Swiss Equity conference zürich

Transcription

1 Eichhof Holding / Datacolor Swiss Equity conference zürich 18 September 2008 Presentation Eichhof Holding - Datacolor Stefan Dobler, CFO Eichhof Holding Terry Downes, CEO Datacolor

2 Eichhof Holding / Datacolor Transformation of Eichhof Group Status of transactions Beverage Business sold to Heineken Sale of Real Estate Portfolio on target to be closed by year-end 2008 sales price target over portfolio-value of CHF 100M Preparation of Datacolor as focused pure play on the stock market SWX 18 September 2008 SE conference zürich - 2 -

3 Eichhof Holding / Datacolor Datacolor's strategy Medium term growth into adequate size for stock market SWX Maintaining aggressive growth and profitability targets Intensify growth through acquisitions in addition to organic growth Leveraging strong position as No. 2 in color management market Capitalize on debt free balance sheet Lean management structure 18 September 2008 SE conference zürich - 3 -

4 A Global Leader in Color Management Solutions Company Overview September 2008 Industry Overview Growth Targets and Strategy Investment Highlights September

5 Color Management

6 Color Management Managing suppliers, materials and processes across complex supply chains to consistently and efficiently achieve the intended color 18 September 2008 SE conference zürich - 6 -

7 Color Management - Consumer Products No two monitors are the same

8 Color Management Color Management Solutions Hardware, software and processes that solve the complex problems in achieving the intended color Customer Value of Color Management Speed Compress time to market Quality Consistent color Efficiency Reduce scrap Color Management Markets: Some industries where color is mission critical: - Fashion and footwear - Photography - Automobiles, appliances - Packaging - Consumer electronics - Printing - Home furnishings - Food and beverage

9 Business Model Sustain and expand leading position in developing, manufacturing, and globally distributing precision instruments, software and services for leading edge color management solutions Primary Industrial customers are: Specifiers in the supply chain (e.g. automotive) Textile, leather, paint, plastics, paper producers Primary Consumer customers are: Serious to professional photographers

10 Key Market Characteristics Key market characteristics: Shift to digital workflow creates demand for broader solutions and drives growth Attractive potential in new segments Technology-driven solutions High entry barriers Low capital investment, high cash flows

11 Overview Datacolor Unchallenged number two in global color management market Market leader in textile industry strong partner of automotive industry Revenues increased by 6.7% to USD 71M (2007) Headquarters Lawrenceville NJ, USA Offices - 11 countries Representation - 65 countries 330 employees in 25 countries R&D U.S., Switzerland, China Manufacturing U.S., China Gent Paris Manchester Milan Dusseldorf Zurich Taipei Suzhou Shanghai Hong Kong Lawrenceville Mumbai 18 September 2008 SE conference zürich

12 Balanced Portfolio 18% 28% 82% 72% Mix between Industrial and Consumer becomes more balanced due to faster growth of Consumer business % of Total Sales 2007 Geographical sales well balanced 30% 31% Asia Europe Americas 39% 18 September 2008 SE conference zürich

13 Comprehensive Portfolio Industrial Hardware Spectrophotometers Color laboratory equipment Software Matching Quality control Communication Services Spectrophotometers Software Services 15% Product Mix Software 30% Hardware 55% Lab Equipment 18 September 2008 SE conference zürich

14 Major Customers Apparel & Footwear Automotive Industry Paints/Plastics The names, trademarks, service marks, logos and icons of the above companies 18 are September prosperities 2008 of the respective companies. SE conference zürich

15 Unmatched Portfolio Consumer Products Award-winning monitor and printer calibration solutions for digital photography workflows Target Customers Serious to professional photographers Distribution Photo and electronics retailers e.g. Media Markt e-tailers e.g. Amazon Electronics distributors Datacolor web store Asia 15% Sales by Region Americas 50% Europe 35% 18 September 2008 SE conference zürich

16 Color Management Market Served market for color management providers such as Datacolor is estimated at USD million Total estimated market size USD 1 billion Served market: Industrial Segment USD 600 million Consumer Segment (professionals, enthusiasts) USD million Estimated Market Size Currently Served Market Unserved Market Served Market Served Market Industrial Segment Unserved Market (Growth Potential) Consumer Segment

17 Current Market Shares HunterLab 4% Konica Minolta 7% Byk-Gardner 9% Datacolor 15% All others 6% X-Rite 59% Datacolor share in major market segments Fashion and footwear 65% Photography 55% Pulp and Paper 65% Paint/plastics producers 35% Retail paint 20% Printing 5% USD 650 million Served Market Chart data based on Datacolor estimates

18 Focused Growth Strategy Datacolor: -Strong No 2 in the industry -Leadership in its focused market segments Accelerated product development and new services Entry into adjacent market segments seeking leadership position Selected acquisitions to expand technology base and market position New organization structure, gains in efficiency

19 Miniature Sensor 18 September 2008 SE conference zürich

20 Well-Defined Acquisition Strategy Strong balance sheet will support acquisitions Proven track record acquiring and integrating Consumer business

21 Streamlined Organization Structure Terry Downes President/CEO With Datacolor since 1973 Marketing Doris Brown Vice President With Datacolor since 2008 Human Resources Gary Brennan Director With Datacolor since 2001 Industrial - BU Consumer- BU Operations Finance & Admin. Albert Busch Vice President With Datacolor since 2008 Brian Levey Vice President With Datacolor since 1996 Terry Downes (a.i.) John Scott CFO With Datacolor since

22 Sustainable Efficiency Improvements Consistently lower cost instrument designs Tightened industrial sales organizations Strengthened web marketing Powerful new manufacturing site in China Concentrated manufacturing in Suzhou Cost-efficient production for export and local market Flexibility for planned expansion Specific outsourcing of product maintenance Efficient worldwide ERP platform established 18 September 2008 SE conference zürich

23 Investment Highlights Clearly focused pure play in the global market for color management solutions with above-average growth potential Well balanced revenues from industrial and consumer markets, as well as from a geographic point of view Rapidly achieving adequate size for stock market EBITDA Margin of 18% to 20% in the mid-term R&D rate of 10% to 12% p.a. Sustained organic growth driven by cutting-edge technology in hardware & software products, effective service packages and acceleration of development of adjacent markets Strong balance sheet allows to profit from industry consolidation and fast growing demand for color management solutions in the supply chains 18 September 2008 SE conference zürich

24 A Global Leader Set for Growth