mbb industries ag // presentation annual meeting 2010 · 6/30/2010 · contitech formpolster gmbh...

Berlin | June 30, 2010

Annual Meeting

MBB Industries AG | Berlin

AGENDA

Overview

■

■

■

■

Business Development

Share Price Development

■

Outlook

Financials

MBB – 30% yield with medium-sized industrial holding s

OVERVIEW

■ MBB purchases and develops medium-sized industrial companies since 1995

■ MBB stands for Messerschmitt-Bölkow-Blohm

■ MBB is independent and continues to invest in difficult economic environment

■ The founding shareholders hold 71% of the share capital and form the managing board

■ On average, yield on invested capital for 1995-2009 is greater than 30% per year

■ Six holdings with a strong market position and revenues of €120m

■ With a capital ratio of 55% and net cash of €12m

■ Since 2006 MBB is listed on the stock market with a current market capitalisation in the prime standard of €53m

■ Resources for acquisition of €30m plus unused credit lines

MBB continue to generate stable results in 2009 and 2010ÜBERBLICK

2009

■ Sale of Reimelt Henschel Holding in June 2009

■ Group revenues declines to €116.6m, due to the sale and economic crisis

■ MBB Industries AG (Holding) with a record result of €18.7m

■ Hanke invests more than €5m

■ Delignit forfeits approx. 40% of revenues compared to the previous year

■ MBB review appr. 100 acquisitions, perform 6 audits and …

2010

■ …acquire CT Formpolster GmbH from Continental with effect of January 1, 2010

■ Revenues Q1/2010 declines on €29.8m; eps double to 13 Cent compared to Q1/2009

■ Share price of MBB rise by 34% in 2010

■ Dividends double to 50 Cent per share; dividend yield by more than 6%

■ Dr. Philipp Schmiedel-Blumenthal left the managing board with effect from July 1, 2010

■ Forecast 2010: €120m with a result slightly above previous year

AGENDA

Overview

■

■

■

■



■

Outlook

Financials

MBB is a preferred investor in medium-sized industr ial companiesMBB INVESTOR PROFILE

■ Structures, experience and methods typical of the German “Mittelstand”

■ Owner managed and therefore independent of funds and banks

■ Company purchases effected with own funds

■ Entrepreneurial management rather than financial investment

■ Value-driven business development instead of fast exits

■ Responsible treatment of facilities and employees

■ An experienced transaction team that functions without substantial influenced from external advisers

■ Speed and efficiency during the due diligence process

■ Expertise covers a variety of sectors; positive track record from 15-year company history

■ Constant availability of decision makers; minimal hierarchy leads to rapid decision making

■ International experience with sites in Eastern Europe, Asia as well as North and South America

MBB stands for… As a potential buyer, we offer…

MBB selection criteria

We are actively searching for medium-sized industri al companies ...MBB MARKET SEGMENT

abov

e €

500m

abov

e €5

00m

abov

e €1

0m

Turnover per company

Growth, exceptional situations,

etc.

Medium-sized industrial companies with positive

earnings history

MBB Industries AG

Large private equity funds

Medium private equity funds

and holdings

Medium-sized companies, small holdings, others

* According to German Federal Bureau of Statistics, approx. 60,000 companies in Germany

■ Value growth:Goal Ø IRR > 30%

■ Profit potential: EBITDA > 10%

■ Niche market player Turnover > €10m

■ Majority holding > 75%

.. to be supported and challenged by MBB

MANAGEMENT OF HOLDINGS

� Realisation of optimisationpotential

� Improving the structure of financing

� Implementation of strategic value enhancement concept

Peo

ple

Mea

sure

s

� Members of the managing board of MBB send to the board of directors

� MBB manager acting as mentor for the portfolio company

� Management of the portfolio company in individual cases with capital shares

� Implement value growth

� Organic growth

� Stimulate growth through buy & build

� Create strong competitive position

� Use synergies with existing holdings

Project team Operational management

� MBB Managing Board

� MBB Corporate Finance

Investment controlling

� Business controlling (BUC):Monthly budget check and forecast

� Project controlling (PUC):Monitoring of the implementation of measures

■

■

� MBB Team

� Normally plus external

resources

� Daily Controlling (DAC):Daily reporting of vital business data

� Management reports (RAP):Half-yearly presentation for the MBB-Team

Delignit - gross margin is lower as planned

DELIGNIT STATUS QUO

Gross marginIncreased prices

for raw materials in Romania

Shift of projects with high

marginson the customer side

Intenseprice competition

on commodity-markets

Higher energy demand due to the strong

winter

reduces

reduces

reduces

reduces

■ Performance on target

■ Negative results

Status YTD

MBB focuses on sustainable development –DTS Systeme “taking the leap into the IT-Euro-League ”DTS SYSTEME INVESTING IN PEOPLE AND TECHNOLOGY

2009

■ Investment of €3.5m in logistics centre

■ High bay warehouse for 2,800 pallets

■ Investment of €1.5m in paper machine

2010

■ Investment of €1.0m in Printed-Napkin-Line

■ New energy supply

■ Investment of €0.6m in Unicolor-Line

Measures

MBB companies invest strategically –even in difficult timesHANKE INVESTMENTS 2009/2010

CT FORMPOLSTER; FACTS & FIGURES

CT Formpolster as extension of OBO-activities – a regional market leader with a constant business

Facts Figures

ContiTech Formpolster GmbH is a former subsidiary of the Continental AG; the business of CT Formpolster is no longer a core activity of the Continental group. CT Formpolster produces polyether foams with a variety of technical attributes. Its customers are based in the automotive industry, furniture industry and caravan industry. The focus is on producing mattress.

■ Acquisition with effect from January 1, 2010

■ MBB-shares 100%

■ 90 Employees

■ Property in Löhne and rented sites in Worms and Mülheim

■ Managing director, age 44, bear responsibility for 10 years

■ Revenues 2009 approx. €23.9m

■ Pension provisions €3.4m

■ No liabilities to banks

■ Consideration transferred by MBB approx. €0.35m

■ Target 2010 Revenues €25m

■

Positive trend of revenues and result in 2010

Delignit

OVERVIEW OF PORTFOLIO COMPANIES

■ Sustainable industrial material

■ Dependent on automotive industry

■ Increase in efficiency is necessary

■ Hanke

■ Everyday requisite tissue -products

■ Market leader in Poland and Ukraine

■ Cost leader in Eastern Europe

■ Huchtemeier■ Paper-trading

■ Price attractive product range

■ OBO■ Dependent on automotive indistry

■ Dependent on US$ and British £

■ DTS

■ TÜV-certified data-center

■ Specialised on cloud-computing

■ Dependent on people and investments

24.3

17.1

15.0

6.2

19.8

Company Revenue 09 Details

Development 2010e

Revenue Result

■ CT Formpolster

■ Dependent on raw material prices

■ Capacity reserves

■ Optimization and synergy OBO23.9

AGENDA

Overview

■

■

■

■



■

Outlook

Financials

2007(IFRS)

2008(IFRS)

113,64880.6 %

21,26218.7 %

14,36812.6 %

12,81811.3 %

13,629

2.07218.5 %

199,34675.4 %

19,5449.8 %

14,4427.2 %

11,7935.9 %

8,029

1.22-41.1 %

2005(HGB)

2006(IFRS)

MBB for the first time without growth since IPO, bu t …COMPARISON FROM 2005 TO 2009 IN €k

*

Revenues 36,858 62,915Variation 24.3 % 70.7 %

EBITDA 6,074 10,623EBITDA margin 16.5 % 16.9 %

EBIT 3,835 7,089EBIT margin 10.4 % 11.3 %

EBT 2,387 5,725EBT margin 6.5 % 9.1 %

Net profit for the year 1,749 4,258

EPS 0.27 0.65Variation 140.7 %

2009(IFRS)

116,581-41.5 %

9,9688.6 %

5,4094.6 %

3,8643.3 %

3,546

0.54-55.8 %

… accompanied by a rise in capital ratio and liquid funds ...

COMPARISON OF GROUP RESULTS FROM 2007 TO 2009 IN €k

31.12.2008

25,085

-981

38.8%

54,265

139,885

31.12.2007

26,946

787

38.3%

50,501

131,918

Liquid funds

Net financial assets

Capital ratio

Equity

Total assets

31.12.2009

35,314

10,725

54.5%

55,586

101,939

Change2008 to 2009

- 27.1%

+ 2.4%

+ 40.5%

+ 40.8%

.. Cash was repatriated in 2009.DEVELOPMENT OF LIQUID FUNDS OF MBB GROUP IN €m

Development of liquid funds from 2006 to 2009 Development Net Cash 2009

14.0

12.99.2

14.5

10.6

3.0

32.3

1.310.5∑

26.9∑

25.1∑

35.3∑Portfolio

Holding

2006 2007 2008 2009 Holding Portfolio Group

-16.7

+27.4

10.7

MBB 2

Huchtemeier15

MBB4

DTS 82

Hanke232

OBO38

Delignit751

Number of employees decreases due to the sale of Re imeltHenschel and adjustment of capacity by Delignit, Han ke hires staffSTATUS AND DEVELOPMENT OF EMPLOYEES IN 2009

-150

Del

igni

t

Changes 2008 to 2009Balance sheet date

Allocation by subgroups

EmployeesBalance sheet date

Dev

elop

men

tS

tatu

s

Huc

htem

eier

0

Poland232

Romania561

Germany329

Allocation by region

MB

B

+1

2008

1,243

584 Reimelt Henschel

2009

1,122 +28H

anke

OB

O

-3

DT

S

+3-121

1.827∑

2007 2008 2009 2006

MBB doubles dividendsMBB INDUSTRIES AG IN €k 2006 to 2009 HGB

2,417

2,114

32,190

25,688

79.8 %

6,186

10,599

1,650

0.25

23,769

18,654

48,583

42,692

88.0 %

3,873

32,270

3,300

0.50

Operating Output 2,013 2,361

Profit for the year 1,218 2,072

Total assets 26,037 31,876

Equity 23,812 25,224

Capital ratio 91.5 % 79.1 %

Bank debts 0 5,228

Liquidity 9,228 12,850

Dividend 660 1,650

in € per share 0.10 0.25

AGENDA

Overview

■

■

■

■



■

Outlook

Financials

More than 34% rise in share price since beginning of year 2010 – Stock analysts recommend „buy“ and expect a share price of €11SHARE PRICE DEVELOPMENT (01.01.2010 – 28.06.2010) AND MEASURES

■ No own shares purchased by MBB Industries AG since stock market listing in 2006

■ Current market capitalisation €52.8m

■ Dividend yield 2009: 6.3%

■ Management holds approx. 75% of MBB's 6,600,000 shares

■ Since 1.1.2010 part of DAXplus-Family-Index

■ Analyst Study by Close Brothers Seydlerfrom Mai 2010 recommends Buy and expects 11.00 Euro

Points of interest MBB stockShare price development since 01.01.2010

+ 9.6%MDAX

+ 34.2%MBB Industries

+ 3.0%PXAP

+ 3.0%GEX

+ 12.2%SDAX

AGENDA

Overview

■

■

■

■



■

Outlook

Financials

Comparision2009 to 2010

Q12009

Q12010

Q12008

Revenues decrease in Q1/2010, but profit has double d compared to the previous year COMPARISON FIRST QUARTER 2008 TILL 2010 IN THOUSAND EUROS

EPS

Profit

EBT margin

EBT

EBIT margin

EBIT

EBITDA margin

EBITDA

Operating Output

Revenue

0.19

1,222

4.3%

1907

5.3%

2,379

8.7%

3,900

45,246

44,754

0.13

843

2.1%

612

3.1%

935

6.8%

2,038

31,118

29,757

0.06

397

1.5%

638

2.6%

1,094

5.5%

2,313

46,411

42,290

- 15%

- 4%

- 12%

- 30%

+ 112%

- 33%

■ Are we at the beginning of a new boom as in 2004?

■ And if so, how long will it take?

IFO trade cycle till June 2010

Ifo-Index creates hope – we stay cautious and keep a n eye on fundamental dataIFO Trade Cycle

■ Management has years of successful commercial team experience

■ Profitable and proven business model

■ Diversified niche market player portfolio with value growth potential

■ Solid financial situation and available cash

■ Economic situation created very strong increase in attractive purchasing opportunities

Strengths and Opportunities

Revenues of €300m and eps €3 by AcquisitionsMBB OUTLOOK AND STRENGTHS

Revenue in €m EPS in Euro for 6.6m shares

2009

MBB Forecast

2005

Actual

2006

Actual

2007

Actual

2008

Actual

37

0.27

114

2.070.65

63

199

1.22

117

300

3.00��

2012

Target

2010e

120

0.54

Actual

>0.54

FINANCIAL CALENDAR

■ Annual Meeting 2010 June 30, 2010

■ Half Year Financial Report 2010 August 31, 2010

■ Analysts Conference, EK-Forum November 22 - 24, 2010(MBB: 22.11 / 15:00 / Room Madrid)

■ Quarterly Financial Report Q3/2010 November 21, 2010

CONTAKT

Anne-Katrin AltmannMBB Industries AGJoachimstaler Straße 34D-10719 BerlinTel: 030-844 15 330Fax: 030-844 15 333Mail: [email protected]: www.mbbindustries.com

■ MBB

DISCLAIMER

■ The information contained in this presentation does not constitute an offer to sell or a solicitation to render an offer to buy or subscribe to sharesin MBB Industries AG. The statements contained herein are purely for the purpose of information.

German Law

The following information is intended exclusively for persons whose place of residence or place of business is in Germany. Access to the following information is only granted to such interested parties. The publication of this information in the Internet does not constitute an offer to persons whose place of residence or business is in another country, in particular, the United States of America, the United Kingdom of Great Britain and Northern Ireland, Canada, or Japan. Shares in MBB Industries AG are offered for sale or subscription exclusively in the Federal Republic of Germany.

The following information may only be distributed within other legal frameworks such that they comply with legal regulations in force therein; persons gaining possession of this information are required to familiarise themselves with the legal regulations in force there and to comply with them. All information is given without engagement.No Recommendation to Invest

The following information does not constitute a recommendation to invest. Future Forecasts

Any forecasts, appraisals, opinions or expectations expressed in the following information or any future predictions made therein may be linkedto known and unknown risks and uncertainties. Actual performance and developments may therefore deviate considerably from the expectations and suppositions expressed.Risk Investment

Shares in growth companies can display both great opportunities and, inevitably, associated risks. Shares in growth companies should thereforebe viewed in principle as a risk investment. It is not possible to exclude the loss of the investment. In general, this form of investment istherefore rather recommended for the purpose of diversification within a portfolio strategy.Confidentiality

The information contained in this presentation is strictly confidential. It is only intended for the persons to which the information is addressedand may not be disseminated without the prior permission of MBB Industries AG. In the event of any questions, please contact:

MBB Industries AGJoachimstaler Straße 34D-10719 BerlinWeb: www.mbbindustries.comTel: 030-844 15 330Fax: 030-844 15 333E-mail: [email protected]

mbb industries ag // presentation annual meeting 2010 · 6/30/2010 · contitech formpolster gmbh...

Documents