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22
Safe-Harbor-Statement
UNIWHEELS GROUP INVESTOR PRESENTATION
This presentation includes forward-looking statements based on the beliefs of UNIWHEELS
AG management. Such statements reflect current views of UNIWHEELS AG with respect to
future events and results and are subject to risks and uncertainties. Actual results may vary
materially from those projected here, due to factors including changes in general economic
and business conditions, changes in currency exchange, the introduction of competing
products, lack of market acceptance of new products, services or technologies and changes
in business strategy. UHIWHEELS AG does not intend or assume any obligation to update
these forward-looking statements.
This presentation constitutes neither an offer nor recommendation to subscribe or buy in any
other way securities of UNIWHEELS AG or any of the companies that are members of the
Group at present or in the future, nor does it form part of such an offer and it should not be
understood as such. This presentation does not constitute an offer of sale of securities in the
United States of America. Securities may not be offered or sold in the United States of
America without registration or exemption from registration in accordance with the U.S.
Securities‘ Act of 1933 in its currently valid form.
3
01 UNIWHEELS AT A GLANCE
02 THE BUSINESS
03 FY 2016 UPDATE
04 FINANCIALS 12-16
05 APPENDIX
UNIWHEELS Group Investor Presentation
AGENDA
4
UNIWHEELS AT A GLANCE
UNIWHEELS Group Investor Presentation
01
55
Key Investment Highlights
01 UNIWHEELS AT A GLANCE
Premium OEM focus in Automotive provides access to global markets and emerging economies, a
balanced customer base and less exposure to market volatility.
Accessory: Excellent market position with four major brands that address all market segments. Well-
established for decades in motor sport.
Quality leadership and operational excellence: Added value for customers thanks to high-end
technologies such as wheel diameters, light-weight solutions and sophisticated surface treatments.
Maximum efficiency in the production process
Solid financial track record 2012 to 2016: EBITDA tripled and net profit up fivefold. Net debt at a factor
of just 0.6 of EBITDA despite capex programme. Strategy 2022: A programme with ambitious financial
goals
One of Europe’s leading alloy wheel suppliers and long term successful track record with long-standing
customer relationships
Solid market growth: Rising demand from OEMs, increasing automobile production and a higher share
of lightweight alloy wheels could lead to capacity shortages in the near future
Shareholder orientation: transparency in financial reporting and proactive IR
UNIWHEELS GROUP INVESTOR PRESENTATION
3
4
5
6
1
2
7
66
Historic and future growth
01 UNIWHEELS AT A GLANCE
Acquisition of
RIAL
Leichtmetallfel
gen GmbH
by Ralf
Schmid
founded 1978
ALUTEC /
RIAL starts
first OEM-
supply
to VW / Votex
Foundation of
corporate
group
UNIWHEELS
United Wheels
Group
Foundation of
ALUTEC
Leichtmetallfel
gen GmbH
by Ralf
Schmid
Construction
of new
ALUTEC/RIAL
Production
Plant
Stalowa Wola,
Poland
Expansion of
production
capacities/
start up of new
painting
facility
in polish plant
Start of new
large Painting
Line in Polish
plant
New Central
Logistic
Centre for
Accessory
Division
Launch of new
alloy-
lightweight
technology
LightForming
Launch of new
FlowForming
line in German
plant
Acquisition of
European
Business of
ATS
with
production
units in
Germany and
Poland
founded 1969
1996 2000 2003 - 2004 20081998 2001 2005 2012
UNIWHEELS
Holding
(Germany)
GmbH is
converted into
the
stock company
UNIWHEELS
AG
20142009-2012
UNIWHEELS
AG
conducts IPO
and is listed
on Warsaw
Stock
Exchange
2015
UNIWHEELS historic sales volume development
UNIWHEELS GROUP INVESTOR PRESENTATION
Revenue Split 2016 [%]
Σ 8,76
77
Business model – supplier to OEMs and Aftermarket
01 UNIWHEELS AT A GLANCE
Automotive Business Accessory Business
Brands
Business Model
Group revenues
split per region
One of the leading suppliers of alloy wheels to major
European car manufacturers (OEM)
Wheels are produced with low-pressure die casting
technology, test criteria according to OEM standards met
without fail -> positioned as quality and innovation leader.
Strong and long-established relations with OEMs such
as Audi, BMW / MINI, Mercedes / AMG, Jaguar-Land Rover
and Volvo.
Premium: strong emphasis on premium segment. Direct
distribution via key account management to OEMs as Tier-1
supplier, mainly in the premium segment.
The market-leading manufacturer of alloy wheels for the
accessories market (AM) in Europe
Four brands: ATS, RIAL, ALUTEC and ANZIO, covering
different customer groups from premium to economy
Distribution channel via own trading companies to major
tire and wheel distributors, retailers as well as leading car
dealers, and UNIWHEELS B2B Webshop
UNIWHEELS GROUP INVESTOR PRESENTATION
88
Sales structure
01 UNIWHEELS AT A GLANCE
Revenue [EUR m]Number of wheels sold [m units]
+11.6%
+3.7%+7.8%
+14.1%
-1.5%
+10,6% +23.6%
+7.3%
UNIWHEELS GROUP INVESTOR PRESENTATION
Σ 8,76
-11.7%
+12.1%
+6.3%
+5.9%
9
STRATEGY 2022 PROFITABLE AND SUSTAINABLE GROWTH
OPERATIONAL EXCELLENCE AND PROCESS INNOVATION
A TEAM-ORIENTED CORPORATE CULTURE FOSTERING INNOVATION
EXCELLENT PRODUCT QUALITY AND INNOVATION
COST EFFICIENCY AND SOLID FINANCIAL POSITION
TECHNOLOGYLEADERSHIP
≥ 700mSALES
>15 %EBITDA
>10 %EBIT
>20 %ROCE
< 2.0xNet debt / EBITDA
UNIWHEELS GROUP INVESTOR PRESENTATION
More on Strategy 2022 on www.uniwheels.com -> Investor Relations -> UNIWHEELS Profile -> Strategy 2022:
http://www.uniwheels.com/uwag/en/home/investor-relations/uniwheels-profile/strategy2022/
01 UNIWHEELS AT A GLANCE
1010
UNWHEELS AG Executive Board
01 UNIWHEELS AT A GLANCE
Dr. Thomas Buchholz
CEO
At UNIWHEELS since: 2015
Areas of responsibility :
• Strategy & Growth
• Automotive/OEM
• Group Technology
• Group Human Resources
• Quality Management
Dr. Karsten Obenaus
CFO
At UNIWHEELS since: 2003
Areas of responsibility :
• Finance/Accounting/Taxes
• Controlling
• Investor Relations
• Legal
• Compliance
• Sustainability
• Risk Management
• Purchasing
• IT
UNIWHEELS GROUP INVESTOR PRESENTATION
Dr. Wolfgang Hiller
COO
At UNIWHEELS since: 2016
Areas of responsibility :
• Group Operations
• Group Industrial Engineering
• Accessory/Aftermarket
• Group Marketing & E-Commerce
• Motorsports
• Environmental Management
1111
Tender Offer by Superior: Transaction Summarized
01 UNIWHEELS AT A GLANCE
Superior Industries International AG launched a tender offer to acquire 100% of the Company´s shares
(including the shares held by UHM). Offer period starts as soon as the regulatory approvals are
received.
The Executive Board has been notified today by its major shareholder UNIWHEELS Holding (Malta)
Ltd. ("UHM") that UHM has entered into an irrevocable undertaking with Superior Industries
International, Inc. ("Superior") to sell all its shares in the Company (representing approximately 61.29%
of the current outstanding share capital of the Company) to Superior Industries International AG, a
wholly-owned subsidiary of Superior.
Superior offered a cash consideration of 236,07 PLN per share in the tender offer, equivalent to the 3-
Months VWAP of the Company's shares prior to the announcement of the tender offer.
UNIWHEELS GROUP INVESTOR PRESENTATION
1212
Tender Offer by Superior: Strategic Rationale - Global No. 2
01 UNIWHEELS AT A GLANCE
Transaction creates one of the largest light vehicle OEM aluminum wheel manufacturer in
the world by combining the #1 North American and #3 European suppliers with nine
manufacturing facilities across Germany, Poland, Mexico and U.S..
Positions the combined company as a leading global partner to automotive OEMs located
in both North America and Europe
Adds UNIWHEELS’s leading European manufacturer of aftermarket aluminum wheels with
top brands, including ATS, RIAL, ALUTEC and ANZIO. The trademark rights of these high-
value brands remain with company.
UNIWHEELS GROUP INVESTOR PRESENTATION
1313
Tender Offer by Superior: Highly Complementary
Businesses
01 UNIWHEELS AT A GLANCE
Significant opportunities to win new business across customers by leveraging globally
competitive manufacturing capacity, and highly complementary product technology and
manufacturing process expertise.
Bolsters combined company’s human capital by integrating two highly skilled organizations –
UNIWHEELS’s focus in Germany and Poland and Sapphire’s operations in the U.S. and Mexico.
With no manufacturing overlap, the combined business will require minimal restructuring actions
while creating synergy opportunities and value creation for all stakeholders
Highly complementary customers, R&D and engineering capabilities create global scale,
positioning the combined business for profitable and sustainable growth.
UNIWHEELS GROUP INVESTOR PRESENTATION
14
THE BUSINESS
UNIWHEELS Group Investor Presentation
02
1515
Automotive: diversified and long term relationships
UNIWHEELS GROUP INVESTOR PRESENTATION
02 THE BUSINESS
Group BrandRelation-
shipMain models supplied
Audi Audi 20 years A3, A4, A5, A6, A7, A8, Q2, Q3, Q7, i3
BMW-Group BMW 13 years 1-series, M5/M6-series, X3, X6
Mini 5 years One, Clubman, Countryman
Ford Ford 34 years Kuga, S-Max
Honda Honda 7 years Civic, CR-V
JLR-Group Jaguar 15 years XJ, XKR, XF, XK, F-Type, F-Pace
Land
Rover
10 years Evoque, Range Rover
Mercedes-
Group
Mercedes 35 years S-class, CLS / CLS shooting break, SL,
E-class, C-class, A/B-class, GLA, GLK
AMG 30 years C-class, SL-class, SLK-class, G-class
Mitsubishi Mitsubishi 10 years Outlander, Colt
Nissan Nissan 4 years Qashquai, Juke
Opel Opel 30 years Corsa, Astra, Insignia
Porsche Porsche 44 years 911, Macan, Panamera, Cayman, Cayenne
PSA PSA 14 years DS 5, C4 Picasso, Cactus, 308, 508, 3008
Smart Smart 12 years ForTwo
Suzuki Suzuki 1 year SX4
Volvo Volvo 38 years V40, S/V/XC 60, S/V/XC 90
VW-Group VW 23 years Amarok, Golf, Polo, Passat CC, Touareg
Bentley 13 years Continental
Seat 12 years Leon, Alhambra
Skoda 13 years Octavia, Superb
OEM sales 2016 [% of revenues]
OEM segments – focus on premium [% of
revenues]
1616
Mechanism of price adjustments with OEMs
02 THE BUSINESS
•Our contracts with customers include clauses which protect us from losses due to aluminum prices changes to a large extent, including fluctuations in EUR/USD.
•Price adjustments take place quartely based of the average aluminium prices in the previous three months. See graph below.
Aluminium (LME)
•Indicated at Metal Bulletin Index (MBI)
•Includes insurance, transport from producer to port warehouse
•Increasingly, price adjustments quarterly, same pattern as for LMEAlloy Premium (MBI)
•Negotiated directly with customers 1x per year
•Includes specific alloy and transport from warehouse to our plantsProduct Premium
Dec Jan Feb Mar Apr May Jun
Example quarterly LME and MBI adjustment scheme
New alloy
compo-
nent in
wheel
price for
the next
quarter
Average
LME
price
previous
three
months
Quartely
price
adjust-
ment with
OEMs
UNIWHEELS GROUP INVESTOR PRESENTATION
1717
02 THE BUSINESS
Automotive: project phases of an OEM wheel
RFQ Nomination SOP EOP
3-6 months after request for quotation (RFQ) from customers, wheel producer is nominated or not.During this phase, cost calculations and price negotiations take place.
At nomination, value-add prices, material costs and life-time reductions (long-term productivity) arefinalised.
From nomination to start of production (SOP), the wheel is developed and simulated (based onOEM´s specifications), mould is constructed and 0-series is tested: this takes 1.5-2.0 years
Usually, the wheel life cycle is half a car model´s life: most wheels will be replaced after facelift
The price effect of new wheels on our revenues comes with a time lag of 2-2.5 years.
Comment
Example model of project phases of an OEM wheel
UNIWHEELS GROUP INVESTOR PRESENTATION
1818
02 THE BUSINESS
Automotive: revenues are based on a project portfolio
New project 3
Project 2
Project 1
New project 2
Project 1
New project 1 New project 4
Project 3
Project 2
Project 1
Initial
PortfolioInitial
Portfolio Initial
PortfolioInit. Portfolio
Year 1 Year 2 Year 3 Year 4 Year 5
Our wheel portfolio consists of wheels in different project phases.
Portfolio is constantly changing as projects (with price adjustments) areending are replaced by new projects that did not have reductions yet.
80% of the portfolio is exchanged over a period of 4-5 years.
This secures our OEM wheel prices.
“Price pressures” would have a lagged effect coming in phases.
Comment
Exemplary model of the project portfolio development over years
OEM revenues are
a product of a
portfolio of wheels
in different project
phases
Initial
Portfolio
UNIWHEELS GROUP INVESTOR PRESENTATION
1919
Accessory: leadership in the market with 4 strong brands
UNIWHEELS GROUP INVESTOR PRESENTATION
02 THE BUSINESS
complimentary business cycle with OEM market (2010 as an
example, weak OEM market, much above average
aftermarket)
relatively stable market
on-going market consolidation (smaller players expected to
disappear from the market within the next years)
main consumer decision drivers
- price
- design
- logistics (24 hours delivery)
USD development makes imports from Asia unattractive
12,5
11,912
13,3
11,511,6
11,711,5 11,5 11,5
11,6 11,6
2007 2008 2009 2010 2011 2012 2013 2014 2015* 2016* 2017* 2018*
Number of wheels in aftermarket [in m]
Our four Accessory brands
Volume of wheels in the EU aftermarket [in m]
*
Complimentary market cycle to OEM business
UNIWHEELS is the leading manufacturer in the European
aftermarket with four well known brands covering wide
range of segments (premium to entry): RIAL, ALUTEC,
ANZIO and ATS
UNIWHEELS portfolio consists of top market brand
*forecast
2020
ATS exclusive supplier to DTM racing series
02 THE BUSINESS
Comment
From 2017, all DTM touring cars (Audi, BMW,Mercedes) will take the starting line with the newATS forged wheel.
The contract will run for at least three years.
Aluminum forged wheels made of a high-strengthspecial alloy.
UNIWHEELS now a partner to the world's besttouring car racing series.
We are very proud to be the DTM exclusivesupplier.
Excellent field of demonstration of the technicalexpertise of ATS and the entire UNIWHEELSGroup.
UNIWHEELS GROUP INVESTOR PRESENTATION
2121
Core competencies: 3 factors driving value added per wheel
Not only volumes drive our revenues.
We master three additional key characteristics that lead to higher value added:
Wheel Size
Complex
Surfaces
Lightweight
Technologies
1
2
3
75 % of our wheels are
delivered in diameters of
17″-20″ - with a rising
trend
Design and quality
requirements and the
trend to indivudalized car
configurations
Consumer and regualatory
trends towards lower CO2
emissions require weight
reductions
Wheels with up to
23″, e.g. for SUVs
High-gloss paint
Diamond Cut
Anti Corrosion
Finish
Flow Forming
Undercut
UNIWHEELS GROUP INVESTOR PRESENTATION
02 THE BUSINESS
2222
Production and process excellence
UNIWHEELS GROUP INVESTOR PRESENTATION
02 THE BUSINESS
Low-pressure
casting
Machining Varnishing
& Painting
Aluminium Final Check
& Delivery
Spectral
analysis
Melting /
Furnace
Degasing
Feedstock of primary
alloys from renowned
suppliers only
Batches of incoming
goods are scanned
assuring backtracking
Materials are spectral
tested guaranteeing
highest quality
Casting
X-Ray
Heat
treatment
Use of low pressure die
casting technology
Castings are tested in
full detail by fully
automated X-Ray
Additional tempering via
heat treatment machines
Machining
Quality-
check of
dimensions
Degreasing
CNC-machining of the
wheels and checks of
dimensions and quality
Wheels are 100%
checked for balancing
Degreasing as
preparation for later
varnishing
Preparation
Robotic
transfer
station
Painting
and clear
coat
process
“Chrome free”
preparation of the
wheels
Fully automated
varnishing and painting
Clear coat finishing
Final check
Packaging
Delivery
Optical check before
packing
Packing on exchange
OE-paletts and in boxes
Central location assures
24h-72h delivery in
whole Europe
2 3 4 5
aluminium price passed-through to OEM customers on the basis of long-term arrangements and short term price adjustments
regarding market premium over commodity prices (OEM) or hedged (aftermarket)
Construction
& design
design
Simulation
tool
construction
Wheel development
based on the customers'
specifications or own
design
Simulation and analysis
of wheel and tool
construction
Tool construction and
manufacturing
61
2323
Production companies, plants and capacities
UNIWHEELS GROUP INVESTOR PRESENTATION
02 THE BUSINESS
Stalowa Wola, PL Werdohl, D
Plant name UPP 1 UPP 2 UPP 3 (new) UPG
Capacity Max 2.2m
wheels
Max 4.7m
wheels
Max 2.0 m Max 1.8m wheels
Wheel
dimensions
14‘‘-21” 14“-20“ 14”-23” 17“-21“
Employees 2,633 418
Strengths Labor cost efficiency combined with automated
and flexible robot cells for machining
Tax shield due to location in special economic
zone
New planned plant: most advanced
manufacturing facility with latest technology
The already world's largest contiguous
production site for light-alloy wheels has been
extended by another approx. 2 million wheels.
Highly skilled for
large wheels and
complex surfaces
Innovation:
closeness to
R&D used to
introduce and
optimize new
production
technologies
UPG UPP
HQ,
logistic
center
Werdohl
Bad Durkheim
Stalowa Wola
Plants and distribution companies
Source of the wheels sold (mn pieces)
Plant 4 Capex and Capacity Schedule 2015 2016 2017 2018
Incremental capacity Plant 4 [wheels m
/year]0.5 0.7+0.8
Estimated total capacity Plant 4 [wheels m
/year]0.0 0.5 2.0 2.0
Estimated total capacity group [wheels m
/year]7.2-8.0 7.7-8.5 9.2-10.0 9.2-10.0
Capacity vs. 2015 production of 7.8m
wheels [%]+10.3% +25.6% +25.6%
Σ 8,76
2424
New plant is online with second phase
02 THE BUSINESS
Incremental capacity [wheels m /year]
• One year earlier than promised at IPO, the
second and final phase of UPP 3.
• It is the 3rd plant in Stalowa Wola, and the 4th
plant in the group.
• The already world's largest contiguous
production site for light-alloy wheels is now
extended by another approx. 2 million
wheels.
Update
Stalowa Wola, Poland
5 melting furnances
24 casting machines
3 x-ray facilities
2 heat treatment facilities
11 robot cells for machining
12 deburring plants for finishing
Pad Printing
1 painting line of the latest technology
Land size: 36.774 m²
Buildings: 31.182 m²
201820172016
AUG 2016
1st Phase
1.2m wheels p.a
2018
2nd Phase
2.0m wheels p.a
Phase 2 of UPP 3 brought forward by 1 year
2016 2017 2018 Total
0.5 0.7+0.8 0.0 2.0
UNIWHEELS GROUP INVESTOR PRESENTATION
2525
Successful stock listing at WSE since May 2015
02 THE BUSINESS
• Substantial over-subscription at the issue price of PLN 105
• Almost all investors seen during roadshow subscribed
• Balanced allotment to OFEs, TFIs, international funds and private investors
• Being public means professionalization and an organization ready for further growth.
• sWIG 80 inclusion in September 2015, mWIG40 ascension in March 2016
• Several awards regarding IPO, Reporting and Being Public
61.3%
38.7%
31.5%
39.5%23.6%
5.0%
0.3%
UNIWHEELS GROUP INVESTOR PRESENTATION
Current shareholder structure Free Float as of allotment on April 29th 2015
26
FY 2016 UPDATE
UNIWHEELS Group Investor Presentation
03
2727
Highlights FY 2016: fourth record year in a row
03 FY 2016 UPDATE
Sales
EBITDA
Margins
Another
Success
Year
Outlook
FY 2017
Strong volume growth 2016: +12.0% to 8.8 million wheels. New capacity contributes
fully now. Demand growth from OEM and AM customers.
Revenues up by 6.3 %: higher value added and aluminium price adjustments.
Strong aluminium impact in Q2 balances out:
EBITDA margin improves to 15.1% from 13.4% in FY 2015.
EBIT margin improves to 11.2% from 10.1 % in FY 2015.
Construction of new plant in Poland accelerated, completion ahead of schedule.
Record levels in terms of sales volumes, revenues and earnings and guidance
exceeded. Low leverage of 0.6x despite capex programme. Strategy 2022 established.
Dividend proposal raised to EUR 2.00 (+21.2%) per share, a yield of over 4 %.
Disproportionately high earnings growth despite ramp-up costs for new plant UPP 3.
Drop in material costs by 2.4%.
EBITDA grows by 19.6% to EUR 70.2 million in 2016.
Sales volume growth of 10-15%.
Revenue growth of 14-19%.
EBITDA growth of 15-20%.
UNIWHEELS GROUP INVESTOR PRESENTATION
2828
Automotive: demand growth and enhanced customer base
03 FY 2016 UPDATE
Automotive wheels sold [million]
+12.1%
7.186.41
Automotive revenues [EUR m]
+5.9%
371.5350.8
Comment
Ongoing demand growth from European
OEM customers.
Availability of additional capacity in new
plant and operational performance
increases.
Enhancement and diversification of
premium-focused OEM customer base.
Automotive wheel sales grow by 12.1%.
Value-added sales increased by bigger
diameters (higher share of >19’ wheels)
and more complex wheels.
Sales growth influenced by lower
aluminium price components: revenue
growth of +5.9%.
UNIWHEELS GROUP INVESTOR PRESENTATION
2929
Automotive revenue bridge: higher value added
03 FY 2016 UPDATE
Automotive revenue bridge [EUR m] Comment
Value –Added
219.3Value –Added
192.3
Aluminium
Surcharges
158.5
Aluminium
Surcharges
152.2
Aluminium Surcharges: price
component that is quarterly
adjusted with OEM customers
based on previous LME
development.
Aluminium Surcharges decreased
by EUR 6.3m based on lower LME
in full 2016.
Value Added: component of wheel
price that is fixed at nomination,
depending on product mix (size,
lightweight, complex surface).
Product mix lead to a positive Value
added effect of EUR 3.8m.
Value-added revenues increased by
14.0%.
350.8
23.23.8
6.3
371.5
UNIWHEELS GROUP INVESTOR PRESENTATION
3030
Accessory: exports as strong growth contributor
03 FY 2016 UPDATE
Accesory revenues [EUR m]
+6.3%
84.879.8
Accessory wheels sold [million]
+11.7%
1.581.42
Comment
Continuation of successful sales
activities in a challenging market,
expansion of export markets
New products and applications
successfully placed.
Accessory wheel sales up by 11.7%.
Sales increase for all brands, especially
in premium segment.
Accessory revenues grow by 6.3%.
Decision of EU Commission to retain
Anti-dumping duty by five years.
UNIWHEELS GROUP INVESTOR PRESENTATION
3131
Group P&L: new plant, aluminium price adjustments and
margins improvement
13. April 2017
03 FY 2016 UPDATE
Key margins FY 2016 FY 2015 Change pp
EBITDA margin 15.1% 13.4% +1.7
EBIT margin 11.2% 10.1% +1.1
Consolidated P&L of UNIWHEELS Group Comment
in EUR mFY 2016 FY 2015 %Change Q4 2016 Q4 2015 %Change
Revenue 464.1 436.5 +6.3 129.2 116.3 11.1
Changes in inventories and work
in progress -4.3 1.4 -6.6 -6.2
Own work capitalized 1.3 0.6 0.8 0.1
Total operating performance 461.1 438.5 +5.2 123.4 110.2 +12.0
Other operating income 3.9 4.6 2.1 1.3
Cost of material 256.0 262.4 -2.4 67.9 62.8 +8.1
Personnel expenses 76.0 66.0 +15.2 20.9 17.3 +20.8
Other operating expenses 62.8 56.0 +12.1 18.0 14.3 +25.9
EBITDA 70.2 58.7 +19.6 18.7 17.1 +9.4
Depreciation, amortization and
impairments 18.1 14.8 +22.3 5.9 3.8 +55.3
EBIT 52.1 43.9 +18.7 12.8 13.3 -3.8
Interest income 0.2 0.5 0.0 0.0
Interest expense 3.1 4.4 -29.5 1.0 0.7 42.9
Other finance revenue/costs 1.3 0.7 -0.7 0.0
Profit or loss before tax 50.5 40.7 +24.1 11.1 12.6 -11.9
Income taxes -13.6 0.0 -10.2 0.2
Net profit or loss 64.1 40.7 +57.5 21.3 12.8 +66.4
Revenues increased by 6.3%, influenced by:
Wheels sales increase of 12.0%
Product mix with higher value added
Aluminium price adjustments
Material Costs drop by -2.4%, reflecting lowerLME alumium prices
Personnel costs impacted by recruitments for newplant, ramp-up costs and wage increases:+15.2%
EBITDA increased by 19.6% to EUR 70.2m.
Depreciation up by 22.3 % due to PPE in newplant.
EBIT up by 18.7% to EUR 52.1m.
Net profit +57.5%: includes income fromcapitalized deferred taxes
EBITDA and EBIT margins improved
UNIWHEELS GROUP INVESTOR PRESENTATION
3232
P&L: material costs impacted by LME, personnel expenses by
recruitments for new plant
03 FY 2016 UPDATE
Personnel expenses [EUR m]
Cost of material [EUR m]
Cost of material is influenced by lower LMEaluminium prices in total in 2016, but also prizeincreases in H1; ratio drops to 55.2%.
LME (in EUR) downward trend since 2nd half of2015 has ended. Price increases started inautumn.
Personnel expenses (+15.2%) are impacted bystaff recruitment for new plant, ramp-up costs(mainly costs for new and still unproductive staff)and wage increases in Stalowa Wola.Recruitments also in Werdohl plant (productionoutput increases). Group employees in 2016 at2.918. Personnel cost ratio at 16.4%.
Other operating expenses (+12.1%): IPO costs in2015, higher repair and maintenance, sellingexpenses, losses from the disposal of assets, andR&D costs.
Interest expenses (-30%). Reduced interestpremium for syn loan from 2.2 % to 0.95%, butalso by IKB loan drawn in Q4.
Comment
+15.2%
-2.4%
UNIWHEELS GROUP INVESTOR PRESENTATION
3333
P&L: earnings and margins at record levels,
dividend raised to EUR 2.00 per share
03 FY 2016 UPDATE
Net Profit [EUR m]
EBITDA increased by 19.6% to EUR 70.2m
EBIT grows by 18.7% to EUR 52.1m
EBITDA margin improved to 15.1%, despite
ramp-up costs, wage increases and upward
LME trend.
EBIT margin up to 11.2%.
Net Profit amounts EUR 64.1m, and strongly
benefits from a non-cash income from
capitalised deferred taxes (€15.0m).
Dividend proposal increased to EUR 2.00 per
share from EUR 1.65 for 2015, payout ratio
based on net profit w/o non-cash components.
Dividend yield at over 4%.
Comment
+57.5%
EBITDA [EUR m]
+19.6%
UNIWHEELS GROUP INVESTOR PRESENTATION
3434
Solid financing structure – stable net debt and equity ratio
despite peak in capex programme
03 FY 2016 UPDATE
Equity ratio [%]
Scheduled repayment of term note of
syndicated loan (EUR 5.5m).
New loan agreement (IKB) amounting €20m,
with a fixed interest rate of 1.0% due in 2024,
has been fully drawn in October.
Net debt at EUR 42.5m (Sep 30: EUR 60.1m).
Net debt/EBITDA at 0.6x.
Equity ratio: 62.3% - equity mainly influenced
by net profit.
Reasonable leverage <2.0x targeted for long-
term expansion.
Comment
+0.7 PP
Net debt [EUR m]
+302%
UNIWHEELS GROUP INVESTOR PRESENTATION
3535
Outlook FY 2017: full new capacity and economies of scale
03 FY 2016 UPDATE
The group targets for 2017 an increase in wheel sales of between 10%
and 15%.
Group revenues are forcasted to grow between 14% and 19%, taking the
aluminium price development into account.
2017 is expected to face an ongoing demand growth from European
OEMs. We assume an average LME aluminium price of EUR 1.580 for
2017. Together with the availability of the full capacity of UPP 3,
economies of scale should be achieved.
Wheel sales increase
by 10-15%
Revenue growth
by 14-19%
We expect:
Ramp-up costs to be concluded in 2016 and economies of scale at new
plant: we expect an EBITDA growth of 15% to 20%.
EBITDA growth of
15-20%
UNIWHEELS GROUP INVESTOR PRESENTATION
36
FINANCIALS 12-16
UNIWHEELS Group Investor Presentation
04
3737
Key financial indicators 2012-2016
04 FINANCIALS 12-16
Cost ratios Earnings and Margins
Financial Position Return on Capital Employed
ROCE (Return on Capital Employed) = EBIT / (Equity + Long-term Liabilites – Cash)
UNIWHEELS GROUP INVESTOR PRESENTATION
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Key Financials 2012-2016
04 FINANCIALS 12-16
UNIWHEELS GROUP INVESTOR PRESENTATION
3939
P/L 2012-2016: growing revenue and margins improvement
UNIWHEELS GROUP Q1 2015 RESULTS
04 FINANCIALS 12-16
Consolidated P&L of UNIWHEELS Group
2012 2013 2014 2015 2016
in EUR m Actual Actual Actual Actual Actual
Revenue 318.0 337.2 362.6 436.5 464.1
Changes in inventories and work in progress -3.6 1.8 7.7 1.5 -4.3
Own work capitalized 0.4 0.5 0.6 0.6 1.3
Total operating performance 314.8 339.4 370.8 438.5 461.1
Cost of material 203.4 211.1 219.7 262.4 256.0
Gross profit 111.4 128.3 151.1 176.1 256.0
Other operating income 13.1 4.9 3.5 4.6 3.9
Personnel expenses 57.1 54.2 57.6 66.0 76.0
Other expenses 44.4 40.7 51.2 56.0 62.8
EBITDA 23.0 38.3 45.9 58.7 70.2
Depreciation, amortization and impairments 12.9 14.7 14.2 14.8 18.1
EBIT 10.1 23.6 31.7 43.9 52.1
Interest income 0.9 0.3 0.6 0.5 0.2
Interest expense 12.4 10.8 10.7 4.4 3.1
Other finance revenue/costs 9.4 -3.4 0.8 0.7 1.3
Profit or loss before tax 8.1 9.7 22.3 40.7 50.5
Income taxes -4.9 -3.6 -0.5 0.0 -13.6
Net profit or loss 13.0 13.2 22.8 40.7 64.1
EBITDA margin = EBITDA/Revenues, EBIT margin = EBIT/Revenues
Key margins 2012 2013 2014 2015 2016
EBITDA margin 7.3% 11.3% 12.6% 13.4% 15.1%
EBIT margin 3.2% 6.9% 9.0% 10.4% 11.2%
UNIWHEELS GROUP INVESTOR PRESENTATION
40
THANK YOU FOR
YOUR ATTENTIONIR Contact:
Oliver Madsen
Head of Investor Relations
+49 (0) 63 22 / 9899 – 6209
41
APPENDIX
UNIWHEELS Group Investor Presentation
05
4242
Consolidated statement of cash flows
05 APPENDIX
UNIWHEELS GROUP INVESTOR PRESENTATION
4343
Key Financial Figures FY 2016
05 APPENDIX
UNIWHEELS GROUP INVESTOR PRESENTATION
4444
Key Financial Figures FY 2015
05 APPENDIX
UNIWHEELS GROUP INVESTOR PRESENTATION
4545
Risk management: raw materials, F/X, prices, interest
05 APPENDIX
Hedging Instruments
Hedging Transaction on Aluminium
Price adjustments clause:
Contracts with car manufacturers for quarterly price indexation
Currency Hedging: US Dollar and Polish Zloty
IRS Hedging (Syndicated loan)
To ensure that changing aluminium prices do not impact Group’s margin,
contracts with car manufacturers provide for quarterly price indexation.
There are also certain arrangements with the OEMs that allow to
decrease impact of the cost volatility.
Furthermore, the Group enters into swap agreements with banks to hedge
itself against the risk of fluctuating aluminium costs.
The Group has chosen the Euro as its functional currency, also for UPP
Costs for the salaries of its employees, energy costs and transport costs
are however incurred in Polish Zloty. Raw materials are paid in Euro. The
Group is exposed to exchange rate fluctuations between the Euro and the
USD on the one side and Polish Zloty on the other side. These
fluctuations are hedged by forward hedging contracts to mitigate the risks
involved
F/X: 2017: fully hedged, 2018: about 20% hedged, both years at a
favourable currency rate
The Group uses Interest swaps to minimize the risk of rising interest
rates. In an interest swap the Group exchanges fixed and floating interest
payments that were calculated on the basis of agreed nominal amounts.
Main Hedging Instruments Comments
UNIWHEELS GROUP INVESTOR PRESENTATION
4646
Analyst Coverage, Estimates and Recommendations
UNIWHEELS GROUP INVESTOR PRESENTATION
Institution Analyst DateEBITDA
FY2017 e
Target
PriceRecommendation
BZ WBK Brokerage Michał Sopiel February 6, 2017 € 85.7 m PLN 259.00 BUY
mBank Dom Maklerski Jakub Szkopek October 19, 2016 € 89.1m PLN 258.00 ACCUMULATE
Pekao Tomasz KucinskiDecember 19,
2016€ 88.4m PLN 249,30 BUY
Trigon Łukasz RudnikNovember 29,
2016€ 83.1 m PLN 249.00 BUY
Wood & Company Maciej Wardejn August 12, 2016 € 80.0 m PLN 211.50 BUY
Consensus - - € 85.3 m - -
05 APPENDIX
4747
Financial Calender 2017 & Contact
05 APPENDIX
UNIWHEELS GROUP INVESTOR PRESENTATION