Exel industries Résultats Annuels 2014-2015

WORLD LEADERIN PRECISION SPRAYING SOLUTIONS

AGRICULTURAL SPRAYING SUGAR BEET HARVESTERS

SPRAYING AND WATERING

INDUSTRIAL SPRAYING

WORLD LEADER

IN PRECISION SPRAYING SOLUTIONS

One Core Business Line, Four Activities

Leader in spraying techniques

Manufacturing and automotiveConsumerAgriculture

The right dose, in the right place, at the right time“

2

Agricultural Spraying Sugar Beet

Agriculture

Agricultural Spraying


3

Sugar beet harvesters


Terra Dos T4 – 40m3 Terra FelisTerra Dos T3 – 30m3

Lectra - Self-propelled harvester

M41- Self-propelled harvester

Lighttraxx - 20m3

4

Spraying and Watering

Consumer – Watering & Spraying

5

Industrial spraying

Industrial spraying

6

Agricultural Spraying Sugar beet harvesters Spraying and Watering

Industrial spraying

A group of dynamic companies

7


Industrial spraying

Global reach

8

Industry

Sugar beet

Sales

Large public


Industrial spraying

4280 88 89 94 101

132 138 127 135 137 134198

232

166 175239

301333

29080

152 164176 183

210

278 275266 270 277

296

456 452

382

430

525

740 775.4

725.2

Revenue at a record high

H2 H1

9

Current figures in millions of

euros

Changes in annual revenue

Over 3,760employees

Located in 29 countries, on all continents

27 industrial sites (14 in FRANCE)

Over 200 active patents

€725.2 million in revenue in 2014-2015

€775.4 million in revenue in 2013-2014

R&D: 6% of personnel, 4% of revenue

A family company run by the BALLU family for 60 years

World leader in spraying:No. 1 worldwide in Plant ProtectionNo. 3 worldwide in Materials ProtectionAn emerging leader in sugar beet harvesters

10


Industrial spraying

Customer Service

Passionate about our products – Innovation

Excellence - Professionalism

Confidence – Initiative

Honesty – Transparency

Team spirit

Pride of belonging

Responsible behaviour

Our values

11


Industrial spraying

Continue our international expansionAgriculture: Russia-Ukraine, the Americas, ChinaManufacturing: Asia, the Americas and BRIC

InnovationInnovation to create the sprayers of tomorrowPatent filings

Profitable and sustainable growthImproving productivityGenerating cashAcquisitions

Strategic objectives

12


Industrial spraying

Expanding the international scope of revenue

73.2%

-

100

200

300

400

500

600

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Revenue in

France

International

revenue

Acquisition of SAMES

Acquisition of HARDI

Acquisition of AGRIFAC

Acquisition of HOZELOCK - TRICOFLEX - HOLMER

13


Industrial spraying

Champion of growth

EXEL Industries, a

listed company worth

over €500 million

Stronger growth over

the last 3 years

www.croissanceplus.com

430

525

740775

10/11 11/12 12/13 13/14

14

2014 / 2015

15


Industrial spraying

2012-2013 2013-2014 2014-2015

740.2775.4

725.2

€ million

Agricultural precision spraying business dropped

€50 million

This activity accounts for 40% of revenue

Other Group activities are in line

Impact of currency movements: +€15.5 million

(USD and GBP)

Consolidated revenue 2014-2015

16


Industrial spraying

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

France Europe excl. CIS CIS North America South America Asia Africa Australia

2014 2015

27% France and 73% international

Revenue by geographic region 2014-2015

-22%

+8%-16%+78%

+4%

-30% +5%

-1%

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France

Europe excl. CIS

CIS

North America

South America

Asia

Africa

Australia


Industrial spraying

Consolidated revenue by activity 2014-2015€725.2 million (vs. €775.4 million)

24%

45%

18%

13%

18

-

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

Agricultural Spraying Sugar Beet Consumer Manufacturing

Agricultural

Spraying

40%

Sugar Beet

19%

Consumer

14%

Manufacturi

ng

27%

-16%

-3%

+6%

+2%


Industrial spraying

2014-2015 revenue by activity: counter-seasonal

19

0

20 000

40 000

60 000

80 000

100 000

120 000

Q1 Q2 Q3 Q4

Agricultural Spraying Sugar Beet Consumer Manufacturing


Industrial spraying

-

50 000

100 000

150 000

200 000

250 000

Q1 Q2 Q3 Q4

2012/2013

2013/2014

2014/2015

Seasonal nature of

consolidated Group revenue Agriculture + gardening

Industrial projects + sugar beet

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Financial Analysis

2014/2015

21


Industrial spraying

€725.2 million in revenue compared to €775.4 million in 2014

Current Operating Income (current EBIT) €50.9 million vs. €54.6 million in n-1

Net income: €31.7 million vs. €34.0 million in n-1WCR = 106 days

Optimising the supply chain => reducing inventories

NFI: €74.8 million vs. €95.5 million

Main Financial Indicators

22


Industrial spraying

Changes in revenue

23


Industrial spraying

Breakdown of revenue by currency

USD

7,1%

AUD

3,21%

GBP

9,65%

DKK

1,16%

EUR73.32%

USD

8,3%

AUD

4,18%

GBP

10,70%

DKK

4,30%

EUR64.52%

2013-2014 2014-2015

24


Industrial spraying

2014-2015 results

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in € million 2013-2014 2014-2015

Chg.in €

millionChg. %

Revenue 775.4 725.2 (-50.2) (-6.5%)

EBITDA 70.1 63.6 (-6.5) (-9.3%)

as % of revenue 9.0% 8.8%

Net allocations to depreciation and provisions (-15.5) (-12.7) 2.9 (-18.5%)

Current EBIT 54.6 50.9 (-3.7) (-6.7%)

as % of revenue 7.0% 7.0%

Non-recurring items (-2.3) (-5.8) (-3.5) 151.8%


Industrial spraying

Simplified balance sheet

Other

current

assets

37%

Other

current

assets

41%

Inventories

31%

Inventories

29%

Non-

current

assets

33%

Non-

current

assets

29%

Assets Liabilities

2015

€643 million

2015

€643 million2014

€684 million

2014

€684 million

Current

liabilities

31%

Current

liabilities

42%

Non-current

liabilities

25%

Non-current

liabilities

21%

Shareholders

' equity

43%

Shareholders

' equity

37%

26

Shareholders’ equity = €279.6 million, up €28.9 millionGearing: 26.8%Operational working capital improved by €5 million


Industrial spraying

-100,000

-50,000

0,000

50,000

100,000

150,000

200,000

1/8/07 1/2/08 1/8/08 1/2/09 1/8/09 1/2/10 1/8/10 1/2/11 1/8/11 1/2/12 1/8/12 1/2/13 1/8/13 1/2/14 1/8/14 1/2/15 1/8/15

NFI

Acquisition of Hardi Acquisition

s of Agrifac

and

Hozelock

Acquisition

of Holmer

Property

acquisition

200.000

150.000

100.000

50.000

0.000

-50.000

-100.000

Net financial indebtedness

27

Feb 15: 142.2

August 14: 95.7

August 15: 74.8


Industrial spraying

Net financial indebtedness

28


Industrial spraying

Lengthening of debt maturity:New, longer-term financing

Medium-term foreign currency financing => reduced

exposure to currency effects

Debt

Moins d'1 an 1 à 5 ans + 5 ans

2013-2014 65% 30% 5% 100%

2014-2015 35% 55% 10% 100%

Less than 1 year 1 to 5 years + 5 years


Industrial spraying

Cash management / Gearing

in € million 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Net financial debt 12.5 (-4.7) 59.6 95.7 74.9

Equity 187.0 212.3 229.4 250.7 279.7

Gearing % 6.7% (-2.2%) 26.0% 38.2% 26.8%

30

Markets and

prospects

31

Prospects in Agriculture

32


Reduced sales (global crisis): Fall in prices: cereals down 15%, potatoes down 40%Farmers’ income down

Vineyards and orchards holding up wellStructures adapted to expected level of activity

Recovery within a yearExcess cyclical activity in France (Loi Macron to boost growth, ending mid-April 2016)

13/14 14/15

346.0

291.0

33

Prospects in Agriculture-16%


34

Agriculture: Moving towards price increases ?

Wheat, Rouen stocked €170/t


Agriculture: European prospects

35

Source: CEMA November 2015


Agriculture: Global prospects (Agrievolution Economic Committee)

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Award-winning innovations

Silver medal: Berthoud B-Safe

Bronze medal: Evrard Regulor 6+

Machine of the year: Stilla de Caruelle trailer

New products

Matrot Falcon self-propelled sprayer

Agrifac endurance self-propelled sprayer

Tecnoma 100% electric Voltis

Hardi Delta Force spray boom

New Hardi carried spraying system

Agriculture: Innovations in 2015

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Need to grow agricultural production in the coming years

70% more by 2050! (source: FAO)

Need to invest in new sprayers:

To increase yields

To optimise spending on plant health products and fertilisers

To comply with new environmental requirements

Agricultural investments in emerging countries

To stem hunger worldwide (as per FAO)

To avoid deforestation

Agricultural commodity prices trending upwards

Agriculture: a growth industry!

Good long-term trends in agricultural precision spraying solutions

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39


Gain in market share:revenue stable despite the crisisTrade-in of second-hand machinery

Adapting the French structure in Cambrai (subsidiary of Holmer Germany at 1 July 2015)

Turkish subsidiary set up

Sugar beet harvesters 2014-2015

13/14 14/15

140.7137.0

40


Large capacity carriersBeet harvesters

Product ranges

41


Customer segmentation, direct sales

42

Businesses and Agro holdingsHigh working speed (ha/h)Total ownership costZero downtime

Cuma – large farmersTotal ownership costSoil compactionFlexibility

FarmersSoil compactionFlexibilityIndependence


Negative factors Yields up (trending +2% per year – this will rise to +4% per year with genetic selections) Sugar cane, Stevia, Aspartame, Isoglucose Sugar consumption rising 2% per year but this could drop due to health problems in the western world

Positive factors Longer operating periods for sugar refineriesBioethanol, biogas – methane digester, chemical industry Sugar consumption up in emerging countriesRussia: fleet set for upgrade in 2 yearsDevelopment area: USA, China

Long-term prospects

43


Q4-30 12 rankings multiple award-winner at Agritechnica 2015:

Machine of the year“Green” machine prize

Easylift

Terra Variant: full-field logistics

World record: 86 ha in 24h

Innovation in 2015 – World record

44

Spraying and

Watering

45


13/14 14/15

99.4 104.9

Favourable weather conditions over the yearIncrease in England (GBP effect)Slowdown in referencing in France and EuropeAustralian subsidiary set upMany innovations

Spraying and watering 2014-2015

46


Expert in spraying and wateringHozelock: Large range of consumer spraying productsBerthoud & Cooper Pegler: premium brand for professionalsEasy fresh: mistingLaser: Professional sprayer for manufacturers

Significant innovations on the marketBerthoud electric weeder: Green PowerEasy fresh misterHozelock Flexi SprayHozelock Pico ReelWonder WeederUltra-Twist in 2015

Our assets

47


Watering programmer:Controlled by smartphone (cloud controller)Controlled by the rising and setting of the sun (sensor controller)

Revolutionary drip irrigation watering system (easy drip)

Major innovations in 2015-2016

48


GardeningA return to gardening valuesGrowth potential in senior and urban segmentsNo. 1 in EnglandPotential in Europe and internationally

Spraying Trend“Non-chemical” trend already seen in northern EuropeLoi Labbé to ban pesticides in France from 2020“Natural” weeders such as vinegar less effectiveSprayer used more oftenAdequate innovations: Green Power (thermal weeding)

Watering TrendGlobal warmingOpportunity for responsive local manufacturers with good logistics

Long-term consumer prospects

49

Industrial spraying

50

Industrial spraying

Growth in Industrial Distribution activityLess “system”Improving profitability

13/14 14/15

189.3 192.3

Industrial spraying 2014-2015

51

Industrial spraying

Continue international expansionAlready 30% of sales are in emerging countriesConsolidating our subsidiaries (Asia and Latin America) Subsidiary for Japan and Africa opened

Investments in R&DTechnology with better transfer rates“Cleaner” solutions (legislation on VOCs, REACH)More economic solutionsLaunch of new products

Manufacturing

52

Industrial spraying

Nanogun electrostatic paint spray gun

The lightest on the market at 488g

Ergonomics

Effective electrical charge: 60 kV, 80

mA

Transfer rates improved by 20%

53

Industrial spraying

ActivityGrowth in industrial distribution activity Positive USD effect: Competitiveness vs. US manufacturers, improved marginsSales office opened in JapanEntry to VW: Poznan project (Poland)

ProspectsFalls in South America and RussiaGain in market share and slight growthDeveloping our product rangeReferences with new car manufacturers

Activity and Prospects

54

Group strategic

objectives

55


Industrial spraying

Continue our international expansionAgriculture: Russia-Ukraine, the Americas, ChinaManufacturing: Asia, the Americas and BRIC

InnovationInnovation to create the sprayers of tomorrowPatent filings

Profitable and sustainable growth Improving productivityGenerating cashAcquisitions

Enhance our leadership!

Strategic objectives

56


Industrial spraying

Q1 revenue: 21 December 2015

Annual General Meeting: 12 January 2016

Q2 revenue: 18 March 2016

H1 results: 21 April 2016

Q3 revenue: 23 June 2016

Agenda for 2015-2016

57

58

WORLD LEADER

IN PRECISION SPRAYING

SOLUTIONS

www.exel-industries.com

Exel industries Résultats Annuels 2014-2015

Business

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