Von Roll – We enable energy
Von Roll – We enable energy
Von Roll – We enable energy
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Placeholderfor picture<strong>Von</strong> <strong>Roll</strong> <strong>–</strong> <strong>We</strong> <strong>enable</strong> <strong>energy</strong>Investors Day SGKBSt. Gallen, September 11, 2008
AgendaI. Company introduction & key financialsII. Business strategy & outlook2 | Investors Day SGKB | September 11, 2008
<strong>Von</strong> <strong>Roll</strong> Group <strong>–</strong> company overviewOverview» Founded over 200 years ago, <strong>Von</strong> <strong>Roll</strong> is todaythe recognized market leader in the fields ofinsulation products and systems for theelectrical machinery industry as well as forcomposite materials and parts for variousindustrial applications» The company also provides special thermal andfire resistant insulation products to the cable,electronics and other industries» <strong>Von</strong> <strong>Roll</strong> is headquartered in Switzerland, andoperates in about 30 locations throughout theworld with over 3,000 employees» <strong>Von</strong> <strong>Roll</strong> is listed on the Swiss Exchange with acurrent market capitalization of over CHF 2 bnKey financials(CHF m) Act 05 Act 06 Act 07Order intake 482 574 681Net sales 448 532 620EBITDA 33 49 58EBIT 18 27 48EBITDA margin (%) 7.4 9.2 9.4EBIT margin (%) 4.0 5.1 7.7Sales per FTE 234 272 297Asia24%America17%2007 sales break down59%EuropeIndustrial23%77%Electrical3 | Investors Day SGKB | September 11, 2008
<strong>Von</strong> <strong>Roll</strong> Group <strong>–</strong> group structureElectricalIndustrialWiresEnameled wires, Covered conductors, Litz wiresLiquidsResins and varnishesCompositesPrepregs, Tubes, Pressed, long & moulded partsCablesFire resistant cable tapesTapesMica electrical l tapes, Non-Mica tapesLaminatesRigides/ flexible laminates, Adhesive tapesSales and EBIT by segment 2007 (CHFm; %)Sales 479 77%EBIT* 41 81%142 23%10 19%*excluding other activitiesi i4 | Investors Day SGKB | September 11, 2008
<strong>Von</strong> <strong>Roll</strong> Group <strong>–</strong> industry & market overviewCore business<strong>Von</strong> <strong>Roll</strong> Group <strong>–</strong> segments 2007 Power generation AerospaceElectricalSales/ EBIT *:CHF479/ 41mIndustrialSales/ EBIT *:CHF142/ 10mAdjacent marketsEnergyHighVoltageCompositesWind <strong>energy</strong> Oil & Gas, Marine Water & EnvironmentLowVoltageCableTransportationMedicalComponentsMachinesPaper&TextileElectronics…Global market electrical: > CHF 2 bnRepairTransformers7%6%Consumer14%15%Automotive*including other activitiesGlobal market industrial: > CHF 4 bnTractionEquipmentPaper6%9%1%18%Moulded parts36%Rotating motors9%GeneratorsIndustrial2% 52%24% CableProtection5 | Investors Day SGKB | September 11, 2008
Selected electrical product applications for High VoltageWind turbine generatorsTraction motorsLarge power generators» windig wires» mica and other tapes» resins and varnishes»rigid laminates6 | Investors Day SGKB | September 11, 2008
Selected electrical product applications for Low VoltageIndustrial motorsLow-voltage consumer motorsAutomotivemotors»winding wires» resins and varnishes» adhesive and other tapes» flexible laminates7 | Investors Day SGKB | September 11, 2008
Selected applications for defence and ballistic protectionPrepregs for helmets & vest inserts manufacturingLaminatesfor shieldsmanufacturingFloor & side spall liner panels with decorativefilms for military steel armoured vehiclesPanels for wall & vehiclearmoring for civil protection8 | Investors Day SGKB | September 11, 2008
Selected applications for the marine industryComposites in Marine and offshore to substitute metal9 | Investors Day SGKB | September 11, 2008
Key financial figures <strong>–</strong> since 2007 group back on trackSales 2005-07 (CHFm)EBIT 2005-07 (CHFm)+18%62044532+57%4483454044791827 412217104 128 142-237-210-72005 2006 20072005 2006 2007ElectricalIndustrialOtherStrong recovery of top line and even more operating profitabilityproven over recent years10 | Investors Day SGKB | September 11, 2008
2007 consolidated results<strong>Von</strong> <strong>Roll</strong> key figures 2007 Delta%» Orders received 680.6 +19%− Electrical 533.6 +21− Industrial 147.0 +11» Net sales 620.2 +17− Electrical 478.5 +18− Industrial 141.7 +11»Operating income* 48.1 +36− Electrical 41.3 +36− Industrial 10.0 +48Per share 2007 Delta%» EPS 0.28 +83%» Operating CF 020 0.20 +41» Cons. equity 3.52 +197» Dividend 0.102007 Delta%» ROIC 23% +200bp» Market cap. (m) 1‘570 +218%» Equity ratio 75% +2310bpSuccessfully strengthened <strong>Von</strong> <strong>Roll</strong> core business*including other activities11 | Investors Day SGKB | September 11, 2008
1H’08 key performance metrics1H’08 growth (Delta%) 1H’08 profit (Delta%)+11%+12%+21% 22%Order intakeSalesEBITNet income1H’08 margins CFOA (CHFm)10%8%16.2367%3.5EBIT Net income 1H07 1H08Solid performance in tough environment12 | Investors Day SGKB | September 11, 2008
Stock performance <strong>–</strong> return to investorsShare price performance (30.07.2008)(Volume in Millions)1086420Price (Indexed)125Per share dataROL SPI Vol. ROLH1'08Jul 07 Okt 07 Jan 08 Apr 08 Jul 08Highlights1007550EBIT 0.18Net income 0.15CFOA 0.09Equity 2.76Number of issued shares 184.8Share price (high) 11.5Share price (low) 83 8.3Share price (end of period) 10.75Market capitalization(bn)2.0» <strong>Von</strong> <strong>Roll</strong> share price increased by 26.5% in 1H’08» The shares outperformed the Swiss and the European stock markets, for which the key indices SMI andDJ Euro Stoxx declined by 22.7% and 16.4% respectively in the same period» Based on 1H’08 closing price (30.06.08) market capitalization increased by 32.7% to around CHF 2bn» The average daily trading volume was at 193’316 shares» At the annual shareholders meeting on 7 th of April, the Board of Directors proposed the payout ofdividends of CHF 0.10 per share - which was accepted by the shareholders13 | Investors Day SGKB | September 11, 2008
AgendaI. Company introduction & key financialsII. Business strategy & outlook14 | Investors Day SGKB | September 11, 2008
<strong>Von</strong> <strong>Roll</strong> strategic growth plan to double sales and EBITmargin in 5 yearsOrganization Financials Market Non core» Streamline existingcorporate structure andproduction site network» Create product drivenorganizational structure» Organizational set up forfuture growth in adjacentand non-core businesssegments(CHFm) 2007 2012e » Enlarge global footprintwith strong focus on fastSales 620growing market such asChina and AsiaEBIT 48Margin 8%Doublesales andEBITmargin» Strengthen corebusiness with add-onacquisitions» Enable growth in highlyattractive adjacent areassuch as <strong>energy</strong>, coatingand components, watertreatment and otherselected high techmarketsStreamlineOptimize Focus ExpandStrategic targetStrengthen position as a leading high tech <strong>enable</strong>r for the <strong>energy</strong> industry15 | Investors Day SGKB | September 11, 2008
Matrix organization set up to manage future growthNew <strong>Von</strong> <strong>Roll</strong> structure<strong>Von</strong> <strong>Roll</strong> Headquarters, CHFinanceInsulation Operations 1 Operations 2CorporatefunctionsStratg. MarketingHR...M&A, Com, IRRegionEuropeRegionsRegionAmericasRegionAsia16 | Investors Day SGKB | September 11, 2008
Global market trends <strong>–</strong> guarantee for long-term growthWorld electric power generation, 2004- 2030*Cumulative investment in <strong>energy</strong> by fuel, 2001-(Billion kilowatt-hours)40,0002030*Total investment: $16 trillion30,00030,36424,959Oil20,000 16,42419%10,00002004 2020 2030World electric power generation by region,1980- 2030*(Billion kilowatt-hours)20,00015,00010,0005000 5,000OECDNon-OECD01980 1990 2000 2010 2020 2030*Source: Energy Information Administration / Annual Energy Outlook 2007Gas 19%Coal2%60% Electricity» Investments required for electricity infrastructure of $9.6 trillion, or $330 billion a year will be needed toreplace existing and future supply facilities that willbecome obsolete during the projection periodElectricity leads expected growth in <strong>energy</strong> use17 | Investors Day SGKB | September 11, 2008
Electrical segment <strong>–</strong> organic growth with positive marketoutlookApplicationMarketSize*(07, CHFbn)TractionHigh VoltageRotatingmotorsE-loc, HV Energy LVDiesel, loc, Industrial generation, industrialEMU, Light machines, e.g. HV machinesrail/ Tram/ (oil & gas, Turbo (gas, (oil & gas,Metro/ E- chemicals, coal, chemicalsBusmining,nuclear,industry,heavy/ basicindustry,marine,wind, etc.)Low VoltageGenerators Industrial Automotive Consumeretc.), HVHydroshipbuildingindustry, LVwind, etc.)TransformersRepairLV LV Dry Sale ofautomotive consumer transformer materialsmotors (e.g. motors, s (mainly used foralternators, (e.g. HVAC, smaller repairstarters, pumps, industrial (excludingpower seat,hairdryers,transformer “OEM”powerwindow,etc.)etc.)srepairs, e.g.forgenerators0.15 0.42 0.22 0.57 0.35 0.33 0.15 0.16MarketCAGR(07-11)~3.5% 35% ~10% ~14% ~7% ~1% ~3.5% 35% ~10% ~6%Electrical insulation market to grow from CHF 2.3bn to CHF 3.1bn from 07-11 (~7% CAGR)18 | Investors Day SGKB | September 11, 2008
Industrial segment <strong>–</strong> organic growth driven by product focusEquipmentLow VoltagePaperProtectionCableMoulded partsApplication» Wide range ofapplications indifferent industries;mainly semifinishedmaterialsin tubes and rigidlaminates (highand low pressurelaminates» Thermo-set » Components for » Fire-resistant » Moulded partscomposites as ballistic protection cable tapesbased onprerequisite for Dr. in defense industryDuroplastBlades to clean » Components fortechnologycylinders of paper thermal protectionmachines and to(e.g. fire-proofguarantee quality/ machinery parts)smooth operationMarketSize*(07, CHFbn)MarketCAGR(07-11)0.4 0.05 2.2 0.07 1.5~4-6% ~-1/+1% ~4-6% 4% 4%Composite market to grow from CHF ~2.6bn to CHF ~3.2bn from 07-11 (~4-6% CAGR)*Total serviceable market19 | Investors Day SGKB | September 11, 2008
Growth plan strategy set up to outperform the marketDriversGoalPortfolio and PerformanceOperational ExcellenceCorporate culture andresponsibilityDual strategy» Further expansion of core business toreach target margins (2008: double digitsales-and EBIT-growth)» Strong focus on acquisition strategy tobuild portfolio growth:+ 10% sales growth+ 10% EBIT margin+ 20% ROIC (after tax)A comprehensive and logically structured programwith clear goals and clear drivers20 | Investors Day SGKB | September 11, 2008
Operational excellence measures <strong>–</strong> 1H 2008 updateInitiatives FY‘08 Actions 1H‘08Status» Sales organization in Asia strengthened and new accounts penetratedSales push » LV sales driven especially in Asia and US» Increased share in several key accounts and long term supply agreementsFY’08 targetsPricing» Turnaround of very low and negative margin customers implemented» Price levels and discount structures optimizedOperationalexpenditures» Capex and cash flow management improved» R&D activities refocused to improve customer focus and innovation» Processes streamlined and best practice sharing across regions started» Sales growth(CHF 690-740m)Production sitestrategy» Capacity in Asia and Americas increased» Operational excellence initiatives implemented to optimize capacityand output across sites globally» New global and regional focus on copper and mica sourcing andStrategic sourcing management implemented» Lead buyer concept implemented in new organization» EBIT marginimprovement(8-10%)G&A» Organizations on corporate and local level streamlined» Concept for shared service centers developedongoing21 | Investors Day SGKB | September 11, 2008
Executing our strategy <strong>–</strong> 1H 2008 updatePortfolioGrowth as aprocessOperatingimprovement» Integration of Shenzhen Mica and John C. Dolph on track» India minority share (36.75%) will be purchased for 100% ownership ofgroup in August 08» Acquisition strategy according to plan and communicated criteria» 1H‘08 total orders +11%» Electrical order intake and revenues > 9%» Industrial order intake and revenues > 16%» Global revenues growth +12% … above market average growth» Solid group margin expansion to 10% EBIT margin» Accelerated restructuring … improving operations & cost structure» Operating cash flow +367% … driven by working capital improvements22 | Investors Day SGKB | September 11, 2008
Summary» Delivered 1H’08 in line with FY’08 guidance of sales at CHF 690- 740 m andan EBIT margin of 8- 10% … confirmed outlook FY’08» Global markets for power industry show no signs of weakness» Business fundamentals remain strong+ Global growth + Top line higher than market average growth+ Cash flow + Electrical backlog» Operational excellence initiatives on track … for continued profitable growthin operating business» Acquisition strategy for expansion into adjacent markets according to planand communicated criteria to the financial community23 | Investors Day SGKB | September 11, 2008
Q&A24 | Investors Day SGKB | September 11, 2008
Calendar & contact detailsFinancial calendar» 07 April 2009Annual shareholders s meetingContact detailsInvestor relations» Luitpold WüsthofT +41-44-204-3050F +41-44-204-3008investor@vonroll.comwww.vonroll.com25 | Investors Day SGKB | September 11, 2008
DisclaimerThis presentation is based on information currently available tomanagement. The forward-looking statements contained herein couldbe substantially impacted by risks and influences that are notforeseeable at present, so that actual results may vary materiallyfrom those anticipated, expected or projected.26 | Investors Day SGKB | September 11, 2008
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