Sfs Group Ag · SIX:SFSN
Sfs — Investor Day (September 2020)
56 slides from Sfs's investor day presentation, Sep 9, 2020
Slide 1: SFS Investor Day 2020
SFS Investor Day 2020 Heerbrugg, 9 September 2020
Slide 2: Agenda
Agenda 1. SFS DNA and business update (9:00 am) Jens Breu 2. Financial update Jens Breu/Rolf Frei Financial update Q&A 3. Divisional focus (9:45 am) Automotive division Alfred Schneider Electronics division George Poh Construction division Arthur Blank Medical division Jens Breu Q&A 4. Plant tour/bu
Slide 3: SFS DNA
SFS DNA SFS Investor Day 2020 | 9 September 2020 3
Slide 4: Mission critical products for selected niche applications
Mission critical products for selected niche applications We are by your side – 24/7 SFS Investor Day 2020 | 9 September 2020 4
Slide 5: Mission critical products for selected niche applications: medtech market
Mission critical products for selected niche applications We are by your side – 24/7 Drug Delivery Medtech market snapshot on SFS position & Fluid Mgmt. CAGR 7.6% • Well positioned within 6 of 8 global medtech In-Vitro Diagnostics Other Devices markets CAGR: 8.6% CAGR: 5.3% • Broad customer base whe
Slide 6: Key drivers of outsourcing decisions
Mission critical products for selected niche applications We are by your side – 24/7 Key drivers of outsourcing decisions • Access to scalable capacity to ensure reliable Scalability production in support of the market’s demand Cost savings • Cost containment via automation and pursuit of economies
Slide 7: Relevance of Additive Manufacturing (AM)
Relevance of Additive Manufacturing (AM) Potential in product development and operations Potential Current limitations • Rapid prototyping • Limited material availability • No tooling costs • Output rate in serial production • Realization of difficult geometries • Material characteristics (surface,
Slide 8: SFS Value Engineering – Reference Case D&L
SFS Value Engineering – Reference Case D&L Creating sustainable benefit Large D&L product offering in tools Efficient supply processes and SFS logistic systems (eLogistics, and fasteners (>150,000 items) global footprint offer stable supply eShop, toolLog) created for tailor allows customer to sourc
Slide 9: SFS Value Engineering – Reference Case Dental
SFS Value Engineering – Reference Case Dental Creating sustainable benefit In depth plastics injection molding Labelling, packaging and storage Leverage Industry 4.0 opportunities know-how allowed to fulfill custom- directly at SFS' site and shipments of digitization to constantly improve er's mater
Slide 10: Business update
Business update SFS Investor Day 2020 | 9 September 2020 10
Slide 11: Key takeaways updated
Key takeaways updated Priorities of 1H 2020 driven by COVID-19 pandemic • Priorities of 1H 2020 driven by COVID-19 pandemic • Turning attention to employee safety • Balancing manufacturing capacity • Cost management while maintaining innovation activities • 1H 2020 with an organic decline of –10.4%
Slide 12: Headlines Engineered Components segment updated
Headlines Engineered Components segment updated Automotive stimulated | Industrial remains weak • COVID-19 with significant impact on demand: Key figures Engineered Components • 1H 2020 organic sales –13.5% y-o-y 2020 2020 2019 • Electronics and Medical with organic growth in CHF million (unaudited)
Slide 13: Headlines Fastening Systems segment updated
Headlines Fastening Systems segment updated Continued investments in expanding market reach • Less pronounced impact of COVID-19 on Key figures Fastening Systems construction market and scope effects limit- 2020 2020 2019 ing decline of segment sales to –10.0% y-o-y in CHF million (unaudited) Jul/Au
Slide 14: Headlines Distribution & Logistics segment updated
Headlines Distribution & Logistics segment updated Positive results despite difficult environment • Organic sales of CHF 159.6 m representing a Key figures Distribution & Logistics decline of –2.6% y-o-y 2020 2020 2019 • Multi-channel approach particularly beneficial in CHF million (unaudited) Jul/A
Slide 15: Financial update
Financial update SFS Investor Day 2020 | 9 September 2020 15
Slide 16: Historical background
Historical background 1H20 EBITDA stronger than during crisis in 2009 Sales in CHF million EBITDA margin adjusted 20.7% 19.1% 19.7% 19.5% 2’000 18.9% 18.5% 19.2% 18.6% 20% 17.3% 17.1% 15.5% 1781 1739 1’600 16% 1633 11.7% 1437 1383 1376 1’200 12% 1331 1193 1122 1093 1068 800 8% 400 4% 0 0% 2009 2010
Slide 17: KPI summary 1H 2020
KPI summary 1H 2020 Solid performance in challenging times In CHF million 1H 2020 % 1H 2019 % yoy Sales 773.7 867.8 –10.8% EBITDA margin 120.3 15.5% 152.6 17.6% –21.2% EBIT adjusted margin 71.0 9.2% 109.2 12.6% –34.9% Net income margin 53.9 7.0% 88.6 10.2% –39.1% Equity ratio 1,169.0 72.7% 1,139.2 7
Slide 18: Organic sales development end markets
Organic sales development end markets July & August better than expected Organic growth in % yoy 10% Weakening global economy COVID-19 5% 7.5% 6.7% 4.1% 0.9% 0% 1.4% 0.7% -1.0% -1.7% -6.1% Jul/Aug -5% -3.1% -10% -15% -6.1% -20% -21.0% 2018 2019 2020 -25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 J / A SFS Inves
Slide 19: Organic sales development segments
Organic sales development segments Strong impact in Q2 | Improvement in July & August Organic growth in % yoy SFSG EC FS D&L 5% 0.9% 2.1% 0.4% 0% -1.3% -5% -2.7% -2.4% -5.6% -6.1% -10% -9.1% -15% -17.1% -20% -21.0% -25% -30% -29.0% -35% Q1.2020 Q2.2020 Jul/Aug SFS Investor Day 2020 | 9 September 202
Slide 20: Organic sales development
Organic sales development Q4 with limited visibility | We stay cautious Organic growth in % yoy 10% Weakening global economy COVID-19 5% 7.5% 6.7% 4.1% 0.9% 0% 1.4% 0.7% • Q4 uncertain -1.0% -1.7% due to low visibility -5% -3.1% -10% “shortened” V-curve upside potential -15% possible -20% -21.0%
Slide 21: Operating profitability
Operating profitability Q4 with limited visibility | We stay cautious EBIT adjusted in CHF million EBIT adjusted margin in % 250 20% 200 14.4% 16% 14.2% 14.3% 14.2% 13.6% 12.6% 150 Upside potential 12% 9.2% Guidance 129.9 127.1 122.4 116.0 100 8% 110.9 109.2 71.0 50 4% 0 0% 1H2017 2H2017 1H2018 2H20
Slide 22: Guidance 2H2020
Guidance 2H2020 Q4 with limited visibility | We stay cautious 2020 G 1H2020 A 2H2020 G (March*) (July**) Gross sales CHF million 773.7 > 773.7 Gross sales growth 0–2% –10.8% Organic –1.5%–0.5% –10.4% Scope 1.5% 3.4% FX n/a –3.8% EBIT adjusted 12–14% 9.2% ~ 9.2% * In March we were not in a position t
Slide 23: Mid-Term guidance
Mid-Term guidance Maintained potential to outgrow global GDP Mid-term guidance Mid-term guidance (dated 2014, IPO) (dated 2020) Gross sales 5–7% 3–6% (in local currency, incl. bolt-on M&A) EBIT margin adjusted 15–17% 13–16% Remarks for update: • Global GDP growth decelerated • Mix effects (share FS
Slide 24: Q&A
Q&A SFS Investor Day 2020 | 9 September 2020 24
Slide 25: Divisional focus
Divisional focus SFS Investor Day 2020 | 9 September 2020 25
Slide 26: Automotive division
Automotive division Alfred Schneider, Head of Automotive division SFS Investor Day 2020 | 9 September 2020 26
Slide 27: Positioning and market trends
Positioning and market trends Positioned to serve above average growing segments Position within automotive market Key trends in industry • Supplying the automotive industry and its supply chain with precision components • Focus on areas of • Active and passive safety • Autonomous driving Global lig
Slide 28: Growth drivers Automotive division
Growth drivers Automotive division Growth largely independent from specific drive concept Combustion engine Combustion engine markets (90%) & markets EV (10%) by 2025 ~15% India ~50% Europe ~30% Americas ~5% China/RoW mid-term not at risk mid-term at limited risk ~45% ~55% Electric 2019 Interior
Slide 29: Car with conventional hydraulic brake system
Car with conventional hydraulic brake system SFS value content in ABS/ESC only Anti blocking system (ABS)/ Electronic stability control (ESC) System components ABS Parts ABS/ESC 1 Brake booster 2 Vacuum pump 3 ABS/ESC 4 Brake caliper 5 Brake caliper with park brake 6 Park brake lever SFS Investor Da
Slide 30: Car with modern 'brake by wire' brake system
Car with modern ’brake by wire’ brake system Potential SFS value content up to ~5x higher ABS/ESC ABS/ESC ABS Parts Electric Parking Brake (EPB) EPB Module EPB Actuators Integrated Brake System Global light vehicle production forecast • 2020: 70m vehicles • 2025: 95m vehicles Power Power Source: IHS
Slide 31: Expansion of production capacities at Heerbrugg
Expansion of production capacities at Heerbrugg Realization of new projects for braking applications • Continued new project wins from key customers in the area of electric braking applications require expansion of production capacity in Heerbrugg • Planned investment into first step of build-out es
Slide 32: Cameras/sensors for autonomous driving
Cameras/sensors for autonomous driving Significant growth potential for the years to come Surround view camera (4x/car) Ultrasonic parking Market penetration: <5% sensor (8–12x/car) Market penetration: <30% Camera housings Membrane pots Front camera (1x/car) Radar (1x/car) Market penetration: <10% M
Slide 33: Automotive division priorities
Automotive division priorities Key initiatives to grow top and bottom line Capacity Leverage on Leader in BSD Global Employees management innovations technology platform Match production Maintain focus Continue with Foster global Leverage global capacity and on identified preventive meas- leading ma
Slide 34: Electronics division
Electronics division George Poh, Head of Electronics division SFS Investor Day 2020 | 9 September 2020 34
Slide 35: Positioning and market trends
Positioning and market trends Positioned to serve above average growing segments Position within electronics market Key trends in industry • Supplying the electronics industry based on 7 core technologies and with 8 core products Mobile Lifestyle device HDD • Focus on end market segments Electronics
Slide 36: New Nantong facility
New Nantong facility Platform to expand SFS' business in Asia • Located one hour north of Shanghai, second Waste Water Plant largest site (77,000 m2) of SFS after Heerbrugg Surface treatment Stamping • All SFS core technologies combined under one roof • License for comprehensive in-house plating Col
Slide 37: Multilevel customer penetration
Multilevel customer penetration Growth across product ecosystem and technologies AR/VR Wireless Charger Wireless Earbuds/ Headphones Power Adaptor Increase Product penetration Smart Speaker application engagement Smart Watch Accessories Increase value TV Set Top Box content Tablet through cross- Not
Slide 38: Hard Disk Drives (Malaysia Plant)
Hard Disk Drives (Malaysia Plant) Freed-up capacity leveraged for other growth projects • Growth in High Capacity Enterprise Drives (Near Line, “NL”) applied in data centers and by cloud service providers • > 30% higher SFS value content in NL HDD than other applications • Freed-up capacity used for
Slide 39: Electronics division priorities
Electronics division priorities Key initiatives to grow top and bottom line Customer Nantong HDD Employees ecosystem platform replacement penetration Support other Human capital Increase share of Leverage SFS divisions to development at all wallet in lifestyle Malaysia plant for leverage Nantong lev
Slide 40: Construction division
Construction division Arthur Blank, Head of Construction division SFS Investor Day 2020 | 9 September 2020 40
Slide 41: Construction division in a nutshell
Construction division in a nutshell Clear orientation in a fragmented market Position within construction market Peculiarities of business • “The building envelope specialist” • No dependence on individual large customers • Supplying fastening technology to the building • Regional rules, norms and h
Slide 42: Top key drivers for change and innovation
Top 3 key drivers for change and innovation More green, efficient and safe = market growth Produc- Health Energy and tivity Safety Efficient building envelope New methods drive efficiency Safety at height • Energy saving • Modular building (off-site) • Avoid falling of buildings • Sustainability • B
Slide 43: Value generation at high quality façade
Value generation at high quality façade Increase value take per square meter Fasteners Services Rainscreen façade Example: 2,000 m² rainscreen façade • In the past “only” fasteners Subframes • Today painted fasteners and subframes SFS Investor Day 2020 | 9 September 2020 43
Slide 44: Value generation with safety systems
Value generation with safety systems Broad, focused product portfolio for building envelope • Received order for fastenings to the building envelope • Additional business with the same contractors for roof fall protection systems • 2,200 support units (customer-specific, SFS made) • 18 km stainless
Slide 45: Value generation at installation process
Value generation at installation process Innovation to increase installation process efficiency Innovative and patented fastener for Efficient installation process with in- Technical values, BIM data and the invisible fastening of façade house developed setting tool from sales via eShop panels. Comp
Slide 46: Construction division priorities
Construction division priorities Key initiatives to grow top and bottom line eCommerce Employees Supply chain Innovation Further Human capital Adapt supply Continue to expansion of development and chain to optimize develop value eCommerce ensuring employee product availability adding solutions activ
Slide 47: Medical division
Medical division Jens Breu, Head of Medical division SFS Investor Day 2020 | 9 September 2020 47
Slide 48: Positioning and market trends
Positioning and market trends Focus on high-growth market segments Position within medical market Key trends in industry • End-to-end contract manufacturer of components and complete medical devices for OEM customers Outsourc- Supplier Vertical ing through consoli- • Focus on applications areas inte
Slide 49: Positioning of Tegra Medical
Positioning of Tegra Medical Vertically integrated, true end-to-end solutions provider Design for Pilot Manufacture and Production Assembly Assembly Cost-effective, Low-volume Full device scalable refinement manufacturing under assembly of product designs tight deadlines Full Scale Packaging Prototy
Slide 50: Selected products and applications
Selected products and applications “Where medical devices come to life.” Catheterization suturing device Pedicle screws and holder Meniscus suture anchoring device Bone marrow device Spinal retractor SFS Investor Day 2020 | 9 September 2020 50
Slide 51: Global sales & manufacturing platform in development
Global sales & manufacturing platform in development Local presences and capabilities to serve global OEMs * GTC = Genesis Technology Center * * * * * Cold forming Precision Precision Laser Grinding EDM Injection Assembly Clean room & Machining Molding sterilization SFS Investor Day 2020 | 9 Septemb
Slide 52: Medical priorities
Medical priorities Key initiatives to grow top and bottom line Globalization Employees Organization Branding Increase engage- Continue with Develop global Use Tegra ment and partici- preventive meas- SFS medical Medical brand for pation in European ures to protect organization to global activities a
Slide 53: Divisional focus Q&A
Divisional focus Q&A SFS Investor Day 2020 | 9 September 2020 53
Slide 54: Thank you for your attention
Thank you for your attention SFS Investor Day 2020 | 9 September 2020 54
Slide 55: SFS Investor Day 2020 | 9 September 2020
SFS Investor Day 2020 | 9 September 2020 55
Slide 56: Disclaimer
Disclaimer This presentation includes forward looking statements. These statements reflect the SFS Group's current assessment of market conditions and future events. The statements are therefore subject to risks, uncertainties and assumptions. Unforeseen events may lead to deviations of the actual r