Slide 1: Half-year 2022 presentation
Engineering precisely what you value Half-year 2022 presentation Rorschacherberg, 28 July 2022
Slide 2: Disclaimer
Disclaimer Starrag Group is making great efforts to include accurate and up-to-date information in this presentation, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation and Starrag Group does not
Slide 3: Agenda
Agenda Market and business review Financial review Outlook 2
Slide 4: Agenda
Agenda Market and business review Financial review Outlook 3
Slide 5: Substantial improvement of operating profit – Order intake clearly above prior-year period
Substantial improvement of operating profit – Order intake clearly above prior- year period – Order backlog > CHF 300 million – Sales at prior-year level EBIT up to CHF 6.1 million or 4.4% of sales – therefore clear increase compared to prior-year period (CHF 0.8 million / 0.6%) and full fiscal year
Slide 6: Strong order intake and substantial order backlog
Strong order intake and substantial order backlog CHF m 500 461 418 378 400 349 343 244 300 229 254 170 229 208 193 200 104 366 302 284 104 303 256 100 217 173 174 187 190 142 150 150 89 0 2017 2018 2019 2020 2021 H2 2020 / H2 2021 / H1 2021 H1 2022 Order intake H2 prior year Order intake H1 Order i
Slide 7: Order intake breakdown: Stable recurring service
Order intake breakdown: Stable recurring service CHF m 600 500 400 143 104 Large orders 41 (>5m CHF) 25% 67 119 300 21 200 Small/medium 239 237 6 246 199 189 orders 59% 168 125 100 80 77 Recurring 69 60 71 65 69 0 service 16% 2017 2018 2019 2020 2021 H2 2020 / H2 2021 / H1 2021 H1 2022 Stable serv
Slide 8: Order intake by industry: Industrial and Aerospace clearly up
Order intake by industry: Industrial and Aerospace clearly up CHF m 600 500 400 171 139 Aerospace 33% 300 127 110 122 38 41 Energy 10% 38 40 52 200 25 37 176 50 132 17 166 195 Industrial 47% 157 100 139 112 76 63 46 44 13 25 43 Transport 10% 0 2017 2018 2019 2020 2021 H2 2020 / H2 2021 / H1 2021 H1
Slide 9: Order intake by region: Asia and Europe up, Americas down
Order intake by region: Asia and Europe up, Americas down CHF m 600 500 69 400 79 Americas 19% 24 62 120 25 300 50 Asia 12% 94 80 112 11 200 81 26 272 40 289 231 237 100 186 161 Europe 69% 126 0 2017 2018 2019 2020 2021 H2 2020 / H2 2021 / H1 2021 H1 2022 Covid-19 still impacting all regions, but
Slide 10: Strong basis for long term earnings and sales growth
Strong basis for long term earnings and sales growth Programme „Starrag 2021“ implemented Considerable improvement in operational excellence Greater application expertise Streamlining of structures Permanently lower cost basis In 2020 and 2021 over CHF 30 million (operating and staff costs) Full eff
Slide 11: Aerospace Technology Days 2022
Aerospace Technology Days 2022 Aerospace and Turbine Competence Center attracts with manufacturing expertise More than 200 participants from 22 countries attended the Technology Days, which took place at our location from 5 to 6 July 2022 after a 3-year interruption – due to Corona. Together with it
Slide 12: Bumotec 191neo — a new edition of the top-of-the-range s191 model
Bumotec 191neo — a new edition of the top-of-the-range s191 model Multitasking — digital and ergonomic Highly flexible: The Bumotec 191neo is not just a single machining solution, but is basically twelve different machines in one platform. This diverse range is the only way to meet the specific requ
Slide 13: One for all - the new 5-axis horizontal machining center Heckert T55
One for all - the new 5-axis horizontal machining center Heckert T55 Particularly suitable for multitasking complete machining of workpieces weighing up to 700 kilograms The Heckert T55 is a highly productive multifunctional talent with a very compact, robust machine design and a low-vibration rotar
Slide 14: Successful start to the trade fair year 2022
Successful start to the trade fair year 2022 Starrag is exhibiting at the most important trade fairs after the long pandemic break MACH, Birminhgam Global Industrie, Paris Airshow, Farnborough 12
Slide 15: Agenda
Agenda Market and business review Financial review Outlook 14
Slide 16: Stable sales revenue
Stable sales revenue Sales revenue; fx adjusted +2.7% CHF m Low organic increase due to 250 High order intake H2 2021 Delays in order fulfillment caused by Covid-19 200 Cancellations due to the Ukraine war and other global political consequences 150 4 -4 FX translation impact 100 Stronger EUR/CHF tr
Slide 17: EBIT development: extraordinary effect in Contribution from orders
EBIT development: extraordinary effect in Contribution from orders CHF m 3.0 6.1 5.7 0.4 0.2 0.8 10.8 8.8 EBIT Cancellation Other Product Personal Depreciation Fx Impact EBIT 2021 H1 Impact Operating Margin Mix Expenses 2022 H1 Income EBIT Margin 0.6% 4.4% 16
Slide 18: Net income up
Net income up CHF m H1 2022 H1 2021 Change Operating result EBIT 6.1 0.8 663% Interest expenses, net -0.1 -0.3 67% FX result, net 0.3 - n/a Other financial result -0.4 -0.3 -33% Total Financial result, net -0.2 -0.6 67% Income before taxes 5.9 0.2 n/a Income tax expenses -0.9 -0.2 n/a Net income 5.0
Slide 19: Balance sheet: Equity and equity ratio continuously strong
Balance sheet: Equity and equity ratio continuously strong CHF m Assets Liabilities 350 300 18 12 30 24 Cash 250 86 117 120 94 Financial debt Receivables 200 Operating liabilities Inventories 150 92 111 Shareholders' equity Fixed assets 100 168 168 50 85 82 0 31.12.2021 30.06.2022 31.12.2021 2 Total
Slide 20: Free cash flow impacted by increase in net working capital
Free cash flow impacted by increase in net working capital CHF m Units 15 10 3.8 -0.1 0.4 -13.5 Base Value Change1 5.0 5 Change2 Change3 -4.3 -7.6 Change4 0 Change5 Change6 Change7 -3.3 Change8 Change9 -5 Change10 Change11 Change12 Change13 Change14 -10 Change15 Change16 Net Depre- Non- Other Change
Slide 21: Agenda
Agenda Market and business review Financial review Outlook 20
Slide 22: Continuation of strategy implementation
Continuation of strategy implementation Focus on the most attractive market/product segments and regions to better exploit the Group-wide growth and profit potential Differentiation through application competence, technology, service competence and premium market presence Better scaling of the exist
Slide 23: Focus of strategic actions
Focus of strategic actions Innovation Geographical footprint Operational excellence Leading application Europe Time-to-market and competence delivery times North America Starrag Integrated Customer proximity Production System China Project (digitalization; life Hybrid sales in execution cycle perfor
Slide 24: General outlook
General outlook Global economic prospects rather clouded Impact on Starrag Group’s business in view of rapid changes and numerous influencing factors hardly predictable All the more important that internal homework is done 23
Slide 25: Financial outlook
Financial outlook Guidance FY 2022 2021 H1 2021 H1 2022 (in local currencies) Order intake 379 150 190 2022 ~ 2021 Sales 293 139 140 2022 2021 EBIT margin -2.9% 0.6% 4.4% 2022 >> 2021 24
Slide 26: Corporate calendar and Contact details
Corporate calendar and Contact details 27.01.2023 Preliminary information on FY 2022 10.03.2023 Presentation of FY 2021 annual report and results to analysts/media 21.04.2023 Annual General Meeting in Rorschach 27.07.2023 Half-year report 2023 Christian Walti, CEO Phone +41 71 858 81 11 Thomas Erne,
Slide 27: We are pleased to answer your questions. Thank you.
We are pleased to answer your questions. Thank you. www.starrag.com 26