zumtobel group ag q1-q3 2017/2018 · pdf file2003 – 2012 osram ... project manager,...

Zumtobel Group AGQ1-Q3 2017/20186 March 2018

| |6.03.2018Q1-Q3 2017/18 2

Weak revenues dynamic leads to lower profitabilityFinancials Q1-Q3 FY 2017/18 at a glance

� Group revenues fx-adjusted 4.6% below prior year, UK is the biggest driver for this decline

� Revenues from the sale of LED products increase by 1.4% and the LED share of Group revenues stands now at 79.2%.

� Group adj. EBIT decreases from EUR 62.0 million to EUR 20.5 million driven by:

� missing contribution from revenues growth

� ongoing price pressure

� substantially higher warranty provisions

� Construction of the new production plant in Serbia on plan

� Sale of Les Andelys (France) plant finalised

� Adjustment of revenue and earnings guidance for the full 2017/18 financial year on 24 January 2018

| |

-1.6%(fx-adj. +0.1%)

6.03.2018Q1-Q3 2017/18 3

Q1 Q2 Q3 Q4

Lighting Segment

5.4%-0.2%

0.5%

Q1 Q2 Q3 Q4

214.1

248.7 244.7266.0

6.3%

Adjusted EBIT1)Revenues

Adjusted EBIT 2016/17Adjusted EBIT 2017/18 in EUR million

Adjusted EBIT 2016/17Adjusted EBIT 2017/18as a % of revenues

Revenues 2016/17In EUR million


232.4252.9

24.1

15.7

9.1%

1) Reported EBIT adjusted for special effects

Revenues Q1-Q3 FY 2017/18 EUR 693.5 million (minus 7.2%)Revenues Q1-Q3 FY 2016/17 EUR 747.0 million

Adjusted EBIT Q1-Q3 FY 2017/18 EUR 14.0 million (margin of 2.0%)Adjusted EBIT Q1-Q3 FY 2016/17 EUR 46.4 million (margin of 6.2%)

6.6

2.8%

7.0

2.8%

13.2

Significant decline in revenues as well as in adjusted EBITLighting Segment – Revenue and EBIT development

234.7

-11.8%(fx-adj. -10.4%)

-0.4

-7.9%(fx-adj. -5.5%)

1.2

| |

-8.7%(fx-adj. -6.6%)

6.03.2018Q1-Q3 2017/18 4

Q1 Q2 Q3 Q4

Components Segment

11.3%

9.9%

6.1%

Q1 Q2 Q3 Q4

84.897.3

10.1

9.0%






12.793.4

13.6%


9.3

10.3%

91.1

8.8

95.5

8.8

9.2%

88.8

Continuation of negative growth dynamicComponents Segment – Revenue and EBIT development



-8.7%(fx-adj. -6.6%)

90.2

-3.4%(fx-adj. -0.9%)

8.9

-7.0%(fx-adj. -3.8%)

5.2

| |

-2.6%(fx-adj. -0.7%)

6.03.2018Q1-Q3 2017/18 5

Q1 Q2 Q3 Q4

Zumtobel Group

5.7%0.7%

0.1%

Q1 Q2 Q3 Q4

283.7

317.2325.7

6.2%






32.0

20.1

341.6

9.4%

10.0

3.3%

306.1330.5

10.4

3.1%

18.2

Profitability hit by lower volume and pricing pressureZumtobel Group – Revenue and EBIT development




307.3

-10.1%(fx-adj. -8.3%)

2.1

-7.3%(fx-adj. -4.5%)

0.2

Includes the release of EUR 3 m bonus provision

| |6.03.2018Q1-Q3 2017/18 6

Simplified illustration to highlight main building blocks of the adj. EBIT developmentZumtobel Group – adj. EBIT Q1-Q3 2016/17 vs. Q1-Q3 2017/18

20.5

Adj. EBITQ1-Q3 2016/17

R&D Adj. EBITQ1-Q3 2017/18

62.0 - 49.9

Lower volume, increasing price pressure (approx. 5% in the Lighting Segment) as well as increase in warranty provision lead to lower absolute contribution margin.

[in EUR million]

+4.8

Efficiency gains through group-wide bundling of R&D capacities

Selling & Administrative

∆ Gross Profit(before R&D)

Result of recently implemented saving measures

+ 7.4

-3.9

Other income

Lower income from government grants and licenses

| |6.03.2018

Alfred Felder – Acting President of the Executive Board

7

Education

Doctoral degree in Electrical Engineering of the Technical University of Vienna

Business Experience

Since 2012 Zumtobel Group AG

Acting President of the Executive Board & CSO (since Feb 1, 2018)COO Zumtobel Group (2016 – 2018)CEO Tridonic (2012 – 2016)

2003 – 2012 OSRAM

Senior Vice President Sales, OSRAM General Lighting, ChinaPresident and CEO, Osram Opto Semiconductors, AsiaVice President Sales and Marketing, Osram Opto Semiconductors, MalaysiaGeneral Manager, BU Organic Light Emitting Displays (OLED), Osram OptoSemiconductors Inc., USADirector of OLED Technology, Osram Opto Semiconductors Inc., USA

1990 – 2003 SIEMENS

Department Head, Ceramics Department, SIEMENS AG, GermanyMicrocontroller / Product Marketing Industrial, Infineon Technologies, JapanManager Technology Dept., Siemens K.K., JapanProject Manager, Siemens Central R&D, GermanyResearch Scientist, Siemens Central R&D, Germany

Q1-Q3 2017/18

| |6.03.2018Q1-Q3 2017/18 8

Stabilizing the operating performance and building the foundation for returning to profitable growthZumtobel Group Working Agenda for the next 6 months

� Regain trust by realigning the Zumtobel Group strat egy to its historically successful DNA

� Draw a clear line under disruptive internal struggl e over the last few months – refocus on customers a nd innovations

� Put the client first in everything we do: refocus on innovation leadership and customer intimacy

� Foster group-wide cooperation and ‘unlock’ employee motivation

� Kick start a major joint effort to address all current internal operational challenges

� Set-up a leaner organization with higher accountabi lity and more focus

� Create a leaner management team with clear responsibilities as well as higher accountability

� Critically scrutinize existing structures and processes as well as market, product and brand portfolio

� Take (bold) decisions, stick to them and implement swiftly

� Evaluate and rigidly push through further structura l cost reductions in all functional areas

� Work on new “Strategy Roadmap” with defined actions and targets by June 2018

| |6.03.2018Q1-Q3 2017/18 9

Zumtobel Group Outlook

� The general development of the professional lighting industry still remains below our original expectations and there are no

signs of the hoped-for recovery in the near future

� Intense price competition in the lighting and components businesses

� Ongoing revenue decline in Great Britain, the most important single market for the Zumtobel Group

� Significant cost saving measures implemented in Q3

� Adjustment of revenue and earnings guidance for the full 2017/18 financial year on Jan 24, 2018: The Management Board

now expects operating results (adjusted EBIT) of EUR 15 to 25 million and a decline of approximately 8% in revenues for

the 2017/18 financial year. The previous forecast called for adjusted EBIT of EUR 50 to 60 million and a decrease in

revenues of roughly 5%.

� Additional restructuring costs in Q4 2017/18 as a consequence of ongoing strategic review

Back -up

| |6.03.2018Q1-Q3 2017/18 11

Revenues decline in most major markets, particularly in UK Zumtobel Group – Regional revenue distribution

Q3 2017/18 Q1-Q3 FY2017/18

Revenues in EUR million

Change in %

Revenues in EUR million

Change in %

nominal FX adjusted

D/A/CH83.9 -3.4 274.5 -5.0 -3.6

Northern Europe61.7 -23.0 204.6 -18.9 -15.6

Benelux & Eastern Europe46.2 +13.8 138.9 +10.6 +11.9

Southern Europe44.5 +1.8 133.9 -3.0 -3.0

Asia & Pacific29.1 -0.6 94.2 0.0 +4.4

Middle East & Africa11.8 -23.5 38.6 -12.9 -10.1

America6.6 -35.6 23.3 -22.0 -18.0

Total 283.7 -7.3 908.1 -6.7 -4.6

| |6.03.2018Q1-Q3 2017/18 12

LED share of group revenues increases to 79.2% (Q1-Q3 PY: 72.9%)Zumtobel Group – LED revenue development

Q1 Q2 Q3 Q4

Zumtobel Group

LED revenues

245.8

LED revenues 2016/17In EUR million

LED revenues 2017/18In EUR million

� LED revenues in Q1-Q3 FY 2017/18 grow by 1.3% to EUR 719.0 million

� LED share of group revenues increases to 79.2% (Q1-Q3 PY: 72.9%)

� Lighting Segment increases sales with LED products by 0.1% to EUR 543.1 million (LED Penetration 78.3%)

� LED sales in Components Segment grow by 2.6% to EUR 220.8 million (LED Penetration 83.7%)

227.7251.1

230.7

+8.0%

250.5

-0.7%

249.4223.9

-3.0%

| |6.03.2018Q1-Q3 2017/18 13

ZGS revenues grow by 8.4% to EUR 41.0 million in Q3 Zumtobel Group – ZGS revenue development

41.0

Q1 Q2 Q3 Q4

Zumtobel Group

ZGS revenues

43.3

ZGS revenues 2016/17In EUR million

ZGS revenues 2017/18In EUR million

� Evolved customer needs drive new integral service offerings

� ZGS bundles all services of the Zumtobel Group within one business unit

� Turn Key solutions as well as connectivity systems (incl. emerging lighting) are the biggest revenues drivers within the ZGS offering

39.5

45.6

37.8

+9.5%

37.5

+17.5%

53.5

+8.4%

| |6.03.2018Q1-Q3 2017/18 14

Net profit for the period at minus EUR 1.7 millionZumtobel Group – Income statement

in EUR million Q1-Q3 2017/18 Q1-Q3 2016/17 Change in %

Revenues 908.1 973.4 -6.7

Cost of goods sold -568.5 -583.8 -2.6

Gross profit (w/o development) 339.6 389.6 -12.8

as a % of revenues 37.4 40.0

R&D -53.6 -61.0 -12.2

SG&A expenses -265.6 -266.5 -0.3

Adjusted EBIT 20.5 62.0 -67.0


Special effects -6.5 -12.1 -46.2

EBIT 13.9 49.9 -72.1


Financial results -13.6 -14.5 +5.7

Profit before tax 0.3 35.4 -99.2

Income taxes -1.9 -8.3 -76.7

Net profit for the period -1.7 29.8 <-100

Earnings per share ( in EUR) -0.04 0.69

Special effects related to adjustments to the global plant network

| |6.03.2018Q1-Q3 2017/18 15

Working capital below prior year levelZumtobel Group – Working capital

Working capital

Q1 Q2 Q3 Q4

in % of rolling 12-month revenues

20.4% 20.1%18.9%

17.0%

18.7%

� Working capital at EUR 221.6 million as of 31 January 2018 (31 January 2017: EUR 240.0 million)

� In % of rolling 12-month revenues, working capital down to 17.9% (Q1-Q3 PY: 18.2%)

19.2%18.2%

FY 2015/16 FY 2016/17 FY 2017/18

16.9%18.0%

17.3% 17.9%

| |6.03.2018Q1-Q3 2017/18 16

Free cash flow at minus EUR 39.3 millionZumtobel Group – Cash flow statement

in EUR millionQ1-Q3

2017/18Q1-Q3

2016/17Cash flow from operating results 53.1 95.7

Change in working capital -7.2 -10.6

Change in other operating items -29.2 -18.2

Taxes paid/received -3.2 -3.7

Cash flow from operating activities 13.5 63.2

Proceeds from the sale of non-current assets 4.2 4.5

Capital expenditures on non-current assets -48.6 -30.7

Change in current and non-current financial assets -5.7 3.7

Change in liquid funds from changes in the consolidation range -3.2 0

Cash flow from investing activities -52.8 -22.6

Free cash flow -39.3 40.6

Cash flow from financing activities 29.3 -40.2

Effects of exchange rate changes on cash and cash equivalents -3.9 -0.1

Change in cash and cash equivalents -10.0 0.5

Free cash flow development

Q1 H1 Q1-Q3 FY

7.4

(cumulative figures in EUR million)

FY 2016/17 FY 2017/18

-26.4

41.5 40.6

69.4

-22.5

-39.3-39.3

| |6.03.2018Q1-Q3 2017/18 17

Continued solid balance sheet structure and secured liquidity positionZumtobel Group – Key balance sheet data

in EUR million 31 January 2018 30 April 2017

Total assets 991.6 1,019.6

Net debt 157.1 91.0

Debt coverage ratio 2.49 0.86

Equity 316.8 334.0

Equity ratio in % 32.0 32.8

Gearing in % 49.4 27.2

Investments 48.6 45.2

Working capital 221.6 220.1

As a % of rolling 12 months revenues

17.9 16.9

� Net debt totalled EUR 157.1 million as of 31 January 2018 (31 January 2017: EUR 120.3 million)

� Secure liquidity position backed by:

− Syndicated credit facility with a term ending November 2022 and a current max. volume of EUR 300 million (EUR 115 million drawn by 31 January 2018)

− Two bilateral bank credit agreements of EUR 40 million each with a term extending to September 2018 respectively January 2020 (fully drawn by 31 January 2018)

− Uncommited lines of credit totalling EUR 84.4 million as of 31 January 2018

| |6.03.2018

The new Management Board

Alfred FelderActing President of the Executive Board (from 01.02.2018)

Management Board

Karin SonnenmoserChief Finance Officer

Bernard Motzko Chief Operating Officer (from 01.02.2018)

18Q1-Q3 2017/18

| |6.03.2018

Bernard Motzko – Chief Operating Officer (COO)

19

Education

Doctoral degree in the filed of Mechanical/Production EngineeringFurther education in business administration

Business Experience

2018 Zumtobel Group AG

Chief operating Officer (since Feb 1, 2018)

2016 – 2018 Diebold-Nixdorf AG

VP Global Operations

1997 – 2016 Wincor Nixdorf AG

VP Global Operations

Department Head of Production and Logistics at Paderborn plantBusiness Controller of Production at Paderborn Plant

1995 – 1997 Peacock AG

Department Head of Production

1994 – 1995 Karmann AG

Assistance to Department Head of Production

Q1-Q3 2017/18

| |6.03.2018Q1-Q3 2017/18 20

Financial Calendar

� June 28, 2018 Annual Results 2017/18 (1 May 2017 – 31 April 2018)

� July 17, 2018 Record Date fort he Annual General Meeting

� July 27, 2018 42nd Annual General Meeting

� July 31, 2018 Ex-Dividend Day

� August 1, 2018 Record Date Dividende

� August 2, 2018 Dividend Payout Day

� September 4, 2018 Report on the First Quarter 2018/19 (1 May 2018 – 31 July 2018)

� December 4, 2018 Report on the First Half-year 2018/19 (1 May 2018 – 31 October 2018)

� March 5, 2019 Report on the First Three Quarters 2018/19 (1 May 2018 – 31 January 2019)

| |Q1-Q3 2017/18 21

Five-Year Overview

in EUR million 2016/17 2015/16 2014/15 2013/14 2012/13

Revenues 1,303.9 1,356.5 1,312.6 1,246.8 1,243.6

Adjusted EBIT 72.4 58.7 66.5 47.6 35.7

as a % of revenues 5.6 4.3 5.1 3.8 2.9

Net profit/loss for the period 25.2 11.9 11.9 -4.8 6.1

as a % of revenues 1.9 0.9 0.9 -0.4 0.5

Total assets 1,019.6 1,068.6 1,086.3 1,006.6 994.8

Equity 334.0 333.2 322.6 327.6 357.4

Equity ratio in % 32.8 31.2 29.7 32.5 35.9

Net debt 91.0 134.8 148.2 126.2 113.2

Cash flow from operating results 116.8 84.8 103.1 79.5 79.8

Investments 45.2 58.4 76.6 65.6 59.5

as a % of revenues 3.5 4.3 5.8 5.3 4.8

R&D total 82.4 87.9 79.0 71.8 69.1

as a % of revenues 6.3 6.5 6.0 5.8 5.6

Headcount incl. contract worker (full-time equivalent)

6,562 6,761 7,234 7,291 7,162

6.03.2018

Many thanks for your attention!

| |23 June 2017Annual Results 2016/17 23

Disclaimer

The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to predict. Therefore, actual outcomes or results may differ materially from what is expressed, implied or forecasted in these statements. Neither Zumtobel Group AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel Group AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document, the facts and/or information.

Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Zumtobel Group AG as of the date this document was made. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Zumtobel Group AG as being accurate.

Contacts:Investor RelationsTel.: +43 (5572) [email protected]

zumtobel group ag q1-q3 2017/2018 · pdf file2003 – 2012 osram ... project manager,...

Documents