Sfs Group Ag · SIX:SFSN
Sfs — H1 2014 Earnings Presentation
22 slides from Sfs's earnings presentation, Aug 13, 2014
Slide 1: Welcome to presentation of 1HY 2014 results
Welcome to presentation of 1HY 2014 results Global precision engineering champion with Swiss heritage Focussed in technology — diversified in end markets Conference call 13 August 2014
Slide 2: Agenda
Agenda 1 Business update on 1HY 2014 2 Financial results of 1HY 2014 3 Q&A Conference call 13 August 2014
Slide 3: Agenda
Agenda 1 Business update on 1HY 2014 2 Financial results of 1HY 2014 3 Q&A Conference call 13 August 2014
Slide 4: 1HY 2014: key messages
1HY 2014: key messages Solid growth in core business of 5.6% accross all segments - reported sales down by 2.6% due to special effects Good demand from Europe (+6.2%) and North America (+4.1%) Overproportional improvement of profitability driven by strong growth with profitable products Pres
Slide 5: Solid and profitable growth
Solid and profitable growth Sales in core business Core business grows by 5.6%; in CHF milion 647 612 +5.6% supported by all segments 1HY 2013 1HY 2014 Special effects negatively impact reported sales (- 2.5%) Sales reported Divesture SFS Locher in CHF milion 662 645 -2.6% Negative currency
Slide 6: Strong growth in the automotive sector
Strong growth in the automotive sector Sales breakdown by industry Construction 1HY 2013 1HY 2014 sector Automotive 24.5% sector 30.0% 26.6% 29.8% Electro and electronics Other industries 24.1% 19.7% 21.4% 23.9% Growth in automotive sector supported by continued positive production figures and new
Slide 7: Segment Engineered Components (1/2)
Segment Engineered Components (1/2) Organic growth of 6% in core business in CHF milion 1HY 2014 1HY 2013 + py Sales 315.5 331.8 -4.9% EBITA 60.6 61.4 -1.3% EBITA margin 18.4 18.4 (as % of operating revenue) Business update Organic growth of 6.0% in core business Significant impact of special ef
Slide 8: Segment Engineered Components (2/2)
Segment Engineered Components (2/2) Acquisition of Indo Schöttle Auto Parts Increase of shareholding from 45% (acquired in 2012) to approx. 86% on 31 July 2014 Consolidation as of 1 July 2014 Founding family >10% of shareholding Strategic benefits: Indo Schöttle in brief Access to Indian m
Slide 9: Segment Fastening Systems
Segment Fastening Systems Significant improvement of profitability in CHF milion 1HY 2014 1HY 2013 + py Sales 167.5 161.3 3.9% EBITA 14.0 7.4 88.5% EBITA margin 7.9 4.5 (as % of operating revenue) Business update Recovery in the European markets Fastening Systems increased its sales in local cur
Slide 10: Segment Distribution & Logistics
Segment Distribution & Logistics Healthy development in continued business in CHF milion 1HY 2014 1HY 2013 + py Sales 162.2 169.0 -4.0% EBITA 14.2 11.8 20.3% EBITA margin 8.6 6.9 (as % of operating revenue) Business update Positive market environment in CH Factoring out divestment activity (Loch
Slide 11: Agenda
Agenda 1 Business update on 1HY 2014 2 Financial results of 1HY 2014 3 Q&A Conference call 13 August 2014
Slide 12: Development of key performance indicators
Development of key performance indicators Sales Contribution margin and operating expenses Operating profitability EBITA Capex Net working capital Free cash flow Net cash and equity ratio Return on net operating assets RONOA Conference call 13 August 2014
Slide 13: Sales bridge 1HY 2013 to 1HY 2014
Sales bridge 1HY 2013 to 1HY 2014 CHF million 700 Sales growth in core business with 5.6% over 1HY 2013 Growth in all three segments 662.1 -13.3 -11.1 -26.9 34.4 645.2 6.0% in Engineered Components 660 6.0% in Fastening Systems 4.6% in Distribution & Logistics 620 Reported sales down by
Slide 14: Contribution margin and operating expenses
Contribution margin and operating expenses % of operating revenue 70% Further strengthening of contribution margin as % of operating revenue Contribution margin (CM) from 61.5% (1HY 2013) to 64.2% 65% (1HY 2014) 60% above-average growth with profitable products 55% change in scope of consolida
Slide 15: Operating profitability EBITA
Operating profitability EBITA EBITA in % of operating revenue EBITA in CHF million 16.0% 400 Operating profit before amortization (EBITA) increased by 11.1%. EBITA margin improved to 13.6%. Main 14.0% 13.3% 13.6% 350 reason: 12.2% Operating leverage with an 11.5% 11.5% increase in contribution m
Slide 16: Capital expenditure
Capital expenditure Capex in % of operating revenue Capex in CHF million 7.0% 140 Capex spending on upper end of target range of 5-6% of operating revenue 5.7% 5.8% 5.9% 6.0% 120 5.3% 5.2% Capex consists if approximately 70% growth and 30% maintenance Capex 5.0% 100 faster than expected ramp u
Slide 17: Net working capital
Net working capital NWC in % of operating revenue NWC Days outstanding 35.0% 280 Normal seasonal peak in NWC at 31.1% 32.1% the end of June 30.1% higher accounts receivables 29.2% 28.7% 30.0% 240 outstanding due to high sales in May and June seasonable build up of inventory 25.0% 200 to compen
Slide 18: Free cash flow
Free cash flow Free cash flow in % of EBITDA CHF million 60.0% 300 Cash generated from operations after capital expenditures amounts 51.7% to CHF 39.4 million 48.4% down on 1HY 2013 by 22% 50.0% 250 due to higher NWC and slightly 42.6% higher Capex 40.0% 200 Cash flow conversion has been cal
Slide 19: Net cash and equity ratio
Net cash and equity ratio Equity in % of assets CHF million 80.0% 76.5% 900 Capital increase strengthened the balance sheet ratios 70.6% Net proceeds from IPO of 70.0% 700 62.7% CHF 311.4 million 57.4% Equity ratio up to 70.6% of total 60.0% 500 assets 54.7% 333.0 Back to a net cash position
Slide 20: Return on net operating assets
Return on net operating assets EBITA in % of NOA NOA in CHF million 20.2% Operational NOA before intangible 20.0% 19.1% 19.4% 4'000 assets RONOA I Operational NOA are indicated 16.9% with red bar only RONOA I is measured at pre-tax 15.5% profit (EBITA) 15.0% 3'000 Due to seasonal peak in cap
Slide 21: Agenda
Agenda 1 Business update on H1 2014 2 Financial results of H1 2014 3 Q&A Conference call 13 August 2014
Slide 22: More than 7000 Employees – One Target
More than 7000 Employees – One Target Create customer benefit with In Depth Technological Competence International Presence Application and Industry Expertise Long-term Relationships Conference call 13 August 2014