Bystronic Ag · SIX:BYS
Bystronic — Conzzeta — H1 2019 Earnings Presentation
32 slides from Bystronic's earnings presentation, Aug 9, 2019
Slide 1: 1HY 2019 Results Presentation & Business Update
1HY 2019 Results Presentation & Business Update August 9, 2019
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
Slide 3: Content
Content • Financial results 1HY 2019 Page 4 • Business Update – Sheet Metal Processing – Chemical Specialties Page 12 – Outdoor • Outlook FY 2019 Page 22 • Appendix Page 26 Zurich, August 9, 2019 | 1HY 2019 Results Presentation & Business Update 3
Slide 4: Conzzeta results summary 1HY 2019
Conzzeta results summary 1HY 2019 Broadly in line with expectations Market-driven slowdown from record PY level • Net revenue CHF 770.1 m; -9.7% • Slowdown in capital goods, automotive markets and China • Order entry Sheet Metal Processing CHF 450.6 m; -12.4% Resilient profitability with stable marg
Slide 5: More mixed revenue trend across regions
More mixed revenue trend across regions Decline in Asia and Europe partly offset by growth in America Net revenue by region in CHF m 1HY17 1HY18 1HY19 Growth rates 36.8% -9.7% Europe 9.6% 37.3% -6.9% America 0.2% 33.7% 8.2% 853.3 Asia 68.9% 37.9% -26.5% 240.1 770.1 176.4 623.5 Revenue share 174.1 14
Slide 6: 1HY 2019 Key figures
1HY 2019 Key figures (in CHF m) 1HY19 1HY18 % • On a comparable1) basis, Net revenue -5.6% and EBIT -4.3% Net revenue 770.1 853.3 -9.7% • EBIT margin adjusted stable at 7.6% Operating result (EBIT) 90.5 66.3 36.6% 2 of Total revenue; for continued adjusted 59.9 66.3 -9.6% EBIT margin adjusted ) 7.6%
Slide 7: Group Net revenue
Group Net revenue Headwind from a more challenging operating environment (in CHF m) 1HY 2018 853.3 Lower revenue in Sheet Metal Processing Volume -5.6% -47.7 and Chemical Specialties partly offset by and price continued growth in Outdoor Change in Divestment of Glass Processing segment -2.9% -24.4 s
Slide 8: Group EBIT
Group EBIT Margin on Total revenue stable on an adjusted basis (in CHF m) 1HY 2018 66.3 7.6% Volume and 6.9 product mix Personnel expenses -11.0 OpEx & depreciation +1.2 Change in Scope & FX 27.1 translation 1HY 2019 30.6 11.5% reported 59.9 or 7.6%, excluding divestment gain Zurich, August 9, 2019
Slide 9: Group Cash position
Group Cash position Stable cash position; dividend payment more than offset by Free cash flow (in CHF m) +56 +75 50 50 -52 -57 -7 -14 Operating free cash flow CHF -10.0 m 340 340 Free cash flow CHF +64.5 m Marketable Securities YE 2018 Operating Change in Net investments Acquisitions Dividends Other
Slide 10: Proposal for special dividend to extraordinary general meeting
Proposal for special dividend to extraordinary general meeting Return of CHF 62.1 m excess cash to shareholders Returns 15.9% of cash position … … or less than H1 EPS (A share) (in CHF m) (in CHF) 400 40 389.9 389.6 34.76 300 30 Dividend proposal to 30.00 Extraordinary General Meeting, planned for 2
Slide 11: Content
Content • Financial results 1HY 2019 Page 4 • Business Update – Sheet Metal Processing – Chemical Specialties Page 12 – Outdoor • Outlook FY 2019 Page 22 • Appendix Page 26 Zurich, August 9, 2019 | 1HY 2019 Results Presentation & Business Update 11
Slide 12: Sheet Metal Processing
Sheet Metal Processing Expected slowdown from high level with maintained strong margin CHF m 1HY19 1HY18 % Operational performance Net revenue 448.6 477.3 -6.0% • Comparable net revenue -6.2%; benefits from Operating result CiS (TTM Laser) largely offset by FX 57.8 62.6 -7.8% (EBIT) • Overall resili
Slide 13: Sheet Metal Processing: Result driven by product segment Cutting in Asia
Sheet Metal Processing Result driven by product segment Cutting in Asia Net sales by geography CHF m Net sales by products CHF m 600 600 • Geographies 500 500 – Net sales development driven by 400 153 400 99 113 103 56 61 26% decline in Asia, partly offset 300 300 97 118 by 22% growth in America 200
Slide 14: Sheet Metal Processing: Pushing innovation, including software and automation
Sheet Metal Processing Pushing innovation, including software and automation Laser cutting Portfolio expansion • ByStar Fiber up to 12 kW and XXL format BySmart Fiber for Bystronic’s silver segment • New cutting head and beam shaper • BySmart Fiber and new ByTube 130 • Tilt prevention software • Aut
Slide 15: Chemical Specialties
Chemical Specialties Improved margin despite volume loss CHF m 1HY19 1HY18 % Operational performance Net revenue 181.4 202.8 -10.5% • Comparable net revenue –9.3% Operating result • Adverse revenue trend across market segments 8.6 9.2 -6.4% (EBIT) and regions, driven by challenging automotive market
Slide 16: Deep dive FoamPartner 1/2
Deep dive FoamPartner 1/2 Operational progress and push of innovation 3M Service Award for New converting center polishing pads (Specialties) (Duderstadt site; opening 2020) • Adverse impact from volume loss mitigated by lower raw material costs with net impact at EBIT level of CHF ~0.8 m • FP avera
Slide 17: Deep dive FoamPartner 2/2
Deep dive FoamPartner 2/2 ~50% of sales in Chemical Specialties from automotive Automotive Rolls Transformational industry challenges Leading position with high-quality flexible foam rolls used in vehicle • New trade barriers with impact on supply chains interiors (headliners, door panels, • Ambitio
Slide 18: Outdoor
Outdoor Growth with further margin recovery CHF m 1HY19 1HY18 % Operational performance Net revenue 117.9 111.1 6.2% • Comparable net revenue +6.9% Operating result • Growth across all regions and all channels from -5.3 -6.4 17.7% (EBIT) elevated PY level EBIT margin -4.5% -5.8% 130 bp • Gross margi
Slide 19: 5 year strategy program – progress update
Outdoor 5 year strategy program – progress update Progress update 1H 2019 • Continued to develop digital business, opened new own web shops in France and Norway and started cooperation I Grow in Multichannel Management & Digitalization with additional marketplaces • Further optimized MBS network, no
Slide 20: Outdoor: Collection renewal largely completed
Outdoor Collection renewal largely completed Award-winning product innovation Continued gross margin expansion • Product strategy with premium positioning, Flextron – shoe sole for innovation and enhanced focus, resulting in significant increase of style efficiency slower fatigue • Numerous award wi
Slide 21: Content
Content • Financial results 1HY 2019 Page 4 • Business Update – Sheet Metal Processing – Chemical Specialties Page 12 – Outdoor • Outlook FY 2019 Page 22 • Appendix Page 26 Zurich, August 9, 2019 | 1HY 2019 Results Presentation & Business Update 21
Slide 22: Priorities & outlook for 2019
Priorities & outlook for 2019 Outperform markets for leading positions • Differentiated steering of a diverse business portfolio. Group priorities remain: Market orientation, business excellence, people development, internationalization Demonstrate resilience in a more challenging environment in 201
Slide 23: Q&A
conzzeta Q&A
Slide 24: Thank you very much for your time.
Thank you very much for your time. Ticker symbols Valor 24401750 ISIN CH0244017502 Conzzeta Management AG Phone +41 44 468 24 44 SIX Swiss Exchange CON Giesshuebelstrasse 45 www.conzzeta.com Reuters CONC.S 8045 Zurich, Switzerland Bloomberg CON:SW
Slide 25: Content
Content • Financial results 1HY 2019 Page 4 • Business Update – Sheet Metal Processing – Chemical Specialties Page 14 – Outdoor • Outlook FY 2019 Page 24 • Appendix Page 26 Zurich, August 9, 2019 | 1HY 2019 Results Presentation & Business Update 25
Slide 26: Conzzeta position and financial aspiration
Conzzeta position and financial aspiration Innovation, market orientation and an entrepreneurial spirit Sales growth >5% Mid-term EBIT margin 8-10% targets (p.a.) RONOA >15% Sheet metal Chemical Outdoor processing specialties Grow and lead Grow and build Build and grow global industry more resilient
Slide 27: Base effect from strong 1HY2018
Base effect from strong 1HY2018 (in CHF m) 1HY16 2HY16 2016 1HY17 2HY17 2017 1HY18 2HY18 2018 1HY19 Net revenue 522.7 687.4 1'210.0 623.5 859.3 1'482.8 853.3 928.9 1’782.2 770.1 Total revenue 543.0 667.8 1'210.8 658.6 842.3 1'500.9 875.8 920.8 1’796.7 787.7 EBIT 26.2 58.2 84.4 38.3 84.9 123.2 66.3 8
Slide 28: Income statement
Income statement (in CHF m) 1HY19 1HY18 Net revenue 770.1 853.3 Inventory and own work capitalized 17.6 22.5 Total revenue 787.7 875.8 Other operating income 36.6 4.5 Material expenses -365.8 -444.1 Personnel expenses -198.3 -193.9 Other operating expenses -151.0 -159.3 Depreciation -18.6 -16.7 Oper
Slide 29: Balance sheet
Balance sheet (in CHF m) 1HY19 1HY18 Cash, cash equivalents and securities 389.9 364.1 Receivables 264.5 278.5 Prepaid expenses and accrued income 15.5 11.8 Inventories 327.2 335.8 Property, plant and equipment 257.7 242.9 Financial assets 69.0 66.5 Intangible assets 22.1 14.6 Short-term liabilities
Slide 30: Cash flow statement
Cash flow statement (in CHF m) 1HY19 1HY18 ▲ Cash flow from operating activities before 56.4 67.5 -11.1 change in net working capital Change in net working capital -51.9 -21.9 -30.0 Cash flow from operating activities 4.5 45.6 -41.1 Net investments in property, plant and equipment -17.9 -15.9 -2.0 a
Slide 31: Financial calendar
Financial calendar 2019 August 9 Publication of half-year results 2019, incl Conference Call Conzzeta September 3 Roadshow Paris Kepler Cheuvreux September 19 Investora Conference, Zurich Investora September 27 Extraordinary General Meeting, Zurich Conzzeta October 16 9M Trading Update Conzzeta Octo
Slide 32: Conzzeta Management AG
Ticker symbols Valor 24401750 ISIN CH0244017502 Conzzeta Management AG Phone +41 44 468 24 44 SIX Swiss Exchange CON Giesshuebelstrasse 45 www.conzzeta.com Reuters CONC.S 8045 Zurich, Switzerland Bloomberg CON:SW