Slide 1: Media & Analysts Conference
Media & Analysts Conference Tornos Holding Ltd. Zurich, March 14, 2017 Media & Analysts Conference Speakers François Frôté – Chairman of the Board Bruno Edelmann – Chief Financial Officer Michael Hauser – Chief Executive Officer Media & Analysts Conference March 14, 2017 2
Slide 2: Agenda
Media & Analysts Conference Agenda Welcome Overall Review François Frôté, Chairman of the Board Financial Results 2016 Bruno Edelmann, Chief Financial Officer (CFO) Strategic reorientation 2017 – status update 03/2017 Michael Hauser, Chief Executive Officer (CEO) Questions and Answers Media & Analys
Slide 3: Key Financials
Overall Review Key Financials MCHF 2016 2015 Net sales 136.2 164.0 EBITDA -0.3 4.9 EBIT -3.0 2.4 Net result -3.6 0.9 Net cash -4.8 11.3 Media & Analysts Conference March 14, 2017 5 Overall Review MultiSwiss 8x26 - MultiSwiss 6x32 Media & Analysts Conference March 14, 2017 6
Slide 4: Asia production footprint
Overall Review Asia production footprint Xi’an (China) Surface: 2 500 m2 Capacity: 1 000 units/year Since 2014 Taichung (Taiwan) Surface: 2 300 m2 Capacity: 250 units/year Since 2013 Media & Analysts Conference March 14, 2017 7 Financial Results 2016 Bruno Edelmann – Chief Financial Officer
Slide 5: Summary and Order Intake
Financial Results 2016 Summary Order intake down by MCHF 26.5 or 16.6% to MCHF 133.5 Net sales down by MCHF 27.8 or 16.9% to MCHF 136.2 EBITDA MCHF -0.3 vs. MCHF 4.9 PY EBIT MCHF -3.0 vs. MCHF 2.4 PY Net result MCHF -3.6 vs. MCHF 0.9 PY Free cash flow MCHF -15.6 Net cash position of MCHF -4.8 compar
Slide 6: Order Intake by Region and Industry
Financial Results 2016 Order Intake Machines - Regions 2015 2016 13% 11% 17% 17% 70% 72% Europe Asia Americas Europe remains the core region for Tornos Gratifying order intake in Switzerland and France Disappointing decline in Asia and Americas Growth potential in Americas and Asia Media & Analysts
Slide 7: Net Sales and Product Lines
Financial Results 2016 Net Sales MCHF 200.0 164.0 150.0 136.2 100.0 -16.9% 50.0 0.0 2015 2016 Change in product mix caused fall in net sales Gratifying development of Asia machines sales; 23% increase vs. PY Media & Analysts Conference March 14, 2017 13 Financial Results 2016 Net Sales – Product Lin
Slide 8: Income Statement
Financial Results 2016 Income Statement – 1/2 in % of in % of in MCHF 2016 sales 2015 sales Net sales 136.2 164.0 Gross profit 40.6 29.8% 49.3 30.1% Marketing and sales -21.8 -16.0% -22.9 -14.0% General and administrative expense -16.0 -11.7% -17.1 -10.4% Research and development -7.0 -5.1% -7.9 -4.
Slide 9: EBITDA to EBIT; Change in Net Result
Financial Results 2016 EBITDA to EBIT in % of in % of in MCHF 2016 sales 2015 sales EBITDA -0.3 -0.2% 4.9 3.0% Depreciation and amortization -2.7 -2.0% -2.5 -1.6% EBIT -3.0 -2.2% 2.4 1.4% EBITDA and EBIT substantially below PY figures Media & Analysts Conference March 14, 2017 17 Financial Results 2
Slide 10: Personnel Expenses and Employees
Financial Results 2016 Personnel Expenses 85 800 75 657 700 648 633 631 Number of employees 65 570 600 MCHF 55 500 45 400 78.2 56.4 35 62.8 59.3 300 59.1 25 200 2012 2013 2014 2015 2016 Personnel expenses Number of employees w/o apprentices Number of employees and personnel cost reduced. Tornos empl
Slide 11: Balance Sheet and Cash Flow Statement
Financial Results 2016 Balance Sheet in MCHF 31.12.2016 in % 31.12.2015 in % Cash and cash equivalents 9.6 20.6 Trade receivables 18.7 23.2 Inventories 67.0 64.1 Other current assets 9.3 8.7 Current assets 104.6 81.5% 116.6 82.8% Non-current assets 23.7 18.5% 24.2 17.2% Financial liabilities 14.4 9.
Slide 12: Outlook and Calendar of events 2017
Financial Results 2016 Outlook Economic development affected by political decisions in EU and USA Elections in Germany and France Declining bank sector in Italy Outcome of Brexit negotiations could weaker European economic activity Revaluation of CHF Automotive supply industry likely to recover / Wa
Slide 13: Strategic reorientation 2017 – Strategy 2012-2017
Strategic reorientation 2017 Status update 03/2017 Michael Hauser – Chief Executive Officer Strategy 2012-2017 Six strategic thrusts Internationalization of business Strengthen flexibility Growth through innovation Make service a business Enhance operational excellence Offer unique solutions for tar
Slide 14: On course for the future; Geographical production footprint
Priorities and outlook for 2017 On course for the future n pla 016 m ter r 2 mid- s o t o kf to ing artm r en tl o rd p e cco de ut i d ou io n a n all in Mo g n t i in sa nta ce ing urc i e o rie ellen ctur utso it e ic r l ex c fa g O i or teg iona N ma mizin ess nu Pr tra t A ax i in es era LE us
Slide 15: Tornos Xi'an
Internationalization of business Tornos Xi’an History Chinese JV (Tornos with 70% stake) Announcement of JV in Q2/2013 First product (CT 20) delivered in Q1/2014 Relocation to new facility (Oct. 2014) New products Swiss DT 13 and Swiss DT 26 developed and launched in Q3/2015 and Q1/2016 Sufficient c
Slide 16: Tornos Taiwan; Sustainable footprint adaptation
Internationalization of business Tornos Taiwan History Taiwanese OEM contract manufacturer selected in 2012 1st product (Swiss ST 26 NCE) presented in Q4/2012; delivery Q1/2013 2nd product (Swiss GT 26) presented in Q3/2014; delivery Q4/2014 3rd product (Swiss GT 13) developed and presented in Q3/20
Slide 17: Global Supply Chain Management achievements
Strengthen flexibility Global Supply Chain Management achievements New machines fully outsourced Key modules outsourced One-fifth of large machining components remaining Manufacturing headcount reduction > 30% Eastern European suppliers homologated Substantial procurement cost reduction New procurem
Slide 18: Extension of MultiSwiss line; High-end for high precision
Growth through innovation Extension of MultiSwiss line Presented at AMB Stuttgart 2016 Generated 10% of all machine orders in last quarter 2016 New MultiSwiss advantages* compared with previous model: Cycle time - 27% Tool life + 25% Work piece quality ++ Capability ++ New MultiSwiss model in operat
Slide 19: Mid-range for high precision
Growth through innovation Mid-range for high precision Introduced at 5th Tornos Watch Days 2013 Innovative Swiss-type mid-range product Tailored to high precision applications (focus on micromechanics) Common platform with micro milling 100% developed and manufactured in Switzerland 200 machines del
Slide 20: Customer success story
Customer success story Industrial Strength Body Jewelry (California, USA) Swiss GT in operation at customer site Media & Analysts Conference March 14, 2017 39 Growth through innovation Entry and Mid-range products for global markets Tornos Taiwan Swiss GT 13 (2015) Swiss GT 26 (2014) Swiss GT 32 (20
Slide 21: Industry 4.0-ready TISIS software; Portfolio renewal
Growth through innovation Industry 4.0-ready TISIS software Expert system with user-friendly state-of-the-art Human Machine Interface (HMI) Virtual setup, programming and monitoring Addresses the needs of Industry 4.0 Vision Systems (new) CAM Integrated (new) Media & Analysts Conference March 14, 20
Slide 22: Make service a business; Success of LEAN concept
Make service a business Reliable revenue contribution 2015 2016 Service / Spare Parts Service / 24% Spare Parts 30% Machines Machines 70% 76% Machines Service / Spare Parts Overhauling business growing New service products well accepted Media & Analysts Conference March 14, 2017 43 Enhance operation
Slide 23: Looking ahead: Priorities and outlook for 2017
Looking ahead Priorities and outlook for 2017 Conclude strategic reorientation according to mid-term plan: Capitalize on latest products Push phase-out of old products Fully exploit outsourcing Adapt and simplify organization and structures Keep pace on innovation Elaboration of Strategy 2018-2022 M
Slide 24: Questions & Answers
QUESTIONS & ANSWERS Tornos Holding Ltd. Inquiries Investor and media relations: Bruno Edelmann +41 32 494 42 33 investors@tornos.com / communications@tornos.com For more details on Tornos Group, please refer to www.tornos.com Media & Analysts Conference March 14, 2017 48
Slide 25: Disclaimer
Tornos Holding Ltd. Disclaimer Tornos Holding Ltd. is confirming its best efforts to present accurate and up- to-date information in this document, Tornos Holding Ltd. gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and