GESCO ODDO Frankfurt
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Transcript of GESCO ODDO Frankfurt
Investing in the technology-driven German „Mittelstand“
From melting steel... ...to 3D printing
Oddo Small and Midcap Event Frankfurt/Main 17 Feb. 2016
Long-term investments
1 holding
company
1. Business model highlights
2
~500 €m sales
2,550 staff
27 years of
experience
17 direct
subsidiaries
Technology made in Germany for the world markets
(direct or indirect export)
Always in search of new
“hidden champions”
M&A is an ongoing process
Succession issues
100% takeovers
New management acquires
10% to 20%
~100,000 German SMEs face succession in the years ahead
1. Business model
Materials
Machines
Tools
Components
Our world: B-to-B and investment goods. From melting steel to 3D printing.
Our mission: Being successful by supporting our customers’ success
with products and services made in Germany.
Services
3
25% Passenger and
commercial vehicles
1. Business model
4
15% Iron, plate and
metal processing, tool construction
15% Machine and
plant construction
Our customer sectors: widely spread.
12% Other
5% Chemical and petrochemical
industry
6% Energy
6% Agricultural technology
5% Electrical, medical
technology, household goods
3% Construction,
air conditioning, sanitary industry
4% Consumer goods
industry
4% Foundries and
roller mills
1. Business model – Materials (sales and staff FY 2014)
5
Providing high-alloyed tool steel Europe’s leading
centre for
special steels
Distributing around the world
for decades. Own subsidiaries in Asia.
~ 3,000 customers from the investment
goods industry (machines, tools, etc.)
One of the first apps in the industry.
However: personal contact
is king.
Extensive expertise
from in-house steel foundry, casting,
coating & hardening
€ 172 m sales 500 staff
1. Business model – Machines and systems (sales and staff FY 2014)
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Makes things run smoothly Worldwide: 85% export ratio.
Loading arms
for gases and liquids
Specialty
LNG
Provides accuracy and safety
Straightening machines
and wheel set presses
World market leader
in both divisions
€ 44 m sales 182 staff
€ 25 m sales 160 staff
1. Business model – Tools (sales and staff FY 2014)
7
Supports accurate production
Large, complex tools
for car body parts
Large in-house presses;
strong service business
€ 25 m sales 178 staff
Moulds for
aluminium die-casting
Supports lightweight construction
€ 14 m sales 115 staff
In-house foundry
with three die-casting presses
1. Business model – Components (sales and staff FY 2014)
8
Reliable parts for farmers
Europe’s leading forge for
agricultural wear parts
Founded in 1836
well-established brand
€ 28 m sales 274 staff
Supports stable production processes
€ 15 m sales 59 staff
Paper and
plastic sticks
Sweets and hygienic industries
90% export ratio
1. Business model – Services (sales and staff FY 2014)
9
Provides precision and creativity
High-precison
wire erosion and
die sinking
Successful
3D printing business unit
€ 8.3 m sales 57 staff
Increases the lifetime of means of production Coating &
hardening division
Provides different technologies
plus in-depth expertise
Subsidiaries’ FY = calendar year
Please keep in mind:
10
2. Financial year 2015/2016
Jan. Dec.
March April
GESCO AG / GESCO Group FY = 1 April to 31 March
How did we start? Initial situation and expectations for 2015/2016 (as at annual accounts press conference on 25 June 2015)
+ Positive forecasts:
GDP +2.1% VDMA +2% GKV +2.6%
2. Financial year 2015/2016
11
- Low oil price oil industry
reluctant to invest
- Agricultural technology still weak
- Some tool
manufacturers in the Group expect weaker business (cyclical effects)
- Two restructuring
cases still negatively
affecting margins
+ Business at a
satisfactory level, e.g. at
Dörrenberg, Haseke, Setter
• sales should grow organically
• plus inorganic growth (Setterstix)
• but margins continue to be too low
+ Setterstix
(acq. Jan. 2015) provides external
growth
Where are we now? Situation after first nine months
Pretty lively
customer demand
2. Financial year 2015/2016 – Q1 to Q3
12
Earnings grow even stronger,
especially due to:
Growing order intake
and sales
operating improvements;
better than expected e.g.
CFK WBL Group
Setter Group
restructuring activities at 2 subsidiaries
(MAE and Protomaster) proceeding
2. Financial year 2015/2016 – Q1 to Q3 (Jan. to Sept. 2015 at subsidiaries)
Q1 to Q3 2014/2015
Q1 to Q3 2015/2016
Change
Order intake € m 340.0 378.1 11.2%
Sales € m 337.9 369.2 9.3% EBITDA € m 34.4 40.5 17.6% EBIT € m 20.4 25.3 23.7% Group net income after minority interest
€ m
10.5
12.9
24.1%
EPS acc. to IFRS € 3.14
31/03/2015
3.90
31/12/2015
24.1%
Equity € m 182.8 190.6 4.3% Equity ratio % 45.3 44.1 - Liquid funds € m 35.3 37.9 7.5%
13
Organic: +6.5%
Organic: +8.5%
Solid balance sheet,
room for growth
€ 5.8 m dividend
paid out in Q2
Pretty lively
business
Operating improvements,
restructuring activities
proceeding
2. Financial year 2015/2016 – Q4 (Oct. to Dec. 2015 at subsidiaries)
How are we proceeding? As expected, customer demand slightly calmed down in Q4. (preliminary figures)
14
Q4 2015/2016
-4.4%
€ 108.8 m ∼ € 104 m
Q4 2014/2015
Order intake Sales
Q4 2015/2016
+5.8%
€ 113.4 m ∼ € 120 m
Q4 2014/2015
Where do we go from here? General current situation: a mixed picture.
Already in July,
VDMA cut outlook from +2%
to zero growth
2. Financial year 2015/2016
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Declining demand from
China due to decreasing
growth
Oil and chemical industry still
hesitant to invest
Resummee as at half year (Nov. 2015)
• No indication of a significant, widespread decline in demand
• But no notable growth impetus either
Within GESCO Group
Many profit warnings on the
stock market
2. Financial year 2015/2016 – Outlook
Target figures for Group sales.
16
2014/2015 Actual
2015/2016 Guidance June 2015
€ 451 m
€ 490 m to
€ 480 m
2015/2016 Guidance Feb. 2016
∼ € 490 m +8.5% yoy
2. Financial year 2015/2016 – Outlook
Target figures for Group net income after minority interest.
17
2014/2015 Actual
2015/2016 Guidance June 2015
€ 12.4 m
€ 14.0 m to
€ 12.5 m
2015/2016 Guidance Feb. 2016
+29.5% yoy ∼ € 16 m
3. Share price development (in %) – 1 and 5 years
GESCO vs. SDAX, 1 year GESCO vs. SDAX, 5 years
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─ GESCO ─ SDAX
85
90
95
100
105
110
115
120
70
80
90
100
110
120
130
140
150
160
170
180
Free float: 85.5%
Stefan Heimöller, entrepreneur, member of supervisory board: 14.5 %
Investmentaktiengesellschaft für langfristige Investoren TGV: 11.9 %
Dividend policy: payout ratio approx. 40 % of Group net income after minority interest
Appendix – Shareholder structure and dividend policy
19
Founded: 1989 Share capital: € 8,645,000 Shares: 3,325,000 registered shares Free float: 85.5% Stock markets: Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg, Hanover, Munich, Stuttgart (open market) Sec. identification number: A1K020 ISIN: DE000A1K0201 IPO: 24/03/1998 End of financial year: 31 March Designated sponsors: equinet Bank AG Oddo Seydler Bank AG
Appendix – Facts and figures for GESCO AG
20
Appendix – GESCO Group overview
Company Sales 2014 €‘000
Staff 31/12/2014
GESCO AG shareholding
Astroplast Kunststofftechnik GmbH & Co. KG 16,646 92 80%
Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 9,492 108 100%
C.F.K. CNC-Fertigungstechnik Kriftel GmbH 8,330 57 80%
Dömer GmbH & Co. KG Stanz- und Umformtechnologie 14,719 102 100%
Dörrenberg Edelstahl GmbH 171,683 501 90%
Frank Group 28,225 274 90%
Franz Funke Zerspanungstechnik GmbH & Co. KG 16,861 81 80%
Haseke GmbH & Co. KG 12,742 63 80%
Hubl GmbH 10,806 101 80%
Georg Kesel GmbH und Co. KG 12,454 69 90%
MAE Maschinen- und Apparatebau Götzen GmbH 24,768 160 100%
Modell Technik Formenbau GmbH 13,948 115 100%
Protomaster GmbH 8,630 110 82.17%
Setter Group 14,567 59 100%
SVT GmbH 44,104 182 90%
VWH Vorrichtungs- und Werkzeugbau Herschbach GmbH 11,151 109 80%
Werkzeugbau Laichingen Group 25,196 178 85% 21
Appendix – GESCO management
Executive Board
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Dr-Ing Hans-Gert Mayrose * 1958. Joined GESCO in 2000, board member since 2002. M&A, IR, advising holdings. Many years of management experience in the domestic and international capital goods business.
Robert Spartmann * 1960. Board member since 2001. Financials, legal, HR, advising hol-dings. Tax advisor and auditor. Many years of experience in SME sector. From 1995 to 2000 external advisor for GESCO Group.
Dr Eric Bernhard * 1972. Board member since Jan. 2016. Stra-tegic and operating development of subsi-diaries. Many years of management experi-ence in consulting and various industries.
Appendix – GESCO management
Supervisory Board
23
Klaus Möllerfriedrich Chairman
* 1947 Co-founder of GESCO.
Board member since 1989. Tax advisor, auditor,
consultant.
Stefan Heimöller Deputy Chairman
* 1963 Board member since 2013.
Business owner / entrepreneur.
Dr Nanna Rapp * 1969
Board member since 2015. MD of E.ON Inhouse
Consulting GmbH.
Appendix – Financial calendar
Financial calendar
15 February 2016 Q3 figures (01/04 to 31/12/2015)
17 February 2016 ODDO Small & Mid Cap Event, Frankfurt/Main
30 June 2016 Annual Accounts Press Conference and Analysts’ Meeting
15 August 2016 Q1 figures (01/04 to 30/06/2016)
25 August 2016 Annual General Meeting
15 November 2016 Q2 figures (01/04 to 30/09/2016)
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Appendix – Investor relations contact
Investor Relations GESCO AG Phone: +49 202 24820-18 Investor Relations Fax: +49 202 24820-49 Oliver Vollbrecht E-mail: [email protected] Johannisberg 7 Internet: www.gesco.de 42103 Wuppertal
Germany
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Anything else you’d like to know?
Contact Oliver Vollbrecht, Head of IR Phone: +49 202 2482018
Email: [email protected]