Feintool International Holding Ag · SIX:FTON
Feintool International — H1 2023 Earnings Presentation
35 slides from Feintool International's earnings presentation, Aug 16, 2023
Slide 1: Feintool Group Half-year report 2023 media conference
Feintool Group Half-year report 2023 media conference
Slide 2: Agenda
AGENDA 11:00 a.m. Arrival at Steinbachhof, Vaihingen 11:30 a.m. Welcome & Greetings Karin Labhart, CCO Half-yearly review, financials, outlook Torsten Greiner, CEO & Samuel Künzli, CFO 12:30 – 1 p.m. Stand-up buffet 1:00 – 2:15 p.m. Deep dive E-lamination stamping Gregor Eipert, Head of Stamping BU
Slide 3: Review
Review
Slide 4: The first half of 2023 remained challenging
REVIEW The first half of 2023 remained challenging Supply chains stabilized globally and automotive production ramped up worldwide Demand decline, particularly in Europe In 2023, private demand for passenger cars is suffering from eliminated or reduced subsidies in Germany for hybrids and BEVs
Slide 5: Key major orders highlight Feintool's successful transformation
HIGHLIGHTS Key major orders highlight Feintool’s successful transformation High value of orders received: Feintool on target for CHF 1 billion lifetime value of orders received in 2023 First major order secured for the series production of bipolar plates China Another major order in electrolam
Slide 6: Capital goods business: sale enables focus on pure play
CAPITAL GOODS BUSINESS Sale enables focus on “pure play” in high-volume parts production Since the closing of the sale on June 7, 2023, the capital goods business is owned by the Certina Group Feintool holds a minority interest of 15%, which specifically provides for close technological collabor
Slide 7: ESG rating: Feintool rated Low Risk
SUSTAINABILITY ESG rating: Feintool rated “Low Risk” External ESG rating by Sustainalytics: Feintool’s result: 17.7 = “Low Risk” The result lies in the top 19% of Feintool’s peers. Feintool will continue to systematically work on leveraging its potential for improvement in the field of ESG F
Slide 8: System Parts Europe: performance differed depending on technology
SYSTEM PARTS EUROPE Performance differed depending on the technology Electrolamination stamping Europe Large number of orders received in all areas of green energy Major contracts secured in the fields of BEV, wind power, and building services Strong sales in EV business, currently weak indust
Slide 9: System Parts USA: major orders secured in the USA
SYSTEM PARTS USA Major orders secured in the USA Encouraging sales and earnings performance in first half of 2023 After record number of orders received in 2022, orders received in fineblanking and forming for new developments by our customers remain strong this year. Market share expanded by
Slide 10: System Parts Asia: considerable potential for new technologies and growth
SYSTEM PARTS ASIA Considerable potential for new technologies and growth Encouraging sales and earnings performance in Q2 after a weak start to Q1 2023 in China due to coronavirus. Strong second half of 2023 expected. By expanding the Taicang site, China has become the hub for Feintool’s future
Slide 11: Financial results
en Financial results
Slide 12: Preliminary remarks: sale of capital goods business
PRELIMINARY REMARKS Sale of capital goods business and focus on parts business The sale of the capital goods business (technology segment) was completed on June 7, 2023. In the 2023 half-year report, this business area is presented under discontinued operations. To make the 2023 half-year report
Slide 13: Sales growth driven by Stamping Europe
SALES Sales growth driven by Stamping Europe (organic growth 4.5%) in CHF million Growth Growth 44.8% 500 Growth -10.4% -7.3% 450,0 450 -0,4 397,6 66,5 400 -10,5 -3,1 350 300 250 200 150 100 50 0 Sales H1 2022 System Parts US System Parts Asia System Parts Europe Finance/IC Sales H1 2023 Feintool ha
Slide 14: Sales by application
SALES BY APPLICATION Feintool’s transformation continues unabated H1 2022 H1 2023 In H1 2023, sales dependent Industrial Auto on the combustion engine ICE 17% 34% Industrial 19% Auto ICE remained at approx. 42% 26% (PY: 51%). Industrial business also grew to just under 20% despite difficult mark
Slide 15: EBITDA margin at roughly 9%
EBITDA EBITDA margin at roughly 9 % EBITDA fell to CHF 40.3 million in the reporting period, corresponding to in CHF million EBITDA an EBITDA margin of 8.9% (PY: CHF 44.0 million, 11.1% margin) 50 There were three main reasons for this decline: 45 40 Rising inflation (especially energy, shippi
Slide 16: EBITDA reconciliation H1 2022 to H1 2023
EBITDA – RECONCILIATION H1 2022 TO H1 2023 Feintool achieved an EBITDA margin of slightly under 10 % in CHF million Margin Margin Margin Margin Margin 14.3% 13.8% 8.6% 8.9% 11.1% 50 45 44,0 3,3 -3,7 -4,9 40,3 40 1,4 35 30 25 20 15 10 5 0 EBITDA H1 2022 System Parts US System Parts Asia System Parts
Slide 17: EBIT reconciliation H1 2022 to H1 2023
EBIT – RECONCILIATION H1 2022 TO H2 2023 Margin pressure in Europe due to delayed pass-through of higher input costs in CHF million Margin Margin Margin 4.1% 8.1% 2.7% Margin 20 3.0% 3,7 -2,8 16,2 Margin 2.7% 15 -6,2 12,2 1,2 10 5 0 EBIT H1 2022 System Parts US System Parts Asia System Parts Europa
Slide 18: Group result
GROUP RESULT Clearly positive net income from continuing operations (1.4 % of sales) in CHF million The loss from discontinued 15 12,2 10 4,0 operations amounts to CHF 1,7 6,5 27.9 million 5 0 -5 27,9 -10 -15 -20 -21,4 -25 EBIT Financial result Tax Result from Loss from Net loss continued disconti
Slide 19: Balance sheet: total assets decreased
BALANCE SHEET Total assets decreased due to sale of capital goods business Assets 30.06.2023 31.12.2022 Difference Total assets fell to CHF 864.4 in m CHF in m CHF in m CHF million (December 31, 2022: Cash and cash equivalents 68.7 78.6 -9.9 915.0 million) Trade and other receivables 128.3 110.0 1
Slide 20: Balance sheet: low debt and healthy equity ratio
BALANCE SHEET Low debt and extremely healthy equity ratio Liabilities 30.06.2023 31.12.2022 Difference Shareholder’s equity at CHF in m CHF in m CHF in m CHF 505.4 million Financial liabilities 120.1 120.7 -0.6 Equity ratio is extremely solid Other liabilities 238.9 253.8 -14.8 at 58.5% Sharehol
Slide 21: Shareholder's equity
SHAREHOLDER’S EQUITY High equity ratio of 58.5% in CHF million 550 540,5 The IAS 19 revaluation (CHF 540 5,0 1.8 million) had a positive 530 21,4 impact on equity 520 The dividend (CHF 5.0 510 10,6 1,8 0,1 505,4 million), Group result (CHF 500 21.4 million), and currency 490 translation effects
Slide 22: Cash flow
CASH FLOW Free cash flow excluding the effect from the sale was clearly positive in CHF million Feintool was able to finance 35 33,9 its capital expenditures from 30 4,1 its operating business. 25 20 Cash and cash equivalents 24,0 15 and available confirmed lines 10 of credit total CHF 218.4 mil
Slide 23: Outlook
cf FEINTOOL
Slide 24: Wide-ranging product portfolio
WIDE-RANGING PRODUCT PORTFOLIO For automotive – especially e-mobility –, industrial and renewable energy markets. Automotive Industrial Linear motors Industrial Motors Servo motors Drive motors Air blowers Air Movement Ventilation Axial/radial ventilators Centrifugal pumps Pumps Wate
Slide 25: Global car production
GLOBAL CAR PRODUCTION Good market outlook – transformation accelerating Number of vehicles produced up to 3.5 t gross weight, worldwide Stable growth in car production, returning to prepandemic levels in CAGR 2025: CAGR +1.7% (2023 – 2030) +1.7% 100 94 83 85 87 89 90 Strong trend towards fully e
Slide 26: Market forecast for fuel cells and electrolyzers
MARKET FORECAST FOR FUEL CELLS & ELECTROLYZERS – GLOBAL Different market development for bipolar plates 4.0 3.87 Attractive market potential for Bipolar plates for fuel cells1 3.5 FEINforming for the production of Bipolar plates for electrolyzers2 bipolar plates, Market size2 BPP (billion €/a) 3.0
Slide 27: The role of hydrogen in decarbonization
THE ROLE OF HYDROGEN IN DECARBONIZATION Bipolar plates from Feintool for electrolyzers Bipolar plates from Feintool for fuel cells FROM FUEL CELLS Image: Project sponsor Jülich on behalf of German Fed. Ministry of Education and Research Feintool half-yearly report 2023 media conference, August 16, 2
Slide 28: Fuel cells and electrolyzers: FEINforming for bipolar plates
FUEL CELLS AND ELECTROLYZERS FEINforming for the production of bipolar plates Series order secured for mobile application Close collaboration with SITEC Scope of delivery: single plates or ready-to-install bipolar plates Feintool half-yearly report 2023 media conference, August 16, 2023 27
Slide 29: Mega trends in the energy sector
MEGA TRENDS IN THE ENERGY SECTOR – SUPPORTED BY FEINTOOL Feintool half-yearly report 2023 media conference, August 16, 2023 28
Slide 30: Transformation towards green energy markets continues
THE TRANSFORMATION TOWARDS GREEN ENERGY MARKETS CONTINUES Feintool is leveraging the green energy opportunities Feintool plans to further increase the share of the Mio CHF 1200 future-oriented businesses to approx. 75% until 2027 1200 4% 4% More than 50% will be linked to green energy markets. 1
Slide 31: Economic situation
ECONOMIC SITUATION Expectation for 2023: Eurozone and USA: weak to slight growth, in some Economic growth cases recessionary tendencies (Germany); China: above-average growth (IMF forecast 07/2023) Weak industrial environment in Europe 2023 (construction industry, ...) Outlook for 2024: Eurozo
Slide 32: Guidance: slight increase in sales guidance
GUIDANCE Slight increase in sales guidance Our guidance is based on three key assumptions: We continue to expect higher global automotive production in 2023 than in 2022. Therefore we expect higher global production volumes in the second half of the year than in the first half Furthermore, we ex
Slide 33: Upcoming events
UPCOMING EVENTS Investor Relations presentations of Feintool Mid-term analysis by Stifel Switzerland August 22, FIFA Museum Zurich INVESTORA 2023 September 14, THE HALL Zurich Feintool half-yearly report 2023 media conference, August 16, 2023 32
Slide 34: Q&A
Feintool Group Half-year report 2023 media conference: Q&A
Slide 35: Disclaimer
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 disclaims any liability whatsoever for t
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