S&T - Company Presentation. August 2015

Transcription

1 S&T - Company Presentation August 2015

2 About S&T AG S&T engineers Appliances for vertical markets Appliances comprise of dedicated hardware + combined software solutions Vertical niche solutions for Automation Infotainment Security Smart Energy S&T is an IT system house with regional focus S&T is focused on DACH region and Eastern Europe S&T offers IT Consulting, Integration and Outsourcing S&T in figures 2014: EUR 385,5 Mio. revenue (2013: EUR 337,9 Mio.) with EUR 22,9 Mio. EBITDA (2013: EUR 20,1 Mio.) 2014: employees (2013: 1.570) in 20 countries S&T is a leading IT technology company in DACH and Eastern Europe 2

3 Highlights 2015 Growth with significant profit improvements in H1/2015 Revenue: +14% to EUR 188,2 Mio. Consolidated income: +21% to EUR 6,0 Mio. Backlog YoY: + 61% to EUR 171,8 Mio. Strong growth in technology products Gross Margin increased in H1/15 to 36,6% vs. 32,9% in H1/14 Investment focus on Appliances in Security, IoT and Smart Grid Shareholder focus Increased Market Cap to app. EUR 210 Mio. Dividend increased to 7ct (2014: 6ct) 3

4 S&T Business Model Appliances Security 2014: EUR 50 59% GM 2015fc: EUR 80 Mio. Appliances Smart Energy 2014: EUR 29 44% GM 2015fc: EUR 65 Mio. Services EE 2014: EUR 217 GM 2015fc: EUR 240 Mio. Services DACH 2014: EUR 89 22% GM 2015fc: EUR 80 Mio. 4

5 S&T Strategy % Appliances Increase profit by offering more own technology Grow Appliances revenues with > 50% gross margin Focus on hype areas IoT and Smart Energy Add security know how in verticals as differentiating factor Cross selling in Services EE segment 2014 I/C revenues increased by 26% to EUR 17,9 Mio. target EUR 40 Mio. Use strong market position in utility/public IT services to win energy projects Services Services 2015p 30% Appliances 2017fc Expand Services in DACH region Focus on growth areas: Security, Smart Energy, IoT, Cloud Services Leverage cost efficient EE resources Increase GM program 17% (2013) to 23% (2015) target 30%, HW combined with services Services 40% Appliances Increase technology portfolio -> mid term 40% gross margin (H1/2015: 36,6%) 5

6 Security Appliances: driving profit Appliance = black box (hardware + software) for Security in Infotainment, IoT (industry) Appliances generate recurring revenue requiring long term maintenance contracts Strong customer base: Siemens, Telefonica/O2, Novomatic, ÖBB, tipp3, Bosch IoT = next hype in IT, 100 billion machines added to 4 billion PCs in the internet S&T offers security solutions to IoT (also robots need protection) Soft Firewall for Smart Grid Meters Chip based Firewall for industry IoT custom to vertical market Cloud Firewall for Infotainment H1/2015 Security Appliances S&T Group Gross Margin 57,1% 36,6% EBITDA Margin 18,9% 5,7% Very profitable and fast growing segment: Our IoT security will triple from EUR 13 Mio. (2014) to EUR 40 Mio. (2017) 6

7 Appliances Smart Energy: new field of growth Smart Grids optimize the generation, distribution and usage of energy Intelligent grid components interlink energy suppliers and consumers 80% smart meter share required by EU law until 2019 EUR 40 Bn. TAM within the EU (>200 Mio. pieces) 6% are done EU subsidies available for Eastern Europe Smart Grids amortize fast: securing theft of electricity less cost to read electricity consumption more efficient energy usage (use electricity when it is available) 7

8 Appliances Smart Energy: S&T s Expertise NES Group, consisting of - NES USA: San Jose, CA 56% owned, US branch, R&D and support center - NES GmbH: Linz, AT 51% owned, european branch, R&D and support center Pioneer in Smart Grid business, installed base 4 Mio. in Europe = 30% market share Open Smart Grid Protocol (OSGP) owner & inventor Recent orders: USD 20m Smart City Wroclav (SCW), USD 12m SCW grid implementation, USD 12m Puerto Rico USD 1 bn project pipeline for the next 3 years (mainly Europe) Start-up losses until Q3 2016, high R&D investments needed for conversion of pipeline RT Soft: (Moscow) focus on electrical & gas grids in RUS 400 highly skilled and cost efficient engineers act as a Software center for NES Our USPs: End-to-end supplier: S&T can act as single source for Smart Grid projects Integration of Smart Grids into IT environment Leading product portfolio: Big Data Solutions: UIEM-platform, Element Manager On-the-field: meters, data concentrators, load management Communication: OSGP protocol, security S&T is a leading provider of Smart Energy technology, first profits in H

9 S&T s Engineering Competencies Focus: Security and Energy Applied engineering no basic R&D Niche applications for vertical markets Focus on adding value to existing business Intensive use of subsidies to increase technology portfolio Tight cooperation with universities Several funded security projects (>EUR 2 Mio. per year) Constant investments in technology start-ups Offer sales channel and financing to entrepreneurs Employee qualification ~450 others ~1.050 engineers for services ~800 R&D engineers IoT Security Smart Energy Security appliances for IoT machines Various firewalls for niche applications Big data software solution supporting management of complex energy grids 9

10 Services: covers DACH + Eastern Europe Service USPs S&T covers 20 countries with > 20 years of market presence Single point of contact for international customers Technology / Cloud focus Focus on security applications, Steel Cloud ISO Cross-selling of Appliance/Smart Grid Technology Services EE back to growth Strong growth (> 25% YoY) in Poland and Romania Major Wins in July 2015: 22,5 Mio. EUR Poland, 8 Mio. Romania Services DACH Leverage EE costs to win in DACH GM improved from 19% (2013) to 22% (H1/15), mid term target 30% CH DE CZ PL SK AT HU RO SI HR BA RS ME BG XK MK AL Revenue by regions(2015fc) RU DACH 28% Eastern Europe 72% Our Emerging Market next door is Eastern Europe, not China 10

11 Company Structure S&T Group East Europe DACH Technologies Russia (-) Poland (+) Austria Security 60m Romania (+) Czech Germany (+) Infotainment Slovenia Croatia Switzerland IoT - Automation Hungary Slovakia Smart Energy Bulgaria Albania Moldova 2m Serbia Macedonia Montenegro Significant growth in Poland, Romania and Germany 11

12 Long term trend (in EUR Mio.) 153 REVENUES CONSOLIDATED INCOME 11,9 9,4 8,2 14,0 81 4, Backlog EUR m 12/12 12/13 12/14 6/15 Project pipeline Scheduled orders Significant growth in all key parameters 12

13 S&T Key Figures H1/2015 Revenues (EUR Mio.) 337,9 385,5 188,2 Gross Margin (EUR Mio.) 111,2 127,2 69,0 EBITDA (EUR Mio.) 20,1 22,9 10,8 EBIT (EUR Mio.) 14,3 16,6 7,1 EBIT before PPA amortization (EUR Mio.) 16,8 19,5 9,1 EBIT Interest Coverage Ratio 5,3 4,4 4,9 EBITDA Interest Coverage Ratio 7,4 7,1 7,5 Total Debt / Capital 0,4 0,3 0,3 Net Debt (EUR Mio.) 9,4 1,5 10,9 Working Capital (EUR Mio.) 47,8 51,5 57,3 Equity Ratio 32% 33% 36% Operating Cashflow (EUR Mio.) 11,1 20,6-1,1 Employees

14 Split by Segments H1 (in EUR Mio.) REVENUE 2014 vs GROSS MARGIN 2014 vs ,1 97,8 29,7 32,7 18,9 43,6 35,8 33,0 24,0 Services DACH Services EE Appliances Security EBITDA 2014 vs ,3 6,3 2,1 21,6 Appliances Smart Energy 9,7 7,9 14,1 Services DACH Services EE Appliances Security Consolidated Income 2014 vs ,0 4,8 0,7 9,5 Appliances Smart Energy 3,2 3,6 1,6 1,8 1,3 1,3 0,4 0,0 Services DACH *) including HQ-costs Services EE Appliances Security 0,1 Appliances -0,3 Smart Energy -0,7 Services DACH *) Services EE Appliances Security -1,0 Appliances Smart Energy 14

15 S&T Group Balance Sheet (in EUR Mio.) EQUITY 93,0 89,7 NON-CURRENT ASSETS 93,1 85,9 NON-CURRENT LIABILITIES 46,1 43,1 Fixed assets 78,4 72,3 Long-term loans and borrowings 28,6 26,1 Other assets 14,7 13,6 Other non-current liabilities 17,5 17,0 CURRENT ASSETS 167,0 187,2 CURRENT LIABILITIES 121,0 140,3 Inventories 32,3 30,0 Trade accounts payable 45,2 74,2 Trade accounts receivable 70,3 95,7 Short-term borrowings 19,3 14,8 Cash and cash equivalents 36,9 39,5 Other current liabilities 56,5 51,3 Oth. receivables/prepayments 27,5 22,0 Assets 260,1 273,1 Liabilities & equity 260,1 273,1 Equity Ratio 36% 33% Net Debt 10,9 1,5 Working Capital 57,3 51,5 15

16 The share grosso holding 18,5% Shareholder structure S&T outperformed TecDAX Niederhauser 13,8% Free Float 67,7% Shares: 43,8 Mio. shares Price (July 31 th ) EUR 4,77 EPS (2014) 32 cent EPS w/o PPA amortization (2014) 37 cent (80% rollout in 4 years) Dividend (2015) 7 cent ( 6 cent in 2014) Market Cap EUR 210 Mio. Liquidity in Shares EUR 75 Mio. p.a. Target: enter TecDAX Index in 2015 or early

17 S&T s growth path continues Consolidated Income (in EUR Mio.) Revenue (in EUR Mio.) 11,9 14,0 >15 Appliances Services % ~465 9, e e Gross Margin 32,9% 33,0% 35% Mid-term target: 10% EBITDA 17

18 Summary Achievements 2015 Ongoing growth in sales and profit H1/2015: Gross Margin increased to 36,6% (H1/2014: 32,9%) Next steps Stop losses in Smart Grid, strengthen NES in Europe, benefit from EU regulation, convert pipeline to revenues Proceed with Gross Margin improvement strategy (2017: 40% revenues in appliances) 2015: Release IoT Security Solutions basis for strong growth in Internet of Things RISKS wrong technology investments Russian economy slows down EU smart grid regulation delayed OPPORTUNITIES growth in Smart Energy growth in Cloud & Security boost market cap to industry median 18