Zumtobel Group FY 2012/13 results
June 26, 2013
June 2013
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Global references 2012/13
Vorarlberg Museum, Austria
Airport Paris-Orly, France
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Apple Campus, Shanghai, CN Kunstkammer Vienna, AT Festival Hall Erl, Tirol, AT Peggy Guggenheim Museum, Venedig, IT Hospital Al-Leeth, Saudi-Arabia Fair Basel, CH Credit Suisse, Zurich, CH Vorarlberg Museum, Bregenz, AT Temporary Vision Centre Abu Dhabi, AED DIY Chain Jumbo, Bern, CH Zuellig Office Building, Manila, Philippines Issey Miyake Boutique, Paris, FR LifeCycle Tower, Dornbirn, AT Office Building La Serenissima, Milan, IT Treatment and Rehabilitation Center, Qatar Airport Paris-Orly, FR Shopping Center Rijeka, KR NatWest Tower, London, UK European Central Bank, Frankfurt, DE Light Sculpture RUN, Summer Olympics London, UK WU Campus Vienna, AT
2
Global references 2012/13
Hjorring Library, Denmark
National Exhibition Centre, Abu Dhabi, AED Fedex Headquarters, Mumbai, India Tsinghua University, Beijing, CN Football Stadium Spennymoor, UK „LEVEL Schuh-District“, Dubai Exterior Facade Music Hall, Niort, FR IGA Greenslopes Super Market, AUS Sport Park Arendal, Norwegen Netanya Stadium, Israel Suvarna Vidhan Soudha, Karnataka, India Aviastar (Aircraft Assembly Hall), Uljanowsk, RUS Adler Ring / Street Lighting for Sotschi, RUS Hedberg Car Dealer, Malmö, SW Liquid Waste Processing System, Doha, Qatar DGI Huset Herning Leisure Center, Denmark Abu Dhabi Future School Program, Abu Dhabi, AED Rotana Hotel, Ammann, Jordan Nokia Siemens, High-rise Warehouse, Chennai, India Morrison Super Markets, UK City Hall Toulouse, FR
National Exhibition Centre, AED
June 2013
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Innovations & Products 2012/13
Highlights Share of revenues recorded with new products rose to 46,0% vs 36,0% PY Revenue growth with converters: 129,2% vs PY
New LED-converter-series
TALEXXmodule STARK CLE
TALEXXmodule STARK SLE
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New plaform of electronic ballasts
OLEDmodule LUREON REP
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Good progress in many areas in spite of difficult market environment Highlights FY 2012/13 Improved profitability of Zumtobel brand in spite of higher development expenses and strong revenue growth with still lower margin LED products Good progress in development of globally marketable product families and the related supply chain in Zumtobel brand Increased gross profit margins with LED products in both segments Swift execution of necessary adjustments at Tridonic – significantly lowered break even point Good progress in development of competitive LED portfolio at Tridonic Significant improvement in working capital management
Due to an increasingly challenging macro-economic environment, Zumtobel Group’s revenue development shows a steady year-on-year decline in momentum Fall-back of Thorn profitability – recorded a loss for the financial year 2012/13 Business development in Asia and Australia/ New Zealand remained disappointing
June 2013
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Despite an increasingly challenging market environment, slight improvement of adjusted EBIT Financials FY 2012/13 at a glance Demand hit by increasingly challenging operating environment - Group revenues fell by 2.9% to EUR
1,243.6 million Further dynamic growth in revenues with LED-products (plus 49.8%), LED share reaching 22.1% of
group revenues (PY: 14.3%) - gross margin for LED products continues to improve Implementation of personnel and structural adjustment measures show positive results – negative
special effects of minus EUR 14.0 million Adj. EBIT of EUR 35.7 million slightly above PY (EUR 35.0 million) due to improved profitability in both
segments in H2 Technology shift is still connected with substantial structural and financial challenges: R&D
expenditures in P&L rose to a new high of EUR 69.1 million, or 5.6% of revenues for the reporting year Positive development of working capital continued Significantly improved free cashflow vs FY 2011/12
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LED share of group revenues increases to 22.1% (FY 2011/12: 14.3%) Zumtobel Group – LED revenue development FY 2012/13 LED revenues grow by 49.8% to EUR 274.5 million on group level
Zumtobel Group LED revenue development in EUR million1) 71.7 59.6
(+57.2%)
69.7 (+47.6%)
73.4 (+36.5%)
Lighting Segment increases sales with LED products by 55.8% to EUR 212.8 million – Zumtobel brand LED penetration: ~31%
(+63.1%)
– Thorn brand LED penetration: ~13% – Improved profitability with LED products due to optimised product design, partially increased selling prices and better purchasing conditions Q1
Q2
Q3 FY 2012/13
Q4
LED sales in Components Segment rise by 30.7% to EUR 71.5 million (revenues with LED converters grow by 129.2%)
1) Change to previous year in % in brackets
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Operating profit clearly above prior year level Lighting Segment – Revenue and EBIT development
Lighting Segment Revenues in EUR million1)
243.0 (+2.9%)
Adjusted EBIT2) 10%
30,0
254.1
26,0
(+0.5%)
214.9 (-3.9%)
223.6 (-5.6%)
7.1%
22,0 18,0
5.2%
14,0
12.7
8%
18.1
6% 4%
10,0
1.7%
6,0 2,0
3.7
-2,0
-0.6%
-6,0
Q1
Q2
Q3 FY 2012/13
Q4
Adj. EBIT FY 2011/12:
0% -2%
Q1
Q2
Q3
Q4
10.8 4.6%
19.3 7.6%
-4.1 -1.8%
0.1 0.0%
FY 2012/13 Adjusted EBIT in EUR million
Revenues FY 2011/12 EUR 949.2 million Revenues FY 2012/13 EUR 935.7 million (minus 1.4%)
-1.4
2%
Adjusted EBIT as a % of revenues
Adjusted EBIT FY 2011/12 EUR 26.0 million (margin of 2.7%) Adjusted EBIT FY 2012/13 EUR 33.2 million (margin of 3.5%)
1) Change to previous year in % in brackets 2) Reported EBIT adjusted for special effects June 2013
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Components segment successfully lowered the break-even level Components Segment – Revenue and EBIT development
Components Segment Revenues in EUR million1)
Adjusted EBIT2) 10,0
98.1 (-11.1%)
10%
100.6 (-7.0%)
89.4 (-3.3%)
6.8%
89.6 (-7.8%)
6,0
8% 6%
6.1
4.1%
4%
2.3% 2,0
4.1
1.4%
2.3
2%
1.2
0%
-2,0
Q1
Q2
Q3 FY 2012/13
Q4
-2%
Adj. EBIT FY 2011/12:
Q1
Q2
Q3
Q4
10.7 9.7%
8.7 8.1%
-3.2 -3.4%
3.3 3.4%
FY 2012/13 Adjusted EBIT in EUR million
Revenues FY 2011/12 EUR 408.1 million Revenues FY 2012/13 EUR 377.7 million (minus 7.4%)
Adjusted EBIT as a % of revenues
Adjusted EBIT FY 2011/12 EUR 19.6 million (margin of 4.8%) Adjusted EBIT FY 2012/13 EUR 13.7 million (margin of 3.6%)
1) Change to previous year in % in brackets 2) Reported EBIT adjusted for special effects June 2013
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Encouraging progress with LED-modules and LED-converters Components Segment
LED-modules
LED-converters
Revenues in EUR million
Revenues in EUR million 7.2
5.8 (+50.4%)
6,0
5,0
5.1 (+46.9%)
4.5
5.3
6,0
(+41.3%)
5.5
(+154.2%)
(+113.2%)
Q2
Q3
(+137.4%)
5,0
(+10.6%)
4,0
4,0
3,0
3,0
2,0
2,0
1,0
1,0
0,0
0,0
Q1
5.5
Q2
Q3
Q1
Q4
FY 2012/13 Revenues FY 2011/12 EUR 15.2 million Revenues FY 2012/13 EUR 20.7 million (plus 36.6% / ~5.5% of turnover)
3.6 (+106.9%)
Q4
FY 2012/13 Revenues FY 2011/12 EUR 9.5 million Revenues FY 2012/13 EUR 21.7 million (plus 129.2% / ~6% of turnover)
Market share in Europe around 5% in both modules and converters New generation of LED converters to be launched in FY 2013/14 Profitability for LED-components continuously improved Make-or-buy decision to focus resources
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Continuously high market share with conventional ballasts Components Segment
Conventional ballasts Conventional ballast market vs Tridonic market share 80 .00 0
30 %
-31.2%
75.00 0 25% 70 .00 0 20 % 6 5.00 0
60 .00 0
15%
55.00 0 10% 50 .00 0 5% 4 5.00 0
40 .00 0
0% 20 0 9 1.HY
20 0 9 2 .HY
Total Market Size Europe (1000pcs)
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20 10 1.HY
2 010 2 .HY
20 11 1.HY
20 11 2.HY
2 012 1.HY
2 012 2.HY
Market Share Tridonic (in %)
11
Profitability improved in both segments in H2 due to timely implementation of cost adjustment measures Zumtobel Group – Revenue and EBIT development Zumtobel Group Revenues in EUR million1)
Adjusted EBIT2) 40,0
323.4 (-0.9%)
10%
36,0
334.8
32,0
(-1.7%)
288.4 (-3.0%)
297.1
28,0
(-6.0%)
24,0
8%
5.9% 6%
20,0
3.9%
16,0 12,0
19.7
4%
2.3%
12.6
8,0
2%
4,0
6.7
0,0 -4,0
-1.2%
-8,0
Q1
Q2
Q3 FY 2012/13
Q4
Adj. EBIT FY 2011/12:
-2%
Q1
Q2
Q3
Q4
18.2 5.6%
25.4 7.5%
-9.6 -3.2%
0.9 0.3%
FY 2012/13 Adjusted EBIT in EUR million
Revenues FY 2011/12 EUR 1280.3 million Revenues FY 2012/13 EUR 1243.6 million (minus 2.9%)
-3.3
0%
Adjusted EBIT as a % of revenues
Adjusted EBIT FY 2011/12 EUR 35.0 million (margin of 2.7%) Adjusted EBIT FY 2012/13 EUR 35.7 million (margin of 2.9%)
1) Change to previous year in % in brackets 2) Reported EBIT adjusted for special effects June 2013
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European share at 78.6% of total revenues Zumtobel Group – Regional revenue distribution Q4 2012/13
FY 2012/13
Revenues in Change Revenues in EUR million in % EUR million D/A/CH
78.2
-0.9
340.5
Regional revenue distribution
Change in % Others 0.9%
-0.6
America 3.2% Eastern Europe
16.4
-7.5
64.7
0.1
Northern Europe
24.2
-12.1
103.4
-4.2
Western Europe
89.7
-7.6
372.4
-1.6
Southern Europe
25.8
9.9
96.7
-4.8
234.3
-4.3
977.7
-1.7
Asia & Middle East
26.0
-11.6
109.4
-4.7
Australia & New Zealand
24.5
-16.0
105.9
-14.8
America
9.1
-5.3
39.4
10.9
Others
3.2
2.8
11.3
5.2
297.1
-6.0
1,243.6
-2.9
Europe
Australia & New Zealand D/A/CH 8.5%
Asia & Middle East
27.4%
8.8% Southern Europe
7.8% 5.2%
29.9%
Eastern Europe
8.3% Northern Europe
Western Europe
Total
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Europe: 78.6% (PY: 77.8%)
13
Consequent restructuring measures to meet challenges of technology shift Zumtobel Group – Adjusted EBIT FY 2012/13
Adjusted EBIT in EUR million Reported EBIT Thereof special effects Adjusted EBIT
FY 2012/13
FY 2011/12
21.7
35.0
-14.0
0.0
35.7
35.0
Zumtobel
Thorn
Restructuring of Zumtobel sales organization in Germany and in Denmark
Efficiency programmes at the Thorn production plants in Landskrona/ Sweden, Sydney/ Australia, Auckland/ New Zealand and Spennymoor/ UK
Concentration of production activities of Zumtobel USA to Highland, close down of plant in Fairlawn/ US
Restructuring of Thorn sales organization Office consolidation in Thorn UK and France
June 2013
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Tridonic Restructuring production site in Ennenda/ Switzerland Downsizing of magnetic production in Australia and Austria – to be continued Disposal of Ledon Lamp Restructuring of indirect areas worldwide due to technology shift
14
Efficiency measures in selling activities and increased gross profit in lighting segment lead to a slightly improved adjusted EBIT Zumtobel Group – adj. EBIT-Bridge FY 2011/12 vs. FY 2012/13 Components Segment: EUR 30.4 m decrease in revenues and Gross Profit margin 130 bps below FY PY: - Capacity underutilization - Higher share of not yet profitable LED components - High price pressure
Lighting Segment: Improves gross profit margin mainly due to decrease in material expenses2)
+3.9 35.0
+2.5
+9.7
35.7
-1.7 -10.2 -3.6
Efficiency measures in sales activities – decrease of selling expenses
Increase in development costs as a result of increasing complexity, lack of standardization in LED, faster innovation cycles and growing investments in C&S2)
Adj. EBIT FY 2011/12
Lighting Segment Components ∆ Gross Profit1) Segment ∆ Gross Profit1)
Development costs
Selling expenses
Admin expenses
Other/ consolidation
Adj. EBIT FY 2012/13
[in EUR m] 1) Gross profit on segment level excluding development costs 2) In order to further improve the explanatory capability of this financial report, costs totalling EUR 7.2 million for customized product development (CPD) in 2012/13 were reclassified under the cost of goods sold and, based on their source, allocated to the development area (No effect on EBIT). June 2013
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Targeted investments to further expand the outstanding technology position Zumtobel Group – Development of R&D expenses
R&D in P&L (in EUR million) Effect of 7.2 m due to reclassification of CPD1)
R&D expenditures more than doubled in the past 5 years
Increase by 17.7% to EUR 69.1 million in 2012/13 (total R&D spending incl. capitalised R&D amount to EUR 85.2 million for FY 2012/13)
Focus on energy efficiency, LED, lighting quality and controls & systems
Higher R&D spending due to increasing product and system complexity, lack of standardization in LED, faster innovation cycles and growing investments in C&S
7.2 million of increased R&D expenditures due to a reclassification of CPD*
Medium-term forecasts call for R&D expenditures in P&L at approx. 5 to 5.5% (unchanged)
69.1 58.7 48.6 34.5 28.4
20 06 /0 7 20 07 /0 8 20 08 /0 9 20 09 /1 0 20 10 /1 1 20 11 /1 2 20 12 /1 3
25.5
36.8
*In order to further improve the explanatory capability of the financial year 2012/13 report, costs totalling EUR 7.2 million for customized product development (CPD) in 2012/13 were reclassified under the cost of goods sold and, based on their source, allocated to the development area.
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Financial results improved Zumtobel Group – Income Statement Income statement in EUR million Revenues
Q4 2012/13 297.1
Change in % 316.1 -6.0
Q4 2011/12
1,243.6
1.280.3
Change in % -2.9
FY 2012/13
FY 2011/12*
-208.2
-222.1
6.3
-855.0
-882.2
-3.1
Gross profit
88.9
94.0
-5.4
388.6
398.2
-2.4
as a % of revenues SG&A expenses adjust for special effects Adjusted EBIT
29.9
29.7
31.2
31.1
-82.1
-93.1
11.7
-352.9
-363.2
-2.8
6.7
0.9
>100
35.7
35.0
2.0
2.3
0.3
2.9
2.7
Special effects
-7.0
0.0
-14.0
0.0
> 100
EBIT
-0.2
0.9
21.7
35.0
-38.1
-0.1
0.3
1.7
2.7
Financial results
-4.5
-5.0
10.0
-13.8
-14.8
7.1
Profit before tax
-4.7
-4.1
-16.5
7.9
20.2
-60.9
2.2
0.5
>100
-1.6
-4.2
-60.8
0.1
-0.1
>100
-0.2
-0.8
78.7
-2.4
-3.7
33.2
6.1
15.2
-60.1
-0.08
-0.09
10.1
0.14
0.35
-60.9
Cost of goods sold
as a % of revenues
as a % of revenues
Income taxes Net profit/loss from discontinued operations Net profit for the period Earnings per share ( in EUR)
10%
20% 30.04.2012
31.07.2012
31.10.2012
31.01.2013
30.04.2013
FMR LLC (Fidelity) > 4%
Zumtobel AG ATX
18.2% decrease in share price in 2011/12 (PY -57%) Zumtobel family holds 35.4% of the share capital bound by a syndicate agreement (expires in Dec 2014) Dividend recommendation for 2012/13 financial year: EUR 0.07 per share (payout ratio of 50%)
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Five-Year Overview
in EUR million 2012/13
2011/12*
2010/11
2009/10
2008/09
1,243.6
1,280.3
1,228.2
1,114.6
1,169.0
35.7
35.0
78.4
51.4
78.9
2.9
2.7
6.4
4.6
6.7
6.1
15.2
51.3
-69.8
13.3
0.5
1.2
4.2
-6.3
1.1
Total assets
994.8
1,036.3
1,020.5
972.8
1,010.3
Equity
357.4
370.6
378.7
340.4
412.4
35.9
35.8
37.1
35.0
40.8
113.2
141.4
141.3
131.4
163.5
Cash flow from operating results
79.8
88.1
123.2
80.4
107.3
Investments
59.5
57.2
57.3
48.7
64.7
4.8
4.5
4.7
4.4
5.5
7,162
7,456
7,814
7,329
7,165
Revenues Adjusted EBIT as a% of revenues Net profit/loss for the period as a % of revenues
Equity ratio in % Net debt
as a % of revenues Headcount incl. contract worker (full-time equivalent)
*The preparation of the financial statements for the 2012 / 13 financial year included the premature application of the revised version of IAS 19 ‘Employee Benefits’ which led to a restatement of the prior year data.
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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
[email protected] www.zumtobelgroup.com
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