Dr. Kalliwoda Capital Markets Conference
Brussels, 18th March 2015
From melting steel to 3D-printing: investing in the
technology-driven German “Mittelstand”
GESCO Group – an association of industrial SMEs
with market and technology leaders
Segments tool manufacture / mechanical engineering
and plastics technology
Currently 17 operating subsidiaries under the roof
of GESCO AG as a holding company
We think and act in a sustainable and entrepreneurial manner
We do business in established sectors with innovative technologies
We provide technology “made in Germany” for global markets
GESCO is comprised of adaptable, independent operating units
that benefit from being part of a strong group
GESCO AG – a long term investor
and a safe haven for succession issues
We acquire and develop industrial SMEs an a long-term basis –
exit is not part of the business model
We take over majorities, almost always 100 %
Most takeovers are part of succession planning
The new managing directors invest up to 20 %
in the company they run (“entrepreneur companies”)
1. Business model
2
The GESCO share offers a focussed portfolio of 17 “Hidden
Champions” serving broadly diversified customer sectors
1. GESCO Group
→
3
2%
4%
5%
5%
8%
8%
12%
13%
14%
25%
4%
Passenger and commercial vehicles
Other
Agricultural engineering
Machine and plant construction
Consumer goods Energy / supply
Iron, plate and metal processing,
tool construction
Chemical / petrochemical industry
Foundries and rolling mills
Electrical, medical technology, household goods
Construction, air conditioning, sanitary industry
4
1. The 4 biggest companies (sales and staff: FY 2013)
Dörrenberg Edelstahl GmbH
• Leading European
specialist for tool steel
• Steel mill, trading,
mould castings and
surface technology
• Strong internationalization
• Sales € 162 m, staff 495
SVT GmbH
• Systems for (un)loading
liquids and gases
• Specialty LNG:
No. 2 worldwide
• Export ratio: 80 %
• Sales € 52 m, staff 187
MAE Maschinen- und
Apparatebau Götzen GmbH
• World market leader for
straightening machines
and wheel set presses
• Highly innovative
• Acquired US competitor
in Jan. 2014
• Sales € 34 m, staff 140
Frank Walz- und
Schmiedetechnik Group
• Europe‘s leading forge
for wearparts for the
agricultural industry
• 70 % of sales to OEMs,
30 % to wholesale and
farmers
• Sales € 34 m, staff 297
5
1. Two very special companies (sales and staff: FY 2013)
Setter Group
• Paper and plastic sticks
for the sweets and hygienic
industries, world market
leader for paper sticks
• 90 % export ratio
• 20 bn sticks produced in
Germany each year
• 60 bn sticks produced
in US on Setter technology
• Sales € 15 m, staff 60
C.F.K. CNC-Fertigungs-
technik Kriftel GmbH
• Leading centre in high-
precision wire erosion
and die sinking
• Cutting-edge production
line, 40 machines
• Advanced laser melting
systems (3D printing) for
functional prototypes,
medical implants etc.
• Sales € 7 m, staff 49
2. Financial year 2014/2015 (1 Apr. 2014 – 31 March 2015)
General situation:
Good start into the new FY with positive signals from various regions and
customers, VDMA was optimistic and German GDP was supposed to grow
But the difficult situation at two subsidiaries turned out to burden earnings
significantly:
Protomaster GmbH, produces car body parts and assemblies for small
and medium-scale series on self-produced tools
MAE Maschinen- und Apparatebau Götzen GmbH, international market leader for
automatic straightening machines and wheel set presses
Both companies faced a dramatic increase in customer demand and
requirements, making reorganisations and investments necessary
Since summer 2014 more subdued economic environment, the
Russia/Ukraine crisis and other geopolitical risks affect general business
climate and customers’ willingness to invest
VDMA cut outlook for production growth in 2014 from 3 % to 1 %
6
2. Financial year 2014/2015 – Q1 to Q3
The first nine months
Comprises operating business Jan. to Sept. 2014 of subsidiaries
Order intake increasing, sales flat
The two restructuring cases weigh on group earnings
First half year rather weak, significant margin improvement in Q3
Guidance for full FY is confirmed
7
2. Financial year 2014/2015 – Q1 to Q3 (subsidiaries‘ operating months Jan. to Sept. 2014)
Q1 – Q3
2013/2014
Q1 – Q3
2014/2015
Change
Order intake € m 325.2 340.0 4.6 %
Sales € m 337.2 337.9 0.2 %
EBITDA € m 36.9 34.4 -6.8 %
EBIT € m 24.3 20.4 -15.8 %
Group net
income after
minority interest
€ m
13.6
10.5
-22.9 %
EPS acc. to IFRS € 4.08
31/03/2014
3.14
31/12/2014
-22.9 %
Equity € m 176.6 181.0 2.5 %
Equity ratio % 46.5 45.0 -
Liquid funds € m 38.8 35.0 -9.8 %
8
burdened by the two
restructuring cases
satisfactory customer
demand
high investments in
prev. and current FY
weigh on EBIT
always in
our focus: a strong
balance sheet
€ 7.3 m dividend
payed out
20.000
40.000
60.000
80.000
100.000
120.000
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
2009 2010 2011 2012 2013 2014
Based on the information currently available,
guidance for the full FY is confirmed
2. Financial year 2014/2015 – Q4 (subsidiaries‘ operating months Oct. to Dec.) and Outlook
Q4: operating business on a satisfactory level
Order intake approx. € 108 million (prev. year’s period: € 110.4 million)
Sales approx. € 116 million (prev. year’s period: € 116.1 million)
9
─ Order intake
─ Sales
2. Financial year 2014/2015 – Outlook
2013/2014
Actual
2014/2015e
Outlook
Group sales € m 453.3 455 to 460
Group net income after minority interest
€ m 18.1 14.5 to 15,0
Earnings per share acc to IFRS
€ 5.45 4.36 to 4.51
Target figures
10
Current situation with respect to M&A
Currently more offers Increasing competition, e. g. from Family Offices
At present some projects under examination
2. M&A
11
January 2015: Setter Group acquires Setterstix Corp. / USA
GESCO subsidiary Setter is market leader for paper sticks for the hygiene industry
Recently acquired Setterstix Corp. is the leading US producer of paper sticks for the confectionary industry with approx. € 10 m sales and 40 employees
acquisition rounds off Setter‘s position in the US market perfectly
Production location in the US helps Setter to expand its business in Central and South America
The comapnies have common origins, but have been separate companies for decades
2. M&A
12
Free float: 86.4 %
Stefan Heimöller, entrepreneur, member of supervisory board: 13.6 %
Investmentaktiengesellschaft für langfristige Investoren TGV
(voting rights announcement from 29 Dec. 2014): 5.4 %
Dividend policy: payout ratio approx. 40 % of
Group net income after minority interest
3. The GESCO share
13
13.6% Stefan Heimöller
5.4%Investmentaktiengesellschaftfür langfristige Investoren TGV
35% other institutional investors
46% retail investors
3. Share price development (in %)
GESCO vs. SDAX, 1 year
GESCO vs. SDAX, 5 years
14 GESCO vs. SDAX, 10 years
80
85
90
95
100
105
110
115
120
80
100
120
140
160
180
200
220
240
0
100
200
300
400
Founded: 1989
Share capital: € 8,645,000
Shares: 3,325,000 registered shares
Free float: 86.4 %
Stock markets: Xetra; Frankfurt (regulated market); Berlin, Düsseldorf, Hamburg, Hanover, Munich, Stuttgart (open market)
Sec. identification number: A1K020
ISIN: DE000A1K0201
IPO: 24 March 1998
Index: SDAX
End of financial year: 31 March
Designated sponsors: equinet Bank AG Oddo Seydler Bank AG
Facts and figures on GESCO AG
15
GESCO Group overview
Company Sales 2013
€‘000
Staff
31/12/2013
GESCO AG
shareholding
Astroplast Kunststofftechnik GmbH & Co. KG 14,282 77 80%
Paul Beier GmbH Werkzeug- und Maschinenbau & Co. KG 8,901 114 100%
C.F.K. CNC-Fertigungstechnik Kriftel GmbH 6,740 49 80%
Dömer GmbH & Co. KG Stanz- und Umformtechnologie 13,716 102 100%
Dörrenberg Edelstahl GmbH 161,782 495 90%
Frank Group 33,547 297 100%
Franz Funke Zerspanungstechnik GmbH & Co. KG 16,130 81 80%
Haseke GmbH & Co. KG 12,359 61 80%
Hubl GmbH 10,257 106 80%
Georg Kesel GmbH und Co. KG 10,723 68 90%
MAE Maschinen- und Apparatebau Götzen GmbH 34,078 140 100%
Modell Technik GmbH & Co. Formenbau KG 13,979 106 100%
Protomaster Riedel & Co. GmbH 7,700 85 82.17%
Setter Group 14,773 60 100%
SVT GmbH 51,770 187 90%
VWH Vorrichtungs- und Werkzeugbau Herschbach GmbH 10,809 105 80%
Werkzeugbau Laichingen Group 26,573 182 85%
16
Financial calendar
Financial calendar
25 June 2015 Annual Accounts Press Conference and Analysts’ Meeting
14 August 2015 Q1 figures (01.04. to 30.06.2015)
18 August 2015 Annual General Meeting
31 Aug. / 1 Sept. 2015 Small Cap Conference, Frankfurt/Main
13 November 2015 Q2 figures (01.04. to 30.09.2015)
24 / 25 November 2015 German Equity Forum, Frankfurt/Main
17
Investor relations contact
Investor Relations
GESCO AG Phone: +49 202 24820-18
Investor Relations Fax: +49 202 24820-49 Oliver Vollbrecht E-mail: [email protected] Johannisberg 7 Internet: www.gesco.de 42103 Wuppertal
Germany
18
19
GESCO AG Johannisberg 7 42103 Wuppertal
Germany
20
Top Related