Bystronic Ag · SIX:BYS

Bystronic — Conzzeta — FY2017 Earnings Presentation

33 slides from Bystronic's earnings presentation, Mar 20, 2018

  1. Slide 1: 2017 Results Presentation

    2017 Results Presentation Zurich, March 20, 2018

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and half-year report of Conzzeta AG and on the website www.conzzeta.com prevails. Although the greatest possible care was taken with

  3. Slide 3: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 3 2017 Results Presentation, March 20, 2018

  4. Slide 4: Conzzeta 2017 results summary

    Conzzeta 2017 results summary Strong 2nd half-year Net revenue1) CHF 859.3 m, +25.0% vs 2nd half 2016, driven by investment goods and Mammut Full-year results with strong sales growth and enhanced profitability Net revenue1) CHF 1’482.8 m, +22.5%  Comparable2) growth +14.3% Operating result (EBIT)

  5. Slide 5: Continuously driving internationalization & market orientation; Net revenue in Asia +95.5%

    Continuously driving internationalization & market orientation; Net revenue in Asia +95.5% vs YE 2015 Conzzeta Net revenue by region in CHF m Group +31.7% 1'482.8 2017 growth rates in % 1'210.1 428.8 1'126.1 Reported Comparable 222.4 293.5 264.4 231.7 244.7 Group 22.5 14.3 Asia 44.1 23.7 672.1 671.8

  6. Slide 6: Consistent strategy execution with enhanced revenue contribution from defined growth segments

    Consistent strategy execution with enhanced revenue contribution from defined growth segments 2015 2017 18% revenue split 50% ~24% revenue split ~54% by segment pro forma1) YE 2015 YE 2017 YE 2017 YE 2018 Sheet Metal Chemical Sporting Glass Grow Grow Build Improve Processing Specialties Goods Proces

  7. Slide 7: Sheet Metal Processing with very strong momentum

    Sheet Metal Processing with very strong momentum CHF m 2017 2016 ∆ Operational performance  Comparable net revenue +23.7% with Net revenue 856.1 650.9 +31.5% double-digit growth across all regions Operating  Continuously high level of innovation 98.0 63.0 +55.5% result (EBIT)  Strong demand for n

  8. Slide 8: Sheet Metal Processing with significant CAPEX program for 2018 / 2019

    Sheet Metal Processing with significant CAPEX program for 2018 / 2019 Building a resilient global footprint OPEX and CAPEX investments to capture growth opportunities globally, to reduce dependency from regional cycles and to mitigate continued competitive price pressure 2018 / 2019 new experience &

  9. Slide 9: Sheet Metal Processing – complementing product offering with acquisition of TTM Laser S.p.A.

    Sheet Metal Processing – complementing product offering with acquisition of TTM Laser S.p.A., as announced today  Bolt-on acquisition; closing within next weeks  Specialist for cutting tubes and profiles  In operation since 2001  40 employees with EUR ~14 m sales in 2017 Deepening Bystronic’s so

  10. Slide 10: Sporting Goods with notably better 2HY EBIT performance

    Sporting Goods with notably better 2HY EBIT performance CHF m 2017 2016 ∆ Operational performance  Net revenue including reduction of Net revenue 228.6 232.9 -1.9% CHF 9.5 m low-margin sales to support Operating premium position 0.1 1.2 -91.7% result (EBIT)  Notably better 2HY EBIT performance of

  11. Slide 11: Strategy program overview – build retail capabilities & wholesale excellence

    Strategy program overview – build retail capabilities & wholesale excellence as response to competitive pressure and change in client behavior Multichannel Management & Digitalization  Deepening relationships with selected wholesale partners I  Strengthening and enhancing direct to consumer busine

  12. Slide 12: Sporting Goods – update on milestone achievements

    Sporting Goods – update on milestone achievements Overall on track to deliver on 5 year strategy program  Continued cooperative efforts to enhance wholesale floor space productivity  Initial benefits from strengthened retail capabilities  Enhanced e-commerce business from virtually zero to CHF 14

  13. Slide 13: Chemical Specialties with lower operating result masked by one-off gain

    Chemical Specialties with lower operating result masked by one-off gain Operational performance CHF m 2017 2016 ∆  Comparable net revenue +4.9%, Net revenue 279.2 219.7 +27.1% Otto Bock Kunststoff consolidated as of September 1, 2017 Operating result (EBIT) 24.8 23.1 +7.4%  EBIT margin excluding C

  14. Slide 14: Chemical Specialties – deep dive on FoamPartner raw material situation

    Chemical Specialties – deep dive on FoamPartner raw material situation Market prices TDI / MDI - (Eur / Kg)1) 4.0  High raw material prices persisted 3.5 throughout 2017, expected easing 3.0 in 2HY did not materialize 2.5  Pricing measures launched in 2017 TDI 2.0 not sufficient; mitigation of cos

  15. Slide 15: Glass Processing with accelerated momentum in 2HY

    Glass Processing with accelerated momentum in 2 HY Operational performance CHF m 2017 2016 ∆  Accelerated momentum in 2HY17 in Net revenue 119.3 106.9 +11.6% regard to net revenue and order entry  EBIT favorably impacted by reduced Operating 6.3 1.0 +530% cost base in German manufacturing site res

  16. Slide 16: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 16 2017 Results Presentation, March 20, 2018

  17. Slide 17: Consolidated income statement

    Consolidated income statement (in CHF m) 2017 2016 ∆ % Net revenue1) 1’482.8 1'210.0 +22.5 ∆ Inventory and own work capitalized 18.1 0.8 Total revenue1) 1‘500.9 100% 1'210.8 100% +24.0 Other operating income 18.2 4.3 Cost of materials -740.8 -574.2 Personnel expenses -339.5 -304.1 Other operating ex

  18. Slide 18: Net revenue driven by organic growth as well as M&A within growth segments

    Net revenue driven by organic growth as well as M&A within growth segments (in CHF m) 2016 1’210.0 Volume Net revenue comparable +14.3% +173.7 and price Change in +8.6% +104.6 scope FX -0.4% -5.5 translation 2017 1’482.8 Change in Scope: DNE Laser and FMG within Sheet Metal Processing; Otto Bock Kun

  19. Slide 19: Net revenue by reporting segment

    Net revenue by reporting segment – Investment goods with double-digit comparable growth 1000 +31.5% ∆ % reported +23.7% ∆ % comparable1) 800 856.1 600 650.9 400 +27.1% -1.9% +4.9% -1.7% 279.2 +11.6% 200 232.9 228.6 219.7 +11.8% 106.9 119.3 0 Sheet Metal Sporting Goods Chemical Glass Processing Proce

  20. Slide 20: Adj. EBIT-margin at 7.6%, driven by profitable growth and strategic initiatives

    Adj. EBIT-margin at 7.6%, driven by profitable growth and strategic initiatives (in CHF m) 2016 reported 84.4 7.0% +7.9 restructuring Volume and +83.5 product mix Personnel -20.6 expenses OpEx & -46.9 depriciation Change in +14.0 scope & FX 2017 adjusted 114.4 7.6% One-off +8.8 divestment gain 2017

  21. Slide 21: Group result

    Group result (in CHF m) 2017 2016 Operating result (EBIT) 123.2 8.2% 84.4 7.0% Financial result1) 2.1 0.5 Taxes -27.9 -21.0 Group result 97.4 6.5% 63.9 5.3% Attributable to Conzzeta shareholders 83.7 60.2 Attributable to minority interests 13.7 3.7 Earnings per registered share A 40.47 29.10  Finan

  22. Slide 22: Strong 2HY 2017, driven by both machinery businesses and Sporting Goods

    Strong 2 HY 2017, driven by both machinery businesses and Sporting Goods 1HY 2HY 1HY 2HY 1HY 2HY (in CHF m) 20151) 20151) 20151) 2016 2016 2016 2017 2017 2017 Net revenue 531.0 595.1 1’126.1 522.7 687.4 1’210.0 623.5 859.3 1’482.8 Total revenue 541.0 582.8 1’123.8 543.0 667.8 1’210.8 658.6 842.3 1’5

  23. Slide 23: Cash flow statement

    Cash flow statement 2017 2016 ∆ abs. Cash flow from operating activities before change 116.6 88.0 +28.6 in net working capital Change in net working capital -22.5 8.0 -30.5 Cash flow from operating activities 94.1 96.0 -1.9 Net investments in property, plant -35.8 -22.9 -12.9 and equipment and intan

  24. Slide 24: Operating free cash flow driven by volume growth and increased Capex

    Operating free cash flow driven by volume growth and increased Capex (in CHF m) +117 -23 -29 -161 +50 470 -23 -2 +50 Operating free cash flow 349 CHF 65 m Free cash flow CHF -96m 2016 Operating Change Investment in Acquisitions Dividend Other, incl. 2017 Liquidity cash flow in NWC fixed assets Dives

  25. Slide 25: Balance sheet

    Balance sheet (in CHF m) 2017 2016 Cash, cash equivalents and securities 399.1 519.8 Receivables 295.0 211.3 Prepaid expenses and accrued income 9.4 6.6 Inventories 290.1 239.5 Property, plant and equipment 243.4 199.4 Financial assets 70.9 70.4 Intangible assets 15.4 8.4 Short-term liabilities 366.

  26. Slide 26: RONOA reflecting overall further improved capital efficiency

    RONOA1) reflecting overall further improved capital efficiency Return on net operating assets (RONOA2)) 500 15.6 % 19.5%1) 100 400 80  Avg. NOA of CHF 446.2 m, or 29.7% of 300 60 Total revenue (PY 33.6%) , reflecting M&A and improved operating efficiency 200 40  Net working capital of CHF 271.8 m,

  27. Slide 27: Dividend proposal consistent with policy

    Dividend proposal consistent with policy Earnings per share A1) (CHF) Dividend 2016 and Dividend proposal 2017 (CHF) Pay-out ratio 38% 40% 40.47 16.00 29.10 11.00 32%1) 61%1) 35%1) 38%1) 2016 2017 2016 2017 1) Average # shares 2016: 1’826’212; 2017:1’824’159. Page 27 2017 Results Presentation, March

  28. Slide 28: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 28 2017 Results Presentation, March 20, 2018

  29. Slide 29: Outlook 2018: Moving towards EBIT margin aspiration

    Outlook 2018: Moving towards EBIT margin aspiration In 2017, growth and RONOA reasonably within range Conzzeta of aspiration – enhanced focus on EBIT margin EBIT* performance history 120 12% 100 10% EBIT Margin Aspiration 80 8% 60 6% 40 4% 20 2% 0 0% 2009 2011 2013 2015 2017 2018 EBIT CHF m (lha) EB

  30. Slide 30: We aim for leading market positions

    We aim for leading market positions 1. Regional growth strategies  In Asia and North America we can make the difference 2. Client segmentation  Gold / Silver / Bronze – new opportunities to be captured 3. Innovation & digitalization  Across all dimensions – products, services, processes 4. Portfo

  31. Slide 31: Conzzeta priorities & outlook for 2018

    Conzzeta priorities & outlook for 2018  Conzzeta with innovative product portfolio & financial strength  Consistent strategy execution  CEO agenda remains unchanged 1. Market orientation 2. Operational excellence 3. People development 4. Internationalization  Differentiated steering – Business U

  32. Slide 32: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 32 2017 Results Presentation, March 20, 2018

  33. Slide 33: Conzzeta AG

    Conzzeta AG Giesshuebelstrasse 45 CH-8045 Zurich www.conzzeta.com Phone +41 44 468 24 44 investor@conzzeta.com Seite 33 2017 Results Presentation, Konzernleitungs-Sitzung vomMarch 9. November 20, 2018 2011 - Robert Suter

Conzzeta — FY2017 Earnings Presentation on 6ix