Feintool International Holding Ag · SIX:FTON
Feintool International — FY2023 Earnings Presentation
34 slides from Feintool International's earnings presentation, Feb 22, 2024
Slide 1: Financial Year 2023 Media and analyst conference
Feintool International Holding AG Financial Year 2023 Media and analyst conference - 22 February 2024
Slide 2: Agenda
AGENDA 08.30 a.m. Arrival 09.00 a.m. Welcome Karin Labhart, CCO Year in review Torsten Greiner, CEO Financial results Samuel Künzli, CFO Outlook Torsten Greiner Intro new CFO Thomas Erne Q&A All 10.50 – 12.00 p.m. Apéro riche and networking All Feintool Annual Media Conference - February 22, 2024 1
Slide 3: Year in review
Year in review
Slide 4: Year 2023: Regional differences, demanding environment
YEAR 2023 Regional differences, demanding environment Global market position strengthened as a leading supplier of high-precision parts in series production in a challenging environment Strong business in Asia: expansion into India, Japan and China as growth drivers Business in the USA very st
Slide 5: Feintool Group Highlights
FEINTOOL GROUP HIGHLIGHTS New significant orders in growth markets and geographic expansion Success in growth markets for hydrogen and battery-powered mobility Asian business was strong in 2023 and provides the basis for our expansion into India First major order for series production of bipol
Slide 6: Incoming orders / order backlog 2023
INCOMING ORDERS / ORDER BACKLOG 2023 High workload secured for the long-term Lifetime Globally 782 Mio. CHF Feintool order book > CHF 6 billion: high workload secured for the long-term 9% America: continued record order intake and expansion of market share Asia: first bipolar plate series cont
Slide 7: System Parts Europe
SYSTEM PARTS EUROPE Demanding year, major orders won Sales 2023 below expectations Multi-year order won from an American car manufacturer (rotor and stator for electric main drive, triple-digit million-euro range) Industrial business suffered sales losses due to economic situation Sales orga
Slide 8: System Parts USA
SYSTEM PARTS USA We are leveraging our expertise in a consolidating U.S. market System Parts USA won new orders and gained market share - against previously contracted competitors North America offers attractive market opportunities due to strong demand for series parts for combustion and hybrid
Slide 9: System Parts Asia
SYSTEM PARTS ASIA Strong business in China and Japan, expansion into India Successful year in Japan: our customer relationships provide opportunities for other sites In Taicang (China), the e-lamination technology roll-out continues: Our glulock® bonding technology for e-motors generates promisi
Slide 10: Sustainability
SUSTAINABILITY ESG-Rating, Supplier code of conduct and other key areas External ESG rating by Morningstar/Sustainalytics: Result Feintool: 17.7 = Low Risk The result is in the top 19% of peers Board of Directors: Dr. Marcus Bollig elected as Sustainability Officer Supplier Code of Conduct
Slide 11: Employer Branding
EMPLOYER BRANDING New campaign «Details matter. You matter.» successfully started Global framework for current and future HR activities Focuses on our more than 3,300 employees, valuing their expertise and appreciating their commitment Positions Feintool as an attractive employer and technolog
Slide 12: Financial results
Financial results
Slide 13: Preliminary comments
PRELIMINARY COMMENTS Divestment capital goods business and focus on parts business The divestment of the capital goods business was completed on 7 June 2023 (Technology segment). This segment can be found under discontinued operations in the 2023 Annual Report. To ensure comparability with the p
Slide 14: Revenue
REVENUE Strong inorganic growth in Europe and headwinds due to strong CHF growth in Mio. CHF growth growth growth 1.7% -6.3% 4.5% 0.7% 900 833,8 847,7 -12,0 0,6 25,2 0,1 800 700 600 500 400 300 200 100 0 Sales 2022 System Parts US System Parts Asia System Parts Europe Finance/IC Sales 2023 Feintool
Slide 15: Revenue by application 2023
REVENUE BY APPLICATION 2023 Over 20% revenue achieved by non-automotive in 2023 Motorcore stamping (main 16% 15% Stamping automotive main drives) accounted for 15% of drive (incl. hybrid) group sales 3% Stamping automotive (not main drive) Industrial business accounted Stamping non-automotive fo
Slide 16: EBITDA – transition from 2022 to 2023
EBITDA – TRANSITION FROM 2022 TO 2023 (WITHOUT ONE-OFF EFFECTS) Feintool achieved an EBITDA margin of around 10% in Mio. CHF margin margin margin margin margin 10.2% 12.6% 19.8% 9.6% 9.9% 90 84,6 5,2 0,1 84,0 -9,0 3,1 80 70 60 50 40 30 20 10 0 EBITDA 2022 System Parts US System Parts Asia System Par
Slide 17: EBIT – transition from 2022 to 2023
EBIT – TRANSITION FROM 2022 TO 2023 (WITHOUT ONE-OFF EFFECTS) Higher EBIT than in the previous year despite margin pressure due to high input costs in Mio. CHF margin margin 7.0% margin 10.3% 3.5% margin margin 3.5% 40 3.3% 35 2,1 6,7 -9,3 29,9 30 27,3 3,1 25 20 15 10 5 0 EBIT 2022 System Parts US S
Slide 18: Consolidated net income 2023
CONSOLIDATED NET INCOME 2023 Positive net result from continuing operations in Mio. CHF The sale of the capital goods 29,9 30 business resulted in an -5,9 25 expense of MCHF 22.1 20 -6,2 17,8 (result from discontinued 15 operations) 10 Proposed dividend of CHF 5 -22,1 0.34 per share 0 -5 -4,3 EB
Slide 19: Balance sheet: assets
BALANCE SHEET Total decreased due to lower inventories and reduced investments Assets 31.12.2023 31.12.2022 Difference Balance sheet total fell to in m CHF in m CHF in m CHF CHF 807.9 million (31 Cash and cash equivalents 82.2 78.6 3.6 December 2021: CHF 915.0 Trade and other receivables 101.0 110
Slide 20: Balance sheet: liabilities
BALANCE SHEET Stable balance sheet and healthy equity ratio Liabilities 31.12.2023 31.12.2022 Difference Equity decreased to CHF in m CHF in m CHF in m CHF 488.2 million. Financial liabilities 106.4 116.7 -10.3 Equity ratio is very solid at Other liabilities 213.3 257.7 -44.4 60.4 Shareholder's
Slide 21: Equity
EQUITY High equity ratio of around 60% in Mio. CHF 550 Negative influence from 540,5 540 -5,0 -4,3 currency effects (MCHF 40.5) 530 520 and consolidated loss of CHF 510 -40,5 4.3 million 500 490 -2,5 488,2 -0,1 480 470 460 30 20 10 0 31.12.2022 Dividend Net income FX IAS 19 Others 31.12.2023 Feint
Slide 22: Cash flow
CASH FLOW Positive Free Cash Flow (FCF) of around MCHF 20 in Mio. CHF Optimised net working capital and controlled investments 80 resulted in a positive free 70 65,9 9,2 cash flow 60 Cash and available credit 50 -55,2 lines of CHF 261.6 million 40 confirmed 30 19,9 20 10 0 op. CF before NWC NWC
Slide 23: Outlook
Outlook
Slide 24: Global car production
GLOBAL CAR PRODUCTION Promising market outlook – transformation accelerating Number of vehicles produced up to 3.5 t total weight, worldwide Stable growth in car production, return to pre-pandemic levels in CAGR +1,3% 2026; CAGR +1,3 % (2023-2030) 100 92 94 96 88 88 91 Strong trend towards fully
Slide 25: Market forecast December 2023 – regional insights
MARKET FORECAST - DECEMBER 2023 – REGIONAL INSIGHTS 46% 39% 57% Market share 24% 25% 26% 37% 29% 17% Technology change is accelerating rapidly. Globally Technology change is accelerating rapidly. Highest EV Technology shift is coming, but more moderately largest share of e-vehicles expected in
Slide 26: Outlook wind turbines - worldwide
OUTLOOK WIND TURBINES - WORLDWIDE Increasing demand for generators for wind turbines Wind turbines generate electricity by means of an CAGR electric motor (generator) +8,1% Total capacity of new wind turbines (GW) Rising demand for wind turbines driven by requirements for the expansion of renewa
Slide 27: Market forecast fuel cells & electrolyzers - global
MARKET FORECAST FUEL CELLS & ELECTROLYZERS - GLOBAL Different market developments for bipolar plates 4.0 3.87 Attractive market potential for Bipolar plates for fuel cells1 3.5 FEINforming to produce bipolar Bipolar plates for electrolyzers2 Market volume2 BPP (Bio. €/a) plates, CAGR +71 % (2025 –
Slide 28: Mega trends in the energy sector – supported by Feintool
MEGA TRENDS IN THE ENERGY SECTOR – SUPPORTED BY FEINTOOL Feintool Annual Media Conference - February 22, 2024 27
Slide 29: Mid-term targets 2026
MID-TERM TARGETS 2026 We are on track Sales over Current initiatives (selection) CHF 1 billion per year Gaining new OEMs as long-term customers EBIT margin corridor Expanding in China with our future technologies Entering market in India of 6-8 % Aligning product portfolio to market an
Slide 30: The transformation to markets for green energy continues
THE TRANSFORMATION TO MARKETS FOR GREEN ENERGY CONTINUES Feintool leverages the opportunities of green energy Mio. CHF Feintool plans to further increase the share of future- 1 200 1‘100 New applications (bipolar, oriented business areas to approx. 2/3 by 2027 1 000 battery, etc.) The share of s
Slide 31: Guidance
GUIDANCE Despite the challenging market conditions, we anticipate slight organic growth and a further improvement in profitability for the 2024 financial year: We expect to generate sales of around CHF 800 – 850 million with an EBIT margin of approximately 4%. We are confirming our medium-term targe
Slide 32: Change of group management
CHANGE OF GROUP MANAGEMENT New CFO as of April 1st, 2024 Thomas Erne has had an extensive career as a financial specialist in international industrial companies Most recently, he was CFO and Head of the Corporate Centre at Starrag Group Prior to that, he held senior finance positions at the Ge
Slide 33: We look forward to your questions
Feintool International Holding AG We look forward to your questions
Slide 34: 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
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