S&T - Company Presentation. April 2015

Transcription

1 S&T - Company Presentation April 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 385,5m revenue (2013: EUR 337,9m) with EUR 22,9m EBITDA (2013: EUR 20,1m) 2014: employees (2013: 1.570) in 20 countries S&T is a leading IT technology company in DACH and Eastern Europe 2

3 Highlights 2014 Growth with significant profit improvements Revenue: +14% to EUR 385,5m Consolidated income: +17% to EUR 14,0m Operating Cashflow: +85% to EUR 20,6m Backlog: + 62% to EUR 156,6m Smart Energy market entry Investments in ubitronix (Linz; 51%)/Affair (Moscow; 48%+3%)/NES (San Jose; 61,5%) End-to-End-solution provider in the strongly growing Smart Grid business Shareholder focus Increased Market Cap by around 30% Management and Supervisory Board will propose dividend with 7ct (2014: 6ct) to Annual Shareholder Meeting at June 25,

4 S&T Business Model Appliances Segment split into Appliances Security Appliances Security Appliances Smart Energy Services EE Services DACH Appliances Smart Energy Portfolio strategy: more technology and higher gross margins 2014: GM 2015p: 60m 2014: GM 2015p: 82m 2014: GM 2015p: 234m 2014: GM 2015p: 90m 4

5 Strategy % Appliances Increase profit by offering more own technology Grow Appliances revenues with high (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 17,9m target EUR 40m 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 Leverage cost efficient EE resources Increase GM program 17% (2013) to 23% (2015) target 30%, HW combined with services Increase technology portfolio -> mid term 40% gross margin (2014: 33%) Services 40% Appliances 5

6 Security Appliances: driving profit Appliance = black box (hardware + software) for dedicated security functionalities Focus on profitable niches: Security for Infotainment, Smart Grid and IoT (industry) Strong customer base: Siemens, Telefonica/O2, Novomatic, ÖBB, tipp3, Bosch Appliances generate recurring revenue requiring long term maintenance contracts 2014 Appliances S&T Group Gross Margin 59% 33% EBITDA Margin 17% 6% S&T group s most profitable segment 6

7 Appliances: Internet of Things (IoT) Internet of Things is the next hype in IT industry 100 billion machines will be added to 4 billion computers currently connected over the internet S&T supports this market with security solutions machines and robots need special protection! ParSeCo security family support our products Cost efficient and custom to vertical market e.g. real time Soft Firewall for smart grid meters Chip based Firewall for industry IoT Cloud Firewall for infotainment R&D highly subsidized by Austrian government Growth driver: S&T s IoT products will grow from EUR 13m (2014) to EUR 40m in

8 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 billion TAM within the EU (>200 million 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) 8

9 Appliances Smart Energy: S&T s Expertise 61,5% owned subsidiary NES (San Jose, CA - formerly Echelon) pioneer and market leader in Smart Grid business, installed base 4mio. in Europe = 30% market share Open Smart Grid Protocol (OSGP) owner & inventor, Recent orders: USD 20 miollion Smart City Wroclav, USD 12 million Prepa/Puerto Roco, USD 1 billion project pipeline for the next 3 years (mainly Europe) NES Europe: Linz, former Ubitronix merged to NES April 1st - support and engineering center High Speed/Security Engineering, Home Automation with Load Management RT Soft: (Moscow) focus on electrical & gas grids in RUS 400 highly skilled and cost efficient engineers act also as 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 9

10 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 million per year) Constant investments in technology start-ups Offer sales channel and financing to entrepreneurs Employee qualification ~400 others ~750 R&D engineers ~1.050 engineers for services Cloud Computing Security Smart Energy Client security appliances (cooperation with MS cloud) Various firewalls for niche applications Big data software solution supporting management of complex energy grids 10

11 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 Cloud drives security requirements Steel Cloud ISO in SLO, HR, SK Cross-selling of Appliance/Smart Grid Technology Services DACH Leverage EE costs to win in DACH 2014: German subsidiary in Mendig founded, acquisitions planned GM improved from 19% (2013) to 22% (2014), 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% Expansion in Germany started 11

12 Company Structure S&T Group East Europe DACH Technologies Russia (-) Poland (+) Austria Security 60m Romania (+) Czech Germany (+) Infotainment Slovenia Croatia Switzerland Automation Hungary Slovakia Smart Energy Bulgaria Albania Moldova 2m Serbia Macedonia Montenegro Significant growth in Poland and Germany 12

13 Long term trend (in EUR m) 153 REVENUES CONSOLIDATED INCOME 11,9 9,4 8,2 14,0 81 4, Backlog EUR m 12/14 12/13 12/12 Project pipeline Scheduled orders Significant growth in all key parameters from 2010 to

14 S&T Key Figures Revenues (EUR million) 385,5 337,9 Gross margin (EUR million) 127,2 111,2 EBITDA (EUR million) 22,9 20,1 EBIT (EUR million) 16,6 14,3 EBIT before PPA amortization (EUR million) 19,5 16,8 EBIT Interest Coverage Ratio 4,4 5,3 EBITDA Interest Coverage Ratio 7,1 7,4 Total Debt / Capital 0,3 0,4 Net Debt (EUR million) 1,5 9,4 Working Capital (EUR million) 51,5 47,8 Equity Ratio 33% 32% Operating Cashflow (EUR million) 20,6 11,1 Employees

15 Split by Segments (in EUR million) REVENUE 2013 vs ,7 217,2 GROSS MARGIN 2013 vs ,4 65,0 42,2 96,7 89,6 41,6 78,8 18,7 20,0 26,1 Services DACH Services EE Appliances EBITDA 2013 vs ,0 10,8 11,0 10,1 Services DACH Services EE Appliances Consolidated Income 2013 vs ,5 7,2 7,6 7,3 1,9 1,1-0,2-0,5 Services DACH *) Services EE Appliances Services DACH *) Services EE Appliances *) including HQ-costs 15

16 S&T Group Balance Sheet (in EUR million) EQUITY 89,7 71,2 NON-CURRENT ASSETS 85,9 67,6 NON-CURRENT LIABILITIES 43,1 34,9 Fixed assets 72,3 56,5 Long-term loans and borrowings 26,1 23,9 Other assets 13,6 11,1 Other non-current liabilities 17,0 11,0 CURRENT ASSETS 187,2 152,5 CURRENT LIABILITIES 140,3 114,0 Inventories 30,0 22,7 Trade accounts payable 74,2 46,6 Trade accounts receivable 95,7 71,7 Short-term borrowings 14,8 28,4 Cash and cash equivalents 39,5 42,9 Other current liabilities 51,3 39,0 Oth. receivables/prepayments 22,0 15,2 Assets 273,1 220,1 Liabilities & equity 273,1 220,1 Equity ratio 33% 32% Net Debt 1,5 9,4 Operating Cashflow 20,6 11,1 16

17 The share grosso holding 18,8% Shareholder structure S&T outperformed TecDAX by 22% in 15 months Niederhauser related 14,9% Free Float 66,3% Shares: 43,3 million shares Price (April 2nd) EUR 4,25 EPS (2014) 32 cent EPS wo PPA amortization (2014) 37 cent (80% rollout in 4 years) Dividend (2015) 7 cent ( 6 cent in 2014) Market Cap EUR 184m Liquidity in Shares EUR 50m/y Target: enter TecDAX Index in

18 S&T s growth path continues Consolidated Income Revenue 11,9 14,0 >15 Appliances Services % ~465 9, e e Gross Margin 32,9% 33,0% 35% Mid-term target: 10% EBITDA 18

19 Summary Achievements 2014 ~17% growth in consolidated income YoY first dividend payment (6 ct) in 2014 Smart Grid market entered Next steps 2015: EUR 82 million revenue in Smart Energy - convert backlog and pipeline to revenues Proceed with Gross Margin improvement strategy (30% 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 19