FY 2016 Annual Results April 20, 2017 Conference Call
FY 2016 Annual Results
April 20, 2017
Conference Call
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Conference Call – April 20, 2017
Forward-looking statements involve risks.
This company presentation contains various statements concerning the
future performance of STRATEC. These statements are based on both
assumptions and estimates. Although we are convinced that these
forward-looking statements are realistic, we can provide no guarantee of
this.
This is because our assumptions involve risks and uncertainties which
could result in a substantial divergence between actual results and those
expected.
It is not planned to update these forward-looking statements.
SAFE HARBOR STATEMENT
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Conference Call – April 20, 2017
• 2016 at a Glance
• Performance in 2016
• Focus 2017
• Questions and Answers
AGENDA
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Conference Call – April 20, 2017
• Sales: € 184.9 million (+25.9%)
• EBIT: € 32.3 million (1) (+20.1%)
• EBIT margin: 17.5% (1) (-80 bps)
• Net income: € 25.4 million (2) (+14.9%)
• Tax rate at 14.7% (2015: 18.7%)
• EPS: € 2.14 (2) (+14.4%)
• Equity ratio: 55.7% (2015: 82.0%)
• Proposed dividend per share: € 0.77 (previous year: € 0.75)
2016 at a Glance
4
Financial Performance
(1) figure adjusted for one-off items resulting from transaction activities and related reorganization expenses (2) figure additionally adjusted for financing expenses and tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables,
for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods, and for tax effects relating to reorganization expenses
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Conference Call – April 20, 2017
• Service parts business improved to 29.0% of total sales
(2015: 24.3%) – including Diatron & STRATEC Consumables
• New developments for major customer programs
• Milestones for ongoing developments achieved
• Development of three STRATEC platforms in advanced stage
Update on integration process of newly acquired units
• Integration process transformed into optimization program
• Combined business cases on the way
• Implementation of a group-wide ERP system
2016 at a Glance
5
Operational Performance
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Conference Call – April 20, 2017
• 2016 at a Glance
• Performance in 2016
• Focus 2017
• Questions and Answers
AGENDA
www.stratec.com FY 2016 Annual Results
Conference Call – April 20, 2017
Sales
7
Full Year Sales as of December 31
123 128 145 147 148
37
0
20
40
60
80
100
120
140
160
180
200
2012 2013 2014 2015 2016
Annual Sales as of 12/31
• 2016: +25.9% to € 184.9 million
• Organic: €148.1 million (+0.8%)
• Growth driven by:
Service parts business
Development projects
Diatron and STRATEC
Consumables
Sales in € million 184.9
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Conference Call – April 20, 2017
Installed Base and Product Groups
Service parts
Analyzer systems
Development, service and consulting
As of December 31
Installed base (based on a 5 year average life cycle)
Number of analyzer systems delivered
Delivered systems & installed base Relative share by product group
As of December 31
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
20.000
2012 2013 2014 2015 2016*
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2012 2013 2014 2015 2016
* 2016 includes delivered systems by Diatron
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Conference Call – April 20, 2017
Gross Profit / EBIT
9
As of December 31
31,0%
37,5% 33,3%
20%
25%
30%
35%
40%
45%
50%
0
10
20
30
40
50
60
70
2014 2015 2016
Gross margin as % of sales Gross profit in € million
Gross profit Gross margin
As of December 31
EBIT EBIT margin
EBIT in € million EBIT margin in %
12%
14%
16%
18%
20%
22%
0
5
10
15
20
25
30
35
2012 2013 2014 2015 2016
Gross Profit and Gross Margin EBIT and EBIT Margin
EBIT margin at 17.5%* (2015: 18.3%)
• Organic adjusted EBIT-margin at 19.3%
• Positive service parts contribution
Gross margin at 33.3%
• Impact from new entities
• Lower margins at the new subsidiaries
*2016 figure adjusted to exclude non-recurring items for transaction activities
*
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Conference Call – April 20, 2017
EBIT Adjustments
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Cost Structure
11
As of December 31
Main cost drivers
• Sales related expenses increased by
110% to € 12.8 million
• Due to higher project support
services for new systems
• Inclusion of newly acquired
companies
• R&D expenses +8.8 % to € 22.8
million
• High number of development
projects
• Increased headcount
0
10
20
30
40
50
60
2014 2015 2016
R&D capitalized
Sales related expenses
General administration expenses
R&D (non-capitalized)
€ m
illio
n
*
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Conference Call – April 20, 2017 12
As of December 31
9%
10%
11%
12%
13%
14%
15%
16%
02468
10121416182022242628
2012 2013 2014 2015 2016
Consolidated net income in € million Margin in %
Consolidated net income
Consolidated net income margin
119 132 168 187
214
0
25
50
75
100
125
150
175
200
225
2012 2013 2014 2015 2016
€ ce
nt
EPS as of 12/31
• EPS at € 2.14*
• Proposed dividend per share: € 0.77
(previous year: € 0.75)
Consolidated Net Income
As of December 31
Earnings per Share
Net Income / EPS
*2016 figure adjusted to exclude non-recurring items for transaction activities and adjusted to exclude financing expenses and tax expenses in connection with the acquisition of the Diatron Group and non-recurring items
arising from the external tax audit for the assessment periods from 2009 to 2013.
*
€ cent
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Conference Call – April 20, 2017
Cash Flow
13
As of December 31
IFRS (€ million) 2016 2015
Cash flow – operating activities 16.3 26.0
Cash flow – investment activities -86.7 -8.7
Cash flow – financing activities 40.6 -8.7
Free cash flow -70.4 17.3
Cash and cash equivalents
at end of period 26.5 56.4
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Conference Call – April 20, 2017
• 2016 at a Glance
• Performance in 2016
• Focus 2017
• Questions and Answers
AGENDA
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Conference Call – April 20, 2017
• Sales guidance for 2017: €205 million to €220 million
• Organic double digit top line growth in 2017
• Profitability in 2017 on a broadly stable level
• Guidance to be updated with H1 results in July 2017
Financial Guidance
Financial Guidance
Focus in 2017 and beyond
FY 2016 Annual Results
Conference Call – April 20, 2017 www.stratec.com 16
• Improve profitability across business (benefits of scale driven by top-line growth)
• Further realize synergies through development activities across STRATEC businesses
• Expand leading market role
• Facilitate integration process of instrument and consumables for partners
• Achieve milestones & market launches
• Accelerate development and supply agreement execution
QUESTIONS
&
ANSWERS
THANK YOU
FOR YOUR ATTENTION!
STRATEC Biomedical AG
Gewerbestr. 37
75217 Birkenfeld
Germany
Tel: +49 7082 7916-0
Fax: +49 7082 7916-999
www.stratec.com
Marcus Wolfinger
CEO
TICKER
Symbol: SBS.DE
Bloomberg: SBS:GR
Reuters: SBSG.DE
ISIN: DE000STRA555
WKN: STRA55