PKC Group Oyj Q2/2009 Investor Presentation 6 of August 2009 - - PowerPoint PPT Presentation

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PKC Group Oyj Q2/2009 Investor Presentation 6 of August 2009 - - PowerPoint PPT Presentation

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PKC Group Oyj Q2/2009 Investor Presentation 6 of August 2009 1-6/09 Highlights Net sales amounted to EUR 99.6 million (EUR 173.7 million), down 42.7% compared to 1-6/08. The result is burdened by expenses of EUR 4.8 million resulting

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SLIDE 1

PKC Group Oyj Q2/2009 Investor Presentation 6 of August 2009

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SLIDE 2

1-6/09 Highlights

Net sales amounted to EUR 99.6 million (EUR 173.7 million), down 42.7% compared to 1-6/08. The result is burdened by expenses of EUR 4.8 million resulting from rationalisation measures. Operating profit totalled EUR 5.5 million negative (EUR 19.0 million), accounting for -5.5% (10.9%) of net sales. Profit for the report period totalled EUR 7.4 million negative (EUR 12.1 million positive). Earnings per share were EUR 0.45 negative (EUR 0.67 positive). Cash flow from operating activities was EUR 29.8 million.

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SLIDE 3

Market Development of Customer Sectors

The continuing decline in production volumes in our customer sectors, particularly in the heavy commercial vehicle industry, led to a negative operating profit during the first half. The order bookings and delivery volumes for commercial vehicles exceeded the production volumes during the second quarter. This indicates that the production volumes should not further decrease from the currently exceptionally low level. Continued rationalisation measures and inputs in R&D puts trust in the continuous improvement of the PKC competitive position. Due to the current market situation, the supplier base in the commercial vehicle industry is going through radical change, in turn

  • pening up new possibilities for PKC.
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SLIDE 4

Market Development of Customer Sectors

The deliveries and new orders of heavy trucks saw a very sharp decline during the first half of the year in all of our market areas in comparison to the same period a year earlier. In Europe, our main market, the volume of deliveries and the value

  • f the new orders received by our customers reached only a third of

what it had been a year earlier. In South America, deliveries fell by a third but new orders fell by half. Our customers succeeded in reducing their stocks of finished trucks, causing the production volumes of wiring harnesses to fall behind from the truck delivery volumes.

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SLIDE 5

Market Development of Customer Sectors

PKC deliveries for the truck industry only decreased by approximately 43%, which was due to the increased market share. Deliveries for the machinery industry in Europe reached approximately one-third compared to the previous year. The production and deliveries of recreational products were halved in North America. PKC is participating in several competitive bid processes concerning new customer relationships. Success in these processes might lead to new long-term delivery relationships and the subsequent strengthening of the company’s market position.

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SLIDE 6

Market Development of Customer Sectors

With the exception of the Asian markets, industrial investments fell significantly early on in the year, reducing the Group’s industrial electronics deliveries by approximately 30%.

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SLIDE 7

Key Figures, 1-6/09

Net sales (EUR 1,000) EBIT (EUR 1,000) % of net sales Net result (EUR 1,000) EPS, (EUR) ROI, % Net debt (EUR million) Gearing, % Average number

  • f employees
  • 42.7
  • 129.5
  • 161.1
  • 7.8
  • 15.4

1-6/08 Change % 99 582

  • 5 500
  • 5.5
  • 7 368
  • 0.41
  • 0.8

33.5 49.1 4768 1-6/09 173 661 18 968 10.9 12 053 0.67 23.9 36.3 42.0 5 638 1-12/08 311 713 21 039 6.7 5 567 0.31 14.5 59.5 75.7 5 588

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SLIDE 8

Key Figures, 1-6/09

Wiring Harnesses Net sales (EUR 1,000) EBIT (EUR 1,000) % of net sales Electronics Net sales (EUR 1,000) EBIT (EUR 1,000) % of net sales 138 746 12 104 8.7 35 513 6 863 19.6

  • 46.0
  • 156.8
  • 30.2
  • 79.9

1-6/08 Change % 246 680 9 744 4.0 65 897 11 295 17.3 1-12/08 74 872

  • 6 876
  • 9.2

24 797 1 377 5.6 1-6/09

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SLIDE 9

Turnover

53.75 85.09 69.97 45.83 88.57 73.67 73.37 66.93 78.08 64.68 50 100 150 200 250 300 350 2007 2008 2009 Q4 Q3 Q2 Q1

EUR million

  • 42.7%
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SLIDE 10

20.4 30.5 52.2 90.0 9.7 18.6 9.7 23.8 7.6 10.8 20 40 60 80 100 120 140 160 180 200 1-6/08 1-6/09 Other countries South America North America Other Europe Finland

Net Sales by Geographical Segments

EUR million

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SLIDE 11

Operating Profit

0.1 9.3 6.5

  • 5.6

9.6 7.3 6.0 7.6

  • 3.9

6.8

  • 8
  • 6
  • 4
  • 2

2 4 6 8 10 12 2007 2008 2009 Q1 Q2 Q3 Q4

EUR million

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SLIDE 12

Equity Ratio and Gearing

10 20 30 40 50 60 70 80 2007 2008 Q2/2008 Q2/2009 Equity ratio Gearing

%

42.5 49.1 Q2/09 2008 Equity ratio, % Gearing, % 41.9 75.7 Q2/08 48.6 42.0

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SLIDE 13

Key Figures

%

Return on investment (ROI) Return on equity (ROE)

%

17 14.5 23.9

  • 0.8
  • 5

5 10 15 20 25 30

2007 2008 Q2/2008 Q2/2009

22.6 6.9 28.4

  • 20.1
  • 30
  • 20
  • 10

10 20 30 40

2007 2008 Q2/2008 Q2/2009

6

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SLIDE 14

Key Figures

Cash flow after investment

EUR million

  • 10
  • 5

5 10 15 20 25 30 2007 2008 Q2/2008 Q2/2009

  • 6.2

16.3 0.2

5 10 15 20 25 30 2007 2008 Q2/2008 Q2/2009

Cash flow after investment, but before acquisitions

EUR million 16.3 0.2 15.4 26.9 27.4

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SLIDE 15

10.8 5.8 2.0 21.6

5 10 15 20 25 30

2007 2008 Q2/2009 Replacemet investments Acquisition

Key Figures

EUR million

Capex

0.2 0.3

  • 0.2

0.3 0.4

  • 0.3

0.3 0.2 0.2

  • 0.5
  • 0.6
  • 0.4
  • 0.2

0.0 0.2 0.4 0.6 2007 2008 2009 Q1 Q2 Q3 Q4 EUR

Earnings per share (EPS)

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SLIDE 16

Key Figures, 1-6/09

Net sales, EUR 1,000 Operating profit, EUR 1,000 % of net sales Profit before taxes, EUR 1,000 % of net sales Profit for the report period , EUR 1,000 % of net sales Return on equity (ROE), % Return on investment (ROI), % Gearing, % Equity ratio , % Current ratio Gross capital expenditure, EUR 1,000 % of net sales R&D expenditures , EUR 1,000 % of net sales Personnel average 99 582

  • 5 500
  • 5.5
  • 6 417
  • 6.4
  • 7 368
  • 7.4
  • 20.1
  • 0.8

49.1 42.5 1.9 2 000 2.0 2 884 2.9 4768 1-6/09 173 661 18 968 10.9 17 117 9.9 11 939 6.9 28.4 23.9 42.0 48.6 1.8 3 890 2.2 3 240 1.9 5 638 1-6/08 1-12/08 311 713 21 039 6.7 15 228 4.9 5 519 1.8 6.9 14.5 75.7 41.9 1.9 27 426 8.8 5 812 1.9 5 588

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SLIDE 17

Operative Expenses, 1-6/09

Direct staff expenses Indirect staff expenses Staff expenses total Bonus (social costs included) Other operating expenses 15 591 12 694 28 285 331 12 993 1-6/09 21 771 18 614 40 386 1 411 16 094 1-6/08 Change %

  • 28.4
  • 31.8
  • 30.0
  • 76.6
  • 19.3

(1,000 EUR) 1-6/09 12 546 12 694 25 240 331 11 556 Without PKC Poland

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SLIDE 18

Wiring Harnesses

Net sales during first six month amounted to EUR 74.9 million (EUR 138.7 million) and was 46.0% less than in 1-6/08. The segment’s share of consolidated net sales was 75.2% (79.8%). Operating profit was EUR 6.9 million negative (EUR 12.1 million positive), equivalent to -9.2% negative (8.7% positive) of the segment’s net sales. The result is burdened by expenses of EUR 4.8 million resulting from rationalisation measures.

41.7 69.3 58.1 33.2 69.3 59.8 57.0 50.2 50.8 62.0 50 100 150 200 250 300 2007 2008 2009 Q4 Q3 Q2 Q1

  • 0.6

7.0 4.9

  • 6.3

5.1 5.6 3.9 3.3

  • 6.2

4.6

  • 8
  • 6
  • 4
  • 2

2 4 6 8 2007 2008 2009 Q1 Q2 Q3 Q4

Turnover

MEur

Operating Profit

MEur

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SLIDE 19

Source: Volvo.com AB Volvo, First Quarter 2009

Heavy-duty Truck Market – Europe

(EU Members + Switzerland and Norway)

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SLIDE 20

Source: Volvo.com AB Volvo, First Quarter 2009

Heavy-duty Truck Market - North America

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SLIDE 21

Scania, Orders Approaching Deliveries

Source: Scania.com

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SLIDE 22

Scania, Order Bookings, Trucks

Quarterly Data, Units by Geographic Area

Western Europe Central and Eastern Europe Latin America Asia Other Markets Total 2008 19 684 7 473 9 026 4 835 2 825 43 843 Q1/09 1 856 230 1 659 585 453 4 783

Source: Scania.com

Q4/08 1 921

  • 665
  • 724
  • 341

377 568 Q3/08 3 077 1 907 3 099 1 046 798 9 927 Q2/08 6 209 2 518 3 777 2 098 615 15 217 Q1/08 8 477 3 713 2 874 2 032 1 035 18 131 Q2/09 3 001 416 1 563 1 263 661 6 904

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SLIDE 23

Scania, Trucks Delivered

Quarterly Data, Units by Geographic Area

Western Europe Central and Eastern Europe Latin America Asia Other Markets Total

Source: Scania.com

Q2/09 3 723 549 1 778 947 684 7 681 Q1/09 5 131 861 2 113 1 237 595 9 937 2008 34 065 12 574 10 775 6 721 2 381 66 516 Q4/08 8 076 1 987 3 194 1 851 838 15 946 Q3/08 6 931 2 942 2 412 1 613 558 14 456 Q2/08 9 646 3 949 2 903 1 489 557 18 544 Q1/08 9 412 3 696 2 266 1 768 428 17 570

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SLIDE 24

Volvo Trucks, Deliveries

Europe Western Europe Eastern Europe North America South America Asia Middle East Other Asia Other markets Total Volvo Trucks Q1/08 16 819 12 503 4 316 3 375 2 630 2 635 1 645 990 1 069 26 528 Change in %

  • 62
  • 54
  • 85
  • 37
  • 28
  • 23
  • 7
  • 48

24

  • 48

Q1/09 6 331 5 691 640 2 125 1 886 2 041 1 524 517 1 324 13 707

Source: Volvo.com

Q2/09 4 656 3 939 717 1 483 2 424 743 227 516 998 10 304 Q2/08 16 462 11 095 5 367 4 754 3 384 2 745 1 619 1 126 1 325 28 670 Change in %

  • 72
  • 64
  • 87
  • 69
  • 28
  • 73
  • 86
  • 54
  • 25
  • 64
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SLIDE 25

25 379 20 329 16 830 23 401 18 131 15 217 9 927 568 4 783 6 904 5 000 10 000 15 000 20 000 25 000 30 000 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Orders Deliveries Source: Scania.com

Scania’s Global Net Orders

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SLIDE 26

44 888 43 703 41 970 41 403 21 948 7 494 8 980 115

  • 1 549

26 270 47 911

  • 10 000

10 000 20 000 30 000 40 000 50 000 60 000 Q4/06 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 pcs Source: Volvo.com

Volvo Group’s Net Truck Orders in Europe

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SLIDE 27

Volvo Group Net Order Intake per Market

Number of trucks Europe North America South America Asia Other markets Total Q2/08 21 948 5 693 4 382 18 110 3 658 53 791 Change in %

  • 59
  • 43
  • 32
  • 56
  • 4
  • 51

Q1/09* 7 494 2 869 1 731 5 712 2 377 20 183 Q2/09 8 980 3 257 2 998 7 884 3 505 26 624 Q1/08 26 270 5 680 3 482 19 260 3 772 58 464 Change in %

  • 71
  • 49
  • 50
  • 70
  • 37
  • 65

Source: Volvo.com * 50% of VECV, the joint venture with Eicher Motor Limited, was consolidated in the Volvo Group on August 1, 2008.

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SLIDE 28

MAN, Order Intake

Units Commercial Vehicles Trucks Buses MAN Latin America H1/08 57 725 54 227 3498 Change in %

  • 65
  • 68
  • 27

Q2/09 9 240 8 012 1 228 10 939 H1/09 19 940 17 390 2 550 10 939 Q2/08 22 917 20 838 2 079 Change in %

  • 60
  • 62
  • 41

Source: www.man-mn.com

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SLIDE 29

MAN, Deliveries

Units Commercial Vehicles Trucks Buses MAN Latin America H1/08 53 307 50 070 3 237 Change in %

  • 54
  • 57
  • 6

Q2/09 12 139 10 375 1 764 10 939 H1/09 24 346 21 296 3 050 10 939 Q2/08 28 201 26 316 1 885 Change in %

  • 57
  • 61
  • 6

Source: www.man-mn.com

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SLIDE 30

Summary

Change in Order Bookings MAN SCANIA VOLVO Change in Truck Deliveries MAN SCANIA VOLVO Q2/08 to Q2/09

  • 60%
  • 55%
  • 51%
  • 61%
  • 59%
  • 64%

H1/08 to H1/09

  • 65%
  • 65%
  • 58%
  • 57%
  • 51%
  • 56%
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SLIDE 31

Electronics

Net sales during first six month amounted to EUR 24.8 million (EUR 35.0 million) and was 30.2% less than in 1-6/08. The segment’s share of consolidated net sales was 24.9% (20.2%). Operating profit was EUR 1.4 million (EUR 6.9 million), equivalent to 5.6% (19.6%) of the segment’s net sales.

12.1 15.8 11.9 12.7 19.3 13.9 16.4 16.8 13.9 16.1 10 20 30 40 50 60 70 2007 2008 2009 Q4 Q3 Q2 Q1 0.7 2.3 1.5 0.7 4.5 1.8 2.1 4.3 2.3 2.2 0,5 1 1,5 2 2,5 3 3,5 4 4,5 5 2007 2008 2009 Q1 Q2 Q3 Q4

Turnover EUR million Operating Profit EUR million

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SLIDE 32

Outlook for the Future

It is currently difficult to estimate how long the economic downturn will last. We estimate that the low predictability in the demand in commercial vehicle industry and general uncertainty of financing will keep the demand for wiring harnesses exceptionally low. We also estimate that demand for electronics design and manufacturing services in the market will weaken compared to last year.

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SLIDE 33

Outlook for the Future

We predict that the full-year net sales will decrease substantially and for operating profit to be negative. The full year estimation contains significantly more uncertainty than usual due to the customer segments’ exceptionally short

  • utlooks.

Thanks to the low need for capital expenditures and decrease

  • f working capital, cash flows after investments are expected

to be positive. PKC's balance sheet, liquidity and good customer relationships all enable improvement in PKC's relative competitive position.

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SLIDE 34

CVG Stoneridge

Leoni Delphi Yazaki Sumitomo Lear

Scale advantage Global services High Volumes R&D resources Strong sourcing Flexibility

PKC Group

Too big for some customers Less flexibility Systems for high volume Only local service Less resources and knowledge in R&D

Durapart Rying TCA Segu

TYCO

PKC Group Market Position in Wiring Harness Business

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SLIDE 35

Personnel at the end of Q2

Totally 4 320 employees

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SLIDE 36

Shareholders 30 June, 2009

AS Harju Elekter

8.3

Takanen Jorma

7.2

Ilmarinen Mutual Pension Insurance Company

3.7

OP-Finland Small Firms Fund

2.5

Tapiola Mutual Pension Insurance Company

2.3

Laakkonen Mikko

2.1

Ravaska Veikko

1.9

Special Mutual Fund Avenir (non-UCITS)

1.7

Eestilä Matti

1.7

Takanen Harri

1.6

Nordea Nordic Small Cap Fund

1.4

Suutari Harri

1.3

Svenska Litteratursällskapet i Finland r.f.

1.1

Metsä-Simola Olli

0.8

OP-Nordic Small Firm Fund

0.8 Total 38.4%

Major shareholders Distribution of share ownership

7 640 owners

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SLIDE 37

Thank you! www.pkcgroup.com