ENG
27.03.2012
Investor Presentation
Milan
SAFE HARBOR STATEMENTSAFE HARBOR STATEMENT
Certain statements in this slide show, including those addressing the Company’s beliefs, plans,objectives, estimates or expectations of possible future results or events, are forward‐lookingobjectives, estimates or expectations of possible future results or events, are forward lookingstatements.They are based on the assumptions, beliefs and expectations of our management team as of the datethis slide show was prepared. Forward‐looking statements involve known or unknown risks, including
l i d b i di i d di i i h i d F d l kigeneral economic and business conditions, and conditions in the industry we operate. Forward‐lookingstatements may also be affected if our assumptions turn out to be inaccurate.Consequently, no forward‐looking statement can be guaranteed and actual future results, performance,or achievements may vary materially from those expressed or implied by such forward‐lookingy y y f p p y f gstatements.For additional information concerning other factors that may affect the Company’s current and futurebusiness, results of operations and financial condition, we suggest you review the Company’s filings withB It li Th C d t k bli ti t d t th f d l ki t t t tBorsa Italiana. The Company undertakes no obligation to update the forward‐looking statements toreflect events or circumstances that may arise after the date hereof.
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CONTENTSCONTENTS
Business OverviewBusiness Overview
Financial Results
Future Strategy
Stock Data and Shareholding Structure
& dQ&A and Contact
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Business OverviewBusiness Overview
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GEFRAN SUPPLIES … automation components and systems to manufacturers of
BUSINESS OVERVIEW
industrial machinery on a global basis. It operates 100% in the capital goods, B2B segment.
GEFRAN Industrial machinemanufacturers
Cons/Ind goodsmanufacturers
End‐users
Inverters
Motion regulation of CC and AC motors
nsors
Measurement of process i bl
Sen
on nts
variables
Autom
atio
compo
nen
Hardware & Software for indication and regulation of process variables
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THREE PRODUCT FAMILIES
BUSINESS OVERVIEW
Inverters SensorsAutomation Product
Inverters SensorsComponents
Inverter, Servo drive, DC Converter
Pressure, Position,
Family
Product Industrial PC, PLC, Remote I/O, HMI Controllers and IndicatorsDC Converter,
photovoltaic inverter.Temperature, Force.Types
Industries
HMI, Controllers and Indicators, SSR, Software.
Metal, plastics, wood, glass, packaging …
Served Mobile hydraulic, solar, test benches, textile …
HVAC, elevators, escalators, photovoltaic… Heat treatment…
Competitive Position
Technology leader thanks to design and production of key
elements.
Sh i
Global leader in elevators and escalator solutions.
Italian leader in automation solution for plastic OEMs. High
level of customization.
Share in Turnover 26.1%53.5% 23.4%
% turnover per Italy37%Eu 13%
Italy 26%Eu 34%
Itali 47%Eu 32%
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geographicalarea
Eu 13%America 6%Asia 42%
Eu 34%America 19% Asia 21%
Eu 32% America 11%Asia 10%
Drives … regulate the motion of CC and AC motors.
BUSINESS OVERVIEW
Having generated 54% ofHaving generated 54% of2011 revenues (€75 mn), inverter is the largestproduct family for Gefran. Inverter Lift Servo Digital DC AC inverters PV Inverter
Gefran inverter have 3 major markets:
Industrial applications are where Gefran products are utilized by industrial business partners to produce machines that work on metals, plastics, paper etc Within the course of 2011 Gefran
Competitive Landscape
Global market for inverter is estimatedb b b * d h
1INVERTERS
L R k ll A t tipaper…etc. Within the course of 2011, Gefran developed specific products to be used also in water treatment and HVAC industries.
Gefran products for the elevators and escalators segment are continuously developed in line with
to be as big as €1.6 bn*, and the top 3 players, namely Rockwell, Siemens and ABB, together account for an estimated30%* of the market. Gefran, with a market share of less than 1% is among 2
Lanrgemultinationalcompanies, witha complete and broad productmix
Rockwell AutomationSiemensABB
Schneider Electric
Omronsegment are continuously developed in line with technological changes and safety solutions.
Gefran PV inverters that are so far utilized in the local/Italian photovoltaic industry will be marketed to new markets such as South Africa
gthe niche and focalized players.
3In the elevators and escalator solutions segment, Gefran is a global leader.
mix Omron
Small – medium scale and focalized
YaskawaLenzeBaumullerVacon
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marketed to new markets such as South Africa, USA and India as well as other European and Middle Eastern countries.
* Gefran estimates
focalizedcompanies
VaconKEBEmotronInvertek
Sensors … are devices for the measurement of process variables like pressure,
BUSINESS OVERVIEW
position, temperature and force. Gefran sensors are used in a variety of industries like wood, plastic, mobile hydraulic, metal, solar, test benches and textile.
Linear position sensor
Pressure transducer
Melt pressure sensor
Temperature sensors
Loadcells
Competitive Landscape
sensortransducer sensor sensors
Global sensors business is composed of only small sized niche players just like Gefran.
Having generated 26% of 2011 revenues (€36 mn), Sensors is the second largest product family for
Gefran
SENSORS
Small – medium l d
WikaKellerHid k
Thanks to in‐house design and production of key elements, Gefran is a technology leader in this segment
Gefran. scale and focalizedcompanies
HidakMTSNovotecnikBalluffSfernice
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technology leader in this segment.
Automation components … are hardwares and softwares for indication and
BUSINESS OVERVIEW
regulation of process variables. Gefran offers its clients the ability of combining HW and SW devices, developing application technologies, and a high level of customization.
Industrial PC Operating panels Software PLC Remote I/O Indicators , Controllers
COMPONENTSL R k ll A t ti
Competitive Landscape
Similar to the Drives, Automation Lanrgemultinationalcompanies, witha complete and broad productmix
Rockwell AutomationSiemensABBSchneider Electric
Omron
,Components business employs large multinational players who dominate the segment. In addition, there are small niche players with a size similar to Gefran’s
Having generated 23% of 2011 revenues (€33 mn), Automation components is the third largest
product family for Gefran mix Omron
Small – medium scale and focalized
BeckoffKebaSigmatekEsa
Gefran s.
Gefran’s competitive advantage is its high level of customization as well as full‐service coverage to clients.
product family for Gefran.
focalizedcompanies
EsaAsemAEGJumo
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AN INTEGRATED BUSINESS PARTNER
BUSINESS OVERVIEW
873 employees worldwide (including administrative staff)
415
200
R&D Production Marketing Sales/Distribution Service
90 24
Gefran has 50 years of know‐how in industrial automation
It develops its proprietary technology for the key steps of design and manufacturing
It has technical and technological cooperations with global industry leaders
And it has a uniquely complete product line for industry control
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And it has a uniquely complete product line for industry control.
R&D ‐ TECHNOLOGY DEVELOPMENT
BUSINESS OVERVIEW
A h h l i l l i f i d i i f f i lAs the technological evolution of its products is an important factor for potential future growth, Gefran typically invests c.5% of its turnover to R&D activities which are concentrated mainly in Italy in company laboratories located in Provaglio d’Iseo and Gerenzano.
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Around 10% of the total workforce is dedicated to R&D activities.
PRODUCING IN 4 DIFFERENT CONTINENTS
BUSINESS OVERVIEW
Gefran has 4 production plants in Italy where it produces the full product mix (inverters, sensors and automation components), which are then exported on a global ( , p ), p gbasis.
In addition, the group has 4 more production sites in different parts of the world: USAIn addition, the group has 4 more production sites in different parts of the world: USA (produces sensors), Brazil (produces automation components), China (produces sensors and inverters), and Germany (produces inverters).
GEFRAN SpA Italy
During 2008‐2011 (4years), Gefran invested a total of c. €40 mn,
Gefran USA
Gefran China
G f
€11 mn of which was invested in 2011, and a major part of these investments were to increase the production Gefran
B il
Gefran Germany
capacities, renew the machinery and production sites.
Brasil
Production Site
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MARKETING, DISTRIBUTION & SALES
BUSINESS OVERVIEW
Gefran has direct presence in 13 different countries (including the representative office in Taiwan) via its own subsidiaries. ( g p )
In addition, the Company sells its products via 65 distributors(in 52 different countries) with whom Gefran established stable and long‐term(in 52 different countries) with whom Gefran established stable and long term relations.
GEFRAN SpA ItalyGefran UK
Gefran Germany Gefran Belgium
Having recently completed its investments in capacity, Gefran now targets to focus
Gefran USA
Gefran France
Gefran China
Gefran Switzerland Gefran Taiwan
Gefran now targets to focus investments in marketing and distribution.
Gefran Brasil
Gefran Spain
Gefran India
Gefran Singapore
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Commercial Site/Subsidiary
10‐YEAR REVENUE EVOLUTION
BUSINESS OVERVIEW
160
EconomicCrisis
Back toGrowth
120
140
80
100
40
60
0
20
40
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
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Gefran reached record‐high revenues of €139 mn in FY2011
GEOGRAPHICAL REVENUE BREAKDOWN
BUSINESS OVERVIEW
Europe FY2010 FY2011N A i FY2010 FY2011 Europe FY2010 FY2011
Sales 27.1 mn 32.1 mn
% in total 20.8% 23%
N. America FY2010 FY2011
Sales 8.2 mn 9.7 mn
% in total 6.3% 7.0%
Italy FY2010 FY2011
Sales 49.4 mn 48.8 mnAsia FY2010 FY2011
Sales 39 2 mn 42 2 mn% in total 38% 35%
Sales 39.2 mn 42.2 mn
% in total 30.2% 30.2%
Latam FY2010 FY2011
Sales 5.6 mn 5.7 mn
% in total 4.3% 4.1%RoW FY2010 FY2011
Sales 0‐5mn 1.0 mn
% in total 0.4% 0.7%
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65% of revenues are generated outside Italy
Financial ResultsFinancial Results
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2011 FINANCIAL SNAPSHOT Gefran increased its topline by7.4% yoy to €139 mn in FY2011,
FINANCIAL RESULTS
% y y ,from €129 mn in FY2010.
4Q2011‐only revenues decreased8.3% yoy, which was mainly a
€’000 FY2011 % FY2010* % Δ
Revenues 139,403 129,833 7.4%
Cons of material and y y, yresult of decreasing sales offotovoltaic products (from €9.2mn in 4Q2010 to €3.4 mn in4Q2011).
Cons. of material and products
‐55,295 ‐39.7% ‐50,406 ‐38.8% 9.7%
Value Added 84,108 60.3% 79,427 61.2% 5.9%
Operating Costs ‐26,093 ‐18.7% ‐24,084 ‐18.5% 8.3% Q )
The strongest geographicalmarkets in FY2011 have beenEurope and the North American
Personnel Costs ‐42,082 ‐30.2% ‐38,624 ‐29.7% 9.0%
Inc. for in‐factory works 2,522 1.8% 2,367 1.8% 6.5%
EBITDA 18 455 13 2% 19 086 14 7% ‐3 3% pmarkets which respectively grewby 19% and 18%.
Gefran invested €11.3 mn in
EBITDA 18,455 13.2% 19,086 14.7% ‐3.3%
Amm/Depr 6,189 4.4% 6,317 4.9% ‐2.0%
EBIT 12,266 8.8% 12,769 9.8% ‐3.9%
Financial Exp/Gain 381 0 3% 248 0 2% n mFY2011 in production units inItaly, China and the USA.Investments in FY2010 was €5.7mn.
Financial Exp/Gain ‐381 ‐0.3% 248 0.2% n.m.
Pre‐tax Income 11,885 8.5% 13,017 10.0% ‐8.7%
Taxes ‐2,728 ‐2.0% ‐5,327 ‐4.1% ‐48.8%
Minority Interests 444 0 3% 2 0 0% n m
FY2011 Ebitda was a €18.5 mn,with a yoy decrease of 3%. Ebitdamargin is at 13%.
Minority Interests 444 0.3% 2 0.0% n.m.
Net Profit 8,713 6.3% 7,688 5.9% 13.3%
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g
Gefran’s bottomline was at €8.7 mn in FY2011, with a 13% yoy increase. * Pro‐forma statements that are net of extraordinary components linked to restructuring costs.
SEGMENTAL PROFITABILITY
FINANCIAL RESULTS
Product Family Drives Sensors Automation Components Total
in €’000 2011 2010 Δ 2011 2010 Δ 2011 2010 Δ 2011 2010 Δ
Revenues 74,601 67,585 10% 36,409 34,604 5% 32,623 33,672 ‐3% 139,403 129,833 7%
EBITDA 8,104 9,484 ‐15% 8,834 6,241 42% 1,517 3,360 ‐55% 18,455 19,085 ‐3%
EBITDA % 10.9% 14.0% 24.3% 18.0% 4.7% 10.0% 13.2% 14.7%EBITDA % 10.9% 14.0% 24.3% 18.0% 4.7% 10.0% 13.2% 14.7%
EBIT 5,271 6,475 ‐19% 7,014 4,246 65% ‐19 2,047 ‐101% 12,266 12,768 ‐4%
EBIT % 7.1% 9.6% 19.3% 12.3% ‐0.1% 6.1% 8.8% 9.8%
Inverters. Inverters was the product family that grew the most (+10%) in 2011. The growth came in mainly from theAsian markets (+12%), North America (+24%), Germany and India. Italian market remained stable due mainly touncertainities in the photovoltaic business during 2011.
Sensors. Sales in Italy (+7%), Germany (16%) and North America (+12) increased significantly yoy, whereas the Asianmarket contracted by around 10% in volumes due mainly to the slow‐down in the plastic machinery segment in the regionduring 2H2011. Overall turnover in this business segment increased by 5%yoy to €36.4 mn. Operating margin improved by 7p.p. yoy.
Automation Components. Sales in both Germany and North America increased by 17% yoy whereas Italy (‐4%) and the
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Asian markets (‐9%) contracted. Overall turnover contracted by 3% yoy in this business segment to €32.6 mn. Operatingmargin in 2011 was at a breakeven.
SUMMARY B/S
FINANCIAL RESULTS
€’000 Dec 31, 2011 Dec 31, 2010 Δ
Inventories 28 657 30 993 7 5%Inventories 28,657 30,993 ‐7.5%
Trade receivables 48,981 43,237 13.3%
Trade payables ‐19,303 ‐25,396 ‐24.0%
Other net assets/payables ‐7,972 ‐11,381 ‐30.0%Other net assets/payables 7,972 11,381 30.0%
Current funds ‐2,007 ‐2,197 ‐8.6%
Net Working Capital 48,356 35,256 37.2%
Net Non‐Operating Capital 55,656 52,798 5.4%
Net Invested Capital 104,012 88,054 18.1%
Shareholders' Equity 77,414 69,314 11.7%
Short‐term Financial Debt ‐1,827 ‐3,056 ‐40.2%
Long‐term Financial Debt ‐24,771 ‐15,684 57.9%
Net Financial Position ‐26,598 ‐18,740 41.9%
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SUMMARY C/F STATEMENT
FINANCIAL RESULTS
€’000
Net Financial Position 31 December 2011 (18,740)
Profit 8,713
Amortisation 6,189
hfl f i i i iCashflow from Operating Activities 14,902
Increase in current receivables (5,744)
Increase in stock inventory 2 336Increase in stock inventory 2,336
Increase in current payables (6,093)
Others (3,599)
Change in working capital (13 100)Change in working capital (13,100)
Investments (11,275)
Dividends (2,117)( , )
Other 3,732
Net Financial Position 31 December 2011 (26,598)
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Q&A and Contact
Future StrategyFuture Strategy
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2012 ONWARDS
FUTURE STRATEGY
Growth in 2012 is expected to come more in the second half which is expected toGrowth in 2012 is expected to come more in the second half, which is expected tocarry Gefran’s 2012 total turnover to around €145 mn. Geographically, European salesare expected to remain as is whereas regions like North America, Asia and SouthA i d d i h h f G fAmerica are expected to drive the growth for Gefran.
Gefran’s priority in 2012 is to acquire new market shares. Within this context,investments from 2012 onwards will mainly be in commercial sales developmentincluding investments in sales forces and marketing operative activities.
PV product sales, which have so far been generated solely in Italy, are to increasewith the expected entrance into new geographies like South Africa, India, the USA,Middle East and other European countries.Middle East and other European countries.
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Stock Data and Shareholding StructureStock Data and Shareholding Structure
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STOCK PRICE & SHAREHOLDING STRUCTURE
STOCK DATA AND SHAREHOLDING STRUCTURE
Shareholder ShareGefranFTSE Italia Star Franceschetti Family 60.8%
Albemarle AM 2.1%
Free Float 37.0%
FTSE Italia Star
2011 2010 2009 2008 2007 2006 2005
Gefran’s Dividend History
2011 2010 2009 2008 2007 2006 2005
Dividend per share 0.15 0.15 0.00 0.10 0.25 0.25 0.24
Payout ratio 25% 23% 0% 31% 93% 103% 50%
Market price* 3.50 4.40 2.17 4.65 4.34 5.40 5.33
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p
Dividend yield 4.29% 3.41% 0.00% 2.15% 5.76% 4.63% 4.51%
* Data released at Board of Directors, March 9°, 2012.
Q & AQ & A
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CONTACT
Giovanna Franceschetti Investor Relations Director
Via Sebina 74 25050Via Sebina, 74 ‐ 25050 Provaglio d’Iseo (BS) ItalyTel. +39 030 98 88 237 ‐ Fax +39 030 9839063 E il i f h tti@ fEmail: [email protected]
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Thank you!Thank you!
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