9M ’14 Results presentation
November 12, 2014
9M ’14 - Highlights
Negative market trend in Europe in the ICC&R business.
Sales increase in both ICC&R and Radiators.
EBITDA increase in both ICC&R and Radiators.
Net Result significant increase.
Positive Cash flow despite Equity investment in ICC&R.
Radiators turnaround is on track.
RC Group (ICC&R) acquires Aircotech (consolidation in Q4).
Dividend Policy
The figures reported in the present document, including some percentage values, were rounded to the nearest Euro. Therefore, some totals in the
tables may not coincide with the sum of constituent amounts.
All 2013 data are reported.
For comparison purposes 2013 figures have been restated according to the JV in China shareholders agreements amendments and IFRS 11
requirements.
1
9M ‘14 Sales breakdown and mix by Business Line
Sales breakdown by business line
9M ‘14
9M ‘13
Δ%
ICC&R
249,4
237,6
5,0%
Radiators
47,4
44,5
Total
296,8
282,1
€M
Sales mix by business line
9M ‘14
9M ‘13
Δ%
ICC&R
84,0%
84,2%
-0,2 pp
6,6%
Radiators
16,0%
15,8%
+0,2 pp
5,2%
Total
100,0%
100,0%
% total
Sales increase in both ICC&R and Radiators.
2
9M ’14 ICC&R Sales Trend by Geography - Change % vs. 9M ‘13
€M
9M ‘14 % tot 9M ‘13 % tot
€M
Δ%
- Overall increase.
- Europe slight increase with
growth in South and North;
West
stable
and
East
decrease.
- Asia and ROW significant
increase.
Europe
158,0
63,3%
156,5
65,8%
0,9%
Asia
78,8
31,6%
69,2
29,2%
13,9%
RoW
12,6
5,1%
11,9
5,0%
5,4%
Total
249,4
100,0%
237,6
100,0%
4,9%
3
9M ‘14 EBITDA by business
€M
Q3 '14
Q3 '13
Δ%
9M '14
9M '13
Δ%
13,8
11,9
16,4%
34,7
32,7
5,9%
% on sales
15,8%
14,7%
+1,1 pp
13,9%
13,8%
+0,1 pp
Radiators
1,7
1,0
68,1%
0,3
(1,5)
n.a.%
% on sales
9,0%
5,3%
+3,7 pp
0,7%
(3,4%)
+4,2 pp
Corporate & elimination
(0,8)
(1,3)
n.a.%
(2,8)
(2,8)
-
% on sales
n.a.%
n.a.%
-
n.a.%
n.a.%
-
Consolidated
14,7
11,6
26,6%
32,2
28,4
13,3%
13,8%
11,6%
+2,2 pp
10,8%
10,1%
+0,7 pp
ICC&R
% on sales
4
9M ’14 Consolidated Income Statement
€M
9M '14
9M '13
∆%
9M '13
impairment
Net Sales
Gross Margin
296,8
105,3
282,1
100,4
5,2%
4,9%
282,1
100,4
% on sales
35,5%
35,6%
-0,1 pp
35,6%
32,2
28,4
13,3%
28,4
% on sales
10,8%
10,1%
+0,7 pp
10,1%
Impairment
(0,1)
-
n.a.%
(21,5)
% on sales
n.a.%
-
n.a.%
(7,6%)
EBIT
24,1
20,7
16,1%
(0,8)
% on sales
8,1%
7,3%
+0,8 pp
(0,3%)
Group Net Result
12,0
10,4
15,5%
(11,1)
% on sales
4,0%
3,7%
+0,3 pp
(3,9%)
8,0
7,0
15,5%
(7,4)
EBITDA
EPS – Euro cents
5
9M '14 Net Working Capital trend
€M
Sep '14
Dec '13
Sep '13
∆ Dec
'14/’13
∆ Sep
'14/’13
85,4
75,4
78,3
10,0
7,1
21,2%
19,4%
19,5%
+1,8 pp
+1,7 pp
57,5
46,4
58,2
11,1
(0,7)
% on 12 months rolling sales
14,3%
11,9%
14,5%
+2,4 pp
-0,2 pp
Trade Payables
(98,8)
(91,6)
(98,3)
(7,2)
(0,5)
(24,5%)
(23,6%)
(24,5%)
-0,9 pp
-
44,2
30,2
38,1
14,0
6,1
% on 12 months rolling sales
11,0%
7,8%
9,5%
+3,2 pp
+1,5 pp
Other short term assets /
liabilities
(22,6)
(17,7)
(20,7)
(4,9)
(1,9)
% on 12 months rolling sales
(5,6%)
(4,5%)
(5,2%)
-1,1 pp
-0,4 pp
Net Working Capital
21,6
12,6
17,4
9,0
4,2
% on 12 months rolling sales
5,4%
3,2%
4,3%
+2,2 pp
+1,1 pp
Trade Receivables
% on 12 months rolling sales
Inventory
- NOWC as
percentage of
revenues increase.
% on 12 months rolling sales
Net Operating Working Capital
6
Sep ‘14 Consolidated Balance Sheet
€M
Sep ‘14
Sep ‘13
Net operating fixed
assets
248,9
250,0
Net Debt
Trade receivables
85,4
78,3
Inventories
57,5
58,2
Trade payables
(98,8)
(98,3)
Short term assets &
liabilities
(22,6)
(20,7)
Net Working Capital
21,6
17,4
Net financial assets
16,9
16,1
Net Capital Employed
287,5
283,5
7
Sep ‘14
Sep ‘13
2,7
13,9
Group Equity
257,4
243,7
Minorities
27,5
25,9
Shareholders’
Equity
284,9
269,6
Total Sources
287,5
283,5
Consolidated Cash Flow as of 9M
€M
Net Debt beginning of period
EBITDA (A)
Taxes paid in the period (B)
Change in provisions (C )
Change in working capital (D1)
Adeo effect (D2)
Investment activities (E)
Operating Cash Flow (A+B+C+D1+D2+E =F)
Equity investment (G)
Changes in net equity and financial activities (H)
Cash Flow for the period (F+G+H) reported
Net Debt end of period
Adeo blocked receivables (I)
Cash Flow for the period rectified (F+G+H+I)
Q3 '14
6,0
14,7
(2,3)
(0,2)
(7,0)
(2,9)
2,2
(0,3)
1,4
3,4
2,7
3,4
Q3'13
20,0
11,6
(5,4)
0,4
2,0
0,9
(1,9)
7,6
(1,5)
6,0
13,9
(0,9)
5,1
9M ‘14 Cash flow includes the acquisition of the UK distributor in ICC&R.
8
9M ’14 9M ‘13
7,0
17,3
32,2
28,4
(4,2)
(5,9)
(0,1)
0,5
(11,6)
0,2
(11,5)
(7,6)
(5,2)
8,8
6,6
(3,9)
(0,5)
(3,2)
4,3
3,4
2,7
13,9
11,5
4,3
14,9
Net Debt Breakdown as of September ’14
€M
Net financial position
Sep ‘14
Dec ‘13
Sep ‘13
(2,7)
(7,0)
(13,9)
2,3
(3,9)
(9,8)
(4,9)
(3,1)
(4,1)
of which:
- positions with bank and other financial
payables
- fair value of derivative financial
instruments and options/payables for
investments
9
Important information
RC Group (ICC&R) acquires Aircotech
RC Group (DeLclima), a leading manufacturer with more than 50 years of experience and
leadership in IT cooling and air-conditioning solutions, acquires Aircotech, that has been RC
Group's exclusive distributor in Belgium, France and Luxembourg for many years.
Aircotech promotes RC Group solutions in offices, hotels, hospitals, and retail buildings, as well
as in datacenters, telecommunications and process cooling projects. Its success is based on the
capability to offer full support to its customers, from the design stage, helping to identify the best
energy saving solutions, to sales, commissioning, service and maintenance.
The acquisition of Aircotech is consistent with RC Group's strategy to develop a more
aggressive and dynamic approach to export sales, by investing in existing partnerships and
progressively acquiring its strongest distributors. This approach reflects DeLclima's strategy to
strengthen its operating companies by establishing their direct presence in all core markets.
This acquisition, by strengthening RC Group's presence in a key area particularly relevant for IT
applications, enables RC Group to further improve its market share and margins.
10
Important information
Dividend policy
DeLclima aims at granting a stable and significant dividend payment stream for its
shareholders while providing increased long term value for their investment .
In the absence of exceptional events, the Board of Directors will propose to the yearly
Shareholders’ Meeting the distribution as a dividend of between 30.0% and 50.0% of
Annual Profits, which is compatible
with
ensuring growth potential also through
external lines, maintaining an appropriate and safe debt ratio.
11
Relevant Projects Q3 ‘14 - CLIMAVENETA
Application: Process cooling - Automotive
End user name: Volkswagen
Plant type: Hydronic System
Total installed Cooling capacity: 4.180kW
VOLKSWAGEN
EMDEN
GERMANY
Installed equipment:
4x TECS2-W/H 1053
Volkswagen aims to achieve a CO2-neutral status for its production
processes by implementing a multitude of projects on environmental protection
and sustainability. Emden production plant is an example of this commitment,
with 400.000 m2 "energy forest“ planted across a previously unused area of
the plant and a 3000 m2 photovoltaic plant on the roof of Hall 10 generating
350 megawatt hours of power every year. To achieve this quite ambitious
sustainability target, four DeLclima high efficiency TECS2-W/H 1053 chillers
have been installed to provide controlled process in the new bodywork
production plant with the highest efficiency.
Volkswagen has been using Climaveneta equipment in several of its plants
across the world, for superior efficiency and reliability in their operations.
TECS2-W
High efficiency water
source chiller
12
Relevant Projects Q3 ‘14 - CLIMAVENETA
Application: Comfort - Mixed-Use Development
End user name: Bloomberg
Plant type: Hydronic System
Total installed Cooling capacity: 7.796 kW
BLOOMBERG PLACE
LONDON
GREAT BRITAIN
Installed equipment:
4x TECS2-W 1954
The Bloomberg Place will include some retail units at ground floor level,
and a new entrance to the London Underground, Bank Station. Bloomberg
Place London will also host a permanent public exhibition of the Temple of
Mithras which was originally uncovered in Walbrook in the 1950s. The
construction project will be developed in three steps. The first one includes
the North Building where four DeLclima TECS2-W/LC 1954 units have
just been installed, the second one will complete the North Building with
the installation of four TECS2/XL-CA 0552 units expected in March 2015,
and the last one is dedicated to the erection of the South Building, where
three TECS2/XL-CA 1054 units will be delivered in November 2015.
TECS units are the market leader in UK for unrivaled energy efficiency.
TECS2-W
High efficiency water
source chiller
13
Relevant Projects Q3 ‘14 - CLIMAVENETA
Application: Comfort - Offices
End user name: AB Medica
Plant type: Hydronic System
ITALIAN HQ
MILAN ITALY
Total installed Cooling capacity: 1.250kW
Total installed Heating capacity: 1.144kW
AB Medica is a specialised company in the production and marketing of
medical technology, bio-materials, surgical devices and robotic surgery
equipment. Its new Italian headquarters is an iconic building, representing
the value of excellence as well as innovation but is also strongly
contemporary with great attention to the energy efficiency , environment
and to the well being in the workplace. Two DeLclima INTEGRA heat
pumps have been installed, one ERACS2-WQ 3202 S and one ERACS2-Q
1762 XL-CA-E. The plant is managed by ClimaPRO, the innovative plant
room optimisation system designed to minimise overall energy consumption
and to simplify the operation and maintenance of the central heating and
cooling system.
Focus: zero CO2 emissions at site, extensive use of renewable energies
maximum yearly energy efficiency.
.
ERACS2-Q
ClimaPRO
Air cooled multipurpose
Chiller Plant Control with
unit for 4-pipe systems
with screw compressors Active Optimization System
ERACS2-WQ
Water cooled multipurpose
unit for 4-pipe systems with
screw compressors
14
Installed equipment:
1x ERACS2-WQ 3202 S
1x ERACS2-Q 1762 XL-CA-E-S
1x ClimaPRO
Relevant Project Q3 ‘14 – RC GROUP
Application: IT cooling – Data Center
End user name: Engineering, Pont Saint Martin
(Italy)
Pont Saint Martin
ITALY
Plant type: Data Center
Total installed Cooling capacity: 2MW
Installed equipment:
Engineering, founded in 1980, is leader in software and IT
services in Italy. It employs 7300 IT specialist and has 40 sites
distributed in Italy as well as in Belgium, Republic of Serbia, South
America and United States. The Pont Saint Martin Data Center, with
a net surface of 2.700m2, is part of an Italian Network of 5 Data
Centers.
Focus: Precision control of temerature and humidity, high reliability,
Solution: NEXT DX U, TEAM MATE.
NEXT DX U
Direct expansion close
control air conditioners
equipped with scroll
compressors with
downflow air delivery
TEAM MATE
Remote air cooled
condensers
15
nr. 40 x direct expansion close control air
conditioners;
nr. 80 x remote air cooled condensers.
Relevant Project Q3 ‘14 – RC GROUP
Application: IT cooling – Data Center
End user name: SFR, Champlan (France)
Plant type: Data Center
Total installed Cooling capacity: 1MW
Installed equipment:
nr. 12 x direct expansion close control air
conditioners;
Founded in 1987, SFR is the second largest telecommunications
operator in France with 9000 employees, 21 million mobile
customers and nearly 800 shops on the French territory.
nr. 22 x remote air cooled condensers.
Focus: Precise humidity and temperature control, high reliability.
Solution: NEXT DX, TEAM MATE.
NEXT DX
Direct expansion close
control air conditioners
equipped with scroll
compressors with
downflow air delivery
TEAM MATE
Remote air cooled
condensers
16
Relevant Project Q3 ‘14 – RC GROUP
Application: IT cooling – Data Center
End user name: Wind Data Center, Ivrea (Italy)
Plant type: Data Center
Total installed Cooling capacity: 1,5MW
Installed equipment:
Wind is the third leading mobile operator in Italy. Since 2011 it is part of
the VimpelCom Group, one of the largest mobile TLC operator in the
World, offering voice and data service to 220 million mobile customers.
Wind has been using RC Group IT cooling solutions in many sites across
its network of data centers, for their superior efficiency and reliability.
Ivrea Data Center benefits from greener energy efficient operation with
a savings up to 20% in power consumption.
Focus: high energy savings, “A” class energy efficiency, high reliability,
low noise.
Solution: GLIDER EVO CLA.
GLIDER EVO CLA
Packaged air
cooled liquid
chillers in “A” class
energy efficiency
equipped with
screw compressors
and axial fans.
17
nr. 3 x air cooled liquid chillers in “A” class energy
efficiency.
New Products Q3 ‘14 - CLIMAVENETA
FOCS3-W
Chiller, water source
188 – 1.693 kW
High Efficiency
Adaptability
Maximum Compactness
.
18
New Products Q3 ‘14 - CLIMAVENETA
i-KI MTD 0075÷015
Air cooled heat pump only heating
20,4-38,1 KW
Extended Capacity Range
System Efficiency
High Efficiency at partial loads
High Efficiency components
Extensive operating limits
19
New Products Q3 ‘14 - CLIMAVENETA
i-KIR MTD 0075÷015
Air cooled reversible heat pump
15,6-30,5 KW
Extended Capacity Range
System Efficiency
High Efficiency at partial loads
High Efficiency components
Extensive operating limits
20
New Products Q3 ‘14 - CLIMAVENETA
WTA
Autonomous fresh air unit
13,2 – 76,3kW
High Energy Efficiency
Plug & Play Approach
Highly precise
Continuous Regulation
Plant Simplification
21
New products Q3 ’14 – RC GROUP
Close control air conditioners with upflow or downflow air
delivery, equipped with built-in water cooled condenser and
BLDC inverter scroll compressors.
6,3 ÷ 119,0 kW
NEXT EVO INV DW
Over version
NEXT EVO INV DW
Under version
22
New products Q3 ’14 – RC GROUP
Sequencer for liquid chillers, heat pumps and
multifunction unit.
MASTER PLANT
SEQUENCER
23
Exhibitions and Events Q3 ‘14 - CLIMAVENETA
AHR MEXICO
DCD CONVERGED
Sept 23-25, 2014
Mexico City
Sept 23, 2014
Bogotá
DOMOTECNICA
Sept 17-20, 2014
Turin
EXPO FRIO CALOR
Sept 3-5, 2014
Buenos Aires
Domotecnica September 17-20, Turin, Italy
24
Important information
Disclaimer
This document has been prepared in accordance with Italian law and may not be distributed, either directly or indirectly, in any other jurisdiction, in particular Australia, Japan,
Canada or the United States of America or other country in which issue of the securities described in this document and the communication of the same are not permitted without
specific authorization from the relevant authorities. Distribution of this document in any jurisdiction outside of Italy may be subject to specific regulatory requirements and
restrictions. Any person coming into possession of this document should inform themselves of and comply with any such regulatory requirements or restrictions. The securities
referred to in this presentation are to be issued in relation to the demerger described herein and have not been, nor is it intended that they will be, registered pursuant to the United
States Securities Act of 1933. Consequently, they may not be offered or sold, either directly or indirectly, in the United States of America except by special exemption.
No representation or warranty, express or implied, is or will be made in relation to, and no responsibility is or will be accepted by DeLclima S.p.A. and/or by any companies
controlled directly or indirectly DeLclima S.p.A.., nor by any of their respective directors, managers, officials, clerical staff, agents or consultants, as to the accuracy or
completeness of the information contained in this presentation. No part of this presentation constitutes, or shall be taken to constitute, an invitation or inducement to invest in
DeLclima S.p.A. in any jurisdiction in which registration or qualification of such securities is required under applicable law.
Forward-Looking Statements
This document contains certain forward-looking statements relating to DeLclima S.p.A.. These statements are not historical fact and are based on current estimates and
projections made: (i) by the companies party to the demerger concerning future events and, (ii) by third companies not belonging to the DeLclima group; by their nature, are
subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future, and, as such, undue reliance
should not be placed on them. Actual results may differ materially from those expressed in such statements as a result of a variety of factors, such as: volatility of commodity
prices, changes in general economic conditions, economic growth and other changes in business conditions, changes in government regulation (in Italy or abroad), and many
other factors, most of which are outside of the control of the companies party to the demerger.