| |June 2017Roadshow Presentation 2
AGENDA
� Company description & Positioning of the Zumtobel Group
� Growth drivers & Lighting market dynamics
� Corporate Strategy & Financial targets
� Annual Financial Results 2016/17
| |June 2017Roadshow Presentation 3
Timeline: from family firm to global lighting group
The company becomes a stock corporation
Dr. Walter Zumtobel establishes“Elektrogeräte and Kunstharz-presswerk W. Zumtobel KG” in Dornbirn, Austria
1950 1963 1976 1991 1993/94 2000 2001 2003 2006 2014 2015 2017
Acquisition of luminairemanufacturer Staff , based in Germany
Jürg Zumtobel becomesChairman of theSupervisory Board
Acquisition ofacdc lighting, UK
LED share ofrevenues morethan 70%
1928
Jules Thorn founds the“Electric Lamp Service Company”
First international design award for a Zumtobel product Zumtobel Licht GmbH and
Tridonic Bauelemente GmbH become independentsubgroups
Acquisition of ThornLighting Group, UK
Onset of LED activities
Initial publicoffering (IPO)
CEO Ulrich Schumacher introduces a neworganisational structure
Launch of Zumtobel Group Services (ZGS)
| |June 2017Roadshow Presentation 4
The Zumtobel Group A global player in the lighting industry
Strong market position
• Focus on general lighting
• Luminaires and lighting solutions: European market leader
• Lighting components: one of the world‘s leading producers
Strong brands
• Thorn / Zumtobel / acdc: complementary portfolios for the global luminaire/lighting solutions business
• Tridonic : in-house expertise around innovative lighting components and systems
• Zumtobel Group Services (ZGS): specialist for project and software oriented services
• Reiss : OEM supplier of moisture-proof luminaires and luminaires with higher protection
| |June 2017Roadshow Presentation 5
The Zumtobel Group A global player in the lighting industry
Solid financials
• Revenues: €1,303,9 million, including
• Luminaires & lighting solutions : €999.9 m
• Components* : €377.3 m
• LED share of Group revenues : over 73%
• Adjusted EBIT: €72.4 m
as a % of revenues = 5.9%
• Investments: €45.2 m
• Equity ratio: 32.8%
Innovation leadership
• R&D expenditure: €82.4 million (6.3% of revenues)
• 602 R&D employees worldwide
• Comprehensive patent portfolio:
161 new patent applications in 2016/17
Global presence
• Sales offices and partners in around 90 countries
• 6,562 employees worldwide, including 1,958 in sales*
• Global production network with 13 plants
* Group Financial Statement FY 2016/17 (01 May 2016 – 30 April 2017)
| |June 2017Roadshow Presentation 6
The Zumtobel Group covers a major part of the value chainStrong brands with broad market access
LED modules LED driversSensors,
controls-, hard-& software
Luminaires
Lighting management
(user-interface & apps)
Lighting solutions
Services
| |June 2017Roadshow Presentation 7
Thorn – the performance brand for international volume business
• Quality supplier delivering optimum cost-benefit solutions = value for money.
• Luminaires with excellent functionality and proven technology, easy to install and use
• Comprehensive portfolio of indoor and outdoor lighting (applications include offices, retail, industry, schools, roads, tunnels, sports facilities)
• Target groups : electricians and electrical consultants, wholesalers and contractors, businesses and municipalities
• Strongest market presence : UK & Ireland, Scandinavia, France, Australia & New Zealand, Hong Kong
• Strongest growth potential : D-A-CH region, Middle East, China
Allianz Riviera stadium (Euro 2016) Nice, FR
Office lightingAutomarocchi Transport, Itally
Toven TunnelNordland, Norway
Emilia SchoolSweden
| |June 2017Roadshow Presentation 8
Tridonic – the electronic heart of intelligent, connected lighting
• Tridonic is the Group-wide specialist in innovative lighting components and systems
• Product portfolio : LED modules, LED drivers, electronic control gear, sensors, lighting control & management, software solutions
• Complete solutions for lighting operation and control
• New business potential in IoT – the Internet of Things: communication, data management and additional services via the lighting infrastructure
• Target group : OEM supplier to luminaire manufacturers worldwide, wholesalers
• Revenues : around 20% from Zumtobel and Thorn; around 80% from competitors
connecDIM
Intelligent lighting managementsolution for > 250 DALI devices
Configured via the cloud
Accessible online – any time, anywhere
connecDIM
Intelligent lighting managementsolution for > 250 DALI devices
Configured via the cloud
Accessible online – any time, anywhere
ready2mains
Luminaires can be digitally dimmed via the existing mains system.
An efficient solution for retrofitting existing installations
ready2mains
Luminaires can be digitally dimmed via the existing mains system.
An efficient solution for retrofitting existing installations
| |June 2017Roadshow Presentation 9
Zumtobel – the premium brand for architectural lighting
• Integrated lighting solutions including lighting management – with the focus on project business
• Outstanding design , innovative technology and comprehensive applications expertise
• Working in close collaboration with leading international architects, lighting designers and artists
• Portfolio covers all applications in and around buildings; currently expanding into the outdoor and residential sectors
• Target groups : lighting designers and electrical consultants, architects, electricians, major businesses, private and public investors
• Strongest market presence : Austria, Switzerland, UK & Ireland, Benelux and Italy
• Strongest growth potential : Germany, USA, Middle East, Asia
St. Martin TowerFrankfurt am Main, Germany
Issey Miyake ShopAntwerp, Belgium
Bridge SägerbrückeDornbirn, Austria
Audi production lightingGyör, Hungary
| |June 2017Roadshow Presentation 10
acdc – the innovative, dynamic brand for high-end LED projects
• Supplier of LED luminaires – specialising in façade lighting and lighting solutions for hotels and restaurants
• Creative, dynamic architectural lighting for high-prestige settings; specialist in colour change and dynamic lighting
• Established in the UK in 2001, acquired by the Zumtobel Group in 2015: the ideal addition to the Group’s brand and product portfolio, for the project business in particular
• Outstanding client relationships with lighting designers, architects and interior designers
• Strongest market presence : UK, Middle East;
• Strongest growth potential : international, via the Zumtobel Group sales organisation
Knightsbridge Estate London, UK
Serpentine PavilionLondon, UK
The Regent Bridge Edinburgh, UK
Porsche BraevernBellevue, USA
| |June 2017Roadshow Presentation 11
REISS – when lighting gets tough
• Group-wide expert for heavy industrial, hazardous and extreme lighting
• Lighting solutions that increase levels of safety, reliability and connectivity in places where it makes a real difference
• Target group
• Architects, lighting designers, engineering consultants and end customers, for REISS branded luminaires
• Lighting manufacturers throughout the world, for private label luminaires and components
• Strongest market presence : Middle East, Northern Europe, Central Europe
• Strongest growth potential : Eastern Europe, Southern Europe, D-A-CH region
| |June 2017Roadshow Presentation 12
Zumtobel Group Services (ZGS) – Specialist services tailored to you
• Zumtobel Group Services is the specialist forproject and software oriented services
• Bundles all services of the Zumtobel Group withinone business unit
• We act as a partner during every stage of a projectfrom planning till commissioning and maintenance
• Most comprehensive and specialisedknowledge of turnkey solutions incl. financeservices, controls and connectivity, data collection and analysis, software development, emergency lighting and technical & maintenance services
• Market entry: March 2017
| |June 2017Roadshow Presentation 13
Zumtobel Group Services (ZGS) – service portfolio
Connectivity SystemsOur connectivity systems range from lighting management to the intelligent use of existing infrastructures for new databased analysis.
Finance ServicesLease light, save money. The NOW service allows you to access the best lighting systems from Zumtobel Group with minimal capital outlay upfront.
Data-based ServicesOur experts help you gain better insights into the customers needs and create new value propositions and business models through the Internet of Things.
Turnkey ServicesWe manage the complete process, frominitial on site visits and planning to project management, installation and commissioning – including financing and maintenance if desired.
Technical & Maintenance ServicesOur specialist maintenance services team offers efficient, reliable support –from extended warranties to complete life cycle management.
Emergency Lighting Systems Our emergency lighting systems incl. central battery systems and maintenance contracts offer a reliable, long-living solution for every type of building.
| |June 2017Roadshow Presentation 14
Leading shares in European markets Market share analysis for Lighting Segment
Regional revenue distribution*
D/A/CH
28.2%
Northern Europe
26.1%
Benelux & Eastern Europe
15.3%
Middle East & Africa
7.4%
America 3.4%
Asia & Pacific
Southern Europe
1
1
1
2
2
2
3
4
Market Share Rank
7%
7%
10%
9%
9%
17%
21%
29%
Italy
Germany
CEE*
Benelux
France
UK
Switzerland
Austria
29.3%
26.2%
12.7%
14.0%
9.7%
4.7%
* CEE includes PL, CZ, SK, CRO und SI
| |June 2017Roadshow Presentation 15
AGENDA
� Company description & Positioning of the Zumtobel Group
� Growth drivers & Lighting market dynamics
� Corporate Strategy & Financial targets
� Annual Financial Results 2016/17
| |June 2017Roadshow Presentation 16
The professional lighting market is experiencing gr owth throughout 2020
*Global general lighting market excluding Automotive and BacklightingSource: Growth expectation and market size based on BCG and Zumtobel Group market intelligence 2016
Light sources
Residential lighting fixtures
and controls
Professional lighting fixtures, controls and related servicesapprox. EUR 37 billion in 2016
• Total global general lighting market estimated at EUR 70-80 billion
• Zumtobel Group is focused in the market for professional lighting fixtures and controls (exception: Tridonic LED modules)
• Global market size for professional lighting fixtures and controls andrelated services is estimated at approx. EUR 37 billion in 2016
���� This market (professional lighting fixtures & contr ols & services) is estimated to grow globally by 3-4% from 2015 to 2020
| |June 2017Roadshow Presenation 17
Asia is the fastest growing market, driven by high LEDizationRegional development of global lighting market:
• In Europe and Americas modest growth expected
• Asia is strengthening its position as the largest regional market
� The Asian market is vital for global players’ growt h
� Competitive players (local and international) incre asingly
developing in Asia, leading to cost pressure global ly
2016
37
2012
32
ASIA
AMERICAS
EUROPE
2020
44
AUS+NZ
22
11
10
17
10
9
1
14
AFRICA
9
8
1
2-3%
2-3%
Ʃ 3-4%
CAGR 2012 - 20
5%
3%
6%
11 1
1
Source: Zumtobel Group Market Research (based on BCG and McKinsey reports) & Investor Relations
Professional Lighting Fixtures & Controls Market in EUR bn
| |June 2017Roadshow Presentation 18
AGENDA
� Company description & Positioning of the Zumtobel Group
� Growth drivers & Lighting market dynamics
� Corporate Strategy & Financial targets�
� Annual Financial Results 2016/17
| |June 2017Roadshow Presentation 19
Key trends
• Global professional lighting market is expected to grow by 3-4% through 2020
• Cost pressure globally expected due to increasingly competitive players, e.g., from the cost-sensitive Asian markets
• By 2020, at least 80% of professional luminaires sold will be LED
• By 2020, 25% of professional luminaires sold will be part of a connected lighting system
• The growth of professional connected-lighting systems will create new opportunities for high-end professional services
Major developments through 2020
Competitive cost base
Continuous work on the cost base is required to stay competitive
Speed
Strong need to substantially reduce the time from product idea to concrete offering (“time to market”)
Innovation
Innovation is a key driver to stay ahead of commoditization
Connectivity and Services
Connected lighting systems and services increasingly become game changer in the industry
What it takes to stay competitive …
| |June 2017Roadshow Presentaition 20
Corporate strategy : 3 phases for profitable growth
�Merge the sales organizations of Zumtobel and Thorn
�Reduce excess capacity in manufacturing
�Exit outdated technologies
�Establish group-wide purchasing organization
� Introduce a platform strategy
�Strengthen the technology position
Develop new business modelsfor smart lighting
Focus starting in FY 2014/15 Focus starting in FY 2016/17
Provide initial growth impetus& improve profitability
�Optimize the sales organization
�Create growth through systematic multi-brand sales approach
�Develop a competitive global production network
�Establish and expand technology partnerships
�Make initial acquisitions of complementary companies
Focus starting in FY 2015/16
�
��
�Completed In progress
�Create new offerings in the field of smart connected lighting
�Further development a full service provider
� Increase M&A activity for strategic
development of the global brand
portfolio
Initial Phase
Strategic redirectionand restructuring
| |June 2017Roadshow Presentation 21
Strategic focus topics
1 Multi-brand strategy / Sales channels aligned with customer target groups
2 Global, competitive production network
3 Expansion of service business including databased services (IoT)
4 Efficient, lean corporate structures
| |June 2017Roadshow Presentation 22
Success factor multibrand projectsGreater customer satisfaction and larger-volume projects
1
WILKO storesUnited Kingdom
LED lighting solution from the Thorn and Zumtobel brands with Tridonic components
Total volume: EUR 22 million
AUTOHAUS GRAFWagram, Austria
Thorn for outdoor areas and warehouse
Zumtobel for showroom and offices
Focus on LED lighting solutions
ACADEMIC HOSPITALMARIA MIDDELARESGhent, Belgium
Thorn for offices, treatment rooms and corridors
Zumtobel for recreation rooms, underground car park and corridors
Total volume: EUR 1.28 million
THE GREEN LINE KACEROVOFFICEPrague, Czech Republic
Thorn for offices
Zumtobel for entrance hall, conference rooms, restaurant, emergency lighting
Green Building certification: Gold-LEED
| |June 2017Roadshow Presetnation 23
Clear customer focus through 4-channel sales1
SPECIFICATION
END USER
TRADE
OEM
acdc Specialising in: Hospitality, Facade & Amenity
Thorn
Zumtobel
Reiss Specialising in luminaires with higher protection
acdc Specialising in: Hospitality, Facade & Amenity
Thorn
Zumtobel
Thorn Smaller projects (“soft spec“)
Thorn/Thorn Eco Stock business with wholesalers (“over the counter“)
Zumtobel Smaller projects (“soft spec“)
Tridonic
Architects, lighting designers, electrical consultants
Key accountsmainly from retail and industry
Municipal specifiers particularly for road lighting
Electricians
Wholesalers
Luminaire manufacturers worldwide
ZGS
ZGS
ZGS
| |June 2017Roadshow Presentation 24
Globally, competitive production network2
Restructuring measures
2013• Closure of Fürstenfeld, AUT• Closure of Melbourne, AUS
2014• Closure of Tianjin, CN• Closure of Landskrona, SWE• Closure of Ennenda, CH• Sale of connection technology business,
Innsbruck, AUT
2015• Sale of magnetics business, Auckland, NZL• Restructuring of Lemgo, GER
2016• Closure of Usingen
2017• Expected Disposal of Les Andelys, F• Construction of new lplant in Serbia
Key
Luminaire plantComponents plant
Production volume> €100 million
Production volume> €50 million
Production volume< €50 million
SpennymoorUK
Barrowford (acdc)UK
Les AndelysFRHighland
USA
DornbirnAUT
JennersdorfAUT
SydneyAUS
ShenzhenCN
LemgoGER
NisSERBIA
AucklandNZL
GuanghzouCN
| |June 2017Roadshow Presentation 25
Expansion of service business including databased s ervices (IoT)Zumtobel Group focuses on new markets
3
• Growth potential in the area of comprehensive solutionsand services
• In light of the increasing complexity, customers want a single partner who can offer a wide range of services.
• By establishing the new Zumtobel Group Services (ZGS) brand the Zumtobel Group reacts on the changed customerneeds, positioning itself as an innovative and software-oriented full-service provider in the lighting industry.
• New possibilities and development of new business modelsin the field of connected lighting: Lighting infrastructure as a fundament for IoT based service business.
| |June 2017Roadshow Presentation 26
Establishing innovative business models in the Inter net of Things3
LED World
Many different opportunities for new business models
• Lighting already installed in all buildings: ideal basis for new services
• Additional customer benefits through:- energy savings- reduced complexity- added value through data
management
Many different opportunities for new business models
• Lighting already installed in all buildings: ideal basis for new services
• Additional customer benefits through:- energy savings- reduced complexity- added value through data
management
Connected lighting
| |June 2017Roadshow Presentation 27
Three core application areas for smart, connected lighting3
Connected Commerce Connected Building Connected City
Indoor NavigationEasily guide user to selected area via the user’s mobile device
People TrackingTrack customer shopping behaviour and presence in-store
Remote MonitoringMonitor the performance of the lighting infrastructure
Space ManagementTrack building user behaviour and presence in building
Dynamic LightingOptimised street lighting in line with traffic and weather conditions
Advanced ParkingLighing infrastructure used to guide drivers to free parking spaces
| |June 2017Roadshow Presentation 28
Success factor service businessZumtobel Group Services reference projects
3
1 2 3 4
5 6 7
1 33 4
676
1 2
5
1 Financing model NOW: Faigle Kunststoffe, Hard, Austria
2 Financing model NOW: FARO Foundation, Windisch,
Switzerland
3 Financing model NOW: Delhaize, Denderleeuw, Belgium
4 Financing model NOW: SAPA, Nenzing, Austria
5 Turnkey Services (planning, installation, maintena nce,
warranty): Retail chain Wilko, Great Britain
6 Connected lighting with data-based software services:
Meeting rooms Land Securities Group, Great Britain
| |June 2017Roadshow Presentation 29
Efficient structures: Clearly defined brand profiles, maximum synergies
4
Lighting Segment Components Segment
Zumtobel Group*
Global Sales / 7 regions Global Sales / 7 regions
Global production network / 13 plants
Group Purchasing
Global R&D
Corporate Functions
Thorn
Product portfolioMarketing
Tridonic
Product portfolioMarketing, Logistics
Special Purpose Products*
Product portfolio Marketing
Zumtobel
Product portfolioMarketing
acdc
Product portfolioMarketing
Zumtobel Group Services
Product portfolio Marketing
• The core competency of the brands is the definition and marketing of their product and service portfolio• All new products are signed off by a Steering Committee in order to avoid overlaps
• Sales in the Lighting Segment are cross-brand and structured by region , offering the optimum portfolio from all brands.
• Cost and synergy effects are leveraged by Group-wide functions
*simplified illustration
| |June 2017Roadshow Presentation 30
Medium term EBIT margin target: 8-10%Further increase in profitability driven by additional efficiency improvements
SG&A
EBIT adj. margin 2016/17
Categories & Measures
• New plant in Serbia• Harvesting full benefits from previous footprint measures• Platform approach (standardisation & modularisation)
• Further increasing sales efficiency – operating leverage by top-line growth
Targeted margin impact
R&D • R&D spending (through P&L) as % of sales will remain at similar level
+ 2.0%
+ 1.5%
8 -10%
5.6%
Costs of Goods sold
EBIT margin medium term target
EBIT margin medium term target assuming sales growth CAGR of 3-5% p.a (fx adjusted).
| |June 2017Roadshow Presentation 31
Medium term organic growth target: approx. 3-5% p.a . (fx adjusted)
2016/17 2019/20
~ 3-5 %
EUR 1,304 m
approx. EUR 1,550 m
CAGR
• Construction activity in Europe is improving
• Market share gains through
− Multi-brand & multi channel sales approach
− Closing of product portfolio gaps
− Expansion of service business
including databased services (IoT)
| |June 2017Roadshow Presentation 32
Key takeaways
European Recovery Story
Uniquely positioned
Digitalisation & Connectivity
Restructuring Story
Management Incentivisation
EBIT margin target of 8-10%
Cycle bottom in European constructions is touched
A global player with a leading position in the fragmented professional lighting and componentsmarket. We leverage our multi-brand portfolio to create unique value for our customer.
New business opportunities created by the uptake of connected lighting
Complete reset of the Group’s strategy and structure to realise maximum synergies between all brands and functions. Ongoing extensive restructuring & transformation program.
Share price development is key performance indicator.
Mid-term EBIT margin target of 8-10% provides significant upside potential in shareholder value.
| |June 2017Roadshow Presentation 33
AGENDA
� Company description & Positioning of the Zumtobel Group
� Growth drivers & Lighting market dynamics
� Corporate Strategy & Financial targets�
� Annual Financial Results 2016/17
| |23 June 2017Annual Results 2016/17 35
Good progress in many areas in spite of difficult market environmentHighlights FY 2016/17
� Highest adj. EBIT since 2010/11
� Highest Net Income since 2010/11
� Highest Free Cashflow since 2007/08
� Lowest Net Debt since the IPO in 2006
� Launch of Zumtobel Group Services business unit
� Swift execution of cost adjustment measures (e.g.Usingen)
� Disposal process for plant in Les Andelys in a very advanced stage
� Decision for a low cost manufacturing site in Serbia
� Slight decline in Zumtobel Group’s revenue development (Laggards: France, Australia, Switzerland, Middle East)
� Increasing price pressure in the Components Segment
| |23 June 2017Annual Results 2016/17 36
Substantial increase in profitabilityFinancials FY 2016/17 at a glance
� Group revenues fx-adjusted 1.0% below prior year
� Group adj. EBIT increases by 23.4% to EUR 72.4.0 million (PY EUR 58.7 million) driven
by improved cost structure in nearly all functional areas. The main contributions come
from:
� Increase in plant efficiency based on our restructuring measures
� Good ramp-up of newly introduced products with better profitability
� Synergy effects from the central bundling of R&D activities
� Net profit more than doubled from EUR 11.9 million EUR 25.2 million
� Significant positive free cash flow of EUR 69.4 million (PY EUR 49.8million)
� In view of the solid operating development, the Management Board will make a
recommendation calling for an increase in the dividend to EUR 0.23 per share for the
2016/17 financial year (FY 2015/16 EUR 0.20)
| |
-4.9%(fx-adj. -1.4%)
23 June 2017Annual Results 2016/17 37
Adjusted EBIT margin improved from 4.3% to 5.6%Zumtobel Group – Revenue and EBIT development
Q1 Q2 Q3 Q4
Zumtobel Group
3.9%
8.0%
1.8% 3.1%
Q1 Q2 Q3 Q4
342.4325.7
359.5
13.5
6.2%
Adjusted EBIT1)Revenues
Adjusted EBIT 2015/16Adjusted EBIT 2016/17 in EUR million
Adjusted EBIT 2015/16Adjusted EBIT 2016/17as a % of revenues
Revenues 2015/16In EUR million
Revenues 2016/17In EUR million
28.8307.9
5.5
346.6
10.9
32.0
20.1
341.6
9.4%
1) Reported EBIT adjusted for special effects
Revenues FY 2016/17 EUR 1.303,9 million (minus 3.9%) Revenues FY 2015/16 EUR 1,356.5 million
Adjusted EBIT FY 2016/17 EUR 72.4 million (margin of 5.6%)Adjusted EBIT FY 2015/16 EUR 58.7 million (margin of 4.3%)
10.0
3.3%
306.1
-5.0%(fx-adj. -1.6%)
-0.6%(fx-adj. +2.8%)
-4.7%(fx-adj. -3.4%)
330.5
10.4
3.1%
| |23 June 2017Annual Results 2016/17 38
Sound development in Benelux & CEE, Austria, UK, Italy and the USAZumtobel Group – Regional revenue distribution
Q4 2016/17 FY 2016/17
Revenues in EUR million
Change in %Revenues in EUR million
Change in %
nominalFX
adjusted
D/A/CH 93.0 -3.7 381.9 -2.8 -2.7%
Northern Europe 89.1 3.9 341.4 -4.3 6.7%
Benelux & Eastern Europe 40.0 0.9 165.7 7.8 8.8%
Southern Europe 45.0 -11.8 183.0 -4.7 -4.7%
Asia & Pacific 32.7 -5.7 127.0 -9,3 -10.2%
Middle East & Africa 16.9 -35.8 61.2 -24.2 -24.8%
America 13.9 9.0 43.7 8.7 7.3%
Total 330.5 -4.6 1,303.9 -3.9 -1.0%
| |23 June 2017Annual Results 2016/17 39
LED share of group revenues increases to 73.6% (FY 2015/16: 63.4%)Zumtobel Group – LED revenue development
Q1 Q2 Q3 Q4
Zumtobel Group
LED revenues
206.2
LED revenues 2015/16In EUR million
LED revenues 2016/17In EUR million
227.5
201.2225.4
� LED revenues in FY 2016/17 grow by 11.6% to EUR 960.0 million
� LED share of group revenues increases to 73.6% (FY 2015/16: 63.4%)
� Lighting Segment increases sales with LED products by 14.6% to EUR 733.4 million (LED Penetration 73.3%)
� LED sales in Components Segment flat (plus 2.4%) due to sale of signage business (LED Penetration 77.1%)
227.7251.1
230.7
+10.4%
+10.4%+14.7%
250.5
+11.2%
| |
-2.4%(fx-adj. +1.1%)
23 June 2017Annual Results 2016/17 40
Substantial positive effects form restructuring and cost saving measuresLighting Segment – Revenue and EBIT development
Q1 Q2 Q3 Q4
Lighting Segment
4.1%
8.5%
2.2%
3.5%
Q1 Q2 Q3 Q4
254.8 248.7
276.3
10.5
6.3%
Adjusted EBIT1)Revenues
Adjusted EBIT 2015/16Adjusted EBIT 2016/17 in EUR million
Adjusted EBIT 2015/16Adjusted EBIT 2016/17as a % of revenues
Revenues 2015/16In EUR million
Revenues 2016/17In EUR million
23.4231.6
5.1
265.7
9.2
24.1
15.7
266.0
9.1%
1) Reported EBIT adjusted for special effects
Revenues FY 2016/17 EUR 999.9 million (minus 2.8%) Revenues FY 2015/16 EUR 1,028.4 million
Adjusted EBIT FY 2016/17 EUR 53.5 million (margin of 5.3%)Adjusted EBIT FY 2015/16 EUR 48.2 million (margin of 4.7%)
6.6
2.8%
232.4
-3.7%(fx-adj. -0.3%)
+0.3%(fx-adj. +3.6%)
-4.8%(fx-adj. -3.6%)
252.9
7.0
2.8%
| |
-11.1%(fx-adj. -8.2%)
23 June 2017 Annual Results 2016/17 41
Higher profitability despite lower revenuesComponents Segment – Revenue and EBIT development
Q1 Q2 Q3 Q4
Components Segment
9.0%
12.1%
5.9% 6.7%
Q1 Q2 Q3 Q4
109.397.3
106.2
9.8
9.0%
Adjusted EBIT1)Revenues
Adjusted EBIT 2015/16Adjusted EBIT 2016/17 in EUR million
Adjusted EBIT 2015/16Adjusted EBIT 2016/17as a % of revenues
Revenues 2015/16In EUR million
Revenues 2016/17In EUR million
12.996.3
5.7
98.5
6.6
12.793.4
13.6%
1) Reported EBIT adjusted for special effects
Revenues FY 2016/17 EUR 377.3 million (minus 8.1%) Revenues FY 2015/16 EUR 410.4 million
Adjusted EBIT FY 2016/17 EUR 39.6 million (margin of 10.5%)Adjusted EBIT FY 2015/16 EUR 35.0 million (margin of 8.5%)
9.3
10.3%
91.1
-12.0%(fx-adj. -9.3%) -5.4%
(fx-adj. -2.5%)
8.8
-3.1%(fx-adj. -1.8%)
95.5
8.8
9.2%
| |23 June 2017Annual Results 2016/17 42
Simplified illustration to highlight main building blocks of the adj. EBIT developmentZumtobel Group – adj. EBIT FY 2015/16 vs. FY 2016/17
72.4
Adj. EBITFY 2015/16
R&D Adj. EBITFY 2016/17
58.72.3
5.5
Lower revenues and price pressure overcompensated by operations efficiency gains, better mix and material savings
[in EUR million]
5.9
Efficiency gains through group-wide bundling of R&D capacities
SG&A∆ Gross profit (before R&D)
Reduction in SG&A
| |23 June 2017Annual Results 2016/17 43
Substantial higher net profit despite deteriorating financial resultsZumtobel Group – Income statement
in EUR million FY 2016/17 FY 2015/16 Change in %
Revenues 1,303.9 1,356.5 -3.9
Cost of goods sold -786.6 -841.5 -7.0
Gross profit (w/o development) 517.3 515.0 0.4
as a % of revenues 39.7 38.0
R&D -82.4 -87.9 -6.2
SG&A expenses -362.5 -368.5 1.6
Adjusted EBIT 72.4 58.7 23.4
as a % of revenues 5.6 4.3
Special effects -26.6 -34.9 -60.5
EBIT 45.8 23.8 92.2
as a % of revenues 3.5 1.8
Financial results --15.7 -8.2 90.7
Profit before tax 30.1 15.6 93.0
Income taxes -7.6 -3.7 < 100
Result from discontinued operations 2.7 0
Net profit for the period 25.2 11.9 > 100
Earnings per share ( in EUR) 0.58 0.28
Special effects related to adjustments to the global plant network (Usingen; Les Andelys), restructuring of the R&D organisation as well as the Lledólitigation settlement costs
Deteriorating financial result caused by FX volatility (mainly GBP and USD)
This reflects the release of a provision from the discontinuation of the event lighting business (Space Cannon VH SRL) in the second quarter of 2010/11.
| |23 June 2017Annual Results 2016/17 44
Significant positive Free cash flowZumtobel Group – Cash flow statement
in EUR million FY 2016/17 FY 2015/16
Cash flow from operating results 116.8 84.8
Change in working capital 6.5 -4.1
Change in other operating items -8.6 17.8
Taxes paid/received -5.0 -5.9
Cash flow from operating activities 107.5 92.6
Proceeds from the sale of non-current assets 5.0 7.6
Capital expenditures on non-current assets -45.2 -58.4
Change in current and non-current financial assets 2.0 3.3
Change in liquid funds from changes in the consolidation range 0 -2.6
Assets held for sale 0 7.4
Cash flow from investing activities -38.1 -42.7
Free cash flow 69.4 49.8
Cash flow from financing activities -66.7 -14.9Effects of exchange rate changes on cash and cash equivalents
-0.8 -2.8
Change in cash and cash equivalents 1.9 32.1
Free cash flow development
Q1 H1 Q1-Q3 FY
7.4
(cumulative figures in EUR million)
FY 2015/16 FY 2016/17
-35.5
-24.9
-10.1
49.841.5 40.6
69.4
| |23 June 2017Annual Results 2016/17 45
Continued solid balance sheet structure and secured liquidity positionZumtobel Group – Key balance sheet data
in EUR million 31 April 2017 30 April 2016
Total assets 1,019.6 1,068.6
Net debt 91.0 134.8
Equity 334.0 333.2
Equity ratio in % 32.8 31.2
Gearing in % 27.2 40.5
Investments 45.2 58.4
Working capital 220.1 231.2
As a % of rolling 12 months revenues
16.9 17.0
� Net debt totalled EUR 91.0 million as of 30 April 2017 (30 April 2016: EUR 134.8 million)
� Secure liquidity position backed by:
− Syndicated credit facility with a term ending November 2021 and a max. volume of EUR 300 million (EUR 60 million drawn by 30 April 2017)
− Two bilateral bank credit agreements of EUR 40 million each with a term extending to September 2018 respectively January 2020 (fully drawn by 30 April2017)
− Uncommited lines of credit totalling EUR 88.1 million as of 30 April 2017
| |23 June 2017Annual Results 2016/17 46
Cautious Optimism for 2017/18Zumtobel Group Guidance
� Industry environment remains in general positive – some countries remain challenging (France, Australia, Middle East)
� Extensive restructuring measures implemented in recent years have significantly strengthened our competitive position
� Disposal of luminaire plant in Les Andelys and groundbreaking for the new plant in Serbia is on track
� Focus in 2017/18 on further improving cost position (Les Andelys/Serbia), expansion of the service business and significant
investments in IoT technology / IoT pilot projects
� Headwinds from pricing pressure in the Components Segment and negative currency effects (GBP/USD)
� Against the backdrop of limited visibility the Management Board of the Zumtobel Group expects a slight improvement in
revenues (PY 1,303.9 Mio EUR) and adjusted EBIT (PY 72,4 Mio EUR)
| |23 June 2017Annual Results 2016/17 47
Financial Calendar
� July 11, 2017 Record Date Annual General Meeting
� July 21, 2017 41st Annual General Meeting of Zumtobel Group AG
� July 31, 2017 Ex-Dividend Day
� August 1, 2017 Record Date Dividend
� August 2, 2017 Dividend Payout Day
� September 5, 2017 Report on the First Quarter 2017/18 (1 May 2017 – 31 July 2017)
� December 5, 2017 Report on the First Half-Year 2017/18 (1 May 2017 – 31 October 2017)
� March 6, 2018 Report on the First Three Quarters 2017/18 (1 May 2017 – 31 January 2018)
| | 48
Recovery is confirmed: NRC expectations improved for most of our core markets for 2017
• For 2017, NRC growth is confirmed for core markets.
• NRC outlook improved for our core markets except for Italy.
• Civil Engineering to grow in our core markets except for theUK, where a stagnation for this year is anticipated. Forecastimproved for DACH and France.
• For our core markets, NRC outlook for 2017 improved:
Forecast was revised upwards from +1.3% to +2.1%.
• For 2018 NRC forecast was confirmed: Growth around +1.6%.
• Most growth contribution comes from New-built
23 June 2017Annual Results 2016/17
| |23 June 2017Annual Results 2016/17 49
Five-Year Overview
in EUR million 2016/17 2015/16 2014/15 2013/14 2012/13
Revenues 1,303.9 1,356.5 1,312.6 1,246.8 1,243.6
Adjusted EBIT 72.4 58.7 66.5 47.6 35.7
as a % of revenues 5.6 4.3 5.1 3.8 2.9
Net profit/loss for the period 25.2 11.9 11.9 -4.8 6.1
as a % of revenues 1.9 0.9 0.9 -0.4 0.5
Total assets 1,019.6 1,068.6 1,086.3 1,006.6 994.8
Equity 334.0 333.2 322.6 327.6 357.4
Equity ratio in % 32.8 31.2 29.7 32.5 35.9
Net debt 91.0 134.8 148.2 126.2 113.2
Cash flow from operating results 116.8 84.8 103.1 79.5 79.8
Investments 45.2 58.4 76.6 65.6 59.5
as a % of revenues 3.5 4.3 5.8 5.3 4.8
R&D total 82.4 87.9 79.0 71.8 69.1
as a % of revenues 6.3 6.5 6.0 5.8 5.6
Headcount incl. contract worker (full-time equivalent)
6,562 6,761 7,234 7,291 7,162
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Disclaimer
The facts and information contained herein constitute forward-looking statements as of the date they were made and based upon assumptions as to future events or circumstances that may not prove to be complete or accurate. By their nature, these statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and are difficult to predict. Therefore, actual outcomes or results may differ materially from what is expressed, implied or forecasted in these statements. Neither Zumtobel Group AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the facts and information contained in this document or the related oral presentation thereof, including responses to questions following the presentation. Neither Zumtobel Group AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this document, the facts and/or information.
Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the assumptions and opinions contained herein are fair and reasonable, this document is selective in nature and is intended to provide an introduction to, and overview of, the business of Zumtobel Group AG as of the date this document was made. Where any information and statistics are quoted from any external source, such information or statistics should not be interpreted as having been adopted or endorsed by Zumtobel Group AG as being accurate.
Contacts:Investor RelationsTel.: +43 (5572) [email protected]