ANNUAL SHAREHOLDER MEETING Piacenza April 29, 2013
FINANCIALS YEAR 2012
Net sales breakdown: 2009-2012 + 15,7% 115.8 119.1 CAGR 76.9 93.5 +21.6% +28.6% +13.1% Fork clamps
Net sales trend CAGR: years 1998-2012 1998 2008: +14% 2009 2012 +16% IPO 145,6 76,2 78,9 75,1 84 94,7 107,1 141,1 76,9 93,5 115,8 119,1 37,4 41,8 53,2 (1) (2) (3) 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (1) Includes (for 10 months) acquisition of the Finnish company Auramo OY, leader in the market of paper bale clamps (2) Includes acquisition of Brudi (3) Sale of masts business
Consolidated income statement Thousands of Euro 31.12.2011 31.12.2012 % Var. 2012 vs 2011 TURNOVER 115.834 119.088 2,8% EBITDA 9.119 9.456 3,7% EBITDA margin % 7,9% 7,9% EBIT 3.666 3.993 8,9% EBIT margin % 3,2% 3,4% GROUP RESULT AFTER TAXE 1.637 1.737 6,1% margin % 1,4% 1,5% TURNOVER: +2.8% YOY EBITDA :+3.7% YOY, despite 458 K of start up costs in China and 205 K di actuarial losses on assessment of employee benefits NRT RESULT: + 6.1% YOY
Consolidated net financial position Thousands of Euro OPENING NET FINANCIAL POSITION 01.01.2012 (22.472) Net result 1.799 Change in reserves (392) Depreciation 4.903 Change in net working capital (3.279) - Inventories 15 - China new plants- inventories (1.779) - Trade receivables 56 - Trade payables (1.241) - Others (330) Net capital expenditure (6.295) FREE CASH FLOW (3.264) Equity and third parts changes 321 Dividend distribution (1.039) NET FINANCIAL POSITION (26.454) NET FINANCIAL POSITION has passed from 22.5 M at 31.12.2011 to 26.5 M at 31.12.2012 The increase in the period is mainly due to the investments on two new production plants in China for 4 M and increase in stock in China
Analysis of net financial position 3.824 1.039 321 6.310 3.279 2.471 22.472 Net result 1.799 Change in reserve -392 Depreciation 4.903 26.454 Net debt Dec 11 Operating cash flow Change in net working capital Capex (China excluded) China Capex Dividend distribution Equity and third parts changes Thousands of Euro 31.12.2011 31.12.2012 Net debt Dec 12 Cash and cash equivalent 6.716 3.513 Current portion of long term debts (13.135) (16.502) Net financial position - short term (6.419) (12.989) Financial assets held to maturity 60 0 Non current portion of long term debts (16.113) (13.465) Net financial position - M/L term (16.053) (13.465) Net financial position (22.472) (26.454)
Consolidated balance sheet Thousands of Euro 31.12.2011 31.12.2012 Net fixed assets 46.698 48.181 Net working capital 21.123 24.540 Leaving indemnity and other reserves (5.640) (5.140) Net capital employed 62.181 67.581 Net Equity 36.494 36.875 Minority interest 3.215 4.252 Net financial position 22.472 26.454 Net Debt / Equity 0,57 0,64 Rotators
Bolzoni SpA: Income statement Thousands of Euro 31.12.2011 31.12.2012 % Var. 2012 vs 2011 TURNOVER 61.357 62.326 1,6% EBITDA 4.816 4.879 1,3% EBITDA margin % 7,8% 7,8% EBIT 2.088 2.229 6,8% EBIT margin % 3,4% 3,6% TURNOVER: +1.6% YOY EBITDA :+1.3% YOY NET RESULT: + 14.3% YOY GROUP RESULT AFTER TAXES 1.463 1.673 14,3% margin % 2,4% 2,7%
Bolzoni SpA: Net financial position Thousands of Euro OPENING NET FINANCIAL POSITION 01.01.2012 (21.605) Net result 1.673 Change in reserves 335 Depreciation 2.522 Change in net working capital (482) - Inventories 1.094 - Trade receivables 1.311 - Trade payables (1.780) - Others (1.107) Net capital expenditure (1.078) Financial assets (2.635) FREE CASH FLOW 334 Equity and third parts changes (60) Dividend distribution (1.040) NET FINANCIAL POSITION 31.12.2012 (22.371) NET FINANCIAL POSITION has passed from 21.6 M at 31.12.2011 to 22.4 M at 31.12.2012 Financial absorption is mainly determined by investment activities in China interests
Bolzoni SpA: Analysis of net financial position 4.530 2.635 1.040 60 482 1.078 Net result 1.673 Change in reserve 335 Depreciation 2.522 21.605 22.371 Net debt Dec 11 Operating cash flow Change in net working capital Capex Financial assets Dividend distribution Equity and third parts changes Net debt Dec 12 Thousands of Euro 31.12.2011 31.12.2012 Cash and cash equivalent 1.362 1.036 Current portion of long term debts (9.488) (11.135) Net financial position - short term (8.126) (10.099) Financial assets held to maturity 0 0 Non current portion of long term debts (13.479) (12.272) Net financial position - M/L term (13.479) (12.272) Net financial position (21.605) (22.371)
Bolzoni SpA: Balance sheet Thousands of Euro 31.12.2011 31.12.2012 Net fixed assets 55.957 57.173 Net working capital 7.475 7.775 Leaving indemnity and other reserves (2.031) (2.207) Net capital employed 61.401 62.741 Net Equity 39.796 40.369 Net financial position 21.605 22.371 Net Debt / Equity 0,54 0,55 Forks for lift trucks
MARKET TRENDS 2013
Trend in world lift truck market Avg Q 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q1 2013 vs Q1 2012 West Europe 26.327 27.042 24.030 21.656 24.357 24.893-7,9% USA and CANADA 24.116 23.392 24.890 24.852 29.149 24.335 4,0% Asia 78.423 82.501 78.862 71.280 65.013 79.505-3,6% Rest of the world 23.957 22.445 21.386 24.236 22.714 23.770 5,9% World 152.823 155.380 149.168 142.024 141.233 152.503-1,9%
Trend in lift truck market: W.Europe and North America Avg Q 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q1 2013 vs Q1 2012 West Europe 26.327 27.042 24.030 21.656 24.357 24.893-7,9% USA and CANADA 24.116 23.392 24.890 24.852 29.149 24.335 4,0% Asia 78.423 82.501 78.862 71.280 65.013 79.505-3,6% Rest of the world 23.957 22.445 21.386 24.236 22.714 23.770 5,9% World 152.823 155.380 149.168 142.024 141.233 152.503-1,9%
ACTION PLANS TO SUPPORT THE BUSINESS PLAN
ACTION PLANS Exploit opportunities deriving from Cascade acquisition by Toyota Lift truck forks penetration in China- Far East-USA- Europe Increase market share of OEM s Attachments penetration in China and Far East Increase market shares in USA Maintain watch over India and Brazil markets for future developments Innovation: market launch of four new attachment families Develop and give value to people s skills
ACTION PLANS Reduce attachment costs Increase productivity in Bolzoni-Auramo-Meyer Produce parts and componenmts for the Bolzoni Group Reduce inventory and lead times, and increase quality Bolzoni-Auramo-Meyer Produce attachments for the Bolzoni Group
BUSINESS PLAN 2013-2015
KPI 2012-2015 /M 2012 2013E 2014E 2015E Turnover 119,1 135,6 160,0 180,1 EBITDA 9,5 14,2 20,2 25,7 EBITDA margin % 7,9% 10,5% 12,6% 14,2% PFN 26,5 29,9 27,6 21,4 TURNOVER: CAGR is about +15% in period between 2012 and 2015 EBITDA: CAGR is about +39% in period between 2012 and 2015 NET FINANCIAL POSITION is down by about 5 M between 2012 and 2015
Turnover and Ebitda Turnover ( M) Ebitda margin 180 160 140 120 100 80 60 40 20 119 CAGR 12-15 ~ 15% 136 160 180 20,0% 18,0% 16,0% 14,0% 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% 7,9% 10,5% CAGR 12-15 ~ 22% 12,6% 14,2% - 2012 2013E 2014E 2015E 0,0% 2012 2013E 2014E 2015E Estimated turnover in 2015 is around 180 M. Estimated Ebitda in 2015 is around 26 M, with an Ebitda margin of > 14%. Estimated turnover in 2013 is 136 M, with an Ebitda margin of about 10.5%.
Net financial position and working capital Net financial position ( M) % Working capital / turnover 30 30 28 25% 25 20 26 21 20% 15% 20,6% 19,0% 17,2% 16,6% 15 10% 10 5 5% - 2012 2013E 2014E 2015E 0% 2012 2013E 2014E 2015E NET FINANCIAL POSITION passes from 26 in 2012 to 21 M in Y2015 NET FINANCIAL POSITION in 2013 amounts to about 30 M to finance investments and working capital Ratio between NET FINANCIAL POSITION / TURNOVER passes from 2.8 a 0.8. Ratio between WORKING CAPITAL / TURNOVER goes from 20.6% to 16.6%
Financial requirements Expected financial requirements for 2013-2015 business plan are about 17-18 mil. euros These requirements are mainly to support the working capital and investments Main source will come from 5 year unsecured loans 9 mil. euros have already been approved by an important Bank
CHINA PROJECT
BOLZONI HUAXIN: FORKS FOR LIFT TRUCKS Plant based in Longhua (Jing County, Hebei), 250 km south-east of Peking Start-up: June 2012 Land size: 45,000 sq.m. Plant size: 16,300 sq.m. Production capacity: 150,000 pieces per year in 2015, up to 500,000 pieces per year following modifications to plant Employees at third year: about 120 people Features: low costs, industrial area specialised in fork production, steel works in the area, facilitated taxation for first years of activity Total investment: 3.8 mln, of which 1.8 mln paid by Bolzoni
BOLZONI WUXI: ATTACHMENTS FOR LIFT TRUCKS Plant based in Wuxi, 160 km from Shanghai Port Start-up: beginning of 2013 Size of land: 45,200 sq.m. Size of building: 15,000 sq.m. Production capacity: 20 mln Current staff: 50 people full-time to become 150 when plant is up and running Features: lower costs compared to suburban area of Shanghai, good availability of technicians, favourable logistics, suppliers present in the area, facilitated taxation for the first years of activity Total investment: 8.5 mln of which 6.8 mln paid by Bolzoni
SHAREHOLDERS STRUCTURE
SHAREHOLDERS STRUCTURE 24,79% Penta Holding (*) 50,27% 2,04% 2,49% 3,15% 3,51% Market Covati Agostino Intesa San Paolo Lazard Frères Gestion K.P. Staack Paolo Mazzoni 7,70% 6,04% Tamburi Inv. Market Segment: STAR MTA Reuters Code : BLZ IM Bloomberg Code: BLZ IM Specialist: Banca IMI Auditing company: Deloitte Market cap (@ 26 April 2013): 76.2 M Number of shares: 25,993,915 % var. since January 1, 2013: +42.05% Price per share (@ 26 April 2013): 2.932 (*) Penta Holding shareholders are: Emilio Bolzoni, Franco Bolzoni, PierLuigi Magnelli, Luigi Pisani, Roberto Scotti
THE MARKET S VIEWPOINT Emilio Bolzoni
Share trend
What the market thinks of us THREE KEY ELEMENTS 1) The reference market trend, which according to Kion, the PREZZO market leader in lift trucks, along with Toyota TARGET: Industries Corporation 3,95 (TIC), should have a slightly positive outlook in 2013, with Western Europe stable, while China, Asia and Eastern Europe should grow.
What the market thinks of us THREE KEY ELEMENTS PREZZO TARGET: 3,95 2) Bolzoni started to invest in China in 2011 and, after the start of production of forks in June 2012 and attachments at the beginning of 2013, management expects to generate cumulative revenue of around EUR 35M when the plants are fully up and running (2016-17).
What the market thinks of us THREE KEY ELEMENTS 3) the Cascade acquisition by TIC might open significant opportunities for Bolzoni, particularly in the US.
What the market thinks of us THE PLAN Following clearance by the American Antitrust Authority of the Cascade acquisition, the new 2013-15 business plan was released, with the following targets: 1) Revenue at EUR 136M in 2013, rising to EUR 160M in 2014 and EUR 180M in 2015;
What the market thinks of us THE PLAN 2) EBITDA at EUR 14M in 2013, growing to EUR 20M in 2014 and EUR 26M in 2015
What the market thinks of us THE PLAN 3) Net debt, reflecting the working capital absorption to cope with the production increase, jumping in 2013 by around EUR 4M to reach EUR 30M, to subsequently decline to EUR 28M in 2014 and EUR 21M in 2015.
What the market thinks of us ESTIMATES AND ASSESSMENTS 1) In 2013 revenue should grow by around EUR 16M, which should be possible with European sales stable at around EUR 90M, rest of the world sales to increase by around EUR 5M to EUR 20M also thanks to China, and sales in North America to almost double to around EUR 25M, exploiting the change in the competitive scenario after the Cascade acquisition by TIC;
What the market thinks of us ESTIMATES AND ASSESSMENTS 2) Looking to 2014 and 2015, a gradual recovery in Europe should help contribute for an additional EUR 5M revenue for Bolzoni in both years, the remaining additional revenue (EUR 20M in 2013 and EUR 15M in 2015).
What the market thinks of us ESTIMATES AND ASSESSMENTS 3) Looking at the last 3 years, when the EBITDA margin was 7-8%, the 10.5% expected in 2013 is quite challenging, but the higher scale and the start of sales in China should help reach that level. For 2014-15 the expected EBITDA margin should be supported by the higher scale and a greater contribution from China, with margin higher than Bolzoni s profitability, mainly due to fixed costs which are 4-5x lower than those in Western Europe.
What the market thinks of us PRODUCTION PLANTS IN CHINA Chinese lift truck orders have grown steadily throughout 2000-12, with the exception of 2008 (-4.6%) and 2012 (- 9.6%), and the Chinese market is now the largest globally, comparable to Western Europe and North America put together.
What the market thinks of us PRODUCTION PLANTS IN CHINA Moreover, on average the attachment expense for any single lift truck in China is around EUR 275, while in Western Europe it is around EUR 2,130; in other words, the attachment expense in China is around 7.7x lower than in Western Europe.
What the market thinks of us PRODUCTION PLANTS IN CHINA Last but not least, the production of lift trucks in China is entirely domestic, around 70% by local players, with the remaining 30% by international players.
What the market thinks of us PRODUCTION PLANTS IN CHINA Considering the size of the lift trucks market, the low attachment expense and the amount of local production, China is becoming a key market for a worldwide leader in attachments, such as Bolzoni.
What the market thinks of us PRODUCTION PLANTS IN CHINA Regarding the forks business, management intends to invest in 2014 to double to production vs. the amount originally planned, aiming when up and running (3 rd year from start-up) at revenue of around EUR 15M and an EBITDA margin of around 13%..
What the market thinks of us THE CHANGE IN THE INDUSTRY On 22 October, Toyota Industries Corporation (TIC) launched an offer for 100% of Cascade, the worldwide leader in attachments for lift trucks, at a value of USD 65/share, i.e. a counter value of USD 759M. The deal was cleared by the American Antitrust on 28 March 2013.
What the market thinks of us THE CHANGE IN THE INDUSTRY The Cascade acquisition by TIC will probably change the attachments for lift trucks industry. Indeed, the integration is creating a new player able to provide the final client a lift truck, with an average worth of around EUR 32k (based on TIC data for 1H13), equipped with all the attachments needed by the final client, which on average are worth around EUR 2.1k in Western Europe (according to recent Bolzoni presentations).
What the market thinks of us THE CHANGE IN THE INDUSTRY We believe that other lift truck producers will probably not appreciate having to buy from Cascade, because:
What the market thinks of us THE CHANGE IN THE INDUSTRY If Cascade expects to remain independent from TIC, we see some concern for lift trucks producers in sharing new kinds of attachment specifications with a provider which is part of a competitor;
What the market thinks of us THE CHANGE IN THE INDUSTRY If Cascade becomes a key element of competitive advantage for TIC (which could sell a fully equipped lift truck, while competitors could not), we believe it unlikely that any other lift truck producer would continue to buy attachments from Cascade.
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 In terms of production facilities, Bolzoni should be able to support revenue of EUR 180M, as expected by management in 2015.
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 The company posted in 2007 revenue of around EUR 145, with a capacity utilization closed to the full level.
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 On top of this the new plants in China should support revenue of around EUR 20M for attachments and EUR 15M for forks.
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 Therefore, we expect a limited investments needed in terms of production facilities to cope with expected 2015 revenue, while some additional costs in logistic, thus impacting working capital, could be needed.
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 In management view, the EBITDA margin should increase from 7.9% in FY12A to 10.5% in 2013, then to 12.6% and 14.2% in 2014 and 2015, respectively..
What the market thinks of us ASSESSMENT OF BUSINESS PLAN 2013-2015 In a scenario of gradual recovery of all geographical areas, including Europe, the 12.6% EBITDA margin expected by management in 2014 would be broadly in line with the level achieved in 2006-07 mentioned above. The 2015 expected revenue (EUR 160M) would be higher than the record EUR 147.2M revenue posted in 2007, with a 12.1% EBITDA margin.
What the market thinks of us BANCA IMI April 17, 2013 - Target price: Euro 3.95
Contacts: investor.relator@bolzoni-auramo.com +39 0523 555511 Visit our web site: www.bolzoni-auramo.com www.bolzonigroup.com