Rieter Holding Ag · SIX:RIEN
Rieter — Investor Update 2023, Media and Investor Presentation
17 slides from Rieter's conference presentation, Oct 20, 2023
Slide 1: Investor Update 2023
Investor Update 2023 Media and Investor Presentation, October 20, 2023 Thomas Oetterli, Group CEO Oliver Streuli, Group CFO
Slide 2: Key Messages
Key Messages ‒ “Next Level” performance program on track ‒ Order intake of CHF 127.2 million in the third quarter, CHF 452.2 million after nine months ‒ Sales of CHF 334.7 million in the third quarter, CHF 1 092.9 million after nine months ‒ Order backlog of around CHF 900 million as of September 30
Slide 3: Performance Program "Next Level" on Track
Performance Program “Next Level” on Track Next Level is focusing on key performance potentials Topic Measures ‒ Increase After Sales and Components sales Sales Excellence ‒ Adapt sales process to capture market opportunities ‒ Push Net Promoter Score ‒ Implement continuous cost leadership organizati
Slide 4: Reduction of Positions
Reduction of Positions ‒ Net reduction of around 300 positions in overhead functions. ‒ Negotiations with works council in Ingolstadt (Germany) concluded, closing of office by the end of December 2023 agreed ‒ Negotiations with employee representatives in Winterthur (Switzerland) concluded, reductio
Slide 5: Next Level Cost and Impact
Next Level Cost and Impact Next Level performance program is focusing on key performance potentials Topic Estimated impact Costs ‒ One-time costs of CHF 45 to 50 million expected in 2023 Timing ‒ Most of the program initiatives shall be implemented in 2023 Return ‒ Expected benefit of around CHF 80
Slide 6: ITMA 2023 in Milano
ITMA 2023 in Milano ‒ High interest in the products presented at ITMA (e.g. digitization and automation) ‒ Average capacity utilization rate of spinning mills at around 70 percent as brands and retailers are reluctant to increase orders ‒ Customers hesitate to purchase new machines due to increased
Slide 7: Order Intake by Business Group – Nine Months
Order Intake by Business Group – Nine Months CHF million -59% ‒ Weak demand for new equipment due to high 1’096 inflation rate, investment sentiment impacted by risks/uncertainties (financing costs, rising energy and raw material prices) ‒ Lower capacity utilization of spinning mills resulting 696 i
Slide 8: Sales by Business Group – Nine Months
Sales by Business Group – Nine Months CHF million +11% ‒ Business Group Machines & Systems +18% 1’093 987 ‒ Business Group Components -11% ‒ Business Group After Sales +13% 750 634 233 207 121 137 Jan.-Sep. 2022 Jan.-Sep. 2023 Machines & Systems Components After Sales Investor Update 2023, Media & I
Slide 9: Order Backlog Extends into the Year 2024
Order Backlog Extends into the Year 2024 ‒ Order backlog of around CHF 900 million as of September 30, 2023 extends into the year 2024 ‒ As in the previous year, cancellations in the reporting period were around 5% of the order backlog ‒ Rieter anticipates the order intake in the fourth quarter 2023
Slide 10: Rieter Site Sales Process Successfully Completed
Rieter Site Sales Process Successfully Completed ‒ Sale of site in Winterthur successfully completed on September 26, 2023 ‒ Sales price of CHF 96 million received ‒ Extraordinary profit contribution on EBIT of CHF 70-75 million expected Net debt substantially reduced and equity ratio increased vers
Slide 11: Outlook for the Full Year 2023 Confirmed
Outlook for the Full Year 2023 Confirmed ‒ As announced on July 20, 2023, in view of the economic situation and the ongoing cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not anticipated until the end of 2023 at the earl
Slide 12: Financial Calendar
Financial Calendar Publication of sales 2023 January 24, 2024 Deadline for proposals regarding the agenda of the Annual General Meeting February 23, 2024 Results press conference 2024 March 13, 2024 Annual General Meeting 2024 April 17, 2024 Semi-Annual Report 2024 July 18, 2024 Investor Update 2024
Slide 13: 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 14: Appendix
Appendix Investor Update 2023, Media & Investor Presentation . October 20, 2023 Page 14
Slide 15: Sales by Business Group
Sales by Business Group CHF million January – January – Difference Difference September 2022 September 2023 adjusted1 Rieter 987.4 1 092.9 11% 13% Machines & Systems 634.3 749.6 18% 21% Components 232.6 206.8 -11% -9% After Sales 120.5 136.5 13% 18% 1 Adjusted for currency effects Investor Update 20
Slide 16: Order Intake by Business Group
Order Intake by Business Group CHF million January – January – Difference Difference September 2022 September 2023 adjusted1 Rieter 1 095.8 452.2 -59% -57% Machines & Systems 696.2 148.8 -79% -77% Components 248.1 183.6 -26% -25% After Sales 151.5 119.8 -21% -17% 1 Adjusted for currency effects Inve
Slide 17: Next Level Shall Create Long-Term Value for Stakeholders
Next Level Shall Create Long-Term Value for Stakeholders Next Level EBIT margin ambition after full implementation CHF million ~12% HIGH at ~1’600 sales ~8% ~8% MID at ~1’300 sales ~4% ~4% 0% LOW at ~1’000 sales Investor Update 2023, Media & Investor Presentation . October 20, 2023 Page 17
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