WÜRTH GROUP DIRECT SELLING IN THE DIGITAL WORLD COMPANY PRESENTATION

Transcription

1 WÜRTH GROUP DIRECT SELLING IN THE DIGITAL WORLD COMPANY PRESENTATION Joachim Kaltmaier, CFO & Member of the Central Managing Board LBBW International Fixed Income Conference Stuttgart, 29 September 2015

2 2 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

3 AGENDA Würth Group Business Overview Investment Financial Overview Merits Top Action Points in 2015 Direct Selling in the Digital World Potential Capital Market Offering Activities Overview 3 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

4 WÜRTH AT A GLANCE World market leader in the trade with assembly and connecting materials Family business More than 67,000 employees worldwide Annual sales 2014: EUR 10,126 bn. Operating Result 2014: EUR 515 million 4 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

5 SALES DEVELOPMENT WÜRTH GROUP , IN MILLION EUR 10'000 7'500 CAGR: 21.6 % (Compound Annual Growth Rate) 10,126 5'000 2' WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

6 STRATEGIC BUSINESS UNITS SALES IN %, 2014 Production 6.9 % reca Group 4.8 % Electronics 5.4 % Financial Services 1.1 % Others 1.1 % Würth Line 55.7 % Electrical Wholesale 9.9 % Trade 9.2 % Tools 3.6 % Screws & Standard Parts 2.3 % 6 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

7 STRATEGY & KEY SUCCESS FACTORS Sales Internationalisation Decentralized structure Quality Brand 7 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

8 AGENDA Würth Group Business Overview Investment Financial Overview Merits Top Action Points in 2015 Direct Selling in the Digital World Potential Capital Market Offering Activities Overview 8 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

9 OVERVIEW SITUATION WÜRTH GROUP YTD DECEMBER Sales in mio. EUR Employees Operating Result in mio. EUR +3.9 % +3.9 % % +4.8 %* 9'745 10'126 63'571 66' mio. EUR + 2,473 MA + 70 mio. EUR * currency adjusted 9 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

10 REGIONAL SALES DEVELOPMENT YTD DECEMBER 2014 /2013, IN MIO. EUR +4.2 % 4'403 4' % % Germany +1.8 % 1'650 1'679 Scandinavia +5.5 % Eastern Europe ,5 % 1'130 1'192 Western Europe Southern Europe +5,5 % Asia, Africa, Oceania America 10 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

11 EBIT WÜRTH GROUP IN MIO. EUR AND IN %, YTD DECEMBER 800 EBIT EBIT in % WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

12 OPERATING CASHFLOW WÜRTH GROUP DEVELOPMENT WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

13 BALANCE SHEET STRUCTURE WÜRTH GROUP AS OF DECEMBER Assets Liabilities & Equity Non-current Assets (42,6%) (45,2%) Equity capital Current Assets Long-term Liabilities Short-term Liabilities WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

14 AVERAGE DIVIDEND PAY OUT RATIO IN % 100% 90% 93.30% 80% 70% 60% 50% 40% 30% 28.33% 42.74% 44.91% 46.40% 48.50% 52.53% 20% 10% 0% 15.00% Würth Group BMW Allianz Daimler Siemens BASF Bayer Otto * * For Otto Group only the years WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

15 SELECTED FINANCIAL FIGURES WÜRTH GROUP (IN MILLION EUR) & RATIOS Sales Mio. EUR 8,633 9,699 9,985 9,745 10,126 Gross profit margin % 53% 53% 51% 52% 52% EBIT Mio. EUR EBITDA Mio. EUR EBITDA margin % 8.0% 7.6% 7.6% 8.2% 8.2% Equity Mio. EUR 2,867 3,042 3,204 3,399 3,683 Capex Mio. EUR Net debt / EBITDA Multiple 1.5x 1.4x 1.3x 1.3x 1.3x Collection Days Days 52d 52d 52d 53d 52d Stock Turnover Multiple 5.8x 5.3x 5.3x 5.2x 5.1x Fluctuation (employees) % 15% 15% 16% 15% 14% 15 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

16 CREDIT RATING GUIDELINE FOR STRATEGY & COMPANY MANAGEMENT SINCE 2000: S&P RATING A outlook stable 16 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

17 AGENDA Würth Group Business Overview Investment Financial Overview Merits Top Action Points in 2015 Direct Selling in the Digital World Potential Capital Market Offering Activities Overview 17 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

18 OVERVIEW SITUATION WÜRTH GROUP YTD JUNE Sales in mio. EUR Employees Operating Result in mio. EUR +8.7 % +3.9 % unchanged +5.5 %* 64'891 67' '020 5' mio. EUR + 2,888 MA unchanged * currency adjusted 18 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

19 WHAT IS RUNNING WELL IN 2015? DEVELOPMENT IN ITALY DEVELOPMENT IN SPAIN DEVELOPMENT IN USA STANDARDIZATION OF IT EXPANSION OF CUSTOMER BASE E-COMMERCE ACTIVITIES ENGAGE MORE SALES PERSONS 19 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

20 WÜRTH GROUP TOP ACTION FIELDS Customer Growth 6 Products, Solutions and Services, offering Added-Value to Customers TOP ACTION FIELDS 1 Further Build-Up of Sales Force Globally 2 Strengthen Multi-Channel- Distribution E-Commerce Branch Office Network 4 Continued Diversifaction as Stabilising Factor Acquisitions Industry Electronics Regional & strat. Realignment 3 20 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

21 E-COMMERCE COMPETITION THE FIGHT FOR MARKET SHARE IS IN FULL SWING AND RIGHT IN THE MIDDLE OF IT 21 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

22 2. STRENGTHEN THE MULTI-CHANNEL DISTRIBUTION: TO INCREASE MARKET SHARE Customer type Potential utilization in % Only branch offices 9 5x Only sales representative 9 Branch offices & sales representative 34 Branch office, sales representative & system WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

23 2. STRENGTHEN THE MULTI-CHANNEL DISTRIBUTION: WITH AN ENLARGED BRANCH OFFICE NETWORK Branch Offices in 50 Countries Plan : +50 Branch Offices 23 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

24 2. STRENGTHEN THE MULTI-CHANNEL DISTRIBUTION: WITH E-COMMERCE DE-Würth 2014: 161,5 Mio. (+21,0 %) 2013: 133,5 Mio. E-BUSINESS E-COMMERCE E-PROCUREMENT/EDI M-COMMERCE SYSTEME + 17,4 % + 27,4 % + 230,0 % + 1,1 % ,8 Mio. EUR 14,5 Mio. EUR 6,7 Mio. EUR 4,5 Mio. EUR ,7 Mio. EUR 11,4 Mio. EUR 2,0 Mio. EUR 4,4 Mio. EUR Source: DE-Würth, SAP BW 24 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

25 Configurator & planer Inventory management Product finder 2. STRENGTHEN THE MULTI-CHANNEL DISTRIBUTION: WITH ADDED-VALUE E-SERVICES Online-Shop KD-App Fahrzeug-Zubehör-Finder Aufmaßskizzen Dübel Assy Dämmkappen Dichtstoff Dichtband Klebstoff Unterkeile Scheibenkleben Gehörschutz Fensterbau Sonnenschutz Insektenschutz Türen Technical Software Holzbau Glasauskunft Kabeltrommel 25 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

26 EXAMPLE PRODUCT FINDER ANCHOR Since Sept Shop: access/mth. App: access/mth. 26 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

27 3. ACQUISITIONS RECENT TRANSACTIONS Company Sales 2014 in MEUR United Plywoods (USA, Würth Line Wood) 29 MEF (Italy, Electro Wholesale), 65% stake 120 Stelvio (Italy, Electronics) 21 Timberline Fasteners (USA, Würth Line Industry) 18 TOGE Dübel (Germany, Anchors) 7 AC Word (Czech Republic, Electro Wholesale) 5 Northern Safety (USA, Personal Protective Equipment) 170 Paravan (Germany, Car Customization for Disabled), 51% stake 20 Total WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

28 4. CONTINUED DIVERSIFICATION AS STABILISING FACTOR ACTIVITIES IN OVER 80 COUNTRIES BUSINESS UNITS 13 LARGEST CUSTOMER 65,1 MIO. EUR LARGEST SUPPLIER 59,3 MIO. EUR 3,2 MIO. ACTIVE CUSTOMERS 38 MIO. ORDERS PER YEAR 28 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

29 6. DIFFERENTIATION: WITH TAILOR-MADE DELIVERY SOLUTIONS Standard Order 48 HOURS Full Product Range Service HOURS Full Product Range Immediate Shipping Service 3 HOURS Branch Product Range Click & Collect 60 MINUTES Branch Product Range Branch 15 MINUTES Branch Product Range Orsy Shelf 3 MINUTES Individual Product Range 29 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

30 AGENDA Würth Group Business Overview Investment Financial Overview Merits Top Action Points in 2015 Direct Selling in the Digital World Potential Capital Market Offering Activities Overview 30 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

31 CAPITAL MARKET ACTIVITIES CORE ELEMENTS OF THE FINANCIAL POLICY transparency Active Benchmarking $ Safety before profit High equity ratio Capital market orientation A+ A Rating as a key indicator 31 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

32 CAPITAL MARKET ACTIVITIES 1st Note Issue further note issues amounting EUR 2,5 Bio. 1st USPP 2004 Source: Bloomberg 32 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

33 CAPITAL MARKET ACTIVITIES GROUP DEBT ISSUANCE PROGRAMME VOLUME ISSUER GUARANTOR OFFERINGS ISSUING CURRENCIES TERMS LISTING ARRANGER DEALER EUR 3 billion Würth Finance International B.V. Adolf Würth GmbH & Co. KG Public and Private Various fixed / floating Luxembourg, regulated market Deutsche Bank BofA Merrill Lynch, Credit Suisse, Deutsche Bank, DZ BANK AG, HSBC, Hypo Vorarlberg, Landesbank Baden-Württemberg, Nordea, Santander Global Banking & Markets, UBS Investment Bank, UniCredit Bank, Zürcher Kantonalbank 33 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

34 CAPITAL MARKET ACTIVITIES CASH HOLDINGS (IN MIO. EUR) ø 598 Mio. EUR 34 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

35 CAPITAL MARKET ACTIVITIES DEBT CAPITAL MATURITY PROFILE MEUR 35 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

36 36 WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015

37 INVESTOR RELATION CONTACTS Adolf Würth GmbH & Co. KG Press and Public Relations Reinhold-Würth-Straße Künzelsau Germany Telephone: Fax: Würth Finance International B.V. Postal address: P.O. Box 344 NL-5201 AH 's-hertogenbosch The Netherlands Telefon: +31 (0) Telefax: +31 (0) WÜRTH GROUP - DIRECT SELLING IN THE DIGITAL WORLD Würth Group, 09/29/2015