Transcript Document

Annual results 2009
Amsterdam, March 2nd, 2010
Board of Directors
Vincent de Bok
Huub van der Vrande
Highlights 2009
Course of events strongly influenced by negative economical
developments, but from September onwards recovery started
Turnover fell by 22.4% to € 188,4 m
•
Lack of demand in the semiconductor sector left a strong mark in the first 8 months, as from
September notable recovery
•
Also other sectors were hit and show volatility, but as from September positive on balance
•
Order portfolio as of year-end 2009 56,0 m, a slight drop of 2% compared to 2008, but an increase
of 7% compared to the end of June 2009
Net result excluding exceptional charges to -4,6 m (2008: 3,1 m)
•
Strong decrease of cost base by reduction personnel; in average 385 FTE’s less than 2008
•
Exceptional charges for integration NEA/NIS 1,1 m (net)
•
Slight positive result in the 4th quarter after four loss-making quarters
Highlights 2009
Course of events strongly influenced by negative economical
developments, but from September onwards recovery started
Strong balance ratios
•
Solvency 44,2% (year-end 2008: 45,3%)
•
Decrease shareholders’ equity compensated to a large extent by decrease of inventory and
limited investments
Net cash flow -1,8 m (2008 +6,5 m)
•
Positive net cash flow in 2nd half 2009 of 8,1 m
•
Strong reduction of working capital in the second half of the year
Key figures 2009
(EUR m)
2009
2008
Mutation
H1 2009
Gross turnover
206,3
267,2
-23%
102,1
Net turnover
188,4
242,8
-22%
93,4
-4,0
5,9
-3,1
-1,5
-4,5
-1,3
Net result*
-4,6
3,1
-3,2
Net result
-5,7
-0,5
-4,2
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Gross margin / net turnover
41,1%
41,0%
40,7%
Operating margin*
-2,1%
2,4%
-3,3%
Net margin*
-2,4%
1,3%
-3,4%
Net profit per ordinary share (EUR)
-0,59
-0,05
-0,43
Operating result*
Exceptional charges
* Excluding exceptional charges
Positioning Neways
•
Market:
- Coremarket Benelux / Germany
- Intentional focus on growth segments industrial,
semicon, medical, automotive, defence and “high-end”
telecom
•
Customers:
- Industrial / professional market
- B2B (OEM’s: Original Equipment Manufacturers)
•
Specialisation:
- Small complex / specialised series
- Development / production of electronic
components to complete box build systems
- Product life cycle management/ one-stop-provider
•
Core compentence:
- Close to customers (Netherlands, Germany)
- High added value / expertise and service
- Low production costs (Eastern Europe, China)
Development turnover and order book
Order book (EUR m) at the end of
Net turnover (EUR m)
-2%
281
243
239
-22%
142
188
113
127
95
-28%
112
2006
139
+7%
H2
74,8
57,3
H1
52,6
56,0
H1 2009
2009
130
93
2007
2008
2009
2007
2008
•
As from September notable recovery of semicon sector
•
Situation in other sectors remained volatile, but as from September positive on balance
•
No loss of customers through crisis in 2009; new customers/orders: VDL Bus, Sensus
Smart Metering
Calibration
Production
Product application
COACH
Wiring harness platform
Product application
Flight simulator
Interactive flight control system
Net turnover per market sector
(EUR m)
2009
%
H1 2009
%
2008
%
2007
%
Industrial
64
34
32
34
82
34
84
30
Medical
58
31
31
33
66
27
73
26
Semiconductor
27
14
10
11
41
17
75
27
Automotive
15
8
7
8
20
8
17
6
Defence
11
6
5
6
15
6
13
5
Telecom
10
5
6
6
12
5
8
3
Other
3
2
2
2
7
3
11
3
Total
188
100
93
100
243
100
281
100
Development of results
Operating result* (EUR m)
Net result* (EUR m)
21,0
14,5
16,7
11,2
9,9
6,7
9,6
11,1
7,1
H2
6,5
H1
4,7
1,4
3,9
-2,5
H2
7,8
-2,4
-4,4
-0,5
-1,1
-5,5
2006
2007
2008
2009
H1
1,9
-4,2
-1,5
-5,7
2006
2007
2008
2009
•
Restructuring costs of 1,5 m (gross)
•
Cost-saving measures reduced the drop in the results
•
Breakeven level (based on net turnover) decreased significantly from 220 m per year-end
2008 to 195 m per year-end 2009
•
Operational result in the 4th quarter slightly positive
* 2008 / 2009 incl. extraordinary expenses
Development operating margin
• Unprecedented drop in demand due to the
economic crisis
• Causes strong underoccupancy
EBIT MARGIN *
• Demands strong decrease of cost base
7,0%
7,5%
• Increase in turnover is most important
driver for EBIT-margin recovery
7%
2,4%
-2,1%
-3,3%
2006
* Excluding exception charges
2007
2008
H1 2009
2009
Potential improvements operating margin
•
Better occupancy
•
Decrease of cost structure
•
Suppliers reduction / preferred suppliership
•
Extension of component purchase in Asia
•
Expanding capacity Slovakia / China in people and resources (SMD-capacity / test
equipment)
•
Growth of development and engineering activities and prototyping
•
Increase of intercompany deliveries by strengthening one-stop-providership /
internal cooperation
•
Growth in defence orders  higher added value and more stability in turnover
Balance sheet
Solvency ratio*
•
Decrease in shareholders’ equity (-12%)
caused by realized loss
•
Decrease in balance sheet total (-10%) by
strong decrease in inventory and limited
investments
•
Solvency adjusted for deferred tax and
goodwill 41,5% (year-end 2008: 43.7%)
45,3
44,2
43,9
41
2006
*
2007
2008
2009
shareholders’ equity / total equity
* 2008/2009: guaranteed equity = total shareholders’ equity
Working capital
• Higher turnover rate of
inventory due to recovery of
demand
• Strong decrease of working
capital utilisation in 2nd
half of the year
(EUR m) per ultimo
2009
H1
2009
2008
Inventory
38,4
42,3
47,1
67
77
76
32,2
32,0
33,7
52
61
55
36,2
45,2
40,0
In days of turnover
Accounts receivable
In days of turnover
Working capital
Cash flow
Net cash flow
•
Strong decrease working capital
2nd half 2009
•
Modern machinery; low investment
level
•
4
(EUR m)
6,5
New production facility Neways
Wuxi in China
-1,8
-9,9
2007
2008
H1 2009
2009
(Bank)debts
50,0
(EUR m)
45,0
40,0
subordinated
35,0
30,0
38,7
25,0
23,6
20,0
18,5
19,5
9,7
15,0
10,0
5,0
others
8,2
9,1
12,6
10,7
12,9
11,4
5,7
0,0
2001
2002
2003
2004
2005
2006
9,6
9,8
11,8
2008
2009
3,4
2007
Human resources
• Knowledge component more and
more important
• Strong reduction of flexible
workforce buffer
• Fixed employee redundancies
Average number of employees
2247
2097
864
885
2168
* of which hired
1383
1301
2006
2007
212
306
1212
1772
685
657
867
• Number of employees per year-end
decreased by 9% van 1.946 to 1.772
(174 FTEs)
• Approx 40% of total number of
employees working in EasternEurope and Asia
1783
1098
1115
2008
2009
ult 2009
151
58
96
Eastern
Europa
and
China
Western
Europe *
Data per share
EUR
2009
2008
2007
Operating result
-0,57
0,14
2,26
Net result
-0,59
-0,05
1,56
-
-
0,47
4,20
4,79
5,26
9.644
9.644
9.299
Dividend
Shareholders’ equity
Number of outstanding shares (x 1.000 year-end)
EMS - markttrends
•
International development / increase in outsourcing by OEMs (extra through
the economic recession)
•
Offering more added value; demand for life cycle management and earlier
involvement in development (one-stop-providership)
•
Shorter product life cycle
•
Flexibility versus efficiency and cost reduction
•
More and more production in low-wage countries (Eastern Europe / China)
•
Increasing transparancy due to modern communication media / globalisation
•
Growing demand for SMOI (Supplier Managed Owned Inventory)
•
Further intensifying of partnerships / customer relations – importance of being
close to the customer (Western-Europe)
Long term strategy
•
Realization of organic growth, supplemented by suitable acquisitions
•
Expansion of one-stop-provider concept / increase in added value
–
–
•
More balanced spread of activities over market segments aimed at more
stable turnover- and yield development
–
–
•
Strenghtening of development side and systems assembly
Expansion of Electronic Mechanical Repair (EMR) activities
Medical sector
Defence market
Improvement in efficiency
–
–
–
Optimalisation production outsourcing to Eastern-Europe and China (own facilities)
Suppliers reduction/ better use of purchase advantages
Ongoing new cost control initiatives
Starting position and points of interest 2010
•
•
•
Despite loss in a very challenging year 2009 the company is stable
–
No loss of customers in difficult times
–
Balance ratios / solvence strong
–
Modern production facilities / equipment
–
Break-even level strongly lowered by reduction of personnel and costs
–
Integration NEA / NIS completed
–
Extension of capacity in Asia (Neways Wuxi)
–
Start prepartion implementation new ERP system
Order portfolio significantly better
–
Semiconductor / automotive
–
VDL Bus as a new customer
–
Acquisition Sensus Ludwigshafen system assembly activities
–
Increase of overall number of tenders
–
Limited recruitment of personnel
But: Cost savings and working capital management continue to be key focal points
Outlook 2009

Clear recovery in semiconductor sector

Other market sectors still volatile, but as from September 2009 positive on balance

Development turnover and result in first two months 2010 in line with Q4 2009

Further increase of order portfolio in the first two months of 2010

Still too early to give a forecast for the total year 2010; worldwide economic
developments still too uncertain