RELAUNCH ODDO BHF GERMAN CONFERENCE. Frankfurt/Main, 21/22 Feb. 2018

Transcription

1 RELAUNCH ODDO BHF GERMAN CONFERENCE Frankfurt/Main, 21/22 Feb. 2018

2 1989 Founding LONG TERM Investor 4 GROUP SEGMENTS GESCO PROFILE 17 PORTFOLIO COMPANIES 01 IN BRIEF > 500 million GROUP SALES 100% TAKEOVER UP TO 3 Acquisitions per year Market leaders & established players PORTFOLIO HIDDEN CHAMPIONS Future oriented end markets based on MEGA TRENDS INDUSTRIAL Group German MITTELSTAND ~ 2,500 EMPLOYEES WORLDWIDE 36 SITES WORLDWIDE 2

3 01 SEGMENTS IN BRIEF Production process technology Dynamically growing markets, high degree of innovation, automation, batch size 1 Robotics and automation solutions in machine and plant construction, technologyintense manufacturing services Resource technology Consolidating markets, focus on niches and customer service Customised preparation of primary materials, e. g. materials supply, transport and loading technology Health and infrastructure technology Not very cyclical, relatively resilient to economic fluctuation Components, modules and primary products for providers for mass markets close to end customers Mobility technology Cyclical automotive market, positive outlook driven by technological leaps, e. g. electromobility Tools and moulds, components, parts etc. for vehicle industry 3

4 SHARE PRICE DEVELOPMENT 5 YEARS 01 THE SHARE GESCO Share (incl. div.) vs. SDAX and DAX (%) SDAX % DAX +61.4% GESCO +51.3%

5 SHARE PRICE DEVELOPMENT YTD GESCO Share (incl. div.) vs. SDAX and DAX (%) ANALYSTS STATEMENTS 01 THE SHARE GESCO +38.1% SDAX +22.2% DAX + 5.9% GSC Research: / buy / Bankhaus Lampe: / buy / Oddo BHF: / buy / SMC Research: / hold / Equinet: / accumulate / GESCO SDAX DAX 5

6 PORTFOLIO STRATEGY PORTFOLIO STRATEGY 2022 Starting point Long standing successful business model had been losing momentum since 2012/2013. Action In 2016/2017 we set a lot of actions in motion in order to lead GESCO back to the path of profitable growth. PORTFOLIO STRATEGY 2022 RELAUNCH 6

7 01 ANALYSE SITUATION Are our existing business model and our role as shareholders still suitable to achieve our goals? PORTFOLIO STRATEGY 2022 Phase of analysis terminated 02 ANALYSE MEGA TRENDS Which markets are attractive for us? 03 STRUCTURING OF SEGMENTS Which competences are the basis on which we shape our future? 01 PORTFOLIO STRATEGY BENCHMARK FOR EACH COMPANY How do we secure leading positions and margines? DECISION Q1/2016 the business model had to be further developed in order to realize improvement potential GESCO had to take a more active part in its shareholder role DECISION Q1/2016 growth markets related to mega trends focus put on 4 end customer market segments DECISION Q2/2016 GESCO competences identified Portfolio reshaped into 4 Group segments basis for focussed growth strategy foresees up to 3 acquisitions per year DECISION Q3/2016 Competitive benchmarking realised for each company optimisation potential identified support needs substantiated resulting gaps quantified 7

8 05 MANAGEMENT LEVER How do we best fulfil our duties as a shareholder? PORTFOLIO STRATEGY 2022 Optimizations started 06 GROWTH LEVER Which mix of measures helps us to get better? 07 MANAGEMENT METHOD How can the holding generate added value while maintaining high degrees of liberty? 01 PORTFOLIO STRATEGY VALUES & CULTURE DEVELOPED How can we preserve values and at the same time develop a strong culture of performance and results? DECISION Q4/2016 robust organization: placement of managing directors & key positions prioritization on investments for growth & competitiveness consultative support to the portfolio companies DECISION 03 04/2016 concrete actions developed and anchored in planning focus on revenue growth and competitiveness Increase cash flow through new focus on working capital DECISION 03 04/2016 annual strategy meetings used as kick off for strategic planning ambitious 3 year targets agreed with the Managing Directors consulting by portfolio managers in financial and technical topics & projects DECISION 03 04/2016 cultural change has been initiated operational degrees of freedom have been retained stronger focus on obligation and achievement have been put in place 8

9 A REFINING ACQUISITION FIELD OF BUSINESS processing of strip steel with brass, copper, nickel & zinc SIGNING: DEC CLOSING: JAN ACQUISITION 2016/2017 Profile Pickhardt & Gerlach Group HIDDEN CHAMPION Leading supplier in Europe USPs: QUALITY LEADER & DEDICATED CUSTOMER SERVICE CUSTOMER SECTORS electronics, home accessories, interior fittings, packaging, office supply, household appliances, handicraft & DIY, furniture accessories, sporting goods, automotive ~ 30 m SALES 41 STAFF 01 M&A SPECIALTY high degree of automation, production technology and site state of the art 9

10 FINANCIAL YEAR 2017/2018 Q1 Q3 Dynamic development in first nine months 02 Q1 Q3 Business activity in capital goods industry has picked up significantly PORTFOLIO STRATEGY 2022 in progress, optimisation projects begin to show results Portfolio strengthened by acquisition of Pickhardt & Gerlach Group, included in P+L for the first time in current financial year Incoming orders and sales increased significantly, earnings grew disporportionately Negative one off effect due to decison of a company to discontinue one of its divisions: 2.0 m Positive one off effect due to agreement on a tax issue: +1.7 m EBIT margin increased from 5.4% to 7.5 % Impact of antitrust proceedings against Dörrenberg Edelstahl GmbH currently not quantifiable, not included in Q3 figures Q4 stronger than expected, order intake and sales still on a high level Operating guidance for full financial year significantly increased especially with respect to earnings Impact of antitrust proceedings against Dörrenberg Edelstahl GmbH not included in outlook 10

11 FINANCIAL FIGURES IN DETAIL 02 Q1 Q3 Q1 Q3 2016/2017 Q1 Q3 2017/2018 Change Remark Incoming orders m % organic: +1.2 % Sales m % organic: +5.9 % EBITDA m % EBIT m % Earnings before tax m % Group net income after minority interest m % Earnings per share pursuant to IFRS % Weighted average number of shares No. 9,969,471 10,832, % Employees No. 2,526 2, % Disproportional growth, better capacity utilisation, temporary favourable order mix Disproportional development due to higher no. of shares Increase due to capital increase from March 2017 PGW s staff included for the first time (37 employees), Protomaster s staff no longer included (115) 11

12 SEGMENT DEVEL0PMENT 02 Q1 Q3 Segment m Q1 Q3 Q1 Q3 2016/ /2018 PRODUCTION PROCESS TECHNOLOGY Incoming orders Lively customer demand; segment benefits from trend Sales to automation; in Q3 increasing number of machines EBIT 1.4 delivered 2.0 RESOURCE TECHNOLOGY HEALTH & INFRASTRUCTURE TECHNOLOGY MOBILITY TECHNOLOGY Incoming orders Extraordinarily strong Q1 with especially favourable Sales EBIT environment, normalisation of margins on a high level in Q2 and Q3; Pickhardt & Gerlach included for the first time Incoming orders Lively customer demand, segment benefits from positive Sales development of markets close to end customers EBIT Incoming orders Sales EBIT Good demand for parts for serial production, but tool manufacturing clearly declining; negative one off effect of 2.0 m because a portfolio company decided to discontinue one of its divisions; segment development clearly lagging behind initial expectations; Protomaster GmbH sold on 7 Dec via MBO 12

13 /2018 Q4 (operating business Oct. to Dec. 2017) ORDER INTAKE Q4: +17% YOY SALES Q4: +15% YOY 02 Q O S O Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q S Preliminary figures for Q4: better than expected, business activity still on a high level ORDER BACKLOG END OF Q4: approx. 195 m (without order backlog of Protomaster GmbH which had been sold in Dec. 2017) O = order intake (left) million S= Sales (right) million 13

14 ENVIRONMENT IMPROVED FORECAST German GDP ,4% to +1,8% VDMA Production forecast +3% after years of stagnation OUTLOOK 2017/2018 Expectations for full financial year GESCO GROUP 2016/2017 Actual Group sales m Group net income after minority interest m 7.9 Earnings per share acc. to IFRS 4) /2018 Outlook 6/2017 1) 510 to to to /2018 Outlook 11/2017 2) 2017/2018 Change Outlook yoy 2/2018 3) 530 approx to to OUTLOOK +13% +153% to +166% +133% to +145% Outlook raised significantly especially with regard to earnings 1) as at annual accounts press conference on 29 June ) as at financial report H1 from 14 Nov as at quarterly statement Q3 from 14 Feb ) no. of shares increased due to capital increase from March

15 OUTLOOK 2017/ OUTLOOK Ad hoc from Antitrust proceedings against Dörrenberg Edelstahl GmbH, a 90% subsidiary of GESCO. In depth analysis in progress. Impact on earnings not yet quantifiable, therefore: Impact not included in nine months figures 2017/2018 Impact not included in outlook for full FY 2017/

16 OUTLOOK Expected Segment Development for full FY 03 OUTLOOK PRODUCTION PROCESS TECHNOLOGY RESOURCE TECHNOLOGY HEALTH & INFRASTRUCTURE TECHNOLOGY MOBILITY TECHNOLOGY Sales EBIT Sales EBIT Sales EBIT Sales EBIT Segment benefits from trend to automation, sales and earnings expected above prev. year s figures Profitable organic growth plus strong external growth due to addition of Pickhardt & Gerlach Group; sales and earnings expected clearly above prev. year Benefits from lively demand of end customers; sales and earnings expected above prev. year s figures, although earnings are burdened by one off expenses for growth and optimisation projects in invidivual companies Sales and earnings are expected clearly below prev. year s level 16

17 GOALS PORTFOLIO STRATEGY Portfolio PORTFOLIO STRATEGY 2022 Strategy2022 GESCO PORTFOLIO leading GESCO back to the path of profitable growth by consistently implementing measures in order to reach the ambitious goals agreed with the managing directors INTERNAL GROWTH 8% GESCO GROUP sustainably reaching the targeted EBIT margin by 2022 GESCO ACQUISITIONS acquiring up to 3 Hidden Champions per year with intensified M&A activities EXTERNAL GROWTH (corresponds to a margin of roughly 4% of Group net income after minority interest) 17

18 APPENDIX Shareholder Structure 13.7 % STEFAN HEIMÖLLER (private investor, entrepreneur, supervisory board member since 2013) 86.3% FREEFLOAT ACC. TO DEFINITION OF DEUTSCHE BÖRSE 14.4 % INVESTMENTAKTIENGESELLSCHAFT FÜR LANGFRISTIGE INVESTOREN TGV (institutional investor, represented in supervisory board since 2017) ~35.9 %* other private investors ~36.0 %* other institutional investors * estimate 18

19 APPENDIX Significant GESCO Group companies Segment PRODUCTION PROCESS TECHNOLOGY RESOURCE TECHNOLOGY HEALTH & INFRASTRUCTURE TECHNOLOGY MOBILITY TECHNOLOGY Company/Group Sales Staff Share GESCO AG C.F.K. 8, % Georg Kesel Group 10, % MAE Group 42, % VWH 12, % Dörrenberg Group 181, % Pickhardt & Gerlach Group 29, % SVT 41, % AstroPlast 12, % Frank Group 29, % Franz Funke 16, % Haseke 13, % Hubl 13, % Setter Group 26, % Paul Beier 10, % Dömer 15, % Modell Technik 11, % Werkzeugbau Laichingen Group 23, % 19

20 APPENDIX Please note: different financial year Financial year OPERATING COMPANIES 1 st Jan st Dec 2017 Financial year GESCO AG/GESCO GROUP 1 st Apr st Mar

21 APPENDIX GESCO Facts and Figures FACTS AND FIGURES FOR GESCO AG Founded: 1989 Share capital: 10,839,499 Shares: 10,839,499 registered shares Stock markets: Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg, Hannover, München, Stuttgart (open market) Sec. Identification Number: A1K020 ISIN: DE000A1K0201 IPO: 24 March 1998 End of financial year: 31 March Designated Sponsors: equinet Bank AG Oddo Seydler Bank AG 21

22 APPENDIX Financial Calender FINANCIAL CALENDER 14 February 2018 Q3 figures ( ) 21/22 February 2018 Oddo BHF German Conference, Frankfurt/Main 28 June 2018 Annual Accounts Press Conference / Analysts Meeting 14 August 2018 Q1 figures ( ) 30 August 2018 Annual General Meeting, Wuppertal 14 November 2018 Q2 figures ( ) 22

23 INVESTOR RELATIONS GESCO AG Phone: Investor Relations Fax: Oliver Vollbrecht Johannisberg 7 Web: Wuppertal Germany APPENDIX Investor Relations Contact 23

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