R. Stahl Aktiengesellschaft · XETR:RSL2

R. Stahl Aktiengesellschaft — R. Stahl — Deutsches Eigenkapitalforum 2021

53 slides from R. Stahl Aktiengesellschaft's conference presentation, November 2021

  1. Slide 1: Technology – Efficiency – Growth: Equity Story November 2021

    Technology – Efficiency – Growth Equity Story November 2021

  2. Slide 2: Disclaimer

    Disclaimer This presentation was prepared by R. STAHL AG and is solely for information purposes. It may not be reproduced, distributed or published without the prior consent of R. STAHL AG. This presentation contains forward-looking statements. Such forward-looking statements are based on certain as

  3. Slide 3: Agenda

    Agenda 1 Company Overview 2 Driving Strategy: EXcellence 2023 3 Business Update 4 Appendix Equity Story November 2021 3

  4. Slide 4: R. STAHL Has a Tradition of More Than 140 Years

    R. STAHL Has a Tradition of More Than 140 Years in Pioneering Mechanical And Electr(on)ical Technologies 1876 Rafael Stahl founded the company 1890 World's first circular loom with electric individual drive 1926 Development and production of explosion-protected, electrical control switches and contr

  5. Slide 5: R. STAHL Today – A Leading Global Player With a 100% Focus on Electrical Explosion Protection

    R. STAHL Today – A Leading Global Player With a 100% Focus on Electrical Explosion Protection Global market shares of relevant competitors* Market #2 in Europe in explosion protection, Position #3 worldwide Total Markets Oil & Gas, Chemicals, Pharma, Market &Customers Food & Beverage, Shipbuilding S

  6. Slide 6: Explosions Occur When Mixtures of Combustible Substances and Oxygen Meet an Ignition Source

    Explosions Occur When Mixtures of Combustible Substances and Oxygen Meet an Ignition Source Basic principle of explosions 1. Combustible substances Explosive range  Gases (e. g. natural gas, hydrogen etc.)  Liquids (e. g. gasoline, alcohol, solvents etc.) 100 Concentration of 0  Dispersed solids

  7. Slide 7: Electrical Explosion Protection is a Niche Application With High Barriers to Entry

    Electrical Explosion Protection is a Niche Application With High Barriers to Entry Global Electric Industry by Application Total market €4.4 tn 1) Total market share of Market Characteristics 12% Automation €1.7 tn 2) electrical explosion key applications 3% Lighting of electrical protection:  Acco

  8. Slide 8: We Serve Process Industries That Handle Potentially Explosive Dusts, Liquids And Gases

    We Serve Process Industries That Handle Potentially Explosive Dusts, Liquids And Gases World market by industry sectors – IECEx/ATEX 2017-2022 No impacts from COVID-19 included Other CAGR (2017-2022 E) Oil and gas 2) 16 20 Oil and gas 5.4% Shipbuilding Petrochemical sector 4.8% 5 Chemical industry 3

  9. Slide 9: We Are Experts in All Major Technologies Used in Electrical Explosion Protection

    We Are Experts in All Major Technologies Used in Electrical Explosion Protection Position Conceptual approach Solution Technology R. STAHL not part of electrical explosion protection 1. Prevent formation  Avoid combustible substances (replacement) of explosive atmospheres not part of electrical exp

  10. Slide 10: Complete, Innovative And Market Leading Portfolio of Explosion Proof Products

    R. STAHL Offers Its Customers a Complete, Innovative And Market Leading Portfolio of Explosion Proof Products Electromechanical Light fittings & signaling Network & automation Human machine components and solutions devices products and solutions interfaces  Connectors  #1 in LED technology  Field

  11. Slide 11: Our Strong Market Position Is Based on Our Leading Products and Value Adding Systems and Services

    Our Strong Market Position Is Based on Our Leading Products and Value Adding Systems and Services Product offering R. STAHL Components Systems taylormade orders Services cross-selling potential support for Explosion applications and protection maintenance training and consulting market cross-selling

  12. Slide 12: We Have a Global Presence to Serve Our International Customers

    We Have a Global Presence to Serve Our International Customers Production and sales network R. STAHL Subsidiaries Asia R. STAHL Ex-Proof Shanghai, China Headquarters R. STAHL (P) Ltd. R. STAHL AG Chennai, India Waldenburg, R. STAHL Co. Ltd. Subsidiaries Americas Germany Seoul, Korea R. STAHL Ltd. R.

  13. Slide 13: Agenda Driving Strategy: EXcellence 2023

    Agenda 1 Company Overview 2 Driving Strategy: EXcellene 2023 3 Business Update 4 Appendix Equity Story November 2021 13

  14. Slide 14: Review: Until 2017, Even Strong Sales Growth Did Not Prevent Margin Contraction

    Review: Until 2017, Even Strong Sales Growth Did Not Prevent Our Margin From Continuous Contraction Development of R. STAHL 2009–2020 new CEO started on 01 Jan. 2018 Sales Negative "economies of scale" in Downturn Efficiency program EBITDA €m personnel expenses clearly visible in a declining market

  15. Slide 15: Main Causes of Margin Contraction Were Inefficiencies in Organization, Production, Portfolio and Processes

    Main Causes of Margin Contraction Were Inefficiencies in Organization, Production, Portfolio and Processes Analysis of R. STAHL’s former operating model until 2017:  Global production capacities significantly underutilized; responsibilities not clearly defined  Less than 1/5 of all sales items mad

  16. Slide 16: We Can Build on a Unique Set of Strengths While Addressing Our Significant Challenges

    We Can Build on a Unique Set of Strengths While Addressing Our Significant Challenges Strengths Challenges Market position Organisation and structures  #2 in Europe, #3 worldwide  Complex global in explosion protection organization  Global presence in all key markets  High product complexity  S

  17. Slide 17: With Our Efficiency Program R. STAHL 2020, We Fundamentally Modernize Our Operating Model

    With Our Efficiency Program R. STAHL 2020, We Fundamentally Modernize Our Operating Model Efficiency program “R. STAHL 2020“ Sustainable growth Piktogramm Build a central, globally responsible Group organization Piktogramm Optimize product portfolio  organically  through selective Piktogramm Profe

  18. Slide 18: Today, We Have Central And Lean Structures

    Today, We Have Central And Lean Structures Situation 2017 Status Quo  Decentral holding structure with  Matrix organization with globally unclear responsibilities R. STAHL 2020 responsible Group functions  Partially unprofitable sites  Fewer sites with lower costs Structural Improvements  Unnec

  19. Slide 19: Optimization of Central Processes Yielded Already Significant Efficiency Improvements

    Optimization of Central Processes Yielded Already Significant Efficiency Improvements Situation 2017 Status Quo  Non-standardized processes in  Globally optimized and increasingly many areas R. STAHL 2020 standardized processes  Unclear responsibilities  Clear responsibilities Structural Improve

  20. Slide 20: Continued Harmonization of IT Systems Will Generate Further Efficiency Gains

    Continued Harmonization of IT Systems Will Generate Further Efficiency Gains Situation 2017 Status Quo  Very heterogenous ERP landscape,  Harmonization of ERP systems interfaces managed manually R. STAHL 2020 towards SAP until 2023 on track,  Different software products for target by end of 2020:

  21. Slide 21: Increased Sales Effectiveness Led to an Improved Order Quality

    Increased Sales Effectiveness Led to an Improved Order Quality and – Before COVID-19 – to Higher Order Quantity Quarterly order intake and order quality R. STAHL since Q3 2017 Order intake Material ratio in % of 79 total operating performance 70 70 69 69 62 69 67 68 64 66 61 55 53 39.2 37.7 37.1 35.

  22. Slide 22: R. STAHL 2020 Always Paid Off in the Same Year

    Restructuring Costs Related to Efficiency Program „R. STAHL 2020“ Always Paid Off in the Same Year Operational Improvements* Restructuring Costs related to R. STAHL 2020 (Change of EBITDA pre vs. prior year) €m €m 20 20 7.6 16 6.1 16 12 12 9.4 8.6 Total: 8 Total: 8 €17.0m €14.7m 4 4 0 0 2018 2019 20

  23. Slide 23: Our Focus Is Increasingly on Technology and Growth Again

    While We Continue to Drive Efficiency at All Levels, Our Focus Is Increasingly on Technology and Growth Again R. STAHL 2020: Consolidation & house keeping EXcellence 2023: Growth & strategic development Central Group organization Cultural change Data driven management EFFICIENCY Complexity reduction

  24. Slide 24: Our Strategy Addresses the Full Potential that Digitalization Offers

    Our Strategy Addresses the Full Potential that Digitalization Offers to Our Business and Customers Margin potential from efficiency gains Growth potential from market trends Digital infrastructure and processes Digital products  Harmonization of IT systems (hardware and software) Extend and complem

  25. Slide 25: BDM, Listing & Feed: Strategically Preparing Our Markets

    BDM, Listing & Feed: Strategically Preparing Our Markets Project Lifecycle EPC/DCS/ EPC/DCS/ OEM Installation & Conceptual Pre-FEED FEED OEM Operation Maintenance Detailed Commissioning Procurement Engineering OEM End-user Time for R. STAHL Technology  Spec-In to influence Purchasing  Approved Ven

  26. Slide 26: Megatrends Drive Technologies and Growth in Our Industry

    Megatrends Drive Technologies and Growth in Our Industry Trends Needs Opportunities for R. STAHL Growing need for energy and food:  Oil expected to reach its peak beyond 2030 Population & prosperity growth  Rising number of people  Growth in chemicals, pharma and  Higher standards of living food

  27. Slide 27: Natural Gas Is The Most Eco-friendly Fossil Fuel – And LNG Is

    Natural Gas Is The Most Eco-friendly Fossil Fuel – And LNG Is Set to Become the Dominating Delivery Mechanism Reduction of CO2 emissions: Climate Change  near-term: low-carbon fossils Relative CO2 emissions by energy source (at equal combustion energy) 100% 80% 60% 40% 20% 0% Coal Oil Natural gas /

  28. Slide 28: The Global LNG Market Offers Significant Growth Potential

    The Global LNG Market Offers Significant Growth Potential Over the Next Two Decades Projected global LNG demand until 2040 1) CAGR 2018-2040 mtpa 2) Global 4.0% 800 Asia Pacific and Europe will account for >85% of incremental LNG demand Other 5.9% 700 Europe 4.5% 600 Asia Pacific 3.7% 500 400 300 20

  29. Slide 29: Leverage Our Strong Position in LNG Shipping to Outgrow the LNG Market

    We Aim to Leverage Our Strong Position in LNG Shipping to Outgrow the Overall LNG Market LNG value chain 1) Fuel for trucks and ships Gas field / Gas processsing LNG Liquefaction LNG LNG loading Open LNG receiving LNG Regas- Gas Power Power-to-gas facilities plant tank terminal transportation termin

  30. Slide 30: Explosion Protection Is Key to Hydrogen Technology’s Safety

    Due to the Unique Hazardous Properties of Hydrogen, Explosion Protection Is Key to This Technology’s Safety Reduction of CO2 emissions:  H2 + e-fuels as sustainable energy carrier of the future Climate Change  long-term: carbon-free energy Safety aspects of Hydrogen vs. fossil fuels Value Chain of

  31. Slide 31: Example: Hydrogen Fueling Station With Safety Concept and Equipment by R. STAHL

    Example: Hydrogen Fueling Station With Safety Concept and Equipment by R. STAHL Container solution and functional safety concept Example illustration of permanent and temporary hazardous areas Service Concept • Engineering Service • SIL (safety integrity level) verification • Software assistance • D

  32. Slide 32: Digitalization: We Already Have a Wide Range of Digital Solutions

    Digitalization: We Already Have a Wide Range of Digital Solutions Example of R. STAHL‘s solutions today Control and visualization of process or integration in existing Asset Management System (AMS) Communication protocols: Profinet ModbusTCP Connectivity infrastructure EthernetIP Others Physical lay

  33. Slide 33: R. STAHL Already Offers Digital Solutions to Control Light and Heating Systems

    R. STAHL Already Offers Digital Solutions to Control Light and Heating Systems Example: X-Connect (R. STAHL Tranberg)  R. STAHL is supplier for the first fully electric and autonomous container ship without emissions  Fully automated control of light and heating systems  Control staff can be loca

  34. Slide 34: Agenda Business Update

    Agenda 1 Company Overview 2 Driving Strategy: EXcellence 2023 3 Business Update 4 Appendix Equity Story November 2021 34

  35. Slide 35: FY 2020: Economic Downturn Weighed Heavily on Sales, Cost Control Cushioned Profitability

    FY 2020: Economic Downturn Weighed Heavily on Sales, Cost Control Significantly Cushioned Impact on Profitability Financials Operations €247m Ongoing favourable sales structure Sales (- €28m yoy, -10% yoy) Cost of materials ratio stayed at a healty level (33.7%) driven primarily by demand drop in Oi

  36. Slide 36: Strategy Execution Paid Off in FY 2020 in Several Countries

    Despite Severe Economic Headwinds, Strategy Execution Paid Off in FY 2020 in Several Countries Sales R. STAHL FY 2020 by growth rate vs. FY 2019 Growth rate >0% 0% to -10% <-10% FY 2020: €246.5m Equity Story November 2021 36

  37. Slide 37: FY 2020: Adjusted Labour Capacities Strongly Limited Impact of Lost Sales

    FY 2020: Adjusted Labour Capacities Strongly Limited Impact of Lost Sales on Profitability Key data of Income Statement €m FY 2020 FY 2019 Change Comments Sales 246.5 274.8 -10.3%  Cost of materials down in line with Cost of materials -85.7 -94.0 +8.8% sales, indicating continued healthy Personnel

  38. Slide 38: Over the Past Two Years, We Have Significantly Strengthened the Resilience of Our Business

    Over the Past Two Years, We Have Significantly Strengthened the Resilience of Our Business EBITDA pre break-even1) of R. STAHL 2017–2020 Today, our business is much more robust: €m  Focus on reasonable margins improved order profitability 270  Central Group organization with clear 260 responsibili

  39. Slide 39: Q3 2021: Sales and Earnings Up Again, Procurement Risks and Cost Increases Accelerating

    Q3 2021: Sales and Earnings Up Again, Procurement Risks and Cost Increases Accelerating Financials Operations €62.1m Sales growth driven by robust demand from Sales (+ €2.6m yoy, + 4.3% yoy) pharma and chemicals in Germany driven by strong growth in Asia/Pacific and Germany Impact of higher sales on

  40. Slide 40: Sales Growth of 4.3% YoY in Q3 2021 Driven by Pharma and Chemicals in Germany

    Sales Growth of 4.3% YoY in Q3 2021 Driven by Robust Demand from Pharma and Chemicals in Germany Sales R. STAHL Q3 2021 vs. Q3 2020 by region €m Q3 2021 Q3 2020 Change Germany Germany 18.1 15.5 +16.7% 21% Central region* 24.6 26.8 -8.3% 29% Central region* Americas Americas 6.1 6.0 +2.2% Q3 2021: 10

  41. Slide 41: Q3 2021: Another Quarter of Year-on-Year Demand Growth

    Q3 2021: Another Quarter of Year-on-Year Demand Growth Order intake and order backlog R. STAHL Q3 2019 through Q3 2021 €m Order intake Order backlog Comments  Order intake in Q3 2021 again well 7980 80 above prior year’s level 71 74 69 68  Large investment projects in oil 68 6667 65 64 6568 63 61

  42. Slide 42: Q3 2021: Impact of Higher Sales on Profitability Dampened by Cost Increases

    Q3 2021: Impact of Higher Sales on Profitability Dampened by Cost Increases for Raw Materials and Personnel Key data of Income Statement Q3 2021 Q3 2020 Change Comments €m Sales 62.1 59.6 +4.3%  Cost of materials up 100bp to Change in finished and unfinished 34.6% (Q3 2020: 33.6%) driven by product

  43. Slide 43: Q3 2021: Higher Working Capital and R&D Investments Drove Up Net Debt

    Q3 2021: Higher Working Capital and Continued Investments in R&D Temporarily Drove Up Net Debt Key data of Cash Flow Statement €m Q3 2021 Q3 2020 Change Comments Net profit -0.1 -0.6 +0.5  Other items without cash flow Depreciation and amortization 4.1 4.0 +0.1 impact in Q3 2021 declined due to Oth

  44. Slide 44: FY 2021 Outlook Adapted to Raw Material Bottlenecks and Cost Increases

    FY 2021 Outlook Adapted to Unexpectedly Strong Acceleration of Raw Material Bottlenecks and Cost Increases Guidance FY 2021 Sales expected between €246 million and €250 million EBITDA pre1) to come in between €14 million and €16 million Assumptions:  No major changes in the valuation Free cash flow

  45. Slide 45: Agenda Appendix

    Agenda 1 Company Overview 2 Driving Strategy: EXcellence 2023 3 Business Update 4 Appendix Equity Story November 2021 45

  46. Slide 46: Sales in 9M 2021 Closed the Gap to Prior Year

    Sales in 9M 2021 Closed the Gap to Prior Year Following a Solid Performance in Q3 Sales R. STAHL 9M 2021 vs. 9M 2020 by region €m 9M 2021 9M 2020 Change Germany Germany 49.1 47.3 +3.7% 21% 26% Central region* Central region* 81.3 84.6 -4.0% Americas Americas 16.1 18.6 -13.3% 9% 9M 2021: Asia/Pacific

  47. Slide 47: Earnings Decline in 9M 2021 Driven by Lower Total Operating Performance

    Earnings Decline in 9M 2021 Driven by Lower Total Operating Performance Key data of Income Statement 9M 2021 9M 2020 Change Comments €m Sales 184.8 184.4 0.2%  COVID-19 related delayed order Change in finished and unfinished acceptances in prior year drove products -0.8 5.0 n/a increase of finished

  48. Slide 48: 9M 2021: Lower Net Profit, Higher Working Capital Weigh on Free Cash Flow

    9M 2021: Lower Net Profit, Higher Working Capital And Strategy Driven Investments Temporarily Weigh on Free Cash Flow Key data of Cash Flow Statement €m 9M 2021 9M 2020 Change Comments Net profit -3.8 -3.2 -0.6  Cash flow down in 9M 2021 as a Depreciation and amortization 12.4 12.3 0.1 result of de

  49. Slide 49: FY 2020: Drop in Equity Driven by Net Loss and Pension Provisions

    FY 2020: Drop in Equity Driven by Net Loss and an Adverse Impact of a Declining Interest Rate on Pension Provisions Key Balance Sheet data Assets Equity and Liabilities 31 Dec. 31 Dec. 31 Dec. 31 Dec. €m 2020 2019 Change €m 2020 2019 Change Intangible assets 43.3 41.4 +1.8 Equity 48.1 58.4 -10.3 Pro

  50. Slide 50: Declining Interest Rates Doubled R. STAHL’s Pension Provisions

    Declining Interest Rates Doubled R. STAHL’s Pension Provisions Over the Past Ten Years Impact of interest rate on assessment of R. STAHL’s pension provisions Comments Pension Interest provisions  No new entrants into R. STAHL’s rate Pension Provisions Interest rate year-end €m pension benefit plan

  51. Slide 51: Valuation of the R. STAHL Stock – Facts to Consider

    Valuation of the R. STAHL Stock – Facts to Consider Historic beta factor of RSL 1) Comments Beta  R. STAHL’s average 12m beta factor factor over the past 11 years is 1,00 0.23 0,80  12m beta shows only little variation of +/- 0.3 max since 2010 0,60  R. STAHL’s WACC (before tax) is 0.43 0.40 belo

  52. Slide 52: Issuer, Contact and Additional Information

    Issuer, Contact and Additional Information Issuer and Contact Additional Information Financial Calendar 2021/22 R. STAHL AG ISIN DE000A1PHBB5 24-26 Nov 21 Eigenkapitalforum (virtual) Am Bahnhof 30 74638 Waldenburg WKN A1PHBB 16 Feb 22 Preliminary figures FY 2021 Germany www.r-stahl.com Deutsche Boer

  53. Slide 53: R. STAHL Am Bahnhof 30, Waldenburg

    R. STAHL Am Bahnhof 30 74638 Waldenburg, Germany T +49 7942 943-0 | F +49 7942 943-4333 | r-stahl.com

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