Presentation is loading. Please wait.

Presentation is loading. Please wait.

Presentation of 2007 Annual Results Neways Electronics International N.V. 26 February 2008.

Similar presentations


Presentation on theme: "Presentation of 2007 Annual Results Neways Electronics International N.V. 26 February 2008."— Presentation transcript:

1 Presentation of 2007 Annual Results Neways Electronics International N.V. 26 February 2008

2 Highlights 2007 * Turnover and profit to record level Almost entirely organic growth of turnover of 18% to EUR 281,0 million Increased demand from all market segments Net profit increased by 30% to EUR 14,5 million Very well-filled order portfolio of EUR 74,8 million * Operational margin improved from 7,0% to 7,5%, well above the minimum margin target of 7% a year * Financial position further strengthened Solvency ratio increased to 43,9% Positive net cash flow Decrease of Debt / Ebitda to 0,5 2007 exceptionally good year!

3 Key figures 2007 * Net profit per share based on total number outstanding shares per ultimo period

4 Positioning of Neways Market: - Core market 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 the customers (Netherlands / Germany) - High added value / expertise and service - Low production cost (Eastern europe, China)

5 Products Neways

6

7

8

9 MarketingR&DSalesS&R Systems From capacity to knowledge supplier

10 ABCD Service providers Suppliers Customers C.P. T.R. ERP etc. Less flexibility / added value Eastern Europe China Business Model Neways Western Europe

11 Compentences

12 Development turnover and backlog +18% +14% Net turnover (EUR m) Orderportfolio (EUR m) per ultimo 73,1 65,9 239 208 - More orders at existing customers; more new customers (a.o. ThyssenKrupp) -Contribution in turnover by one-stop-provider projects still relatively limited, but strong growing; higher part in turnover of knowledge-intensive activities (development, engineering and system assembly) -Increased order entry in most market segments 190 51,9 281 +2% 74,8

13 Segmentation of turnover Substantial growth in defence sector due to Hägglunds project and new orders

14 Development of result +26% Operating result (EUR m)Net result (EUR m) 16,7 9,0 11,2 +30% 5,1 9,8 4,7 21,014,5

15 Development operating margin Improved capacity utilisation Improved purchase conditions Increase of development and engineering activities / prototyping, a.o. start-up Hägglunds-project One-stop-providership / internal cooperation, increased intercompany deliveries More outsourcing to Slovakia / China Higher efficiency Changed productmix

16 Potential improvements Operating margin Supplier reduction / preferred suppliership Extension of component purchase in China 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 / intensifying of internal cooperation Growth in defence-orders → higher added value and more stability in turnover

17 41,0% Balance sheet Strong increase in equity Increase in the balance sheet total (+13%) caused by higher activity level (increased working capital / higher investment level) Solvency adjusted for deferred tax and goodwill 42,8% (ultimo 2006 : 39,6%) Solvency ratio* 40,0% * guaranteed equity / total equity 30,3% 43,9%

18 Working capital Inventory Increase of order related inventory by higher order entry Decrease in days of turnover caused by development of a relatively high number of new products and increase of one-stop- provider projects

19 Cash flow Net cash flow (EUR m) Excellent result Increase of working capital Higher investment level 11,5 4,6 -7,5 4,0

20 (Bank)debts EUR mln 9,1 12,6 10,7 11,4 5,7 3,4 12,9 38,7 23,6 18,5 19,5 9,7 8,29,6

21 Financial strength Interest coverage well over minimum target of 1,5 Debt /EBITDA on a sound level far below maximum target of 3 More than sufficient flexibility for further financing of growth Interest coverage Debt/EBITDA 6.7 9.9 12.1 1.6 0.7 0.5 5.4 2.4

22 Human resources Average number of employees Eastern Europe and China Western Europe * Knowledge component more and more import Higher need for high-educated employees; increasing number of designers / engineers Outsourcing important part of the business model Approx 40% of total number of employees in Eastern Europe and Asia 1836 1851 2097 2247 * of which hired 122 128 212 306

23 Data per share E UR 200720062005 Operating result2,261,811,06 Net result1,561,210,59 Dividend0,470,360,10 Shareholders’ equity5,264,082,78 Number of outstanding shares (x 1.000 ultimo)9.2999.2028.526

24 EMS – market trends International development / increase in outsourcing by OEMs 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 and China) Increasing transparency 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)

25 Strategy Realization of organic growth, supplemented by suitable acquisitions Expansion of one-stop-provider concept / increase in added value –Strengthening of development side and systems assembly –Expansion of Electronic Mechanical Repair (EMR) activities More balanced spread of activities over market segments –Medical sector –Defence market Improvements in efficiency –Supplier reduction (preferred suppliers) / closer cooperation / better purchase conditions –More outsourcing of production to Eastern Europe and China (own facilities) –Ongoing new cost control initiatives

26 Outlook 2008 Sound starting position: Order portfolio +14% compared to ultimo 2006 and +2% compared to ultimo June 2007 Due in part to the current uncertain economic climate, 2008 will be a challenging year


Download ppt "Presentation of 2007 Annual Results Neways Electronics International N.V. 26 February 2008."

Similar presentations


Ads by Google