NORDICS INVESTOR MEETINGS SEPTEMBER 2012

Transcription

1 NORDICS INVESTOR MEETINGS SEPTEMBER 2012

2 DISCLAIMER PLEASE NOTE THAT THIS PRESENTATION (INCLUDING ANY INFORMATION CONTAINED HEREIN AND ANY INFORMATION, WHETHER OR NOT IN WRITING, SUPPLIED IN CONNECTION WHEREWITH) IS FOR INSTITUTIONAL INVESTORS ONLY. THIS PRESENTATION IS FURNISHED TO YOU SOLELY FOR YOUR INFORMATION, SHOULD NOT BE TREATED AS GIVING INVESTMENT ADVICE AND MAY NOT BE REPRODUCED OR REDISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the dairness, accuracy or completeness of the information contained herein and, accordingly, none of Franz Haniel & Cie. GmbH (hereinafter referred to as the Company or as Haniel ), or any of its parent or subsidiary undertakings or any of such person s officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. This presentation may contain forward-looking statements. In addition to statements which are forward-looking by reason of context, forward-looking statements are indicated by the use of words such as forecast, expect, intend, plan, predict, assume, believe, estimate, may, shall, anticipate or expressions with similar meanings. Forward-looking statements are based on certain expectations and assumptions at the time of preparation of this presentation and are subject to risks and uncertainities, e.g. such relating to the future development of the economic and regulatory environment, the behaviour of competitors and other market participants or the ability to successfully integrate acquired business and achieve anticipated synergies. If any of these or other risks and uncertainities occur or if the assumptions underlying any of these statements prove incorrect, actual results may differ materially from those expressed or implied by a forward-looking statement. Therefore, no representation of warranty, expressed or implied, is made regarding any forward-looking statement. Haniel neither intends nor undertakes to update forward-looking statements. Please note that data from external sources cited in this presentation has not been independently verified by Haniel. By accepting this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company s business. This Presentation constitutes neither an offer to sell nor an invitation to buy securities. These materials do not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities and neither these material nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. In particular, these material are not an offer for sale of securities in the United States (as defined in Regulation S under the U.S. Securities Act of 1933). Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither this document nor any part or copy of it may be distributed in or into, directly or indirectly, the United States, its territories or possessions. Neither this document nor any part or copy of it may be distributed into Australia, Canada or Japan. Any failure to comply with these restrictions may constitute a violation of US, Australian, Canadian or Japanies securities laws, respectively. The distribution of this document in other jurisdictions may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This Presentation speaks as of 4 September Neither the delivery of this Presentation nor any further discussions of the Company with any of the recipients shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since such date. This material is given in conjunction with an oral Presentation and should not be taken out of context. 2

3 LONG-TERM HANIEL STRATEGY HANIEL INVESTMENT PORTFOLIO FRANZ HANIEL SUBGROUP SUMMARY 3

4 OVERVIEW Holding Franz Haniel & Cie. GmbH - Founded More than 600 family shareholders Five Corporate Divisions - CWS-boco (100%) - ELG (100%) - TAKKT (70%) - Celesio (55%) - Metro (34%) - Corporate Divisions active in more than 30 countries 4

5 HANIEL INVESTMENT STRATEGY Family ownership with professional corporate governance Long-term value orientation Strategic control Diversification and high quality assets 5

6 CURRENT STATUS OF PROJECT HANIEL 2020 Definition of target portfolio structure Identification of 4 new business segments driven by global megatrends Review of Haniel s Corporate Divisions Launch of strategic initiatives in Haniel s Corporate Divisions to exploit development potential Rebalancing of Haniel portfolio and deleveraging through divestments and acquisitions of new pearls Haniel 2020 reflects our active shareholder and long-term investor philosophy to enhance value creation Strategic initiatives in Corporate Divisions have been implemented New business division will not be built before adequate divestment measures 6

7 LONG-TERM HANIEL STRATEGY HANIEL INVESTMENT PORTFOLIO FRANZ HANIEL SUBGROUP SUMMARY 7

8 OVERVIEW Franz Haniel Subgroup CWS-boco ELG TAKKT Celesio METRO Group - Washroom hygiene and mats -Workwear - Trading and processing of raw materials for the stainless steel industry -B2B direct-marketing specialist for business equipment - Patient and Consumer Solutions -Pharmacy Solutions - Manufacturer Solutions - Self-service wholesale - Hypermarkets - Consumer electronics - Department stores Invested since: 1981 Business Segment: B2B Service Provider Countries: 18 Employees: 7,816* Cycle: low cyclical (late) Invested since: 1983 Business Segment: Trading Countries: 17 Employees: 1,068* Cycle: high cyclical (early) Invested since: 1985 Business Segment: B2B Countries: >25 Employees: 2,003* Cycle: cyclical Invested since: 1962 Business Segment: Retail & Wholesale Countries: 27 Employees: 46,669* Cycle: non-cyclical Invested since: 1966 Business Segment: Retail & Wholesale Countries: 33 Employees: 280,856* Cycle: moderate-cyclical 100% 100% 70% 55% 34% as of * average head count Diversified investment portfolio regarding business models geographic coverage business cyclicality 8

9 CWS-BOCO: INNOVATIVE SERVICES & SOLUTIONS 9

10 CWS-BOCO: FINANCIAL PERFORMANCE 1 ST HY 2012 CWS-boco benefited from positive effects from Focus Future Operational improvements triggered by the repositioning project Lower non-recurring expenses Growth in the first half of 2012 was driven primarily by the textile services segment After 2 years with almost no dividend to FHC in 2009 and 2010, CWS-boco achieved turnaround in 2011 and is back on track Turnover EUR m Operating result EUR m Dividend EUR m +2% +15% HY HY HY HY

11 ELG: STAINLESS STEEL & SUPERALLOYS RECYCLING 11

12 ELG: FINANCIAL PERFORMANCE 1 ST HY 2012 Highly competitive business environment put pressure on margins After a promising start in the new year, overall economic environment weakened which led to decreasing demand for commodities Although ELG increased output tonnage of stainless steel scrap by 2 per cent year-on-year during 1 st half of 2012, turnover declined due to lower price of nickel and iron Despite (early) cyclical business, ELG able to generate substantial dividends year after year Turnover EUR m 1,609-12% 1,415 Operating result EUR m 56-36% 36 Dividend EUR m HY HY HY HY

13 TAKKT: B2B DIRECT-MARKETING SPECIALIST FOR BUSINESS EQUIPMENT 13

14 TAKKT: FINANCIAL PERFORMANCE 1 ST HY 2012 TAKKT benefited from regional diversification Difficult economic environment led to revenue decline in Europe, offset by significant growth generated in the Americas Acquisition of George Patton Associated, Inc. (GPA), a leading US direct marketing company for display articles in the first half of 2012 and Ratioform Holding GmbH, a leading multi-channel direct marketing company for packaging solutions in July 2012 Track record of strong cash generation resulting in special dividends from time to time Turnover EUR m Operating result EUR m Dividend per share EUR % % HY HY HY HY Special dividend Ordinary dividend

15 CELESIO: PHARMACEUTICAL DISTRIBUTION 15

16 CELESIO: FINANCIAL PERFORMANCE 1 ST HY 2012 Celesio successfully pressed ahead with its strategic realignment Celesio sells Pharmexx to United Drug, Movianto to Owens & Minor and initiated sale of DocMorris Positive effects of Operational Excellence Program attributed to growth of operating result despite further non-recurring expenses due to impairment losses and restructuring initiatives Dividend cut by half in 2011 but is expected to rise after successful strategic realignment Turnover* EUR m 11,056 +2% 11,251 Operating result* EUR m % 168 Dividend per share EUR HY HY HY HY * Prior-year-figures adjusted in accordance with IFRS 5; see the explanation in the Selected Explanatory Notes to the consolidated financial statements on page 44 ff. of the Haniel Half-Year Financial Report 2012

17 CELESIO: STRATEGIC REALIGNMENT Stabilisation Realignment Growth Implementation First positive effects of Full positive effect from Operational Excellence Operational Excellence Operational Excellence Program Program Program (EUR 50m p.a.) Stabilizing earnings Further roll out of Roll out European Sell Manufacturer Solutions including Operational Excellence Program Pharmacy Network Roll out end to end DocMorris mail order Pilot phase of European supply chain Pharmacy Network Regional expansion Pilot phase of end-to-end possible supply chain 17

18 METRO GROUP: STRONG BRANDS 18

19 METRO GROUP: FINANCIAL PERFORMANCE 1 ST HY 2012 Sustainable sales growth despite tough trading conditions in times of macroeconomic uncertainties Metro Cash&Carry growth in Asia and Eastern Europe offset turnover decline in Germany Media-Saturn sales line bolstered its leading market position in Europe and implemented new online strategy in 2011/2012 In response to the difficult economic environment, Metro intensified its efficiency and value enhancement programme Shape 2012 Very stable dividend development over the last years Turnover EUR m 30,874 +2% 31,493 Operating result* EUR m % Dividend per share EUR HY HY HY HY-2012 * before non-recurring items

20 METRO GROUP: BUSINESS UNITS Turnover EUR bn Metro Cash & Carry 33.1 Operating result EUR m Turnover EUR bn Real Operating result EUR m ,013 1,111 1,243 1, , , HY/ HY/2012 Turnover EUR bn Media-Saturn Operating result EUR m Galeria Kaufhof Turnover EUR bn Operating result EUR m HY/ HY/ Turnover Operating result before one-off effects

21 OUTLOOK 2012 CWSboco Positive effects are expected from the further implementation of Focus Future measures For 2012, sales growth of c.1% and increase of operating result * are expected ELG ELG is expecting a decline in sales & operating profit due to economic slowdown ELG intends to further strengthen its market and competitive position TAKKT Slight organic reduction in turnover for 2012 expected Continued focus on growth initiatives through roll-out or acquisitions Celesio Stable revenue development in 2012 and operating result * at least on 2011 level expected One-off expenses due to Operational Excellence Program but also first positive impact METRO Group Multitude of initiatives to increase sales and to strengthen competitiveness Increase in sales expected and operating result * roughly matching previous year s level * Before One-off effects 21

22 LONG-TERM HANIEL STRATEGY HANIEL INVESTMENT PORTFOLIO FRANZ HANIEL SUBGROUP SUMMARY 22

23 HANIEL ORGANISATIONAL STRUCTURE Haniel Group Franz Haniel Subgroup FHC FHC: Franz Haniel & Cie. GmbH Haniel Finance Deutschland GmbH, Haniel Finance B.V., Parent Company Financing Subsidiaries & Others Divisions * * The minority investment in METRO GROUP is integrated in the Haniel Group s consolidated financial statements on an At-Equity basis. 23

24 PORTFOLIO VALUE AT MARKET PRICES (3-MONTH AVERAGE AS OF 30TH OF JUNE 2012) 21% Celesio 49% METRO Group % 78% 2.4 9% TAKKT 4% ELG 9% CWS-boco 8% Others Market Value portfolio Net financial debt Unlisted Assets Listed Assets Net financial debt Currently historically low market multiples 24

25 NET FINANCIAL DEBT AND MARKET VALUE GEARING Net financial debt Franz Haniel Subgroup EUR bn -1.3 Market Value Gearing Franz Haniel Subgroup in % Target 0 12/ / / / / /2012 MVG 3 month average Net Financial Debt reduced by about EUR 1.3bn since 2007 Market Value Gearing increased due to recent market deterioration Various measures taken to reduce net financial debt Target net financial debt of EUR 2.1bn 25

26 CASH FLOW 1 ST HALF YEAR 2012 EUR m 1 HY HY-2012 Dividends received Other operating cash flow Interest paid Operating cash flow Dividend payments to shareholders Purchase of treasury shares -4 0 Disposals / Investments 54 8 Cash change in net financial liabilities to unrelated third parties Celesio dividend cut for 2011 offset by TAKKT special dividend Higher interest payments due to tender of EUR 216m of bond 2014 in february 2012 above par and issue of new bond 2018 to extend maturity profile Dividend to shareholders cut by EUR 10m

27 CASH FLOW EUR m expected Dividends received >240 Other operating cash flow Interest paid <-130 Operating cash flow Dividend payments to shareholders Purchase of treasury shares Disposals / Investments >0 Cash change in net financial liabilities to unrelated third parties >0 Total Cash Cover Dividend cuts to shareholders respond to declining cash flows from operations Despite challenging business environment Total Cash Cover for 2012 expected to be

28 NET FINANCIAL DEBT TO UNRELATED THIRD PARTIES EUR m 2,443 2, ,405* /31/11 Dividends received Other operating cash flow Interest Payments Dividends Paid Divestments/ Investments Non-Cash flow related change in net financial debt 6/30/12 Non-cash changes in measurement of eurodenominated bonds 6/30/12 net financial debt* stable at EUR 2,405 million in 1 st half of * Net financial liabilities to unrelated third-parties before adjustment according to IAS 39 AG8 due to rating downgrade

29 DEBT MATURITY PROFILE EXTENDED IN FEBRUARY December 31, 2011 June 30, 2012 EUR m 1,200 1, EUR m 1,200 1, >= >=2018 Other financial liabilities Bonds, CP and other securities Liabilities against shareholders Committed facilities used Other financial liabilities Bonds, CP and other securities Uncommitted facilities used Other bank loans > 1 year Committed facilities used Liabilities against shareholders Extension of debt maturity profile: Issue of EUR 400m bond maturing 2018 in February 2012 combined with buyback of EUR 244m of Bond 2014 in 2011/2012 via OMR and public tender Maturing debt until end of 2013 amounting to EUR 0.3bn easily covered by EUR 0.8bn unused committed revolving bank facilities available beyond

30 CREDIT FACILITIES December 31, 2011 June 30, 2012 EUR m 800 EUR m >= >=2017 Committed facilities unused Committed facilities used Committed facilities unused Committed facilities used Haniel in excellent liquidity position with EUR 1.5bn unused committed credit facilities Successful annual roll-over of majority of bank facilities Long-term bank facilities do not contain any financial covenants, MAC or rating-related events-of-default 30

31 RATING Current Rating S&P: BB (stable outlook) Moody s: Ba2 (stable outlook) Target mid-term Solid investment grade rating (BBB stable outlook) Debt reduction on holding level is high on management agenda Continued moderate dividend payment to Haniel family Key Takeaways Rating Reports Strong asset and financial liquidity Increased Market Value Gearing due to market deterioration S&P calculates 100% recovery for senior creditors in its Loss Given Default scenario Management & shareholders committed to return to stable investment grade rating in the mid-term 31

32 LONG-TERM HANIEL STRATEGY HANIEL INVESTMENT PORTFOLIO FRANZ HANIEL SUBGROUP SUMMARY 32

33 KEY CONSIDERATIONS FOR CREDIT QUALITY 1 Excellent liquidity position Franz Haniel Subgroup Adequate cash generation Haniel has demonstrated its willigness to sell assets if required Haniel remains committed to a net debt reduction and will only invest once free capital has been generated High quality assets with strong and leading market positions Haniel Investment Portfolio Robust business models in economic cycle All corporate divisions highly cash generating Robust operating performance Strategic initiatives show first positive effects and will have sustainable future profit impact 6 Current market values do not reflect fundamental values of corporate divisions 33

34 Thank you for your attention 34