Slide 1: Results 2018 Media and Investor Presentation
Results 2018 . Media . . and . Investor . . . Presentation, . . . . March . . 13, . 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 2: Agenda
Agenda 1. Key Messages 2018 2. Financial Results 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results 2018, Media and Investor Presentation, March 13, 2019 2
Slide 3: Key Messages 2018
Key Messages 2018 • Weak market environment leads to 17% decline in order intake • Sales increase by 11% to CHF 1 075 million • EBIT margin of 4% and net income of 3% of sales • Free cash flow of CHF 63.6 million • Proposed dividend of CHF 5.00 per share Results 2018, Media and Investor Presentation
Slide 4: Agenda
Agenda 1. Key Messages 2018 2. Financial Results 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results 2018, Media and Investor Presentation, March 13, 2019 4
Slide 5: Financial Highlights 2018
Financial Highlights 2018 Increase in sales by 11%; strong free cash flow of CHF 63.6 million CHF million, except dividend Weak market environment in second semester, Order Intake 868.8 -17% particularly in fourth quarter Sales 1 075.2 +11% Strong sales in second semester of CHF 559.9 million 7.8% P
Slide 6: Order Intake by Business Group
Order Intake by Business Group Order intake declined by 17% in 2018 CHF million • Order intake declined to CHF 868.8 million -17% 1 100 1 051 (2017: CHF 1 051.5 million) 1 000 • Business Group Machines & Systems received CHF 468.3 million orders (-30% vs. 2017) 900 869 • Business Group After Sales w
Slide 7: Sales at CHF 1 075 million - stronger second semester
Sales by Business Group Sales at CHF 1 075 million ‒ stronger second semester +11% CHF million CHF million 1 100 1 075 1 100 1 000 966 1 000 900 900 800 800 669 700 700 +9% 590 600 600 560 515 500 500 400 400 365 304 144 300 146 300 200 200 74 70 230 262 100 100 137 125 0 0 2017 2018 HY1 2018 HY2 20
Slide 8: Operating Result (EBIT) before Restructuring Charges
Operating Result (EBIT) before Restructuring Charges EBIT before restructuring charges at 4.0% of sales In % of 5.4% 4.0% sales • Business Group Machines & Systems: decrease in operating profitability to -1.2% of sales (2017: 0.1%) CHF million due in particular to the less favorable product mix 52 6
Slide 9: Net Profit and Dividend Proposal
Net Profit and Dividend Proposal Net profit margin of 3.0%; attractive dividend proposal Net profit Dividend In % of 1.4% 3.0% sales CHF million +141% CHF 35 6 32 30 5 5 5 25 4 20 3 15 13 2 10 5 1 0 0 2017 2018 2017 2018 Proposal EPS in CHF 2.92 7.07 Payout ratio 171% 71% RONA 3.0% 6.6% Dividend yie
Slide 10: Balance Sheet
Balance Sheet Improvement of net liquidity in the second semester • Net working capital decreased to 31/12/ 31/12/ CHF million CHF 0.3 million (December 31, 2017: 2018 2017 CHF 37.9 million) Total assets 1 002.3 1 048.2 • Net liquidity improved to CHF 150.2 million mainly affected by free cash flow
Slide 11: Net Working Capital
Net Working Capital Decrease in net working capital Net working capital decreased compared 31/12/ 31/12/ to prior year mainly due to: CHF million 2018 2017 • Lower advance payments as a result of Inventories 186.6 192.4 lower order backlog at year end • Improvements in all other net working Trade re
Slide 12: Free Cash Flow
Free Cash Flow Free cash flow amounted to CHF 63.6 million in 2018 CHF million 2018 2017 Free cash flow amounted to CHF 63.6 Net profit 32.0 13.3 million in 2018 and was mainly driven by the following effects: Interest expense (net) 2.4 1.8 • Higher net profit compared to previous Tax expense 10.6 2
Slide 13: Changes in Workforce
Changes in Workforce Decrease in workforce mainly a result of the restructuring in Ingolstadt Temporaries in % 12.3% 10.6% FTE1 5 982 5 745 736 611 5 246 5 134 2017 2018 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including temporary employees Results 2018, Media and I
Slide 14: Agenda
Agenda 1. Key Messages 2018 2. Financial Results 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Results 2018, Media and Investor Presentation, March 13, 2019 14
Slide 15: ITMA 2019 in Barcelona
ITMA 2019 in Barcelona The next milestone in Rieter’s innovation program June 20-26, 2019 Results 2018, Media and Investor Presentation, March 13, 2019 15
Slide 16: Rieter Property in Ingolstadt/Germany
Rieter Property in Ingolstadt/Germany Transfer of production completed; sale of real estate expected in 2019 • Production fully transferred to the Czech Republic • Rieter Group sells its real estate in Ingolstadt • Signing took place in December 2018 • Rieter anticipates completing the transaction d
Slide 17: Outlook
Outlook • The weak market environment also led to low demand in the first two months of 2019. • Rieter therefore expects a significant decline in sales, EBIT and net profit for both the first half of the year and the 2019 financial year (before extraordinary income from the sale of the property in I
Slide 18: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever
Slide 19: Appendix
Appendix Results 2018, Media and Investor Presentation, March 13, 2019 19
Slide 20: Values and Principles
Values and Principles Results 2018, Media and Investor Presentation, March 13, 2019 20
Slide 21: Sales Development by Region
Sales Development by Region Growth in Asian countries and Turkey CHF million • In Asian countries¹ (Uzbekistan with strong sales 1 100 1 075 CHF 144.1 million), Rieter increased sales 47 Europe to CHF 433.9 million (+36% vs. 2017) 1 000 966 36 Africa 46 109 • Sales in China fell to CHF 148.6 million
Slide 22: Financial Key Figures
Financial Key Figures Stronger profitability and cash flows in second semester CHF million FY 2018 HY2 2018 HY1 2018 FY 2017 Order Intake 868.8 357.0 511.8 1 051.5 Sales 1 075.2 559.9 515.3 965.6 EBITDA before restr. charges 83.8 49.2 34.6 94.6 EBITDA margin (of sales) 7.8% 8.8% 6.7% 9.8% EBIT befor
Slide 23: Key Data per Share
Key Data per Share Rieter registered shares of CHF 5 nominal value Bloomberg: RIEN SW; Thompson Reuters: RIEN.S 31/12/2018 30/06/2018 31/12/2017 Shares outstanding excl. own shares 4 480 956 4 526 037 4 524 754 (end of period) Average shares (of period) 4 514 846 4 526 055 4 524 273 Share price (end
Slide 24: Return on Net Assets (RONA)
Return on Net Assets (RONA) RONA of 6.6% in 2018 CHF million 31/12/2018 31/12/2017 2018 Change Non-current assets 424.5 450.0 -25.5 Inventories and receivables 320.7 353.8 -33.1 Liquid funds 257.1 244.4 12.7 Total assets 1 002.3 1 048.2 -45.9 Non-current liabilities (excl. debt) -128.4 -160.9 32.5 C