Neways Electronics & BuS Group€¦ · 07/01/2014 · 1.7.2014 7 68,4 159,3 227,7 0 50 100 150 200...

Neways Electronics International NV

Neways Electronics & BuS Group

11.7.2014


STRATEGIC RATIONAL

21.7.2014


Neways‘ White Spot – Germany

NL

DE

German EMS Market

• 3rd biggest EMS market globally

• Market volume € 3.5bn

• Substantial untapped market

potential

31.7.2014


BuS Group – Significant Footprint in Europe‘s

Largest Single EMS Market

11b

1a

1 – Riesa (HQ; R&D, production)

1a – Erfurt (R&D)

1b – Decin (production)

Key Facts

Ownership• Dr. Maiwald & family (55% & 30%)• Kiel family (15%)• 3% MD BuS Elektronik

Net Sales 2014B € 118m

EBIT 2014B € 7.3m (6.1%)

Employees 900 (17% engineers)

Headquarter Riesa

Add. Sites Erfurt (DE), Decin (SK)

41.7.2014


Complementary Product Portfolio & Regional Presence

RegionProcesses

Neways NL BuS DE Neways DE BuS CZ Neways SK Neways Asia

EMS Riesa Decin

Micro-Electronics

Engineering/R&D Erfurt

Cables/Harnessing

Module-/ System-assembly

Riesa

Sales

RiesaMunich

Hamburg Erfurt

Business Development

Riesa Munich

Hamburg

51.7.2014


Sales 2013 (Segment sales contribution of Neways & BuS 2013) Defence,Telecom,AlternativeEnergy,BuildingTechnology,etc.

none

none none

Other Industries

Industry Segments & Selected Customers

79

21

82

18

10

0

032

68

0

10

0

71

29

61.7.2014


Synergies: Procurement & Supplier Portfolio

1.7.2014 7

68,4

159,3

227,7

0

50

100

150

200

250

BuS2013 A

Neways2013 A

CombinedOperations

Raw

mat

eria

ls&

ser

vice

sin

€m

Significant increase in purchasing volume

and increase in power vis-à-vis suppliers

CZ

NL

DE

CN

SG

Centralized procurement through Neways Asia

Combining supplier portfolios

• Downsizing of supplier portfolio (reduction of

redundancies)

• Increase of purchasing power

Global Sourcing

• Opening of Neways‘ sourcing channels in Asia

• Savings potential of up to 30%, e.g. for

passive components

Procurement

Synergies


Build-up of a Dominating European EMS Group

German

EMS Market

1234567891011121314151617181920

Top 20 EMS Players with European Headquarters(by Turnover)

Combined –Neways & BuS

Sales: € 383m

Sales 2014B:€ 118m

Sales 2013:€ 265m

81.7.2014


BUS FINANCIALS & CURRENT

TRADING

91.7.2014


BuS Group – Profit & Loss

117,9 108,1 106,7 118,2

8,4%

5,6%3,9%

6,1%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

8,0%

9,0%

0

50

100

150

200

2011 2012 2013 2014

EBIT

Mar

gin

in %

Net

Rev

enu

esin

€m

Net Revenues EBIT

in €m

Revenues 117.9 108.1 106.7 118.2

Gross Earnings 43.6 36.9% 37.8 35.0% 39.3 36.9% 45.1 38.1%

EBIT 9.9 8.4% 6.0 5.6% 4.2 3.9% 7.3 6.1%

2011 2013 20142012

101.7.2014


BuS Group – Balance Sheet Assets

111.7.2014

in €m 2011 2012 2013

Intangible Assets 3.2 3.1 6.1

PPE 25.9 25.0 22.5

Financial Assets 0.0 0.0 0.0

Inventory 34.0 31.1 33.0

Trade Receivables 14.7 11.7 11.9

Other Receivables 0.4 1.9 0.6

Cash 0.9 1.0 1.9

Accruals 0.0 0.1 0.1

Total Assets 79.2 73.9 76.1


in €m 2011 2012 2013

Equity 34.6 37.7 39.0

Minority Interest 0.1 0.1 0.1

Subsidies 4.4 4.4 3.8

Provisions 4.0 2.8 2.7

Long-term Debt 18.1 14.6 11.6

Other Debt 10.0 10.0 11.1

Trade Payables 7.9 4.3 7.8

Deferred Taxes 0.0 0.0 0.0

Total Equity & Debt 79.2 73.9 76.1

BuS Group – Balance Sheet Equity & Liabilities

121.7.2014


Current Trading as per 05/2014

117,9108,1 106,7

118,2

53,8

8,4%

5,6%3,9%

6,1%7,8%

0%

5%

10%

15%

20%

25%

0

20

40

60

80

100

120

140

EBIT

mar

gin

in %

Sale

sin

€m

Sales & EBIT Development

Sales EBIT

BuS Group BuS Elektronik

46% of BuS Group‘s

budgeted annual

sales realized after

first 5 months

46%

93,5

75,0

BuS Elektronik – Order Book

Book-2-Bill Ratio: 1.1

Current

Order Book

Due in

FY 2014

131.7.2014


TRANSACTION STRUCTURE

141.7.2014


Transfer Mechanism of BuS Group‘s SharesPurchase price payment in cash and shares in Neways Electronics International NV

PurchasePrice

Cash Shares

• To be paid at Closing

• Financed out of existing cash position

and additional financing lines

• To be delivered at Closing and stored at

ABN Amro Bank

• Tradable by sellers only after 18

months lock-up period

151.7.2014


BuS Holding GmbH

Transfer Mechanism of BuS Group‘s SharesTransfer of shares in BuS Holding GmbH to a Neways group company and purchase price

payment

Shareholders

NEWAYS

Capital increase, Sellers to

subscribe shares

Deposit of shares at ABN Amro Bank Amsterdam

until expiration of 18-months lock-up

Transfer of shares (20% of

purchase price) to sellers‘ share

deposit account

Transfer of cash (80% of

purchase price) to sellers‘ bank

account

at ClosingClosing

+18 months

at Closing

at Closing

100%

161.7.2014


Legal and Operational Integration of BuS Group

NEWAYS

Neways BV

Neways Deutschland GmbH

Neways Slovakia a.s.

Wuxi Neways Electronic Co Ltd

Neways Electronics Singapore Pte Ltd

Neways Neunkirchen GmbH

Neways Vertriebs-GmbH

BuSHolding GmbH

• BuS - Headquarters to remain in Riesa, DE

• Software+Systeme Erfurt to be operationally integrated into

Neways Technologies

171.7.2014


FINANCING

1.7.2014 18


Financing (in €m)

1.7.2014 19

in €m Neways

Cash Position Neways as per Closing Date p.m.

Use of Current Credit Facilities 30.0

Extension of Credit Facilities 20.0

Convertible Subordinated SH Loans 5.0

Total 55.0

• Purchase Price below Net Equity Value

• No Goodwill

• Some valuation changes of Balance Sheet based on

IFRS

• Payment: 20% shares & 80% cash


Convertible Subordinated SH Loans – Main Conditions

1.7.2014 20

in €m Neways

Conversion Rate per Share (in €) 8.5

Interest Rate 4.0%

Term (in years) 5

Conversion Right after Year 3


NEWAYS & BUS – MARKET SENTIMENT

211.7.2014


Neways Electronics International NV – Stock Price Development

0

1

2

3

4

5

6

7

8

9

10

0

2

4

6

8

10

12

14

Fire atNeways Kassel

Neways Kasselto be shut down

Annual Results2013

Newaysto acquireBuS Group

+21.6%

221.7.2014


NEXT STEPS

231.7.2014


Further Schedule & Milestones

Signing SPA

11.7.2014

Effective Date

30.6.2014

Purchase Price

Calculation

Closing target

29.8.2014

Financial Statement

(HY 2014)Buyer‘s audit 4-6 weeks

Half-Year Report 4-6 weeks

Purchase Price

Payment

Purchase Price Calculation

Purchase Price Payment

„Conditions Precedent“

SPA NegotiationsSPA Negotiations

Übermittlung SPA

20.6.2014

241.7.2014

Neways Electronics & BuS Group€¦ · 07/01/2014 · 1.7.2014 7 68,4 159,3 227,7 0 50 100 150 200...

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Transcript of Neways Electronics & BuS Group€¦ · 07/01/2014 · 1.7.2014 7 68,4 159,3 227,7 0 50 100 150 200...