Passion for Light. Zumtobel Group Roadshow Presentation June 2013

Transcription

1 Passion for Light Zumtobel Group Roadshow Presentation June

2 A brief portrait of the Zumtobel Group The Zumtobel Group: a global player in the lighting industry A leading position in the European professional lighting market Brands: Thorn, Zumtobel, Tridonic Sales in over 100 countries, 20 production plants on four continents EUR 1,243.6 million in annual revenues 1) EUR 35.7 million in operating earnings (EBIT) 1) 7,162 employees 1) 1) FY 2012/13 2 2

3 Broad market access through multi-brand strategy The structure of the Zumtobel Group Revenues: EUR 1,243.6 million 1) Lighting Segment Components Segment 18% of revenues with Zumtobel & Thorn Revenues: EUR million 1) Revenues: EUR million 1) 1) FY 2012/13 3 3

4 Major position in European professional lighting market Zumtobel Group Regional revenue distribution Regional revenue distribution in FY 2012/13 Revenues: EUR 1,243.6 million Others 0.9% America 3.2% Australia & New Zealand 8.5% Asia 8.8% 7.8% Southern Europe 29.9% 27.4% 8.3% 5.2% D/A/CH Europe 78.6% (PY: 77.8%) Eastern Europe Northern Europe Western Europe 4 4

5 Our brands are differently positioned in the value chain From light source to lighting solution LED module Control gear Luminaires Lighting management Lighting solution Premium Segment Performance Segment Budget Segment 5 5

6 The value add moves downstream From light source to lighting solution LED module Control gear Luminaires Lighting management Lighting solution Upstream market Value add moves downstream / Expected integration Downstream market Increasing commoditization - LED changes the fundamental industry dynamics - New entrants/higher competition/price pressure - Change in addressable market (control gear AND light source) - Market access into fragmented luminaire market remains a key success factor Customer interface/ application know how is key - Application know-how - Lighting solution/systems competence (controls & systems) - Strong direct sales network - Technology position / innovation power - Brand positioning 6 6

7 Unique sales network as core strength of the company Lighting Segment Wholesalers Including Rexel, Edmundson End Customers E.g. Deutsche Telekom, BMW, municipalities Lighting Segment Architects Including Zaha Hadid, Daniel Libeskind, Matteo Thun & Partners Contractors Including Amec, Crown, House Engineering Lighting Designers Including, Licht Kunst Licht AG, a g Licht, ARUP 7 7

8 A brief portrait of Zumtobel Lighting Segment Zumtobel is an international premium brand for integral lighting solutions One of the largest players in professional lighting in Europe B2B Business model Strong premium brand position Cooperation with prominent architects, designers and artists One of the innovation leaders in the industry with leading edge solutions for conventional and LED lighting Strong emphasis on design and the emotional aspect of lighting Outstanding direct sales network Deep understanding of lighting applications focus on indoor and facade lighting applications 50 sales companies and representatives in over 70 countries 8 8

9 A brief portrait of Thorn Lighting Segment Thorn is an international brand with strong focus on dependable performance and smart solutions Founded in 1928 in the UK Acquired by Zumtobel Group in 2000/01 Comprehensive portfolio for indoor and outdoor lighting solutions in professional lighting Focus on technical customers who focus on quality and reliability Targets wholesalers as well as projects strong sales network Comprehensive application know-how in lighting No. 1 in UK, Hong Kong and New Zealand, No.2 in Scandinavia, France and Australia 9 9

10 A brief portrait of the Components Segment Components Segment Tridonic is a specialist in operating, controlling and managing light Manufacturer of conventional lighting components, lighting management systems, LED modules and LED converters Established strong market access into a highly fragmented customer base strong brand position Leading OEM supplier (over 80% of sales with customer outside the Zumtobel Group) Outstanding market position and major player in the conventional ballast business in Europe 30 sales representations worldwide and partners in more than 70 countries Broad product portfolio / high number of variants catered to the specific needs of luminaire makers (one-stop-shop opportunity for OEM clients) Strong IP position (own patent portfolio and cross-licensing) 10 10

11 Demand in professional lighting is backed by megatrends and technology Professional lighting market opportunities for growth Energy efficiency Lighting consumes 19% of the electricity worldwide Modern lighting solutions enable energy savings of up to 80% Energy efficiency is the central growth driver for Zumtobel Group LED LED is a disruptive technology in lighting with high growth rates Low energy consumption and long lifetime, new design features and opportunities of changing colours make LED highly attractive Controls & Systems The use of intelligent lighting control systems provide huge potential for energy savings Global market growth opportunities Trend to an increasing need for light (e.g. new applications) Growing worldwide awareness for energy savings and sustainability (e.g. global CO2 reduction targets, increasing prices for electricity) Strong structural potential in emerging markets 11 11

12 Up to 80% savings potential with modern professional lighting solutions Growth driver: Energy Efficiency LED module Control gear Luminaire Lighting management Lighting solution LEDs offer energy savings potential of: 30-50% compared to fluorescent 20-40% compared to HID Up to 85% compared to incandescent bulbs Electronic ballast/led converter technology is a prerequisite for intelligent lighting management systems. Strong optimisation potential for greater energy efficiency, for example: Glare-free optics Thermal management Luminaire design Application specific light distribution Savings vs. standard of up to 15% Light management energy savings potential: Daylight linking: 40-60% Presence detection: 15-30% Time management: 5-15% Maintenance control: 10-25% Professionally planned lighting concept combines various luminaires and light sources with an intelligent light management system to achieve an optimised lighting solution

13 LED lighting is gaining traction Growth driver: LED Zumtobel Group estimates that more than one-third of group revenues will be LED-based in 2014/15 Application know-how, electronic know-how and controls technology are the key success factors in LED lighting Zumtobel Group LED share as % of revenues 6.4% 7.2% 8.7% 10.3% 11.2% 13.4% 15.9% 17.0% 18.4% 21.4% 24.2% 24.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY 2010/11 FY 2011/12 FY 2012/

14 Comparison of conventional versus LED based luminaire Growth driver: LED Project example Offices and Communication MELLOW LIGHT V LED Total Costs (TCO) Framework Old 15 pcs. louvre luminaire 4 x 18W T26 Luminaires luminous flux: 3,472 lm Luminaire efficiency: 39 lm/w Framework New (w/o light management) 10 pcs. MLV LED luminaire 52W 5 pcs. LED Downlight Panos Infinity 23W Luminaires luminous flux: 3,900 lm Luminaire efficiency: 75 lm/w Period for calculation 20 years Basis CO2 Emission in kg Energy costs in EUR Maintenance costs in EUR Amortization: 2,3 years MLV 52W Office concept MLV 52W Office concept + light management Years Basis MLV MLV+LM Basis MLV MLV+LM Basis MLV MLV+LM 14 14

15 Light management systems and services as important growth driver for lighting industry Growth driver: Controls & Systems Strong growing market with low cyclicality (CAGR ~15%) Growth supported by increasing awareness for energy efficiency and regulatory framework regarding building efficiency (green building certifications) Zumtobel Group has an outstanding position as it combines lighting application know-how in lighting segment with controlling expertise in Components Segment Emergency controls market has huge growth potential Controls & Systems are the enabler for Service business Increasing opportunities for strategic after-sales services (maintenance, energy efficiency consulting, etc.) FY 2012/13 Controls & Systems Zumtobel Group revenues: 82.4m Lighting management systems Somebody there? Day or Night? Help! Value added services - Support & Maintenance Agreements - Light Performance Platform - Light Performance Audits - Light Performance Management Explore new business models - Combine Luminaire, System, Service - Light Performance Guaranties - Light Performance Contracting - Pay-Use-Models (Rental & Leasing) 15 15

16 Development of business in new growth markets Growth driver: New markets Market size forecast EUR bn 32 Defined Growth Markets Measures EUROPE NAFTA ASIA LATAM ME+A China incl. Hong Kong Southeast Asia India Middle East Russia + Eastern Europe North America Global matrix organisation Regionalized product portfolio but global pillar products Investment in brand communication Expansion of sales organization and increased local presence Source: McKinsey s 2012 Global Lighting Market Model, Zumtobel Group Market intelligence 16 16

17 The professional lighting market is expected to grow above 3% annually Global professional lighting market EUR bn x% 10% LED Penetration (excl. OLED) LED 28 Traditional technology OLED 32 40% 65% Source: McKinsey s 2012 Global Lighting Market Model, Zumtobel Group Market intelligence CAGR Ʃ 3,2% 3,6% 3,4% >100% 69% >100% 36% 17% 27% -5% -10% -7% Robust growth in total market until 2020 LED revenues expected to grow by around 30% annually OLED is expected to be new growth technology after 2018 Asia by far fastest growing region (CAGR ~5% 50% of global lighting market by 2020) Smaller market growth in Europe (CAGR ~2%) Digital technologies with additional functionality and business opportunities 17 17

18 Zumtobel Continuing the globalization strategy Brand strategy Global roll-out of European success model Key growth markets: USA, China and MENA Global pillar products for each application, including optimized supply chain Customers become more international Efficient global approach as an opportunity for differentiation Successful marketing as premium brand and direct sales channels approach will be further strengthened Selective add-on acquisitions possible to accelerate globalization and/or controls & systems competency Differentiation by package of competent advisory services, the right product, intelligent controls & systems and customer service offerings 18 18

19 Thorn Optimize operational performance Brand strategy Align cost structures with market demand in Europe and Australia Improve operational excellence Reduce complexity Divide product portfolio in global/ regional/ local with modular approach Leverage global matrix organization Expand and strengthen good market position in Asia Reduce SG&A and materials expenditures Alignment of product mix and sales channels 19 19

20 Tridonic Positioning as global supplier of intelligent lighting components Brand strategy Continuous cost reductions and capacity adjustments for electronic ballast (e.g. optimizing manufacturing footprint) Focus resources on LED components for general lighting Leverage excellent European market access and client relationships with strong growing LED and Controls business to compensate for decline in conventional ballasts Globalize production and sales approach participate in Asian growth Ensure broad product portfolio for LED components by strategic make or buy decisions 20 20

21 Zumtobel Group Focus on growth above the market Group strategy Zumtobel Group still pursues a long-term global growth strategy, but growth assumptions need to be aligned with macro-economic situation Zumtobel Group aims to gain market share in an expected European low growth environment and will establish a stronger presence in global growth markets Each brand follows a dedicated strategy and must contribute to group value Continuous EBIT margin improvement, target EBIT margin is >10% for the Group over the medium term Focus on organic growth funded by internally generated cash flows Dividend policy remains unchanged: distribute 30% to 50% of recurring net profit to shareholders 21 21

22 Passion for Light 22 22