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Baird Conference November 2007

Baird Conference November 2007. 1 Disclaimer on Forward Looking Statements Certain statements made by the Company in this presentation are forward- looking

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Baird Conference

November 2007

2

Disclaimer on Forward Looking Statements

Certain statements made by the Company in this presentation are forward-looking statements. These statements include comments as to the Company’s beliefs and expectations as to future events and trends affecting the Company’s business. These forward-looking statements are based upon management’s current expectations concerning future events and trends and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors stated under the heading “Forward-Looking Statements” in Management’s Discussion and Analysis of Results of Operations and Financial Condition, which appears in the Company’s Annual Report on Form 10-K for the year ended June 30, 2007, and the Company’s most recent 10-Q filings with the SEC, as well as other factors, could cause actual results to differ materially from such statements.

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Automobile 79%

Professional17%

Consumer4%

Automobile 70%

Professional16%

Consumer14%

Harman Today

SUMMARY BUSINESS OVERVIEW

Leader in the development, manufacture and marketing of high-quality, high fidelity audio products and electronic systems

11,000+ employees

Manufacturing facilities in North America, Europe and Asia

Operations at 44 locations

Products distributed worldwide

Unmatched brand name recognition

Three business segments

Automotive

Consumer

Professional

FY 2007 REVENUE BY DIVISION

FY 2007 EBITDA BY DIVISION

Total = $514 million

Total = $3,551 million

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Company Overview

Automotive Division Professional Division Consumer Division

World leader in Branded Automotive Audio Systems

Leader in high-end Infotainment Systems enabled by innovative technological advancements

Designs, manufactures and markets loudspeakers and electronic systems used by audio professionals in concert halls, stadiums, airports, houses of worship and theme attractions

Leading designer and producer of audio, video and electronic systems for home, mobile and multimedia applications

Brands

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Recent Company Events

Dinesh Paliwal joins Harman as Vice Chairman, President & CEO Dinesh comes to Harman from ABB where he was President of Global Markets and Technology as well as

President and CEO of ABB North America. The ABB Group is a global technology and engineering company with $24 billion in annual revenues and operations in 100+ countries.

Termination of the Merger Agreement Harman, KKR and GSCP agreed to terminate merger agreement without litigation or a termination fee

Company avoids a protracted and costly legal battle Senior management fully focused on running the business

KKR and GSCP invested $400 million in 1.25% convertible senior notes and have agreed not to hedge or sell position for one year

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Recent Company Events

Accelerated Share Repurchase Agreement Company used the proceeds from the convertible notes to repurchase more than 4.7 million shares (approximately 7% of outstanding

shares) which were retired immediately EPS accretion in F’08 estimated to be approximately 4%

Expansion of the Board of Directors Brian Carroll, member of KKR, joins the Harman International Board. Mr. Carroll is also a member of the board of directors of Rockwood

Specialties Group, Inc. and Sealy Corporation. Dr. Harald Einsmann, brings significant experience from both his board service and senior management roles in a variety of multinational

companies.

Financial Overview

8

889

1,0321,153

1,211

651

32.8% 34.0% 35.5% 34.1%

29.2%

0

300

600

900

1,200

1,500

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Gross Profit % of Sales

3,5513,248

3,031

2,229

2,711

0

1,000

2,000

3,000

4,000

FY2003 FY2004 FY2005 FY2006 FY2007

Revenue and Gross Profit

($ in millions)

CAGR: 10%

($ in millions)

CAGR: 13%

REVENUE

GROSS PROFIT

9

417458 453 468

341

15.3%13.2%14.0%15.1%15.4%

0

200

400

600

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Other SG&A ex R&D % of Sales

Historical SG&A

RESEARCH AND DEVELOPMENT EXPENSES, net($ in millions)

OTHER SELLING, GENERAL & ADMINISTRATION EXCLUDING R&D

217 223

302357

143

6.4%

10.1%9.3%7.3%8.0%

0

200

400

600

FY 2003 FY 2004 FY 2005 FY 2006 FY 2007

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

R&D % of Sales

10

EBITDA

EBITDA

($ in millions)

361

256

470527 514

0

200

400

600

FY2003 FY2004 FY2005 FY2006 FY2007

CAGR: 15%

Automotive Division

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Automotive Division - Q1 F’08 Highlights

Strong Sales Growth 14% Q1 F’08 v. Q1 F’07 Sales increases to luxury automakers, mid-segment and

personal navigation devices (“PND”)

Gross Margin Decreases 9 points New program ramp slower than anticipated Higher material costs Product mix consisted of more mid-range infotainment

systems and PND’s

R&D costs higher $4.3 million Q1 F’08 v. Q1 F’07 To deliver on record number of new programs

Operating Profit decline primarily due to gross margin decrease

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Major New Product Launches

FISCAL YEAR 2008 LAUNCHES

Chrysler Hyundai BH program BMW Ssangyong Chairman Audi 3G Porsche PSA RNEG

FISCAL YEAR 2009 LAUNCHES

BMW L6 PSA NG4 Hyundai VI Porsche PCM3.1 Mercedes E-class Mid-level Mercedes S-class facelift

Consumer Division

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Consumer Division - Q1 F’08

Strong Sales Growth 28% Q1 F’08 v. Q1 F’07Solid sales increases Internationally and in the US

to Best Buy

Gross Margin declined nearly 2 pointsCompetition in multimedia space

Operating Loss of 2.6% in Q1 F’08 improved 2.2 points versus Q1 F’07

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Product Road Map

AVR

Wireless

iPhone Docking

iPhone dock + HD Radio + speakerphone

GPS 800/ MS 8

Professional Division

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Professional Division – Q1 F’08

Strong Sales Growth 11% Q1 F’08 v. Q1 F’07Strong sales at JBL Pro,

Soundcraft/Studer and Harman Music Group

Gross Margin increased slightly to 38.5%

Operating Expenses fell as a % of Sales to 24.4%

Operating profit margin increased by 100 basis points to 14.0%

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HiQnet Overview

HiQnet allows Harman Pro to offer a complete system from microphone to speaker

Control and monitoring of devices on the network

Automatically learns device capabilities

Primarily large install and touring

67 HiQnet enabled products, representing 22% of Q1 FY08 revenues

HiQnet System Architect

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F’08 Initiatives

Significant restructuring program announced -- $25 million to $30 million to be completed in the second half of F’08

Optimize cost structure – global procurement strategies “shopping smart”, consolidating manufacturing and engineering footprint

Improve and simplify internal processes – consolidate and coordinate activities, e.g. engineering efforts, shared services centers

Build global team -- monthly business reviews, new key metrics, add key resources (HR, Strategy)

Questions and Answers