Feintool International Holding Ag · SIX:FTON
Feintool International — FY2017 Earnings Presentation
37 slides from Feintool International's earnings presentation, Mar 6, 2018
Slide 1: Annual Media Conference Financial Year 2017
Feintool Group Annual Media Conference Financial Year 2017
Slide 2: Agenda
AGENDA The strategy of the Feintool Group Alexander von Witzleben Review of the financial year 2017 Knut Zimmer Financial results Thomas Bögli Outlook Knut Zimmer Questions and answers All Lunch and discussion All Feintool Annual Report Presentation on March 6, 2018 1
Slide 3: The strategy of the Feintool Group
Alexander von Witzleben The strategy of the Feintool Group
Slide 4: Global car production: prepared for a change of course
GLOBAL CAR PRODUCTION Prepared for a change of course in the automobile industry Number of cars, pick-ups, and vans sold with total weight of up to 3.5 tons, worldwide Number of cars will grow faster than pure electric 120 CAGR +2.3% 102 104 105 109 vehicles through 2023 110 98 100 100 89 91 93 95
Slide 5: Trends in the automotive industry
TRENDS IN THE AUTOMOTIVE INDUSTRY Fineblanking and forming support trends in the automotive industry E-mobility Autonomous driving Shared mobility Networking Sustainability Platforms Automated Lightweight Digitalization of the New drive concepts mechanics (e.g. New product cycles construction, Large
Slide 6: Strategy: continue the fineblanking and forming focus strategy
STRATEGY Continue the fineblanking and forming focus strategy Strong presence in key global automotive markets Use leading position in the applications for seats, drives, safety, and open up new areas of application Expand the value chain with vertical integration Continuously expand the lim
Slide 7: Five-year comparison: long-term positive development
FIVE-YEAR COMPARISON Long-term positive development Sales development EBITDA development Investment development in CHF million in CHF million in CHF million CAGR: +8.9% CAGR: +15.3% CAGR: +13.4% 612.3 83.2 552.2 76.01 74.9 503.4 508.9 (13.6%) 435.7 62.9 61.4 (13.8%) (13.6%) 60.1 47.0 (12.5%) (12.1%)
Slide 8: Organizational change: Knut Zimmer CEO
ORGANIZATIONAL CHANGE Knut Zimmer is the CEO and Head of System Parts since January 1, 2018 Professional history Since August 1, 2017 Head of BU System Parts Europe 2012-2017 Head of BU System Parts Forming Europe 2000-2012 Herzing + Schroth: General Manager 1999 EuroPower Energy / EON: Comm
Slide 9: Organizational change: Norbert Indlekofer recommended for Board
ORGANIZATIONAL CHANGE Norbert Indlekofer recommended for election to the Board of Directors Member of boards of directors of various international companies Professional history 2014-2016 Schaeffler AG: CEO Automotive 2009-2010 Schaeffler Automotive: Chairman of Management 2006-2009 INA-Scha
Slide 10: Review of the financial year 2017
Knut Zimmer Review of the financial year 2017
Slide 11: Market environment: growing faster than the market
MARKET ENVIRONMENT Feintool is again growing faster than the market Worldwide automotive market again on course for growth Feintool continues to gain market share Customers in the automotive market continue to globalize China as a driver of growth in global automobile production Political
Slide 12: System Parts segment: long-term growth course
SYSTEM PARTS SEGMENT Long-term growth course Global production in key global automotive markets Strong focus on the application areas of seats, drives, safety Benefiting from continued growth in automobile production and supporting the trends of the manufacturers Everything from a single sou
Slide 13: Highlights of System Parts segment
HIGHLIGHTS OF SYSTEM PARTS SEGMENT New orders have a positive effect 14.3% sales growth to CHF 548 million Europe drives growth; European plants operating at full capacity Great potential in China; strong market position in Japan Sales and earnings in the US remain stable despite the saturat
Slide 14: System Parts segment: strategic gaps in forming in Asia closed
SYSTEM PARTS SEGMENT Strategic gaps in forming in Asia closed Feintool invests in state-of-the-art forming technology in China; plant designed for five forming presses Second press was commissioned As expected high loss due to capacity bottlenecks and the start- up of new products There are
Slide 15: System Parts: demand for components for hybrid drives
SYSTEM PARTS SEGMENT Increase in demand for fineblanked / formed components for hybrid drives Numerous new start-ups and increased demand for components of hybrid drives Currently 10 components for hybrid applications Five customers (Tier1 and OEM) Total sales of €3.7 million First hybrid
Slide 16: Fineblanking Technology segment
FINEBLANKING TECHNOLOGY SEGMENT Global market leader for fineblanking presses and a driver of innovation Solution provider with high process competency: Tools, presses and systems, services Research and development: Continuously expand the horizons of fineblanking by working with universities
Slide 17: Highlights of Fineblanking Technology segment
HIGHLIGHTS OF FINEBLANKING TECHNOLOGY SEGMENT Solid orders received Good results thanks to strong market position – despite market consolidation, long life-time and high performance of presses Large number of orders received in Europe, existing US customers' move to modernize, market opportuniti
Slide 18: Employees
EMPLOYEES Success factors of competence, motivation and commitment Due to growth in Europe and the acquisition in China, the number of employees has risen by 8.1% to 2,485 81 apprentices at eight locations Dual-system apprenticeship offered in Taicang for toolmakers as well as press and machin
Slide 19: Financial Results
Thomas Bögli Financial Results
Slide 20: Net sales
NET SALES 8.1% organic growth – clearly above the market Sales of CHF 612.3 m in m CHF Net Sales Growth in reporting currency 10.9%, influenced by acquisition in 750 China (CHF 11.6 m) and currency (CHF 3.7 m) 500 250 System Parts reports 89.4% of Group’s sales due to strong 0 growth; Fineblan
Slide 21: EBITDA
EBITDA EBITDA* increases in local currency by 8.6% EBITDA of CHF 83.2 m in m CHF EBITDA EBITDA margin EBITDA margin* declines marginally to 13.6% 100.0 12.1% 13.8% 13.6% 10.0% Significant steel price increases were mostly borne by 50.0 customers, nevertheless it shows a negative margin impact
Slide 22: EBIT
EBIT EBIT margin* increases to 7.6% EBIT of CHF 46.3 m in m CHF EBIT EBIT margin Positive translation difference of CHF 0.5 m; EBIT* growth in 60.0 6.5% 7.5% 7.6% 10.0% local currency 10.7%* 40.0 5.0% 20.0 EBIT margin* increased by 10 basis points, although Tianjin 0.0 0.0% acquisitions (inclu
Slide 23: Net result
NET RESULT Net profit* increases to CHF 27.7 m in m CHF Clearly higher financial cost 50 46.3 due to CHF 2.9 m currency 40 loss 6.2 Net profit of CHF 27.7 m 30 27.7 12.4 Net profit margin of 4.5% 20 Stable dividend of CHF 2.00 per share1) 10 0 EBIT Financial result Taxes Net profit 1) Board
Slide 24: Fineblanking Technology: order entry increased
FINEBLANKING TECHNOLOGY Order entry increased by 17.2% to more than CHF 100 m Stable sales with CHF 91.4 m in m CHF Net sales third Net sales IC EBIT* of CHF 4.0 m and EBIT margin* of 4.4% slightly lower due 120 to product mix changes 80 40 R&D expenditures increased once more to CHF 7.0 m 0 2
Slide 25: System Parts: EBIT margin increased
SYSTEM PARTS EBIT-Margin* increased to 9.6% Sales increased to CHF 547.4 m, organic growth in local in m CHF Net sales currency* of 11.0% (without acquisition) 550 EBIT CHF 52.6 m; EBIT margin of 9.6% 500 450 Europe with significant increase 400 2016 2017 Preparation for further growth and n
Slide 26: Balance sheet: capital expenditures for future growth
BALANCE SHEET Capital expenditures of 9.8% for future growth Assets 12/31/2017 12/31/2016 Difference Total assets increased to in m CHF in m CHF in m CHF CHF 597.4 m Cash and cash equivalents 52.4 92.8 -40.4 Net working capital increased Trade and other receivables 111.5 85.7 25.8 heavily Invent
Slide 27: Balance sheet: solid balance sheet
BALANCE SHEET Solid balance sheet Liabilities 12/31/2017 12/31/2016 Difference Equity CHF 255.2 m in m CHF in m CHF in m CHF Net debt increased to CHF Interest bearing liabilities 134.2 108.9 25.3 81.9 m due to acquisition in Other liabilities 208.0 191.9 16.1 China and high investments Sharehol
Slide 28: Equity: high equity ratio of 42.7%
EQUITY High equity ratio of 42.7% in m CHF 260 27.7 255.2 Successful operations 250 2.6 increases equity by 8.9 3.9 CHF 25.3 m 240 229.9 Revaluation of pension fund 230 liabilities and currency effect 220 with positive impact 210 200 190 180 31.12.2016 Net income Dividends Currency effect Revalu
Slide 29: Cash flow
CASH FLOW Operational cash flow Operational cash flow reduced to CHF 38.5 m Cash and cash equivalents & available credit lines Free Cash Flow with CHF 38.6 m negative 160.0 Liquid fund and confirmed open credit lines 140.0 amount to CHF 134.1 m 120.0 100.0 80.0 60.0 40.0 20.0 0.0 31.12.2015 31
Slide 30: Outlook
Knut Zimmer Outlook
Slide 31: Outlook: key projects
OUTLOOK Key projects Increase in capacity: Expansion of the Tianjin plant, first products from the Most plant Vertical integration: Completion of the new heat treatment facility in Ohrdruf Future mobility: Development projects, partly in cooperation with customers and suppliers Research proj
Slide 32: Strategic priorities: expanding horizons
STRATEGIC PRIORITIES Expanding horizons Continue fineblanking and forming focus strategy Integrate Fineblanking Technology as a technology leader in fineblanking for System Parts Expand vertical integration into complementary procedures Strengthen the regions and plants Promote trans-regio
Slide 33: Guidance: continuation of positive business development
GUIDANCE Continuation of positive business development Market environment shaped by political uncertainty We expect sales of CHF 630 - 650 m and an EBIT margin of 7.5% - 8.0% Feintool Annual Report Presentation on March 6, 2018 32
Slide 34: Important dates
AGENDA Important dates 24 April 2018 1st quarter results and General Meeting 22 August 2018 Half-year report 2018 30 October 2018 3rd quarter results 5 March 2019 Annual Media Conference Financial Year 2018 Feintool Annual Report Presentation on March 6, 2018 33
Slide 35: Questions and answers
Feintool Group Questions and answers
Slide 36: Thank you for your attention
Feintool Group Thank you for your attention.
Slide 37: Disclaimer
DISCLAIMER Feintool is confirming its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for t
Feintool International Holding — FY2017 Earnings Presentation on 6ix