Rosenbauer Group Person Investors presentation April 6, 2018 Date
Industry development In 2017, world firefighting market falls behind strong global GDP growth Better investment climate and increased demand in key markets indicate slight increase Strongest sales regions are Europe, North America, and Asia Countries highly dependent on the price of oil show the first signs of recovery, but procurement volumes are still significantly below the highs Demand in North America increases by 10% Procurement volumes again exceeding long-term average at around 4,300 vehicles European firefighting market continues to portray an ambivalent picture Demand in Western European countries consistently positive, it remains at a low level in Eastern Europe and Russia Germany +10%, sales of firetrucks in Austria above average again China and India are the largest growth markets in Asia Slide 2
Highlights Consolidated revenues satisfactory in difficult environment Decline in demand due to low oil prices and political unrest continues to have an effect Deliveries to Asian, African, and European countries partially compensate EBIT down on the previous year due to declining delivery volume and non-recurring effects Higher start-up costs at the platform manufacturer Rosenbauer Rovereto Amortization and depreciation Infor and customer base Rosenbauer Rovereto Reorganization of the staff structure in Austria Extraordinary expenses at Rosenbauer Deutschland Distribution policy still geared towards sustainability Dividend proposal of 1.0 per share takes into account lower earnings Record incoming orders of 970 million allows for excellent utilization capacity forecast in the current year Slide 3
Production, service, and sales facilities Karlsruhe / Germany Luckenwalde / Germany Mogendorf & Gladbeck / Germany Oberglatt / Switzerland Chambéry / France Leonding / Austria Neidling / Austria Radgona / Slovenia Moscow / Russia Holmfirth / UK Madrid / Spain Linares / Spain Rovereto / Italy Singapore Rosenbauer America Lyons / SD Brunei Fremont / NB Wyoming / MN Brisbane Riyadh / Saudi Arabia Production Sales / service Jeddah / Saudi Arabia KAEC / Saudi Arabia Halfway House / South Africa Slide 4
Long-term development work Long-term development work based on systematic innovation management and intensive market observation Open innovation culture: Employees as an important source of ideas, customers involved, cooperation with educational and research institutions Products right for the market with recognizable value added for users Traditionally high R&D ratio between 2% and 3.5% Capitalization rate 2017 around 15% Opportunities of Industry 4.0 being actively leveraged 20,0 15,0 10,0 5,0 0,0 19,4 18,6 15,9 14,5 12,6 3,5% 3,4% 2,9% 2,7% 2.6% 2013 2014 2015 2016 2017 R&D expenses R&D ratio million 4,0% 3,5% 3,0% 2,5% 2,0% Slide 5
Strong demand for new PANTHER generation Produced in the fourth generation Strong global representation Presentation of the new PANTHER 8x8 in October 2017 PANTHER 8x8 with optimized driving and firefighting performance Positive incoming orders for the new PANTHER 8x8 32 PANTHER 8x8 for airports in Austria, France, Germany, the Netherlands, Spain, Poland, China, and India All Schiphol Group ARFF vehicles by Rosenbauer from 2020 18 PANTHER in high-end design with extensive special equipment New fleet with optimum life cycle performance Slide 6
Simulators also encounter very positive market response Simulators on offer since 2013 PANTHER simulators are available in four different configurations, mobile version in implementation Significantly reduced training costs Train in an environmentally friendly manner High training efficiency No risk Same control technology like the fire truck Reference projects: Johannesburg, Paris, Ansbach (US army), Cairo, Dusseldorf Full-size PANTHER simulator rented to FRAPORT training center in Slovenia Slide 7
New simulator center in Paris receives extremely positive feedback Slide 8
Firefighting helmet HEROS-titan very successful 1992 market launch of HEROS product range 2015 new generation of helmets HEROS-titan The only helmet worldwide, which is at home in three worlds of standards - Certifications according to EN / NFPA / AS-NZS Development, expertise, tools at Rosenbauer Production volume doubled since 2012: 37,800 pc. / 2017: 76,000 pc., the trend is rising Slide 9
Boosting E-Technology initiative CFT - A concept study of the fire truck of the future Low emissions noise and pollutants thanks to alternative drive concept Multi-functional basic concept allows universal applications Ergonomically optimized expansion optimized through new kind of fire truck architecture Positive feedback from customers confirms chosen path New company Rosenbauer E-Technology Development GmbH (RED) for the development of an e-kit for fire trucks, founded based on the CFT concept Slide 10
Financial data
Revenues and EBIT (in million) 900 800 Revenues EBIT 737,9 813,8 865,4 870,8 847,6 90 80 700 600 500 400 500,3 39,9 541,8 595,7 49,7 541,6 41,6 645,1 38,6 42,3 48,4 50,6 47,0 70 60 50 40 300 29,4 30 200 21,1 20 100 10 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 0 Financial 8.0% data 5.4% 8,3% 7.7% 6.0% 5.7% EBIT margin 5.9% 5.8% 5.4% 2.5% Slide 12
Breakdown of consolidated revenues 2017 Revenues 2017 (2016) Customer Service 6% (5%) Equipment 9% (9%) Other 3% (4%) SFP 3% (4%) Arabic countries 12% (16%) Other countries 6% (5%) Europe 42% (41%) Vehicles Asia Oceania 79% (80%) 16% (14%) NAFTA 24% (24%) Slide 13
Financial figures (in million) million 2016 2017 Revenues 870.8 847.6-2.7% EBIT 47.0 21.1-55.1% EBIT margin 5.4% 2.5% - EBT 44.0 21.1-52.1% Net profit for the period 34.6 18.5-46.5% Cash flow from operating activities 83.4 28.4-65.9% Slide 14
Segment reporting by area CEEU Revenues 2017 (2016) NOMA APAC 21% (20%) SFP 3% (2%) CEEU 32% (33%) APAC MENA NISA NOMA 25% (24 %) MENA 9% (12 %) NISA 10% (9%) Internationalization continues to advance Regionally adapted market strategies Slide 15
Revenues and EBIT quarterly (in million) 300 268,0 30 250 200 191,3 225,6 152.7 214.5 23,0 194.9 251.8 219,5 19,6 181,9 211,7 210,9 243,1 25 20 150 15,9 15,5 15 12,1 100 8,5 10 50 6,0 5,7 3,4 5,8 6,3 5 0-3.1 0 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Revenues EBIT Slide 16
Accounting ratios in / % million Dec. 31, 2015 Dec. 31, 2016 Dec. 31, 2017 Total assets 611.8 650.6 625.4 Equity ratio 37.0% 37.2% 38.2% Capital employed (ø) 437.1 470.2 472.6 ROCE 11.6% 10.0% 4.5% ROE 22.7% 18.8% 8.8% Net debt 191.3 171.3 184.1 Gearing ratio 84.4% 70.8% 77.0% Slide 17
Investments and depreciation and amortization (in million) 51,2 25,4 10,2 22,1 24,3 12,6 13,9 14,8 21,5 16,5 2013 2014 2015 2016 2017 Investments Depreciation and amortization The focus of investment activity in 2017 was the reorganization of Leonding plant I, expansion of Rosenbauer Espanola, robotization of ladder production in Karlsruhe (D), new sales and service center in Meltham (GB) and Viersen (D) Slide 18
Trade working capital and financing (in million) TRADE WORKING CAPITAL FINANCING 1000 750 500 250 865,4 870,8 847,6 345,6 340,7 343,8 225% 200% 175% 150% 125% 100% 75% 50% 280 240 200 160 120 80 226,6 191,3 84.4% 242 242.0 184,1 171,3 77.0% 70.8% 39,9% 39,1% 40,5% 25% 40 0 2015 2016 2017 Trade Working Capital Annual Revenue Trade Working Capital / Annual Revenue 0% 0 2015 2016 2017 Net Debt Equity Gearing Ratio High working capital for reasons specific to industry Long throughput times of 8 to 12 months Low prepayments averaging 5% to 10% Average payment term of 57 days Slide 19
Number of employees (reporting date) 31.12.2017 1,350 830 853 372 3,405 31.12.2016 1,401 793 842 339 3,375 31.12.2015 1,403 716 675 292 3,086 31.12.2014 1,308 708 650 275 2,941 31.12.2013 1,209 668 578 196 2,651 Austria USA Germany RoW In addition, Rosenbauer employs approximately 200 temporary employees. Headcount year-on-year stable, German and American manufacturing facilities increase. Slide 20
Rosenbauer shares 2017 201 6 2017 Investor FR 5% Highest price 67.6 59.8 Lowest price 45.8 51.1 Free float 44% BVG * 51% Closing price 54.2 52.6 Market capitalization million 368.6 357.7 * Rosenbauer Beteiligungsverwaltung GmbH Dividend 1.2 1.0 1) Dividend yield 2.2% 1.9% Earnings per share 3.5 1.1 100,0 90,0 80,0 70,0 60,0 50,0 40,0 1) Jan Feb Mrz Apr Mai Jun Jul Aug Sep Okt Nov Dez Proposal to the Annual General Meeting Rosenbauer EURO ATXPrime index. Slide 21
Outlook
Order intake/backlog (in million) Order intake Order backlog as of December 31 2017 970.0 2017 882.6 2016 816.8 2016 739.7 2015 905.9 2015 797.5 2014 845.9 2014 693.0 2013 760.6 2013 590.1 Slide 23
Outlook Global firefighting market follows amicable economic sentiment, successful industry development prolonged Political risks remain, uncertainty continues regarding the currency landscape Strategy for further internationalization and increase in efficiency will continue to be implemented consistently More proximity to customers and improved exchange of information More efficient structures and faster processes Greater common parts across individual product families Expansion of technology leadership focusing on the development of a vehicle with an alternative drive mechanism Management forecasts higher revenues and significantly better earnings for 2018 EBIT margin targeted at a familiar level Record incoming orders in 2017 generates solid starting position Slide 24
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