Tognum Investor Presentation September...
Transcript of Tognum Investor Presentation September...
Tognum Investor PresentationSeptember 2010
Christof von BranconiExecutive Vice President and COO Business Unit Onsite Energy & Components
Munich, September 22, 2010
Slide 2 | Tognum Investor Presentation | September 2010
Legal disclaimer
This presentation is for information purposes only and does not constitute an offer to sell or a solicitation for an offer to buy any securities. The shares of Tognum AG will not be registered under the U.S. Securities Act of 1933.
This presentation includes certain forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes", "estimates", "anticipates", "expects", "assumes", "predicts", "intends", "may", "will" or "should", and similar expressions. Such forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such forward-looking statements do not represent any guarantees of future performance. Tognum's actual results of operations, including its financial condition and profitability as well as the development of the general economic conditions in which it operates, may differ materially from (and be more negative than) those made in or suggested by the forward-looking statements contained in this presentation.
This presentation also includes certain market and market share data. To our knowledge, there is no single, comprehensive source that reliably describes the overall market and its sub-markets or the competitive situation in the market breakdown presented herein. Unless indicated otherwise, all the statements herein concerning the market and competition are therefore based on our own estimates, some of which have in turn been derived from a variety of sources. It is possible that the actual market conditions and competition may differ from the situation described herein, or that other market participants may come up with different estimates of the market and competitive conditions.
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Business model & outlook
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Tognum AGIntroduction
IndustrialMarine Oil&Gas After Sales Onsite Energy Systems
Engines Onsite Energy & Components
ComponentsDefense
Tognum sets the standard as the preferred partner for the best solutions in power and propulsion
- “Pure Play“ in high-speed and high-performance diesel engines for off-highway applications- Customised solutions - complete propulsion systems - decentralised energy systems
Slide 5 | Tognum Investor Presentation | September 2010
Tognum AG Investment proposition
Reliable Foundation
Growth Prospects
– Diverse off-highway end markets– 100 years of customer relationships and technology leadership– Sales & distribution network in 130 countries, with over 1,200 service points
Financial Strength
Operational Leadership
Reliable Management
– Management aligned with shareholder interests – Strong track record– High level of experience and qualification
– Proprietary leading technology– Operational flexibility– Global presence
– Adj. EBIT margin: Avg. 10% - through the cycle– Return on Net Assets: Avg. >20%– Dividend: Payout ratio between 30% - 50%
– After Sales: >10% CAGR– Onsite Energy & Components: >10% CAGR– Engines: Growth above market
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Injection SystemsFuel CellDiesel PowerGenGas PowerGenOil & GasYachtNaval / GovernmentalCommercialRailMiningC&IAgricultureTrucksMedium / LightHeavyService / RepairsSpare Parts
Uniquely balanced portfolio in attractive markets
Split by region (2009)
– Attractive end markets with high barriers to entry– Broad & well balanced portfolio with >20 different application areas– Long-term growth perspectives in the fields of energy/power, raw materials/infrastructure and industrial
development in emerging countries
29%
20%
24%
8%
19%
Rest of World
Europew/o Germany
Asia/Pacific
NAFTA
Germany
Split by end market* Split by subapplication*
OE components
OE
Oil & Gas
Marine
Industrial
Defense
After Sales/Other
* excludes propeller shafts business which has been sold effective November 2009
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After Sales
Tognum is well positioned for long-term growthFocus on flexibility and efficiency
- Maintaining leadership in product innovation- Broadening business and customer portfolio- Integrating system and service offerings
Tognum‘s strategy
Operational Excellence
Portfolio
Strategic initiatives
Onsite Energy
Regional Expansion
- Robust Action Plan- Lean@mtu
Propulsion
Initiatives for higher flexibility and a
better cost position
Focus of today’s
presentation
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MTU Onsite Energy
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Why Onsite Energy?Decentralised systems offer highest efficiency
32 %
up to
96%
Losses from Transmission and Conversion100% Prime Energy Usable Energy Efficiency Ratio
+
+
75%
Main Power Plant
District Cogeneration Plant
Local Cogeneration Plant
-68%
-25%
-4%Availability ► When neededEfficiency ► Highest possibleEmissions ► Minimum possibleEconomics ► Best
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Gas systems
North America
Asia/Pacific
Europe/Middle EastAfrica/Latin America
2009 2020
Gas systems
2009 2020
Gas systems
2009 2020
– Hurricane season stimulates the mobile / rental genset segment
– Sustainable growth in coming years expected
– Above average growth expected, especially for Gas
– E.g. increasing demand for stand-by applications in India (diesel)
Market development – long-term perspectiveGrowing demand for decentralised power solutions
Note: End customer market, power range 150-10,000 kW, >1000 rpm; growth rates based on nominal value; excl. after sales marketSource: Tognum Market Intelligence
CAGR = Compound annual growth rate ´09-´20
CAGR4%
CAGR5%
Diesel Systems(incl. Engines)
Diesel Systems(incl. Engines)
Diesel Systems(incl. Engines)
CAGR7%
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Product portfolioBusiness Unit
MTU Onsite EnergyUniquely positioned for sustainable growth
Diesel Gas Fuel Cell
– Diesel engines for emergency and continuous power
– Standard and highly customised systems
– Special purpose / project business (NPP)
– Gas engines and systems for continuous power and cogeneration
– Fuel Cell for continuous power and cogeneration
MTU TRADITION SUSTAINABLE SOLUTIONS PREMIUM & CLEAN
– Dedicated regional sales force across the world
– Leading supplier for higher power diesel engines and systems
– Reputation for high quality and reliability
– System engineering know-how integrated across all three applications (Diesel/Gas/Fuel Cell)
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MTU Onsite Energy Achievements
New product:S 1600
Focus on gensets
– Market entry into lower power range (250kW-730kW) with dedicated off-highway engine
– Offered as part of own modularised gensets and as engine to OEM clients
Gas Systems
Nuclear Power Plants
Regional Development
– Successful sale of gas turbines under GE license in Germany– Expansion of market access in Vietnam through new distributor– Established engine production in China via JV with Norinco
– Market entry into Russia– Expansion of product portfolio– Continued development of project delivery competence
– Continuous enhancement of product portfolio (efficiency, gas coverage and power range)
– Exploitation of additional markets (Europe, South-East Asia)
– Successful global market introduction of modularised genset programme– Expansion of global assembly footprint, with ramp-up in Europe and Asia– Focus on fast energy delivery: multiple MW modular power stations
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Diesel Power SystemsStrategic intent: leverage systems capability
Market development Strategic intent
CAGR4-5%
Market
Competition
Customers
– Transfer experience/position from high end customisedsystems business
– Strengthen system sales competency
– Participate in increasing power demand
– Participate in growing market for back-up power as a consequence of ageing grids
– Improve application engineering learning by getting closer to the end customer
– Address growth requirements of utility customers
Application examples
Note: Power range 150-10000 kW, >1000 rpm; growth rates based on nominal value; excl. after sales marketSource: Tognum Market Intelligence
2009 2020
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Diesel Power SystemsMarket leading in engines and systems
Diesel engines Diesel PowerGen systems
– Standard genset offering for distributors and end customers
– Leverage experience of US-subsidiary MTU Onsite Energy Corporation
– Maximise economies of scale for Tognum Group – Maximise growth opportunity from distributed
energy markets
Engine portfolio– Series 1600– Series 2000 – Series 4000
Ready for the requirements of the future– Engine performance– Emission regulations– Serviceability
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Diesel PowerGen - Nuclear Power PlantsGrowth with markets for nuclear power plants
In €m, retrofit and new projects, based on current requests
Source: Own analysis
2009-2011 2009-2011 2009-2011
Europe Asia North America
No. of projects
~15 ~ 30 ~ 15
Market potential of NPP projects Achievements
- Supplier of back up power for NPPs since 1960´s
- Multiple engines NPP certified
- First NPPs in China equipped in 2001/2002
- September 2010: opening of JV with Norincoin China to further leverage penetration of Chinese NPP growth programme (currently 23 large 20V 956 gensets, with additonal project pipeline)
- Market entry to Russia in 2009
- Various orders in 2010 to retrofit German NPPs
~200
~100
~800
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Gas Power Systems Strategic intent: outgrow the market
Market development Strategic intent
Note: Power range 150-10000 kW, >1000 rpm; growth rates based on nominal value; excl. after sales marketSource: Tognum Market Intelligence
2009 2020
CAGR: 7%
Application examples
Key objectives
Strategic initiatives
– Develop broad and competitive product portfolio
– Further develop gas systems sales network
– Capture After Sales potential
– Offer sustainable energy generating concepts
– Place MTU Onsite Energy Gas Power Systems on the map through strong market share growth
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Fuel Cell SystemsTognums answer to the growing desire for clean cities
Reference projectsPremium energy
Erding
Stavanger (Norway)
Clean City where exhaust pollution is strictly regulated
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Continued growth in order income based on full MTU Onsite Energy product portfolio– Diesel systems: S 2000 gensets for emergency power for San Francisco airport
– Diesel NPP systems: Retrofit of German nuclear power plant - 12V/16V S 956 emergeny gensets to E.ON Kernkraft (volume: € 11m)
– Gas systems: Market entry to France: Two orders for gas system gensets by SDMO for French car manufacturers (volume € 2.5m; nine gensets 16V S 4000)
– Gas turbines: Total of approx € 50m for three orders by German municipalities for gas turbines based on GE turbines
– Combination of diesel, gas and fuel cell technologies at one site at University hospital of Giessen/Germany
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Revenue growth target
MTU Onsite EnergyExploiting the market potential
– Complement diesel engine portfolio(launch of series 1600 in 2009) and expand gas portfolio
– Increase in systems business with modularised generator sets (gensets)
– Internationalisation/regional expansion– Sales channel development and expansion in new
regions (e.g. Asia)– Increase power generation focused network density– Increase in After Sales
– Expansion of Nuclear Power Plant business
– Provide green energy with Gas and Fuel Cell systems
CAGR>10%
Objectives:– Capitalise on market growth– Systems integration– Market share gainsMid to long term trends:– Addressing grid instability– Rising energy demand, focus
on decentralised energy
20202009
CAGR = Compound annual growth rate ´09-´20
Main initiatives
A
B
C
D
E
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Back-up Strategy, Production & Financials
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Only “pure play” in high-speed off-highway enginesTo
gnum
mar
ket
Low-speed engines
Medium-speed engines
> 560kW
< 560kW
High-speed engines
Note: Shapes represent approx engine volumesSource: Secondary research
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The emission challengeEmission requirements
Increasingly stringent emission legislation
Tier 1
Tier 22000
2015
2006
2011
0.20.4 0
10
8
6
4
Tier
4i
Tier
4
0.6
2
PM (g/kWh)
NOx
+HC
(g/k
Wh)
Note: EPA legistlation, C&I > 560kW
Comments
- Broadly similar emission regulations in US (EPA), EU, and other countries
- Depending upon the application and power rating, different phasing of introduction and emission limits apply for Particulate Matter (PM) and Nitrogen Oxides (NOx)
- Increasing certification and testing requirements
Tognum objective to provide emission compliant solutions with improved life cycle
costs for the customer
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Fuel efficiency and life cycle cost
Intelligent R&DManaging the emission challenge
Fuel 90.5%
Preventive Maintenance 6.8%
Corrective Maintenance 1.1%
Engine price 1.7%
Source: MTU FN, customer feedbackApplication: Rail (locomotive)
Methods for emissions reduction
Exhaust aftertreatment
Combustion process
Exhaust gas recirculation
Turbo charging
Oxydation catalyzer
Diesel particulate filter
SCR catalyzer
Emission reduction(optimised EAT concepts)
Emission reduction+ Engine efficiency
Fuel injection
Electronics
Internal engine measures
– Efficient solutions to meet upcoming emission standards– Tognum keeps key technology know-how in-house– Focus to achieve optimised combustion process– Developing new engine series (lower power range) and new
engine generations (S 2000 / S 4000) – Competitive advantage and optimum solutions in all our
applications for our customer base– Customer benefits through engines with superior fuel
consumption and low total cost of ownership
Comments
Slide 24 | Tognum Investor Presentation | September 2010
Current setup & future driversPast setup
TotalOtherRepair & Services
RemanSpare parts
– Maintenance Contracts
– Remote Services
– Workshop and test bench solutions
– Engines– Parts– Power
Packs
– Training & document-ation
TotalOtherSpare parts
CAGR> 10%
After Sales growthDiversifying into products & services
Note: schematic illustration
Slide 25 | Tognum Investor Presentation | September 2010
After SalesExpanding services and remanufacturing
- Highly profitable After Sales business previously limited to spare parts & services
- 2009: 30% share of revenues of After SalesImportant growth drivers:- Growing installed base of MTU engines- High technological requirements for parts- Proactively tapping business potential
Achievements and Opportunities
- Extend service and maintenance contracts- 2007: € 125m/UK High Speed Trains
(population of >150 engines)- 2009: € 111m/Malaysian Navy (population of 70
engines)- Centralise spare parts business
- 2008: opened global spare parts logistics centre- Strengthen repair and service network
- 2009: opened repair + spare parts centre in Southern France
- Acquisition of SKL Motor as European remanufacturing centre in 2008:
- Remanufacturing of engines & parts- Penetrate growing engine population: S1600
- Ramping up own engine series in lower power range will offer long-term After Sales potential
Description
MTU_ValueSpares MTU_ValueExchange MTU_ValueService
Spare Parts
Consumables
MTU Exchange Parts MTU Customised Care
MTU Exchange Engines
MTU Exchange PowerPacks
MTU Engine Overhaul
MTU Extended Coverage
MTU Annual Check
Technical Information
Training
Service Units
MTU_ValueCare
Slide 26 | Tognum Investor Presentation | September 2010
Product portfolioContinuous development
Engine portfolio lower power rangeKey targets
- Redesign of S2000 + S4000: - Due to upcoming emission regulations for existing
markets, launch in 2014- Extension of product portfolio
- For new markets and applications- Expansion of key technologies
- And development of new technologies- Boost innovation process
- Cut life cycle cost- Reduce fuel consumption- Develop compact exhaust aftertreatment systems
Increase in competitiveness due to technology leadership to safeguard
profitable growth above market
- PowerGen- S 1600 (6R, 8V, 10V, 12V; 270kW-730kW)- Series production started in Q4/2009- Extension of MTU product portfolio- Modular engine architecture, lean production
concept, assembly only- Construction and Industry
- Product portfolio consisting of MTU engines S 1600 between 530kW-730kW
- Below 530kW: Introduction of new engine family based on upcoming Mercedes engines, which are designed for off-highway use by MTU
- Fully compliant with 2014 emission regulations- Compelling and complete new product
line-up fully addresses customer demand
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Regional expansionCovering the entire value chain
R&D Purchasing Manu-facturing Assembly Sales After Sales
– MTU India: engineering and research centre
– Global Sourcing initiative
– New production site in the US
– Acquisition of MTU Iberica
– V-TRAC -new distributor in Vietnam
– New After Sales centre for MTU France
– Training Center and workshop MTU India
– Cylinder liner in Turkey
– Suzhou plant
– JV Norinco(NPP)
ValueChain
Key achieve-ments
Slide 28 | Tognum Investor Presentation | September 2010
Expansion of complete propulsion systems salesfor Marine, Rail, Defense and C&I
Expansion of market share in automation and system scope
Extension and further decentralisation of engineering services portfolio
Development of hybrid systems in rail & marine
Expansion of O&G system portfolio and activities
PropulsionExpand solutions approach & engineering services
Types of Business Main initiatives
A
B
C
D
E
Components Business
Serial Systems Business
Project Systems Business
Applications
Marine Industrial
DefenseOil & Gas
Slide 29 | Tognum Investor Presentation | September 2010
Outlook 2010
► Continuing uncertainty in market environment for high-speed diesel engines, propulsion and power solutions
► Based on current developments and more precise information for H2/2010 narrowing of the guidance range:
► Revenues expected between € 2.4bn and € 2.5bn
► Adj. EBIT margin between 7.5% and 9%
► Increase in R&D expenses by 15%-20% and higher capex to secure technological leadership, future competitiveness and profitability
Slide 30 | Tognum Investor Presentation | September 2010
Product portfolio today
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 25.000 36.000
LM 2500LM 6000
8000
956/1163
4000
396
2000
900/460/500
Power [kW]
S60
106/199/837/870/880/890
Rail PP1800
1600
Gas turbine
Series
Mar
ine
C&
I
Pow
erG
en
Def
ense Series
Slide 31 | Tognum Investor Presentation | September 2010
Product portfolio developmentLine-up for PowerGen (schematic)
Toda
y
S 4000S 2000
S 60
Futu
re S 4000New generation
S 2000New generation
S 1600
100 kW 500 kW 4,000 kW2,000 kW1,000 kW 6,000 kW
S 956
S 8000
100 kW 500 kW 4,000 kW2,000 kW1,000 kW 6,000 kW
S 956
S 1600
3rd party
3rd party
LM 2500
LM 2500
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Product portfolio developmentLine-up for C&I (schematic)
Toda
y
OM900
OM500
S 4000S 2000S 60
100 kW 500 kW 4,000 kW2,000 kW1,000 kW
Futu
re S 4000New generation
S 2000New generation
S 1600
1000
1500
1300
1100
100 kW 500 kW 4,000 kW2,000 kW1,000 kW
Slide 33 | Tognum Investor Presentation | September 2010
Operational Set-upProduction and assembly concept
Flexibility in capacity adjustmentsFlexible engine & production concept
Core engine (S4000)
Gas
Marine
Mining Rail
Genset
Permanent workforce
Temporary workers
Plant capacity layout
Additional shifts
Outsourcing
Reduce temporaryemployment
Fewer shifts
Flexible work time model
Internal machinery
Slide 34 | Tognum Investor Presentation | September 2010
IN PROGRESS: Exhaust aftertreatment
Benefits– Fuel consumption– Cost– Maintenance– Size and weight
EXISTING: Combustion process
Fuel injection Turbo charging Electronics
Reducing LCC (life cycle cost)
NO2O2NO
Exhaust before Treatment
N2 H2O
after Treatment
SCR-Kat
(NH2)2CO+ H2O
Add-onUrea
NO2O2NO
Exhaust before Treatment
N2 H2O
after Treatment
SCR-Kat
(NH2)2CO+ H2O
Add-onUrea
Meeting emission regulations by – Developing engine and exhaust aftertreatment as one system– System optimisation
Product Portfolio - Key TechnologiesTognum with integrated approach
Slide 35 | Tognum Investor Presentation | September 2010
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
Goldmine -USA
High A ltitude(1) - Chile
High A ltitude(2) - Chile
High A ltitude(3) - Chile
Other
Availability of trucks - Mining Fuel efficiency - Mining
Key buying criteriaLower fuel consumption and less service time
Benchmarking S4000 vs. competition– Additional availability of mining fleets
Source: MTU FN, customer feedback
CompetitorS4000
USD 75,000 p.a.Savings
with 5% reduced fuel consumption:
USD 1.5 million p.a.Fuel costs**
2 million litresFuel consumption per year*
3000 kW (4080 PS)Engine power
Engine 20V 4000 C23L
* Load factor 40%, 7000 h in use per year** fuel costs 0.75 US$/litre
Slide 36 | Tognum Investor Presentation | September 2010
– Established in 2004
– TOP establishes a continuous improvement process for higher efficency and competitiveness
– Cost reduction through systematic process analysis – Manufacturing and assembly– Procurement– Distribution and logistics– After Sales– Research and development– Overhead– Quality control
– 2007-2009: >200 projects completed
– Fulfilled TOP targets for 2006-2009– Yearly savings: c. 1% of Revenues; total
sustainable savings in the past: >€100m– Increased management focus on continuous
process improvements – Results achieved feed into operative planning – Extensive internal commitment due to internal
communication– Implemented in subsidiaries– Investments in research and development,
new engines– Future savings help offset input cost
increases (e.g. cost of materials)
TOP – Total Operational Performance Impact
Tognum TOPProcess optimisation and efficiency improvement
Slide 37 | Tognum Investor Presentation | September 2010
727
790
787
829
642 509
598577
526
764
2008 2009 2010
875
773
864
719
651 696
625 693
488
566
2008 2009 2010
Revenues (in €m)
Order intake and revenues
Order Intake (in €m)
+8.9%
3,231
-12.4%
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
3,133
22%
27%
24%
27%
27%
25%
25%
23%
-18.3%-22.6%
2,3302,529
24%
21%
27%
28%
30%
21%
24%
25%
1,389
1,086
Slide 38 | Tognum Investor Presentation | September 2010
58
75
69
62
22383113
17
54
2008 2009 2010
100
100
124
83
64 43
19 5433
83
2008 2009 2010
Q3
EBIT adj.1 (in €m) Net profit adj.1 (in €m)
Profitability
1 Excludes any effects from purchase price allocation, fx valuation, and revaluation of net assets of acquisitions
-61.7%
RoSH1 6.7% 8.9% EPS
H1 €0.39 €0.40
-58.5%
407 264
Q4
Q2
Q1
Q4
Q3
Q2
Q1
24%
26%
28%
22%
20%
30%
25%
25%
+2.6%13.2%
-+16.9%+3.7%
€1.01 -61.4%
121199
42%
10%
17%
32%
45%
14%11%
31%
9753
Slide 39 | Tognum Investor Presentation | September 2010
20399 97
7739531,173
10285
95
71
55 7744
4043
Avg. 2008* Avg. 2009* H1/2010
74.9% 75.2%71.2%
13.0%7.9% 8.9%
8.0%5.4%
8.7%
5.6%3.5% 7.1%2.8%
3.2% 3.9%
2008 2009 H1/2010
G&A (adj.)
Margin development
-4.0 pp
+2.9 pp
+1.0 pp
+0.3 pp
+5.1 pp
-5.1 pp
* Average per half-year for 2008 and 2009
R&D (adj.)
Selling expenses (adj.)
EBIT (adj.)
Cost of goods sold (adj.)
Slide 40 | Tognum Investor Presentation | September 2010
Q2/2010 adjustment bridge
(1) PPA depreciation & amortisation (€ 11.0m)
Adjusted for hedges for FX cashflows(€ 10.0m)
(2) Valuation of FX loans (€ 19.0m)
Impairment of FCE (€ 3.1m)
(3) Higher income taxes resulting from higher EBIT at 32% tax rate (€ -14.2m)
(4) PPA depreciation & amortisation (€ 11.0m)
Impairment of FCE (€ 3.1m)
in €mReported
Q2/2010Adjusted Q2/2010
Revenues 576.6 576.6Cost of sales (431.0) 21.0 (1) (410.0)Gross profit 145.6 21.0 166.6SG&A (71.6) (71.6)
(39.6) (39.6)0.6 0.6
35.0 21.0 56.0(1.4) (1.4)
Other financial income 6.3 22.1 (2) 28.4Other financial expenses (28.8) (28.8)
11.1 43.1 54.2Interest income 1.8 1.8Interest expenses (10.6) (10.6)Earnings before taxes 2.3 43.1 45.4Income taxes (0.7) (14.2) (3) (14.9)Net profit (loss) 1.6 28.9 30.5
Depreciation and amortisation (38.3) 14.1 (4) (24.3)EBITDA 49.4 29.1 78.5
Adjustments
Earnings before interest and taxes
Research and development costs
Results from operating activitiesShare of profit from investments - equity method
Other operating income (expenses)
Slide 41 | Tognum Investor Presentation | September 2010
681 687
398 404 403336
672
195192
31.12.2008 31.12.2009 30.06.2010
Equity Pensions Net Debt687672 681
31.12.2008 31.12.2009 30.06.2010
736711960
31.12.2008 31.12.2009 30.06.2010
2,5542,469
2,550
31.12.2008 31.12.2009 30.06.2010
Total assets (in €m) Net working capital* (in €m)
Tognum group funding structure (in €m)Equity (in €m)
Balance sheet figures
Equityratio
-3%+4%+3% -26%
26.3% 27.6%
* Net Working Capital: includes inventories, trade receivables, trade payables and advance paments received; as at 31.12.2008 taking subsequent reclassification of receivables into account
26.9%
Slide 42 | Tognum Investor Presentation | September 2010
(28.6)
(46.0)
(42.1)(192.2)
(12.5)
(194.7)
(9.7)
136.4
31.12.2008 31.12.2009 30.06.2010
H1/2010 net debt development
Net financial debt (in €m) and leverage (based on LTM adj. EBITDA)
0.7x 0.6x
Q1
Net financial
debt31.12.09
Cashflow from
operatingactivities
Net financial
debt30.06.10
Cashflow from
investingactivities
Net fxvaluation
effect
Net debt/adj. LTM EBITDA
Pensions
Netfinancialdebt
1.5x
2.1x
Unrecognisedactuarial gain
335.8
192.2
319.9
331.5
78.3
398.2
72.5
403.9
194.7
403.0
1.9x
Q2126.7 (41.1)
May 2010Dividendpayment
Slide 43 | Tognum Investor Presentation | September 2010
Consolidated performance Tognum Group
in €m Engines OE&C Distribution Holding/ Consolidation
Tognum Group
H1/2009
Order intake 886.2 328.8 276.9 (216.1) 1,275.9
Revenues 829.0 366.1 217.2 (173.0) 1,239.2
Adj. EBIT 63.2 10.8 21.3 (12.4) 83.0
H1/2010
Order intake 839.5 480.2 347.4 (277.7) 1,389.5
Revenues 743.3 322.2 229.9 (209.3) 1,086.0
Adj. EBIT 83.5 12.5 21.2 (20.3) 97.0
Q2/2010
Order intake 404.9 259.6 166.4 (138.0) 693.0
Revenues 380.7 178.3 137.0 (119.4) 576.6
Adj. EBIT 44.8 7.3 10.8 (8.7) 54.2
Slide 44 | Tognum Investor Presentation | September 2010
Segmental performanceEngines
in €m H1/2009 % of revenue
H1/2010 % of revenue
Change Q2/2010 % of revenue
Order intake 886.2 839.5 -5.3% 404.9
External revenues 702.5 625.1 -11.0% 316.1
Segment revenues 829.0 743.3 -10.3% 380.7
Marine 229.7 28% 217.0 29% -5.5% 114.6 30%
Industrial 137.3 17% 128.5 17% -6.4% 70.2 18%
Oil & Gas 36.6 4% 21.5 3% -41.3% 15.6 4%
Defense 107.3 13% 53.3 7% -50.3% 22.6 6%
After Sales/Other ( E ) 318.1 38% 323.0 43% 1.6% 157.8 41%
Adj. EBIT 63.2 7.6% 83.5 11.2% 32.2% 44.8 11.8%
Slide 45 | Tognum Investor Presentation | September 2010
Segmental performance Onsite Energy & Components
in €m H1/2009 % of revenue
H1/2010 % of revenue
Change Q2/2010 % of revenue
Order intake 328.8 480.2 46.1% 259.6
External revenues 324.6 237.3 -26.9% 127.7
Segment revenues 366.1 322.2 -12.0% 178.3
Diesel Systems & Engines 186.3 51% 194.4 60% 4.4% 108.2 61%
Gas & Fuel Cell Systems 11.4 3% 8.9 3% -21.5% 5.0 3%
After Sales/Other ( OE ) 27.3 7% 48.5 15% 77.5% 25.2 14%
Injection Systems 66.3 18% 70.3 22% 6.1% 39.8 22%
Propeller Shafts 74.8 20% 0.0 0% 0.0 0%
Adj. EBIT 10.8 3.0% 12.5 3.9% 15.9% 7.3 4.1%
Slide 46 | Tognum Investor Presentation | September 2010
Segmental performance Distribution
in €m H1/2009 % of revenue
H1/2010 % of revenue
Change Q2/2010 % of revenue
Order intake 276.9 347.4 25.5% 166.4External revenues 212.1 223.6 5.4% 132.8Segment revenues 217.2 229.9 5.8% 137.0
Products 126.4 58% 135.4 59% 7.1% 88.7 65%
After Sales (D) 90.8 42% 94.4 41% 4.0% 48.3 35%Adj. EBIT 21.3 9.8% 21.2 9.2% 33.3% 10.8 7.9%
Slide 47 | Tognum Investor Presentation | September 2010
Tognum AG shareholder structureTotal free float of ~75%
Daimler AG>25 %*
Top Management and Members of Supervisory Board6.0 %* (Free float)
Institutional and Retail Investors~69 %
Incl.– ING Groep, NL: >5 %*– First Eagle Investment Management,
USA: >3 %*
Institutional Shareholders** c. 45%
Retail Investors – c. 25,000 investors (April 2010)
* According to their releases of Voting Rights and Directors’ Dealings** Identified ownership in February 2010 (Source: Global Shareholder Intelligence Report)As of 31 August 2010
Investor contacts:Dieter RoyalHead of Corporate Finance & Investor Relations
Michael FrankPetra HeidDragica SikićPhone: + 49 (0)7541 90-3318Fax: + 49 (0)7541 9090-3318mailto:[email protected]://www.tognum.com
Tognum AG, 88040 Friedrichshafen/ Germany
Financial calendar 2010*November 3 Q3/10 report & conference call
* All dates are preliminary and subject to change
Thank you very much!