Technologies for shaping everyday life

Transcription

1 Technologies for shaping everyday life

2 DO EARLY BIRDS CATCH THE WORMS? Milan, July 15th Banca Akros 1

3 disclaimer This presentation has been prepared by Biesse S.p.A. for information purposes only and for use in presentations of the Group s results and strategies. For further details on the Biesse S.p.A.. reference should be made to publicly available information. including the Quarterly Reports and the Annual Reports. Statements contained in this presentation. particularly the ones regarding any Biesse S.p.A. possible or assumed future performance. are or may be forward looking statements and in this respect they involve some risks and uncertainties. Any reference to past performance of the Biesse S.p.A. shall not be taken as an indication of future performance. This document does not constitute an offer or invitation to purchase or subscribe for any shares and no part of it shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. By attending the presentation you agree to be bound by the foregoing terms. 2

4 our international structure Italy Milano-Treviso-Bergamo U.S.A. Charlotte. NC Ft. Lauderdale FL Asia Singapore Canada Montreal Toronto China Shanghai Germany Elchingen Loehne Gingen France Lyon Spain Barcelona Portugal Syntra India Bangalore Indonesia Jakarta Malaysia Kuala Lumpur Australia Sidney Brisbane Adelaide Melbourne Perth New Zealand Auckland Russia Moscow Sweden Jonkoping Ukraine Kiev U.K. Daventry Dubai U.A.E. Suisse 3

5 Milan, July 15th 2009 reference markets: sizes & shares 4

6 Primary and Secondary woodworking phases: market size 3,2 8,2 billion 2,4 8.2 billion is the secondary woodworking phase 3.2 billion is the part of the secondary woodworking phase where Biesse is insisting 2.4 billion is the primary woodworking phase estimation Primary phase Secondary phase Value of Biesse reference market (company evaluation) 5 5

7 BIESSE market share: wood (panel & solid) Italian Association: ACIMALL 50 % Broad array of products ranging from manual to highly automated machinery In an effort to increase productivity and flexibility costumers have been shifting toward higher end machinery Only four companies/groups have revenues above 300 mln. (including Weinig solid wood specialist) The vast majority are family-run companies BIESSE & HOMAG are the only listed companies Rest of the Market HOMAG SCM * same product segment BIESSE 3,200,000,000. Value of reference market 2nd process CNC machinery (company evaluation) 6 6

8 BIESSE market share: glass (internal glass market) Italian Association: GIMAV 52,2 % 20,4 19,8 7,6 Basically an italian manufacturers market Only 2 companies have market shares over 10% Biesse S.p.A. and Bavelloni (Kyro Group-Finland) are the only listed companies Rest of the Market BOTTERO BAVELLONI BIESSE 330,000,000. Value of reference markets 7

9 BIESSE market share: stone/marble 79,3 % 3,7 6,9 10,1 Italian Association: Marmomacchine Biesse clear worldwide market leader Only 1 company (Biesse) has market share over 10% Biesse S.p.A. and Bavelloni (Glaston Co.) are the only listed companies Rest of the Market BOTTERO BAVELLONI BIESSE 110,000,000. Value of reference markets 8

10 Milan, July 15th 2009 Reluctance to invest because of the missing confidence in the near future and in the meantime. 9

11 The Italian Associations (Italy): mechanical industry Italian Associations: production trend by sector 10

12 The associations point of view: ACIMALL (Italy) ACIMALL (wood) analysis for orders intake from 2000y (=100) ACIMALL (wood) Sentiment consensus 2 quarter

13 The associations point of view: VDMA (Germany) VDMA (wood) Orders intake VDMA (wood) Orders intale standard woodworking machines 12

14 What kind of cycle? More than 80% of sales generated by the furniture industry (mainly kitchen) Average repurchase time cycle is 8-10 years but thanks to mechanical and software upgrades industrial clients tend to have a short cycle (4-5 years) Expected global CAGR rate historically between 2-3% driven by: 1. Economic growth 2. Construction development (housing sector) 3. Increase of furniture spending in emerging markets 4. Progressive migration from solid furniture to lightweight and cheap ready to assemble furniture 5. Replacement & restructuring trend but even Export oriented industry Progressive concentration of the world players Effective price/performance ratio and technology supremacy as winning card to beat the worldwide competition and Biesse is. 13

15 What kind of cycle? and Biesse is: world leader for CNC machining centres with an increasing chance to widen its market shares in all sectors within the furniture and carpentry industry (machines and systems) wide customer base Company (the Ikea sales quote is less than 3% ) strongly oriented towards R&D investments not cyclical tendency to extend innovation & efficiency a Group with a global presence in more than 100 countries through its own sales & distribution network (subsidiaries) more and more a total lean Company with a light and flexible organization all along the production chain 14

16 BIESSE sales breakdown (1) by: geography divisions sales by geography 6,7% 3,9% 6,5% 10,0% 11,9% Italy 21.5% 61,0% Western Europe Eastern Europe North America Asia Oceania Rest of the World sales by business divisions 8,4% 19,7% Wood Glass & Stone M echatronic 71,9% 15

17 BIESSE sales breakdown (2) by: type end users market sales by type 16.5% 5.0% Machines Systems Services 78.5% sales by "end users" * 29,0% 18,0% 53,0% Housing furniture (new & restructuring) Office Furniture Store Fixtures Windows & doors 6% 16

18 Milan, July 15th 2009 what s going on There s an improvement of the order interest machines for clients who want to buy but cannot yet get bank financing. anonimous german competitor 17

19 Milan, July 15th 2009 Liquidity: almost a normal situation Monetary policy: after the 1% goal, BCE is following the credit easing address 18

20 Milan, July 15th 2009: U.S.A. 19

21 Milan, July 15th 2009: U.S.A. Strong ISM index main driven by an extraordinary drop of stocks Still negative the impact of the voice capital goods investments 20

22 Milan, July 15th 2009: Europe long term trend : production capacity & utilisation Lowest levels in capacity utilisation drive down the investments 21

23 Milan, July 15th 2009: Italy fiscal package Tremonti-ter : temporary stimulus package to increase capital goods investment validity: 12 months (July 1st 2009 June 30th 2010) terms: 50% IRES discount regarding capital goods (machinery) beneficiaries: 6,600 producers (Federmacchine source) sales impact: 15% the expected improvement of the domestic 2009 turnover today 21.5% 39.5% Western Europe Italy 22

24 Milan, July 15th 2009: Italy Growth rate by country: year on year gap Italian industrial production: 23

25 Milan, July 15th 2009 Seize Advantage in a Downturn Biesse projects: One Lean Company 24

26 Biesse projects: One Lean Company ORACLE BPR KAIZEN New processes New organization New I.T. systems B.P.R. Business Process Reengineering BIESSE = ONE LEAN COMPANY 25

27 Biesse projects: One Lean Company KAIZEN STRATEGY ORGANIZATION PROCESS PRODUCT BPR 26

28 Biesse lean company % ( m 2 ) Shop floor & offices

29 Milan, July 15th 2009 financials: 28

30 Biesse main economic figures: m Net sales EBITDA % EBIT % ,6 2,7% 4,5% 310,6 9,0% 5,9% ,4% 8,3% 14,0% 9,0% 396,7 16,6% 13,1% 15,5% 11,6% ,0% 14,0% 13,8% 10,8% 454,3 12,5% 7,7% 20% 10% 200-2,0% 0,4% 4,9% 2,0% -6,3% 0% ,3 63,5 78,4 98,9 111,9 64,7-10% 0-14,6% FY 2003 IQ 2004 FY 2004 IQ 2005 FY 2005 IQ 2006 FY 2006 IQ 2007 FY 2007 IQ 2008 FY 2008 IQ % 29

31 Biesse labour cost details: nr. of employees: December 2008: 2,483 March 2009: 2,420 May 2009: 2, m 91,6 29,1% 82,9 26,5% 89,3 24,6% labour cost % of net sales ,2 22,3% 22,5% 110,9 24,4% 25,6 39,5% 30% IQ % 30

32 Biesse Net Financial Position: quarterly trend ,8-6,8 14,1 23,6 18, ,6 1, extraordinary events: buy back: 6.8 mln ,7-8, , ,4-26, ,1-45,2-42,3-50, /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/ /01/

33 Backlog (machines & systems): what ahead ,0 107,8 118,0 112,3 138,0 127,0 119,0 125,0 128,4 116,2 107, ,8 61,2 54,3 0 mar-06 jun-06 sept-06 dec-06 mar-07 june-07 sept-07 dec-07 mar-08 jun 08 sept 08 dec 08 mar-09 may Incoming orders: 6 months 2009 Incoming orders: 6 months % 32

34 Milan, July 15th 2009 Financials trend: Predictions are very difficult, especially about the future Niels Bohr Nobel Prize in Phisics 33

35 Updating the 2009: consolidated revenues /MIL E 2009E E 2009E 2009E 2010E 2009E 2011E Net sales % % % % % 34

36 Updating the 2009: P&L details /MIL E 2009E E 2008E 2009E Value Added % % % Labour cost % % % EBITDA % % % EBIT % % % EBIT normalized 2008: impairment test depreciation ( 4.2m) + receivables extra-fund for potential risks increase ( 3.2) % -21,1-9.2% Net result % %

37 Updating the 2009: personnel cost evolution /MIL Personnel cost evolution Italian manufacturing companies labour cost reduction (CIGo) Subsidiaries labour cost reduction % Personnel cost Inflaction 2008 & meritocracy Biesse Suisse Biesse Dubai & Biesse China Temporary workers & terminated contracts Accrual for 2008 holidays Personnel cost reduction plan Personnel cost 2009e 36

38 Updating the 2009:Cashflow Net Financial Position /MIL E 2009E Gross Cashflow Capex (tangibles&intangibles) Free Cashflow N.F.P : buy back effected for 6.8 mil. 2009e: no dividend payment 2009e: buy back plan expiring in July on hold New M/T facilities for 60 mil. obtained 70% of the outstanding Group financial liabilities is more than 12 month expiry 37

39 Updating the 2009: Net Operating Working Capital /MIL E 2009E Inventories % on net sales % % % Trade receivables % on net sales % % % Trade payables % on net sales % % % Delta N.O.W.C

40 Milan, 15th July 2009 watching the peers 39

41 Updating the Homag and Biesse outlook Biesse /MIL Net Sales E E E EBITDA % EBIT % Gearing 12.5% -3.5% 7.7% -11.9% Net debt/ebitda Homag /MIL Net Sales EBITDA % EBIT % Gearing 2008E 2009E % 1.6% 6.7% -2.7% Net debt/ebitda

42 Milan, 15th July

43 Milan, 15th July

44 Milan, 15th July 2009 shareholding structure 43

45 Biesse shareholding structure: 2009 update treasury shares: 1.78% % Bi.Fin s.r.l ( Selci family) Free float less 2% FCP Echiquier Agenor SIA Funds Ag (Consob source) 44

46 Biesse shareholding structure: 2009 update geographical breakdown > 2% % Italy France U.K. Luxembourg Suisse U.S.A (company source - Istifid) 45

47 Alberto Amurri Biesse Group Financial Manager Head of Investor Relations Dept. Via della Meccanica Pesaro ITALY Tel: +39 (0) / Mob: alberto.amurri@biesse.it 46