Company presentation - Mühlbauer AG

Company presentation
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 1

Agenda
1. 30 years Mühlbauer –
a sound basis for further growth
- Core competence and Market positioning
- Fundamental data
- Worldwide close to our customers
- References
- Business fields
2. Facts and figures
3. Share
4. Market potential
5. Outlook
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 2

Core competence and market positioning
Technology know-how
Market know-how
• World market leader in equipment for Smart Identification
• Mühlbauer is the only one-stop shop supplier of technology and know-how
worldwide to support its customers to produce its own ID documents
• Intensively involved in more than 300 ID projects worldwide
• Sales and service on-site – always close to our clients
Independent Technology Partner with full competence in both technology
and markets
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 3

Fundamental data
Basis
• 2.400 employees on more than 30 locations worldwide
• Appr. 420 engineers in research & development
• Currently more than 360 trainees in the company
• High standards of sustainability and social commitment
Investment
• Technology & buildings: appr. EUR 195 million
• Research & Development: appr. EUR 179 million
• Huge investments were made in 2010 to generate the
conditions for even more extensive action in the markets
Market
Position
• The world’s leading system partner for the complete
technology and know-how-transfer for the production of
smart ID documents and integration of government
solutions
Financial
• Sales 2010: EUR 207.2 million
• EBIT margin 2010: 18.4%
• Equity ratio 2010: 73.5%
• Strong free cashflow provides financial
independence
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 4

Worldwide close to our customers
• Production on three continents –
Technology centers in Germany,
USA, Malaysia and Slovakia
• Know-how-transfer from
Germany guarantees the same
proven quality all over the world
• Over 30 sales & service
locations all over the world
• Continuation of the
internationalization of the Group
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 5

References in growing markets
Government
Industry
ePassport references
Smart Card references
U.A.E.
• Long-term business relations
with world market leaders
• Independent from individual
suppliers, customers or markets
• As partner of many governments
Mühlbauer is the first
choice for further ID projects
• As competent, reliable partner
we take over full responsibility for
our products and services
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 6

Business fields
High technology and market expertise around “Identification”
Cards &
TECURITY ®
Worldwide leading position for complete
technology and know-how transfer for the
production of smart ID documents. Intensively
involved in more than 300 ID projects worldwide
Semiconductor
Related
Products
Turnkey solution provider of RFID
Smart Label and semiconductor backend
technology
Precision
Parts &
Systems
High flexibility and speed, specialist for all
production steps in precision mechanical
engineering
High synergistic effects of Mühlbauer`s three business fields Cards & TECURITY ® ,
Semiconductor Related Products and Precision Parts & Systems
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 7

Cards & TECURITY ®
Complete turnkey solutions
Competence
Smart Card
• IC module & inlay production
• Card and Smart Card prod.
• Personalization & mailing
ePassport
• IC module & inlay production
• Holder page production
• Booklet production
• Personalization & mailing
Systems & Solutions
• Data enrolment
• Border crossing/verification
• Access control
• Vision inspection solutions
for security industries
• As the only company in the world Mühlbauer supports
governments and authorities by the complete technology &
know-how transfer in respect of the realization of ID projects
• Technology portfolio ranges from data enrollment technology to
Smart Card/ePass production and personalization systems
through to fully automatic access control – including software
solutions
• Involved in government projects on all continents; e.g. in
ePassport, ID Card, driver’s license and health card projects
• Market increasingly relies on unique business model and
system solution orientation with the result of more and more
large scale orders with complete responsibility
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 8

Semiconductor Related Products
Allowing flexibility
Competence
Smart Label
• RFID transponder production
• Converting & inserting
• Testing & personalization
Semicon. Backend
•Die sorting/die bonding
• Flip chip bonding
• Carrier tape forming
• Inspection solutions
•Marking & laser
• Automation & Board handling
Solar
• Thin film solar cell
• Concentrator solar cell techn.
• RFID: With a market share of 80% Mühlbauer is the world
market leader in the manufacture of complete production
solutions for RFID Smart Labels & conversion to selfadhesive
label or RFID ticket
• Semiconductor Backend: Mühlbauer focuses on promising
niches of the semiconductor market – product portfolio
comprises Die Sorter, Flip Chip Bonder and Carrier Tape
solutions. Furthermore Mühlbauer is a specialist for board handling,
marking systems as well as automation solutions and provides an
important contribution to greater production safety
• Solar: Developing of complete solutions for the production of
concentrator solar cells and future technologies for automation
of thin film solar processes
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 9

Precision Parts & Systems
Reliability guaranteed
Competence
• CNC-milling
• CNC-turning
• Eroding & Grinding
• Sheet metal working
• Welding processing
• Surface treatment
• Quality assurance
• System assembly
• Product realization
• Process management
• State of the art production centers on three independent
manufacturing sites for the production of precision parts
• Mühlbauer produces for own requirements as well as for external
customers in sophisticated industries such as aerospace,
motor sports, medical technology and the semiconductor industry
• As specialist for all production steps from a single source
Mühlbauer provides customers with highest quality and highest
flexibility
• State of the art machines and high qualified staff form the
basis for the competence in PPS
• Through local production on different sites Mühlbauer utilizes
specific location advantages
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 10

Agenda
1. 30 years Mühlbauer –
a sound basis for further growth
- Core competence and Market positioning
- Fundamental data
- Worldwide close to our customers
- References
- Business fields
2. Facts and figures
3. Share
4. Market potential
5. Outlook
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 11

Order income and order backlog
Thoroughly positive development of demand results in new all-time high
Order income
145.8 / 93.6%
+
Order backlog
89.0 / 125.5%
+
in millon EUR
350
300
250
200
150
155,8
301,6
in millon EUR
350
300
250
200
150
159,9
100
50
100
50
70,9
2009 2010
• Significant growth in orders in all business areas.
• Government projects, some of which with high
volumes, and a high demand for RFID technology
were the main motors of the huge growth.
Order inflow development of our business areas
2009 2010
• Our book-to-bill rate of 1.45 causes order backlog to
hit a new all-time high at the close of the business
year 2010
• Our order backlog offers an excellent starting position
for the business year 2011
Period Cards & TECURITY® Semicond. Related Products Traceability
Precision Parts & Systems
2010 / 2009 in million
€
+/- million € / %
199.9 / 109.7 63.4 / 28.5 12.0 / 4.9 26.3 / 12.7
90.2 / 82.2% 34.9 / 122.4%
7.1 / 144.9% 13.6 / 107.1%
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 12

Turnover development
Significant increases in all business areas
Turnover
46.7 / 29.1%
+
Turnover by region
In million EUR
250
200
150
160,8
207,5
Europa (ohne
Deutschland)
Deutschland
Asien
29,0
32,1
40,0
50,7
50,2
58,9
100
Amerika
18,1
22,6
50
Afrika
22,2
43,3
Sonstige
0,8
0,4
2010 2009
2009 2010
0 10 20 30 40 50 60 70
In million EUR
• Highest sales revenues in the company's history
• Considerable growth of our industrial business
• Highest turnover in Asia and Africa
Turnover development of the business areas
Period Cards & TECURITY® Semicond. Related Products Traceability
Precision Parts & Systems
2010 / 2009 in million
€
+/- million € / %
126.9 / 112.8 49.7 / 29.5 9.2 / 5.8 21.7 / 12.7
14.1 / 12.5% 20.2 / 68.8%
3.4 / 58.6% 9.0 / 70.9%
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 13

Profit development
Best overall result in the company's history
EBIT
28.6 / 297.9%
+
in million EUR
40
38,2
• Economies of scale lead to a disproportionate
increase of gross profit
30
20
• EBIT almost quadrupled
- EBIT margin at 18.4% - after 6.0% last year
10
9,6
• Profit boosted by one-time gains worth 2.6
million Euros (previous year: expenses worth
3.5 million Euros)
2009 2010
Profit development
Period Gross profit
Earnings before taxes Net earnings
Earnings per share
2010 / 2009 in million
€
+/- million € / %
82.4 / 54.1 38.6 / 9.7 30.3 / 7.3 €2.09 / €0.50
28.3 / 52.3% 28.9 / 297.9%
23.0 / 315.1% €1.59 / 318.0%
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 14

Cash flow
Significant growth despite massive capex
Cashflow development
Free cashflow
22.6 / 684.9%
+
In million EUR
18.8 47.9 (27.9) (15.6) 2.0 25.2
47.9 (27.9)
30
20
25.9
(15.6)
18.8
11.5
2.0 25.2
10
3.3
Cash 31 Dec.
2009
Cashflow
current
operating
activities
,
Cashflow
investment
activities
Cashflow
Financing
activities
Other
earnings
Cash funds
2009 2010
• The significantly higher net profit and the decrease in net working capital result in a strong cash
flow from operative activities
• Massive investment activities in Roding, Malaysia and Slovakia result in significantly higher
outflows
• Our free cashflow benefitted from the historically high net income and, despite considerably higher
capex, surpasses the previous year by 22.6 million EUR
• At the end of the year under review, total cash position amounted to 38.5 million euros (previous
year: 25.8 million euros)
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 15

Balance sheet
Strong financial basis and independence
Selected balance sheet figures
Period
Equity-to-fixed-assets ratio
Net working capital
Net cash position
Equity ratio
Total
2010 230.2% 38.1 38.4
73.5%
213.3
2010 / 2009
35.7 percentage points 23.2%
48.8%
4.4 percentage points
21.1%
In million EUR
• Solid balance sheet and financing structure
• Net working capital significantly reduced despite considerable business expansion
• Excellent cash position situation ensures financial independence
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 16

1. Quarter 2011
Order income and Order backlog
Order income
65,7 / 57,7%
-
Order backlog
0,5 / 0,3%
+
in Mio. EUR
150
100
113.9
In Mio. EUR
200
150
154.6
155.1
50
48.2
100
50
Q1/2010 Q1/2011
Q1/2010 Q1/2011
• As expected, consolidated order inflow was
significantly lower in light of last year's 64.2 million
EUR order
• In Q2 we acquired a further ID card project worth 20
million USD
Business line development of order income in EUR / %
• Our order backlog represents a solid basis for our
further business development
Period
Q1-2011 / Q1-2010
million €
Cards & TECURITY ®
Semicond. Related Products
Precision Parts & Systems
24,5 / 91,2 15,2 / 16,9 8,5 / 5,8
+/- million € / %
-66,7 / -73,1% -1,7 / -10,1%
2,7 / 46,6%
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 17

1. Quarter 2011
Sales and earnings
Sales
20,0 / 67,8%
+
EBIT
8,0 / 444,4%
+
in Mio. EUR
60
50
49,5
In Mio. EUR
12
10
EBIT
Ergebnis nach Steuern
9,8
40
30
29,5
8
6
7,4
20
10
4
2
1,8
2,1
0
Q1/2010 Q1/2011
0
Q1/2010 Q1/2011
• Our strong increase in turnover is based on growth in
all business units
• Almost unchanged at about 85%, our turnover focus
is still on Europe and Asia.
• Our positive business development and resultrelevant
special effects have resulted in a significant
increase in earnings
• With +13.8 million EUR (previous year +1.3 million
EUR), free cashflow remains strong
Business line development of sales in EUR / %
Period
Cards & TECURITY ®
Semicond. Related Products
Precision Parts & Systems
Q1-2011 / Q1-2010
In million €
+/- million € / %
www.muehlbauer.de
29,9 / 14,1 11,9 / 11,0 7,7 / 4,4
15,8 / 112,1% 0,9 / 8,2%
3,3 / 75,7%
Investor Relations
May 11 – Mühlbauer Group – Page 18

Agenda
1. 30 years Mühlbauer –
a sound basis for further growth
- Core competence and Market positioning
- Fundamental data
- Worldwide close to our customers
- References
- Business fields
2. Facts and figures
3. Share
4. Market potential
5. Outlook
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 19

The Mühlbauer share
Key data related to shares 2010 2009
Number of shares (in million) 14.7 14.7
Earnings per share (in EUR) 2.09 0.50
Dividend 1 (in EUR) 1.30 1.00
Dividend yield 2 (in %) 3.3 5.8
Market capitalization 2 (in EUR million) 587.1 252.0
Trading volume (aver. number shares per day) 6,731 3,761
Equity ratio (in %) 73.5 77.9
1 subject to approval by the Annual General Meeting 2 year end
Stock data (01/01/2010 to 05/03/2011)
350%
Mühlbauer
Tecdax
300%
250%
200%
150%
100%
50%
0%
J F M A M J J A S O N D J F M A
2010 2011
1
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 20

Agenda
1. 30 years Mühlbauer –
a sound basis for further growth
- Core competence and Market positioning
- Fundamental data
- Worldwide close to our customers
- References
- Business fields
2. Facts and figures
3. Share
4. Market potential
5. Outlook
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 21

Market potential
Cards & TECURITY ®
Key driver for Cards & TECURITY®
• Security and flexibility, e.g. by ePassport, eGovernment,
innovative security features
• New standards, e.g. biometric, contactless identification
• New laws and regulations, e.g. US-Visa-Waiver-Program, ICAO
Standards, EU Regulation
• EMV standard is driving many banks to issue smart cards
• Further growth in GSM/SIM cards due to high demand in developing
and emerging countries
• ePassports and ID Cards become a standard worldwide: Governments
and authorities replace conventional ID documents by innovative smart
cards or ePassports
Governments and authorities prefer
customized and complete solutions
from one single source
Continuous growth due to increasing
applications of smart cards
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 22

Market potential
Cards & TECURITY ®
Governmental Documents
National Planning & Statistics Biometric Identification Systems
Mühlbauer is the independent System and Technology Partner for…
eGovernment Services
www.muehlbauer.de
Biometric Boarder Management Biometric Verification in the field
Investor Relations
May 11 – Mühlbauer Group – Page 23

Market potential
Semiconductor Related Products
Key driver for Semiconductor Related Products
RFID Backend Traceability Solar
Optimization of logistics,
security and the flow of
goods, increased flexibility
Continuous trend
regarding to miniaturize
of chips (Dice)
More product safety and
improvement of efficiency
through automation
Pushing of renewable
energy production
Continuing demand due to increasing miniaturization of devices
and extension of chip technology in new applications
RFID market continues to grow,
specially in supply chain management,
ticketing and apparel industry
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 24

Agenda
1. 30 years Mühlbauer –
a sound basis for further growth
- Core competence and Market positioning
- Fundamental data
- Worldwide close to our customers
- References
- Business fields
2. Facts and figures
3. Share
4. Market potential
5. Outlook
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 25

Outlook
Business areas
and markets
The markets relevant for Mühlbauer will continue gaining importance. As a provider of
comprehensive technology and market know-how from a single source, we consider ourselves
very well positioned to benefit above average from market potentials.
Business
development
We continue to expect turnover and result of the full year to increase in comparison to the
previous year.
Investments
Depending on the current business development, we intend to invest up to 20 million EUR in
the current business year, in our German sites as well as for expanding existing sites and
establishing new sites abroad. With a planned 25 million EUR, investments in research and
development will remain on a high level.
Dividend
As in the past, we do not intend to change our dividend policy.
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 26

Financial calendar and contact
Financial calendar
2 August 2011 Quarterly Report Q2/2011
3 November 2011 Quarterly Report Q3/2011
23 November 2011 German Equity Forum (Frankfurt)
2 December 2011 European Conference (London)
Contact
Mühlbauer Holding AG & Co. KGaA
Investor Relations
Josef-Mühlbauer-Platz 1
93426 Roding, Germany
Phone: +49 9461 952 - 1653
Fax: +49 9461 952 - 8520
Email: investor-relations
@muehlbauer.de
www.muehlbauer.de
Investor Relations
May 11 – Mühlbauer Group – Page 27