Zumtobel Group AG Roadshow Presentation€¦ · Roadshow Presentation Zumtobel Group AG. Roadshow...

June 2017

Roadshow Presentation

Zumtobel Group AG

| |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


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)


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


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)


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


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


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


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


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


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


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


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.


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


AGENDA



� Corporate Strategy & Financial targets



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


AGENDA



� Corporate Strategy & Financial targets�



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


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


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


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


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.


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


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


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


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


acdc


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


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).


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)


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.


AGENDA



� Corporate Strategy & Financial targets�


23 June 2017

Annual Financial Results 2016/17

Zumtobel Group AG

| |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


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


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%


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%


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%






23.4231.6

5.1

265.7

9.2

24.1

15.7

266.0

9.1%


Revenues FY 2016/17 EUR 999.9 million (minus 2.8%) Revenues FY 2015/16 EUR 1,028.4 million


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%






12.996.3

5.7

98.5

6.6

12.793.4

13.6%


Revenues FY 2016/17 EUR 377.3 million (minus 8.1%) Revenues FY 2015/16 EUR 410.4 million


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%


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


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


Special effects -26.6 -34.9 -60.5

EBIT 45.8 23.8 92.2


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.


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


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


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)


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


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

Many thanks for your attention!


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]

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