Zumtobel Group Q1 2012/13 results September 5, 2012 1 September 2012 1
Solid results in a challenging operating environment Financial Highlights 1 st quarter 2012/13 Lighting Segment (Zumtobel / Thorn) benefits from the expansion of sales activities with a 2.9% growth in revenues Challenging market environment and weakness in LED-components portfolio hit Components Segment (-11.1%) but sequential stabilisation at low level compared to previous two quarters LED revenues with substantial growth of 63.0%, LED share reaching 18.4% of group revenues (Q1 PY: 11.2%) Group revenues with EUR 323.4 million slightly below prior year (-0.9%) Adj. EBIT of EUR 12.8 million below PY (EUR 18.2 million) due to capacity underutilisation in Components Segment and to LED technology shift (e.g. higher R&D, lower margin of LED-products) Higher profitability in Lighting Segment despite high growth investments and dynamic growth of lower margin LED-products Positive development of working capital continued 2 September 2012 2
LED share of group revenues increases to 18.4% (Q1 2011/12: 11.2%) Zumtobel Group LED revenue development Zumtobel Group LED revenue development in EUR million 36.6 +63.0% 45.6 47.2 53.8 59.6 LED revenues grow by 63.0% to EUR 59.6 million Lighting Segment increases sales with LED products by 70.5% to EUR 45.4 million Zumtobel brand LED penetration: ~26% Thorn brand LED penetration: ~8% Q1 Q2 Q3 Q4 Q1 FY 2011/12 FY 2012/13 LED sales in Components Segment rise by 36.1% to EUR 16.4 million 3 September 2012 3
High growth investments start to pay-off with increasing profitability Lighting Segment Revenue and EBIT development Lighting Segment (rolling five quarters) Revenues in EUR million Adjusted EBIT 1) 236.1 252.7 +2.9% 223.6 236.8 243.0 32 28 24 20 16 12 4.6% 10.8 19.3 7.6% 19.3 5.3% 12.9 8% 6% 4% 8 2% 4 0-4 -4.1-0.1% -4.1-0.3 0% -8-1.8% -2% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY 2011/12 FY 2012/13 FY 2011/12 FY 2012/13 Adjusted EBIT in EUR million Adjusted EBIT as a % of revenues Revenues FY 2011/12 EUR 949.2 million (plus 9.2%) Adjusted EBIT FY 2011/12 EUR 25.6 million (margin of 2.7%) 1) Reported EBIT adjusted for special effects (no special effects over the last 7 quarters) 4 September 2012 4
Sequential stabilisation of revenues cost cutting not yet fully effective Components Segment Revenue and EBIT development Components Segment (rolling five quarters) Revenues in EUR million Adjusted EBIT 1) -11.1% 20 20% 110.3 108.2 92.4 97.2 98.1 15 10 10.7 9.7% 8.7 8.1% 15% 10% 5 0 3.3 3.4% 2.3 2.3% 5% 0% -5-3.4% -3.2-5% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY 2011/12 FY 2012/13 FY 2011/12 FY 2012/13 Adjusted EBIT in EUR million Adjusted EBIT as a % of revenues Revenues FY 2011/12 EUR 408.1 million (minus 6.7%) Adjusted EBIT FY 2011/12 EUR 19.5 million (margin of 4.8%) 1) Reported EBIT adjusted for special effects (no special effects over the last 7 quarters) 5 September 2012 5
Group revenue growth and profitability burdened by Components Segment Zumtobel Group Revenue and EBIT development Zumtobel Group (rolling five quarters) Revenues in EUR million Adjusted EBIT 1) -0.9% 50 10% 340.5 326,3 316.1 323.4 297.4 40 30 20 10 0-10 5.6% 18.2 25.4 7.5% -9.6 0.5 0.2% 4.0% 12.8 8% 6% 4% 2% 0% -2% -20-3.2% -4% Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 FY 2011/12 FY 2012/13 FY 2011/12 FY 2012/13 Adjusted EBIT in EUR million Adjusted EBIT as a % of revenues Revenues FY 2011/12 EUR 1,280.3 million (plus 4.2%) Adjusted EBIT FY 2011/12 EUR 34.6 million (margin of 2.7%) 1) Reported EBIT adjusted for special effects (no special effects over the last 7 quarters) 6 September 2012 6
Northern Europe and America as the regional growth drivers Zumtobel Group Regional revenue distribution Regional revenue distribution Q1 2012/13 D/A/CH Eastern Europe Northern Europe Western Europe Revenues in EUR million 85.8 18.5 24.8 96.4 Change in % -1.6 4.6 11,6-0.2 Australia & New Zealand Asia America 3.4% 9.1% 9.0% Others 0.8% 26.5% D/A/CH Southern Europe Europe Asia Australia & New Zealand America 25.9 251.4 29.3 29.0 11.0-3.2 0.4-7.6-12.5 27.1 Southern Europe 8.0% 29.8% 5.7% Eastern Europe 7.7% Northern Europe Others Total 2.7 323.4 14.5-0.9 Western Europe Europe: 77.7% (PY: 76.8%) 7 September 2012 7
Capacity underutilization in Components Segment and LED technology shift constitute major burden on EBIT Zumtobel Group adj. EBIT-Bridge Q1 2011/12 vs. Q1 2012/13 Additional revenue of EUR 6.9 m on improved gross profit margin 1 (160 bps above Q1 PY) 6.6-7.1 Gross Profit margin 1 360 bps below Q1 PY: - Capacity unterutilization - Higher share of not yet profitable LED components - High price pressure Clear slowdown in expansion of sales activities 18.2-3.8-1.6-0.7 1.2 12.8 Increase in innovation costs as a result of parallel activities in the area of LED, light management systems and conventional lighting activities. [in EUR m] Adj. EBIT Q1 2011/12 Lighting Segment Components Gross Profit 1) Segment Gross Profit 1) Development costs Selling expenses Admin expenses Other/ consolidation Adj. EBIT Q1 2012/13 1) Gross profit on segment level excluding development costs 8 September 2012 8
Improved financial results and no special effects in Q1 2012/13 Zumtobel Group Income Statement Income statement in EUR million Q1 2012/13 Q1 2011/12 Change in % Revenues 323.4 326.3-0.9 Cost of goods sold -219.0-218.7 +0.1 Gross profit 104.4 107.6-3.0 as a % of revenues 32.3 33.0 SG&A expenses adjust for special effects -91.6-89.4 +2.5 Adjusted EBIT 12.8 18.2-29.9 as a % of revenues 4.0 5.6 Special effects 0.0 0.0 EBIT 12.8 18.2-29.9 as a % of revenues 4.0 5.6 Financial results -1.8-2.5 +28.0 Profit before tax Income taxes Net profit for the period Depreciation and amortisation Earnings per share ( in EUR) 11.0-1.9 9.0 13.9 0,21 15.7-2.0 13.7 12.7 0,31-30.2-5.0-33.9 +9.1-31.9 Q1 2012/13: Improved by EUR 0.7 million Lower interest expenses (minus EUR 0.3 million) and better other financial income (plus EUR 0.4 million) 9 September 2012 9
Positive development of working capital and free cash flow vs. Q1 2011/12 Zumtobel Group Cash Flow Statement Cash Flow statement Free cash flow development in EUR million Cash flow from operating results Q1 2012/13 26.6 Q1 2011/12 31.0 (cumulative figures in EUR million) Change in working capital -23.8-48.8 Change in other operating items -18.7-6.8 22.3 Taxes paid/received -1.5-3.1 Cash flow from operating activities -17.4-27.7 Proceeds from the sale of non-current assets 0.2 0.1 Capital expenditures on non-current assets -10.3-14.9 Capital expenditures on non-current and current financial assets Change in liquid funds from changes in the consolidation range Cash flow from investing activities -0.4 0.7-9.7 4.9 0.0-9.9-37.6-27.1-21.6-19.6 Free cash flow Cash flow from financing activities -27.1 20.0-37.6 17.0 Q1 H1 Q1-Q3 FY Effects of exchange rate changes on cash and cash equivalents 4.7 2.2 FY 2011/12 FY 2012/13 Change in cash and cash equivalents -2.4-18.5 10 September 2012 10
Working capital slightly above targeted range Zumtobel Group Key data Balance Sheet Working capital in % of rolling 12-month revenues 19.8% 22.4% 20.2% 19.9% 21.9% 19.0% 20.7% 18.6% 17.8% Target range: 18% - 20% Working Capital remains a priority for management As % of 12-month revenues, working capital improved to 20.2% as of 31 July 2012 (31 July 2011: 22.4% ) Inventory reduction (by EUR 35.7 m) was main driver for positive development (all above in Components Segment) Level of factoring unchanged (~ EUR 43 million) Q1 Q2 Q3 Q4 FY 2010/11 FY 2011/12 FY 2012/13 11 September 2012 11
Continued solid balance sheet structure and secured liquidity position Zumtobel Group Key data Balance Sheet Balance sheet data in EUR million Total assets 31 July 2012 1,069.4 30 April 2012 1,036.3 Liquidity position supported by Net debt Net debt/ebitda Equity 158.4 1,88 383.5 141.4 1,60 370.5 Consortium credit agreement with max. line of EUR 500 million, ending Oct. 2016 (31. July 2012 EUR 215 million drawn) Equity ratio in % Gearing in % 35.9 41,3 35.8 38.2 Unsecured line of credit totaling EUR 111.0 million as of 31 July 2012 Investments Working capital 10.3 258.6 57.2 228.3 Net debt significantly reduced vs Q1 2011/12 (EUR 205.2 million) As a % of rolling 12 months revenues 20.2 17.8 12 September 2012 12
Swift execution of necessary adjustments in Components Segment Components Segment Management team completed New CEO Alfred Felder (joins from OSRAM) starts on 1 November 2012 New COO Gavin Brydon (internal candidate) as of 1 June 2012 Full integration of LED activities into existing Tridonic organisation completed Majority of new generation of electronic ballasts with focus on cost-down launched Good progress in developing a competitive range of LED-converters and LED-modules for spots and downlights (expected launch before Christmas) Exit commercial refrigeration business (effective 1 November 2012) Inventory reduced by ~ EUR 25 million over the last 12 months Ongoing cost saving and capacity adjustment measures to improve earnings position 13 September 2012 13
Guidance unchanged despite a more difficult operating environment Zumtobel Group Outlook Zumtobel Group outlook for FY 2012/13 unchanged: Year-on-year improvement in revenues (2011/12: EUR 1,280.3 million) and the adjusted EBIT margin (2011/12: 2.7%) despite High uncertainty regarding economic outlook Low visibility for both segments Lighting Segment: we expect stable business activities for the coming months Components Segment: current trading indicates further stabilisation at subdued level; sequential improvement depends on success / ramp-up of new product launches (electronic ballasts and LED-components) Focus for FY 2012/13 is striking the right balance between 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 14 September 2012 14
Financial Calendar 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) Wed, Jun. 26, 2013 Annual Financial Results Fri, July 26, 2013 37 th Annual General Meeting Tues, July 30, 2013 Ex-Dividend Day Fri, Aug. 2, 2013 Dividend Payout Day Wed, Sep. 3, 2013 Report on the 1 st Quarter 2013/14 (May 2013 Jul. 2014) 15 September 2012 15
Passion for Light Thank you for your attention! 16 September 2012 16
Five-Year Overview in EUR million 2011/12 2010/11 2009/10 2008/09 2007/08 Revenues 1,280.3 1,228.2 1,114.6 1,169.0 1,282.3 Adjusted EBIT 34.6 78.4 51.4 78.9 123.0 as a% of revenues 2.7 6.4 4.6 6.7 9.6 Net profit/loss for the period 16.0 51.3-69.8 13.3 93.5 as a % of revenues 1.2 4.2-6.3 1.1 7.3 Total assets 1,036.3 1,020.5 972.8 1,010.3 1,082.4 Equity 370.5 378.7 340.4 412.4 490.7 Equity ratio in % 35.8 37.1 35.0 40.8 45.3 Net debt 141.4 141.3 131.4 163.5 129.0 Cash flow from operating results 87.7 123.2 80.4 107.3 166.0 Investments 57.2 57.3 48.7 64.7 66.0 as a % of revenues 4.5 4.7 4.4 5.5 5.1 Headcount incl. contract worker (full-time equivalent) 7,456 7,814 7,329 7,165 7,908 17 September 2012 17
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) 509-1510 investorrelations@zumtobel.com www.zumtobelgroup.com 18 September 2012 18