Company presentation – Full year 2013
SOL Group at a glance• Founded in 1927, is an Italian based multinational company present in 24 countries with more of 2.600 people
employed.
• Two core , separated but integrated and synergic business ar eas: Technical Gas sector (production, applied
research and marketing of pure, medical and industr ial gases) and Home-Care service sector (supply of
medical products and medical assistance services as well as equipment for home care therapy).
• Two recent businesses: Hydro Energy and Biotechnology .
• Strong results and sound balance sheet:
• Over 596 millions € of Total Group revenues in FY2013 (+2,3% FY2012);
• Over 48% of international revenues in 2013 (vs 23,7% in 2000 )
• 7,2% sales CAGR in the last 10 years;
• 22,1% of EBITDA margin in 2013;
• 0,518 of Debt/Equity ratio;
• Dividend policy: 30% average dividend pay out ratio over the last 10 yea rs.
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The Technical Gases Business
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A complete range of industrial gas (both atmospheric and non-atmospheric):medicinal, pure and special gases.
The Technical Gases Business
Research, design, and construction of:• Industrial gas production facilities,• Plant and equipment for gas utilization• Services and consultancy
� Oxygen� Nitrogen� Argon� Hydrogen� Carbon dioxide� Acetylene� Nitrous oxide� Gas mixtures
� Equipment for medical applications� Equipment for cryogenic applications� Deep freezing tunnels� Oxygen burners� Ozonisers
Production and distribution of Gases
Supply of plants, equipments, services and consulta ncy
SOL Group operates in the technical gases business througho ut the brand SOL
� Ultra high purity gases
� Medical gases� Gaseous
helium� Liquid helium� Refrigerating
gases
� Electronics gases
� Ammonia� Combustible
gases
� Medical air plants� On-site plants� Welding machines
and equipment
4
229,3240,5
252,8
282,5296,3
344,9 342,7325,1
340,6
313,5296,3
150
200
250
300
350
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mil
lion
s Euro
Technical Gases BusinessTechnical gases business (M€)
FY2013 FY2012 YoY
Sales 343 345 - 0,6%
EBITDA 70 71 - 3,8%
EBITDA % 20,5% 21,2% - 0,7%
Investments 58 39 + 47,9%
• In 2013 the industrial gases division
sales were stable, maintaining the
EBITDA margin above 20% .
• In 2013 the division invested over the
16% of its revenues.
• 4,1% sales CAGR over the last 10 ys.
SOL Group 2013 Total revenues
Technical Gases53%
10 years Sales in Technical Gases 2003 - 2013
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Market characteristics
• Resilient and growing market
• Limited economic cycle demand
dependence of each sales area
• Local presence as a key factor
• Broad variety and diversification of end-
markets and applications:
• Metallurgy and Steel industry
• Glass, Ceramics, Fibers
• Engineering, Metal Goods, Automotive
• Gas, Water, Sewage and Refuse services
• Food and Beverages
• Electrical/Electronics and instruments
• Chemical industry, Refinery, Rubber,
Plastics
• Hospitals, Health services,
Pharmaceutical industry
Technical Gases businessSOL
• High diversification of sales area :
• Diversified presence in each
industry segments;
• More than 100 different
applications for technical gases
• Long term contracts with customers:
• Pipeline and on-site supplies: up
to 15 years;
• Compressed gases: up to 5
years;
• Cryogenic liquid gases: up to 3
years
• Strong local presence :
• 19 countries, 34 primary
transformation plants, 54
secondary transformation plants.
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• The uses of specialty gases are expanding in many different context. The market need
for maximum accuracy finds its answer in the world of gases:
• Universities and research centers : highly purified gas carriers for gas
chromatography, calibration equipment and gaseous compounds used as
precursors for chemical synthesis;
• Chemical and pharmaceutical carrier gases and calibration gases in many
activities related to process control;
• Hospitals: medicinal gases for pharmaceutical use, pure products and mixtures
for laboratory and analytical activities as a support to diagnostic processes,
cryomangement services;
• High-tech industry sectors (such as electronics, automotive and renewable
energies) where the use of gases is vital to the innovation of production
processes.
Technical Gases Business
Specialty and medicinal gases and services
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Production SitesThe company
established a 50%
joint venture with an
important Indian
partner (that has 25%
of CO2 market share)
for the production and
distribution of
technical gases.
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• 34 primary production sites:
ASU Oxygen, Nitrogen, Argon,
Hydrogen, Carbon Dioxide,
Acetylene, Nitrous Oxyde:
units that produce gases from
row materials (electric energy,
atmospheric air, natural gas,
calcium carbide and
ammonium nitrate).
• 54 secondary transformation
sites (filling station): units that
are dedicated to filling activity,
storage and distribution of gas
in general. Moreover they
produce ultra high purity
gases and gas mixtures.
The Home Care Business
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The Home Care Business
• In the second half of the eighties, SOL seized a new market div ersification opportunity by
entering into the Home-Care service sector, synergical with the technical gas sector.
• The Group works through the VIVISOL Group, which supplies technologically advanced home
care services to patients for the treatment of chronic patho logies.
• VIVISOL manages the complete patient care from the delivery of medic al equipment and drugs,
performed by specialized home care professionals, to the pro vision of qualified medical and
nursing services, as well as tele-monitoring services and e mergency management.
• The company operates in 10 leading
countries of the European Union and in
Turkey, with over 60 offices employing
over 1.250 employees and serving more
than 250.000 patients daily.
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Home Care Business
Home care respiratory assistance
Other home care assistance
Home care equipment
Respiratory home-care services concern the home delivery t opatients of oxygen or enriched air and other services such asventilation, diagnosis of pulmonary pathologies and thera pyof respiratory disorders.
The other home-care services include telemedicine service s,artificial nutrition, integrated home-care service in therespiratory framework and in monitoring child respiratorydisorders.
VIVISOL markets also equipment intended for the diagnosisand therapy of the above-mentioned pathologies and itscustomers include hospitals, pharmacists, laboratories,clinics and doctors.
� Long term oxygen therapy
� Mechanical ventilation therapy
� Assistance to patients undergoing oxygen therapy during travels ( VIVITRAVEL)
� Diagnosis and treatment of sleep disorder conditions
� Home and traveling oxygen therapy equipments
� Ventilation equipment
� Instruments and accessories for diagnosis and aerosol treatment
� Home aids
� Home care artificial nutrition
� Integrated home care services
� Remote monitoring and diagnosis of respiration conditions
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Home Care Business
• VIVISOL has been able to
growth over the 6% in 2013,
with an EBITDA margin higher
than 21%.
• The Group is continuing to
invest significantly in this
business.
Hone Care business
(M€)
FY2013 FY2012 YoY
Sales 281 265 + 6,1%
EBITDA 61 60 + 3,2%
EBITDA % 21,9% 22,5% - 0,6%
Investments 34 46 -26%
SOL Group 2013 Total revenues
Home Care47 %
75,888,9
102,3121,9
142,7
264,9281,2
213,4238,8
160,3182,5
0
50
100
150
200
250
300
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mil
lion
s Eu
ro
10 years Sales in Home Care 2003 - 2013
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Home Care Business
Key growth drivers:
• Aging population – demographics
• Restructuring of Health Care Systems through
de-hospitalization and home care
• Developments in portable medical technologies
• Better quality of life for Patients at home
• Increasing of respiratory and chronic pathologies
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Home Care - VIVISOL branches
VIVISOL is present in 10
leading countries of the
European Union and
Turkey with over 60
branches.
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Turkey
Home Care Business
VIVISOL Belgium - Lessines
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The Hydro Energy Business
16 16
• Leveraging on its core business
development in the Eastern Europe , SOL
entered into the Hydro-Energy sector.
• The industrial gas sector, is one of the
most energy intensive one. This
characteristic supported the Group
decision to invest in the Hydro-Energy
sector in order to enjoy synergies with its
Industrial Gases Business.
The Hydro Energy Business
• Currently the company owns and
operates 5 hydro-electric power plants in
Slovenia (about 50 Million KWh/year), 2
plants in Albania; 4 plants in Macedonia
(2 are under construction).
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The Biotechnology Business
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• SOL Group is active in supplying biotechnological equipment
and services to hospitals, clinics and laboratories (cryobanks,
cellfactories, cryomanagement, cryotransportation)
• With BIOTECHSOL is active in the area of tissue and stem cells
banking and biological tissues transportation.
• With the recent ( 2012) acquisition of the majority of DIATHEVA,
SOL Group is active in drug discovery and drug delivery
The Biotechnology Business
(recombinant monoclonal antibodies),
molecular diagnostic, GMP production
of recombinant proteins
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0
100
200
300
400
500
600
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013
SOL Group: 30 years Turnover (1983-2013)
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1983= 28,0 M€
1993=107,4 M€
2003=298,5 M€
2013=596,3 M€
298,5321,9
346,0
393,6
427,1
460,0 462,6
518,9
555,7583,0 596,3
0
50
100
150
200
250
300
350
400
450
500
550
600
650
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mil
lion
s Eu
ro
SOL Group: consolidated results (2003 – 2013)
Sales
Cash Flow
50,0 54,2 56,3 60,9
75,787,6
81,792,6 97,0 98,5
92,6
16,8% 16,8%16,3%
15,5%
17,7% 17,7%
15,5%
19,0%
17,8% 17,5% 16,9%
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mil
lion
s Eu
ro
0%
5%
10%
15%
20%
% o
n s
ale
s
Cash Flow % on Sales
21
0,060
0,066 0,067 0,068
0,081
0,100 0,1000,1000,095
0,084
0,081
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0,000
0,020
0,040
0,060
0,080
0,100
0,120
5,1%
5,7%
5,2%
4,5%
6,5%
5,1%
3,8%
5,8%
6,3%5,6%
7,8%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
0%
1%
2%
3%
4%
5%
6%
7%
8%
% o
n s
ale
s
10 years net profit and dividend growth
Net profit CAGR + 4,0%
NET PROFIT DPS - Dividend Yield
DPS CAGR + 5,2%
10Y AVERAGE PAY-OUT RATIO 30%
22
0
100
200
300
400
500
600
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
309,2
287,2
Italy Other countries
International Expansion
SOL is focused on its international expansion:
• The Group started its operations in
Italy where it currently has 14
primary production sites.
• In 2013 the Group is present in 22
countries.
• Sol Group is moving towards a
50/50 Italian/International sales
ratio, to be reached in 2014.
10 years sales: 2003-2013 (+201,6 M€)
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Capital Expenditures (2003-2013)
High annual investments
• The Group every year invests
about 15% of its revenues;
• The Sol business requires a high
level of investments for long
term growth options;
• In 2013 almost the 74 % of the
Group investments have been
made outside Italy.
34,2
53,460,9
53,3
69,274,3
63,4 62,1
84,7 85,492,0
11,5%
17,6%
13,5%
16,2%15,4%
14,7%15,2%16,1%16,6%
13,7%
12,0%
0
25
50
75
100
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Mil
lion
s Eu
ro
0%
5%
10%
15%
20%
25%
% o
n s
ale
s
Capex % on sales
10 years of investments on sales 2003-2013
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Shareholding information and market price
Outstanding Shares
• 90.700.000 ordinary shares
• par value: 0,52
Shareholding Structure
• Fumagalli and Annoni
families 60%
Source: Borsa Italiana
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