Presentation of FAMUR - LEADING EUROPEAN SUPPLIER OF INNOVATIVE SOLUTIONS - Famur SA
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Presentation of FAMUR
LEADING EUROPEAN SUPPLIER OF INNOVATIVE SOLUTIONS
2018 ® FAMUR
This presentation is the property of FAMUR S.A. Its processing, copying or saving on information carriers, in whole or in part, or making it available, in whole or in part, to third parties requires prior written consent of FAMUR S.A. Any statements contained in this presentation which do not refer to historical facts are ‘forward-looking statements’. Such forward-looking statements, in particular where they refer to future financial performance or potential development of the FAMUR Group, should not be regarded as firm forecasts. FAMUR S.A. can give not assurance that any predictions regarding the future will materialise. Future financial performance may significantly differ from projections. 2018 ® FAMUR
AGENDA
1. Introduction
2. Equity story
3. Market environment
4. Financial highlights
5. Development prospects
3 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
Key facts
Leading European supplier of end to end solutions for the mining industry, transport,
transshipment and power industries
Dynamic growth in foreign markets
Strong M&A track record - 16 successful acquisitions
Profitability leader in the industry in the long term
Majority Shareholder: TDJ: 57%
11 5,000+ PLN 1,905m* PLN 423m* 40%*
production plants employees revenue EBITDA exports
PLN 1,460m ** PLN 308m ** 38% **
* Combined pro forma FAMUR & KOPEX 2017 full-year data
** FAMUR Group formal consolidation 2017
4 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
AGENDA
1. Introduction
2. Equity story
3. Market environment
4. Financial highlights
5. Development prospects
5 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
Key Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
6 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
Key Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
7 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
1 15 years of market consolidation
Single product Development of Famur’s IPO Stable high margin revenue pillar: Diversification: development of Strategic market
(shearer loader) Underground product roadheaders operating lease Surface segment consolidation in region
portfolio
2002 2003 2005 2006 2007 2011 2012 2014 2015 2016 2017
8 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
1 Latest market consolidation
Market
Synergies Effects
consolidation
REVENUE SYNERGIES Dominant position on domestic
Combining the know-how and leveraging Revenue market and leading European
the capabilities of the Entities in engineering provider of complex solutions
and sales areas, both in Poland and abroad
Strong position in Poland and a comprehensive Profitability Margin: top level in the industry
portfolio
Leveraging the strengths of Entities to expand
on foreign markets
Efficiency ROE increase through optimization
COST SYNERGIES:
Headcount restructuring
Divestments Optimization of resources Debt Net debt/ EBITDA < 2 maintained
and manufacturing processes
Centralisation of sales, sales support, Positive operating cash flows
co-operation and logistics, integration Cash Flows enabling acquisitions or dividend
of remaining central functions payment
9 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR
Key Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
10 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR2 Delivery of end to end solutions
Machinery and Equipment End-to-end Solutions
From a manufacturer of narrow-use ... to a supplier of end-to-end solutions for the mining,
mining machines and systems ... transport, transshipment and power industries.
Design Manufacturing Delivery Erection Commissioning Service
11 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR2 Comprehensive portfolio of products
1. Shearer loaders
2. Powered roof support systems
3. Scraper conveyors
14 4. Roadheaders
13 5. Drilling and bolting rigs
16 12 6. Haul trucks
18
15 7. Suspended monorail systems
11 17
8. Underground belt conveyors
19
9. Mining electrical equipment
11
10 10. Mine shaft
7 11. In-plant continuous transport
20 12. Surface belt conveyors
5
13. Stacker-reclaimers
3
14. Bucket-wheel excavators
9
2 1 15. Wagon tipplers
8
16. Surface infrastructure
17. Container cranes
6 4
18. Ship-to-shore gantry cranes
4 19. Power plant's coal feeding system
20. Loaders and dinting loaders
12 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR13
2
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Blast hole drillers
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Dragline excavators
+
+
Haulers
Hard rock mining
+
+
Excavators
Surface mining
+
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Bucket-wheel excavators
+
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+
Belt conveyor systems
Soft rock mining
+
+
Stackers
+
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+
Powered roof support systems
Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH
+
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Shearer loaders
Production
+
+
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Scraper conveyors
Conveyor and transport
+
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+
equipment
Longwall systems
+
+
+
Roadheaders
works
Preparation
+
+
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Bolter miners
Soft rock mining
+
+
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Continuous miners
+
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+
+
Haul trucks
Crushing and continuous
+
+
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transport equipment
Room-and-pillar system
Underground mining
+
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Roof bolters
+
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Drill rigs
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Haul trucks
+
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Crushing equipment
Hard rock mining
Hard rock mining
+
+
Roof bolters
Shafts
+
Shaft drilling
Product range – comprehensive product portfolio for mining industry
Power supply and I&C Electrical and
+
+
+
equipment I&C
2018 ® FAMURKey Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
14 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR3 Global presence
Key foreign Clients:
RUSSIA
GERMANY
Sales and
Sales office
service center
SERBIA KAZAKHSTAN
Production plant Service center
UKRAINE
Service center INDONESIA
Representation office
RSA
Production Plant
CHINA
Joint venture
INDIA Production Plant
Sales center and Service center
The map presents countries where FAMUR products operate, as well as localizations of international Famur subsidiaries.
15 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR3 Geographical split of revenue
Share of exports in sales, 2013–2017 Revenue by country
Other
Czech Republic 6%
50% 1%
South Africa
1%
Turkey
38% 3%
Austria
30% 4%
26% 27% 2013
Germany
2014 4% Poland
18% 2017 62%
2015
2016
2017
Russia
2022 target 19%
Go Global – strategy of extensive global expansion with the assumption of being a preferred supplier of high quality end to end solutions for our
sectors around the world
The geographical split of revenue is variable, with Russia, Kazakhstan, Turkey, Argentina, US, Australia, India and Mexico considered the most
promising markets
16 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURKey Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
17 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR5 Leader in terms of margins
FAMUR outperforms its competitors in terms of EBITDA margin
41,8%
32,5%
28,5%
29,6% Famur
23,1%
23,8% Sandvik
21,1%
19,6% 21,5%
Komatsu
19,4%
Caterpillar
15,6%
JoyGlobal
2010 2011 2012 2013 2014 2015 2016 2017
Source: Bloomberg
*) Joy Global (currently: Komatsu Mining Corp) - EBITDA Q1.2017 LTM
18 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR5 Stable liquidity
OCF cumulatively (PLNm)
2 367 2 426
Net debt (PLNm) 2 175
1 861
1 746
1 349
1 072
659
502
191 239
251
73 76 127 73 80
65 15 18 13
-22
-13 -31 -138 -133
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Q1 2018
19 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR5 Conservative debt approach
WE PAID OUT PLN 700M IN DIVIDEND PRUDENT DEBT MANAGEMENT STRATEGY
Over the past seven years, we have paid our shareholders over
The Group has maintained low net debt, both historically and at
PLN 700m in dividends: PLN 300m in 2011, and PLN 404m in 2014.
present. Despite consolidation of the Kopex Group’s balance sheet,
at the end of Q1 2018, the FAMUR’s gross cash position was PLN
607m, with loans and borrowings, lease obligations and bonds at
PLN 620m – a net debt position of PLN 13m.
SAFE NET DEBT/EBITDA RATIO
2012 2013 2014 2015 2016 2017 Q1
2018 Net debt EBITDA LTM Equity
0,7 PLN 13m PLN 340m PLN 1,586m
0,4 0,4 0,4 0,3
0,1 0,1
-0,1
-0,4 -0,3
-0,5
Our stable financial situation and prudent cash flow policy allow us to
-2,4 take advantage from market opportunities for development as well as
pay dividends to our shareholders.
20 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURKey Highlights
1 Leading European Player with proven track record of successful M&A
v
2 Wide ranging, innovative product offering
3 Clear Go Global strategy focused on internationalization with blue chip customer base
4 Leading financial results with significant further upside potential
5 Highly experienced management team and supportive majority shareholder
21 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR6 Professional management
Adam Toborek Waldemar Łaski
Vice President of FAMUR
President of Surface Segment
Bartosz Bielak Longwall Systems Segment
Vice President of FAMUR
Responsible for strategy and
Responsible for strategy and
development
development
Dawid Gruszczyk Henryk Jurczyk
Mirosław Bendzera Vice President of FAMUR President of Electrical Equipment
President of Management Board of Roadheader Systems Segment Segment
FAMUR
Beata Zawiszowska
Vice President of FAMUR
Responsible for prudent
financial policy
Zdzisław Szypuła Dariusz Ginalski
Vice President of FAMUR President of Mining Services
Transportation Systems Segment Segment
22 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR6 Reliable majority shareholder
Family-owned investment firm focused on long term value generation.
Investing in controlling Investing in ambitious Investing in technologically Investing in liquid assets Investing in education
stakes in mature companies development projects in the advanced innovative start- with short-term and personal
with potential for growth. areas of commercial, ups that are led by investment horizon and development.
residential, industrial outstanding entrepreneurs low risk profile.
Buidling long term value by agricultural and greenfield We believe that
leveraging decades of real estate. investing in knowledge
business experience in and human potential
actively supporting creates the greatest
companies and their value added for society.
management teams.
To date, we have helped
Our investments: Our investments: Our investments: more than 500 children
to receive top-quality
education.
Learn more at: www.tdj.pl
23 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURAGENDA
1. Introduction
2. Equity story
3. Market environment
4. Financial highlights
5. Development prospects
24 Presentation
Presentation of
of FAMUR.
FAMUR.PROVEN
PROVENSOLUTIONS,
SOLUTIONS.GLOBAL
FLOBAL REACH
REACH 2018 ®
2018 ® FAMUR
FAMURPositive global demand outlook
Company’s
Key markets ddemand forecast Main products
vs 2017
POLAND Complete range products: longwall systems, conveyors, transport and handling systems, power systems
RUSSIA AND KAZAKHSTAN Longwall systems, transport and handling systems, transshipment machinery for open-pit mining
TURKEY Longwall systems, transport and handling systems, transshipment machinery and machinery for the power industry
CHINA Longwall systems, transport and handling systems, transshipment machinery and machinery for the power industry
US Longwall systems, transport and handling systems, transshipment machinery and machinery for the power industry
ARGENTINA AND MEXICO Surface transport and handling systems, transshipment machinery and machinery for the power industry
INDIA Complete range of products
OTHER CEE COUNTRIES Surface transport and handling systems, transshipment machinery
THE BALKANS Transport and handling / transshipment systems
SOUTH AND CENTRAL
Complete range of products
AFRICA
According to the International Energy Agency (2017 report ), the volume of energy generated from coal will increase from 9,282 TWh in 2016 to 10,086 TWh in
2040, i.e. by 9% (CAGR of 0.4%).
Coal will remain the main energy source for electricity production in China and India, and Southeast Asia will triple the amount of electricity generated from coal.
25 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURGlobal coal markets followed by long tail
Bangladesh plans to shift to coal
generation (50% by 2022) but current
9 production covers 2%
8,5 Some potential
investments may
8 Vietnam to build 70 new coal-fired materialize in next years;
power plants by 2030 and drive UG potential also for LW in
coal mining potash
4 3,6
2017
UG Coal
Mining Mongolia has ~10% of world's coal
CapEx reserves but only 17 coal mines
USD bn 1,4 (mostly open cuts) – large long term
0,9 potential
1
0,5 0,5
0,3 0,2 0,1
0,1 0,1 0,1 0,1 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0 0,0
0
Slovenia
Spain
Vietnam
Colombia
Brazil
Iran
Belarus
Botswana
Germany
Pakistan
Mongolia
Bangladesh
China USA Australia India South Indo- Kazak-
Russia Ukraine CanadaCzech Rep. Philipp-inesTurkey
Africa nesia chstan
Growth
1,4 0,1 0,6 0 0,1 0 0 0,2 0 0 0 0 0
CapEx
SIB
7,1 3,5 0,8 0,9 0,4 0,5 0,3 0 0,1 0,1 0,1 0,1 0,1
CapEx Source: USGS, SNL, BCG Mining Market Navigator, BCG Analysis
26 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURSignificant domestic capex growth expected since 2018
Total planned CAPEX by company (PLN m) Cumulative CAPEX 2018-2020 (PLN m)
+24%
High level
Total
equipment CAPEX2
CAPEX1
2,588 2,538
estimates
2,450
8023 241
3,277 2,698
1,410 1,360 1,360
7576 2273
1,110 2,040
970 2,040 2,040 4130 1239
880
620
290 396 406 408 422
1235 371
285 215 260 305 235
350 60 350 100 350 60 350 60 350 60
2016 2017 2018 2019 2020 6120 1836
1. Total cumulative CAPEX for given period including development and sustaining CAPEX (including 180 54
development works), excluding rental as captured in Kopex;
2. Initial estimates of equipment CAPEX based on expert interviews and BCG benchmarks
3. In May 2017 Tauron Wydobycie signed the contract for 1st phase of mineshaft "Grzegorz" construction 1050 315
with consortium of Famur Pemug and Kopex. Value deal: 227,87M PLN
27 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH Source: Company reports, press, expert interviews, BCG analysis 2018 ® FAMURAGENDA
1. Introduction
2. Equity story
3. Market environment
4. Financial highlights
5. Development prospects
28 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURFinancial highlights
2017 COMBINED
2016 2017* Q4 2017 Q1 2018
+
PLN 1,030m PLN 1,460m PLN 1,905m PLN 493m PLN 502m
Revenue Revenue +42 % Revenue
Revenue +2 % Revenue
PLN 239m PLN 289m PLN 404m PLN 93m PLN 103m
EBITDA EBITDA ** +21% EBITDA ** +11%
EBITDA ** EBITDA
23% 20% -15 % 21%
EBITDA margin **
19% +11%
21%
EBITDA margin EBITDA margin **
EBITDA margin ** EBITDA margin
PLN 114m PLN 114m 0%
PLN 172m PLN 35m PLN 52m
EBIT EBIT ** EBIT ** +49%
EBIT ** EBIT
PLN 94m PLN 82m -13 % PLN 124m PLN 20m PLN 39m
Net profit Net profit** Net profit** Net profit** +95% Net profit
PLN 133m PLN 80m -213m PLN 80m PLN 80m +67m
PLN 13m
Net cash Net debt Net debt Net debt Net debt
NOTES: * Kopex results are consolidated since H2 2017 / ** EBIT, **EBITDA, **EBITDA margin, Net Profit - normalized i.e. excluding Q4 2017 one-offs
29 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURReporting segments and split of revenue
UNDERGROUND SURFACE ELECTRICAL EQUIPMENT MINING SERVICES
Revenue split by segment Revenue split by source
The share of aftermarket revenues
13% increases gradually and gross 10%
margin level reaches 30-45%
5%
17%
Operating leases of shearers and
roadheaders provide a recurring and
highly profitable revenue base.
16%
66%
70%
Underground Surface Electrical Equipment Mining Services Long term contracts Aftermarket & services Operating lease
30 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURAGENDA
1. Introduction
2. Equity story
3. Market environment
4. Financial highlights
5. Development prospects
31 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURGlobal expansion scenarios
Target markets Lessons learned from market leaders
Organic growth
RUSSIA Organic growth investments – building new representative offices in the
foreign markets
TURKEY
INDONESIA
Strategic acquisitions
MEXICO
Acquisition of a foreign targets– expansion of the know-how, production
INDIA base and sales markets
CHINA BFCTP SAS
USA
Strategic alliances / joint ventures
CANADA Agreements on joint operations in particular markets – expansion of
markets, mutual benefits for the partners
AUSTRALIA
Strategic Alliances /
acquisitions Joint Ventures
32 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURThank you
for your attention!
Olga Panek
Investor Relations Director
opanek@famur.com.pl
+48 695 700 320
+48 32 359 65 05
33 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURAppendices
Other information
34 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUROur values
BELIEF RESPONSIBILITY COOPERATION OPENNESS CREDIBILITY
We believe in the We make bold and well- We trust each other and We are loyal towards We always keep
common vision considered decisions form a tight-knit team one another and our word
communicate openly
We follow our We take responsibility for We listen and learn from and with honesty We are reliable
set of values our and our team’s others by considering and honest
decisions and actions each voice in discussion We respect diversity of
We focus on the opinions We are committed
future We require initiative of After making the decision, to fair play
ourselves we act as one to achieve We are open to change
We believe that our goal and innovations We meet our
investment in education We always act in the commitments
and development generates best interest of the We celebrate the We discuss the
the highest value for firm success of our people by mistakes we make and
society promoting them in the learn from them
organization
35 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURShareholder structure
Shareholder structure as at 13th April 2018:
• Listed on Warsaw Stock Exchange
• Ticker: FMF
• Index: mWIG40
25,93% • Index: MSCI
9,30% 58,45%*
6,32%
Other
* including Tomasz Domogała shares
36 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMUR100 years of experience
.
1922 in Piotrowice a company is set up, "Stephan, Froelich – In2002 TDJ – private investment company acquires
Kluepfel AG", manufacturing simple steel structures and mining FAMUR shares and begins market consolidation process.
machinery components.
2002
37 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURKey production facilities
SURFACE
KATOWICE (FAMUR)
UNDERGROUND
KONIN (FUGO) *
PIOTRKÓW TRYBUNALSKI (PIOMA)
ZGORZELEC (FAMAGO) *
KLUCZBORK (FAMAK)
CHORZÓW (ELGÓR + HANSEN) *
KATOWICE (REMAG)
ZABRZE (KOPEX) *
GORLICE (GLINIK)
RYBNIK (RYFAMA) *
NOWY SĄCZ (NOWOMAG)
* Acquired in 2017
38 Presentation of FAMUR. PROVEN SOLUTIONS, GLOBAL REACH 2018 ® FAMURYou can also read
