Georg Fischer AG · SIX:GF

Georg Fischer — FY2013 Earnings Presentation

32 slides from Georg Fischer's earnings presentation, Feb 25, 2014

  1. Slide 1: Annual Media Conference 2013 financial year

    Georg Fischer Annual Media Conference 2013 financial year Yves Serra / 25.02.2014

  2. Slide 2: A substantial rise in performance

    GF Corporation A substantial rise in performance  Top line at CHF 3 766 million, up 2% like-for-like  Operating result increased 13% to CHF 251 million  Free cash flow before acquisitions boosted 76% to CHF 174 million  Key strategy implementation steps done  Proposed dividend increase to CHF 1

  3. Slide 3: All three divisions with profitable growth

    GF Corporation All three divisions with profitable growth EBIT (in million CHF) Sales growth (like-for-like) 3% 3% 251 222 2% 141 135 1% 70 53 51 45 2013 2012 3 Annual Media Conference | 2013 financial year

  4. Slide 4: All three divisions clearly generate value

    GF Corporation All three divisions clearly generate value ROIC 18.7% 16.7% 16.1% 15.2% 8.6% WACC 4 Annual Media Conference | 2013 financial year

  5. Slide 5: Steady progress towards a better geographical balance

    GF Corporation Steady progress towards a better geographical balance RoW Americas RoW Americas RoW Americas Asia 3% Asia 3% Asia 4% 14% 10% 13% 18% 20% 21% 69% 64% 61% Europe Europe Europe 2011 2012 2013 RoW = Rest of world 5 Annual Media Conference | 2013 financial year

  6. Slide 6: Portfolio evolution in line with strategy

    GF Corporation Portfolio evolution in line with strategy 46% 42% 40% 37% 35% 32% 22% 23% 23% 2011 2012 2013 2011 2012 2013 2011 2012 2013 GF Piping Systems GF Automotive GF Machining Solutions 6 Annual Media Conference | 2013 financial year

  7. Slide 7: A strong 2nd half-year boosts results

    GF Piping Systems A strong 2nd half-year boosts results  Sales rose 8% to CHF 1.4 billion (3% organically)  Industrial applications picked up  Building technology grew in Europe and Asia AIDA cruise liner at Mitsubishi shipyard  Utility sales overall stable  EBIT up 4% to CHF 141 million 7 Annu

  8. Slide 8: Industrial applications picked up in 2nd half-year

    GF Piping Systems Industrial applications picked up in 2nd half-year 8 Annual Media Conference | 2013 financial year

  9. Slide 9: Acquisition in Turkey enhances presence in growing markets

    GF Piping Systems Acquisition in Turkey enhances presence in growing markets  Sales of CHF 100 million  650 employees  Plants in Cerkezköy (West) and Sanliurfa (East)  Cross-selling in full swing 9 Annual Media Conference | 2013 financial year

  10. Slide 10: Productivity and market share on the rise

    GF Automotive Productivity and market share on the rise  Sales organically up 1% to CHF 1 498 million  Car market down in Europe but strong in China  Market share in truck business further increased CHF 400 million order for DAF  EBIT up 32% to CHF 70 million 10 Annual Media Conference | 2013 fi

  11. Slide 11: Portfolio streamlining completed

    GF Automotive Portfolio streamlining completed Aluminum + Magnesium Iron castings pressure die-castings Substitution of forged steel brackets Swingarm in Magnesium Weight reduction: 15% Weight Reduction: 35% 11 Annual Media Conference | 2013 financial year

  12. Slide 12: Profitable growth amid difficult market conditions

    GF Machining Solutions Profitable growth amid difficult market conditions  Sales up 3% to CHF 867 million  Customer proximity underpins growth  US and European markets show recovery trend  China subdued on tighter financing for SMEs  EBIT grew 13% to CHF 51 million 12 Annual Media Conference |

  13. Slide 13: Customer proximity underpins growth

    GF Machining Solutions Customer proximity underpins growth 13 Annual Media Conference | 2013 financial year

  14. Slide 14: GF AgieCharmilles renamed GF Machining Solutions

    GF Machining Solutions GF AgieCharmilles renamed GF Machining Solutions EDM Laser Texturing Milling Automation 14 Annual Media Conference | 2013 financial year

  15. Slide 15: Consolidated financial statements and financing

    Roland Abt, CFO Consolidated financial statements and financing 15 Annual Media Conference | 2013 financial year

  16. Slide 16: Changes in the structure

    GF Corporation Changes in the structure Change from IFRS to Swiss GAAP FER  Minor effects on P/L-statement, EBIT 2012 + CHF 1 million  Significant impact on balance sheet  Goodwill CHF -194 million  Provisions for pension CHF 60 million  Equity CHF -262 million Changes in the scope of consolida

  17. Slide 17: Income statement

    GF Corporation Income statement million CHF 2013 2012  Sales 3 766 3 720 1% Gross value added 1 294 1 266 2% Personnel expenses -914 -915 0% EBITDA 380 351 8% Depreciation, amortization -129 -129 0% EBIT 251 222 13 % Financial result -45 -35 29 % Share of results of associates 0 1 - Extraordinary r

  18. Slide 18: Sales by division

    GF Corporation Sales by division million CHF Growth ∆ % 1) 2013 2012 in CHF in LC GF Piping Systems 1 402 1 299 7.9 % 2.7 % GF Automotive 1 498 1 579 -5.1 % 0.5 % GF Machining Solutions 867 842 3.0 % 3.2 % Corporation 3 766 3 720 1.2 % 1.9 % 1) Adjusted for changes in scope of consolidation and stat

  19. Slide 19: EBIT and ROS by division

    GF Corporation EBIT and ROS by division million CHF ROS % 2013 2012 2013 2012 GF Piping Systems 141 135 10.1 % 10.4 % GF Automotive 70 53 4.7 % 3.4 % GF Machining Solutions 51 45 5.9 % 5.3 % Corporation 251 222 6.7 % 6.0 % 19 Annual Media Conference | 2013 financial year

  20. Slide 20: Currency impact on Sales / EBIT

    GF Corporation Currency impact on Sales / EBIT million CHF Sales EBIT 2013 3 766 251 EUR +45 +2 USD -4 -6 Others -16 -5 Total currency impact +25 -9 GF Piping Systems -2 -5 GF Automotive +29 +1 GF Machining Solutions -2 -5 20 Annual Media Conference | 2013 financial year

  21. Slide 21: Free cash flow

    GF Corporation Free cash flow million CHF 2013 2012 EBITDA 380 351 Changes in net working capital 15 -57 Income taxes / interest paid -74 -66 Other changes -12 2 Cash flow from operating activities 309 230 Additions to property, plant and equipment -130 -132 Cash flow from acquisitions / divestiture

  22. Slide 22: Net debt and Free cash flow

    GF Corporation Net debt and Free cash flow million CHF Net debt Free cash flow Free cash flow excl. acquisitions Net debt / EBITDA 600 19.7x 1.0x 0.8x 1.0x 0.9x 500 472 400 352 321 334 294 300 200 174 150 104 103 99 150 100 94 103 108 19 0 2009 2010 2011 2012 2013 22 Annual Media Conference | 2013 f

  23. Slide 23: Key figures

    GF Corporation Key figures million CHF 2013 2012  Sales in % 1.2 2.3  Sales in % (organic growth / LC) 1.9 -0.6 Return on Sales (EBIT margin) in % 6.7 6.0 Net profit in % of sales 3.9 3.7 Cash flow from operating activities in % of sales 8.2 6.2 ROIC in % 16.7 15.7 Return on Equity in % 14.8 14.2

  24. Slide 24: Outlook

    Yves Serra, CEO Outlook 24 Annual Media Conference | 2013 financial year

  25. Slide 25: Outlook 2014

    GF Corporation Outlook 2014  Upwards trend in demand but not across the board  Strong order book at GF Machining Solutions and specially at GF Automotive  Portfolio GF Automotive streamlined to iron and aluminum pressure die-casting  GF Piping Systems sales to catch up GF Automotive’s in 2014 To

  26. Slide 26: 2015 profitability objectives re-confirmed, adapted to Swiss GAAP FER

    GF Corporation 2015 profitability objectives re- confirmed, adapted to Swiss GAAP FER GF Machining GF Piping Systems GF Automotive Solutions GF ROS 11~13% 5~7% 6~8% 8~9% ROIC 17~20% 15~18% 15~18% 16~20%  Increase GF Piping Systems share of sales to 40~45%  Optimize GF Automotive productivity in Eu

  27. Slide 27: Investments aligned with strategy

    Investments aligned with strategy 27 Annual Media Conference | 2013 financial year

  28. Slide 28: Increase GF Piping Systems share of sales to 40~45%

    Increase GF Piping Systems share of sales to 40~45% Invest in very large fittings 22nd and 23rd plant in China for water transport (for water pipes) Schaffhausen (CHF 15 million) Zhuozhou, Xian, China (CHF 20 million) 28 Annual Media Conference | 2013 financial year

  29. Slide 29: Optimize GF Automotive productivity in Europe / Expand in China

    Optimize GF Automotive productivity in Europe / Expand in China Automate to maintain leadership 50% capacity increase in truck components to cope with demand Singen, DE (CHF 65 million) Kunshan, CN (CHF 30 million) 29 Annual Media Conference | 2013 financial year

  30. Slide 30: Focus GF Machining Solutions on less cyclical segments

    Focus GF Machining Solutions on less cyclical segments (CHF 50 million R&D outlay per annum) New wire-cutting EDM machine A complete solution to replace broaching (in aeronautics) for new dental braces 30 Annual Media Conference | 2013 financial year

  31. Slide 31: Thank you

    Thank you

  32. Slide 32: Disclaimer

    Disclaimer This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment. Neither it nor anything it contains shall form the basis of any contract whatsoever. Opinions expressed herein reflect the

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