Download presentation for analysts September ... - Schulthess Group
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Download presentation for analysts September ... - Schulthess Group
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<strong>Schulthess</strong> <strong>Group</strong><br />
Investor <strong>presentation</strong><br />
<strong>September</strong> 2003
„THIS PRESENTATION CONTAINS FORWARD LOOKING STATEMENTS WHICH INVOLVE RISKS<br />
AND UNCERTAINTIES. THE PRESENTATION IS NOT BEING ISSUED IN THE UNITED STATES<br />
OF AMERICA AND SHOULD NOT BE DISTRIBUTED TO UNITED STATES PERSONS OR<br />
PUBLICATIONS WITH A GENERAL CIRCULATION IN THE UNITED STATES. THIS DOCUMENT<br />
DOES NOT CONSTITUTE AN OFFER OR INVITATION TO SUBSCRIBE FOR OR PURCHASE ANY<br />
SECURITIES. IN ADDITION, THE SECURITIES OF SCHULTHESS GROUP HAVE NOT BEEN<br />
REGISTERED UNDER THE UNITED STATES SECURITIES LAW AND MAY NOT BE OFFERED,<br />
SOLD OR DELIVERED WITHIN THE UNITED STATES OR TO U. S. PERSONS ABSENT<br />
REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION<br />
REQUIREMENTS OF THE UNITED STATES SECURITIES LAWS.“
Focus on two business divisions<br />
Washing Technology<br />
Synergies are<br />
consistently used<br />
Heating/Cooling<br />
Technology
Key figures of our <strong>Group</strong><br />
(in CHF `000) 6 months 2003 12 months 2002<br />
Sales 70 549 147 572<br />
Op. Cash-flow EBITDA 10 628 20 155<br />
In % of sales 15.1% 13.7%<br />
Op. result EBIT 8 362 15 730<br />
In % of sales 11.8% 10.7%<br />
Net profit 6 205 13 178<br />
In % of sales 8.8% 8.9%<br />
Dividend (CHF) n/a 20.00<br />
No. of employees 540 553
Sales 1st half year 2003<br />
Heating/<br />
Cooling<br />
Technology<br />
16%<br />
by division<br />
Rest Europe<br />
2%<br />
France<br />
1%<br />
UK<br />
1%<br />
Washing<br />
Technology<br />
84%<br />
by region<br />
Austria<br />
4%<br />
Switzerland<br />
84%<br />
Germany<br />
8%
Organizational structure (since Sept. 1, 2003)<br />
Washing Technology<br />
Division Marketing / Sales /<br />
Customer Services<br />
Hans-Peter Stamm<br />
<strong>Schulthess</strong><br />
Maschinen AG (CH)<br />
<strong>Schulthess</strong><br />
Maschinen GmbH (AT)<br />
Merker AG (CH)<br />
Novelan AG (CH)<br />
Household appliances<br />
Washing Technology<br />
Division Production / Logistics/<br />
Research / Development<br />
Gion Antoni Huonder<br />
<strong>Schulthess</strong> <strong>Group</strong> AG<br />
Board of Directors<br />
Chairman/Delegate<br />
Rudolf Kägi<br />
<strong>Schulthess</strong> <strong>Group</strong><br />
CEO<br />
Rudolf Kägi<br />
CFO<br />
Max M. Müller<br />
<strong>Schulthess</strong><br />
Maschinen AG (CH)<br />
Washing Technology<br />
J.V. Wuxi Little Swan<br />
<strong>Schulthess</strong> (25% part.)<br />
Heating/Cooling Technology<br />
Division Marketing /Sales/<br />
Customer Services/Production<br />
Logistics/Research/Developm.<br />
Artur Rodecker<br />
Alpha-Innotec<br />
GmbH (DE)<br />
Novelan GmbH (DE)<br />
Calmotherm AG (CH)<br />
Novelan AG (CH)
Washing Technology
Washing Technology – our market position<br />
• Focused on top quality<br />
• Strong market position<br />
in Switzerland<br />
• Market leader in<br />
commercial appliances<br />
• Active with own brands<br />
and other labels<br />
Commerce<br />
15%<br />
Multioccupancy<br />
properties<br />
45%<br />
Sales by segment<br />
(<strong>Schulthess</strong> Washing Technology)<br />
Single-family<br />
houses<br />
40%
Washing Technology – strong brands<br />
own brand names<br />
other labels
Washing Technology – Switzerland<br />
• Continued difficult economic situation and weak<br />
consumer sentiment<br />
• Tendency of customers to repair appliances, rather than<br />
to buy new ones => increase in revenues at our aftersales<br />
organization<br />
• Stagnating market and increased price pressure<br />
• Sales growth possible through new product innovations<br />
and economic recovery
Washing Technology – Europe<br />
• In Europe active only with assortment <strong>for</strong> multiple<br />
occupancy properties and commercial use<br />
• Increasing sales through new sales representatives<br />
• Active across all European countries<br />
• Austria, UK and France remain strongest markets in<br />
revenue terms<br />
• Increasingly strong position in Europe especially with<br />
assortment <strong>for</strong> multi-occupancy properties with<br />
customers such as smaller hotels, nursing homes, etc.
Washing Technology – innovative products<br />
• No product in Washing Technology is older than 4 years<br />
• Successful product launch „Spirit XL“ generation in the<br />
Swiss market<br />
• Larger drum diameter<br />
• Free Floating Technology FFT<br />
• Significantly better washing results – shorter washing<br />
times<br />
• Less energy and water used<br />
• Special programs <strong>for</strong> the care and waterproofing of<br />
modern textiles and fabrics
Washing Technology – modern production<br />
• „Our customer orders – we produce!“<br />
• Delivery within 24 hours after order intake<br />
• Over 1‘000 different varieties of washing machines with<br />
specific product characteristics<br />
• Automation process in manufacturing parts <strong>for</strong> washing<br />
machines<br />
• Integrated just-in-time production<br />
• Just-in-time makes low stock in raw materials possible<br />
• Only small stock of end products<br />
• High EBIT margin as a result
Heating/Cooling Technology
Heating/Cooling Technology<br />
8000<br />
7000<br />
6000<br />
5000<br />
4000<br />
3000<br />
2000<br />
1000<br />
0<br />
Total market heating pumps Switzerland<br />
Sales 2002: 7554 heating pumps<br />
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02<br />
Source: FWS
Heating/Cooling Technology<br />
%<br />
50<br />
Market share of heating pumps in newly built houses (CH)<br />
40<br />
30<br />
20<br />
10<br />
0<br />
20.8<br />
23.6<br />
30.1<br />
21.4<br />
24.3<br />
30.4 30.1<br />
31.7<br />
39.6<br />
40.4<br />
45.6<br />
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02<br />
Source: FWS
Heating/Cooling Technology<br />
9000<br />
8000<br />
7000<br />
6000<br />
5000<br />
4000<br />
3000<br />
2000<br />
1000<br />
0<br />
Total market heating pumps Germany<br />
Sales 2002: 8326 heating pumps<br />
'96 '97 '98 '99 '00 '01 '02<br />
Source: BWP e.V.
Heating/Cooling Technology<br />
installers / suppliers<br />
public authorities<br />
energy consulting<br />
references<br />
municipal authorities<br />
In CH house-owners and constructors in<strong>for</strong>m themselves via:<br />
trade journals<br />
architects<br />
info offices<br />
others<br />
%<br />
0 5 10 15 20 25 30 35<br />
Source: FWS
Heating/Cooling Technology –<br />
market differences<br />
Switzerland<br />
• Market share of 30% <strong>for</strong> 5 years<br />
• Strong acceptance of heating<br />
pump as an alternative to<br />
conventional heating systems<br />
• Installers / suppliers influence<br />
house-owners<br />
• Heating pumps supported by<br />
grants from energy producers<br />
and municipalities / cantons<br />
Germany, Austria<br />
• Under 5% market share<br />
• Knowledge of installers and<br />
architects must be increased by<br />
teaching and in<strong>for</strong>mation<br />
• New governmental<br />
requirements concerning CO2<br />
emission increases potential <strong>for</strong><br />
heating pumps<br />
• Only 5 out of 15 German states<br />
support heating pumps with<br />
grants
Heating/Cooling Technology<br />
• Sales growth in heating pumps during 1st half year 2003<br />
+ 7.5% vs. year be<strong>for</strong>e<br />
• Discontinued operations (air-technology at Novelan AG)<br />
accounted <strong>for</strong> CHF 2 million during 1st half of 2002<br />
• Y-o-Y comparison Heating/Cooling Technology there<strong>for</strong>e<br />
distorted<br />
• Strong growth in Germany and Austria<br />
• Increased sales activities and larger production capacities<br />
• Large area <strong>for</strong> production and storage available as a result<br />
of the investments made in 2002
Financial details
Sales<br />
CHF million<br />
160<br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
114.4<br />
124.6<br />
142.0<br />
148.8 147.6<br />
70.5<br />
1998 1999 2000 2001 2002 6 mt. 2003
EBITDA<br />
CHF million<br />
22<br />
20<br />
18<br />
16<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
17.1<br />
18.4<br />
19.8 20.1 20.2<br />
10.6<br />
1998 1999 2000 2001 2002 6 mt. 2003<br />
14,9 14,8 13,9 13,5 13,7 15,1 margin in %
EBIT<br />
CHF million<br />
18<br />
16<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
12.9<br />
14.7<br />
15.4<br />
15.9 15.7<br />
1998 1999 2000 2001 2002 6 mt. 2003<br />
11,3 11,8 10,8 10,7 10,7 11,9 margin in %<br />
8.4
Net profit<br />
CHF million<br />
14<br />
12<br />
10<br />
8<br />
6<br />
4<br />
2<br />
0<br />
10.1 10.3<br />
11.6<br />
12.6<br />
13.2<br />
1998 * 1999 2000 2001 2002 6 mt. 2003<br />
8,3 8,3 8,2 8,5 8,9 8,8 margin in %<br />
* inkl. CHF 1.8 m extraordinary profit<br />
6.2
Consolidated balance sheet<br />
Total assets CHF 121.5 m (June 30, 2003)<br />
Fixed assets<br />
(incl. Goodwill<br />
CHF 1.8 m)<br />
Inventories<br />
Trade accounts<br />
receivable<br />
Cash and<br />
marketable<br />
securities<br />
Assets CHF m Liabilities<br />
57.1<br />
26.4<br />
23.4<br />
14.6<br />
77.3<br />
16.6<br />
16.8<br />
10.8<br />
Shareholders‘<br />
equity incl.<br />
minority interests<br />
Provisions and<br />
def. income tax<br />
Short-term<br />
liabilities<br />
Financial<br />
liabilities
Shareholder structure<br />
(August 2003)<br />
# shares: 212‘500<br />
other shareholders<br />
61.95%<br />
R.Kägi<br />
12.14%<br />
Management &<br />
employees<br />
2.35%<br />
UBS Fund Mgmt.<br />
6.85%<br />
A. Malär<br />
5.76%<br />
B. Rutz<br />
5.01%<br />
<strong>Schulthess</strong> <strong>Group</strong><br />
5.94%
Outlook 2003<br />
• Political and economic situation worldwide results in weak<br />
consumer sentiment<br />
• Washing Technology: New Spirit XL generation gives new<br />
impulses<br />
• Heating/Cooling Technology: Further growth expected<br />
(especially in Germany and Austria)<br />
• Goals <strong>for</strong> profitability unchanged<br />
– EBIT margin 10 – 12%<br />
– Return on sales margin > 8%<br />
– Dividend payout-ratio > 30%
<strong>Schulthess</strong> <strong>Group</strong> as an investment<br />
• Concentrated focus on two business divisions Washing<br />
Technology and Heating/Cooling Technology<br />
• Leading market positions in both business areas<br />
• Very experienced Board of Directors and Management team<br />
• Solid financial situation (shareholders‘ equity at over 62% )<br />
• Profit oriented<br />
• Attractive dividend<br />
• Value Investment with growth potential in Heating/Cooling<br />
Technology
www.schulthess-group.com<br />
Upcoming events:<br />
• March 16, 2004<br />
Results FY 2003<br />
• April 22, 2004<br />
AGM in<br />
Wolfhausen
Investor Relations – Your partners<br />
• Rudolf Kägi, Chairman and Chief Executive Officer<br />
Phone +41 – 55 – 253 51 11<br />
Fax +41 – 55 – 253 54 80<br />
Email direktion@schulthess-group.com<br />
• Max M. Müller, Chief Financial Officer<br />
Phone +41 – 55 – 253 51 11<br />
Fax +41 – 55 – 253 54 80<br />
Email cfo@schulthess-group.com
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