capital increase and strategy - kuka
TRANSCRIPT
Capital Increase and Strategy Dr. Till Reuter - CEO KUKA AG, Automatica 2010
www.kuka.com KUKA Aktiengesellschaft | Seite 2 I 08. Juni 2010
Systems Robotics
Advanced Robotics Industrial Robotics
Strong positions1
#2 Body-in-white Europe #2 Body-in-white USA
Leading position through quality and innovation
Strong reputation among customers
#1 Europe (Automotive and General Industry)
Among Top 3 worldwide
Strategic targets
BRIC Nations: expand market share
Adjust capacity at Augsburg location
Lightweight robot: next development stage - for health care and assembly
Penetrate market for health-care robotics and high-tech operating systems (market size: USD2 3.3 billion by 2014)
Introduce new generation of industrial robots
Safeguard automotive business
Expand general industry business
Strategy Boost shareholder value
1) KUKA and IFR (International federation of robotics) 2) 2009 study by BCC Research
www.kuka.com KUKA Aktiengesellschaft | Seite 3 I 08. Juni 2010
Offering structure
Public offer in Germany International private placement with institutional investors according to Regulation S
A 1 for 6 rights issue of 4,655,441 new no par value bearer shares of KUKA AG Subscription price for new shares amounts to EUR 9.75 per share Gross proceeds total approx. EUR 45.4mn Firm subscription commitments from core shareholders totalling approx. EUR 9.5mn
EUR 7.5mn from Grenzebach Maschinenbau GmbH EUR 2mn from Wyser-Pratte Management Co., Inc
Further backstop commitment from Grenzebach Maschinenbau GmbH of EUR 7.5mn1
Upfront placement of 730k shares valuing EUR 7.1mn not subscribed for by core shareholders Full dividend entitlement for new shares from January 1, 2010
Transaction structure
1) Backstop commitment for the rump placement if the total subscription and placement amount does not exceed EUR23mn
Consortium Joint Bookrunner: UniCredit and Commerzbank
Capital increase Transaction overview (I)
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6 months soft lock-up period for the company 6 months soft lock-up period for Grenzebach Maschinenbau GmbH
Lock-up
Timetable
07 June: Announcement of the transaction 09 June: Beginning of subscription period and rights trading 18 June: End of subscription rights trading 22 June: End of subscription period 23 June: Rump placement 25 June: Settlement / start trading of new shares
Strengthening of balance sheet and funding working capital requirements Development and expansion of the newly formed business unit Advanced Robotics Funding further growth in the business segments Robotics and Systems
Use of proceeds
Capital increase Transaction overview (II)
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Shareholder structure pre rights issue Shareholder structure post rights issue1
1) Calculation is based on firm subscription commitments of core shareholders
Free float 60.6%
Wyser- Pratte 8.3%
Grenzebach 26.6%
Free float 63.2%
Wyser- Pratte 7.8%
Grenzebach 25.2%
Capital increase Shareholder structure
KUKA 4.5%
KUKA 3.9%
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Expand BRIC1 business
Establish Advanced Robotics business unit
Continue comprehensive cost reduction program
New generation of industrial robots to
safeguard market position automotive and expand
general industry
1 2
3 4
Increase valuation of
KUKA
Strategy
Increase value by profitable growth strategy
1) BRIC: Brasil, Russia, India and China
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KUKA QUANTEC
KR C4
smartPAD WorkVisual
New generation of industrial robots: QUANTEC New benchmark for customer value
QUANTEC establishes a new industry standard
Significantly lower production costs (e.g. hardware replaced by software)
Strong increase in customer value
Fewer robot types, therefore complexity substantially reduced
Easy to use through “plug & automate”
Increase applications through innovation focus
1
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124
1,034 x 8
General Industry Automotive
Secure automotive and expand general industry
Opportunities from shifts in market structure Secure automotive BRIC/ emerging markets: Growth in car sales lead
to expansion of OEMs’ local manufacturing facilities
Europe: investments in new production technologies (e.g. automation in final assembly)
Expand general industry Low Robot density1 in general industry provides
growth opportunities
1) Robots per 10,000 worker; IFR – World Robotics 2009
1
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BRIC markets: expand market share
Orders in BRIC more than doubled in Q1/10
1) Forecast for 2010, Germany Trade & Invest 2) Boston Consulting Group, 2010
Russia 2010 GDP growth forecast1: 3% Automotive market to 20142: 15% KUKA: 17 employees
China 2010 GDP growth forecast1: 9% Automotive market to 20142: 5% KUKA: 138 employees
India 2010 GDP growth forecast1: 6% Automotive market to 20142: 9% KUKA: 57 employees
Brazil 2010 GDP growth forecast1: 5% Automotive market to 20142: 3% KUKA: 55 employees
2
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Establish Advanced Robotics
Bundling future projects of KUKA 3
Automotive General industry
Lightweight robots Assembly Health care
Development
Industrial robots Established Established
KUKA’s strong market position based on quality and innovation
New products from the Advanced Robotics unit secure KUKA's profitable growth strategy
Target markets health care and assembly are highly profitable
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Cost reduction program
Increase of recurring savings in 2010 4
Areas of activity Processes and structures - Reduction of personnel costs/ overhead Lean production - Capacity flexibilization Purchasing Design to cost - e.g. Quantec Indirect costs e.g. external service providers, etc.
~65-701
(€ millions)
Cost reduction targets
2010 2009
~70
Recurring cost reduction targets
One-off cost reduction targets 1) Cumulated 2009 and 2010
www.kuka.com KUKA Aktiengesellschaft | Seite 12 I 08. Juni 2010
Summary Capital increase is a key building block to secure financing until March 31, 20121 Strategic road map clearly defined and in execution Long-term: transform from automotive components supplier to a hightech company
Outlook for 2010 Economic recovery and turnaround continuing Recurring cost savings of € 65-702 million planned for 2010 Mid single-digit growth in sales Positive operating EBIT (before special items)
Outlook
Positive operating EBIT in 2010
1) Prerequisite: Capital injection and refinancing of convertible bond by August 31, 2011 2) Cumulative 2009 and 2010
New generation of industrial robots: QUANTEC Manfred Gundel - CEO Robotics
www.kuka.com KUKA Aktiengesellschaft | Seite 14 I 08. Juni 2010
KUKA QUANTEC
KR C4
smartPAD WorkVisual
New generation of industrial robots: QUANTEC Lower production costs and higher customer value
New generation of industrial robots: Lower manufacturing costs and higher customer value
Number of robot types for largest market segment reduced by 50%
Payload and reach extended
More applications and reduction of complexity - plug and automate
www.kuka.com KUKA Aktiengesellschaft | Seite 15 I 08. Juni 2010
New generation of industrial robots: QUANTEC Trendsetting technology New mechanics (QUANTEC) 90-300 kg = one robot series 25% less space 12% lighter 25% shorter cycle time 25% less energy
New software (WorkVisual) Efficient programming Faster startup Plug&Play
New controller (KR C4) Software replaces hardware
Open interfaces & standards Quick integration of new apps
Integrated safety for new human-machine applications Energy consumption cut by up to 90%
New operator interface (smartPAD) One operator interface for several robots Different national standards integrated 6D mouse enables efficient programming
www.kuka.com KUKA Aktiengesellschaft | Seite 16 I 08. Juni 2010
New generation of industrial robots: QUANTEC Robot generations compared
Up to 12% lighter and requires 25% less space - reach and payload unchanged
Lighter materials improve dynamic performance and cut cycle times by up to 25%
Energy consumption cut by up to 25%
Smaller footprint expands application possibilities in manufacturing
QUANTEC enables compact cell concepts in the high payload area
www.kuka.com KUKA Aktiengesellschaft | Seite 17 I 08. Juni 2010
Q KUKA
X Competitor X
Y Competitor Y
New generation of industrial robots: QUANTEC Significant performance advantages
Competitive advantages:
Greatest coverage in the "high payload" range
Only one robot series in the largest market segment
QUANTEC is significantly lighter, yet more compact
Tailor made for various AUTOMOTIVE and GENERAL INDUSTRY requirements
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2009 2011 2010 2012
Start delivery to automotive
Start delivery to general industry K 2010 (international plastics industry fair) GIFA 2011 (international foundry industry fair)
AUTOMATICA – world premier
Old generation industrial robots completely replaced
New generation of industrial robots - QUANTEC Steps for the change of product program
Automotive, General Industry and BRIC-Nations Martin Sträb - CMO KUKA AG
www.kuka.com KUKA Aktiengesellschaft | Seite 20 I 08. Juni 2010
Secure automotive and expand general industry
Marketing and sales strategy for profitable growth Growth drivers Automotive: investments in innovative
technologies foremost in Europe General industry: - Increasing cost pressure and low robot
density drive demand - Strong market position supports distribution
of new products in Europe - Focus on 7 core sectors BRIC nations: manufacturing relocations
boost demand for robot-based automation solutions
www.kuka.com KUKA Aktiengesellschaft | Seite 21 I 08. Juni 2010
Automotive industry in transition Robotics: orders received strongly
increased by +87.1% in Q1/10 Production starts for new models1:
247 (2011) and 286 (2012) Number of cars manufactured will grow
4.6% and 9.3% p.a. (2010-2014)2
New materials in fuel-efficient and lighter vehicles require new manufacturing systems (e.g., electric and hybrid vehicles, etc.)
Increased demand for flexible production systems in order to cut costs
Secure automotive
Driver of future growth
1) CSM production forecast 2) J.D.Power
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Secure automotive
OEM FACTORIES and KUKA locations OEM-manufacturing facilities and KUKA locations
Americas Europe/ South Africa Asia/ Pacific
Arg
entin
a
Bra
zil
Can
ada
Mex
ico
U.S
.
Bel
gium
Ger
man
y
Fran
ce
UK
Aus
tria
Pol
and
Por
tuga
l
Rum
ania
Rus
sia
Sw
eden
Slo
vaki
a
Spa
in
Sou
th A
frica
Cze
ch R
epub
lic
Turk
ey
Chi
na
Indi
a
Taiw
an
Thai
land
Viet
nam
www.kuka.com KUKA Aktiengesellschaft | Seite 23 I 08. Juni 2010
Expand general industry
High potential due to low robot density KUKA advantages About 60% of all industrial robots were
sold to general industry (2008) Robot density (robots per worker): Automotive (Germany): 1,034/ 10,000 General industry: 124/ 10,000 Robot production facilities in Germany
and in China USP due to joint system solutions by
Robotics and Systems (e.g., solutions including lightweight robots from KUKA)
www.kuka.com KUKA Aktiengesellschaft | Seite 24 I 08. Juni 2010
Expand general industry
Differentiate by industry and region
Action plan
Penetrate new market segments
Systematically expand successful sales matrix (region/sector)
Repeat proven solutions Expand network of
systems integrators
Focus on following core sectors of general industry: Metalworking Machine tools Food Plastics Foundries Aerospace Solar
Mostly targeted countries of core sectors: Germany, China, Italy, Japan, Korea and the U.S.
www.kuka.com KUKA Aktiengesellschaft | Seite 25 I 08. Juni 2010
Advantages of KUKA Long time strong customer
contact and local facilities Strong growth with
German OEMs Excellent position in
different business segments
Focus Expanding local partnering Expanding number of local
locations (customer focus & proximity)
BRIC Nations: expand market share
Strong starting position in growth markets
1) (S) stands for Systems and (R) for Robotics 2) As of Dec. 31, 2009 3) Examples only, information not final
Founded1 1
India
Russia
Brazil
China
GI: Nestlé, J&J Automotive: VW, Ford Focus: BIW, metal
G: RSM, CTS Automotive: AvtoVAZ Focus: Metal, food
GI: Indo Rama, BHEL Automotive: VW, Tata, Mahindra & Mahindra Focus: BIW
GI: Huaheng, Brimet Automotive: VW, Chery, JEE Focus : BIW, tabbaco, metal
Founding details: 1997 Headquarters: Sao Paolo
Founding details: 2007 Headquarters: Moscow, Togliatti
Founding details: 2006 Headquarters: Gurgaon, Pune
Founding details: 2000 Headquarters: Shanghai
Employees total: 55 Locations total: 2
Employees total:17 Locations total: 2
Employees: 57 Locations total: 3
Employees total: 138 Locations total: 10
Expanded2 2 Growth3 3
Advanced Robotics Bernd Liepert - CTO KUKA AG
www.kuka.com KUKA Aktiengesellschaft | Seite 27 I 08. Juni 2010
Advanced Robotics
Innovation drives growth and profitability
Established (e.g. welding)
Demanding (e.g., handling)
Sensitive (e.g., final assembly)
Market segments
App
licat
ions
/ ser
vice
s
Collaborative (e.g. health care)
Automotive General industry New segments and other industries
Health care systems
Small, medium-sized companies
Assembly/manufacturing areas (automotive and non-automotive)
KUKA is a market leader in automotive (mechanical and plant engineering/robots)
www.kuka.com KUKA Aktiengesellschaft | Seite 28 I 08. Juni 2010
Assembly systems Robots used in many areas
Rear axle and front axle pre-assembly
Chassis and drive component assembly
Manufacturing applications: engine, transmission, steering, brakes, roof module, seats, etc.
Assembly of: - Doors - Hoods/ hatches - Fenders - Protective cladding Seam sealing Gluing of hybrid materials (aluminum/ CFRP/ steel)
Power train assembly Assembly: painting and car body
Final assembly
Joining chassis modul in car body
Door attachment Cockpit installation Windshield preparation
and installation Sunroof and glass roof
installation Seat installation Gas tank installation Wheel installation Roof liner installation
www.kuka.com KUKA Aktiengesellschaft | Seite 29 I 08. Juni 2010
Industrial robot cell Robot-based assembly
Manual labor
Fixed automation
Assembly systems Assembly focus: today tomorrow
Moderately flexible and large footprint
Significant engineering and programming expense
Little flexibility Expensive customized
solutions Extensive engineering
Very flexible High labor costs
Small footprint No protection necessary New application possibilities due to expanded
performance capabilities Integrated software simplifies programming and
startup
www.kuka.com KUKA Aktiengesellschaft | Seite 30 I 08. Juni 2010
Revenue potential of robot cells
Service
Robot Robot
Service
Engineering and
application Doubling
possible
KUKA: robot technology and systems integration under one roof
Assembly systems:
KUKA can bundle robots and systems integration into one package for automotive
Robots without systems integration
Robots with systems integration
Assembly systems Higher share of wallet
www.kuka.com KUKA Aktiengesellschaft | Seite 31 I 08. Juni 2010
Diagnostics
Surgeries
Therapeutics
Others
Health care
Applications for strong growing health care market
Angiographics & cardiac catheters,
imaging, etc.
General surgery, cardiology, gynecology and urology, etc.
Radiation therapy, new therapies, etc.
Rehabilitation, sports medicine, hospital automation, etc.
Strong growth with high margin
potential
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Pickup and delivery services
Automated laboratories (24/7) Home
assisted care
Support invasive OP
Navigation-supported positioning
Patient positioning
ultrasound
Fully automated patient positing
Flexible x-ray C-arm
Reha-robot
Robots helps nurses
Patient lifting
Equipment and room disinfection Appli-
cations
Document access/ PACS
Future applications Existing products
Health care Increasing range of applications
Diagnostic Procedural Rehabilitation Nursing care Support Admin.
www.kuka.com KUKA Aktiengesellschaft | Seite 33 I 08. Juni 2010
This presentation contains forward-looking statements based on assumptions and estimates made by the management of KUKA Aktiengesellschaft. Although management is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results could deviate significantly from these assumptions and estimates due to a variety of different factors. Some of these factors could, for example, include a change in the overall economic climate, exchange rates and interest rates, as well as changed conditions in the markets themselves. KUKA Aktiengesellschaft makes no guarantees that future developments and actual future results will align with the assumptions and estimates in this presentation, nor does it accept any liability for same. © Copyright 2010 – KUKA Aktiengesellschaft – All rights reserved.
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