INVESTMENT OPPORTUNITY

Transcription

1 INVESTMENT OPPORTUNITY MARIBORSKA LIVARNA MARIBOR (MLM) D.D. A Slovenian producer of aluminium and copper alloy products. August 2017

2 Investment opportunity With the transfer of assets in 2014 from Slovenian banks, the Bank Asset Management Company ( BAMC ) became a major creditor of the company ( Company ), a Slovenian producer of aluminium and copper alloy products. At this point BAMC is considering selling its collateralised loan exposure in the company in the amount of EUR 16 million. Interested investors would also have an opportunity to discuss the acquisition of BAMC s 67.24% ownership stake in the company. Due to ongoing financial restructuring the ownership structure and debt will change in the future according to the measures determined in Slovenian Insolvency Law. The Company offers the following key investment opportunities: Based on a 90-year tradition in its field of production, the company has developed into a modern company with a high level of technological expertise and a diverse range of products. Its production programmes include the production of aluminium die-casting parts with machining, production of tools and the production of forged semi products out of copper alloys. In 2015, the company produced 5,632 tons of die-casting parts, 630 tons of forgings and manufactured die-casting tools in the value of EUR 4.7 million. The main part of the production is intended for customers in the automotive industry. The company uses a wide variety of different technologies in its production, such as: CNC machines, melting plant, press foundry, sand-blasting machines, vibratory-grinding machines, impregnation devices, grinding machines, fast-mode automated presses for forging full and hollow forgings, robotised cells and CAD/CAM. Ownership The Company's ownership status is shown in the table below: Owner Ownership in % BAMC REPUBLIKA SLOVENIJA NOVA KBM D.D Source: GVIN Note: due to ongoing financial restructuring the ownership structure will change in the future Bank debt structure The structure of the Company s financial liabilties are shown in the chart below: Source: BAMC records per Note: due to ongoing financial restructuring the structure will change in the future

3 Company profile The company was founded in 1924 and is a major producer of aluminum and copper alloy products, such as aluminum pressure castings. The company has become a significant supplier of the European automotive industry. ALUTEC represents the largest programme in MLM. It occupies its own tool workshop, the die-casting foundry and the machining of tools. Investment in this segment in the last years has enabled the company to assure a high technological and technical level of production for heavy domestic and foreign automobile, electrical and engineering industries. Products and Services A brief overview of the products and services is given below: Tool workshop: tools for (press) die-casting, cutting tools, tools for chill casting, forging tools, fastening devices (for testing and treatment) Semi products from casted aluminium with mechanical treatment: ALUTEC represents the largest programme; activities include (melting, press casting, surface treatment, heat treatment, and the machining of products) Forged semi products from brass alloys used for further mechanical surface treatment and for the installation into the final products (parts of all types of fittings, joining parts, treated forgings of different shapes, assembly parts for electrical- and machine industry); Galvanisation: the company is specialised especially for the galvanic treatment of brass and steel for the following purposes (sanitary and installation technology, medical equipment, furniture industry, metal gallantry, automotive industry). Tools Forged semi products from brass alloys Casted aluminium products Picture source: Company web page

4 Location Currently production is organized in two locations (in distance of 22 km), both less than 3 km away from nearest Motorway/ Expressway connection: Maribor (Oreško nabrežje 9): 38,000m2 built on 53,000m2 of functional land Lenart (Kraigherjeva ulica 22): 7,000m2 built on 17,000m2 of functional land - in the process of sale MLM location in region References Automotive industry: Audi Anvis Cimos Contitech Continental GKN Trelleborg Vibracoustic Volkswagen Wabco Other industry: Belimo, Gardena, G&K, Gorenje, IPA, Luckey, Miele, Rose, Wagner, V-ZUG

5 Key financials Key financials of : Forecast 2017 Revenues 39,785 38,956 41,635 40,118 39,407 EBITDA 2,262 2,345 1,044 1,839 2,311 EBIT (9,125) (3,366) (5,414) (4,052) Net income (16,841) 165 (6,591) 3,742 Total assets 51,687 47,653 41,192 33,193 Equity (20,288) (2,969) 2,798 2,238 Debt 64,914 41,598 28,991 19,984 Average no. of employees EBITDA margin 6% 6% 3% 5% 6% EBIT margin -23% -9% -13% -10% Net income margin -42% 0% -16% 9% ROA -33% 0% -16% 11% ROE nr nr -236% 167% Source: GVIN and Audited Annual report 2016, forecast prepared by MLM Based on new nominations, the management of the company expects the sales will exceed 50 mio EUR in Disclaimer: This document serves the purpose of introducing potential investors to the above-mentioned process and is based on information available at the date of publication. The analyses and conclusions are of a general nature and do not purport to contain all information that may be required or relevant to the investor s evaluation of the above process and the investor is wholly responsible for conducting its own investigation and analysis. Information about previous performance does not guarantee future performance. The information contained herein has not been independently verified. Neither the seller, the financial advisor nor any of their respective affiliate persons makes any representation, warranty or guarantee of any kind, express or implied, as to the accuracy, completeness or reasonableness of the information contained herein or any other written or oral communication transmitted or made available to any investor. Only the representations and warranties that are made in a written agreement relating to the above process, when and if executed, and subject to any limitations and restrictions as may be specified in such agreement, shall have any legal effect.