slideshow exel industries results 2014-2015
TRANSCRIPT
WORLD LEADERIN PRECISION SPRAYING SOLUTIONS
AGRICULTURAL SPRAYING SUGAR BEET HARVESTERS
SPRAYING AND WATERING
INDUSTRIAL SPRAYING
WORLD LEADER
IN PRECISION SPRAYING SOLUTIONS
One Core Business Line, Four Activities
Leader in spraying techniques
Manufacturing and automotiveConsumerAgriculture
The right dose, in the right place, at the right time“
2
Agricultural Spraying Sugar Beet
Agriculture
Sugar beet harvesters
Sugar beet harvesters
Terra Dos T4 – 40m3 Terra FelisTerra Dos T3 – 30m3
Lectra - Self-propelled harvester
M41- Self-propelled harvester
Lighttraxx - 20m3
4
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
A group of dynamic companies
7
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Global reach
8
Industry
Sugar beet
Sales
Large public
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
4280 88 89 94 101
132 138 127 135 137 134198
232
166 175239
301333
29080
152 164176 183
210
278 275266 270 277
296
456 452
382
430
525
740 775.4
725.2
Revenue at a record high
H2 H1
9
Current figures in millions of
euros
Changes in annual revenue
Over 3,760employees
Located in 29 countries, on all continents
27 industrial sites (14 in FRANCE)
Over 200 active patents
€725.2 million in revenue in 2014-2015
€775.4 million in revenue in 2013-2014
R&D: 6% of personnel, 4% of revenue
A family company run by the BALLU family for 60 years
World leader in spraying:No. 1 worldwide in Plant ProtectionNo. 3 worldwide in Materials ProtectionAn emerging leader in sugar beet harvesters
10
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Customer Service
Passionate about our products – Innovation
Excellence - Professionalism
Confidence – Initiative
Honesty – Transparency
Team spirit
Pride of belonging
Responsible behaviour
Our values
11
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Continue our international expansionAgriculture: Russia-Ukraine, the Americas, ChinaManufacturing: Asia, the Americas and BRIC
InnovationInnovation to create the sprayers of tomorrowPatent filings
Profitable and sustainable growthImproving productivityGenerating cashAcquisitions
Strategic objectives
12
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Expanding the international scope of revenue
73.2%
-
100
200
300
400
500
600
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Revenue in
France
International
revenue
Acquisition of SAMES
Acquisition of HARDI
Acquisition of AGRIFAC
Acquisition of HOZELOCK - TRICOFLEX - HOLMER
13
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Champion of growth
EXEL Industries, a
listed company worth
over €500 million
Stronger growth over
the last 3 years
www.croissanceplus.com
430
525
740775
10/11 11/12 12/13 13/14
14
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
2012-2013 2013-2014 2014-2015
740.2775.4
725.2
€ million
Agricultural precision spraying business dropped
€50 million
This activity accounts for 40% of revenue
Other Group activities are in line
Impact of currency movements: +€15.5 million
(USD and GBP)
Consolidated revenue 2014-2015
16
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
France Europe excl. CIS CIS North America South America Asia Africa Australia
2014 2015
27% France and 73% international
Revenue by geographic region 2014-2015
-22%
+8%-16%+78%
+4%
-30% +5%
-1%
17
France
Europe excl. CIS
CIS
North America
South America
Asia
Africa
Australia
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Consolidated revenue by activity 2014-2015€725.2 million (vs. €775.4 million)
24%
45%
18%
13%
18
-
50 000
100 000
150 000
200 000
250 000
300 000
350 000
400 000
Agricultural Spraying Sugar Beet Consumer Manufacturing
Agricultural
Spraying
40%
Sugar Beet
19%
Consumer
14%
Manufacturi
ng
27%
-16%
-3%
+6%
+2%
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
2014-2015 revenue by activity: counter-seasonal
19
0
20 000
40 000
60 000
80 000
100 000
120 000
Q1 Q2 Q3 Q4
Agricultural Spraying Sugar Beet Consumer Manufacturing
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
-
50 000
100 000
150 000
200 000
250 000
Q1 Q2 Q3 Q4
2012/2013
2013/2014
2014/2015
Seasonal nature of
consolidated Group revenue Agriculture + gardening
Industrial projects + sugar beet
20
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
€725.2 million in revenue compared to €775.4 million in 2014
Current Operating Income (current EBIT) €50.9 million vs. €54.6 million in n-1
Net income: €31.7 million vs. €34.0 million in n-1WCR = 106 days
Optimising the supply chain => reducing inventories
NFI: €74.8 million vs. €95.5 million
Main Financial Indicators
22
Ag
ricu
ltura
l Sp
rayin
gSu
ga
r be
et h
arv
este
rsSp
rayin
g a
nd
W
ate
ring
Ind
ustria
l spra
yin
g
Ch
an
ge
s in re
ve
nu
e
74
0.2
+1
.4+
38
-4.2
77
5.4
-65
.7+
15
.4
72
5.2
2013
revenue
Activity, H1
2014
Scope, H1
2014
Impact of
currency
movements,
H1 2014
2014
revenue
Activity, H1
2015
Impact of
currency
movements,
H1 2015
2015
revenue
23
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Breakdown of revenue by currency
USD
7,1%
AUD
3,21%
GBP
9,65%
DKK
1,16%
EUR73.32%
USD
8,3%
AUD
4,18%
GBP
10,70%
DKK
4,30%
EUR64.52%
2013-2014 2014-2015
24
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
2014-2015 results
25
in € million 2013-2014 2014-2015
Chg.in €
millionChg. %
Revenue 775.4 725.2 (-50.2) (-6.5%)
EBITDA 70.1 63.6 (-6.5) (-9.3%)as % of revenue 9.0% 8.8%
Net allocations to depreciation and provisions (-15.5) (-12.7) 2.9 (-18.5%)
Current EBIT 54.6 50.9 (-3.7) (-6.7%)as % of revenue 7.0% 7.0%
Non-recurring items (-2.3) (-5.8) (-3.5) 151.8%
Financial expenses (-2.4) (-2.5) (-0.1) 4.2%
Foreign exchange gains (+) foreign exchange losses (-) 2.2 0.9 (-1.3) (-59.1%)
Income before tax 52.1 43.6 (-8.6) (-16.4%)as % of revenue 6.7% 6.0%
Tax expense (-18.8) (-12.3) 6.5 (-34.6%)
Recognised using the equity method 0.6 0.3 (-0.3) (-51.3%)
Net income 34.0 31.6 (-2.4) (-7.0%)as % of revenue 4.4% 4.4%
EPS (in euros) 5.01 4.65
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Simplified balance sheet
Other
current
assets
37%
Other
current
assets
41%
Inventories
31%
Inventories
29%
Non-
current
assets
33%
Non-
current
assets
29%
Assets Liabilities
2015
€643 million
2015
€643 million2014
€684 million
2014
€684 million
Current
liabilities
31%
Current
liabilities
42%
Non-current
liabilities
25%
Non-current
liabilities
21%
Shareholders
' equity
43%
Shareholders
' equity
37%
26
Shareholders’ equity = €279.6 million, up €28.9 millionGearing: 26.8%Operational working capital improved by €5 million
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
-100,000
-50,000
0,000
50,000
100,000
150,000
200,000
1/8/07 1/2/08 1/8/08 1/2/09 1/8/09 1/2/10 1/8/10 1/2/11 1/8/11 1/2/12 1/8/12 1/2/13 1/8/13 1/2/14 1/8/14 1/2/15 1/8/15
NFI
Acquisition of Hardi Acquisition
s of Agrifac
and
Hozelock
Acquisition
of Holmer
Property
acquisition
200.000
150.000
100.000
50.000
0.000
-50.000
-100.000
Net financial indebtedness
27
Feb 15: 142.2
August 14: 95.7
August 15: 74.8
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Net financial indebtedness
28
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Lengthening of debt maturity:New, longer-term financing
Medium-term foreign currency financing => reduced
exposure to currency effects
Debt
Moins d'1 an 1 à 5 ans + 5 ans
2013-2014 65% 30% 5% 100%
2014-2015 35% 55% 10% 100%
Less than 1 year 1 to 5 years + 5 years
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Cash management / Gearing
in € million 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015
Net financial debt 12.5 (-4.7) 59.6 95.7 74.9
Equity 187.0 212.3 229.4 250.7 279.7
Gearing % 6.7% (-2.2%) 26.0% 38.2% 26.8%
30
Agricultural Spraying
Reduced sales (global crisis): Fall in prices: cereals down 15%, potatoes down 40%Farmers’ income down
Vineyards and orchards holding up wellStructures adapted to expected level of activity
Recovery within a yearExcess cyclical activity in France (Loi Macron to boost growth, ending mid-April 2016)
13/14 14/15
346.0
291.0
33
Prospects in Agriculture-16%
Agricultural Spraying
Award-winning innovations
Silver medal: Berthoud B-Safe
Bronze medal: Evrard Regulor 6+
Machine of the year: Stilla de Caruelle trailer
New products
Matrot Falcon self-propelled sprayer
Agrifac endurance self-propelled sprayer
Tecnoma 100% electric Voltis
Hardi Delta Force spray boom
New Hardi carried spraying system
Agriculture: Innovations in 2015
37
Agricultural Spraying
Need to grow agricultural production in the coming years
70% more by 2050! (source: FAO)
Need to invest in new sprayers:
To increase yields
To optimise spending on plant health products and fertilisers
To comply with new environmental requirements
Agricultural investments in emerging countries
To stem hunger worldwide (as per FAO)
To avoid deforestation
Agricultural commodity prices trending upwards
Agriculture: a growth industry!
Good long-term trends in agricultural precision spraying solutions
38
Sugar beet harvesters
Gain in market share:revenue stable despite the crisisTrade-in of second-hand machinery
Adapting the French structure in Cambrai (subsidiary of Holmer Germany at 1 July 2015)
Turkish subsidiary set up
Sugar beet harvesters 2014-2015
13/14 14/15
140.7137.0
40
Sugar beet harvesters
Customer segmentation, direct sales
42
Businesses and Agro holdingsHigh working speed (ha/h)Total ownership costZero downtime
Cuma – large farmersTotal ownership costSoil compactionFlexibility
FarmersSoil compactionFlexibilityIndependence
Sugar beet harvesters
Negative factors Yields up (trending +2% per year – this will rise to +4% per year with genetic selections) Sugar cane, Stevia, Aspartame, Isoglucose Sugar consumption rising 2% per year but this could drop due to health problems in the western world
Positive factors Longer operating periods for sugar refineriesBioethanol, biogas – methane digester, chemical industry Sugar consumption up in emerging countriesRussia: fleet set for upgrade in 2 yearsDevelopment area: USA, China
Long-term prospects
43
Sugar beet harvesters
Q4-30 12 rankings multiple award-winner at Agritechnica 2015:
Machine of the year“Green” machine prize
Easylift
Terra Variant: full-field logistics
World record: 86 ha in 24h
Innovation in 2015 – World record
44
Spraying and Watering
13/14 14/15
99.4 104.9
Favourable weather conditions over the yearIncrease in England (GBP effect)Slowdown in referencing in France and EuropeAustralian subsidiary set upMany innovations
Spraying and watering 2014-2015
46
Spraying and Watering
Expert in spraying and wateringHozelock: Large range of consumer spraying productsBerthoud & Cooper Pegler: premium brand for professionalsEasy fresh: mistingLaser: Professional sprayer for manufacturers
Significant innovations on the marketBerthoud electric weeder: Green PowerEasy fresh misterHozelock Flexi SprayHozelock Pico ReelWonder WeederUltra-Twist in 2015
Our assets
47
Spraying and Watering
Watering programmer:Controlled by smartphone (cloud controller)Controlled by the rising and setting of the sun (sensor controller)
Revolutionary drip irrigation watering system (easy drip)
Major innovations in 2015-2016
48
Spraying and Watering
GardeningA return to gardening valuesGrowth potential in senior and urban segmentsNo. 1 in EnglandPotential in Europe and internationally
Spraying Trend“Non-chemical” trend already seen in northern EuropeLoi Labbé to ban pesticides in France from 2020“Natural” weeders such as vinegar less effectiveSprayer used more oftenAdequate innovations: Green Power (thermal weeding)
Watering TrendGlobal warmingOpportunity for responsive local manufacturers with good logistics
Long-term consumer prospects
49
Industrial spraying
Growth in Industrial Distribution activityLess “system”Improving profitability
13/14 14/15
189.3 192.3
Industrial spraying 2014-2015
51
Industrial spraying
Continue international expansionAlready 30% of sales are in emerging countriesConsolidating our subsidiaries (Asia and Latin America) Subsidiary for Japan and Africa opened
Investments in R&DTechnology with better transfer rates“Cleaner” solutions (legislation on VOCs, REACH)More economic solutionsLaunch of new products
Manufacturing
52
Industrial spraying
Nanogun electrostatic paint spray gun
The lightest on the market at 488g
Ergonomics
Effective electrical charge: 60 kV, 80
mA
Transfer rates improved by 20%
53
Industrial spraying
ActivityGrowth in industrial distribution activity Positive USD effect: Competitiveness vs. US manufacturers, improved marginsSales office opened in JapanEntry to VW: Poznan project (Poland)
ProspectsFalls in South America and RussiaGain in market share and slight growthDeveloping our product rangeReferences with new car manufacturers
Activity and Prospects
54
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Continue our international expansionAgriculture: Russia-Ukraine, the Americas, ChinaManufacturing: Asia, the Americas and BRIC
InnovationInnovation to create the sprayers of tomorrowPatent filings
Profitable and sustainable growth Improving productivityGenerating cashAcquisitions
Enhance our leadership!
Strategic objectives
56
Agricultural Spraying Sugar beet harvesters Spraying and Watering
Industrial spraying
Q1 revenue: 21 December 2015
Annual General Meeting: 12 January 2016
Q2 revenue: 18 March 2016
H1 results: 21 April 2016
Q3 revenue: 23 June 2016
Agenda for 2015-2016
57