Georg Fischer Ag · SIX:GF

Georg Fischer — FY2023 Earnings Presentation

43 slides from Georg Fischer's earnings presentation, Mar 19, 2024

Slide 2: 2023 Financial Year
Zurich, 19 March 2024 2023 Financial Year Andreas Müller, CEO | Mads Joergensen, CFO © GF v3.0
Slide 3: Highlights 2023
GF Corporation Highlights 2023 Color grading Strong performance despite Uponor acquisition lays ground for 2025 Strategy targets increased headwinds future growth ▪ Result driven by the need for ▪ Consolidation of Uponor Corp. (FI) ▪ New EBIT margin range 10-12% sustainable solutions in key and Cory
Slide 4: Strong performance on par with last year’s record level
GF Corporation Strong performance on par with last year’s record level (in CHF) Sales EBITDA margin Dividend proposed 4.0 billion 3.9 billion 3.7% 12.7% 1.30 consolidated excl. Uponor organic growth comparable* CHF per share EBIT margin Free cash flow ROIC 9.1% 9.7% 9.8% 134 million 23.8% consolidat
Slide 5: Going forward: A strong global presence with focus on flow solutions
GF Corporation Going forward: A strong global presence with focus on flow solutions 2023 sales pro forma* / (full-year 2022) 2023 sales pro forma* per region (in %) per division (in CHF million) Water and Flow Rest of world solutions share GF Machining 4% Solutions 64% (5%) 887 Asia 23% Europe (30%)
Slide 6: Leader in corporate sustainability
GF Corporation Leader in corporate sustainability 3x Sales with social or environmental benefits1 as % of total sales CO2e emissions2 Scope 1 and 2, in 1'000 tonnes 80 350 330 70% 70 68% 300 63% 273 60 250 236 231 31% newly appointed 50 200 214 40 managers are women2 150 (Target 2025: 25%) 30 100 20
Slide 7: Key investments in attractive growth markets
GF Corporation Key investments in attractive growth markets Acquisition of Uponor Expansion in Seewis (CH) Expansion at Central Plastics (US) Acquisition of Corys New plant in Shenyang (CN) New plant in Yangzhou (CN) © GF v3.0 7 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Confere
Slide 8: Value creation program well on track – reorganization started
GF Corporation Value creation program well on track – reorganization started Uponor integration at a glance Ongoing reorganization of Flow Solutions to unleash full market potential ▪ New GF Piping Systems with focus 200+ opportunities identified on Industry (IS), Utility (UT) and Infrastructure (IN
Slide 9: GF Piping Systems with robust performance driven by key segments
GF Piping Systems GF Piping Systems with robust performance driven by key segments (in CHF) Sales Business insights ▪ Solid demand in key market segments, such as 2.1 billion 3.0% high-end microelectronics, water reclamation, water treatment and chemical processing organic growth ▪ Challenges in the
Slide 10: Solid development of microelectronics market
GF Piping Systems Solid development of microelectronics market +13%* +1%* ~ Microelectronics Water treatment Gas distribution * Organic growth © GF v3.0 10 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 11: EV battery recycling with global growth opportunities
GF Piping Systems EV battery recycling with global growth opportunities 25% Global supply of EV batteries for recycling is steadily increasing until CAGR 2030 of EU’s annual consumption of cobalt, 15% nickel and lithium to be processed from recycled materials in 2030 185 Investment needs to ensure r
Slide 12: Solutions to manage extreme weather conditions with GF’s Stormwise
GF Piping Systems Solutions to manage extreme weather conditions with GF’s Stormwise +2.7 additional people to live in urban areas by 2050 compared to 2021 billion By underinvestment in water infrastructure will become a challenge 2030 for urban areas Projected investments in water supply Uponor Vau
Slide 13: GF Uponor with an increase in comparable operating profit margin amid subdued markets
GF Uponor GF Uponor with an increase in comparable operating profit margin amid subdued markets (in CHF) Sales* Business insights* ▪ Increasing margin resilience under volatile market 1.2 billion -5.8% conditions ▪ Soft demand with building permits down in key organic growth markets in Europe ▪ Robu
Slide 14: Signs of stabilization in the US and persisting headwinds in Europe
GF Uponor Signs of stabilization in the US and persisting headwinds in Europe Builder confidence Consumer confidence Residential mortgage rates (%) Europe 5 4 3 2 1 0 USA 8 7 6 5 4 3 2 Source: Bloomberg © GF v3.0 14 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 15: Efficient climate control as vanguard of urban planning in the future
GF Uponor Efficient climate control as vanguard of urban planning in the future of EU energy consumption related to ~40% buildings (75% still energy inefficient) up to 30% reduction in energy consumption and CO2e thereof, related to heating, cooling emissions ~80% and hot water Uponor Smatrix Invest
Slide 16: GF Casting Solutions records solid organic growth driven by new lightweight solutions
GF Casting Solutions GF Casting Solutions records solid organic growth driven by new lightweight solutions (in CHF) Sales Business insights ▪ Strong sales outperforming light vehicle market 910 million 11.4% ▪ Accelerated demand for light components for sustainable mobility, particularly in China Bu
Slide 17: GF’s strong position with leading Chinese OEMs drives future growth
GF Casting Solutions GF’s strong position with leading Chinese OEMs drives future growth Light vehicle production and sales outlook in million units +11% +1% 40 +0% +10% +3% +16% 29.1 29.5 30 26.2 2022 15.6 16.0 15.6 18.1 18.2 2023 20 14.2 10 2024 fcst 0 North America Europe China BYD Yangwang U9 EV
Slide 18: Integrated “Big” casting components as key enabler for sustainable mobility
GF Casting Solutions Integrated “Big” casting components as key enabler for sustainable mobility share of Electric Vehicles (EV) 42% expected in China until 2030 Up to welding dots and 72 single components are replaced by 1800 a “Big” casting part reduction in weight realized by GF with -40% HPDC ap
Slide 19: Technology leader in challenging market development
GF Machining Solutions Technology leader in challenging market development (in CHF) Sales Business insights ▪ Order intake above sales level 887 million -1.9% ▪ Robust end markets and ongoing rebound in the aerospace and energy segments organic growth ▪ ICT and consumer goods market suffering especi
Slide 20: Strong recovery in Aerospace – ICT remains on low levels
GF Machining Solutions Strong recovery in Aerospace – ICT remains on low levels +47%* +2%* -22%* Aerospace Medical ICT * Organic growth © GF v3.0 20 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 21: High performance solutions enabling technological evolution in the aerospace and energy industry
GF Machining Solutions High performance solutions enabling technological evolution in the aerospace and energy industry +250% increase in orders on hand for aircrafts YoY at the end of 2023 requires active investments in energy- Net zero efficient technologies for engines and by 2050 fuels maximum c
Slide 22: Consolidated financial statements
Consolidated financial statements Mads Joergensen, CFO © GF v3.0 22 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 23: Order intake
GF Corporation Order intake (CHF million) Organic -3.7% -8.4% 4’227 3’938 2’319 1’954 +3.7% +0.6% 965 912 945 907 2 months (Nov–Dec) 167 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 GF Corporation GF Piping Systems GF Uponor GF Casting Solutions GF Machining Solutions © GF v3.0 23 Zurich, 19 Ma
Slide 24: Sales
GF Corporation Sales (CHF million) Organic +3.7% +3.0% 3’998 4’026 2’160 2’066 +11.4% -1.9% 892 910 948 887 2 months (Nov–Dec) 164 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 GF Corporation GF Piping Systems GF Uponor GF Casting Solutions GF Machining Solutions © GF v3.0 24 Zurich, 19 March 20
Slide 25: Sales bridge
GF Corporation Sales bridge (CHF million) Organic growth: +3.7% +146 -263 H1 +7.5% / H2 0.0% +164 4’026 3’998 -20 3’861 GF Linamar -34 Corys +12 VAM +2 2022 Organic Currencies Acq./Divest. GF 2023 Uponor GF 2023 excl. Uponor incl. Uponor © GF v3.0 25 Zurich, 19 March 2024 | 2023 Financial Year | Ana
Slide 26: Income statement
GF Corporation Income statement (CHF million) 2023 2022 % as reported comparable1 Sales 4’026 3’998 +0.7 Other operating income 47 37 Income 4’073 4’035 +0.9 Cost of materials and change in inventory -1’739 -1’795 -3.1 Operating expenses -737 -680 +8.3 Personnel expenses -1’111 -1’053 +5.4 EBITDA 4
Slide 27: EBIT margin
GF Corporation EBIT margin (in %) Strategic objectives 2025 13 – 15% 13.5 13.3 10 – 12% 9.8 9.8 9 – 11% 9.7 8 – 10% 2 months (Nov–Dec) 6.9 7.0 7.0 6.8 6.2 excl. Uponor comparable comparable 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 GF Corporation GF Piping Systems GF Uponor GF Casting Soluti
Slide 28: EBITDA bridge
GF Corporation EBITDA bridge (CHF million) x.x% EBITDA margin 12.7% 12.8% 12.1% +58 -67 507 -6 492 15 -21 486 2022 Organic Currencies Others incl. GF 2023 Uponor PPA GF 2023 acq./divest. excl. Uponor 2 months effects incl. Uponor © GF v3.0 28 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and
Slide 29: Currency effects on sales and EBIT in 2023
GF Corporation Currency effects on sales and EBIT in 2023 (CHF million) Per division Sales EBIT Per currency Rates Sales EBIT 2023 2022 ∆% GF Piping Systems -171 -49 EUR 0.972 1.005 -3.3% -40 -12 GF Casting Solutions -46 -8 USD 0.899 0.955 -5.9% -25 -32 GF Machining Solutions -46 -7 CNY 0.127 0.142
Slide 30: Income statement
GF Corporation Income statement (CHF million) +12 -63 365 -71 242 EBIT Financial Financial expenses Income tax Net profit 2023 income and other expenses 2023 © GF v3.0 30 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 31: Uponor purchase price allocation (PPA) – adjustments and impacts
GF Corporation Uponor purchase price allocation (PPA) – adjustments and impacts (CHF million) Balance sheet Income statement PPA adjustments 2023 2024 2025 Position 6.11.2023 (Nov-Dec) (forecast) (forecast) Inventories 35 -21 -13 – Impact on EBITDA -21 -13 – Land 6 – – – Buildings 46 -1 -4 -4 Machin
Slide 32: Balance sheet: assets
GF Corporation Balance sheet: assets (CHF million) GF Uponor Opening BS Changes GF excl. 31.12.2023 Transaction Nov 2023 Nov-Dec 23 Uponor 31.12.2022 Cash & equiv. & marketable sec. 566 -340 74 -4 836 894 Trade accounts receivable 814 226 -77 666 660 Inventories 979 212 -33 800 833 Other current ass
Slide 33: Balance sheet: liabilities and equity
GF Corporation Balance sheet: liabilities and equity (CHF million) GF Uponor Opening BS Changes GF excl. 31.12.2023 Transaction Nov 2023 Nov-Dec 23 Uponor 31.12.2022 Current liabilities 1’464 59 329 -60 1’137 1’202 Non-current liabilities 2’632 1’621 197 -14 828 840 Liabilities 4’097 1’680 526 -74 1
Slide 34: Free cash flow
GF Corporation Free cash flow (CHF million) 2023 2022 EBITDA 486 507 Changes in net working capital 18 -176 Income taxes / interest paid -103 -90 Other changes -63 85 Cash flow from operating activities 338 326 Additions to property, plant, and equipment -196 -160 Cash flow from acquisitions / dives
Slide 35: Key figures at a glance
GF Corporation Key figures at a glance 2023 GF excl. Uponor 2022 Net debt (+) / Net cash (-) in CHF million 1’879 -97 -159 Net debt / EBITDA (multiple) 2.961 -0.2 -0.3 Equity ratio in % 0.5 46.2 44.8 ROIC in % GF Corporation 19.8 23.8 23.4 GF Piping Systems 31.1 35.6 GF Casting Solutions 17.6 11.2 G
Slide 36: Board proposes unchanged dividend of CHF 1.30
GF Corporation Board proposes unchanged dividend of CHF 1.30 2023 2022 Net profit shareholders GF in CHF million 235 276 Earnings per share in CHF 2.87 3.37 Proposed / paid dividend (out of retained earnings) in CHF million 107 107 Proposed / paid dividend per share in CHF 1.30 1.30 Pay-out ratio in
Slide 37: Update on synergies from Uponor acquisition
Update on synergies from Uponor acquisition © GF v3.0 37 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 38: Synergies of EUR 40-50 million p.a. at full run rate in 2027 confirmed
GF Corporation Synergies of EUR 40-50 million p.a. at full run rate in 2027 confirmed Expected breakdown of synergies Expected annual run rate of synergies until 2027 (in EUR million) 40-50 Commercial 45-55% 25-30 10-15 Operations 25-35% 5-7 2024 2025 2026 2027 Org. streamlining 10-20% Cost related
Slide 39: Outlook 2024
Outlook 2024 Andreas Müller, CEO © GF v3.0 39 Zurich, 19 March 2024 | 2023 Financial Year | Analyst and Media Conference
Slide 40: Strategy targets 2025 lifted following the acquisition of Uponor
GF Corporation Strategy targets 2025 lifted following the acquisition of Uponor (in CHF) CHF 4.4 – 5.0 billion* CHF 5.0 – 5.5 billion* Sales Sales *including acquisitions *including acquisitions / Uponor 13 – 15% EBITDA margin 9 – 11% 10 – 12% EBIT margin EBIT margin 20 – 22% 20 – 24% Return on Retu
Slide 41: Outlook 2024: GF is well positioned to benefit from global long-term trends
GF Corporation Outlook 2024: GF is well positioned to benefit from global long-term trends Despite subdued economic conditions, gradual improvement expected during the year. Energy efficiency in buildings Urbanization & immigration Digitalization & AI Further organic growth for the full year 2024. P
Slide 43: 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

Georg Fischer — FY2023 Earnings Presentation on 6ix

Georg Fischer — FY2023 Earnings Presentation

Slide 1: Welcome

Slide 2: 2023 Financial Year

Slide 3: Highlights 2023

Slide 4: Strong performance on par with last year’s record level

Slide 5: Going forward: A strong global presence with focus on flow solutions

Slide 6: Leader in corporate sustainability

Slide 7: Key investments in attractive growth markets

Slide 8: Value creation program well on track – reorganization started

Slide 9: GF Piping Systems with robust performance driven by key segments

Slide 10: Solid development of microelectronics market

Slide 11: EV battery recycling with global growth opportunities

Slide 12: Solutions to manage extreme weather conditions with GF’s Stormwise

Slide 13: GF Uponor with an increase in comparable operating profit margin amid subdued markets

Slide 14: Signs of stabilization in the US and persisting headwinds in Europe

Slide 15: Efficient climate control as vanguard of urban planning in the future

Slide 16: GF Casting Solutions records solid organic growth driven by new lightweight solutions

Slide 17: GF’s strong position with leading Chinese OEMs drives future growth

Slide 18: Integrated “Big” casting components as key enabler for sustainable mobility

Slide 19: Technology leader in challenging market development

Slide 20: Strong recovery in Aerospace – ICT remains on low levels

Slide 21: High performance solutions enabling technological evolution in the aerospace and energy industry

Slide 22: Consolidated financial statements

Slide 23: Order intake

Slide 24: Sales

Slide 25: Sales bridge

Slide 26: Income statement

Slide 27: EBIT margin

Slide 28: EBITDA bridge

Slide 29: Currency effects on sales and EBIT in 2023

Slide 30: Income statement

Slide 31: Uponor purchase price allocation (PPA) – adjustments and impacts

Slide 32: Balance sheet: assets

Slide 33: Balance sheet: liabilities and equity

Slide 34: Free cash flow

Slide 35: Key figures at a glance

Slide 36: Board proposes unchanged dividend of CHF 1.30

Slide 37: Update on synergies from Uponor acquisition

Slide 38: Synergies of EUR 40-50 million p.a. at full run rate in 2027 confirmed

Slide 39: Outlook 2024

Slide 40: Strategy targets 2025 lifted following the acquisition of Uponor

Slide 41: Outlook 2024: GF is well positioned to benefit from global long-term trends

Slide 42: Q&A

Slide 43: Disclaimer