Feintool International Holding Ag · SIX:FTON
Feintool International — H1 2014 Earnings Presentation
31 slides from Feintool International's earnings presentation, Aug 19, 2014
Slide 1: Feintool Group Half-Year Results Conference, 19 August 2014
Feintool Group Half-Year Results Conference, 19 August 2014 Feintool Group Half-Year Results Conference 19.08.2014
Slide 2: Disclaimer
2014 HALF-YEAR RESULTS CONFERENCE 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 discla
Slide 3: Agenda
2014 HALF-YEAR RESULTS CONFERENCE Agenda Key developments Heinz Loosli, CEO Financial reporting Thomas Bögli, CFO Outlook Heinz Loosli, CEO Questions and answers 2 Feintool Group Half-Year Results Conference 19.08.2014
Slide 4: Feintool Group on target
KEY DEVELOPMENTS Feintool Group on target (continuing operations) Sales +19.3% to CHF 244.9 million EBITDA +52.1% to CHF 30.6 million EBIT +141.3% to CHF 17.4 million Group net income +234% to CHF 12.0 million 3 Feintool Group Half-Year Results Conference 19.08.2014
Slide 5: Strategic focus on fineblanking and forming
KEY DEVELOPMENTS Strategic focus on fineblanking and forming Sale of IMA Automation concludes the divestment of all non-core businesses AUTOMATION Market environment remains positive thanks to flourishing automotive industry. Growth momentum thanks to new call-offs SYSTEM PARTS Sales successes
Slide 6: System Parts: Long lasting connection to Japan
HIGHLIGHTS: SYSTEM PARTS Long lasting connection to Japan 150 years of diplomatic relations between Japan and Switzerland 30-year presence of Feintool in Japan Anniversary event for customers and employees at Atsugi plant 5 Feintool Group Half-Year Results Conference 19.08.2014
Slide 7: System Parts: On a growth trajectory in Europe
HIGHLIGHTS: SYSTEM PARTS On a growth trajectory in Europe Sixth production line for gearbox discs commissioned in Jena at the end of April Disc production up 34% in first half of year to 34 million units. Expectations for 2014: 85 million units 23 tools for DAT assembly groups currently at sam
Slide 8: System Parts: Forming developing successfully
HIGHLIGHTS: SYSTEM PARTS Forming developing successfully Improvement and restructuring measures at Forming Europe increased the result by CHF 4.1 million year- on-year Disc carrier production for the new Daimler 9-speed automatic transmission has started successfully. Expected sales of at least
Slide 9: System Parts: Greater dynamism in Nashville, USA
HIGHLIGHTS: SYSTEM PARTS Greater dynamism in Nashville, USA Third forming press in production: sales up 47% in first six months Site profitable for first time in 15-year history High visibility regarding additional volumes and orders Further expansion steps, including an additional forming p
Slide 10: Fineblanking Technology: Impressive innovation
HIGHLIGHTS: FINEBLANKING TECHNOLOGY Impressive innovation First delivery of the world's fastest, most productive fineblanking press, the XFT1500speed. Very good customer feedback Refocusing of sales in Asia and concentration of our activities in China at new technology centre in Songjiang, Shang
Slide 11: Financial Reporting
Thomas Bögli, CFO Financial Reporting Feintool Group Half-Year Results Conference 19.08.2014
Slide 12: Preliminary comments: Sale of IMA Automation Amberg GmbH
PRELIMINARY COMMENTS Sale of IMA Automation Amberg GmbH On 17 June, 2014, Feintool sold IMA Automation GmbH; the transaction was concluded on 31 July 2014 Automation segment (including real estate) is shown as discontinued business, prior year has been adjusted Assets and liabilities of Automa
Slide 13: Fineblanking Technology: Sales and EBIT at prior-year level
BUSINESS PERFORMANCE: FINEBLANKING TECHNOLOGY Sales and EBIT at prior-year level Sales at CHF 47.1 million EBIT: CHF 3.4 million (margin: 7.3%) Higher gross margin (+80 bps) compensates for higher R&D costs Order backlog of CHF 37.5 million secures six months' capacity utilization 12 Feintoo
Slide 14: System Parts: EBIT nearly doubled, margin at 8.0%
BUSINESS PERFORMANCE: SYSTEM PARTS EBIT nearly doubled, margin at 8.0% 20.2% organic growth to CHF 205.3 million Growth in local currency: +24.4% EBITDA of CHF 28.5 million, up 41% EBIT of CHF 16.4 million; up 91% EBIT margin at 8.0% All regions positive 13 Feintool Group Half-Year Resul
Slide 15: Orders received and backlog at high level
BUSINESS PERFORMANCE: FEINTOOL GROUP Orders received and backlog at high level Orders received at CHF 269.4 million; up 4.3% Order backlog at CHF 230.7 million; up 11.6% compared with 31.12.2013 Order backlog for capital goods segment ensures six months' capacity utilization 14 Feintool Group
Slide 16: CHF 245 million in sales
BUSINESS PERFORMANCE: FEINTOOL GROUP CHF 245 million in sales 19.3% organic growth; 22.9% in local currencies System Parts accounts for 84% of business and is the growth driver Geographical sales distribution largely unchanged (Europe 55%, America 25%, Asia 20%) 15 Feintool Group Half-Year Res
Slide 17: EBITDA up 52%
BUSINESS PERFORMANCE: FEINTOOL GROUP EBITDA up 52% EBITDA of CHF 30.6 million EBITDA margin increased by 270 bps to 12.5% Higher capacity utilization and improved productivity showing results 16 Feintool Group Half-Year Results Conference 19.08.2014
Slide 18: EBIT: CHF 17.4 million
BUSINESS PERFORMANCE: FEINTOOL GROUP EBIT: CHF 17.4 million EBIT up by 141% EBIT margin more than doubled (+360 bps) to 7.1% Negative currency impact of CHF 0.6 million System Parts accounts for 87% of earnings 17 Feintool Group Half-Year Results Conference 19.08.2014
Slide 19: Net income: Improvement at operating level
NET INCOME (in CHF million) Improvement at operating level 20 18 17.4 16 Financial expenses at prior-year level 14 -2.3 1.6 13.6 12.0 12 -3.1 Tax rate approx. 20% 10 Net income from 8 continuing operations 6 more than tripled to 4 CHF 12.0 million 2 Margin 4.9% 0 Net financial Taxes Net inco
Slide 20: Balance sheet: Total assets of CHF 425.8 million
BALANCE SHEET Total assets of CHF Assets 30.06.2014 31.12.2013 Difference inTCHF in TCHF in TCHF Cash and Cash equivalents 21.5 28.6 -7.1 425.8 million Trade and other receivables 80.7 75.1 5.6 Current assets* increased by 10.2% to Inventories / Net assets of production i.p. 64.5 68.7 -4.2 Prepaid
Slide 21: Capital expenditure by region
CAPITAL EXPENDITURE BY REGION 30.06.2014 30.06.2013 Capital expenditure increased again Investments of CHF 24.0 million for innovation and new markets 2014 influenced by installation of new transfer press in USA Modern equipment at all sites Innovation is driving factor CHF 24.0 million CHF
Slide 22: Balance sheet: Shareholders' equity up slightly
BALANCE SHEET Liabilities 30.06.2014 in TCHF 31.12.2013 in TCHF Difference in TCHF Shareholders' equity Interest bearing liabilties 68.6 61.6 7.0 up slightly Shareholders' equity up Other liabilties* 151.0 153.5 -2.5 Liabilities held for sale 18.6 0.0 18.6 slightly at CHF 187.6 Shareholders equiti
Slide 23: Cash flow
CASH FLOW Cash Flow Statement Free cash flow slightly negative due 1. HY 2014 1. HY 2013 Actual Actual Difference in Mio. CHF in Mio. CHF Cash Flows from operating activites before cha 25.8 24.0 1.8 to investments (Increase)/decrease in net working capital (NWC -7.5 -21.9 14.4 Cash flows from operat
Slide 24: Employees by region
EMPLOYEES BY REGION 30.06.201439-1 30.06.2013 11% new jobs Asia Asia created CH CH USA 240 USA 1,954 employees*, 162 357 sharp increase in USA 359 and Asia 504 605 Disproportionately small increase relative 711 750 to sales 18% of all employees* Europe Europe in Switzerland 74 apprentices* i
Slide 25: Successful first half of 2014
SUCCESSFUL FIRST HALF OF 2014 Strong improvement in Mio. CHF Order Entry * CHF 269.4 + 4% Net Sales * CHF 244.9 + 19% in key figures EBITDA * CHF 30.6 + 52% System Parts segment EBIT * CHF 17.4 + 141% is growth driver Cash flow influenced by Net debt CHF 47.1 - 64% high capital investments Equit
Slide 26: Outlook
Heinz Loosli, CEO Outlook 25 Feintool Group Half-Year Results Conference 19.08.2014
Slide 27: Forecasts for second half of 2014
FORECASTS FOR SECOND HALF OF 2014 System Parts as growth driver Europe and America likely to continue developing successfully Additional costs at some sites due to preparation for new products Increase in sales in Asia New developments at Fineblanking Technology are on track; leading sales e
Slide 28: Guidance: Targets confirmed
GUIDANCE Targets confirmed Barring any possible impact of the latest political events on our markets, we expect group sales of CHF 470-480m. This figure has been adjusted merely to reflect the effect of the sale of IMA Automation Amberg GmbH. On that basis, we anticipate an EBIT margin in the region
Slide 29: IR calendar: Important dates
IR CALENDAR Important dates 28 October 2014 Media release 3rd quarter 2014 3 March 2015 Annual results / Annual report 2014 Annual results conference 14 April 2015 Annual general meeting 28 Feintool Group Half-Year Results Conference 19.08.2014
Slide 30: Questions and answers
Door lock components Manufactured by Feintool fineblanking technology Questions and answers 29
Slide 31: Thank you for your attention
Feintool Group Thank you for your attention 30 Feintool Group Half-Year Results Conference 19.08.2014