The LEONI Group 1 st 3 rd Quarter The Quality Connection

Transcription

1 The LEONI Group 1 st 3 rd Quarter 2016 The Quality Connection

2 Contents 1. LEONI Group overview 2. LEONI Divisions 3. Report 1 st 3 rd Quarter LEONI Group figures 5. Outlook 6. Appendix LEONI AG 2

3 LEONI Group Overview Divisions Sales breakdown and operating margin Sales breakdown per region Wiring Systems Wiring systems and electrical components for the global automotive industry Total sales: 2.67 billion EBIT: 87 million % margin: 3.3% Employees: 64,745 EMEA 72% thereof Germany 29% Asia 15% Americas 13% Sales 2015: 4.5 billion EBIT 2015: 151 million Wire & Cable Solutions % margin: 3.4% Employees: 74,018 Wires, cables and cable systems for a very wide variety of industrial applications Total sales: 1.84 billion EBIT: 64 million % margin: 3.5% Employees: 9,007 EMEA 56% thereof Germany 21% Asia 22% Americas 22% LEONI AG 3

4 LEONI Group Sales long-term overview 5,500 5,000 4,500 4,000 3,701 3,809 3,918 4,103 4,503 4,400 3,500 3,000 2,500 2,000 1,500 1, ,114 CAGR 15% 2,367 2,108 1,548 2,912 2,160 2, in million estimated major acquisitions Lucas Rists sales about 100 m Kerpen sales about 116 m Studer Draht- und Kabelwerk sales about 84 m Valeo Wiring Systems sales about 574 m Daekyeung sales about 121 m LEONI AG 4

5 Wiring Systems LEONI AG 5

6 Wiring Systems Technical data Technical data of a wiring system Length of cable: more than 3,000 meters Number of single cables: up to 1,500 Number of contacts: up to 3,000 Weight: up to 50 kg LEONI AG 6

7 Wiring Systems Full service provider The division s products and services range from basic cable harnesses to cables for wired sensors to complete ready-to-install wiring systems for cars and commercial vehicles. The product range also comprises high voltage cable harnesses for vehicles with alternative drive technology. Design Electronical Integrated system components wiring systems LEONI AG 7

8 Wiring Systems Sales long-term overview 3,000 2,668 2,600 2,500 2,000 1,500 CAGR 17% 1,511 1,225 1,634 2,024 2,206 2,321 2,400 1, in million estimated major acquisitions Lucas Rists sales about 100 m Valeo Wiring Systems sales about 574 m Daekyeung sales about 121 m LEONI AG 8

9 Wiring Systems Customers (examples) Passenger cars [ 75 % ] Commercial vehicles [ 15 % ] Suppliers [ 10 % ] LEONI AG 9

10 Wiring Systems Customer segments Asian Customers 1.4 % Systems & Components 8.4 % European Customers 24.3 % excl. German Customers German Customers 40.2 % US Customers & Commercial Vehicles 25.7 % as of the end of 2015 LEONI AG 10

11 Wiring Systems Sales per region Sales breakdown per region Final customer market Asia 9.3 % Asia 10.2 % Americas 12.3 % EMEA 78.4 % EMEA 77.4 % Americas 12.5 % as of September 2016 LEONI AG 11

12 Wiring Systems Light vehicles production CAGR +3% % % +2% EMEA Americas Asia Total in million pieces estimated copyright 2016 IHS, Inc. LEONI AG 12

13 Wiring Systems Global facilities number of employees 7,425 2,561 28,743 25,762 2,874 1,767 leased personell USA France Romania Egypt China Mexico Germany Russia Morocco India Brazil UK Serbia Tunisia South Korea Paraguay Portugal Slovakia Ukraine number of employees in total: 67, ,610 leased personell = 70,975 Main production sites Competence centre as of September 2016 LEONI AG 13

14 Wiring Systems Outlook / Forecast Consistent implementation of previously announced measures Market and product development - Further improvement of market position in Asia and the Americas - Enhancement of systems expertise in the segments of components and connectors - Development of innovative solutions for weight reduction and digitalisation Positive business prospects - Order intake of Euro 4.1 billion in Order backlog enlarged to more than Euro 14 billion for the next 5 years - Disproportionately growing market for wiring systems Forecast External sales of about Euro 2.6 billion - EBIT of about Euro 30 million (including Euro 25 million for restructuring and exceptional expenses) Target: Return to profitable growth LEONI AG 14

15 Wire & Cable Solutions (WCS) LEONI AG 15

16 WCS Vision WCS is a leading solution provider of intelligent and secure energy transmission and data management systems Successful positioning in two mega trends: Energy and data management Technology as competitive advantage and as medium to generate additional revenue streams LEONI AG 16

17 WCS Products and market focus Automotive Cable Solutions Industrial Solutions Electrical Appliance Assemblies Conductors & Copper Solutions growth & core in transition LEONI AG 17

18 WCS Solutions provider WCS tomorrow WCS today Smart Services Services Systems Assemblies Components LEONI AG 18

19 WCS Industry 4.0 Industry 4.0 provides new business opportunities on the basis of innovative products, solutions and services that can make a sustainable contribution to the success of WCS. From cables for intelligent systems through intelligent cable systems to smart services. Cables as part of systems with local intelligence and a low degree of interconnection Intelligent cables e.g. for predictive maintenance and fail-safe systems with a high degree of interconnection Customer specific service solutions to support our customers in addressing their challenges and to create added value Cable System Service LEONI AG 19

20 WCS growth & core Automotive Cables for - wiring systems in cars and commercial vehicles - telematics and multimedia - antenna based communication - propulsion and engines - alternative powertrains - safety applications - ergonomics and lighting - driver assistance and active safety systems (axle wiring) - seat heatings Sales: 1, CAGR 10% in million Charging cables for electric vehicles Cables with alternative conductor materials LEONI AG 20

21 WCS growth & core Industrial Solutions Cables, cable systems, optical technologies and services for - plant and mechanical engineering - automation and drives - measurement and control technology - robotics - telecommunication - medical devices - patient monitoring Sales: 1, CAGR 7% in million Cables, cable systems and full service for - structural and civil engineering as well as traffic infrastructure (e.g. installation cables) - large plant and refineries (project-specific instrumentation and power cables) - traffic on board (rolling stock, marine technology) - LAN cable system office (copper and fiber optic cables, systems and accessories) LEONI AG 21

22 WCS in transition Electrical Appliance Assemblies Cables and cable systems for - small appliances - irons - vacuum cleaners - consumer electronics - washing machines - refrigerators - tools - lighting industry Sales: 1, in million LEONI AG 22

23 WCS in transition Conductors & Copper Solutions Wires and strands for - special cable industry - heating system manufacturers Round, stranded copper flexibles and braided copper tapes 1, for - carbon brushes welding equipment mechanical engineering in million 0 Sales: LEONI AG 23

24 WCS Sales long-term overview 2,000 CAGR 13% 1,678 1,603 1,597 1,704 1,835 1,800 1,500 1,381 1,402 1,322 1,154 1, in million estimated major acquisitions Kerpen Sales about 116 m Studer Draht- und Kabelwerk Sales about 84 m LEONI AG 24

25 WCS Customers (examples) Automotive Cable Solutions Industrial Solutions in total about 6,000 customers LEONI AG 25

26 WCS Strategic development and outlook Transformation from cable manufacturer to solutions provider - Expanding the range of systems and services Intensifying the activities in the field of Industrie 4.0 Development of the business model Forecast External sales of about Euro 1.8 billion - EBIT of about Euro 75 million (including Euro 5 million for restructuring ) LEONI AG 26

27 3 rd Quarter 2016 Highlights Fraud case incurs a loss in the third quarter nine-month EBIT at Group level drops to 49.2 million (previous year: million) Adjusted EBIT slightly improved to million after three quarters Consolidated sales of 3.3 billion in the first nine months down a little from previous year Majority stake in Wuhan Hengtong strengthens the Wiring Systems Division s market position in China Full-year forecast reaffirmed with consolidated sales of 4.4 billion and EBIT of about 65 million LEONI AG 27

28 3 rd Quarter 2016 Group sales 1,400 1,200 1,000 1, , , , , , , , , , , Q1 Q2 Q3 Q4 in million Organic growth of more than 3 percent. Adverse effects involving the price of copper of minus 4 % and changes in exchange rates of minus 1.4 % more than offset this growth. LEONI AG 28

29 3 rd Quarter 2016 Group EBIT (12.7) Q1 Q2 Q3 Q4 in million Fraud case causes negative EBIT in the 3 rd Quarter. Adjusted EBIT rose from 32.2 million to 34.8 million in the 3 rd Quarter. 1 Including the exceptional income from the sale of the 50% share in Langfang LEONI Wiring Systems Co. Ltd. of 19.6 million LEONI AG 29

30 3 rd Quarter 2016 Adjusted Group EBIT in million 3 rd Quarter rd Quarter st 3 rd Quarter st 3 rd Quarter 2016 EBIT 29.8 (12.7) Restructuring costs Burden associated with fraud case Effect of purchase price allocation Other adjustments Adjusted EBIT LEONI AG 30

31 3 rd Quarter 2016 Group net income (24.4) Q1 Q2 Q3 Q4 in million LEONI AG 31

32 3 rd Quarter 2016 Free cash flow* (30) (5) (5) (29) (24) -100 (65) (86) (85) (72) Q1 Q2 Q3 Q4 in million 3 rd quarter free cash flow burdened by fraud case and thus significantly lower year-on-year. * Before dividends, purchase or sale of own shares, acquisitions and divestment and taking related costs into account LEONI AG 32

33 1 st 3 rd Quarter 2016 Key figures in million (except employees) 01/07 30/ /07 30/ /07 30/ /01 30/ /01 30/ /01 30/ Consolidated sales 1, , , , , ,309.0 EBITDA EBIT (12.7) adjusted EBIT EBT (18.6) Net income (24.4) Equity ratio in % Net debt Capital expenditures (incl. acquisitions) Employees (as at 30/09) 67,391 74,973 77,013 67,391 74,973 77,013 1 Earnings adjusted for the impact of purchase price allocation, restructuring, impairment of non-current assets, gains on business acquisitions and derivatives relating to business combinations and exceptional burdens associated with the fraud case. LEONI AG 33

34 1 st 3 rd Quarter 2016 Segment reporting Wire & Cable Solutions Wiring Systems LEONI Group in million External sales 1, , , , , , , , ,309.0 EBIT EBIT / external sales 4.9% 4.1% 4.8% 3.9% 3.0% 1.3% 4.3% 3.4% 1.5% LEONI AG 34

35 LEONI Group figures LEONI AG 35

36 LEONI Group Sales long-term overview 5,500 5,000 4,500 4,000 3,701 3,809 3,918 4,103 4,503 4,400 3,500 3,000 2,500 2,000 1,500 1, ,114 CAGR 15% 2,367 2,108 1,548 2,912 2,160 2, in million estimated major acquisitions Lucas Rists sales about 100 m Kerpen sales about 116 m Studer Draht- und Kabelwerk sales about 84 m Valeo Wiring Systems sales about 574 m Daekyeung sales about 121 m LEONI AG 36

37 LEONI Group External sales 2015 Americas 737 Asia 820 EMEA 2,946 thereof Germany 1,151 thereof Europe excl. Germany 991 thereof Eastern Europe 748 thereof Africa 36 Rest of EMEA 20 by regions in million Total 4.5 billion LEONI AG 37

38 LEONI Group EBIT long-term overview CAGR 14% (116) in million estimated 1 Including the exceptional income from the sale of Studer Hard AG of 28 million 2 Adjustment of various pre-year amounts due to amendment of IAS 19 3 Including the exceptional income from the sale of the 50 % share in Langfang LEONI Wiring Systems Co. Ltd. of 19.6 million 4 Including extraordinary burden of 40 million associated with fraud case LEONI AG 38

39 LEONI Group Key ratios Net income 200 ROCE in million in % LEONI AG 39

40 LEONI Group Net debt / Cash flow Net debt / EBITDA Operating cash flow Free cash flow * (38) (12) in million * before dividends, acquisitions and purchase or sale of own shares LEONI AG 40

41 LEONI Group Gearing Equity and net financial debt Equity Net financial debt 1,200 1, in million Gearing 32 % 32 % 31 % 34 % 32 % LEONI AG 41

42 Group forecast Forecast 2016 Consolidated sales of Euro 4.4 billion - Slight decrease in demand - Lower metal prices - Chinese joint venture EBIT of Euro 65 million - Missing contribution to profits - Further impact from critical wiring systems projects - Restructuring expenses - Exceptional burden associated with fraud case Capital expenditures with Euro 230 million on a high level LEONI AG 42

43 Group forecast Perspective Continuation of WSD s efficiency measures Further development of WCS s range of services Bundling of higher-level functions at group level Sustainable efficiency and increase in margins LEONI AG 43

44 Group forecast Key figures Actual figures 2015 Forecast for Consolidated sales billion EBIT million Capital expenditure million Free cash flow million (5.2) (70) Net financial liabilities million Equity ratio % Return on Capital Employed % Guidance including extraordinary burden of 40 million associated with fraud case LEONI AG 44

45 Financial calendar 2017 Preliminary results February 2017 Press Conference on Financial Statements 23 March 2017 Analyst and Investor Conference 23 March 2017 Interim Report 1 st Quarter May 2017 Annual General Meeting 11 May 2017 Interim Report 2 nd Quarter and 1 st Half August 2017 Interim Report 1 st 3 rd Quarter November 2017 LEONI AG 45

46 Contact Investor relations Frank Steinhart Phone +49 (0) Fax +49 (0) Jens von Seckendorff Phone +49 (0) Fax +49 (0) Denise Pfefferler Phone +49 (0) Fax +49 (0) LEONI AG 46

47 Appendix LEONI AG 47

48 UN Global Compact Declaration of support As a company operating globally, LEONI has made it its mission to ensure observance of human rights and recognised labour standards at our facilities. This form of responsibility was already taken on in 2003 with publication of the LEONI Social Charta, continued in 2007 with the LEONI Code of Ethics and taken further forward in 2011 by joining the UN Global Compact. Further informationen about the Global Compact Communication on Progress can be found on our website / downloads / corporate responsibility LEONI AG 48

49 LEONI Group Finance structure per Long-term finance (> 1 year) Amount Placed Term (in million ) (year) (to year) Borrower s note loan matures 2017 EIB loan matures 2018 Borrower s note loan matures 2018 Borrower s note loan matures 2019 Borrower s note loan matures 2020 Borrower s note loan matures 2020 Borrower s note loan matures 2022 Borrower s note loan matures 2022 Borrower s note loan matures 2025 Other loan matures 2019 Total Credit lines: short- / medium- / long-term credit lines about: 589 million As a matter of principal: no covenants / mortgages LEONI AG 49

50 Significant key figures in million in million Sales Growth (index 2011 = 100 %) 3, % 3, % 3, % 4, % 4, % EBITDA EBIT EBT PAT Growth (index 2011 = 100 %) % % Depreciation and amortisation Cash flow from current business operations Investments (cash effective) - Investments in intangible assets and property, plant and equipment - Investments in financial assets and acquisitions Total net debt Equity Gearing Employees (end of period) 60,745 59,393 61,591 67,988 74, % % % Adjustment of various pre-year amounts due to amendment of IAS 19 2 Total net debt / equity LEONI AG 50

51 Significant key figures in % in % EBITDA (in % of sales) EBIT (in % of sales) EBT (in % of sales) PAT (in % of sales) Equity (in % of balance sheet total) Investments 2 (in % of depreciation / amortisation) ROCE 1 3 (in % ) ROCE 2 4 (in % ) ROE 5 (in % ) Adjustment of various pre-year amounts due to amendment of IAS 19 2 Investments in intangible assets and property, plant and equipment 3 EBIT / capital employed 4 PAT BI / capital employed 5 PAT / equity LEONI AG 51

52 Significant key figures per share Shares 1 (million shares) Consolidated net income ( per share) P/E (factor) Dividend (million ) Dividend per share ( ) Dividend yield 2 (in %) BVPS ( ) Market capitalisation 2 (million ) ,775 1,614 1,191 Share price closed ( per share) Share price high for the year ( per share) Share price low for the year ( per share) As per year-end 2 Relating to price at year-end 3 Adjustment of various pre-year amounts due to amendment of IAS 19 LEONI AG 52

53 Consolidated income statement Sales Cost of sales Change million % million % million % 4,502.9 (3,780.0) (83.9) 4,103.4 (3,401.1) (82.9) (378.9) Gross profit on sales Selling expenses 4 (233.8) (5.2) (213.8) (5.2) (20.0) 9.4 General and administrative expenses 5 (236.0) (5.2) (197.4) (4.8) (38.6) 19.6 Research and development expenses 6 (119.9) (2.7) (109.3) (2.7) (10.6) 9.6 Other operating income Other operating expenses 8 (25.6) 0.6 (12.0) (0.3) (13.6) Result from associated companies and joint ventures 9 (0.2) (0.4) (183.6) EBIT (31.2) (17.1) Finance revenue Finance costs 12 (27.0) 0.6 (32.6) (0.7) 5.6 (17.2) Other income from share investments (30.6) Income before taxes (24.8) (16.5) Income taxes 15 (48.6) 1.1 (35.7) (0.9) (12.9) 36.3 Net income (37.8) (32.8) Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 53

54 Consolidated statement of financial position Assets 31/12/ /12/2014 Disposition of funds Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding Source of funds million % million % million million Cash and cash equivalents ,7 Trade receivables and other financial assets Other assets Receivables from income tax Inventories Assets held for sale Total current assets 1, , Property, plant and equipment Intangible assets Goodwill Shares in associated companies and joint ventures Trade receivables from long-term development contracts Other financial assets Deferred taxes Other assets Total non-current assets 1, , Total assets 2, , LEONI AG 54

55 Consolidated statement of financial position Equity and liabilities 31/12/ /12/2014 million % Disposition of funds Source of funds million % million million Current financial liabilities and proportion of long-term financial liabilities Trade accounts payable and other financial liabilities Income taxes payable Other current liabilities Provisions Total current liabilities 1, , Long-term loans Long-term financial liabilities Other non-current liabilities Pension provisions Other provisions Deferred taxes Total non-current liabilities Equity Total equity and liabilities 2, , Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 55

56 Consolidated cash flow statement page 1 in million Consolidated net income Adjustments to reconcile cash provided by activities Income taxes Net interest Dividend income (0.1) (0.1) Depreciation and amortisation Losses on assets held for sale and Intangible assets Other non-cash expenses and income 0.2 (0.2) Result of asset disposals Effect of revaluation and deconsolidation (23.0) 0 Change in operating assets and liabilities, adjusted for the impact of changes in the scope of consolidation Change in receivables and other financial assets (53.2) (48.3) Change in inventories 16.6 (54.5) Change in other assets (5.6) (12.5) Change in provisions 10.6 (7.9) Change in liabilities Income taxes paid (41.9) (32.7) Interest paid (19.6) (24.2) Interest received Dividends received Cash provided by operating activities Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 56

57 Consolidated cash flow statement page 2 in million Capital expenditures for intangible assets and property, plant and equipment (247.6) (219.7) Capital expenditures for other financial assets (0.2) 0.0 Cash receipts from disposal of assets and disposal of assets held for sale (incl. liabilities) Income from disposal of a business operation/ subsidiaries less cash and cash equivalents paid thereof: Disposal proceeds: 0 k (previous year: 120 k) Cash and cash equivalents paid: 0 k (previous year: 0 k) Cash used for capital spending activities (233.2) (218.7) Cash receipts from acceptance of financial debts Cash repayments of financial debts (165.7) (37.6) Dividends paid by LEONI AG (39.2) (32.7) Dividends paid to the non-controlling interest shareholders 0 (0.2) Cash provided by/ used for financing activities Change of cash and cash equivalents 40.9 (26.9) Currency adjustment Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Addition of the individual amounts in million in the above table may deviate from the reported totals due to rounding LEONI AG 57

58 Disclaimer This presentation includes forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. This presentation contains a number of forward-looking statements including, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation and supply and demand. LEONI has based these forward-looking statements on its views with respect to future events and financial performance. Actual financial performance of the entities described herein could differ materially from that projected in the forwardlooking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. Forward-looking statements represent estimates and assumptions only as of the date that they were made. The information contained in this presentation is subject to change without notice and LEONI does not undertake any duty to update the forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations. LEONI AG 58