Georg Fischer Ag · SIX:GF
Georg Fischer — FY2016 Earnings Presentation
32 slides from Georg Fischer's earnings presentation, Mar 1, 2017
Slide 1: Investor Presentation
GF Corporation Investor Presentation 1 March 2017
Slide 2: Performance further increased
GF Corporation Performance further increased Sales up 3% at CHF 3’744 million (up 2% organically) Operating result increased 5% to CHF 311 million for a 8.3% EBIT margin (8.1% in 2015) Earnings per share up 15% to CHF 53 Free cash flow (before acquisitions/divestments) up 22% to CHF 231 mill
Slide 3: Strategy 2020 – Profitable expansion
GF Corporation Strategy 2020 – Profitable expansion Widen presence in growth markets, optimize productivity in Europe Objectives Shift divisions’ portfolio to higher margin businesses ROIC 18-22% Drive sales proficiency and innovation excellence ROS 8-9% Annual Growth 3-5% 3 Investor Presentat
Slide 4: Sales growth in line with 2016-2020 objectives
GF Corporation Sales growth in line with 2016-2020 objectives 5% 3% 2% 1% GF GFPS GFAU GFMS 4 Investor Presentation | 1 March 2017
Slide 5: EBIT margin on track at all three divisions
GF Corporation EBIT margin on track at all three divisions Strategy 11 10 ~ 12% Objectives in % 10 9 8 ~ 9% 8 7 6 ~ 8% 6 ~ 8% 6 10.8 5 4 8.3 7.5 6.8 3 2 1 0 GF GFPS GFAU GFMS 5 Investor Presentation | 1 March 2017
Slide 6: All divisions generate substantial value
GF Corporation All divisions generate substantial value ROIC 24 Objectives in % 22 20 18 ~ 22% 18 16 14 12 23.1 10 20.6 19.3 18.3 8 WACC 7.4% 6 4 2 0 GF GFPS GFAU GFMS 6 Investor Presentation | 1 March 2017
Slide 7: Optimize productivity in Europe/ Expand in growth markets
GF Corporation Optimize productivity in Europe/ Expand in growth markets Automatize foundries in Europe Acquisitions in Asia (PT Eurapipe, Indonesia) 7 Investor Presentation | 1 March 2017
Slide 8: Shift divisions portfolio to higher margin business
GF Corporation Shift divisions portfolio to higher margin business Air-conditioning Laser applications E-Mobility 8 Investor Presentation | 1 March 2017
Slide 9: Drive sales proficiency and innovation excellence
GF Corporation Drive sales proficiency and innovation excellence Value selling (2017) Innovation excellence (2016/2017) 9 Investor Presentation | 1 March 2017
Slide 10: GF Piping Systems: A strong performance across the board
GF Piping Systems A strong performance across the board Sales increased by 5% to CHF 1’494 million Strong demand for industrial applications Image Industrial application worldwide Steady growth in Building Technology Utility sector sales stable despite oil/gas slump Three acquisitions supp
Slide 11: GF Piping Systems: Trend to sustainability spurs growth
GF Piping Systems Trend to sustainability spurs growth Potable water plant, City of Akron, Ohio, USA 11 Investor Presentation | 1 March 2017
Slide 12: GF Automotive: Profitability up on lightweight focus
GF Automotive Profitability up on lightweight focus Sales up 1% to CHF 1’335 million Orders for light metal components on the increase Iron casting business subdued in Europe, growing in China Volvo XC60 EBIT up 12% to CHF 100 million for a 7.5% ROS Shock tower supply worldwide 12 Investor P
Slide 13: GF Automotive: Electric car business on the rise
GF Automotive Electric car business on the rise Battery housing Battery housing Renault Captur 13 Investor Presentation | 1 March 2017
Slide 14: GF Machining Solutions: Resilient amid uneven markets
GF Machining Solutions Resilient amid uneven markets Sales up 2% to CHF 916 million Healthy demand in aerospace and medical sectors Electronics sector softened in 2nd half-year Promising acquisition of US micro-laser specialist EBIT of CHF 62 million at previous year‘s level* for a 6.8% RO
Slide 15: GF Machining Solutions: Advanced technologies open new markets
GF Machining Solutions Advanced technologies open new markets Sharp camera lenses Stents for angioplasty 15 Investor Presentation | 1 March 2017
Slide 16: Consolidated financial statements
Consolidated financial statements
Slide 17: Sales by division
GF Corporation Sales by division CHF million organic 2016 2015 growth 1) growth GF Piping Systems 1’494 1’417 5.4 % 5.0 % GF Automotive 1’335 1’321 1.1 % -0.3 % GF Machining Solutions 916 902 1.6 % -0.3 % Corporation 3’744 3’640 2.9 % 1.8 % Sales 1st Semester 1’863 1’802 3.4 % 1.5 % Sales 2nd Semest
Slide 18: Sales by division
GF Corporation Sales by division CHF million organic 2016 2015 growth 1) growth GF Piping Systems 1’494 1’417 5.4 % 5.0 % GF Automotive 1’335 1’321 1.1 % -0.3 % GF Machining Solutions 916 902 1.6 % -0.3 % Corporation 3’744 3’640 2.9 % 1.8 % GF Automotive adjusted for metal price effects 3.3 % Corpor
Slide 19: EBIT and margin by division
GF Corporation EBIT and margin by division CHF million EBIT margin % 2016 2015 2016 2015 GF Piping Systems 162 143 10.8 % 10.1 % GF Automotive 100 89 7.5 % 6.7 % GF Machining Solutions 62 78 6.8 % 8.6 % Corporation 311 296 8.3 % 8.1 % EBIT 1st Semester 153 128 8.2 % 7.1 % EBIT 2nd Semester 158 168 8
Slide 20: Currency impact on Sales/EBIT
GF Corporation Currency impact on Sales/EBIT CHF million 2016 Sales EBIT EUR 39 - USD 17 3 CNY -23 -3 Others -14 -4 Total currency impact 19 -4 20 Investor Presentation | 1 March 2017
Slide 21: Income statement
GF Corporation Income statement CHF million 2016 2015 Sales 3’744 3’640 3% Gross value added 1’421 1’347 5% Personnel expenses -978 -925 6% EBITDA 443 422 5% Depreciation, amortization -132 -126 5% EBIT 311 296 5% Financial result -31 -48 -35 % Ordinary result 280 248 13 % Non-operating result 1 3
Slide 22: Balance Sheet: Assets
GF Corporation Balance Sheet: Assets CHF million 2016 % 2015 % Cash, cash equivalents and marketable securities 579 559 Trade accounts receivable 666 640 Inventories 673 640 Other current assets 106 95 Current assets 2’024 63 1’934 63 Property, plant, and equipment 1’063 1’027 Intangible assets 25 2
Slide 23: Balance Sheet: Liabilities and equity
GF Corporation Balance Sheet: Liabilities and equity CHF million 2016 % 2015 % Current liabilities 1’067 1’221 Non-current liabilities 935 732 Liabilities 2’002 63 1’953 63 Share capital 4 4 Capital reserves 24 24 Treasury shares -10 -6 Retained earnings 1’138 1’059 Non-controlling interests 44 49 E
Slide 24: Free cash flow before acq./div. up by 22%
GF Corporation Free cash flow before acq./div. up by 22% 231 190 110 2014 2015 2016 24 Investor Presentation | 1 March 2017
Slide 25: Free cash flow
GF Corporation Free cash flow CHF million 2016 2015 EBITDA 443 422 Changes in net working capital -24 -21 Income taxes/interest paid -72 -77 Other changes 53 4 Cash flow from operating activities 400 328 Additions to property, plant, and equipment -174 -167 Cash flow from acquisitions/divestitures -
Slide 26: Net debt
GF Corporation Net debt CHF million 500 Net debt / 1.0x 0.9x 0.9x 0.6x 0.5x EBITDA 400 352 354 334 300 238 214 200 100 0 2012 2013 2014 2015 2016 26 Investor Presentation | 1 March 2017
Slide 27: Key figures at a glance
GF Corporation Key figures at a glance 2016 2015 ROIC in % 19.3 18.9 Return on Equity in % 19.3 17.7 Earnings per share in CHF 53 46 Dividend (proposed) per share in CHF 20 18 Number of employees (incl. trainees) 14’808 14’424 27 Investor Presentation | 1 March 2017
Slide 28: Our new online report highlights performance increase
GF Corporation Our new “online” report highlights performance increase 28 Investor Presentation | 1 March 2017
Slide 29: Outlook 2017
Outlook 2017 +GF+
Slide 30: Outlook 2017
GF Corporation Outlook 2017 New businesses and recent acquisitions to support growth at GF Piping Systems A promising order book at GF Automotive and GF Machining Solutions core segments Implementation of strategic thrusts to start bearing fruits Further performance increase expected in line w
Slide 31: Thank you
Thank you
Slide 32: Disclaimer
Disclaimer This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment. Neither it nor anything it contains shall form the basis of any contract whatsoever. Opinions expressed herein reflect the