Slide 1: Annual Media Conference 2016 financial year
Annual Media Conference 2016 financial year Yves Serra 28.02.2017
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 Annual Media Confe
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 Annual Media Conference | 2016 financial year
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 Annual Media Conference | 2016 financial year
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 Annual Media Conference | 2016 financial year
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 Annual Media Conference | 2016 financial year
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 Annual Media Conference | 2016 financial year
Slide 9: Drive sales proficiency and innovation excellence
GF Corporation Drive sales proficiency and innovation excellence Value selling (2017) Innovation excellence (2016/2017) 9 Annual Media Conference | 2016 financial year
Slide 10: 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: Trend to sustainability spurs growth
GF Piping Systems Trend to sustainability spurs growth Potable water plant, City of Akron, Ohio, USA 11 Annual Media Conference | 2016 financial year
Slide 12: 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 Annual Med
Slide 13: Electric car business on the rise
GF Automotive Electric car business on the rise Battery housing Battery housing Renault Captur 13 Annual Media Conference | 2016 financial year
Slide 14: 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: Advanced technologies open new markets
GF Machining Solutions Advanced technologies open new markets Sharp camera lenses Stents for angioplasty 15 Annual Media Conference | 2016 financial year
Slide 16: Consolidated financial statements
Andreas Müller, CFO Consolidated financial statements 16 Annual Media Conference | 2016 financial year
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 Annual Media Conference | 2016 financial year
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: 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 22 Annual Media Conference | 2016 financial year
Slide 23: 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 24: 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 24 Annual Media Conference | 2016 financial year
Slide 25: 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 25 Annual Media Conference | 2016 financial year
Slide 26: Our new online report highlights performance increase
GF Corporation Our new “online” report highlights performance increase 26 Annual Media Conference | 2016 financial year
Slide 27: Outlook 2017
Outlook 2017 27 Annual Media Conference | 2016 financial year
Slide 28: 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 29: Thank you
Thank you 29 Annual Media Conference | 2016 financial year
Slide 30: 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