Starragtornos Group Ag · SIX:STGN
Starragtornos — Starrag Group — FY2021 Earnings Presentation
39 slides from Starragtornos's earnings presentation, Mar 4, 2022
Slide 1: Financial Year 2021: Media and Analyst Conference
Engineering precisely what you value Financial Year 2021: Media and Analyst Conference Zurich, 4 March 2022
Slide 2: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 1
Slide 3: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Starrag Group’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statemen
Slide 4: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 3
Slide 5: Order intake nearly doubled, sales stable, dividend proposed
Order intake nearly doupled – Significant increase in order backlog – Sales at the same level as in the previous year – further improvement in operating earnings – Dividend proposed Order intake up 97% to CHF 379 million (up 96% at constant exchange rates) Orde backlog of CHF 256 million (up 47%) se
Slide 6: Group strengthened with Programme 2021
Group strengthened with «Programme 2021» «Programme 2021» largely completed in the reporting year Significant increase in operational excellence Renewed management team Strengthened application competence Steamling of structures This creates the preconditions for a lasting optimisation of earnings F
Slide 7: Order development influenced by large orders and external factors
Order development influenced by large orders and external factors Mio. CHF 600 CAGR (fx adjusted): 2.7% 500 400 300 200 100 0 2017 2018 2019 2020 2021 6
Slide 8: Order intake by order size: Plus in all categories
Order intake by order size: Plus in all categories, primarily large orders CHF m 600 500 400 143 41 119 Large orders 300 67 (> 5 Mio.) 31% 200 239 237 199 6 Small/medium 189 orders 50% 125 100 80 77 Recurring 69 60 71 0 Service 19% 2017 2018 2019 2020 2021 Large oders back in line with previous ye
Slide 9: Order intake by sector: increase throughout
Order intake by sector: increase throughout CHF m 600 500 400 171 127 300 110 Aerospace 33% 38 122 38 40 Energy 11% 200 25 176 50 157 132 17 166 Industrial 44% 100 112 76 63 44 46 Transport 12% 0 13 2017 2018 2019 2020 2021 Aerospace more than doubled thanks to space business Industrial plus 44%
Slide 10: Order intake by region: Europe with biggest plus
Order Intake by region: Europe with biggest plus CHF m 600 500 24 400 101 62 Amerika 16% 120 45 300 94 80 Asia 21% 112 200 26 272 40 231 237 Europe 63% 100 186 126 0 2017 2018 2019 2020 2021 Largest increase in Europe, followed by Asia and Amerika 9
Slide 11: Market trends by industry
Market trends by industry Key markets Aerospace and Industrial with long-term positive perspective Aerospace Energy Transportation Industrial 33% 9% 13% 45% Catch-up effect after Sustainable investment in Agriculture: Positive Good demand from mecha- temporary slump due to wind farms for the
Slide 12: Faster health check for the BAZ
Faster health check for the BAZ The new online Fingerprint offers a fast, qualified machine analysis Customer benefits Save on maintenance and resource costs Plan repairs according to the degree of wear Reschedule personnel during repair times Prevent unplanned machine failures due to wear and tear
Slide 13: Virtual World Premiere from Chemnitz
Virtual World Premiere from Chemnitz Virtual World Premiere from Chemnitz Customer benefits Low costs per part due to maximum productivity Highly dynamic solution for heavy machining up to 1.5 tonnes on 24 m² Thanks to reduced downtime it works faster and is more energy-efficient 12
Slide 14: Virtual showroom Starrag Vuadens
Virtual showroom Starrag Vuadens Virtual tour through the entire Bumotec and SIP machine portfolio Customer benefits Optimised machining solutions for the sectors of Luxury Goods, Med Tech and Micromechanics 32 different demo applications available 13
Slide 15: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 14
Slide 16: Order backlog ensures capacity utilisation
Order backlog ensures capacity utilisation CHF m 500 461 400 379 349 343 245 300 172 229 208 192 200 366 302 284 104 256 100 216 171 174 150 142 89 0 2017 2018 2019 2020 2021 Order intake H1 Order intake H2 Order backlog Order intake 2021: +97% (fx adjusted +96%) Order backlog: +47% (fx adjusted
Slide 17: Sales development
Sales development Sales -2%, fx adjusted -2% CHF m 400 300 -5 1 Low effect from currency fluctuations Euro (2021: 1.0935, 2019: 1.0813) 200 297 293 100 0 2020 Organic FX 2021 Trans- lation 16
Slide 18: Income statement: relief through savings programmes
Income statement: relief through savings programmes CHF m Revenue Expenses 342 13 4.5% 292 0 Restructuring 242 120 137 41.0% Sales revenue 192 Material/inventory change 142 297 293 Personnel 118 118 40.5% 92 Other operating expenses/income 42 Depreciation 41 32 14.0% 8 9 2.8% -9 EBIT 2020 2021 2020
Slide 19: EBIT bridge
EBIT bridge Burden due to restructuring MGL 2.1 5.7 1.3 11.5 0.3 0.6 0.8 0.2 -8.5 Contribution Opex Severance Relocation costs Legal and Depreciation Others EBIT 2020 from order payments Service consulting costs stock MGL EBIT 2021 Restructuring costs burden EBIT in 2021 with 13.3 million CHF. Bef
Slide 20: 2021 burdened by restructuring
2021 burdened by restructuring CHF m 2021 2020 Change Operating result EBIT -8.5 1.3 -9.8 Interest expenses, net -0.5 -0.3 -0.2 FX result, net 1.3 -0.6 1.9 Other financial result -0.9 -0.8 -0.1 Total financial result, net -0.1 -1.7 1.6 Income before taxes -8.6 -0.5 -8.1 Income tax expenses 3.2 -0.2
Slide 21: Balance sheet: Strong financial base
Bilance sheet: Strong financial base CHF m Assets Liabilities 350 300 33 12 26 Cash 30 Receivables 250 88 116 94 120 Inventories 200 Fixed assets 150 108 92 Financial liabilities 100 168 175 Operating liabilities 50 89 85 Shareholders' equity 0 31.12.2020 31.12.2021 31.12.20202 2 Net assets 318 300
Slide 22: Intact free cash flow 2021
Intact free cash flow 2021 CHF m Units 30 25 Base Value 18.5 -5.7 Change1 20 0.7 16.4 -6.2 Change2 15 Change3 0.7 11.0 Change4 10 Change5 Change6 Change7 Change8 5 8.3 Change9 Change10 0 -5.4 Change11 Change12 Change13 Change14 -5 Change15 Change16 Change17 -10 Net income Depreciation Change in long
Slide 23: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 22
Slide 24: Goals of Programme 2021 achieved
Goals of “Programm 2021” achieved 2021 2020 Readiness for growth Reduced break-even New orders with Value added co-operation benchmark profitability 2019 in Group Renewed product port- folio Review and con- solidation Gain profitability Accelerate change Stable profitability Evaluate synergy potenti
Slide 25: Mid-term financial targets unchanged
Mid-term financial targets unchanged Growth rate plus 5% p.a. Profitability 8% EBIT margin Dividend ratio 35-50% of net profit In local currencies and as average over the business cycle. 24
Slide 26: Continuation of the strategy implementation
Continuation of the strategy implementation Focus on the most attractive market/product segments and regions to better exploit the Group-wid growth and profit potential Differentiation through application competence, technology, service competence and premium market presence Better scaling of the ex
Slide 27: Economic outlook
Economic outlook 2028 Prospects fundamentally confident VDW expects double-digit growth in order intake External risks Impaired by pandemic events Geopolitical disortions Expectations for customer industries Aerospace Stronger recovery of the aviation sector Industrial Positiv signals already in 202
Slide 28: Guidance 2022
Guidance 2022 Order intake Below 2021 (CHF 379 million) Sales revenue Significantly above 2021 (CHF 293 million) EBIT Significantly above 2021 (CHF 4.8 million before restructuring costs) Prerequisites: Financial year 2022 not affacted by pandamic events or any geopolitical distortions! in local cur
Slide 29: Summary
Summery Setbacks 2021 Order intake and operating income significantly above previous year Earnings impacted by Mönchengladbach restructuring expenses – reconciliation of interests concluded with works council “Programme 2021” for internal strengthening of the Group practically completed Permanently
Slide 30: Corporate calendar and Contact details
Corporate calendar and Contact details 23.04.2022 Annual General Meeting 28.07.2022 Half-year report 2022 27.01.2023 Sales and orders 2022 10.03.2023 Presentation of 2022 results for analysts and media 21.04.2023 Annual General Meeting Thomas Erne, CFO investor@starrag.com www.starrag.com 29
Slide 31: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 30
Slide 32: Thank you for your interest. Stay healthy!
Thank you for your interest. Stay healthy! www.starrag.com 31
Slide 33: Backup information
Engineering precisely what you value Backup information
Slide 34: Share details (as of 31 December 2021)
Share details (as of 31 December 2021) Market capitalization CHF 157 million Listed at SIX Swiss Exchange Main Standard Ticker: STGN, Valor number 236‘106, ISIN CH00023610608 3‘360‘000 registered shares, nominal value of CHF 8.50 each Free float 29% Stable shareholder structure Others 28.8% Walter F
Slide 35: 150 years tradition in innovation
150 years tradition in innovation Key milestones for Starrag Group to become and remain a reliable long-term partner Scientific Machine Machine Machine Machine Textile Machine Machine Machine Software/ instruments tools tools tools tools machinery tools tools tools Technology company 34
Slide 36: At your service
At your service Production site Logistic center Service center 35
Slide 37: Group Management
Group Management Dr. Christian Walti, CEO Thomas Erne, CFO (1967, Swiss) (1973, Swiss and German) Since 01.06.2018: CEO and Head of Regional Sales Since 01.09.2020 CFO and Head of Corporate Center 2012 – 2018 Head of Bosch Packaging Systems, Beringen, 2015 – 2020 CFO Europe at DMG Mori Switz
Slide 38: World production machine tools 1991 - 2020
World production machine tools 1991 - 2020 EUR b 90 +3% 80 +8% +6% -2% -7% 70 +4% -13% 60 -19% 50 40 76 78 74 73 71 73 69 68 65 30 58 59 55 54 48 41 44 41 20 36 40 37 34 34 34 34 33 27 27 29 24 23 10 0 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 Note: Wi
Slide 39: World production machine tools 2018 - 2020: Top 20 countries
World production machine tools 2018 - 2020: Top 20 countries EUR b CN US DE JP IT KR MX IN TW RU FR TR CA VN CH TH ES AT PL 2018 2019 2020 GB 0 5 10 15 20 25 Top 20 consume 92% of the total EUR 57 billion machine tool market. Note: Without Parts/accessories: Source: VDW World Machine Tool Statisti