1 st Quarter Results Zumtobel Group 2009/10 15 September 2009 Presentation Dr A. Ludwig / T. Spitzenpfeil
Highlights 1 st Quarter 2009/10 Challenging quarter with good progress on cost savings Most markets and both segments continue to suffer from economic crisis Revenues declined by 12,0% (FX adjusted by 10,2%) Strong Euro continues to negatively affect revenues and earnings Excellerate efficiency improvement programme increasingly reflected in results Cross-licensing agreement with Philips signed in May 2009 Significant one-off effects influence operating profit Reported EBIT margin equals 6,9% Positive development of working capital continued Revenues of LED based products increased by around 40% 2 Presentation Dr A. Ludwig / T. Spitzenpfeil
Zumtobel Group FX adjusted decline of 10,2% in revenues 340,0 320,0 300,0 280,0 260,0 240,0 220,0-12,0% [-10,2%] 316,7 278,6 Zumtobel Group Revenues in EUR million 324,5 259,3 273,5 Q1 Q2 Q3 Q4 Revenues FY 2008/09 Revenues FY 2009/10 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% 10% 7% 4% 1% 35,0 30,0 25,0 20,0 15,0 10,0 5,0 0,0 8,8% 28,0 8,2% 22,8 Zumtobel Group Adjusted EBIT* 9,9% 32,0 2,5 16,3 Q1 Q2 Q3 Q4 Adjusted EBIT FY 2008/09 in EUR million 1,0% Adjusted EBIT FY 2008/09 as a % of revenues Adjusted EBIT FY 2009/10 as a % of revenues Adjusted EBIT FY 2009/10 in EUR million 6,0% Revenues FY 2008/09 1.174,0 EUR million (-8,4% [-5,1%]) Adjusted EBIT FY 2008/09 78,9 EUR million (adj. EBITmargin of 6,7%) [ ] = FX adjusted figures *) Reported EBIT adjusted for special effects 3 Presentation Dr A. Ludwig / T. Spitzenpfeil
Revenue Development in 1 st Quarter 2009/10 Slow down of the downwards trend GBP, AUD, SEK Group -12,0% [-10,2%] ZLD -11,6% [- 9,8%] TAD -14,4% [-13,0%] Zumtobel Group Growth development over the last five quarters 320 4% 2% 1,8% 300 280 260 240 0% -2% -4% -6% -8% -10% -2,0% -2,2% -5,4% -9,5% -11,1% -10,2% 220 200 316,7-5,8-32,3 Q1 2008/09 FX effects FX adjusted revenues decline 278,6 Q1 2009/10-12% -14% -16% -13,6% -13,5% -12,0% Q1 2008/09 Q2 2008/09 Q3 2008/09 Q4 2008/09 Q1 2009/10 Growth development in % vs PY quarter FX adjusted growth development in % vs PY quarter [ ] = FX adjusted figures Figures in EUR million 4 Presentation Dr A. Ludwig / T. Spitzenpfeil
Lighting Segment Cost savings from Excellerate partially compensate volume decline Lighting Segment Revenues in EUR million Lighting Segment Adjusted EBIT* 260,0 240,0 220,0 200,0 180,0 160,0 140,0-11,6% [-9,8%] 234,7 207,5 239,3 190,9 206,5 Q1 Q2 Q3 Q4 Revenues FY 2008/09 Revenues FY 2009/10 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% 10% 7% 4% 1% -2% 32,0 28,0 24,0 20,0 16,0 12,0 8,0 4,0 0,0-4,0 9,3% 7,0% 3,5% 3,9% -1,1% 22,2 16,4 8,1 7,3-2,2 Q1 Q2 Q3 Q4 Adjusted EBIT FY 2008/09 as a % of revenues Adjusted EBIT FY 2009/10 as a % of revenues Adjusted EBIT FY 2008/09 in EUR million Adjusted EBIT FY 2009/10 in EUR million Revenues FY 2008/09 EUR 871,4 million (-8,2% [-4,8%]) Adjusted EBIT FY 2008/09 EUR 43,7 million (adj. EBIT margin of 5,0%) [ ] = FX adjusted figures *) Reported EBIT adjusted for special effects 5 Presentation Dr A. Ludwig / T. Spitzenpfeil
Components Segment Profitability impacted by initially positive license fee income 110,0 100,0 90,0 80,0 70,0 60,0-14,4% [-13,0%] 102,6 87,8 Components Segment Revenues in EUR million 106,2 75,4 81,5 Q1 Q2 Q3 Q4 0,0% -20,0% -40,0% -60,0% -80,0% -100,0% 18% 17% 16% 15% 14% 13% 12% 11% 10% 16,0 14,0 12,0 10,0 8,0 6,0 Components Segment Adjusted EBIT* 17,5% 14,0% 10,6% 12,7% 12,4% 15,4 14,4 13,5 10,1 8,0 Q1 Q2 Q3 Q4 Revenues FY 2008/09 Revenues FY 2009/10 Adjusted EBIT FY 2008/09 as a % of revenues Adjusted EBIT FY 2009/10 as a % of revenues Adjusted EBIT FY 2008/09 in EUR million Adjusted EBIT FY 2009/10 in EUR million Revenues FY 2008/09 EUR 365,8 million (-8,7% [-5,1%]) Adjusted EBIT FY 2008/09 EUR 46,0 million (margin of 12,6%) [ ] = FX adjusted figures *) Reported EBIT adjusted for special effects 6 Presentation Dr A. Ludwig / T. Spitzenpfeil
Segment Reporting: Regional Trends Most markets and both segments continue to suffer from economic crisis Q1 2009/10 Revenues in EUR million Change in % D/A/CH 72,8-6,7 Eastern Europe 15,9-14,7 Northern Europe 19,9-17,8 Western Europe 87,0-15,6 Southern Europe 25,3-25,2 Europe 220,9-14,3 Asia 23,5 8,6 Australia & New Zealand 23,5-10,0 America 8,0-2,4 Others 2,7-10,0 Total 278,6-12,0 Distribution of regional revenues Australia & New Zealand 8,4% Asia 8,4% Southern Europe 9,1% Western Europe 31,2% America 2,9% Others 1,0% D/A/CH 26,1% Eastern Europe 5,7% Northern Europe 7,1% Europe 79,3% 7 Presentation Dr A. Ludwig / T. Spitzenpfeil
EBIT Development in 1 st Quarter 2009/10 Excellerate generates further SG&A savings 30 Expiration of favourable USD procurement hedge Includes license fee income Restructuring Expenses ( Excellerate ) 25 20 15 10 05 27,0 1,0 28,0-14,6-4,6-2,9 16,9 22,8-3,6 19,2 EBIT Q1 2008/09 Special effects Adjusted EBIT Q1 2008/09 Volume/price/mix GBP FX Transaction Effect CoGS SG&A Adjusted EBIT Q1 2009/10 Special effects EBIT Q1 2009/10 Figures in EUR million 8 Presentation Dr A. Ludwig / T. Spitzenpfeil
Income Statement effects below EBIT Financial results, taxes and discontinued operations Income statement below EBIT in EUR million Q1 2009/10 Q1 2008/09 Change in % EBIT 19,2 27,0-28,9 Financial results -7,8-10,0* 21,3 Profit before tax 11,4 17,0-33,3 Income taxes -0,5-3,0 83,1 Net profit for the period from discontinued operations -0,7 0,3 <-100 Net profit for the period 10,2 14,3-28,7 * Includes 4,4 EUR million setup costs for new financing agreement 9 Presentation Dr A. Ludwig / T. Spitzenpfeil
Balance Sheet Positive development of working capital continues Balance sheet data in EUR million 31 July 2009 31 July 2008 30 April 2009 Total assets 1.069,0 1.135,8 1.053,9 Net debt 175,7 167,6 163,5 Equity 468,1 497,5 456,0 Equity ratio in % 43,8 43,8 43,3 Gearing in % 37,5 33,7 35,9 Average capital employed 651,1 655,4 664,0 ROCE in % 11,3 18,0 11,9 Investments 7,8 14,5 64,7 Working capital 209,2 264,9 196,4 As a % of rolling 12 month revenues 18,4 20,8 16,7 Working Capital as a % of rolling 12-month revenues 26% 23% 24.0% 22.7% 20.6% 20.8% 20% 19.4% 19.2% 18.2% 18.4% 17% 16.7% 14% Q1 2007/08 Q2 2007/08 Q3 2007/08 Q4 2007/08 Q1 2008/09 Q2 2008/09 Q3 2008/09 Q4 2008/09 Q1 2009/10 2007/08 2008/09 2009/10 10 Presentation Dr A. Ludwig / T. Spitzenpfeil
Cash Flow Statement Free cash flow at prior year level Development of free cash flow (cumulative figures in EUR million) Cash Flow Statement in EUR million Q1 2009/10 Q1 2008/09 Cash flow from operating results 29,4 34,2 Change in working capital -5,6-28,4 Change in other operating items -24,7-10,7 Taxes paid -1,4-1,0 Cash flow from operating activities -2,3-6,0 Proceeds from the sale of non-current assets 0,9 0,1 Q1 H1-13,6-13,8 23,1 Capital expenditures -7,8-14,5 Change in non-current and current financial assets -4,7 12,9 Change in liquid funds from changes in the consolidation range 0,0-6,0 Cash flow from investing activities -11,6-7,6 Q1-Q3 21,8 FREE CASH FLOW -13,8-13,6 Cash flow from financing activities 9,5-2,6 Effects of exchange rate changes on cash and cash equivalents 1,2 0,1 CHANGE IN CASH AND CASH EQUIVALENTS -3,1-16,0 FY 57,8 FY 2008/09 FY 2009/10 11 Presentation Dr A. Ludwig / T. Spitzenpfeil
Market Environment Euroconstruct Ongoing severe economic crisis in all European markets 2009 Growth Rates in % Forecast 10 8 6 4-2 02-4 -10-8 -6-12 -14 Growth-Split by Country Austria Germany France Sw itzerland UK Italy Nordic Non-residential -12,9-6,5-6,1-0,1-5,8-6,0-8,9 Civl Engineering 6,3-1,5-6,5 7,0 3,9-3,2 9,9 GDP -2,2-6,0-1,6-2,4-3,6-4,2-8,9 Source: Euroconstruct, June 2009 Annual Growth Rates in % 5 3 1-1 -3-5 -7 Growth Forecast for Non-Residential Construction 2005A 2006A 2007A 2008E 2009F 2010F 2011O New build -0,2 3,3 3,9 1,6-8,8-4,3-0,5 Renovation 0,3 1,4 2,9 0,8-3,3-0,6 0,6 Total -0,2 3,3 3,9 0,9-6,3-2,6-0,2 Based on: AT, CH, DE, FR; UK, IT, Nordic - Source: Euroconstruct, June 2009 Further decline in commercial construction sector projected Z-7 countries 2009: -6,3% Z-7 countries 2010: -2,6% Z-7 countries 2011: -0,2% 12 Presentation Dr A. Ludwig / T. Spitzenpfeil
Excellerate Efficiency Improvement Programme Up to 100 EUR million gross cost savings by 2010/11 Supply Chain / Procurement 32 BOM reduction, supply chain improvement, scrap material Direct Labour 11 Operations efficiency via Lean Six Sigma Indirect CoGs 18 Operations efficiency, supply chain improvement 3 SG&A Total cost savings 16 13 16 10 39 100 Streamline org. set-up, centralization of G&A functions In total ~ 30 EUR million cost savings realized Cost savings identified by 2010/11 Achieved in Q1 2009/10 Achieved in 2 nd half of 2008/09 Figures in EUR million 13 Presentation Dr A. Ludwig / T. Spitzenpfeil
Outlook and Goals Focus on cost savings in order to be prepared for any market development Stringent execution of increased Excellerate targets Maintain financial stability / Protect liquidity Phase I (as announced December 09, 2008) Focus on growth opportunities Phase II LEDs as the technology of the future Fully exploit energy efficiency opportunities Stronger focus on selected global markets Take advantage of global economic stimulus packages No concrete outlook for 2009/10 possible Target: To maintain positive free cash flow Cost savings from Excellerate ~ 40 Mio EUR in full FY 2009/10 Long-term goal: To gain market share To generate double-digit EBIT margins after the crisis 14 Presentation Dr A. Ludwig / T. Spitzenpfeil
Financial Calendar Wed, 9 Dec. 2009 Interim Financial Report 2009/10 (1 May 31 October 2009) Tue, 16 March 2010 3rd Quarterly Report 2009/10 (1 May 2009 31 January 2010) 15 Presentation Dr A. Ludwig / T. Spitzenpfeil
Disclaimer The facts and information contained herein are as up to date as is reasonably possible and are subject to revision in the future. Neither Zumtobel AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this presentation. Neither Zumtobel 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 presentation. Whilst all reasonable care has been taken to ensure the facts stated herein are accurate and that the 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 AG. 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 AG as being accurate. Contact: Investor Relations Tel.: +43 (5572) 509-1510 investorrelations@zumtobel.com www.zumtobelgroup.com 16 Presentation Dr A. Ludwig / T. Spitzenpfeil