Light Mobility Solutions - Capital Markets Day 2021 - Mutares
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Light Mobility
Solutions
Capital Markets Day 2021
Light Mobility Solutions
Asset deal / 3 plants in
Carve out Germany
10 m€ ~360 m€
Mutares revenues* NewCo
Deal overview Commitment
Facts and figures (~35) m€
Vendor EBITDA
~1750
~150 m€ employees
Closing Expected Bargain
July 2021 Purchase
FY 2019, non-consolidated LMS 3
All plants with negative EBITDA but competitive capabilities,
strong product portfolio and customer base
Status FY 2020
Obertshausen (inkl. MLC KK) Sulzbach Idar-Oberstein
Sales € 196.2m Sales € 71.1m Sales € 39.7m
% sales 64% % sales 23% % sales 13%
EBITDA € (19.2)m EBITDA € (9.2)m EBITDA € (6.3)m
HC / FTE 1055 HC / FTE 432 HC / FTE 222
• Light vehicle fascias • Rocker and side panels • Radiator grilles
Products
• Spoilers
Key
• Grilles • Chrome parts
• Other • Roof panels • Bumper parts
Customers
Key
• Injection moulding • Injection moulding • Assembly • Injection moulding
Capabilities
• Tool maintenance • Hot stamping
(23 IMM 1.2 - 4 kt) (9 IMM 0,32 – 4,0 kt) • JIS Sequencing (14 IMM 0,5 – 2kt.)
• Assembly chrome foil
Key
• Painting (2 shops) • Painting • Chrome plating plastics
• JIS Sequencing • Assembly
• Engineering • Foaming facility • Testing laboratory
LMS 4
Core technologies and capabilities that are in high demand in
the automotive industry and beyond
From design to delivery. All in one hand.
Engineering Testing Injection Molding Painting
Hot Stamping Foil Chrome Plating Assembly JIS Sequencing
LMS 5
Current product portfolio with a clear focus on exterior parts
for the automotive industry
Customers Product portfolio Example reference products
Bumper Systems
Interior Parts
Black parts Mercedes Mercedes Mercedes
EQA GLA B-Klasse
Assembly carrier
Exterior Chrome
Plated Plastic Trim
Radiator Grilles Ford Focus Ford Focus Active Ford Puma
Chrome Parts
Body Side Mouldings
and Inserts
Bumper Parts and Opel Insignia Opel Insignia Opel Astra
Inserts
Bezels and Emblems
Peugeot 308 Peugeot 308 Citroen DS4
…and more
LMS 6
Obertshausen and Idar-Oberstein profitable before recent
topline drop, Sulzbach long-term loss making
Historical financial situation
Production Sales (w/o tooling sales), m€ EBITDA, %
400 377 20% 17%
350 15%
300 10%
-48%
250 5% 4%
200 0%
196 0%
150 -5%
103 -31% -10%
100 -10%
65 -13%
71
50 -15% -16%
40
-38% -17%
0 -20%
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
OBH SB IDO
* Sales FCT M&A case LMS 7
Three core short- and mid-term challenges
impacting the automotive sector
Current situation
Covid-19 crisis Semi-Conductor shortage Raw Material prices
The international Through a series of events Market prices for raw
Corona crisis the international supply material experienced
disrupted supply of semi-conductors the highest price hike
chains around the unable in more than a decade,
globe with severe to match demand and further impairing
effects on LMS’s leading to plant closures LMS’s cost
operations for OEMs and LMS competitiveness
LMS 8
LMS has significant potential that will lead to long-term
profitable growth
Technology Strong M&A Add-on Operational
Know-How
Assets Customer Base Acquisitions Improvements
High-end High expertise Long standing Platform for Clear
technology to and deep experience and strategic operational
set new knowledge to established acquisitions to improvement
standards in optimize player with strengthen potential across
injection product portfolio trusted market position all business
moulded design and drive customer and enable areas
parts innovations relationships profitable
growth
LMS 9
We believe an EBITDA margin of 6-7% as achievable,
in line with market comparison and historic best
Percentage XX Sales 2019, mrd €
Competitors Historic best Target EBITDA
8,5 1,2 2,1 0,4 1,2 0,2 • Biggest competitors
Target with EBITDA
FY19 FY20 2023 f. margins of 5 – 7%
12,4% in pre-Covid market
10,9%
8,0% situation (2019;
2020 heavily
6,1% 6,6%
5,9% 5,1% 6-7% effected by Covid)
6%
• In line with historic
best of
Obertshausen plant
Best
OBH prior to substantial
(FY14) sales drop
Incl. galvanization OBH
-8,0%
-11,3%
LMS 10
EBITDA improvement will be achieved by three levers –
operational, organizational and top-line improvements
III.
III
6-7%
IIII.
-10-15%
I I.
EBITDA Operational Organizational Top-line growth EBITDA Target
2020/21 improvements restructuring 2023 f.
achieved by measures such as… for future business flexibility and to drive and ensure long-term
agility, is based on… profitability by…
…cost reduction in OPEX and direct
materials combined with VA/VE …consolidation and centralization of …increase in tender success rate
activities indirect functions
…leveraging opportunities with other
…change in make or buy strategy, …re-organization incl. streamlining of Mutares portfolio companies
e.g. insourcing of chrome business roles and responsibilities
…business development in current
…increasing production efficiency …a social plan to enable the overall markets and entering new segments
and effectiveness as well as workforce reduction
reduction of logistic cost …add-on acquisitions and strategic
partnerships to drive innovations
LMS 11Our capabilities allow growth in product portfolio, customer
segments and new markets
Potential sales, m€ ~5-10 ~10-15 ~50+ Potential EBITDA, % XX
Products / Motorcycles Agricultural machines
Markets
Toys
New
Vans & Sprinters
4-6% >10% Home appliances
Cars & commercial vehicles
4-6% 6-10% Cars & commercial vehicles
Existing
Existing New Customers LMSLMS
12 12LMS aims to be recognized as the best in class plastics
solutions partner when it comes to design, reliability,
innovation and efficiency
LMS is a tier-1 supplier for bumper, front
modules and other exterior parts for large
automotive OEMs.
Our capabilities cover the whole value
chain from design to delivery for design
plastic parts.
Its high level of technology, product and
process know-how, provide the best
foundation to extend current business
within and beyond current markets and to
drive innovations.
LMS 13You can also read
