Gurit Holding Ag · SIX:GURN
Gurit — H1 2017 Earnings Presentation
28 slides from Gurit's earnings presentation, Aug 18, 2017
Slide 1: Gurit 1HY 2017 Results
Gurit 1HY 2017 Results Zurich, August 18, 2017
Slide 2: them to be reasonable at this time .
This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such statements are made on the bas
Slide 3: Gurit Strategy 2021
Gurit Strategy 2021 Gurit ————=*{*£z&=Z=“Z=_£ =|
Slide 4: Gurit Strategy 2021
Gurit Strategy 2021 Sales Growth Ambition by 2021 at ca. CHF 500 million Organic – ca. CHF 450 million Acquisitive – target CHF 50 million Operating Profitability Ambition by 2021 is to maintain 8-10% RoS Key Markets for Gurit Advanced Composites Wind, Aerospace and Automotive – 3 key st
Slide 5: Key Strategic Achievements 1HY 2017
Key Strategic Achievements 1HY 2017 Product Range: Integration of Volpiano PET business Licensing agreement for patented Armacell recycled PET technology JV for balsa wood production in Asia-Pacific Renewal of distribution agreement for Maricell PVC Aero: Additional OEM material qualific
Slide 6: Gurit 1HY 2017 Business Update
Gurit 1HY 2017 Business Update
Slide 7: Key Business Notes 1HY 2017
Key Business Notes 1HY 2017 Profitability & Growth: Operating profit margin at 12% of net sales for 1HY 2017 Slight dip in net sales due to challenging market environment Wind market decline in India, other regions fair and in line with expectations Aero business growing single-digit ahead
Slide 8: Key Financial Notes 1HY 2017
Key Financial Notes 1HY 2017 Net Sales: -0.5% (-3.9% in reported CHF) to CHF 175m (1HY 2016: CHF 182m) Op. Profit and RoS: CHF 21.2m (1HY 2016: CHF 19.1m) and 12.1% operating profit margin (1HY 2016: 10.5%) Net Profit of CHF 15.3m (1HY 2016: CHF 14.1m) Equity Ratio solid at 77.5% (1HY 2016:
Slide 9: Development by Key Markets
Development by Key Markets Gurit ————=*{*£z&=Z=“Z=_£ =| |
Slide 10: Wind Energy – Market Environment
Wind Energy – Market Environment GWEC Projected Global Annual Capacity* 80 70 63 54.6 59.4 60.9 64.7 60 Americas 52 40 Asia / Pacific 20 EMEA 0 2014 2015 2016 2017 2018 2019 2020 * Source: GWEC Global Wind Statistics February 10, 2017 GWEC Outlook revised after 2016 drop in newly installed capacit
Slide 11: Wind Energy Materials – Results & Outlook
Wind Energy Materials – Results & Outlook Results & Achievements 1HY 2017 Net sales: CHF 69.1m (1HY 2016: CHF 73.5m) Decline by -3% (currency-adjusted) due to weaker Asian market; Europe and North America at a fair level but not able to compensate the shortfall in Asia (India) Operations: Bals
Slide 12: Tooling – Results & Outlook
Tooling – Results & Outlook Results & Achievements 1HY 2017 Net sales: CHF 35.6m (1HY 2016: CHF 36.8m) Increase by 0.5% (currency-adjusted) over 2016 record year level, mainly due to multi megawatt demand in China Operations: Factory expansion in Taicang, China Focus 2HY 2017: Stronger 2HY 2
Slide 13: Aerospace – Market Environment
Aerospace – Market Environment Aircraft Deliveries by Type* 750 688 629 635 A380 500 A350 306 A330 250 Single 0 aisle 2014 2015 2016 1HY 2017 * Source: Airbus Order Book Commercial aerospace market expected to continue to grow at a CAGR of 4.6% to 2020 according to DTTL / Deloitte Global Combine
Slide 14: Aerospace – Results & Outlook
Aerospace – Results & Outlook Results & Achievements 1HY 2017 Net sales: CHF 25.1m (1HY 2016: CHF 24.3m) Increase by 3.3% due to stronger build rates and demand situation in Europe Operations: Material qualification for another global aerospace OEM achieved New product development with bette
Slide 15: Other Material Markets – Market Environment
Other Material Markets – Market Environment Market demand European Marine luxury and leisure markets show continued low build rates. Automotive material qualifications positive, market growth yet still low. Other material markets (construction and industrial): project-driven business hit by on
Slide 16: Other Material Markets – Results & Outlook
Other Material Markets – Results & Outlook Results & Achievements 1HY 2017 Net sales: CHF 35.5m (1HY 2016: CHF 38.2m) Decrease by -7.1% due to continued hesitant order situation in the European marine sector as well as a lack of large builds in industrial markets due to end customer situation in
Slide 17: Composite Components – Results & Outlook
Composite Components – Results & Outlook Results & Achievements 1HY 2017 Net sales: CHF 9.8m (1HY 2016: CHF 9.4m) Increase of 14.8% (currency-adjusted) as a result of newly won business Operations: Ramp up for additional series production programs Focus 2HY 2017: Participate in increased bid
Slide 18: Financial Results 1HY 2017
Financial Results 1HY 2017 Gurit ————=*{*£z&=Z=“Z=_£ =| |
Slide 19: Net Sales Analysis by Markets
Net Sales Analysis by Markets Net sales in MCHF 177.8 181.6 182.3 169.7 175.2 Overall slight net sales reduction mainly from Composite Materials mainly due to soften Asian wind energy demand Composite Materials presented with mixed market 1HY 2015 2HY 2015 1HY 2016 2HY 2016 1HY 2017 conditions M
Slide 20: Operating Profit and EBIT Development
Operating Profit and EBIT Development Operating profit (% Net sales) Operating profit at 12.1% RONA (incl. Goodwill) above medium term target of RONA (excl. Goodwill) 8 - 10% of net sales. 21.1% 18.2% 17.7% Main positive drivers: 16.4% 14.2% 18.3% Favorable business line 15.9% 15.4% and product
Slide 21: Operating Profit Bridge 1HY 2016 to 1HY 2017
Operating Profit Bridge 1HY 2016 to 1HY 2017 25 in MCHF 12.1% 0.9 20 10.5% 2.5 -1.0 -1.0 3.4 -2.9 15 -0.8 1.0 21.2 10 19.1 5 0 Operating Volume and Sales price Material Material Operational Bad debts One-offs Other Operating profit 1HY product mix changes, price usage efficiencies (Delta 1HY effects
Slide 22: Income Tax Expenses
Income Tax Expenses in MCHF 6 25% 5 21% 0.9 0.3 -0.4 4 3 5.1 2 4.3 1 0 Tax expense at Not Other Not Actual tax average expected capitalized effects, recoverable expense rates tax losses net WHT on IC dividends Income tax expenses burdened by unfavorable effects from not capitalized tax losses and
Slide 23: Profit and Loss
Profit and Loss Consolidated P&L 1HY 2017 1HY 2016 Variance MCHF % NS MCHF % NS MCHF %-pts Net sales 175.2 100.0% 182.3 100.0% -7.1 0.0% Gross margin 92.7 52.9% 94.0 51.6% -1.3 1.3% Personnel expenses -40.4 -23.1% -42.2 -23.1% 1.8 0.1% Other expenses -31.1 -17.7% -30.2 -16.6% -0.8 -1.2% Operating pr
Slide 24: Balance Sheet
Balance Sheet Consolidated Assets Jun 2017 Dec 2016 Variance MCHF % MCHF % MCHF % Cash and cash equivalents 32.9 13% 38.6 16% -5.7 -2% Trade receivables 64.2 26% 61.3 25% 2.9 1% Inventories 51.6 21% 46.2 19% 5.4 2% Other current assets 20.9 8% 20.5 8% 0.4 0% Deferred income tax assets 2.6 1% 2.9 1%
Slide 25: Cash Flow
Cash Flow Consolidated Cash Flow 1HY 2017 1HY 2016 Change MCHF MCHF MCHF EBIT 21.2 19.1 2.1 Depreciation, amortisation, impairment 5.0 7.0 -2.0 Change in working capital -11.4 -7.3 -4.1 Other cash flow from operating activities -3.7 -6.2 2.5 Net cash flows from operating activities 11.1 12.6 -1.5 Pu
Slide 26: Financial Results 1HY 2017 Conclusion
Financial Results 1HY 2017 Conclusion
Slide 27: Outlook FY 2017 (Confirmed)
Outlook FY 2017 (Confirmed) Net Sales Low single-digit level revenue growth expected for FY 2017 on assumption of wind India recovery in Q4-2017 Operating Profitability Operating profit margin is expected to reach the upper end of the guided range of 8 to 10 percent of net sales, including a
Slide 28: Questions & Answers
Questions & Answers Gurit ————=*{*£z&=Z=“Z=_£ =|