Borsa I taliana I taliana STAR segm ent STAR segm ent Borsa - - PowerPoint PPT Presentation
Borsa I taliana I taliana STAR segm ent STAR segm ent Borsa PRI MA I NDUSTRI E PRI MA I NDUSTRI E ACQUI SI TI ON OF FI NN - - POW ER POW ER ACQUI SI TI ON OF FI NN Transaction overview Transaction overview Analyst presentation
Analyst presentation – Milan – February 1 9 , 2 0 0 8
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Prim a I ndustrie: A Decade of Success
1999: IPO on Milan Stock Exchange 2000: Acquisition of Convergent 2001: Acquisition of Laserdyne 2003: Investment in Shanghai Unity Prima 2005: Acquisition of MATRA (former German distributor) 2006: Acquisition of MLTA (electronics) 2007: Acquisition of Osai (electronics) 2008: Acquisition of Finn-Power Milestones + 280% Revenues (+ 16% cagr) + 250% Ebitda (+ 14% cagr) + 30x Net Income (+ 47% cagr) + 230% Price per share since IPO (+ 18% cagr) 1 9 9 8 - 2 0 0 7 Grow th
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Order Acquisition Trend
Order Acquisition (€m)
10.000 15.000 20.000 25.000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2004 2005 2006 2007
Order Acquisition and Backlog (€m)
40.000 60.000 80.000 100.000 120.000 140.000 160.000 180.000 200.000
Backlog as of December Yearly Order Acquisition 2004 2005 2006 2007
C A G R + 2 1 % C A G R + 2 2 %
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2 0 0 7 Sales and Profitability
1 3 .2 6 ,1 9 9 9 .8 5 ,7 5 4 9 .3 1 3 ,7 0 6 7 .7 1 3 ,5 3 5 NET PROFI T 1 5 .5 7 ,2 8 1 1 4 .0 8 ,2 1 0 1 1 .9 1 7 ,5 7 7 1 2 .9 2 2 ,7 5 2 EBT 1 6 .1 7 ,5 8 0 1 4 .1 8 ,2 4 1 1 2 .5 1 8 ,4 6 7 1 3 .3 2 3 ,4 3 2 EBI T 1 6 .9 7 ,9 4 4 1 4 .9 8 ,7 2 2 1 3 .4 1 9 ,7 9 7 1 4 .1 2 4 ,9 3 4 EBI TDA % on sales K€ % on sales K€ % on sales K€ % on sales K€ 4 Q0 6 4 Q0 7 3 1 / 1 2 / 0 6 3 1 / 1 2 / 0 7 100.0 47,090 100.0 58,590 100.0 147,569 100.0 176,329 TOTAL 55,568 63,789 BACKLOG 9.5 4,514 14.0 8,229 9.5 13,971 11.9 20,897 ASIA & ROW 16.7 7,850 17.8 10,414 19.9 29,412 16.9 26,762 NORTH AMERICA 47.5 22.353 46.1 27,016 46.4 68,400 46.9 82,774 EUROPE 26.3 12,374 22.1 12,931 24.2 35,786 24.3 42,896 ITALY % K€ % K€ % K€ % K€ 4Q06 4Q07 31/ 12/ 06 31/ 12/ 07
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Com bined Entity in pills
and Am ada)
shearing, bending
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Rationale of Acquisition Group is better positioned to play a prim ary role in the global high tech m achinery sector Finn-Pow er is one of few com panies in the w orld w ith sim ilar size as Prim a I ndustrie and high product com plem entarity Acquisition w idens the reference m arket and the grow th
Group plays in the league of the best com petition w ith com parable product portfolio and reach € 1 0 m yearly synergies of pre-tax profit at steady-state € 1 2 0 m + tax shield
I MPROVED GROW TH POTENTI AL + 4 4 % EPS ACCRETI ON I N 2 0 0 7 COMBI NED
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The Acquisition
* In 2011 refinanced, if necessary, by a further € 25m approved credit facility.
€ 1 7 0 m Enterprise Value
10m Finn Power Debt not refinanced + € 9m Finn-Power Cash € 1 6 9 m Uses € 64m 8-year bullet loan € 49m 7-year amortizing loan € 25m 3-year deferred payment * € 25m 1-year bridge-to-equity € 6m Prima Industrie Cash € 1 6 9 m Sources € 20m Working capital facility
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Prim a I ndustrie products & applications 2 D laser cutting 3 D laser cutting Laser drilling Laser w elding Leading player in the industrial laser m achine tool sector
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Finn-Pow er products & applications Punching Punch/ Shearing Bending System s
X, C, E Series Punch Press SG Shear Genius SB Shear Brilliance BC, EBe Panel Bending Press Brakes ( E-Series) LB, LP Laser Brilliance Night Train
Laser cutting Leading innovator in sheet m etal fabrication system s
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Grow th & Profitability
50 100 150 200 250 2003 2004 2005 2006 2007
5 10 15 20 25 2003 2004 2005 2006 2007
PRIMA INDUSTRIE FINN POWER Revenues ( € m ) Ebitda ( € m )
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After sales service 12% Electronics 18% 3D Laser 22% Laser sources 3% 2D laser 45%
Product breakdow n
FI NN-POW ER – 2 4 0 M€ PRI MA I NDUSTRI E – 1 7 6 M€
After sales service 15% Laser Com bi 10% Punching 22,5% Bending 21,5% 2D Laser 7% Punching/ S hearing 24%
Proform a Com bined The product portfolio has w idened significantly
Punching/ S hearing 14% Bending 12% After sales service 14% Punching 13% Electronics 8% 3D Laser 9% Laser sources 1% 2D Laser& Laser com bi 29% Note: Analysis as of 2007.
MACHI NERY BUSI NESS 3 9 % LASER BUSI NESS 3 9 %
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R.o.W. 10% I taly 20% EU 38% North Am erica 19% Eastern Europe 13%
Other 9% Scandinavia 11% Germ any 7% UK 2% France 3% Spain 6%
Geographical sales breakdow n Proform a Com bined
Note: Analysis as of 2007.
(* )
(* ) = including Russia and Turkey
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PRODUCT RANGE LOCATI ON FACI LI TI ES Laser generators (JV) Wuhan – China Laser systems (JV) Shanghai – China Special laser systems (Laserdyne) Champlin (MN) – USA Laser generators (Convergent) Chicopee (MA) – USA Automation Vilppula – Finland Punching, Punch/ shear, punch/ laser Kauhava – Finland CNC & Motion Control Barone (TO) – Italy DOTS Electronics Moncalieri (TO) – Italy Panel Benders Cologna (VR) – Italy 2D & 3D Laser systems Collegno (TO) – Italy I TALY FI NLAND USA CHI NA
Manufacturing facilities & Product range
14 10% 10% 80% TECHNOLOGY END MARKET TYPI CAL CUSTOMER
ELECTRONICS
AUTOMATION,
3D LASER
2D LASER, PUNCHING, PUNCH/ SHEARING, PANEL BENDING, PRESS BRAKES, LASER COMBI
… ..
Reference End-m arkets Highly diversified end-m arkets and sectors Low er exposure to cyclical sectors
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PRIMA ELECTRONICS Moncalieri (TO)-Italy PRIMA INDUSTRIE S.p.A. CORPORATE
CONVERGENT LASERS Chicopee (MA) PRIMA NORTH AMERICA LASERDYNE SYSTEMS Champlin (MN)
OSAI Barone C.se (TO) - Italy
ELECTRONICS SEGMENT LASER SEGMENT FINN-POWER Kauhava-Finland
CORPORATE FUNCTIONS (Finance, HR, IT, Integr.office)
2D lasers AMERICAN OPERATIONS PRIMA INDUSTRIE Collegno (TO)-Italy
PUNCHING BENDING SHEARING
3D lasers ASIAN OPERATIONS
OVL CONVERGENT Wuhan-China UNITY PRIMA Shanghai-China
Group Sectors / Operations
AUTOMATION
MACHINERY SEGMENT
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Direct presence in 1 8 m ajor Markets
I TALY
UK
FRANCE
SPAI N
SW I TZERLAND
GERMANY
BELGI UM
POLAND
FI NLAND
SW EDEN
USA
CANADA
CHI NA
JAPAN
I NDI A
U.A.E.
RUSSI A
= Manufacturing, sales, service = Sales, service
BRAZI L
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Distributors in 3 5 + additional countries
= Manufacturing, sales, service = Sales, service = Distributors
18 Finland 30% Other 12% USA 14% Other I taly 14% Turin ( I taly) 30%
Germ any 3 % Spain 3 % France 1 .5 % Belgium 1 .5 % UK 1 % Canada 1 % R.o.W . 1 %
TOTAL ~ 1 ,7 0 0 SUBTOTAL ~ 2 0 0
SW EDEN POLAND SW I TZERLAND CHI NA ( * ) RUSSI A I NDI A BRAZI L ( * ) = not including JVs em ployees: Shenyang: 3 2 em ployees
OVL Conv: 3 0 em ployees
Com bined Entity Em ployees distribution
19 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0,0 0,1 1,0 10,0 Relative Market Share Ebitda Margin
I m proved strategic positioning Larger size and higher m arket share m ean higher profitability and stability during cycle
Trumpf Amada Competitor 1 Competitor 2 Competitor 3 Finn-Pow er Combined w/ o synergies Com bined w ith synergies
Note: Relative Market Share calculated as Revenues on Leader Revenues. Relative Market Share and Ebitda Margin based on last available accounts (Prima Industrie, Finn-Power and Combined as of December 2007).
Prim a I ndustrie
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Steady-State Synergies
Brand recognition enhancement Strengthening and integration of the worldwide sales & service network Leverage of Prima Industrie network for combi-laser products Higher critical mass allows more efficient investment in untapped markets (India, Turkey, Middle East, Korea) Sales Synergies € 5 -6 m ( 5 0 -6 0 % of Synergies) Laser cross-sourcing Electronics cross-sourcing Exhibition optimization Rationalization of sales network G&A rationalization Cost Synergies € 4 -5 m ( 4 0 -5 0 % of Synergies) at pre-tax level
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Tax Benefits
Up to € 3 2 m Deferred Tax Assets
€ 6 5 m goodw ill am ortization until 2 0 1 3 ( € 1 1 m per year) in Finland Tax loss carry forw ard of € 4 4 m in Finland ( until 2 0 1 6 ) and of € 1 4 m in I taly ( of w hich € 9 m until 2 0 1 1 and € 5 m w ith no expiring date) Profits generated in low er ordinary tax rate countries ( i.e. Finland) Optim ized capital structure creates value for shareholders
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Com bined Entity Financial Highlights
2 0 0 7 Unaudited * 144.0 24.0 Assum ing Acquisition and € 2 5 m Rights I ssue as of Jan 1 , 2 0 0 7 43.6 EBI TA 23.0
I ncom e * * 48.5 EBI TDA 169.0 NFP at Dec 2 0 0 7 416.3 Sales Assum ing Acquisition as of Jan 1 , 2 0 0 7
€ m illion
* Based on Prima Industrie IFRS financials and Finn-Power Local Gaap (preliminary accounts). * * Net Income adjusted for goodwill amortization and impairment charges.
Com bined Entity
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Accretion Analysis
1.30 2.05 Accretion on Standalone ( € ) 2 0 0 7 Unaudited * + 44% 4.25 24.0 Assum ing Acquisition and € 2 5 m Rights I ssue as of Jan 1 , 2 0 0 7 4.99 EPS ( € ) * * * + 70% Accretion on Standalone ( % ) 23.0
( € m ) * * Assum ing Acquisition as of Jan 1 , 2 0 0 7
Although € 2 5 m Rights I ssue, the Acquisition is 4 4 % accretive on 2 0 0 7 EPS w / o synergies
* Based on Prima Industrie IFRS financials and Finn-Power Local Gaap (preliminary accounts). * * Net Income adjusted for goodwill amortization and impairment charges. * * * Assuming a € 25m Rights Issue at current market price (€ 24 per share).
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Com parables Group Analysis I n spite of a significant discount on com parables’ P/ E, the acquisition is at a reasonable prem ium on sheet m etal peer group’s Ebitda in light of:
5 10 15 EV / 2007 Ebitda P / E 2007 Sheet metal companies Investment goods Nordic companies Finn-Power
(22% ) (17% ) Investment goods Nordic companies (21% ) P / E 2 0 0 7 26% Sheet metal companies EV / Ebitda Prem ium / ( discount) on:
Note: Finn-Power earnings adjusted for goodwill amortization and impairment charges (local Gaap, preliminary accounts).
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CARBONATO GI ANFRANCO (& fam ily) 4,64% PEI RETTI DOMENI CO (& fam ily) 4,52% OBJECTI F SMALL CAPS EURO SI CAV 2,16% OTHER MANAGEMENT 3,79% LESTRI HOLDI NG B.V. 4,67% HELI OS MANAGEMENT SA 6,85% ERSTE I NTERNATI ONAL HOLDI NG S.A. 28,03% MARKET 45,34%
Shareholders & Share trend Analysts coverage
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