Zumtobel Group FY 2011/12 results

Transcription

1 Zumtobel Group FY 2011/12 results June 27, June

2 Growth driver energy efficiency Selected reference projects THORN: Street lighting project Durham county (UK) More than Oxane LED street lighting luminaires Energy saving > 40% until 2015 THORN: Airport Neapel (Italy) Clan LED and Quattro LED for indoor and outdoor area; Energy saving: 60%. ZUMTOBEL: Wiener Städtische Ringturm (Austria): Replacement of old lourvre luminaires with LIGHTFIELDS LED: Energy saving: 56% + lower maintenance costs. 2 June

3 Growth driver LED Selected reference projects ZUMTOBEL: Galeria Centercity (South Korea) One of largest media facades in the world (12.600qm) with over LED-light points ZUMTOBEL: Städel Museum (Germany) LED-special solution + ARCOS LED, lighting management system LUXMATE Professional THORN: St. Oswald (Austria) Replacement of traditional metal halide lamp with Plurio LEDs; Energy saving: 84% 3 June

4 Growth driver global market opportunities Selected reference projects ZUMTOBEL: Rookery Building (Chicago/USA) Products: LED-facade lighting ROOK, LED-spot ELEVO TRIDONIC: International airport Abu Dhabi Products: converter, TALEXXchain CRYSTAL CLASSIC THORN: Bosch China HQ (Shanghai/CN) Products: Quattro, D-CO LED Downlight 4 June

5 Good progress in many areas Highlights FY 2011/12 Successful turnaround for Thorn brand Swift execution of necessary adjustments in Components Segment Improvement in working capital management Outstanding LED luminaire product portfolio for Zumtobel brand Growth well above market in Lighting Segment (i.e. market share gains) Set-up of global organisational structure in Lighting Segment Improvement in performance to customer (quality, on-time delivery) Temporary weakness in product portfolio and performance in Components Segment Decelerating revenue growth but sharp rise in fixed costs (R&D, selling expenses) LED business margin currently still below conventional business margin Luminaire business in Asia and the USA remained disappointing 5 June

6 Solid foundation to address strategic challenges and opportunities Financial Highlights FY 2011/12 Group revenues increased by 4.2% to EUR 1,280.3 million development differed widely by segment and region Lighting Segment (Zumtobel and Thorn) with sound 9.2% increase mainly in Europe; US and Asia remained disappointing Components Segment with -6.7% hit by weak market environment and temporary weakness in product portfolio LED revenues with substantial growth of 82.6% to EUR million, reaching 14.3% of revenues (PY: 8.2%) Adj. EBIT of EUR 34.6 million substantially below PY (EUR 78.4 million) due to technology shift, high growth investments and weakness in Components Segment Focus on strict working capital management lead to positive development in both working capital as % of revenues (17.8%) and free cash flow (EUR 22.3 million) Net debt of EUR million on PY level (EUR million) Dividend proposal of EUR 0.20 per share 6 June

7 LED share of Group revenues increases from 8.2% last year to 14.3% Zumtobel Group LED revenue development Zumtobel Group LED revenue development in EUR million Speed of transformation exceeded our expectations % % +85.3% % LED revenues grow by 82.6% to EUR million Lighting Segment increases sales with LED products by 117% to EUR million Zumtobel brand LED penetration: ~20% 10 0 Q1 Q2 Q3 Q4 FY 2010/11 FY 2011/12 Thorn brand LED penetration: ~7% LED sales in Components Segment rise by disappointing 31.4% to EUR 54.7 million. 7 June

8 Fast technology shift to LED leads to a rise in fixed costs Zumtobel Group Development of R&D expenses R&D total (in EUR million)* R&D expenditures nearly doubled over past 5 years Increase by 11.3% to EUR 69.8 million in 2011/ % % % % 50% 70% Focus on energy efficiency, LED, lighting quality and controls & systems Parallel investments into conventional and LED lighting, faster innovation cycles and increasing product and system complexity require higher R&D spending 95% 90% 80% 65% 50% 30% Medium-term forecasts call for R&D expenditures at approx. 5 to 5.5% (unchanged) 2006/ / / / / /12 Conventional LED * Split is management estimate, total R&D includes capitalized development costs 8 June

9 Significant investments in sales activities lead to a rise in fixed costs Zumtobel Group Development of selling expenses Increase in selling expenses (in EUR million) Light is a product that needs explanation Strong direct sales network is key in the Zumtobel Group business model Significant investments in sales activities over the last two year in line with global growth strategy Investments include expansion of sales force, increased marketing expense, training etc. especially for the Zumtobel brand 2006/ / / / / /12 9 June

10 Sound but decelerating growth, earnings burdened by growth investments and fast technology shift towards LED Lighting Segment Revenue and EBIT development Lighting Segment Revenues in EUR million Adjusted EBIT 1) % +10.5% +8.7% +6.2% % 8% % 4.1% 7.2% % 4% % % -0.1% % 0% % -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues FY 2010/11 Revenues FY 2011/12 Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 in EUR million Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 as a % of revenues Revenues FY 2011/12 EUR million (plus 9.2%) Revenues FY 2010/11 EUR million Adjusted EBIT FY 2011/12 EUR 25.6 million (margin of 2.7%) Adjusted EBIT FY 2010/11 EUR 27.0 million (margin of 3.1%) 1) Reported EBIT adjusted for special effects 10 June

11 Severe drop on revenue and EBIT line but improvement measures beginning to take first effect in Q4 Components Segment Revenue and EBIT development Components Segment Revenues in EUR million Adjusted EBIT 1) % % -0.3% % % % % % 15.7% % % 3.4% 20% 15% 10% 5% % % -5% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Revenues FY 2010/11 Revenues FY 2011/12 Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 in EUR million Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 as a % of revenues Revenues FY 2011/12 EUR million (minus 6.7%) Revenues FY 2010/11 EUR million Adjusted EBIT FY 2011/12 EUR 19.5 million (margin of 4.8%) Adjusted EBIT FY 2010/11 EUR 58.4 million (margin of 13.3%) 1) Reported EBIT adjusted for special effects 11 June

12 Group revenue growth mainly burdened by weak Components Segment Zumtobel Group Revenue and EBIT development Zumtobel Group Revenues in EUR million Adjusted EBIT 1) % +9.3% % % % 5.6% % 7.5% % % 10% 8% 6% 4% 2% % % 0% -2% -4% Q1 Q2 Q3 Q4 Revenues FY 2010/11 Revenues FY 2011/12 Revenues FY 2011/12 EUR 1,280.3 million (plus 4.2%) Revenues FY 2010/11 EUR 1,228.2 million Q1 Q2 Q3 Q4 Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 in EUR million Adjusted EBIT FY 2010/11, Adjusted EBIT FY 2011/12 as a % of revenues Adjusted EBIT FY 2011/12 EUR 34.6 million (margin of 2.7%) Adjusted EBIT FY 2010/11 EUR 78.4 million (margin of 6.4%) 1) Reported EBIT adjusted for special effects 12 June

13 Lighting Segment in European core markets as central growth driver Zumtobel Group Regional revenue distribution Regional revenue distribution D/A/CH Eastern Europe Northern Europe Western Europe Southern Europe Europe Asia Australia & New Zealand America Others Q4 2011/12 Revenues in Change EUR million in % 78,9 4,0 17,7 27,6 97,1 23,5 244,8 29,4 29,2 9,6 3,1 0,2 11,7-1,2-22,7-0,8-6,7 0,4 14,1-10,6 FY 2011/12 Revenues in Change EUR million in % 343,3 11,5 76,5 108,2 375,0 93,0 995,9 114,3 123,6 35,7 10,7 7,9 10,5 3,2-12,0 5,3 1,0 1,5 1,0-14,0 Southern Europe Australia & New Zealand Asia America 2.8% 8.9% 7.3% 9.7% Others 0.8% 29.3% D/A/CH 26.8% 6.0% Eastern Europe 8.5% Northern Europe Total 316,1-1, ,3 4,2 Western Europe Europe: 77.8% (PY: 77.0%) 13 June

14 Weakness in Components Segment, investments into growth and LED technology shift constitute major burden on adjusted EBIT Zumtobel Group adj. EBIT-Bridge FY 2010/11 vs. FY 2011/12 Additional revenue of EUR 80 m on solid gross profit margin (20 bps below PY) 27.8 Gross Profit margin 460 bps below PY: - Underutilization of production capacities due to low volumes - Lower revenues with profitable electronic ballasts - Higher share of not yet profitable LED components - High price pressure Global growth strategy requires significant expansion of sales activities (e.g. plus 120 sales people over the last 18 months) 90% of increase is attributable to Lighting Segment Increase in innovation costs as a result of parallel activities in the area of LED and conventional lighting activities as well as shorter innovation cycles. 75% of increase is attributable to Components Segment Adj. EBIT Lighting Segment Components FY 2010/11 Gross Profit 1) Segment Gross Profit 1) Development costs Selling expenses Admin expenses License income Other/ consolidation Adj. EBIT FY 2011/12 1) Gross profit on segment level excluding development costs 14 June

15 Improved financial results and no special effects in FY 2011/12 Zumtobel Group Income Statement Income statement in EUR million Q4 2011/12 Q4 2010/11 Change in % FY 2011/12 FY 2010/11 Change in % Revenues , , Cost of goods sold Gross profit as a % of revenues SG&A expenses adjust for special effects Special effects PY: Revaluation of building: EUR 2.0m, Release of legal provision: EUR 3.1m, Restructuring: EUR -2.8m Adjusted EBIT as a % of revenues Special effects EBIT as a % of revenues Financial results Profit before tax Income taxes Net profit/loss from discontinued operations Net profit for the period Depreciation and amortisation Earnings per share ( in EUR) , <-100 > < < /12: Improved by EUR 2.4m Higher interest expenses (plus EUR 1.5m), Other financial expenses were substantially less negative at EUR -3.9m (PY EUR -8.8m) June

16 Positive development of working capital and free cash flow Zumtobel Group Cash Flow Statement Cash Flow statement Free cash flow development in EUR million Cash flow from operating results FY 2011/ FY 2010/ (cumulative figures in EUR million) Change in working capital Change in other operating items Taxes paid/received Cash flow from operating activities Proceeds from the sale of non-current assets Capital expenditures on non-current assets Capital expenditures on non-current and current financial assets Change in liquid funds from changes in the consolidation range Cash flow from investing activities Free cash flow Q1 H1 Q1-Q3 FY Cash flow from financing activities Effects of exchange rate changes on cash and cash equivalents FY 2010/11 FY 2011/12 Change in cash and cash equivalents June

17 Working capital back in targeted range on solid inventory reduction Zumtobel Group Key data Balance Sheet Working capital in % of rolling 12-month revenues 22.4% 21.9% 20.8% 20.7% 19.8% 19.4% 19.9% 19.2% 19.0% 18.4% 18.0% 18.4% 18.6% 17.8% 16.7% 15.8% Q1 Q2 Q3 Q4 FY 2008/09 FY 2009/10 FY 2010/11 FY 2011/12 Target range: 18% - 20% Working Capital remains a priority for management As % of 12-month revenues, working capital equaled 17.8% as of 30 April 2012 (PY: 18.6%) Inventory reduction (by EUR 17.6m) was main driver for positive development (all above in Components Segment) Working Capital reduction achieved despite decrease of factoring from EUR 50 million to EUR 41.8 million as of 30 April June

18 Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key data Balance Sheet Balance sheet data in EUR million Total assets 30 April , April ,020.5 Liquidity position supported by Net debt Net debt/ebitda Equity , Consortium credit agreement with max. line of EUR 500 million, ending Oct (30. April 2012 EUR 200 million drawn) Equity ratio in % Gearing in % Unsecured line of credit totaling EUR 100,6 million as of 30 April 2012 Investments Working capital As a % of rolling 12 months revenues Dividend recommendation for 2011/12 financial year: 20 cent per share (payout ratio of approx. 50%) 18 June

19 Swift execution of necessary adjustments in Components Segment Components Segment Management issues addressed new COO as of 1 June 2012, search for new CEO ongoing Majority of new generation of electronic ballasts with focus on cost-down already launched Full integration of LED activities into existing Tridonic organisation completed Clear strategic decision to focus LED activities on general lighting e.g. exit commercial refrigeration business Launch of new generation of LED converters and competitive LED modules in preparation Enter partnerships and cooperations to support competitive position (e.g. with Schneider in April 2012) Cost saving and capacity adjustment measures to stabilize earnings position introduced (e.g. headcount reduction by 368 employees, shut down of magnetic plant in Malaysia etc) Inventory reduced by ~ EUR 16 million over the last 12 months 19 June

20 Striking the right balance between investing into future growth and adjusting cost structure to market demand Zumtobel Group Outlook Zumtobel Group outlook for FY 2012/13: Year-on-year improvement in revenues (2011/12: EUR 1,280.3 million) and the adjusted EBIT margin (2011/12: 2.7%) despite Increasingly negative economic outlook Increased risk of government austerity programmes holding back public spending on lighting The challenge for FY 2012/13 is striking the right balance between Focus on medium term growth opportunities (Energy efficiency, LED, additional global market opportunities) Continuing investments into innovative product portfolio (LED products, Control & Systems) Adjusting total cost structure in both segments to market demand / market opportunities Zumtobel Group Mid-term targets: Market growth assumption of 4% p.a. no longer appears realistic Medium term revenue growth target of approx. 10% CAGR needs to be adjusted downwards (Lighting Segment and Components Segment) to reflect economic developments Target EBIT margin for the Group of > 10% over the medium term under stable economic conditions 20 June

21 Financial Calendar Fri, July 27, th ordinary Shareholders Meeting Tues, July 31, 2012 Ex-dividend Day Fri, Aug. 3, 2012 Dividend Payout Day Wed, Sep. 5, 2012 Report on the 1 st Quarter 2012/13 (May 2012 Jul. 2012) Wed, Dec. 5, 2012 Interim Financial Report 2012/13 (May 2012 Oct. 2012) Tues, Mar. 5, 2013 Report on the 3 rd Quarter 2012/13 (May 2012 Jan. 2013) 21 June

22 Passion for Light Thank you for your attention! 22 June

23 Share price reflects volatile stock market climate and weak operating performance Zumtobel AG Development of Zumtobel Share in FY 2011/12 Zumtobel share price performance vs. ATX Shareholder structure 140% 120% 100% 80% 60% 40% 20% Zumtobel AG ATX Free Float > 50% Zumtobel family 35.4% Delta Lloyd AM > 5% FMR LLC (Fidelity) > 5% 57% decrease in share price in 2011/12 (PY +50%) Zumtobel family holds 35.4% of the share capital bound by a syndicate agreement (expires in Dec 2014) Dividend recommendation for 2011/12 financial year: 20 cent per share (payout ratio of approx. 50%) 23 June

24 Five-Year Overview in EUR million 2011/ / / / /08 Revenues 1, , , , ,282.3 Adjusted EBIT as a% of revenues Net profit/loss for the period as a % of revenues Total assets 1, , , ,082.4 Equity Equity ratio in % Net debt Cash flow from operating results Investments as a % of revenues Headcount incl. contract worker (full-time equivalent) 7,456 7,814 7,329 7,165 7, June

25 Disclaimer The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to predict. Therefore, actual outcomes or results may differ materially from what is expressed, implied or forecasted in these statements. Neither Zumtobel AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document, the facts and/or information. Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Zumtobel AG as of the date this document was made. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Zumtobel AG as being accurate. Contacts: Investor Relations Tel.: +43 (5572) June