Rieter Holding Ag · SIX:RIEN
Rieter — H1 2002 Earnings Presentation
20 slides from Rieter's earnings presentation, Aug 23, 2002
Slide 1: First Half of 2002: Results Presentation
Rieter Group First Half of 2002: www.rieter.com Results Presentation by Dr. Hans Rudolf Widmer Chief Financial Officer August 23, 2002 Semi-annual report 23.8.2002 / HRW-ip Rieter Group
Slide 2: Rieter Group: Key data
First half of 2002 Rieter Group: Key data • Strong recovery of orders for textile Change machinery / services 1-6 vs. 1-6/2001 mio CHF 2002 in % • Sales slow down attributable to Orders 1'596 2 substantial drop of Textile Systems Sales 1'439 – 11.4 (–144.3 mio CHF, –8.9%) and currency EBITDA 150.4 –
Slide 3: Sales by division
Sales by division First half year sales Other Business Other Business Activities Textile Activities Textile 6 Systems 6 Systems 455 606 32% 37% -25% 68% 63% Automotive Automotive Systems -3% Systems 978 1'013 -11.4% 2002: 1'439 mio CHF 2001: 1'625 mio CHF Semi-annual report 23.8.2002 / HRW-ip Rieter
Slide 4: 11.4% sales drop due to slower textile machinery business
First half of 2002: 11.4% sales drop due to slower textile machinery business mio CHF 1'700 1'625 -144.3 1'600 –11.4% –11.4% 17.6 -7.2 -52.7 1'500 0.3 1'439 -8.9% +1.1% -0.4% 1'400 -3.2% Textile Automotive other Systems Systems currency effects 1'300 Textile Automotive Systems Systems 1'200 1'100 1'
Slide 5: Sales still above 3y average (1999-2002)
First half of 2002: Sales still above 3y average (1999-2002) Best Best semester semester sales sales ever ever mio CHF 1'750 1'625 1'515 1'546 1'500 1'416 1'439 Ø 1'425 1'250 p.sem. sales growth 1'000 in % vs. 750 corresponding +19.6% +21.1% +14.8% +2.0% -11.4% pre-year semester 500 2000 2000 2001 2
Slide 6: Sales down by 11.4%, impact lessened by material cost management
After 2 years (2000, 2001) of strong growth ... ... Sales down by 11.4%, ... but impact lessened by strong (vs. best semester ever) material cost management -11.4% mio CHF mio CHF in % of co 1'750 1'625 800 720.5 50% other 1'500 1'416 1'439 618.3 609.6 1'250 Automotive 600 48% 1013 Systems 45.3% 1'0
Slide 7: Material and operating cost not sufficient to keep EBIT margin balanced
Material and operating cost not sufficient to keep EBIT margin balanced Operating cost ratio up Source of EBIT development (employee costs, operating costs, depreciation) Operating costs Cost ratio Change (mio CHF) (in % of co) 1-6 1-6 in basis 800 758.9 60% in % 2002 2001 points 704.5 Corporate 667
Slide 8: 20% EBIT reduction related to sales drop of Textile Systems
First half of 2002: 20% EBIT reduction related to sales drop of Textile Systems mio CHF 125 +9.2% 60.1 -20.1% 110.0 100 -1.0 65.6 87.9 -3.6 75 -49.1% -49.1% 50.9 6.1% 50 25.9 6.9% 25 5.8% 8.5% 6.3% 6.9% 0 I/02 I/01 I/02 I/01 I/02 I/01 I/02 I/01 1-6/02 1-6/01 1-6/02 1-6/01 1-6/02 1-6/01 1-6/02 1-6/01
Slide 9: Cash flow and net profit decline due to textile slow down and financial result
Cash flow and net profit decline due to textile business slow down and financial result Net profit drop also affected Cash flow1 below by financial income 5 year average mio CHF in % of co mio CHF in % of co 80 10% 175 15% – 10.3 70 66.8 150 – 20.4 8% 132.8 7.0* 60 113.3 12% 125 Ø 123 (5y) 103.5 50
Slide 10: Strong balance sheet ratios
Rieter Group First half of 2002: Strong balance sheet ratios Change vs. 1-6/2001 Comment 1-6 in mio 2002 CHF in % • Total assets down due to Total substantial reduction in assets CHF m 2'281 – 392 – 15% - inventory (–65 mio CHF) Equity CHF m 891 – 40 – 4% - receivables (–106 mio CHF) w/o minorities
Slide 11: Global presence: Employees by countries
Global presence: Employees by countries First half year India Others India Others 881 Switzerland 341 969 Switzerland Canada 319 1'862 Canada 366 1'908 392 Brazil 2% 7% 2% 7% 15% 15% Brazil 3% 7% 3% 7% 15% 15% 3% 3% 3% 3% 602 677 5% 5% 5% 5% Germany Germany 1'679 12% 12% 1'573 13% 13% USA 18% USA 18
Slide 12: Rieter Textile Systems: Sales down but orders up
First half of 2002 – Rieter Textile Systems: Sales down but orders up Change • Order growth to semester record level 1-6 vs. 1-6/2001 of 613 mio CHF mio CHF 2002 in % Orders 613 13 • Despite a substantial sales drop of 25% Sales 455 – 25 EBIT of 5.8% achieved based on focused EBITA 43.6 – 36 cost ma
Slide 13: Textile Systems: Strong order growth will stimulate second half sales
Rieter Textile Systems: Strong order growth will stimulate second half sales First half year sales Half year orders 1-6 2002 up by 13% Africa/ Regional 1 Turkey other Latin 24 importance 2 China America of orders 30 (-42%) 7% 5% Europe 3 South/East Asia 98 (-36%) North 22% 4 Western Europe America 1
Slide 14: Rieter Automotive Systems: Margin progress in flat markets
First half of 2002 – Rieter Automotive Systems: Margin progress in flat markets Change • Main markets (North America, Western 1-6 vs. 1-6/2001 Europe) flat mio CHF 2002 in % • Sales drop only due to currency Sales 978 –3 translation effects (–52.7 mio CHF, –5.2%) EBITDA 109.4 1 - in % of co 11.4 • S
Slide 15: Automotive Systems: Better than expected
Rieter Automotive Systems Better than expected ... ... First half year sales Car production Other 140 First half year USA Brazil 329 vs. 27 14% (+6%) in 1'000 units 1–6 2002 1–6 2001 Canada 3% 47 5% 34% Western Europe 8'087 –3.9% Great 6% North America 8'600 +5.3% Britain 60 (+14%) 10% Italy 17% For
Slide 16: Outlook and Management Team
Rieter Group Outlook Management Team w / Rieter Background Rieter Group CEO Hartmut Reuter 5y - Industrial engineer - Automotive background - Head of Corporate Center Textile Systems CEO Peter Gnägi 12y - Industrial engineer succeeding Erwin Stoller - Head Spun Yarn Systems Automotive Systems CEO Er
Slide 17: Key data per share
First half year results 2002 Key data per share Rieter registered shares of 10 CHF nominal value Change Bloomberg: RIEN, Reuters: RITZn 2002 2001 in % Shares outstanding with dividend rights (per June 30) 4'090'093 4'061'427 0.7 Average shares (of period) 4'072'075 4'092'753 – 0.5 Earnings per share
Slide 18: Price Rieter registered shares, Earnings per share
Price Rieter registered shares Earnings per share Rieter share price in CHF 700 Shares: 4'090'093 August 21: (as at June 30, 2002) CHF 287 600 500 400 300 31 EPS 200 28 27 27 23 100 14 17.33 14.62 7.93 0 1996 1997 1998 1999 2000 2001 2002 1-6 Semi-annual report 23.8.2002 / HRW-ip Rieter Group
Slide 19: Group performance: results 2002
Group performance: First half year results 2002 Change January-June 2002 January-June 2001 mio CHF in % Sales 1'439 1 1'625 – 11 EBIT 87.9 110.0 – 20 Net profit 40.5 66.8 – 39 Minorities – 8.2 – 7.0 17 Total assets 2'281.2 2'673.4 – 15 Equity w/o minorities 890.6 930.5 –4 Number of employees 12'785
Slide 20: Important notice
Important notice All statements in this report which do not refer to historical facts are statements related to the future which offer no guarantee with regard to future performance; they are subject to risks and uncertainties including, but not confined to, future global economic conditions, exchan