESCO portfolio strategy: enhance value of investment portfolio organically and through acquisitions Respective managing directors continue to have exclusive operating responsibility for GESCO Group companies As the majority shareholder GESCO AG has 3 levers 1. Appointment of best possible management 2. Prioritisation of investment projects within the individual companies which promise the highest return on capital employed in the long term 3. Active consulting and support role of shareholder: Monthly discussions, regular exchange, sparring, best practice Setting focal themes on strategy days: digitalisation and Industry 4.0 Support for technical optimisation projects for profitable growth and cost efficiency, from the beginning of a project to its implementation 8

9 3. Financial year 2015/2016 Please note: FY subsidiaries = calendar year 1 Jan Dec April March 2016 FY GESCO AG / GESCO Group = 1 April to 31 March 9

10 3. Financial year 2016/2017 Starting position and expectations for new financial year Forecast GDP growth: 1.7 % to 1.8 % Forecast VDMA: stagnation at best Agricultural machinery and oil industry: still no growth impetus Industrial customers still generally showing reluctance to invest New growth stimuli still lacking in capital goods industry of relevance to the GESCO Group Ongoing consolidation pressure in the steel industry Widespread low capacity utilisation ramps up the pressure on prices Our measures: Short term: cost reduction, questioning investments Medium term: optimisation projects on cost and opportunities side 10

11 3. Financial year 2016/2017 Q1 Q1 2015/2016 Q1 2016/2017 Change Order intake mn % Sales mn % EBITDA mn % EBIT mn % Group net income after minority interest mn % EPS acc. to IFRS % 31/03/ /06/2016 Equity mn % Equity ratio % Liquid funds mn % 11

12 3. Financial year 2016/2017 Q2 (operating period April to June 2016) Start to new financial year (preliminary figures for the second quarter) Q1 prev. year incl. large order Order intake Q2 approx mn Sales Q2 approx mn Q2 order intake and sales above Q1, book-to-bill > 1 Incoming orders Sales 12

13 3. Financial year 2016/2017 Budget figures June /2016 Actual 2016/2017 Budget Change Group sales mn to % to -0.8 % Group net income after minority interests mn to % to -9.9 % Earnings per share pursuant to IFRS to % to -9.9 % Expectation after Q1: sales and earnings for the full year expected to reach lower ends of ranges at best 13

14 4. The GESCO share Proposal to Annual General Meeting on 25 August 2016: capital increase from company funds and share split Objective: to make the share lighter through higher number of shares in order to enhance the share s attractiveness for private investors and to improve liquidity Implementation: Increase in share capital by 1,330,000 through capital increase from company funds Redistribution of share capital through share split 1:3 All shares are fully entitled to dividends for financial year 2016/2017 Implementation expected in Q

15 4. Share price development (in %) 1 and 10 years GESCO vs. Indices, 1 year GESCO vs. Indices, 10 years GESCO DAX SDAX 15

16 4. The GESCO share Free float: 85.3 % Stefan Heimöller, entrepreneur, member of supervisory board: 14.7 % Investmentaktiengesellschaft für langfristige Investoren TGV: 13.9 % 14.7% Stefan Heimöller 13.9% Investmentaktiengesellschaft für langfristige Investoren TGV approx. 31.4% other institutional investors approx. 40% retail investors 16

17 Appendix GESCO Group overview Company Sales Staff as at 31/12/2015 GESCO AG shareholding AstroPlast Kunststofftechnik GmbH & Co. KG 16, % Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 12, % C.F.K. CNC-Fertigungstechnik Kriftel GmbH 9, % Dömer GmbH & Co. KG Stanz- und Umformtechnologie 15, % Dörrenberg Edelstahl GmbH 179, % Frank Group 27, % Franz Funke Zerspanungstechnik GmbH & Co. KG 15, % Haseke GmbH & Co. KG 12, % Hubl GmbH 12, % Georg Kesel GmbH und Co. KG 11, % MAE Group 44, % Modell Technik Formenbau GmbH 13, % Protomaster GmbH 17, % Setter Group 26, % SVT GmbH 33, % VWH GmbH 11, % Werkzeugbau Laichingen Group 26, % 17

18 Appendix Facts and figures for GESCO AG Founded: 1989 Share capital: 8,645,000 Shares: 3,325,000 registered shares Free float: 85.3% Stock markets: Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg, Hanover, Munich, Stuttgart (open market) Sec. identification number: A1K020 ISIN: DE000A1K0201 IPO: 24/03/1998 End of financial year: Designated sponsors: 31 March equinet Bank AG Oddo Seydler Bank AG 18

19 Appendix Financial calender Financial calendar 14 Nov Q2 figures Nov German Equity Forum, Frankfurt/Main Feb Q3 figures 29 June 2017 Annual Accounts Press Conference / Analysts Meeting Aug Q1 figures 31 Aug Annual General Meeting, Wuppertal Nov Q2 figures 19

20 Appendix Investor Relations contact Investor Relations GESCO AG Telephone: Investor Relations Fax: Oliver Vollbrecht Johannisberg 7 Internet: Wuppertal Germany 20