Rational Aktiengesellschaft · XETR:RAA
Rational Aktiengesellschaft — Rational — H1 2020 Earnings Presentation
55 slides from Rational Aktiengesellschaft's earnings presentation, July 2020
Slide 1: IR Presentation HY1 2020
IR Presentation HY1 2020 RATIONAL
Slide 2: Our success factors
Our success factors In the past and in the future Concentration on Specialisation in professional kitchens „thermal cooking“ Highest possible Entrepreneurs in customer benefit the company 2
Slide 3: High customer satisfaction
High customer satisfaction Above average number of apostles Mercenaries Apostles [27%] [49%] Source: Kantar TNS / MI (2016-2019) – in 14 markets with RATIONAL subsidiaries 14% 74% [x]: Average of the manufacturing industry worldwide 6% 6% Satisfaction Rebels Hostages [17%] [7%] Loyality 3
Slide 4: 7.8 billion people live on earth
7.8 billion people live on + 80 million more each year earth 140,000,000 dishes are prepared using RATIONAL appliances every day 4,000,000 potential professional kitchens >90% recommendation rate 4
Slide 5: BMW Group customer testimonial
"I decide on the desired result, RATIONAL does the rest, and I can rely absolutely 100% on the quality." BMW Group Kurt Rass, Kitchen Manager BMW Group Munich, Germany 5
Slide 6: Quanjude Group customer testimonial
"Without RATIONAL, we would not be able to prepare 20,000 Peking ducks every day with such high quality." Quanjude Group Yan Dajian, Head of R&D, P.R. China 6
Slide 7: Nando's International customer testimonial
"They know what they do and understand what we need. We believe that RATIONAL is simply the perfect partner." Nando’s International Partner for more than 25 years 7
Slide 8: Combi-Steamers and VarioCookingCenter produced
>1.000.000 Combi-Steamers produced since 1976 > 40.000 VarioCookingCenter® produced since 2005 8
Slide 9: Worldwide presence, close to the customer
Worldwide presence Close to the customer Local presence in more than 32 120 subsidiaries countries More than 4,000 partners worldwide 9
Slide 10: The world market potential
The world market potential More than 4 million professional kitchens 10 million 10 million kitchens kitchens Potential for Combi-Steamers Potential for iVario® 4 million kitchens 2 million kitchens 10
Slide 11: High untapped market potential for both product groups
High untapped market potential for both product groups Aiming to substitute traditional equipment in professional kitchens 2% RATIONAL VCC + iVario® 12% RATIONAL 13% Competitors 1% Competitors combi steamer 75% Traditional appliances 97% Traditional appliances More than 4 mn addressable kitchens for
Slide 12: Our customers worldwide
Our customers worldwide Establishments with over 20 meals per service ~45% Restaurants with service ~40% Mass Catering ~5% ~10% Restaurants without service Retail Graphic refers to the number of sold appliances 12
Slide 13: More customer benefit
Higher earnings Economies of scale Higher attractivity Higher More productivity customer Customer benefit benefit Positive Rising learning demand curve 29.07.2020 \ Unternehmenspräsentation 2018 13 Growth
Slide 14: For food
For food Whose quality is setting standards 14
Slide 15: For customer benefit
For customer benefit That exceeds all expectations 15
Slide 16: For healthy food
For healthy food With more nutritions and less pollutants 16
Slide 17: For kitchens
For kitchens In which 20 or 20,000 dishes are prepared 17
Slide 18: For people
For people Preparing food thermally in commercial kitchens 18
Slide 19: 45 years of research into cooking intelligence
45 years of research into cooking intelligence 2020 1 Mio. produced Combi- Steamers 2019 iCombi Pro FRIMA becomes RATIONAL iVario Pro 2018 ConnectedCooking Pro iKitchen 2017 VarioCookingCenter® 112L ConnectedCooking 2016 Founding of the VarioCookingCenter® 112T SelfCookingCenter® XS RATIONAL GmbH 20
Slide 20: RATIONAL production sites
RATIONAL- production sites Landsberg/Lech Wittenheim 20
Slide 21: The iCombi Pro
The iCombi Pro The new „Gold Standard“ in the kitchen Exact results. High productivity. Optimal planning. Effective cleaning. 21
Slide 22: Intelligent and powerful
Intelligent and powerful Grilling. Roasting. Baking. Steaming. Everything in one appliance. 22
Slide 23: The iVario Pro
The iVario® Pro The multifunctional cooking system with contact heat Exact results. Effective enery-management. More efficiency and fexibility. 23
Slide 24: Roasting. Boiling. Frying.
Roasting. Boiling. Frying. 0 Up to 4 times faster, up to 40% less energy consumption 24
Slide 25: ConnectedCooking
ConnectedCooking The connected kitchen made by RATIONAL 25
Slide 26: Rehearsed team
Rehearsed team For 90% of all cooking applications in professional kitchens 26
Slide 27: Superb Services
Superb Services For more customer benefit › Competent Consulting › Personal Start-Training › Academy RATIONAL › ConnectedCooking › ChefLine® 27
Slide 28: For services
For services That inspire sustainably 28
Slide 29: RATIONAL Technical Service
RATIONAL Technical Service Always available for the customer › Original spare parts › Certified service partners › Professional installation › Worldwide service network 29
Slide 30: How do they do that?
How do they do that? 30
Slide 31: With employees
With employees That are committed and enthusiastic 31
Slide 32: With the U.i.U.-Principle
With the U.i.U.-Principle Making decisions, taking responsibility 32
Slide 33: With courage
With courage To rethink customer benefit 33
Slide 34: With 1,000 Chefs
With 1,000 Chefs Daily on the route 4 Köche, 4 Reisen 34
Slide 35: With young talents
With young talents 80 apprentices and students 35
Slide 36: With responsibility
With responsibility For human and nature 36
Slide 37: Results
Results Facts and figures 37
Slide 38: Important KPIs for HY1 2020
Important KPIs for HY1 2020 Overview -26% -25% 55% 9% Order intake Sales revenue Gross profit EBIT decrease decrease margin margin 17 mEUR 77% 13.5 mEUR 201 mEUR Operating Equity Capex Net financial Cashflow ratio position 38
Slide 39: RATIONAL is the world market leader for combi-steamers
RATIONAL is the world market leader for combi-steamers Because we focus on what we do best RATIONAL Competitors (about 100 worldwide) Convotherm (Welbilt), Blodgett (Middleby), MKN, Lainox & Eloma (Ali Group), Electrolux, Alto-Shaam, Unox 39
Slide 40: Q2 2020 characterized by the Corona crisis
Q2 2020 characterized by the Corona crisis 25% Sales revenue decline 844 778 702 613 564 497 399 298 +15% +8 % +14 +14 % % +9 % +15% +11 % +8 % +11 % +12 +9 %% +15% -25 % -7 % 2014 2015 2016 2017 2018 2019 HY1 2019 HY1 2020 Sales revenue in mEuro Sales revenue growth in % 40
Slide 41: HY1 2020 characterised by the corona crisis: regions
HY1 2020 characterised by the corona crisis Nearly all regions affected by the crisis Sales revenues in % of total (Sales revenue growth in %) Germany (-20%) North 13% America 19% (-27%) 47% Europe (-27%) 15% Asia (-17%) (excluding Germany) Latin America 4% (-45%) Rest of the World 6% (-16%) Note: F
Slide 42: HY1 2020 characterised by the corona crisis: product segments
HY1 2020 characterised by the corona crisis Both product segments are suffering Sales revenues combi steamers Sales revenues VarioCookingCenter® /iVario ® 366 - 26 % 270 34 28 -18 % HY1 2019 HY1 2020 HY1 2019 HY1 2020 Sales revenue in mEUR Sales revenue growth in % 42
Slide 43: 9% EBIT margin in HY1 2020 despite 25% drop in sales
9% ebit margin in HY1 2020 despite 25% drop in sales revenues Cost savings, hiring freeze, short-term work etc. +13% +8% +9% +13% +8% +10% +4% 145 160 167 189 205 223 98 28 m EUR -72% 29% 28% 27% 27% 26% 26% 25% 9% 2014 2015 2016 2017 2018 2019 HJ 2019 HJ 2020 Veränderung in % EBIT-Marge in % 43
Slide 44: Solid balance sheet is a decisive advantage in the crisis
Solid balance sheet is a decisive advantage in the crisis 200 mEUR net financial position HY1 2020 HY1 2019 Non-current assets 201 195 Inventories 84 64 Trade receivables 86 122 Other assets 49 87 Liquid funds 186 121 Total assets 615 589 Equity 471 424 Non-current liabilities 34 38 Current provisio
Slide 45: Reduced dividend for fiscal year 2019
Reduced dividend for fiscal year2019 Focus on securing liquidity Earnings per share Due to the worldwide 15,09 12,58 13,84 10,71 11,18 Corona crisis and the 9,68 unforeseeable risks for 2,20 2,00 future development a 8,80 9,50 8,00 reduced dividend of 5.70 7,50 6,80 euros per share for fiscal 5,70 y
Slide 46: What may we expect in the future?
What may we expect in the future? 46
Slide 47: Our customers worldwide
Our customers worldwide Establishments with over 20 meals per service ~45% Restaurants with service ~40% Mass Catering ~5% ~10% Restaurants without service Retail Graphic refers to the number of sold appliances 47
Slide 48: The crisis is causing risks
− Less purchasing power of our customers. − Less tourism, less events, less restaurant The crises is visits etc. causing − Less business travel, more home office. − More home cooking and cold nutrition. risks … − Consolidation of dealers and end- customer sectors. − Growing second-hand market. − Dep
Slide 49: But also numerous chances
− New customer groups gaining in importance (retail, delivery, dark kitchens...). − More focus on hygiene and healthy cooking … but also methods. numerous − More pressure on efficiency in professional kitchens. chances. − Jobs in kitchens even more unattractive. − Higher need for cooking intelligenc
Slide 50: Positive megatrends for RATIONAL
Positive megatrends for RATIONAL › Worldwide population That is how the world of tomorrow lives growth › Varying catering loations › Increasing purchasing power in developing countries › Íncreasing hygiene requirements in kitchens › Increased meaning of efficient kitchen processes › Demand for healt
Slide 51: Investmentstory RATIONAL - Strength profile
Investmentstory RATIONAL- Strength profile › High brand awareness in professional kitchens › World market leader, free market potential › High customer satisfaction and loyalty › Global footprint of sales and service network, scalable business model › Flexible and lean production, low degree of vert
Slide 52: Long-term development related to reference indices
Long-term development related to reference indices Most severe loss in share price since financial crises 2008/2009 53
Slide 53: Investment recommendations: Broad Coverage
Investment recommendations Broad Coverage Median Fair Value = 440 euros Buy 2 Sell 6 Hold 4 Status: July 2020 54
Slide 54: Investor Relations Contact, Financial Calendar
Investor Relations Kontakt Financial Calendar Company information Financial calendar 2020 RATIONAL AG 24.03.2020 Financial KPIs Fiscal Year 2019 Siegfried-Meister-Straße 1 06.05.2020 Financial KPIs Q1 2020 86899 Landsberg am Lech 26.06.2020 General Meeting 2020 Germany tbd RATIONAL-Analyst day 2020
Slide 55: RATIONAL
RATIONAL