company presentation – full year 2014 - sol group · 2015. 9. 28. · company presentation –...
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Company presentation – Full year 2014
SOL Group at a glance• Founded in 1927, is an Italian based multinational company present in 26 countries with more of 3,000 people
employed.
• Two core , separated but integrated and synergic business ar eas: Technical Gas sector (production, applied
research and marketing of pure, medical and industr ial gases) and Home-Care service sector (supply of
medical products and medical assistance services as well as equipment for home care therapy).
• Two recent businesses: Hydro Energy and Biotechnology .• Two recent businesses: Hydro Energy and Biotechnology .
• Strong results and sound balance sheet:
• Over 636 millions € of Total Group revenues in FY2014 (+6,9% FY2013);
• Over 50% of international revenues in 2014 (vs 23,7% in 2000 )
• 7,1% sales CAGR in the last 10 years;
• 22,5% of EBITDA margin in 2014;
• 0,504 of Debt/Equity ratio;
• Dividend policy: 30% average dividend pay out ratio over the last 10 yea rs.
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SOL Group – Geographic Presence
SOL Group is presentin 26 countries
3
The Technical Gases Business
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A complete range of industrial gas (both atmospheric and non-atmospheric):medicinal, pure and special gases.
The Technical Gases Business
� Oxygen� Nitrogen� Argon� Hydrogen� Carbon dioxide� Acetylene
Production and distribution of Gases
SOL Group operates in the technical gases business througho ut the brand SOL
� Ultra high purity gases
� Medical gases� Gaseous
helium� Liquid helium
� Electronics gases
� Ammonia� Combustible
gases
Research, design, and construction of:• Industrial gas production facilities,• Plant and equipment for gas utilization• Services and consultancy
Acetylene� Nitrous oxide� Gas mixtures
� Equipment for medical applications� Equipment for cryogenic applications� Deep freezing tunnels� Oxygen burners� Ozonisers
Supply of plants, equipments, services and consulta ncy
Liquid helium� Refrigerating
gases
� Medical air plants� On-site plants� Welding machines
and equipment
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Technical Gases BusinessTechnical gases business (M€)
FY2014 FY2013 YoY
Sales 352 342 + 2,9%
EBITDA 70 70 - 0,1%
EBITDA % 20,0% 20,6% - 0,6%
Investments 53 57 - 7,0%
In 2014 the industrial gases division
SOL Group 2014 Total revenues
Technical Gases51%
240,5252,8
282,5296,3
313,5
341,8351,7
340,6 344,9
296,3
325,1
160
210
260
310
360
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mil
lions E
uro
• In 2014 the industrial gases division
sales were stable, maintaining the
EBITDA margin around 20% .
• In 2014 the division invested over the
15% of its revenues.
• 3,9% sales CAGR over the last 10 ys.
10 years Sales in Technical Gases 2004 - 2014
6
Market characteristics
• Resilient and growing market
• Margin protected thanks to high
entry barriers
Technical Gases business
SOL
• High diversification of sales area :
• More than 50,000 clients served;
• More than 90 different
applications for technical gases
• Long term contracts with customers:
Gas pipeline: up to 15 years;• Limited economic cycle demand
dependence of each sales area
• Broad variety and diversification
of end-markets and applications
• Medium/long term contracts
• Local presence as a key factor
Resilience + Growth + Demand stability + Low risk l evel
• Gas pipeline: up to 15 years;
• Compressed gases: up to 5
years;
• Cryogenic liquid gases: up to 3
years
• Strong local presence :
• 24 countries, 38 primary
transformation plants, 55
secondary transformation plants.
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• The uses of specialty gases are expanding in many different context. The market need
for maximum accuracy finds its answer in the world of gases:
• Universities and research centers : highly purified gas carriers for gas
chromatography, calibration equipment and gaseous compounds used as
Technical Gases Business
Specialty and medicinal gases and services
chromatography, calibration equipment and gaseous compounds used as
precursors for chemical synthesis;
• Chemical and pharmaceutical carrier gases and calibration gases in many
activities related to process control;
• Hospitals: medicinal gases for pharmaceutical use, pure products and mixtures
for laboratory and analytical activities as a support to diagnostic processes,
cryomangement services;
• High-tech industry sectors (such as electronics, automotive and renewable
energies) where the use of gases is vital to the innovation of production
processes.
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Production SitesThe company
established a 50%
joint venture with an
important Indian
partner (that has 25%
of CO2 market share)
for the production and
distribution of
echnical gases.
• 39 primary production sites:
ASU Oxygen, Nitrogen, Argon,
Hydrogen, Carbon Dioxide,
Acetylene, Nitrous Oxyde:
units that produce gases from
row materials (electric energy,
atmospheric air, natural gas,
calcium carbide and
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calcium carbide and
ammonium nitrate).
• 54 secondary transformation
sites (filling station): units that
are dedicated to filling activity,
storage and distribution of gas
in general. Moreover they
produce ultra high purity
gases and gas mixtures.
Morocco
The Home Care Business
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The Home Care Business
• In the second half of the eighties, SOL seized a new market div ersification opportunity by
entering into the Home-Care service sector, synergical with the technical gas sector.
• The Group works through the VIVISOL Group, which supplies technologically advanced home
care services to patients for the treatment of chronic patho logies.
• VIVISOL manages the complete patient care from the delivery of medic al equipment and drugs,
performed by specialized home care professionals, to the pro vision of qualified medical and
nursing services, as well as tele-monitoring services and emergency management .nursing services, as well as tele-monitoring services and emergency management .
• The company operates in 10 leading
countries of the European Union and in
Turkey, with over 60 offices employing
over 1.400 employees and serving more
than 280.000 patients daily.
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0% 20% 40% 60% 80% 100%
2014
2000
1990
1980
51%
80%
98%
100%
49%
20%
2%
0%
Technical Gases Home care
Home Care Business
Home care respiratory assistance
Other home care assistance
Respiratory home-care services concern the home delivery t opatients of oxygen or enriched air and other services such asventilation, diagnosis of pulmonary pathologies and thera pyof respiratory disorders.
� Long term oxygen therapy
� Mechanical ventilation therapy
� Assistance to patients undergoing oxygen therapy during travels ( VIVITRAVEL)
� Diagnosis and treatment of sleep disorder conditions
Home care equipment
The other home-care services include telemedicine service s,artificial nutrition, integrated home-care service in therespiratory framework and in monitoring child respiratorydisorders.
VIVISOL markets also equipment intended for the diagnosisand therapy of the above-mentioned pathologies and itscustomers include hospitals, pharmacists, laboratories,clinics and doctors.
� Home and traveling oxygen therapy equipments
� Ventilation equipment
� Instruments and accessories for diagnosis and aerosol treatment
� Home aids
� Home care artificial nutrition
� Integrated home care services
� Remote monitoring and diagnosis of respiration conditions
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Home Care Business
Hone Care business
(M€)
FY2014 FY2013 YoY
Sales 313 281 + 11,2%
EBITDA 73 61 + 19,0%
EBITDA % 23,4% 21,9% + 1,5%
Investments 41 34 + 19,6%
SOL Group 2014 Total revenues
Home Care49 %
• VIVISOL was able to grow over
the 11% in 2014, with an
EBITDA margin higher than
23%.
• The Group is continuing to
invest significantly in this
business.88,9 102,3
121,9142,7
160,3
281,2312,8
238,8264,9
182,5213,4
0
50
100
150
200
250
300
350
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mil
lion
s Eu
ro
10 years Sales in Home Care 2004 - 2014
13
Home Care Business
Key growth drivers:
• Aging population – demographics
• Restructuring of Health Care Systems through
de-hospitalization and home care
• Developments in portable medical technologies
• Better quality of life for Patients at home
• Increasing of respiratory and chronic pathologies
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Home Care - VIVISOL branches
VIVISOL is present in 11
leading countries of the
European Union and
Turkey with over 60
branches.
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Turkey
Home Care Business
VIVISOL Belgium - Lessines
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The Hydro Energy Business
17 17
• Leveraging on its core business
development in the Eastern Europe , SOL
entered into the Hydro-Energy sector.
• The industrial gas sector, is one of the
most energy intensive one. This
characteristic supported the Group
decision to invest in the Hydro-Energy
The Hydro Energy Business
sector in order to enjoy synergies with its
Industrial Gases Business.
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• Currently the company owns and
operates 5 hydro-electric power plants in
Slovenia (about 50 Million KWh/year), 2
plants in Albania (about 25 Million
KWh/year); 4 plants in Macedonia (about
35 Million KWh/year).
The Biotechnology Business
19 19
• SOL Group is active in supplying biotechnological equipment
and services to hospitals, clinics and laboratories (cryobanks,
cellfactories, cryomanagement, cryotransportation)
• With BIOTECHSOL is active in the area of tissue and stem cells
banking and biological tissues transportation.
The Biotechnology Business
• With the acquisition of the majority of DIATHEVA, SOL Group is
active in drug discovery and drug delivery (recombinant
monoclonal antibodies), molecular diagnostic, GMP produc tion
of recombinant proteins
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350
400
450
500
550
600
650
SOL Group: 30 years Turnover (1984-2014)
2014=636,4
0
50
100
150
200
250
300
1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014
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1984 = 38,5
1994=117,6
2004=320,8
321,9346,0
393,6
427,1460,0 462,6
518,9
555,7583,0
595,4
636,4
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
Mil
lion
s Eu
ro
SOL Group: consolidated results (2004 – 2014)
Sales
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Cash Flow
54,2 56,3 60,9
75,787,6
81,792,6 97,0 98,5
92,4
106,2
16,8%16,3%
15,5%
17,7%
19,0%
17,8%
16,7%17,7% 17,5%
16,9%15,5%
0
20
40
60
80
100
120
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mil
lion
s Eu
ro
0%
5%
10%
15%
20%
% o
n s
ale
s
Cash Flow % on Sales
22
0,081 0,081
0,100
0,110
0,1000,1000,095
0,084
0,100
0,120
5,7%
5,2%
6,5%
7,8%
5,1%
5,8%
6,3%
5,6% 6%
7%
8%
10 years net profit and dividend growth
NET PROFIT DPS - Dividend Yield
0,066 0,067 0,068
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0,000
0,020
0,040
0,060
0,080
5,2%
4,5%
3,8%
4,8%5,1%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
1%
2%
3%
4%
5%
% o
n s
ale
s
Net profit CAGR + 5,3% DPS CAGR + 5,2%
10Y AVERAGE PAY-OUT RATIO 30%
23
International Expansion
SOL is focused on its international expansion:
• The Group started its operations in
Italy where it currently has 14
primary production sites.
10 years sales: 2004-2014 (+223,5 M€)
• In 2014 the Group is present in 25
countries.
• In 2014 the non-domestic sales
exceeded the Italian sales
• (51% / 49%).
24
(Excluded sales in India)
Capital Expenditures (2004-2014)
High annual investments
• The Group every year invest
about 15% of its revenues;
• The Sol business require a high
level of investments for long
16,6%
13,5%
16,2% 16,1%14,8%
15,4%14,7%
13,7%
17,6%
12,0%
15,2%
75
100
Mil
lion
s Eu
ro 15%
20%
25%
% o
n s
ale
s
10 years of investments on sales 2004-2014
level of investments for long
term growth options;
• In 2014 almost the 72% of the
Group investments was made
outside Italy.
53,460,9
53,3
69,274,3
63,4 62,1
84,7 85,491,8 94,5
12,0%
0
25
50
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Mil
lion
s Eu
ro
0%
5%
10% % o
n s
ale
s
Capex % on sales
25
Shareholding information and market price
Outstanding Shares
• 90.700.000 ordinary shares
• par value: 0,52
Shareholding Structure
• Fumagalli and Annoni
families 60%
• Institutional Investors
approx 20%
Source: Borsa Italiana
26
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