arques industries ag · op;mising cost and company structures tier one supplier of notable...

1©ARQUESIndustriesAG

ARQUESIndustriesAG

CompanyPresenta;onAugust,2010


COMPANYPRESENTATION‐AGENDA

CompanyProfile

Subsidiaries

1stHalfYear2010

Forecast

FinancialCalendar

1

3

4

5

2


ARQUESIndustriesAGisanequityinvestmentcompanyfocusingontherestructuringofcompaniesintransi;onalsitua;ons.ARQUESdevelopsthesecompanies,mainlyacquiredwithinthecontextofcompanyspin‐offs,tocompe;;veenterpriseswithaposi;veyieldinordertoselltheseaNerwardswithaddedvalue.

PROFILE


2009:STRATEGICGOALSACHIEVED

RiskreducOoninholdingcompanyandsubsidiaries

ConsistentrealignmentofinvestmentporSolio

BestpossibleallocaOonofrestructuringandreorganisaOonmeasures

Consistentcostmanagementandliquiditymanagementwithinthegroupandtheholdingcompany

✔

✔

✔

✔

Halvingholdingcompanycosts

SignificantreducOoninfinancialdebtsbysome125millioneuroto88millioneuro

Saleof13subsidiaries

TurnaroundatGigaset


TRANSACTIONSIN2009

Q1

Q2

Q3

Q4


TRANSACTIONSIN2010

Q1

Q2


ATTRACTIVEINVESTMENTPORTFOLIO

TheAnvisGroupisaprimarydeveloperandmanufacturerofinnova;vefunc;onalsolu;onsforthemo;onalstability,comfortandsafetyofmotorvehicles.

CarlFrohisaleadingmanufacturerofprecisionsteeltubesandcomponentsbuilttocustomerspecifica;ons.

GigasetCommunicaOonsGmbHisaleadingmanufactureroffixed‐linetelephones(par;cularlycordlesstelephones)andvoice‐over‐IPmodels.

Telecommunica;onsTelecommunica;ons

SteelSteel

Automo;veAutomo;ve

* Including broadband, WiMax, home media business

euro millions 2009 2010

Revenues 209

EBITDA positive

ARQUES Shareholding 90 %


Revenues 34

EBITDA Slightly negative



Revenues 556*

EBITDA positive

ARQUES Shareholding 80.2 %


ATTRACTIVEINVESTMENTPORTFOLIO

vanNe[enisamanufacturerofinnova;ve,highqualitycandies.

Oxxynovaproducesliquiddimethylterephthalate(DMT),aninputmaterialusedinpolyesterproduc;on.

ChemistryChemistry

IndustrialProduc;onIndustrialProduc;on

SMElectronicdistributesproductsunderthe"Skymaster"brand,includingsatelliteandantennareceivers(digitalTV),andelectronicaccessories.RetailRetail


Revenues 26

EBITDA Slightly negative


Wanfried‐Druckspecialisesintheproduc;onandprin;ngofhighqualitypackagingandlabels.

PrintPrint


Revenues 56

EBITDA positive



Revenues 56

EBITDA Slightly positive



Revenues 32

EBITDA Slightly positive



Restructuringphase ReadyforExit

CURRENTPORTFOLIOASATAUGUST2010


RESTRUCTURINGSUCCESSAT

Restructuringareas

Compe;;veabilitybusinessareas(products)

Op;misingcoststructure

Realignmentofdistribu;on

Focusoncordlessvoice

euro million 2008 2009 2010 Plan

Revenues 588 556 498

EBITDA (adjusted) -23 33 45-50

EBITDA margin -4% 6% 9%-10%

Workforce (full time equivalent as at 12/31) 2,116 1,787 1,700

MarketleaderwithincreasingshareoftheEuropeanmarketincordlessvoicebusiness(DECTphones)


RESTRUCTURINGSUCCESSAT

Restructuringareas

New,experiencedmanagementappointed

Focusoncorecompetence

Op;misingcostandcompanystructures

Tieronesupplierofnotableautomo;vemanufacturer(e.g.Volkswagen,Renault,Peugeot/Citroen,Daimler,Ford,…)

andindustry

euro million 2008 2009 2010 Plan

Revenues 259 209 222

EBITDA 4 7 13

EBITDA margin 1.5% 3.5% 5.7%

Workforce (full time equivalent as at 12/31) 2,020 1,795 1,790


H12010CONSOLIDATEDINCOMESTATEMENT‐OPERATINGTURNAROUND

CommentsonH12010euro million H12010

H12009 2009 2008

Sales revenues 525 2,361 3,492 5,505

EBITDA

Thereof bargainpurchase

38.2

0

-16.0

9.7

17.7

11.3

111.5

108.4

Depreciation andAmortisation

Impairments losses

-29.1

-7.8

-46.4

-52.2

-79.8

-77.8

-93.3

-133.7

EBIT 1.3 -114.7 -139.8 -115.5

Net result -8.1 -117.0 -153.0 -145.7

EPS (diluted in euro) -0.33 -4.37 -5.51 -5.09

Revenuedecreaseduetoporbolioop;miza;on

EBITDAissubstan;allyhigherthanthecorrespondingyear‐agofigure

Posi;veopera;ngtrendcon;nues

Impairmentlossesofeuro7.8millionindiscon;nuedopera;ons

Deprecia;onandamor;za;onofproperty,plantandequipmentandintangibleassetsamounttoEUR29.1million

EBITisEUR116.0millionbeeerthanthecorrespondingyear‐agofigure


H12010CONSOLIDATEDBALANCESHEET

CashandcashequivalentsamounttoEUR69million,ascomparedtoEUR61millionatMarch31,2010

Equityra;oholdssteadybetween18%and19%

Liabili;esrepaidaccordingtoplan

CommentsonH12010euro million 30.6.2010 31.12.2009 31.12.2008

Long-term assets 235 256 476

Short-term assets 374 402 1.243

Cash and cashequivalents 69 75 142

Total assets 609 658 1.719

euro million 30.6.2010 31.12.2009 31.12.2008

Equity 115 121 266

Equity ratio 18.9% 18.5% 15.5%

Long-term liabilities 125 140 317

Short-term liabilities 369 396 1.136


BUSINESSOBJECTIVES2010

TurnaroundofARQUESandsecuringsufficientfinancialliquidity

IncreasingM&Aac;vi;eswithregardofaappropriatechancetorisksitua;on

Sustainableandvalue‐addedfurtherdevelopmentofsubsidiaries

SolvingconflictwithSiemens


FORECAST2010

Reachingposi;veEBITDAsatallsubsidiaries

Securingliquidityandposi;veorganisa;onofARQUESIndustriesAG‘scashflow

Aholdingcompanyalmostfreeofdebtbytheendoftheyear

M&A:1‐2acquisi;onsandexits


MichaelHü[enMemberoftheExecuOveBoard

MemberoftheExecu;veBoardsince07/2009 Departments:opera;ons,subsidiarycontrolling,

acquisi;ons,exits Extensiveexperienceinthemanagement,

restructuringandreorganisa;onofindustrialenterprises

Memberoftheexecu;veboardandmanagingdirectorofwell‐knownenterprises(e.g.Klöckner&Co.AG,MetroCash&Carry,BombardierTransporta;on)

Graduateinbusinessadministra;on,Universi;esofMainzandCologne

HansGisbertUlmkeChairmanoftheExecuOveBoard

MemberoftheExecu;veBoardsince02/2009,ChairmanoftheExecu;veBoardsince08/2009

Departments:finances,humanresources,legal,corporatecommunica;on

Extensiveexperienceinfinancialareasinbanksandindustrialenterprises

Fullyauthorisedrepresenta;veandmanagingdirectorofwell‐knownenterprises(e.g.VIAG,Schmalbach‐Lubeca,E.ON)

B.Sc.inbusinesssciences,M.A.EnglishandFrench,UniversityofManchester

EXECUTIVEBOARD


PROMISINGBUSINESSMODEL

0

Profitability

Time

A.Trade‐Sale,CashCow,IPO

B. Restructuring:IncreaseinValue

A. Acquisi;on:Lowpurchaseprice–lowrisk

Phases of Added Value

Companyspin‐offsandcompaniesinneedofreorganisa;on

Revenueseuro50–500million

Acquisi;onbelownetassetvalue

Addedvaluepoten;al

Balancedopportuni;es/risksra;o

Acquisition Criteria

Stableporbolioof8–12subsidiaries

Flexibleholding;me(opportunis;csales)

Sustainabledevelopmentofsubsidiaries

PorSolio


ARQUESIndustriesAGInvestorRela;onsHubertWiedemannArnulfstraße37‐3980636Munich,GermanyPhone:+49(0)89–255500‐330Fax:+49(0)89–255500‐[email protected]

FINANCIALCALENDER&CONTACT

QuarterlyReportQ2/2010

AnnualGeneralMee;ng2010

QuarterlyReportQ3/2010

GermanEquityForum

August19,2010

August26,2010

November18,2010

November22–24,2010

DateInforma;on


Thisdocumentcontainsfuture‐orientedstatementsandinforma;on,i.e.statementsregardingincidentsinthefutureandnotinthe

past.Thesefuture‐orientedstatementsarerecognizablebyformula;onssuchas"expect","intend","an;cipate","propose","plan",

"believe","strive","es;mate","become"orsimilarterms.Suchprognos;cstatementsarebasedonourcurrentexpecta;onsand

certainassump;ons.Theythereforecontainvariousrisksanduncertain;es.Thebusinessac;vi;es,thesuccess,thebusinessstrategy

andtheresultsofARQUESareaffectedbynumerousfactors,manyofwhichareoutsideofARQUES’sphereofinfluence.Thesefactors

maycausetheactualresults,successandachievementsoftheARQUESGrouptosubstan;allydeviatefromtheinforma;onregarding

results,successesorachievementsexplicitlyorimplicitlycontainedinthefuture‐orientedstatements.Suchuncertain;esresultin

par;cular,andamongothers,duetothefollowingfactors:changesinthegeneraleconomicandbusinesssitua;on(including

developmentsregardingmarginswithinthemostimportantbusinessareas),challengesregardingtheintegra;onofimportant

acquisi;onsandtheimplementa;onofjointventuresandotheressen;alporboliomeasures,changesinexchangeratesandinterest

rates,theintroduc;onofcompe;;veproductsortechnologiesbyotherenterprises,thelackofacceptanceofnewproductsand

servicesonthepartofthecustomertargetgroupsoftheARQUESGroup,changesinthebusinessstrategy,theoutcomeofpending

enquiriesandpendinglegaldisputes.Shouldsomeorseveraloftheserisksoruncertain;esoccur,orshouldtheunderlying

assump;onsprovetobeincorrect,theactualresultscansubstan;allydeviatebothposi;velyandnega;velyfromtheresults

expected,intended,planned,believed,projected,an;cipatedores;matedinthefuture‐orientedstatements.ARQUESassumesno

obliga;onandalsodoesnotintendtoupdatethesefuture‐orientedstatementsortocorrecttheseshouldthedevelopmentnotbeas

expected.

DISCLAIMER

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