Mecatherm Wendel Investor Day Olivier Sergent 5 December 2013
Company profile World leader in industrial bakery equipment Mecatherm designs, develops, assembles and installs automated production lines exclusively for industrial bakeries Mecatherm covers a wide market for production lines with its three complementary solutions: High capacity line for convenience baguettes and crusty bread (e.g. Aryzta, Quizno s) Premium line for artisan quality bread and baguettes (e.g. Brioche Dorée, Paul) Varietee line for buns, brioches, tin bread, pastries, etc. (e.g. Pasquier, Boulangère, Pierre Schmidt) Wide range of bakery products A large, diversified and international customer base 2
Mecatherm products High-capacity line: convenience baguettes and crusty bread Premium line: artisan quality bread and baguettes Varietee line: buns, brioches, loaves of bread, pastries 3
120 100 80 20 20 0 After difficult environment in 2012, Mecatherm is back on strong growth trend in order intakes Strong growth in order intakes: +51% vs. 2012*, led by historical segment & mature markets Record level of LTM order intakes of over 100M* By type of equipment By region By type of customer 29 15-47% 13 13-1% 20-1% 14 14 5 13 9 +104% 0 LTM LTM Sept 2012 LTM LTM Sept 2013 Other Varietee Convenience 39 39 71 71 14 14 11 31 11 31 29 After sales services Premium 108 15 120 +51% North America * Order intakes excluding resold equipment, based on September 30, 2013 LTM Western Europe +51% 100 +177% 80 +191% +191% 120 100 100 100 100 31 38 +76% +21% 38 38 +21% +76% 80 71 55 55 71 16 80 71 +76% 80 80 71 71 9 18-19% 31 3120 31 24 +295% 23 +76% 31 31 24 24 16 50 16 15 n.m. +76% 9 9 0 4 12 6 6 6 11 28 18 LTM Sept -19% 2012 18 11 28 +169% -19% LTM Sept 2013 11 28 23 20 20 10 23 20 20 4-59% 10 10 Latin 4 50 15 n.m. America 4-59% 5 15 n.m. 14 13-1% 14 14 13 13 +-1% 0 4 4 12 Asia Pacific 2 0 0 0 LTM Sept 2012 LTM Sept LTM 2012 Sept 2013 LTM Sept 2013 LTM Sept 2012 LTM Sept 2013 Russia & Eastern Europe LTM LTM Sept Sept 2012 2012 LTM LTM Sept Sept 2013 2013 Latin America Asia Pacific 120 100 80 Russia & Eastern Europe Middle East & Africa 108 4 71 +51% 108 Middle East & Africa North America +51% Western Europe 108 55 +51% 120 120 120 +76% After After sales sales services Midsized Industrial Key Key account 108 +51% 108 108 New New comer +51% +51% +21% +295% +295% +169% +169% -59% +-1%
Update on initiatives successfully implemented in 2013 (1/3) New products & processes New «HQ line» to produce High Quality bread at the same price as «white» bread Two innovations presented at the IBIE tradeshow in Las Vegas in October 2013 In-line MECAFLOW HQ oven New types of bread produced on MECATHERM s lines «Pao Frances» Tin bread Buns «Mantao» 5
Update on initiatives successfully implemented in 2013 (2/3) Successful entry into new geographies with very strong potential Algeria: state program of rationalization of bread production India: emergence of mass-market food retailers requiring professional equipment suppliers Brazil: industrialization of «Pao Frances» production (equivalent to our French baguette) 6
Update on initiatives successfully implemented in 2013 (3/3) New geographical coverage Opening of a fully owned subsidiary in Dubai to specifically cover MECATHERM s activity in Middle East, India and Africa New emphasis on financing solutions (used in 2013 in Poland, Romania, Argentina..) Leasing solutions Letters of credit with differed payment Reinforcement of relationship with COFACE New sales force organization and new IT system for sales ( CRM ) New production organization «Flat pack» manufacturing / outsourcing expertise center Site specialization 7
Key figures M FY 2012A H1 2012A H1 2013A Δ Sales 73.1 29.6 32.1 +8.5% EBITDA 7.8 0.8 3.2 +300.1% As a % of sales 10.7% 2.7% 10.0% Net debt 61.5 66.9 58.7 H1 results not representative of full year trend due to: Significant seasonality in order intakes in 2012-2013 Structurally lower performance in H1 compared to H2 Strong H2 2013 performance driven by record orders in H2 2012 & H1 2013 More than 15M EBITDA planned for 2013 + 15.4% YTD September sales and sustained growth expected up to the end of the year Margin recovery Net debt reduction 8
MECATHERM s strategy MECATHERM to consolidate «the baguette» business model and replicate to other mass-market products by : Proposing adapted solutions From single highly-specialized modules To complete turnkey systems Addressing customers with adapted commercial approach from key account to new comers New comers (private or institutional investors) Key accounts Industrial bakers Mid-size bakers Widening our scope of supply by addressing mass market products Bakery Danish Pastry 9
Next steps towards «Mecatherm 2020» strategic plan «Mecatherm 2020» strategic plan targets 0M in sales and 70M in EBITDA (18% margin) while maintaining the industrial model with a flexible cost base through: Industrial organization Implementation of a new ERP Development of manufacturing capacity and international supply chain to match price levels in emerging countries Pursue R&D efforts In-line MECAFLOW and HQ oven presented at the IBIE tradeshow in October 2013 Launch of FCS oven, a «no frills» oven for mid-sized bakers, at Europain in March 2014 Reinforce service offering Service packages (including 24/7 hotline, remote control of customers production lines ) Financing solutions Turnkey factories Commercial organization Reinforcement of the commercial and marketing organization Consolidation of MECATHERM s presence in Dubai Continued international expansion with offices in North America and South East Asia External growth to integrate complementary technologies Targets identified First discussions initiated 10
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