WINCOR NIXDORF ANALYST CONFERENCE CALL April 23, 2015

Transcription

1 WINCOR NIXDORF ANALYST CONFERENCE CALL April 23, 2015

2 Disclaimer This document has been prepared by Wincor Nixdorf AG solely for use in this presentation. The information contained in this document has not been independently verified. No representation or warranty whether express or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained therein. Neither the Company nor any of its affiliates, advisors or representatives shall have any liability whatsoever (in negligence or otherwise) for any loss arising from any use of this document or its content or otherwise arising in connection with this document. This document does not constitute an offer or invitation to purchase or subscribe for any shares and neither this document nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This document contains forward-looking statements that are based on current estimates and assumptions made by the management of Wincor Nixdorf AG to the best of its knowledge. Such forward-looking statements are subject to risks and uncertainties, the non-occurrence or occurrence of which could cause the actual results including the financial condition and profitability of Wincor Nixdorf to differ materially from or be more negative than those expressed or implied by such forward-looking statements. This also applies to the forward-looking estimates and forecasts derived from third-party studies. Consequently, neither the Company nor its management can give any assurance regarding the future accuracy of the opinions set forth in this document or the actual occurrence of the predicted developments. 1

3 Key developments Performance in 2014/15 (YoY) Net Sales -2%, EBITA (incl. restr. cost) -31%, EBITA (excl. restr. cost) -19%, Net Income -31%, Operating Cash Flow +19% Key developments in Q2 2014/15 Banking and Retail business declines with strong impact on margins Strong decline in HW in particular in Banking which could not be offset by significant increase in SW/Service business Germany with a small decline Europe w/o Germany with strong decline driven by Eastern Europe Revenue increase in Asia/Africa Strong decrease in Americas especially due to disappointing yoy performance in Retail Gross margin erosion mainly due to hardware scale effects Significant restructuring program started to take out capacities and reduce costs on the hardware side while accelerating the transformation towards Software/Services New guidance for FY 14/15 and more outlook for the next two years 2

4 Sales by segment (EUR million and % of revenue) 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 1, % Banking 59% 59% 60% 63% 67% 68% 67% 66% 65% 65% 63% 65% Retail 41% 41% 40% 37% 33% 32% 33% 34% 35% 35% 37% 35% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 m 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 YoY* YoY 13/14 14/15 Banking Sales 930 1,028 1,178 1,358 1,547 1,532 1,497 1,527 1,524 1,614 1,566-3% % EBITA % % % of sales Retail Sales % % EBITA % % % of sales Total Sales 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 +0% 1,230 1,208-2% EBITA % % % of sales *YoY 2013/14 to 2012/13

5 Sales by region Strong internationalization to achieve global leadership (% of revenue) 100% Germany 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 1,208 33% 29% 29% 27% 25% 28% 29% 27% 24% 23% 24% 23% Europe w/o Germany 48% 52% 51% 52% 52% 47% 43% 48% 49% 49% 46% 46% Asia / Africa America 15% 12% 11% 12% 13% 14% 16% 15% 16% 17% 18% 19% 7% 8% 8% 8% 8% 9% 13% 10% 11% 11% 12% 12% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Sales (m ) 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 YoY* 13/14 14/15 YoY Fixed FX Germany % % Europe w/o Germany ,129 1,215 1, ,123 1,134 1,216 1,142-6% % -2% Asia / Africa % % -2% America % % -12% Total 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 +0% 1,230 1,208-2% -4% 4 *YoY 2013/14 to 2012/13

6 Currency and acquisition effects in Net Sales 14/15 +0m EUR -27m EUR -2% -2% -4% -2% Organic Growth Acquisitions Total Growth Currency Effects Based on Fixed Currencies 5 Differences due to roundings Wincor Nixdorf 5AG

7 Sales by type Long-term shift from product manufacturer to an end-to-end solutions provider (% of revenue) 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 1,208 Hardware 60% 59% 59% 58% 58% 54% 51% 50% 47% 48% 46% 42% Software/ Services 40% 41% 41% 42% 42% 46% 49% 50% 53% 52% 54% 58% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Sales (m ) 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 YoY* 13/14 14/15 YoY Hardware 950 1,032 1,157 1,254 1,346 1,224 1,140 1,159 1,100 1,185 1,127-5% % Software/Services ,026 1,099 1,169 1,243 1,280 1,342 +5% % Total 1,576 1,744 1,948 2,145 2,319 2,250 2,239 2,328 2,343 2,465 2,469 +0% 1,230 1,208-2% 6 *YoY 2013/14 to 2012/13

8 Financial Overview Gross margin * (EUR million, % of net sales) ** % 27.9% 27.5% 27.6% 27.4% 25.9% 25.1% 24.5% 20.9% 22.0% 22.0% 22.8% 20.4% 03/04 04/05 05/06 06/07 07/08 *Gross margin before carve-out effect 08/09 09/10 10/11 11/12 12/13 13/14 13/14 14/15 SG&A spending (EUR million) ** % 15.5% 14.7% 14.4% 14.0% 13.3% 13.4% 13.2% 12.8% 12.7% 11.8% 13.3% 12.7% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 13/14 14/15 7 ** incl. sale of building in Singapore

9 Financial Overview R&D spending (EUR million) % 4.5% 4.5% 4.5% 4.5% 4.6% 4.5% 4.3% 3.8% 4.0% 4.0% 3.9% 3.7% 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 13/14 14/15 Employees 6,114 6,937 7,787 8,379 9,460 9,381 9,309 9,171 9,057 8,826 9,198 9,232 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 8

10 Consolidated Income Statement 14/15 [m ] FY 13/14 FY 13/14 FY 14/15 Prev. Year 1-6 Variance 1-6 Net Sales 2,469 1,230-2% 1,208 Cost of Sales (-) -1, % -962 Gross Profit % 246 in % of Net Sales 22.0% 22.8% 20.4% R&D (-) % -45 in % of Net Sales 4.0% 3.9% 3.7% SG&A (-) % -154 in % of Net Sales 11.8% 13.3% 12.7% EBITA (incl. Restr.) % 47 in % of Net Sales 6.3% 5.5% 3.9% Extraordinary effects EBITA (excl. Restr.) in % of Net Sales 5.5% 5.5% 4.6% EBITDA % 73 in % of Net Sales 8.7% 8.0% 6.0% Interest Income/Expenses EBT Total Tax Tax rate 29% 29% 29% Profit for the period % 31 Wincor Nixdorf interests % 30 * * *incl sale of building in Singapore 9 Differences due to roundings

11 Cash Flow Statement 14/15 [m ] FY 13/14 FY 13/14 FY 14/15 Prev. Year 1-6 Variance 1-6 EBITA Amortization / depreciation Write-down of rew. service parts EBITDA Interest paid (net) Income taxes paid (+/-) Working capital (+/-) other assets/liabilities and other items Cash flow from operating activities Cash flow from investing activities thereof sale building Singapore and other equipment thereof acquisition activities thereof reworkable service parts thereof capital expenditures Cash flow from financing activities thereof net changes in financial loans thereof payments made to shareholders Change in Cash / cash equivalents Cash / cash equivalents as at Cash / cash equivalents as at end of period Free Cash flow Differences due to roundings

12 Balance Sheet 14/15 [m ] 30/09/ Prev. Year Variance Actual ASSETS 1, ,519 NON-CURRENT ASSETS Intangible assets Property, plant and equipment Investments Reworkable service parts Deferred tax asset Other assets CURRENT ASSETS Inventories Trade receivables Other assets Cash and cash equivalents EQUITY AND LIABILITIES 1, ,519 EQUITY NON-CURRENT LIABILITIES Accrual for pensions Other accruals Financial liabilities Deferred tax liability other liabilites CURRENT LIABILITIES Other accruals Financial liabilities Advances received on orders Trade payables Current income tax liability Other liabilities WORKING CAPITAL in % of Net Sales 16.0% 11.7% NET DEBT EQUITY-RATIO 27.7% 27.2% * Working Capitalwithout reworkable service parts 11 Differences due to roundings

13 Target: 120 Mio. Euro annual impact from restructuring program IMPACT OF RESTRUCTURING PROGRAM AND FINANCIAL GUIDANCE FY 14/15 Prev. Guidance FY 14/15 New guidance FY 14/15 FY 15/16 FY 16/17 FY 17/18 Total Net Sales (in % vs. prev. year) EBITA (before restructuring) > 0%* > 135* -3% to -5% ~ 100 Restructuring Charges ~ -80 ~ -40 ~ 120 (one time) Annual cumulative impact of restructuring ~120 ~ 120 (annual) EBITA (all in) > 135* ~ 20 * Moderate increase of revenue; Increase of EBIT above top-line growth (based on 135 Mio. EUR EBITA in FY 13/14) 12

14 Restructuring will speed up Software/Services transformation Seven point plan Significantly accelerate growth and improve margins of software and professional services Double software sales capacities Double the number of SW R&D professionals Increase Professional Services capacities and increase share of near shore delivery (transfer Professional Services capacities from Western to Eastern Europe) Execute M&A transactions for more inorganic growth Grow high-end services and improve margins in services Impose operational excellence in global services delivery processes Turnaround / grow profitability of selected projects & areas/regions Increase share of near shore delivery in services (transfer IT operations capacities from Western to Eastern Europe) Convert hardware product, development and supply chain strategies adjust to changing demand pattern Pursue partnering strategies for hardware products ranging from joint development for core modules to OEM sourcing of non-core modules Adapt hardware R&D capacities to new partnering approach Reduce capacities in production and accelerate outsourcing of component manufacturing and preassembly Carve-out of Cashless Payment unit Accelerate growth and prepare for strategic options Execute a pricing excellence program to improve pricing discipline and margins Streamline G&A costs Align organization setup to foster go-to-market focus and e2e product responsibility 13

15 Impact of Restructuring Program Headcount impact (redundancies, outsourcing) of restructuring program: ~1,100 employees (12%) up to FY17/18 by function by region by year of implementation Production: ~500 Impact in Germany ~500 4/2015 9/2016 ~650 HW R&D: ~50 Impact in Europe w/o Germany ~250 9/2017: ~350 Software and services: as effect of near shore transfer ~350 RoW ~350 9/2018: ~100 SG&A: ~200 Reinvestment in Software & Services sales, R&D and Professional Services resources in approximately same amount 14

16 Software/Services transformation with attractive financial target model FY14/15e Target FY17/18 Gross profit in % of net sales* Net Sales CAGR FY14/15-17/18 Gross profit in % of net sales Software ~38% ~15% 40% Services ~17% ~5% 20% Hardware ~19% ~0% ~20% * Before restructuring charges 15

17 Carve-Out of Aevi: Cashless Payments Solutions Portfolio Albert Innovative, open, interactive multifunctional payment device. Aevi Pay Simple, convenient, trusted payment. Anytime, Anywhere. Aevi Money From card or mobile. To cash. Albert Smart Terminal Payment Services Marketplace Services Merchant Acquirer Mobile Network Operator Payment Service Provider (PSP) EFT-POS Transaction Services mpos Services E/M-Commerce Services Payment Services Merchant Acquirer Tier 1 and 2 Retailer Mobile Network Operator Payment Service Provider (PSP) Switching/Transaction Services Merchant Acquirer Tier 1 and 2 Retail Banks (PSP) Aevi Marketplace Transform transactions into customer experiences. Aevi Community Platform for developers. Success Stories CBA Market Launch End of March Developer Portal Live Hackathon at Apps World Success Stories Total Transition into Run Phase Rabo mpos project live ING mpos project live Success Stories Sainsbury s Bank contract signed and in build phase 16

18 Aevi Growth Story Net sales in meur and EBITDA in % of net sales 150 Key Motivation for Carve-Out Become a payment company with the character of a start-up % - 10% FC 14/15 15% TARGET 17/18 Fast moving payments market requires highly agile organization Allow partners to participate in the Aevi Story Accelerate cashless payment growth ambitions Building international footprint / Increase market shares Continue to drive innovations in payments Targeted partnerships and prepare company for M&A 17

19 Back-up 18

20 Albert All-in-one open payment solution Aevi hardened OS based on Android Wi-Fi / Bluetooth / 3G connectivity GPS 8MP Camera Power jack Micro USB host connection PCI PTS 3.1 NFC reader Magnetic stripe reader Gorilla glass Thermal printer module Smart card reader Touchscreen (including PIN entry) SDKs allow access to Albert s full functionality 19