Company presentation 16 - 18 November 2020 - GESCO AG
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
German
CompanyEquity Forum
presentation
16 – 18 November 2020
as at: 21 December 2020
Intro
GESCO
Hidden Champions
from the technology-driven German „Mittelstand“
2 GESCO AG – Company Presentation 21 December 2020
… in one share
Overview
0 1 0 2 0 3
Business model Strategy NEXT LEVEL Excellence Programmes
0 4 0 5 0 6
M&A Financial year 2020 GESCO on the
stock market
0 7
Appendix
3 GESCO AG – Company Presentation 21 December 2020
01 Business model GESCO AG – Company Presentation 21 December 2020
01 Business model
GESCO – The Industrial Group
Industrial SMEs including market and technology leaders
GESCO ▌Operating subsidiaries, growing internationallly,
under the roof of GESCO AG
Group ▌ Flexible, operationally independent companies that benefit
from being part of a strong group
▌ Innovative technology „Made in Germany“ for global markets
Long-term investor and safe haven for succession solutions
GESCO ▌ Acquisition and development of industrial SMEs on
AG a long-term basis,
▌ Majority acquisitions, generally 100 %, mostly as succession arrangements
▌ Managers can acquire stake of up to 20 % in their company
Hidden Champions des technologie-
getriebenen deutschen Mittelstands in
einer Aktie
5 GESCO AG – Company Presentation 21 December 2020
Hidden Champions from the „Mittelstand“ in one share
01 Business model
01 Geschäftsmodell
GESCO – The Industrial Group
Ressource
Consolidating markets, focus on
niches and customer service
Customised preparation of primary
Production process materials, loading equipment for
Dynamically markets, gases and liquids
high degree of innovation,
Robotics and automation solutions in
machine and plant construction
Technologies
Mobility Segment closed
asshifts,
Currently strategic at 21.12.2020,
market
Health & Infrastructure development unclear and challenging
GESCO divests
Stable markets, relatively resilient all 4 companies
Tools and moulds, components,
to economic cycle parts etc. for vehicle industry
Modules, components
and perishable goods
Hidden Champions des technologie-
getriebenen deutschen Mittelstands in
einer Aktie
6 GESCO AG – Company Presentation 21 December 2020
end-market oriented segments
02 Strategy
NEXT LEVEL
GESCO AG – Company Presentation 21 December 2020
02 Strategy NEXT LEVEL
GESCO – the Vision
▌ All companies are Hidden Champions
or well on track to becoming Hidden Champions
▌ Well-balanced, robust and resilient portfolio
with three core holdings and basic holdings
of substantial size
▌ Well established Excellence Programmes
▌ Strong corporate culture, attracting employees,
offering them room for development, resulting in
High Performance teams
8 GESCO AG – Company Presentation 21 December 2020
an attractive goal
02 Strategy NEXT LEVEL
The strategy
PORTFOLIO HIDDEN
N E
HOLDING
ARCHITECTURE CHAMPIONS
Strengthen corporate culture
Analyse the portfolio
and team spirit
Encourage visions
Add skills in terms of
to achieve next levels
methods and know-how
X T
M&A PROGRAMMES
| Buy bigger companies CANVAS - Business Model |
| Stronger focus on add - ons MAPEX |
| Optimise processes OPEX |
| Intensify direct approach LEADEX |
9 GESCO AG – Company Presentation 21 December 2020
a holistic concept
03 Excellence
Programmes
GESCO AG – Company Presentation 21 December 202003 Excellence Programmes
The elements
CANVAS Business model analysis Market and Product Excellence MAPEX
Upstream workshops for a holistic analysis Analysis of customer segments, product offerings,
of the respective business model customer channels and relationships. New ideas
for product portfolio and market position
Create a common understanding in the
management team, identify development Expand market shares, tackle new market
potentials segments, develop product innovations
OPEX Operational Excellence Leadership Excellence LEADEX
Analysis of the value added processes, in particular Sharpen leadership skills in a dynamic environment,
the parameters quality, lead time and delivery support attractivity as employer
performance as well as cost structures
Promote and develop executives,
Increase efficiency and margins
strengthen corporate culture
11 GESCO AG – Company Presentation 21 December 2020
systematic and adjusted process03 Excellence Programmes
The targets
Operational 9 – 12 months lead time Sales per employee 3%
Excellence before effectiveness grows by p. a.
Market and
Product
12 – 24 months lead time Sales grows 3%
before effectiveness above market by
Excellence p. a.
8 – 10 %
EBIT Target margin Throughout the economic cyle
p. a.
12 GESCO AG – Company Presentation 21 December 2020
clearly measurable03 Excellence Programmes
Our schedule - where do we stand?
2019 2020
MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
HUBL OPEX analysis OPEX implementation
Sommer & Strassburger OPEX analysis OPEX implementation
DÖMER OPEX analysis OPEX implementation
MAE Group MAPEX analysis MAPEX implementation
MAPEX analysis MAPEX implementation
FRANK Group
MAPEX analysis MAPEX implementation
Pickhardt & Gerlach Group
Dörrenberg Group
C.F.K.
Paul Beier
MAPEX analysis
Modell Technik
AstroPlast
Georg Kesel Group
MAPEX analysis
SVT
Franz Funke
VWH
Haseke GESCO auf die nächste Ebene
Setter Group entwickeln
13 GESCO AG – Company Presentation 21 December 2020
… Hidden Champions are being created04 M&A GESCO AG – Company Presentation 21 December 2020
04 M & A
Readjusted
GESCO Target profile Network
Always looking for Sales of still generates
Hidden Champions € 20 mn € to € 100 mn good dealflow
for direct investments
Add - ons Direct approach
with strategic added value selected targets based
for existing companies on own market analysis
from € 5 mn sales
15 GESCO AG – Company Presentation 21 December 2020
directed towards target portfolio04 M & A
Portfolio Architecture
Target
IST
3 core holding
with different end markets
several basic holdings
with substantial sales and earnings contribution
Produktionsprozess Ressourcen Gesundheit und Infrastruktur Mobilität
16 GESCO AG – Company Presentation 21 December 2020
balanced and resilient05 Financial year 2020 GESCO AG – Company Presentation 21 December 2020
05 Financial year 2020
2020: the „Big Picture“
Operational business: getting NEXT LEVEL: driving forward the NEXT LEVEL: making the portfolio
through the crisis safely and solidly. Excellence programmes more robust and successful
declining sales and earnings despite Corona-related limitations: we have strengthened the M&A team in
we have developed all the companies, recent months
non-cash impairment write-downs of
carried out a number of programmes and
€13.5m in Q2 lead to negative Group
launched several concrete projects which we improved the financial conditions for
income in full year
are now being implemented transactions
but operationally (before impairment
we currently have some projects in the
write-downs) at least break even
pipeline
GESCO copes with the crisis We strengthen the companies
sustainably We are making the portfolio
more robust
18 GESCO AG – Company Presentation 21 December 2020
GESCO copes with the crisis and strengthens the Group05 Financial year 2020
Status after first nine months (as at 16.11.2020)
German economy Investment goods industry Automotive
German government`s GDP forecast for VDMA expects 17 % decline of situation already difficult due to shifts in
2020 as a whole: -5.5 % production in 2020 technology, exacerbated by pandemic
change in GDP to previous quarter: sales recover in Q3, mainly due to high
Q2: -9.8 % demand from China
Q3: +8.2 %
GESCO Group: mainly Corona-related GESCO Group: partly structural problems GESCO Group: particularly good
weak phase development
triggered by the upheaval in automotive
Companies in all segments recorded industry, intensified by Corona Setter (world market leader paper sticks)
temporary/punctual restrictions due to
relates to the entire Mobility Technology Sommer & Strassburger (process
Corona (plant closures at customers,
segment technology for pharmaceuticals, water,
travel restrictions, etc.)
in Production Process Technology chemicals, etc.)
machinery and plant manufacturers with SVT (loading arms for gases and liquids,
high automotive exposure affected including LNG)
19 GESCO AG – Company Presentation 21 December 2020
Corona impact05 Financial year 2020 – first nine months (01.01.-30.09.2020)
Nine month period: key figures
Q1-Q3 2019
Q1-Q3 2020 adjusted change
Significant decline in demand from automotive and
Order intake / € million 354.2 437.2 -19.0% investment goods sectors
Particularly strong decline in Production Process Technology
Group sales / € million 363.0 438.6 -17.2% and Mobility Technology
EBITDA / € million 27.1 43.3 -37.4%
Corona as triggering event for impairment tests during the year;
Impairment losses / € million -13.5 0 --- losses refer to companies from Mobility Technology segment
EBIT / € million -5.8 23.6 ---
earnings before tax /
€ million -7.8 21.2 ---
Group result after minority
interest / € million -12.2 12.5 ---
Earnings per share
acc to IFRS / € -1.12 1.15 ---
Employees / Staff decrease mainly in Production Process Technology
No. at reporting date 2,611 2,734 -4.5% and Mobility Technology, slight increase at Setter
Cash flow from ongoing
business activity 37.5 21.2 +77,0%
20 GESCO AG – Company Presentation 21 December 2020
Key figures influenced by the effects of the pandemic05 Financial year 2020 – first nine months (01.01.-30.09.2020)
Nine month period: segment development
Q1-Q3 2020 Q1-Q3 2019
(€ million) adjusted
Production Order intake 41.0 66.0 Significant reluctance to invest in automotive sector;
process Sales 46.5 65.4
EBIT positive in Q3, negative in full nine month period
Technology EBIT -2.4 4.6
Resource Order intake 168.1 217.7 Demand for tool steal suffers from weakness in
Technology Sales 167.6 210.2 investment goods industry; strip steel business stable;
loading technology with strong increase in sales
EBIT 8.1 17.3
Health & Order intake 120.3 119.4 Stable development despite Corona impact;
Infrastructure Sales 117.4 118.4 ongoing positive trend for paper sticks
Technology EBIT 10.8 10.5
Mobility Order intake 24.9 34.1 Corona burdens already weak development;
Technology Sales 32.0 44.9 production of big tools especially effected;
EBIT -2.8 0,7 the situation remains tense
21 GESCO AG – Company Presentation 21 December 2020
Corona burdens already weak demand05 Financial year 2020
21 December 2020: largest portfolio
adjustment in company history
Economic consequences GESCO remains long-term investor
GESCO closes down segment
mobility technology, sells six Based on FY 2020 GESCO sells:
companies all in all Approx. € 90 mn sales GESCO always acquires companies with
the intention of holding them long-term
These companies were sold: Approx. € -15 mn EBIT (of which
and developing them further
-1.5 mn operational losses and
• All 4 companies from mobility
-13.5 mn impairment losses from August
technology segment 1)
2020) As an exception, disposals due to
• Frank Walz- und Schmiedetechnik strategic reasons are possible, as in the
• C.F.K. CNC-Fertigungstechnik Kriftel past
Buyer: Evoco, Zurich/Switzerland
Purchase price : € 27 mn
Net cash inflow: € 15 mn
After this complex transaction
Profitability improved, streamlined
Transaction within the focus is on expanding the Group with
balance sheet, reduced debt, higher
scope of NEXT LEVEL further attractive SMEs
equity ratio
1)For one company closing is subject to granting
of regulatory approval.
22 GESCO AG – Company Presentation 21 December 2020
Milestone in implementation of NEXT LEVEL05 Financial year 2020
Group outlook
FY 2020 FY 2020 abbrev.
(12 months) (12 months) FY 2019
as at 03.08.2020, as at 21.12.2020 (9 months)
confirmed on
16.11.2020
Group sales > € 450 mn approx. € 400 mn 439,6
(including the from continuing Effects of the transaction
companies that operations and better-than-expected
have been sold) operating business lead to
renewal of outlook
Group net income ≥0 12,4
after portfolio adjustment
after minority interest
on 21 December 2020
before impairment losses
Group net income ≥ € -13,5 mn 12,4
after minority interest
including impairment losses
Group net income approx. € 5 mn
afterminority interest from continuing
operations
23 GESCO AG – Company Presentation 21 December 2020
positive earnings from continuing operations06 GESCO
on the stock market
GESCO AG – Company Presentation 21 December 202006 GESCO on the stock market
GESCO share
GESCO AG (incl. dividend) vs. SDAX
100%
SDAX
GESCO AG
01.01.2020 15.12.2020
25 GESCO AG – Company Presentation 21 December 2020
SDAX as benchmark06 GESCO on the stock market
Dividend
Dividend policy OLD Dividend policy NEW Dividend for 2019
Distribution ratio approx. 40 % of Group • 20 % to 60 % of Group net income • Due to the Corona crisis, application
net income after minority interest after minority interest of the new policy was brought forward
• Higher flexibility, especially with regard • Dividend of € 0.23 / share corresponds
to the implementation of the M&A to lower end of range
strategy of NEXT LEVEL • AGM took place on 18.06.2020
• In phases of strong earnings and cash as virtual AGM as scheduled
flows distributions significantly above • AGM approved the proposed dividend
recent level
26 GESCO AG – Company Presentation 21 December 2020
Higher flexibility06 GESCO on the stock market
Shareholder structure
14.8 %
14.2 % Investmentaktiengesellschaft für
Stefan Heimöller langfristige Investoren TGV
3.3 %
Baden-Württembergische
Versorgungsanstalt für Ärzte,
Zahnärzte und Tierärzte
3.0 %
LGT Capital
Partners Ltd.
71,0 %
Freefloat
(acc. to definition of
Deutsche Börse)
approx. 32.35 %
other private
investors
approx. 32.35 %
other institutional
investors
27 GESCO AG – Company Presentation 21 December 2020
Stable shareholder structure07 Appendix GESCO AG – Company Presentation 21 December 2020
07 Appendix
GESCO – group overview
Company Sales 2019 Staff GESCO AG
€‘000 as at 31.12.2019 Shareholding
MAE Group 37,875 218 100%
Production Sommer & Strassburger GmbH & Co. KG 20,753 144 100%
Process
VWH GmbH 16,977 129 80%
Technology
Georg Kesel Group 12,596 60 90%
C.F.K. CNC-Fertigungstechnik Kriftel GmbH divested as at 21.12.2020 7,177 60 80%
Dörrenberg Group 204,862 527 90%
Resource SVT GmbH 44,768 177 100%
Technology Pickhardt & Gerlach Group 31,268 45 100%
Setter Group 50,435 180 100%
Frank Group divested as at 21.12.2020 37,434 336 90%
Franz Funke Zerspanungstechnik GmbH & Co. KG 20,285 95 100%
Health &
Infrastructure Hubl GmbH 16,356 118 80%
Technology Haseke GmbH & Co. KG 14,404 81 80%
AstroPlast Kunststofftechnik GmbH & Co. KG 13,550 90 100%
Werkzeugbau Laichingen Group 21,469 173 100%
Segment closed
Dömer GmbH & Co. KG Stanz- und Umformtechnologie as at 21.12.2020, 17,286 96 100%
Mobility
Modell Technik Formenbau GmbH GESCO divests 10,356 107 100%
Technology
Paul Beier GmbH & Co. KG all companies 8,548 63 100%
Hidden Champions des technologie-
getriebenen deutschen Mittelstands in
einer Aktie
29 GESCO AG – Company Presentation 21 December 202007 Appendix
Facts and Figures
Founded
1989
Share capital Xetra; Frankfurt (regulated market);
Berlin, Düsseldorf, Hamburg/Hannover,
10,839,499 € Stock markets
Sec. identification number
München, Stuttgart (open market)
A1K020
ISIN DE000A1K0201
IPO 24.03.1998
Shares
End of financial year 31 December
10,839,499 Designated sponsors
M.M. Warburg & CO,
Pareto Securities AS
Freefloat
71.0 %
30 GESCO AG – Company Presentation 21 December 202007 Appendix
Financial Calender
May 2021 August 2021
Q1 figures H1 figures
2021
27 April 2021 30 June 2021 November 2021
Annual Accounts Press Annual General Meeting Q3 figures
Conference / Analysts‘ Meeting
31 GESCO AG – Company Presentation 21 December 202007 Appendix
Shareholder contact
GESCO AG
Investor Relations
Johannisberg 7
42103 Wuppertal
Germany
Phone +49 202 24820-18
Fax +49 202 24820-49
info@gesco.de
www.gesco.de
32You can also read
