Company presentation – Full year 2016...Sales 360 340 + 5.9% EBITDA 92 81 + 13.7% EBITDA % 25.5%...
Transcript of Company presentation – Full year 2016...Sales 360 340 + 5.9% EBITDA 92 81 + 13.7% EBITDA % 25.5%...
Company presentation – Full year 2016
SOL Group at a glance• Founded in 1927, is an Italian based multinational company present in 28 countries with more of 3,200 people
employed.
• Two core , separated but integrated and synergic business ar eas: Technical Gas sector (production, applied
research and marketing of pure, medical and industr ial gases) and Home-Care service sector (supply of
medical products and medical assistance services as well as equipment for home care therapy).
• Two recent businesses: Hydro Energy and Biotechnology .• Two recent businesses: Hydro Energy and Biotechnology .
• Strong results and sound balance sheet:
• Over 703 millions € of Total Group revenues in FY2016 (+4.3% FY2015);
• Over 52% of international revenues in 2016 (vs 23.7% in 2000 )
• 6.0% sales CAGR in the last 10 years;
• 23.8% of EBITDA margin in 2016;
• 0.473 of Debt/Equity ratio;
• Dividend policy: 29% average dividend pay out ratio over the last 10 yea rs.
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SOL Group – Geographic Presence
SOL Group is presentin 28 countries
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The Technical Gases Business
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A complete range of industrial gas (both atmospheric and non-atmospheric):medicinal, pure and special gases.
The Technical Gases Business
� Oxygen� Nitrogen� Argon� Hydrogen� Carbon dioxide� Acetylene
Production and distribution of Gases
SOL Group operates in the technical gases business througho ut the brand SOL
� Ultra high purity gases
� Medical gases� Gaseous
helium� Liquid helium
� Electronics gases
� Ammonia� Combustible
gases
Research, design, and construction of:• Industrial gas production facilities,• Plant and equipment for gas utilization• Services and consultancy
Acetylene� Nitrous oxide� Gas mixtures
� Equipment for medical applications� Equipment for cryogenic applications� Deep freezing tunnels� Oxygen burners� Ozonisers
Supply of plants, equipments, services and consulta ncy
Liquid helium� Refrigerating
gases
� Medical air plants� On-site plants� Welding machines
and equipment
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Technical Gases BusinessTechnical gases business (M€)
FY2016 FY2015 YoY
Sales 373 364 + 2.6%
EBITDA 76 68 + 12.2%
EBITDA % 20.3% 18.6% + 1.7%
Investments 57 46 + 25.0%
SOL Group 2016 Total revenues
Technical Gases48.9%
• In 2016 the division invested over the
15% of its revenues.
• 2.8% sales CAGR over the last 10 ys.
282,5296,3
313,5296,3
325,1
363,6373,1
341,8351,7
340,6 344,9
180
230
280
330
380
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lions
Eu
ro
10 years Sales in Technical Gases 2006 - 2016
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Market characteristics
• Resilient and growing market
• Margin protected thanks to high
entry barriers
Technical Gases business
SOL
• High diversification of sales area :
• More than 50,000 clients served;
• More than 90 different
applications for technical gases
• Long term contracts with customers:
Gas pipeline: up to 15 years;• Limited economic cycle demand
dependence of each sales area
• Broad variety and diversification
of end-markets and applications
• Medium/long term contracts
• Local presence as a key factor
Resilience + Growth + Demand stability + Low risk l evel
• Gas pipeline: up to 15 years;
• Compressed gases: up to 5
years;
• Cryogenic liquid gases: up to 3
years
• Strong local presence :
• 25 countries, 38 primary
transformation plants, 56
secondary transformation plants.
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• The uses of specialty gases are expanding in many different context. The market need
for maximum accuracy finds its answer in the world of gases:
• Universities and research centers : highly purified gas carriers for gas
chromatography, calibration equipment and gaseous compounds used as
Technical Gases Business
Specialty and medicinal gases and services
chromatography, calibration equipment and gaseous compounds used as
precursors for chemical synthesis;
• Chemical and pharmaceutical carrier gases and calibration gases in many
activities related to process control;
• Hospitals: medicinal gases for pharmaceutical use, pure products and mixtures
for laboratory and analytical activities as a support to diagnostic processes,
cryomangement services;
• High-tech industry sectors (such as electronics, automotive and renewable
energies) where the use of gases is vital to the innovation of production
processes.
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Primary Production Sites (ASU, …)
• 39 primary production sites :
HYDROGEN - H2
CARBON DIOXYDE - CO2
ACETYLENE - C2H2
NITROUS OXYDE - N2O
AIR SEPARATION / LIQUEFACTION - OXYGEN, NITROGEN, AR GON
India
EIRE
• 39 primary production sites :
units that produce gases
from row materials (electric
energy, atmospheric air,
natural gas, calcium carbide
and ammonium nitrate).
• Max reach-in area is 400 km.
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Morocco
Filling Stations
• 56 secondary transformation sites
(filling station): units that are
dedicated to filling activity, storage
and distribution of gas in general.
Moreover they produce ultra high
purity gases and gas mixtures.
• Max reach-in area is
150km.
The company
established a 50%
joint venture with an
important Indian
partner (that has 25%
of CO2 market share)
for the production and
distribution of
technical gases.EIRE
150km.
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SOL owns a company
in Morocco for the
production and
distribution of
technical gases.
Morocco
The Home Care Business
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The Home Care Business
• In the second half of the eighties, SOL seized a new market div ersification opportunity by
entering into the Home-Care service sector, synergical with the technical gas sector.
• The Group works through the VIVISOL Group, which supplies technologically advanced home
care services to patients for the treatment of chronic patho logies.
• VIVISOL manages the complete patient care from the delivery of medic al equipment and drugs,
performed by specialized home care professionals, to the pro vision of qualified medical and
nursing services, as well as tele-monitoring services and emergency management .nursing services, as well as tele-monitoring services and emergency management .
• The company operates in 12 leading
countries in Europe, in Brazil and
Turkey, with over 60 offices employing
over 1.600 employees and serving more
than 350.000 patients daily.
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0% 20% 40% 60% 80% 100%
2016
2000
1990
1980
49%
80%
98%
100%
51%
20%
2%
0%
Technical Gases Home care
Home Care Business
Home care respiratory assistance
Other home care assistance
Respiratory home-care services concern the home delivery t opatients of oxygen or enriched air and other services such asventilation, diagnosis of pulmonary pathologies and thera pyof respiratory disorders.
� Long term oxygen therapy
� Mechanical ventilation therapy
� Assistance to patients undergoing oxygen therapy during travels ( VIVITRAVEL)
� Diagnosis and treatment of sleep disorder conditions
Home care equipment
The other home-care services include telemedicine service s,artificial nutrition, integrated home-care service in therespiratory framework and in monitoring child respiratorydisorders.
VIVISOL markets also equipment intended for the diagnosisand therapy of the above-mentioned pathologies and itscustomers include hospitals, pharmacists, laboratories,clinics and doctors.
� Home and traveling oxygen therapy equipments
� Ventilation equipment
� Instruments and accessories for diagnosis and aerosol treatment
� Home aids
� Home care artificial nutrition
� Integrated home care services
� Remote monitoring and diagnosis of respiration conditions
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Home Care Business
Hone Care business
(M€)
FY2016 FY2015 YoY
Sales 360 340 + 5.9%
EBITDA 92 81 + 13.7%
EBITDA % 25.5% 23.7% + 1.7%
Investments 41 39 + 5.7%
SOL Group 2016 Total revenues
Home Care51,1 %
• VIVISOL was able to grow 6%
in 2016, with an EBITDA
margin higher than 25%.
• The Group is continuing to
invest significantly in this
business.
121,9142,7
160,3182,5
213,4
339,8360,0
281,2312,8
238,8264,9
0
50
100
150
200
250
300
350
400
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lion
s Eu
ro
10 years Sales in Home Care 2006 - 2016
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Home Care Business
Key growth drivers:
• Aging population – demographics
• Restructuring of Health Care Systems through
de-hospitalization and home care
• Developments in portable medical technologies
• Better quality of life for Patients at home
• Increasing of respiratory and chronic pathologies
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Home Care - VIVISOL branchesVIVISOL is present in 12
leading countries in
Europe, Brazil and Turkey
with over 60 branches.
Turkey
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Home Care Business
VIVISOL Belgium - Lessines
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The Hydro Energy Business
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• Leveraging on its core business
development in the Eastern Europe , SOL
entered into the Hydro-Energy sector.
• The industrial gas sector, is one of the
most energy intensive one. This
characteristic supported the Group
decision to invest in the Hydro-Energy
The Hydro Energy Business
sector in order to enjoy synergies with its
Industrial Gases Business.
Currently the company owns and operates 5
hydro-electric power plants in Slovenia
(about 50 Million KWh/year), 2 plants in
Albania (about 25 Million KWh/year); 4
plants in Macedonia (about 35 Million
KWh/year); 4 plants (one is under
construction) in Bosnia (about 6 Million
KWh/year).
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The Biotechnology Business
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• SOL Group is active in supplying biotechnological equipment
and services to hospitals, clinics and laboratories (cryobanks,
cellfactories, cryomanagement, cryotransportation)
• With BIOTECHSOL is active in the area of tissue and stem cells
banking and biological tissues transportation.
The Biotechnology Business
• With the acquisition of the majority of DIATHEVA, SOL Group is
active in drug discovery and drug delivery (recombinant
monoclonal antibodies), molecular diagnostic, GMP produc tion
of recombinant proteins
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400
450
500
550
600
650
700
750
SOL Group: 30 years Deflated Turnover (1986-2016)
2016=703.4 (x1,5)
0
50
100
150
200
250
300
350
1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016
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1986= 125.0
1996=219.7 (x1.8)
2006=466.0 (x2.1)
87,497,1 99,4
109,7123,6 130,4 132,2 131,7
142,9 148,4
167,6
22,2%22,7%
21,6%
23,7% 23,8%
22,7%
23,8%23,5%
22,1%22,5% 22,0%
0
20
40
60
80
100
120
140
160
180
Mil
lion
s Eu
ro
15%
20%
25%
30%
% o
n s
ale
s
393,6427,1
460,0 462,6
518,9
555,7583,0 595,4
636,4
674,2703,4
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
Mil
lion
s Eu
ro
SOL Group: consolidated results (2006 – 2016)
EBITDASales
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
15%
EBITDA % on Sales
35,2
46,051,5 49,9
59,6
80,9
65,661,953,656,559,6
9,0%
10,8%11,2%
10,8%
11,5%
9,7%
9,0%
9,7%
11,5%
9,7%
10,7%
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lion
s Eu
ro
0%
2%
4%
6%
8%
10%
12%
% o
n s
ale
s
EBIT % on Sales
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
EBIT Cash Flow
60,9
75,787,6 81,7
92,6 97,0 98,592,4
106,2112,9
127,5
15,5%
17,7%
19,0%
17,7% 17,8%16,9%
18,1%17,5%
15,5%
16,7%16,7%
0
20
40
60
80
100
120
140
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lion
s Eu
ro
0%
5%
10%
15%
20%
% o
n s
ale
s
Cash Flow % on Sales
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0,120
0,150
0,1100,100 0,120
0,140
0,160
6,5%
7,8%
5,6%
6,3%
5,1%
6,5%
5,1%5,8%
6%
7%
8%
10 years net profit and dividend growth
NET PROFIT DPS - Dividend Yield
0,068
0,081 0,081 0,084
0,0950,1000,100
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0,000
0,020
0,040
0,060
0,080
0,1004,5%
5,1%4,8%
3,8%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0%
1%
2%
3%
4%
5%
% o
n s
ale
s
Net profit CAGR + 10.0% DPS CAGR + 8.2%
10Y AVERAGE PAY-OUT RATIO 29%
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International Expansion
SOL is focused on its international expansion:
• The Group started its operations in
Italy where it currently has 15
primary production sites.300
350
400
10 years sales outside Italy 2006-2016
• In 2016 the Group is present in 28
countries.
• In 2016 the non-domestic sales
exceeded the Italian sales
• (52.9% / 47.1%).
134,0151,1
172,2 186,6217,3
349,3372,1
286,3322,0
246,2272,8
0
50
100
150
200
250
300
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lion
s Eu
ro
25
(Excluded sales in India)
Capital Expenditures (2006-2016)
High annual investments
• The Group every year invest
about 15% of its revenues;
• The Sol business require a high
level of investments for long 13,5%
16,1%
13,7%
12,0%
14,0%
12,6%
14,8%15,2%16,2%
14,7%15,4%
75
100
Mil
lion
s Eu
ro 15%
20%
25%
% o
n s
ale
s
10 years of investments on sales 2006-2016
level of investments for long
term growth options;
• In 2016 almost the 50% of the
Group investments was made
outside Italy.
53,3
69,274,3
63,4 62,1
84,7 85,491,8 94,5
84,7
98,4
12,0%12,6%
0
25
50
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mil
lion
s Eu
ro
0%
5%
10% % o
n s
ale
s
Capex % on sales
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Shareholding information and market price
Outstanding Shares
• 90.700.000 ordinary shares
• par value: 0,52
Shareholding Structure
• Fumagalli and Annoni
families 60%
• Main Institutional Investors:
• Tweedy Brown 7,346%
• J O Hambro 5,072%
• Allianz 5,072%Source: Borsa Italiana
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