Ulma Construccion Polska S.A
Transcript of Ulma Construccion Polska S.A
1
Ulma Construccion Polska S.A.
Roadshowpresentation
Warsaw, April2007
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This
pre
senta
tion h
as b
een p
repare
d b
y, and is the s
ole
responsib
ility
of U
lma C
onstruccio
n P
ols
ka
S.A
. (the “C
om
pany”, “U
CP”)
. This
pre
senta
tion m
ay n
ot be d
istrib
ute
d in o
r in
to the U
nited S
tate
s o
f
Am
erica.
This
pre
senta
tion does not
constitu
te or
form
any part of
any offer
or
invitation or
inducem
ent
to sell
or
issue,
or
any solic
itation of
any offer
topurc
hase or
subscribe fo
r, any
securities o
f th
e C
om
pany, nor shall
it o
r any p
art o
f it o
r th
efa
ct of its d
istrib
ution form
the b
asis
of,
or
be r
elie
d o
n in c
onnection w
ith,
any c
ontract
there
fore
. Securities o
f th
e C
om
pany m
ay n
ot
be
offere
d o
r sold
in the U
nited S
tate
s o
f Am
erica a
bsent re
gis
tration o
r an e
xem
ption fro
m regis
tration.
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rmation in this
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tion is s
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ct to
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ithout notice, its a
ccura
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nte
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llm
ate
rial in
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ation c
oncern
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om
pany. The fore
casts
and forw
ard
-
lookin
g
sta
tem
ents
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ined
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senta
tion
are
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based
upon
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ber
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assum
ptions and estim
ate
s th
at, w
hile
consid
ere
d re
asonable
by th
e C
om
pany,
are
inhere
ntly
subje
ct
to
sig
nific
ant
busin
ess,
opera
tional,
econom
ic
and
com
petitive
uncertain
ties
and
contingencie
s,
many of
whic
h are
beyond th
e C
om
pany’s
control, and upon assum
ptions w
ith
respect to
futu
re b
usin
ess d
ecis
ions that are
subje
ct to
change.Actu
al re
sults m
ay d
iffe
r m
ate
rially
from
those p
roje
cte
d. C
ertain
num
erical in
form
ation a
nd o
ther am
ounts
and p
erc
enta
ges s
et fo
rth in
this
pre
senta
tion m
ay not
sum
due to
ro
undin
g.
In additio
n,
certain
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s here
in have been
rounded to the n
eare
st w
hole
num
ber.
Legal restrictions
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
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Andrzej Kozłowski
President of theManagement Board
Founder and father of success of Poland’s
leading manufacturer and supplier of formwork,
shoring systems.
Expert in construction and engineering.
For 18 years with the businessofUlma
Construccion Polska S.A.
EñautEguidazuAldalur
Vicepresident of theManagamentBoard
Vice-President of the Management Board,
CFO in UlmaConstruccion
PolskaS.A.
1998 -1999 Quality Engineer in NCR (Holland)
1999 –2000 Financial analyst in NCR (Holland)
2000 –2002 Accounting ManagerinNCR
(Holland)
2002 –2006 Financial auditor in ULMA
Construccion
Cristóbal Álvarez
General Director of ULMA Construcción
For 14 years with the business of ULMA
Construcción,inthebeginning as a Spanish
Market Director and later as anInternational
Market Director.
Speakers
Jose Ramon AnduagaAguirre
1996 –2002 CFOin UlmaGroup
From 2003 r. CFO in ULMA C y E, S. Coop.
Member of theManagement Board In ULMA
Construccion Poland.
JoséIrizar
DirectorofULMA ConstruccióninEurope.
For 11 yearswiththebusiness ofULMA
Construcción, since2005 responsiblefor
EuropeanoperationsoftheGroup.
Before2005 DirectorofUlmaHormigónPolímero,
andDirectorofUlmaAgrícola.
ULMA Group
UCP
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
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Ulma Group
Ulma Group
�one of the largest business groups in northern Spain,
�over 40 years of experience in the business,
�business model comprising 4 cooperative companies and its
activity pivots around 7 strategic Business units
�more than 3,300 people employed in the Group, generating total
sales superior to EUR 600 m,
�part of Mondragón Corporación Cooperativa (MCC) -turnover of
EUR 11,000 m and a total workforce of 72,500.
GlobalPresence
�dating from 90s global expansion strategy,
�27 subsidiaries in nearly all continents,
�forecasted foreign sales ofEUR 250 m.
Focuson CEE Region
�2004 purchase of Bauma S.A.(„UCP”) in Poland
�strong CEE region presence through assets of UCP:
�UCP –Poland
�UlmaUkraina –UCP subsidiary
�Kazakhstan –UCP sales office
�Bauma Russia–Salesoffice
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Ulma Group
Ulma’sBusiness Model
ULMA Agrícola
ULMA Construcción
ULMA Forklift Trucks
ULMA Handling Systems
ULMA Polymer Concrete
ULMA Packaging
Designand production of packaging equipment,
differentiated and all-encompassing offer
Business units
Design and manufacturing of products, including the service of
application and assembly engineeringin the technological areas of
Scaffolding,Formworks,Shoring, Bracing and Shuttering.
Logisticalsolutions, range of forklift trucks, thermal and electric,
counterweighted and indoor.
Specializationsin Prefabricated Systems for Construction, Conduits
for the collection of fluids by means of drainage systems and Building.
ULMA C y E, S. Coop
ULMA Manutención
ULMA HormigónPolímero
ULMA Forging
ULMA Forja
Legal Entities
Solutionsfor agricultural producers, integral projects of productive
systems in sheltered crops.
Areas of expertise
Manufacturerof forged accessories for Piping, Flanges and Fittings,
destined for the Petroleum and Energy Industry.
Engineeringfor the development of innovative solutions through the
design, assembly and maintenance of Automatic Logistics Systems.
Strongly diversified business model focused on providing services for construction sector
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Ulma Group–financialresults
263,7
311
345
356
430
508
2000
2001
2002
2003
2004
2005
85,3
103
109
122
130
211
2000
2001
2002
2003
2004
2005
TotalSales(EUR m)
International Sales(EUR m)
CAGR 16%
+62%
Increasing sales strength...
generated in diversified geography …
1%2%
7%
15%
12%
63%
Africa
Oceania
Asia
North America
Latin America
Europe
14,4
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2004
2005
86
106
2004
2005
backed by EBITDA and earnings growth.
EBITDA (EUR m)
Net profit (EUR m)
Source: TheIssuer
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
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Why UCP
Facts
�UCP today -2nd largest distributor of formwork systemsin Poland
�Exploiting inter-group product transfer opportunities to strengthen UCP’sposition in all market segments
�Strong outlook for the future –projected vast infrastructure development in Eastern Europe
Strategy
�To become the no.1 player in distribution of formwork systemssector in Poland -till 2010
�Fundamental pillars of competitive advantage:
–Comprehensive product offer/high quality/technology
–Focus on providing highest quality of service
–Reliability among clients -supervision and management of contract throughout all project phases
�Dynamic organic growth in the home market thanks to:
–Expected secured long term growth in construction output in Poland
–Strong position of UCP in core growth markets –engineering, civil engineering, residential
�Potential additional value creation through presence in other growth markets: Ukraine, Kazakhstan, Russia
SPO
�SPO proceeds aligned with the strategy
�Value creation potential resulting from SPO evident already in 2007
�Post SPO shareholding structure/free float attractive to investors
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
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Acceleratedpace ofchange
Founding ofBauma
Sp. z o.o.
1989
1996
1997-2004
2004 -2006
Change of legal status
into S.A.
Presence ofEI
Acquiring strategic
investor
2007 -……
Prospectspost SPO
�Reorganization of capital
Group
�Changes in the
Management Board
�Focus on rental as the core
competence of UCP
�Larger product portfolio
�Financial support from
Spain, granting Corporate
guarantees to the loans
signed in 2004 by Bauma
�Reorganization of some
production processes
�Reorganization of sales
force and warehouses in
Poland
�Rebranding Bauma to Ulma
�Acquiring funds from the
equity market + bank loans
�Investments in material and
warehouses
�Increasing export sales
�Increase of production
capacity
�New product development
�Improvements in IT systems
�Improvement in staff
management
�In the beginning
production of concrete
sett„Bauma sett”has
become synonym of
this product for years
�In 1991 also distribution
of formwork systems,
progressive
specialization in the
area of monolithic
technology
�IPO on WSE
�Activity in the area of road
construction
�Expansion beyond
Mazowieckie Province –first
subsidiary in Łódź
�Purchase of majority stake by
enterprise investors
�Slogan -100 products for
construction
�Developing of trade network in
Poland –15 subsidiaries planned
�1998 –Beginning of steel shores
production
�1999 –2000 Building of production
plant in Starachowice
�2000 –beginning production of
PRIMO
�2001 –starting export activity -
Ukraine
�2002 –beginning of DSD
production –bridge construction
system
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Core
AssestsofUCP
UCP S.A.
UlmaSystem
UlmaUkraine
Russia
100%
100%
Rep. office
Production of formwork for UCP
Group
Distribution and selling of formwork systems
in Ukraine
UCP Capital Group
Sales network :
�11 sales offices
�8 warehouses
�40 dedicated salesmen
Regional division adjusted to
construction market output:
East
South
West
Distribution model in Poland
Kazakhstan
Asset mix fitted for further expansion in local and foreign markets
Rep. office
Sellingof formwork systemsin
Kazakhstan
Selling of formwork systemsin
Russia
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Key components of UCP’s competitive advantage
�Highly skilled and experienced Management team,
�Expert sales/ project manager team,
�Ability to retain, employ and train new experts.
�Product offer of 24 framework/shoring systems
�Diversified sources of new products: (i) UlmaSystem (ii) Ulma Group
�Comprehensive product proposal for all market segments
–tech/civil engineering, residential
�Development of new products -R&D cooperation with Ulma Group
�Logistics/sales tailored to maximise market reach
�8warehouses in Poland/11 sales offices
�Limited operational risk –international businesses operating on salvaged
assets of UCP
�Ukraine –distribution of formwork systems, 2006 sales–PLN 8.14 m
�BaumaRussia –distribution of formwork systems, 2006 sales –PLN 4.28 m
�Kazakhstan –distribution/rental of formwork systems in Kazakhstan, 3rd marketposition,
2006 PLN 11,35 m.
Management
Know-how
Product mix
Distribution/Logistics
International presence
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UCP’sbusiness model
Design and Planning
Project Engineering
Highest Quality
Rental Equipment
On-site Safety
Management
On-site Project
Management
Value Added for the Client
�Formwork Designing on
building-site
�Various Formwork selection
in construction
�Formwork systems designing
�Non standard formworks
designing
�Calculating of non typical
structures
�Non typical shoring
systems
�The largest comprehensive
product proposal of formwork
systems
�Possibility of designing non
typical wooden and steel
elements of formworks
�Supervision over formworks
assembly
�Possible formwork assembly
service
�Formworks are part of
safe pass system
�Designing protection
systems and wind
protection
�Providing formwork project
service of realized
investments
UCP’sapproach -Construction partner present on-site through all project phases
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�PartiaHousing Estate in Warsaw
�EkoPark Housing Estate in Warsaw
�Eco Tower in Warsaw
�Villa Marina Housing Estate in Warsaw
�ZielonaGalicjaHousing Estate in Karkow
�JagodnoHousing Estate in Wrocław
Residential construction:
�StaryBrowarShopping Centre in Poznań
�The Polish Theatre in Warsaw
�Plaza Shopping centre in Lublin
�PasażGrunwaldzki Shopping Centre in Wroclaw
�New HQ of Polish Energy Network in Warsaw
�Terminal II in Warsaw Airport
�GaleriaCopernicus in Toruń
�ThePiramidaHotel in Tychy
�Cinema City in Toruń
�ZieloneTarasyShopping Centre in Elbląg
�RedutaShopping Centre in Warsaw
�GaleriaKazimierzin Krakow
�PromenadaIII Shopping Centre in Warsaw
�ArkadiaShopping Centre in Warsaw
�KrzywyDom in Sopot
�The Metropolitan Hotel in Warsaw
Civilengineering:
UCP –clients, references
Over 2000 projects realised during the year
�Budimex-Dromex
�STRABAG
�WARBUD
�Skanska
Selected projects:
�Bridge over the CzarnaPrzemszaRiver
�Highway bridge over The KwisaRiver
�Overpass in the SiekierkowskaRoute
�Buildings constructed down the A2 motorway
�Ringroadin PiotrkówTrybunalski
�Route 18 from Olsztyn to Golnice
�Overpass in Płowieckastreet in Warsaw
�Railway overpass WK2 & WK3 in Olsztyn
�Overpass junction in WołoskaStreet in Warsaw
�Berlin-Kaliningrad Route in Elbląg
�Route S-69, WD-23 overpass in Milówka
�The HulankaTunnel in BielskoBiała
�CzerniakowskaRoad Junction
Engineering
Bridges:
Sewage treatment plants:
�Katowice
�Koziegłowy
�Częstochowa
�Bolesławiec
�Płaszów
�Erbud
�Mostostal
Warszawa
�HOCHTIEF
Selected clients:
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Market characteristics:
�Estimated value of Polish formwork/shoring market: PLN 350m –2006 estimate
�Market dominated by 4 major players: PERI, Ulma, Hunnebeckand Doka(88% market
share)
�Market entry barriers due to intensive capexrequirements –product portfolio/logistic network
�Bargaining power of clients (investors/general contractors) depending on project value
–the larger the project the higher the bargaining power of the client
�Apart from pricing Clients’decision on the supplier of services based on reliability and
possibility to deliver solutions in the envisaged project timetable
�Ulmaand Periperceived as market leaders in terms of product offering and quality of service
UCP’smarket share / competition
Distribution of formwork systemsmarket in Poland
Highly concentrated market dominated by 4major players
PERI
36%
Ulma
28%
Hunnebeck
15%
Doka
9%
Noe
5%
Others
7%
Source: The Issuer
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
19
Sales revenue 2003-2006
62 946
82 481
98 593
154 255
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
160 000
180 000
2003
2004
2005
2006
Net profit and EBITDA 2003-2006
7 846
24 021
44 856
75 854
-15 605
9 290
18 183
32 928
-40 000
-20 0000
20 000
40 000
60 000
80 000
100 000
2003
2004
2005
2006
EBITDA
Net profit
UCP’sfinancialperform
ance
CAGR 25%
CAGR 46,7%
CAGR 52,5%
Source: TheIssuer
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UCP’sfinancialperform
ance
Revenue structure –market segments
Revenue Structure
47,75%
46,90%
33,85%
18,00%
15,04%
22,96%
34,25%
38,06%
43,19%
2004
2005
2006
Ukraine
Russia
Kazakhstan
International sales[ths. PLN]
Source: The Issuer
Cost structure
17 252
15 004
25 766
21
153 866
85 759
12 390
38 940
40 858
44 901
68 107
9 781
153 866
39 212
114 654
2005
243 319
142 551
17 227
86 420
52453
90 098
100768
9.781
243 319
61725
181594
2006
Assets
1. Non-current assets
2. Current assets
Total assets
Equity and liabilities
1. Share premium account
Total equity
Liabilities
1. Long-term liabilities
2. Short-term liabilities
Long-term loans and borrowings
Short-term loans and borrowings
Total liabilities
Total equity and liabilities
Balance sheet–[thsPLN]
UCP’sfinancialperform
ance
Source: TheIssuer
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18 181
11,81%
26,69%
4 110
22 291
3 675
583
44856
25 383
384
7 768
5 078
38 613
59 980
98 593
2005
32928
13,53%
32,67%
8 134
41 062
4 987
428
75 854
45621
355
9 795
7 925
63 706
90 549
154 255
2006
Sales revenue
Cost of sales
I. Gross profit on sales
Cost of Sales and marketing
General administrative expenses
Other operating expenses
II. EBIT/Gross operating profit/loss
EBITDA
Financial income
Financial expenses
III. Profit before tax
Current corporate income tax
ROE
ROA
IV. Net profit
Consolidated
profit andlossaccount[thsPLN]
UCP’sfinancialperform
ance
Source: TheIssuer
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
24
UCP Strategy
Main Sources of
competitive advantage
�Product mix
Polish market
Become market leader in Poland through:
�Investment in products:
(i) increasing rental stock to fit the market potential
(ii) higher value rental equipment which generates
stronger margins
�Focus on sectors, which value engineered solutions
�Maximising utilisation rate and market reach through :
(i) reorganising logistics/distribution network –target
structure 3large service hubs + 6warehouses
(ii) optimising distance to construction projects
Leveraging growth potential in international markets
�Kazakhstan –further strenghteningof market position
�Russia, Ukraine –opportunistic approach with low
degree of operational risk
Current status
�24 complex formwork systems
�Use of Ulma Group in R&D to
design new products
�Presence in new
markets
Current international presence:
�Ukraine –Sales dynamics
2004-2006 –23,5 %
�Kazakhstan –3rd position
�Russia –Sales dynamics 2005-
2006 –22%
�Focus on
maximising
utilisation rate
�Warehouses in 8cities
�Project management throughout
all phases of construction
process
UCP Strategy
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UCP’starget –logistics/distribution model
8 Warehouses:
�Warsaw
�Łódź
�Kraków
�Wrocław
3Service Hubs:
�Warsaw
�Poznań
�South Region
Value creation through maxim
ising utilisation rate
6 Warehouses:
�Gdańsk
�Bydgoszcz
�NowaSól
�NowaSól
�Poznań
�Bydgoszcz
�Gdańsk
�Improved rotation of products
�Consolidating larger product potential in a single location
�Decrease of fixed costs associated with maintenance of warehouses e.g. forklifts, transporting costs, level of employment
�Higher product safety
Current
Planned
�Warszawa
�Łódź
�Wrocław
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UCP–Opportunities Outw
eigh Threats
Threats
�High operating leverage
�Risk of retaining key employees
Opportunities:
�Leveraging know-how and global presence of UlmaGroup
�Secured long-term demand for distribution of formwork systems
in Poland
�Reorganisation of logistic network creating opportunity to
maximise utilization rate
�International presence in high growth markets.
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Sources of financing in 2007/2008:
�Issuance of shares
�Bank loans
�Retained earnings
UCP–Investm
ent programme
Construction of 3 service hubs:
�Poznań(2007) –recently purchasedrealestateassets
�South region (2007)
�Warsaw (2007/2008)
2007-2008
PLN 60 m
Investment in products/materials
PLN110 m
PLN100 m
2008
2007
2007/2008
∑PLN 270 m
Source: The Issuer
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1.Speakers
2.Ulma Group
3.Why UCP
4.UCP business description
5.Financial results
6.Strategy
7.Secondary Offering
29
Secondary
Public Offering
Shareholding structure preSPO
Shares offered
Shareholding structure post SPO
Capital increase
upto365,000
Shares offeredfor sale by Ulma Cy ES
upto 800,000
Total
upto 1165,000
Free float 2.53%
Ulma 97.47 %
Free float
24.51%
Ulma 75.49 %
Source: TheIssuer
LOCK-UP: 12 monthsfor UlmaCy ES
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Timetable of the offering
Publication of offering memorandum research report
Roadshow
Bookbuilding
Pricing
Subscription
27March 2007
11-18 April2007
17-18 April2007
18 April2007
19-24 April2007
30 April2007
Listing of new shares on WSE