tognam investors presentation
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Tognam Investors PresentationTRANSCRIPT
Tognum Investor PresentationMay/June 2011
Slide 2 | Tognum Investor Presentation | May/June 2011
Legal disclaimer
This presentation is for information purposes only and does not constitute an offer to sell or a solicitation for an offer to buy any securities. The shares of Tognum AG will not be registered under the U.S. Securities Act of 1933.
This presentation includes certain forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the words "believes", "estimates", "anticipates", "expects", "assumes", "predicts", "intends", "may", "will" or "should", and similar expressions. Such forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Such forward-looking statements do not represent any guarantees of future performance. Tognum's actual results of operations, including its financial condition and profitability as well as the development of the general economic conditions in which it operates, may differ materially from (and be more negative than) those made in or suggested by the forward-looking statements contained in this presentation.
This presentation also includes certain market and market share data. To our knowledge, there is no single, comprehensive source that reliably describes the overall market and its sub-markets or the competitive situation in the market breakdown presented herein. Unless indicated otherwise, all the statements herein concerning the market and competition are therefore based on our own estimates, some of which have in turn been derived from a variety of sources. It is possible that the actual market conditions and competition may differ from the situation described herein, or that other market participants may come up with different estimates of the market and competitive conditions.
Slide 3 | Tognum Investor Presentation | May/June 2011
Tognum AGIntroduction
IndustrialMarine Oil&Gas After Sales Onsite Energy Systems
Engines Onsite Energy & Components
ComponentsDefense
Tognum sets the standard as the preferred partner for the best solutions in power and propulsion
- “Pure Play“ in high-speed and high-performance diesel engines for off-highway applications- Customised solutions - complete propulsion systems - decentralised energy systems
Slide 4 | Tognum Investor Presentation | May/June 2011
Tognum AG Investment proposition
Reliable Foundation
Growth Prospects
– Diverse off-highway end markets– >100 years of customer relationships and technology leadership– Sales & distribution network in 130 countries, with over 1,200 service points
Financial Strength
Operational Leadership
Reliable Management
– Management aligned with shareholder interests – Strong track record– High level of experience and qualification
– Proprietary leading technology– Operational flexibility– Global presence
– Adj. EBIT margin: >10% mid-term – Return on Net Assets: >20%– Dividend: Payout ratio between 30% - 50%
– After Sales: >10% CAGR– Onsite Energy & Components: >10% CAGR– Engines: Growth above market
Slide 5 | Tognum Investor Presentation | May/June 2011
Only “pure play” in high-speed off-highway enginesTo
gnum
mar
ket
Low-speed engines
Medium-speed engines
> 560kW
< 560kW
High-speed engines
Note: Shapes represent approx engine volumesSource: Secondary research
Slide 6 | Tognum Investor Presentation | May/June 2011
Uniquely balanced portfolio in attractive markets
Split by region (2010)
– Attractive end markets with high barriers to entry– Broad & well balanced portfolio with >20 different application areas– Long-term growth perspectives in the fields of energy/power, raw materials/infrastructure and industrial
development in emerging countries
28%
22%
23%
9%
19%
Rest of World
Europew/o Germany
Asia/Pacific
NAFTA
Germany
Split by end market (2010) Split by subapplication
Injection SystemsDiesel PowerGenGas PowerGenOil & GasYachtNaval / GovernmentalCommercialRailMiningC&IAgricultureDefense TrucksMedium / LightHeavyService / RepairsSpare Parts
OE Components
Onsite Energy
Oil & Gas
Marine
Industrial
Defense
After Sales/Other
Injection SystemsDiesel PowerGenGas PowerGenOil & GasYachtNaval / GovernmentalCommercialRailMiningC&IAgricultureDefense TrucksMedium / LightHeavyService / RepairsSpare Parts
OE Components
Onsite Energy
Oil & Gas
Marine
Industrial
Defense
After Sales/Other
Slide 7 | Tognum Investor Presentation | May/June 2011
After Sales
Tognum is well positioned for long-term growthFocus on flexibility and efficiency
- Maintaining leadership in product innovation- Broadening business and customer portfolio- Integrating system and service offerings
Tognum‘s strategy
Operational Excellence
Portfolio
Strategic initiatives
Onsite Energy
Regional Expansion
- Lean@mtu
Propulsion
Initiatives for higher flexibility and a
better cost position
Slide 8 | Tognum Investor Presentation | May/June 2011
The emission challengeEmission requirements
Increasingly stringent emission legislation
Tier 1
Tier 22000
2015
2006
2011
0.20.4 0
10
8
6
4
Tier
4i
Tier
4
0.6
2
PM (g/kWh)
NOx
+HC
(g/k
Wh)
Note: EPA legistlation, C&I > 560kW
Comments
- Broadly similar emission regulations in US (EPA), EU, and other countries
- Depending upon the application and power rating, different phasing of introduction and emission limits apply for Particulate Matter (PM) and Nitrogen Oxides (NOx)
- Increasing certification and testing requirements
Tognum objective to provide emission compliant solutions with improved life cycle
costs for the customer
Slide 9 | Tognum Investor Presentation | May/June 2011
Fuel efficiency and life cycle cost
Intelligent R&DManaging the emission challenge
Fuel 90.5%
Preventive Maintenance 6.8%
Corrective Maintenance 1.1%
Engine price 1.7%
Source: MTU FN, customer feedbackApplication: Rail (locomotive)
Methods for emissions reduction
Exhaust aftertreatment
Combustion process
Exhaust gas recirculation
Turbo charging
Oxydation catalyzer
Diesel particulate filter
SCR catalyzer
Emission reduction(optimised EAT concepts)
Emission reduction+ Engine efficiency
Fuel injection
Electronics
Internal engine measures
– Efficient solutions to meet upcoming emission standards– Tognum keeps key technology know-how in-house– Focus to achieve optimised combustion process– Developing new engine series (lower power range) and new
engine generations (S 2000 / S 4000) – Competitive advantage and optimum solutions in all our
applications for our customer base– Customer benefits through engines with superior fuel
consumption and low total cost of ownership
Comments
Slide 10 | Tognum Investor Presentation | May/June 2011
294 336192
319 320331
353
57
47
73
7871
31.12.2007 31.12.2008 31.12.2009 31.12.2010
20%15%
31%34%
9.4%7.9%
13.0%13.8%
RoNA Return on Sales
Financial performance and mid-term targets
Sales Adj. EBIT
Net debt incl. pensions
398
40438
9
Unr
ecog
nise
dac
tuar
ialg
ain
Pen
sion
sN
etfin
anci
alde
bt
1.5x2.1x
1.5x
Targets:– Growth above market– Adj. EBIT margin: > 10% mid-term– Return on Net Assets: >20%– Investment grade rating
All numbers in €m
2007 2008 2009Group funding structure
2010
242
407390
199
2007 2008 2009 2010
2,5633,133
2,8352,529
2007 2008 2009 2010
1.3x
400
672 681 736
389398 404 400
294336 192
535
57
31.12.2007 31.12.2008 31.12.2009 31.12.2010
Equity Pensions Net Debt
Slide 11 | Tognum Investor Presentation | May/June 2011
Outlook 2011
► Specification of Guidance based on Q1/2011 financial performanceand positive developments of off-highway markets
► We expect revenues of around € 2.9bn
► We expect adj. EBIT of around € 300m
► R&D expenses as a percentage of sales on a similar level as in 2010 (6-7%)
► Higher capex to secure technological leadership, capacity expansion, future competitiveness and profitability
► Tax rate of around 28%
► Dividend policy based on payout ratio of between 30% and 50% of adjusted Group net profit
Slide 12 | Tognum Investor Presentation | May/June 2011
Appendix
Slide 13 | Tognum Investor Presentation | May/June 2011
1909
100 years of technological leadership
1933 1969 2002 2005 2006 2007 2009
L‘Orange DaimlerChrysler-Off-Highway
Tognum „Home of Power Brands”
100 yearsMTU
MTU FriedrichshafenIndependentGroup IPO
1918
Luftfahrzeug-Motorenbau GmbH
Slide 14 | Tognum Investor Presentation | May/June 2011
Revenue growth target
Onsite EnergyExploiting the market potential
– Complement diesel engine portfolio(series 1600 since 2009) and expand gas portfolio
– Increase in systems business with modularised generator sets (gensets)
– Internationalisation/regional expansion– Sales channel development and expansion in new
regions (e.g. Asia)– Increase power generation focused network density– Increase in After Sales
– Expansion of Nuclear Power Plant business
CAGR>10%
Objectives:– Capitalise on market growth– Systems integration– Market share gainsMid to long term trends:– Addressing grid instability– Rising energy demand, focus
on decentralised energy
20202009
CAGR = Compound annual growth rate ´09-´20
Main initiatives
A
B
C
D
Slide 15 | Tognum Investor Presentation | May/June 2011
Product portfolioContinuous development
Engine portfolio lower power rangeKey targets
- Redesign of S2000, S4000, and S 1163:- Due to upcoming emission regulations for existing
markets- Extension of product portfolio
- For new markets and applications- Expansion of key technologies
- And development of new technologies- Boost innovation process
- Cut life cycle cost- Reduce fuel consumption- Develop compact exhaust aftertreatment systems
Increase in competitiveness due to technology leadership to safeguard
profitable growth above market
- PowerGen- S 1600 (6R, 8V, 10V, 12V; 270kW-730kW)- Continued ramp-up of series production- Extension of MTU product portfolio- Modular engine architecture, lean production
concept, assembly only- Construction and Industry
- Product portfolio consisting of MTU engines S 1600 between 530kW-730kW
- Below 530kW: Introduction of new engine family based on upcoming Mercedes engines, which are designed for off-highway use by MTU
- Fully compliant with 2014 emission regulations- Compelling and complete new product
line-up fully addresses customer demand
Slide 16 | Tognum Investor Presentation | May/June 2011
Current setup & future driversPast setup
TotalOtherRepair & Services
RemanSpare parts
– Maintenance Contracts
– Remote Services
– Workshop and test bench solutions
– Engines– Parts– Power
Packs
– Training & document-ation
TotalOtherSpare parts
CAGR> 10%
After Sales growthDiversifying into products & services
Note: schematic illustration
Slide 17 | Tognum Investor Presentation | May/June 2011
After SalesExpanding service and parts business
- Highly profitable After Sales business previously limited to spare parts & services
- 2010: ~30% share of revenues of After SalesImportant growth drivers:- Growing installed base of MTU engines- High technological requirements for parts- Proactively tapping business potential
Initiatives
- Faster response times and effective prevention- Remote services already in operation with
Mining applications- Next steps: Rail, Marine and Oil&Gas
- Development of specific service concepts for large engines
- Local service hubs for faster spare parts supply- Specific major overhaul concepts
- Further expansion of global spare parts logistics
- Global implementation of standardised parts processes based on a common IT interface
- Expansion of global training capacities (North America, India)
- Ramping up spare parts business for lower power range
Description
MTU_ValueSpares MTU_ValueExchange MTU_ValueService
Spare Parts
Consumables
MTU Exchange Parts MTU Customised Care
MTU Exchange Engines
MTU Exchange PowerPacks
MTU Engine Overhaul
MTU Extended Coverage
MTU Annual Check
Technical Information
Training
Service Units
MTU_ValueCare
Slide 18 | Tognum Investor Presentation | May/June 2011
After Sales Application-specific service product portfolio
Application
Full service offering: full maintenance contracts, warranty extension and remanufacturing
Utilisation Potential for MTU
Population trends (05-10)
Demand-driven service offering: warranty extension and regular engine checks
Restricted service potential: focus on spare parts and remanufacturing
Long-term project relationships: frame contracts (parts/labour), training, engine overhauls
Commercial MarineMining
Yacht
Rail
Diesel PowerGen
Construction and IndustryAgriculture
NavyDefense
Gas Powergen
Oil & Gas
Comments
Low High
High engine volumes. Fast response
Highest engine volumes
Low engine volumes
Low engine volumes
Low engine volumes
Low engine volumes
Majority of Mercedes engines
Currently only Mercedes engines
Low engine volumes
Workshop and testbench solutions
Engine overhaul
Slide 19 | Tognum Investor Presentation | May/June 2011
Regional expansionCovering the entire value chain
R&D Purchasing Manu-facturing Assembly Sales After Sales
– MTU India: engineering and research centre
– Global Sourcing initiative
– New production site in South Carolina (US)
– Strengtheing of direct end customer business
– V-TRAC (Vietnam)
– Training Center and workshop MTU India
– New spare parts logistics centre in the US
– Cylinder liner in Turkey
– Suzhou plant
– JV Norinco(NPP)
ValueChain
Key achieve-ments
Slide 20 | Tognum Investor Presentation | May/June 2011
Expansion of complete propulsion systems salesfor Marine, Rail, Defense and C&I
Expansion of market share in automation and system scope
Extension and further decentralisation of engineering services portfolio
Development of hybrid systems in rail & marine
Expansion of O&G system portfolio and activities
PropulsionExpand solutions approach & engineering services
Types of Business Main initiatives
A
B
C
D
E
Components Business
Serial Systems Business
Project Systems Business
Applications
Marine Industrial
DefenseOil & Gas
Slide 21 | Tognum Investor Presentation | May/June 2011
Product portfolio today
0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 25.000 36.000
LM 2500LM 6000
8000
956/1163
4000
396
2000
900/460/500
Power [kW]
S60
106/199/837/870/880/890
Rail PP1800
1600
Gas turbine
Series
Mar
ine
C&
I
Pow
erG
en
Def
ense Series
Slide 22 | Tognum Investor Presentation | May/June 2011
Product portfolio developmentLine-up for PowerGen (schematic)
2009
S 4000S 2000
S 60
Futu
re S 4000New generation
S 2000New generation
S 1600
100 kW 500 kW 4,000 kW2,000 kW1,000 kW 6,000 kW
S 956
100 kW 500 kW 4,000 kW2,000 kW1,000 kW 6,000 kW
S 956
S 1600
3rd party
3rd party
LM 2500
LM 2500
S 8000
Slide 23 | Tognum Investor Presentation | May/June 2011
Product portfolio developmentLine-up for C&I (schematic)
2009
OM900
OM500
S 4000S 2000S 60
100 kW 500 kW 4,000 kW2,000 kW1,000 kW
Futu
re S 4000New generation
S 2000New generation
S 1600
1000
1500
1300
1100
100 kW 500 kW 4,000 kW2,000 kW1,000 kW
Slide 24 | Tognum Investor Presentation | May/June 2011
Operational Set-upProduction and assembly concept
Flexibility in capacity adjustmentsFlexible engine & production concept
Core engine (S4000)
Gas
Marine
Mining Rail
Genset
Permanent workforce
Temporary workers
Plant capacity layout
Additional shifts
Outsourcing
Reduce temporaryemployment
Fewer shifts
Flexible work time model
Internal machinery
Slide 25 | Tognum Investor Presentation | May/June 2011
IN PROGRESS: Exhaust aftertreatment
Benefits– Fuel consumption– Cost– Maintenance– Size and weight
EXISTING: Combustion process
Fuel injection Turbo charging Electronics
Reducing LCC (life cycle cost)
NO2O2NO
Exhaust before Treatment
N2 H2O
after Treatment
SCR-Kat
(NH2)2CO+ H2O
Add-onUrea
NO2O2NO
Exhaust before Treatment
N2 H2O
after Treatment
SCR-Kat
(NH2)2CO+ H2O
Add-onUrea
Meeting emission regulations by – Developing engine and exhaust aftertreatment as one system– System optimisation
Product Portfolio - Key TechnologiesTognum with integrated approach
Slide 26 | Tognum Investor Presentation | May/June 2011
70.0%
75.0%
80.0%
85.0%
90.0%
95.0%
100.0%
Goldmine -USA
High A ltitude(1) - Chile
High A ltitude(2) - Chile
High A ltitude(3) - Chile
Other
Availability of trucks - Mining Fuel efficiency - Mining
Key buying criteriaLower fuel consumption and less service time
Benchmarking S4000 vs. competition– Additional availability of mining fleets
Source: MTU FN, customer feedback
CompetitorS4000
USD 75,000 p.a.Savings
with 5% reduced fuel consumption:
USD 1.5 million p.a.Fuel costs**
2 million litresFuel consumption per year*
3000 kW (4080 PS)Engine power
Engine 20V 4000 C23L
* Load factor 40%, 7000 h in use per year** fuel costs 0.75 US$/litre
Slide 27 | Tognum Investor Presentation | May/June 2011
– Established in 2004
– TOP establishes a continuous improvement process for higher efficency and competitiveness
– Cost reduction through systematic process analysis – Manufacturing and assembly– Procurement– Distribution and logistics– After Sales– Research and development– Overhead– Quality control
– 2007-2010: >200 projects completed
– Fulfilled TOP targets for 2006-2010– Achieved annual savings of c. 1% of
revenues– Increased management focus on continuous
process improvements – Results achieved feed into operative planning – Extensive internal commitment due to internal
communication– Implemented in subsidiaries– Investments in research and development,
new engines– Future savings help offset input cost
increases (e.g. cost of materials)
TOP – Total Operational Performance Impact
Tognum TOPProcess optimisation and efficiency improvement
Slide 28 | Tognum Investor Presentation | May/June 2011
642
598
526
764
509 661
577
612
865
2009 2010 2011
651
625
488
566
696 818
693
650
791
2009 2010 2011
Revenues (in €m)
Order intake and revenues
Order Intake (in €m)
+17.4%+29.8%
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
2,3302,529
24%
21%
27%
28%
30%
21%
24%
25%
2,8302,564
28%
23%
24%
25%
34%
24%
22%
20%
Slide 29 | Tognum Investor Presentation | May/June 2011
38
1317
54
5122
31
34
73
2009 2010 2011
64
1933
83
4372
54
56
89
2009 2010 2011
Q3
EBIT adj.1 (in €m) Net profit adj.1 (in €m)
Profitability
1 Excludes any effects from purchase price allocation, fx valuation, revaluation of net assets from acquisitions, and effects relating to the exit from the Fuel Cell activities
Q4
Q2
Q1
Q4
Q3Q2
Q1
+68.0%+127.8%
121
199
42%
10%
17%
32%
14%11%
31%
242
159
45%
21%19%
14%
46%
37%
22%
23%
18%
RoSQ1 9.9% 8.4% 10.9% EPS
Q1 €0.17 €0.39€0.29
Slide 30 | Tognum Investor Presentation | May/June 2011
74.9%72.5% 70.1%
13.0%9.4% 10.9%
8.2%
5.4% 8.1%
6.5%3.5%
6.4%
4.7%3.7%
2.8%
2008 2010 Q1/2011
10261 72
586 465 464
54
4252
4328 41
3124
22
Avg. 2008* Avg. 2010* Q1/2011
G&A (adj.)
Margin development
-2.4 pp
+1.2 pp
+1.5 pp
R&D (adj.)
Selling expenses (adj.)
EBIT (adj.)
Cost of goods sold (adj.)
* Average per quarter for 2008 and 20101 2008 comparison shows pre-financial crisis cost structure
1
Slide 31 | Tognum Investor Presentation | May/June 2011
92110
143165
25
34
3251
39
28 1910
2007 2008 2009 2010
Expensed R&D Capitalised R&D Paid R&D
Research and DevelopmentStrategic investment in technology developments
Comments
- Strategic increase in R&D expenses- Increase of 15% in 2010 and 29% in 2009- Focus on development of successor engines for
S 2000 and S 4000; currently in advanced status of development of engines, incl. comprehensive prototype testing
- Key drivers new product development- Comprehensive product range to meet customer
demand- Fulfillment of upcoming exhaust emissions
regulations (currently >50% of R&D expenditure)- Increasing engine efficiency- Entering new markets and applications
Adj. Research and Development Expenditure (in €m)
+29%
183
% Rev. 5.8% 8.0%5.9%
168
Extension of Tognum’s leadershipthrough superior engine technology
+19%
203193
7.5%
+15%
Slide 32 | Tognum Investor Presentation | May/June 2011
Q1/2011 adjustment bridge
(1) PPA depreciation & amortisation (€ 10.1m)Note: 2011 annual amount for PPA will be € 25m - 30m
Adjusted for hedges for FX cashflows (€ -5.8m)
(2) Valuation of FX loans (€ -11.9m)
(3) Higher income taxes resulting from higher EBIT at 27% tax rate (€ 2.0m)
(4) PPA depreciation & amortisation (€ 10.1m)
in €mReported
Q1/2011Adjusted Q1/2011
Revenues 661.4 661.4Cost of sales (468.2) 4.3 (1) (463.9)Gross profit 193.2 4.3 197.5SG&A (85.0) (85.0)
(43.1) (43.1)0.9 0.9
66.0 4.3 70.3(0.0) (0.0)
Other financial income 21.1 (11.9) (2) 9.1Other financial expenses (7.4) (7.4)
79.6 (7.6) 71.9Interest income 4.4 4.4Interest expenses (6.2) (6.2)Earnings before taxes 77.7 (7.6) 70.1Income taxes (21.3) 2.0 (3) (19.2)Net profit (loss) 56.5 (5.6) 50.8
Depreciation and amortisation (34.9) 10.1 (4) (24.8)EBITDA 114.5 (17.8) 96.7
Research and development costs
Results from operating activitiesShare of profit from investments - equity method
Other operating income (expenses)
Adjustments
Earnings before interest and taxes
Slide 33 | Tognum Investor Presentation | May/June 2011
736 778
404 400 403192
681
57
31.12.2009 31.12.2010 31.03.2011
Equity Pensions Net Debt778681
736
31.12.2009 31.12.2010 31.03.2011
670672711
31.12.2009 31.12.2010 31.03.2011
2,469
2,746 2,780
31.12.2009 31.12.2010 31.03.2011
Total assets (in €m) Net working capital* (in €m)
Tognum group funding structure (in €m)Equity (in €m)
Balance sheet figures
Equityratio
+11% -5%
28.0%27.6%
* Net Working Capital: includes inventories, trade receivables, trade payables and advance payments received
26.8%
+1%+/-0%
(22)
net cash position
Slide 34 | Tognum Investor Presentation | May/June 2011
31.12.2009 31.12.2010 31.03.2011
(57.2)
92.7 21.6(26.3)
12.5
Q1/2011 net debt developmentNet cash position of € 21.6m
Net financial debt (in €m) and leverage (based on adj. LTM EBITDA)
0.2x -0.1x
Q1
Net financial
(debt)/cash31.12.10
Cashflow from
operatingactivities
Net financial
(debt)/cash31.03.11
Cashflow from
investingactivities
Net fxvaluation
effect
Net debt/adj. LTM EBITDA
Pensions
Netfinancialdebt
2.1xUnrecognisedactuarial gain
192.2
331.5
78.3
72.5
403.9
57.2
353.4
1.3x
46.5
399.9
(21.6)
403.2
1.0x
Slide 35 | Tognum Investor Presentation | May/June 2011
212.7258.5
382.3342.4
(160.7)(193.7)
(158.7) (143.1)
52.0 64.8
223.6199.4
2007 2008 2009 2010
Cashflow from Operating Activities Cashflow from Investing Activities Free Cash Flow
Free Cashflow developmentNet working capital reduction drives cash generation
Comments
- Further net working capital efficiency drivesfree cashflow development
- Strict handling of customer receivables and supplier liabilities
- Active supplier management- Continued Board focus on NWC efficiency- Cashflow from investing activities determined
by prioritisation of strategic investments
Cashflow development (in €m)
Cashflow development under strong management focus
Slide 36 | Tognum Investor Presentation | May/June 2011
100127
101 114
15
12
8
3025
34
32
10
2007 2008 2009 2010
PPE Investments (Intangibles) Capitalised R&D
CapexCapex supporting long-term strategy
Objectives
- Strategy driving investment programme- Investment in new US location - Intangibles include capitalised R&D for new
engine developments - Capex levels still exceeding D&A
- Production related capex refers to new tooling for new engines
- M&A projects- Smaller acquisitions support strategic initiatives
(Distribution, Onsite Energy, After Sales)
Capex (in €m)
173
% Rev. 5.5% 5.6%4.9%
140
Growth capex determinedby strategic initiatives
142
Note: Excluding additions to the group resulting from acquisition of companies
153
6.0%
Slide 37 | Tognum Investor Presentation | May/June 2011
61.369.3
79.985.2
3.7
3.9
3.6
5.3 2.0
1.8
1.9
12.4
2007 2008 2009 2010
Depreciation Amortisation Amortisation capitalised R&D
Depreciation & amortisationIncrease due to investments and capitalised R&D
Trends
- Increase due to investments in growth and strategic initiatives
- Future increase in amortisation due to capitalised R&D including relating to S 1600 (Incremental amortisation approx. € 10m p.a.)
Adj. depreciation and amortisation (in €m)
74.867.0
D&A below capex in past years to lead to future increase in D&A
88.9
99.6
Slide 38 | Tognum Investor Presentation | May/June 2011
Consolidated performance Tognum Group
in €m Engines OE&C Distribution Holding/ Consolidation
Tognum Group
Q1/2010 (restated to reflect new segment structure effective 1 January 2011)
Order intake 503.2 221.4 73.9 (102.0) 696.5
Revenues 378.0 141.6 54.8 (65.0) 509.4
Adj. EBIT 42.6 3.1 5.4 (8.3) 42.8
Q1/2011
Order intake 545.7 278.4 146.1 (152.4) 817.9
Revenues 454.7 210.9 110.2 (114.5) 661.4
Adj. EBIT 58.3 24.8 7.3 (18.5) 71.9
2010 (restated to reflect new segment structure effective 1 January 2011)
Order intake 1,948.8 938.8 372.0 (429.2) 2,830.5
Revenues 1,839.4 763.3 317.6 (356.8) 2,563.6
Adj. EBIT 221.6 31.5 23.8 (34.8) 242.1
Slide 39 | Tognum Investor Presentation | May/June 2011
Segmental performanceEngines
in €m Q1/2010 % of revenue
Q1/2011 % of revenue
Change FY 2010 % of revenue
Order intake 503.2 545.7 8.4% 1,948.8
External revenues 340.4 395.6 16.2% 1,616.9
Segment revenues 378.0 454.7 20.3% 1,839.4
Marine 101.5 27% 113.3 25% 11.6% 534.9 29%
Industrial 63.4 17% 103.5 23% 63.2% 410.7 22%
Oil & Gas 5.3 1% 41.4 9% 681.1% 77.4 4%
Defense 30.8 8% 24.8 5% -19.5% 92.5 5%
After Sales/Other ( E ) 176.9 47% 171.8 38% -2.9% 724.0 39%
Adj. EBIT 42.6 11.3% 58.3 12.8% 36.9% 221.6 12.0%
Slide 40 | Tognum Investor Presentation | May/June 2011
Segmental performance Onsite Energy & Components
in €m Q1/2010 % of revenue
Q1/2011 % of revenue
Change FY 2010 % of revenue
Order intake 221.4 278.4 25.7% 938.8
External revenues 122.3 161.5 32.1% 655.9
Segment revenues 141.6 210.9 48.9% 763.3
Diesel Systems & Engines 82.5 58% 116.8 55% 41.6% 460.0 60%
Gas & Fuel Cell Systems 3.8 3% 10.2 5% 168.4% 50.3 7%
After Sales/Other ( OE ) 24.8 18% 33.5 16% 35.1% 100.1 13%
Injection Systems 30.5 22% 50.4 24% 65.2% 152.9 20%
Adj. EBIT 3.1 2.2% 24.8 11.8% 700.0% 31.5 4.1%
Slide 41 | Tognum Investor Presentation | May/June 2011
Segmental performance Distribution
in €m Q1/2010 % of revenue
Q1/2011 % of revenue
Change FY 2010 % of revenue
Order intake 73.9 146.1 97.7% 372.0External revenues 46.7 104.3 123.3% 290.7Segment revenues 54.8 110.2 101.1% 317.6
Products 30.5 56% 82.5 75% 170.5% 213.0 67%
After Sales (D) 24.3 44% 27.8 25% 14.4% 104.6 33%Adj. EBIT 5.4 9.9% 7.3 6.6% 35.2% 23.8 7.5%
Slide 42 | Tognum Investor Presentation | May/June 2011
Tognum Group balance sheet 31.12.2009; 31.12.2010; 31.03.2011
2,780
1,62381
304
429
809
1,157241
488
428
31.03.2011
240118Cash & cash equivalents
31.12.201031.12.2009€m
751636Inventories
496494Accounts receivables
9387Other short-term assets
1,5801,335Total short-term assets
2,7462,469Total assets
491454PP&E
242204Other long-term assets
Assets
1,1661,134Total long-term assets
433476Intangible assets
2,780
1,02027
607
301
85
98395
285
200
403
77831.03.201131.12.201031.12.2009€m
736680Shareholders' equity400404Pension provisions
317224Accounts payables
611446Short-term provisions and received payments
1729Other short-term liabilities
1,022762Total short-term liabilities
2,7462,469Total liabilities
297316Long-term financialliabilities
86101Other
Liabilities
9881,027Total long-term liabilities
7763Short-term financial and other liabilities
205206Other provisions
Slide 43 | Tognum Investor Presentation | May/June 2011
Tognum AG shareholder structureTotal free float of ~75%
Daimler AG>25 %*
Top Management and Members of Supervisory Board~5 %* (Free float)
Institutional and Retail Investors~70 %
Incl.– ING Groep, NL: >5 %*– First Eagle Investment Management,
USA: >3 %*
Institutional Shareholders** >40%
Retail Investors – c. 20,000 investors (April 2011)
* According to their releases of Voting Rights and Directors’ Dealings** Identified ownership in March 2011 (Source: Global Shareholder Intelligence Report)As of 10 May 2011
Investor contacts:Dieter RoyalHead of Corporate Finance & Investor Relations
Michael FrankDragica Sikić
Phone: + 49 (0)7541 90-3318Fax: + 49 (0)7541 9090-3318mailto:[email protected]://www.tognum.com
Tognum AG, 88040 Friedrichshafen / Germany
Thank you very much!
Financial calendar 2011*May 11 Annual General Meeting 2011
August 04 Q2/11 final report & conference call
November 08 Q3/11 final report & conference call
* All dates are preliminary and subject to change