Metall Zug Ag Class B · SIX:METN
Metall Zug Ag Class B — FY2019 Earnings Presentation
54 slides from Metall Zug Ag Class B's earnings presentation, Mar 19, 2020
Slide 1: Welcome to the analysts' conference
Welcome to the analysts’ conference, Zug, March 19, 2020 Martin Wipfli, Chairman of the Board of Directors Daniel Keist, CFO Investor Presentation | March 19, 2020 1
Slide 2: Content
Metall Zug Group Content 1. Group Strategy and New Governance 2. Group Financial Report 2019 3. Business Units ➢ Household Appliances ➢ Infection Control ➢ Life Science Solutions ➢ Wire Processing ➢ Medical Devices ➢ Technologycluster & Infrastructure 4. Information for Investors Investor Presentati
Slide 3: Group Strategy and New Governance
Group Strategy and New Governance Investor Presentation | March 19, 2020
Slide 4: An adapted strategy for the Group
Metall Zug Group An adapted strategy for the Group Metall Zug AG intends to confine itself in the long term to the role of strategic anchor shareholder with regard to certain of its investments. This transformation started in 2019. Spin-off of V-ZUG planned in Q2 2020. − Increase strategic flexibili
Slide 5: A short look back
Metall Zug Group A short look back Before 2008 2009 2010 2011 2012 2013 2014 2015 2018 2019 2020 Major Acquisitions 3'500 3'000 2'500 2'000 1'500 Spin-offs 1'000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Investor Presentation | March 19
Slide 6: Spinning off and listing of V-ZUG
Metall Zug Group Spinning off and listing of V-ZUG Transaction Shareholders − Set up of V-ZUG-Holding AG (as of November 28, 2019) 30% V-ZUG Holding AG Metall Zug AG − 100% owned by Metall Zug AG − Share capital: CHF 1’215’000 − 4.5 million shares with a nominal value of CHF 0.27 per share V-ZUG AG
Slide 7: Spinning-off and listing of V-ZUG
Metall Zug Group Spinning-off and listing of V-ZUG Indicative schedule of the transaction April 24, 2020 Annual general meeting of Metall Zug AG April 30, 2020 Payment of cash dividend April 28, 2020 First trading day Metall Zug shares ex cash dividend June 24, 2020 Record date for the allocation of
Slide 8: Spinning off and listing of V-ZUG
Metall Zug Group Spinning off and listing of V-ZUG Why now? – Sharpened corporate governance with comprehensive allocation of competencies and responsibilities to the V-ZUG BoD and executive management shall – boost growth of V-ZUG – increase profitability to above average industry level (as prior t
Slide 9: Metall Zug after the planned spin-off of V-ZUG
Metall Zug Group Metall Zug after the planned spin-off of V-ZUG Group of industrial companies in two main market segments: Infection Control Med-Tech (67%) Medical Devices 33% 28% Wire Processing (33%) Life Science Solutions 6% Wire Processing Technologycluster & Infrastructure 33% (Net Sales 2019)
Slide 10: Portrait V-ZUG after the planned spin-off
Metall Zug Group Portrait V-ZUG after the planned spin-off V-ZUG as a pure play → High quality household appliances – Market leader in Switzerland based on innovation, quality and service – Double digit growth in international markets with Swiss made premium products – Gross margin slightly improved
Slide 11: Metall Zug: A solid investment with potential
Metall Zug Group Metall Zug: A solid investment with potential − All Business Units are well positioned in attractive markets with growth potential based on competitive product portfolios, strong customer relationships and opportunities related to digital business and processes – Earnings growth dri
Slide 12: Group Financial Report 2019
Group Financial Report 2019 Investor Presentation | March 19, 2020
Slide 13: Diversity and Focus
Metall Zug Group Diversity and Focus FY 2019: Gross Sales CHF 1.2 billion; EBIT CHF 38.8 million (adjusted: CHF 51.9 million); Net income CHF 29.2 million (adjusted: 41.9 million) Household Infection Life Science Medical Wire Appliances Control Solutions Devices Processing Technologycluster & Infras
Slide 14: At a Glance
Group financial report At a Glance in million CHF Gross sales Operating income Net income R&D 1400 100 90 120 90 80 1200 100 80 70 1000 70 60 80 60 800 50 50 60 600 40 40 30 40 400 30 20 20 20 200 10 10 0 0 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017
Slide 15: Net sales 2019
Group financial report Net sales 2019 by Business Unit by region Asia/Pacific/Others Medical 12% Devices 17% Switzerland Household Americas 45% Appliances 22% 48% Wire Processing 17% Life Science Solutions Europe w/o Switzerland 3% 21% Infection Control 14% Investor Presentation | March 19, 2020 15
Slide 16: Key figures 2019
Group financial report Key figures 2019 1400 Gross Sales EBIT 100 CHF million 2019 2018 ∆ 1’219.8 1200 90 80 Gross sales 1’219.8 1’199.9 1.7% 1000 70 Operating income (EBIT) 38.8 89.3 -56.6% adusted 51.9 800 60 in miillion CHF 51.91) 50 EBIT margin 3.2% 7.4% -420bp 600 Adjusted1) 4.3% 40 38.8 400 30
Slide 17: Overview 2019
Metall Zug Group Overview 2019 Group gross sales of CHF 1’219.8 million (2018: CHF 1’199.9 million); organic sales decline of 0.6% − Household Appliances with lower sales in Switzerland (mainly due to ERP problems and a bumpy launch of a new product line of kitchen appliances) and solid growth in mo
Slide 18: Key figures 2019
Group financial report Key figures 2019 ∆ CHF million 2019 2018 Gross sales 1’219.8 1’199.9 1.7% Operating income (EBIT) 38.8 89.3 -56.6% EBIT margin 3.2% 7.4% -420bp Operating income (EBIT) adjusted1) 51.9 89.3 EBIT margin adjusted1) 4.3% 7.4% -310bp Financial result 4.2 -3.5 Net income 29.2 63.6 -
Slide 19: Income statement
Group financial report Income statement CHF million 2019 in % 2018 in % Gross sales 1’219.8 100.0 1’199.9 100.0 Net sales 1’195.7 98.0 1’169.5 97.5 Cost of materials (incl. ∆ inventories) -425.1 34.8 -409.4 34.1 Personnel expenses -491.4 40.3 -472.2 39.4 Depreciation/amortization on tangible/intangi
Slide 20: Cash flow statement
Group financial report Cash flow statement CHF million 2019 2018 Cash flow from operating activities1) 56.9 88.0 - of which taxes paid -20.0 -25.7 Cash flow from investing activities -20.7 -140.3 - of which investments in tangible assets -79.7 -72.2 - of which investments in intangible assets -9.6 -
Slide 21: Net cash
Group financial report Net cash CHF million 2019 in % 2018 in % Cash and cash equivalents 152.8 97.9 161.8 71.2 Investments up to 12 months 2.7 1.7 1.2 0.5 Fixed-income investments over 12 months 0.0 0.0 18.5 8.1 Shares and similar investments 0.5 0.3 45.6 20.1 Total cash / securities 156.0 100.0 22
Slide 22: Gross sales analysis
Group financial report Gross sales analysis ORGANIC GROWTH EXTERNAL FX REPORTED Gross sales in million CHF Investor Presentation | March 19, 2020 22
Slide 23: Operating income (EBIT) analysis
Group financial report Operating income (EBIT) analysis OPERATIONAL (BUs) CORPORATE EXTRAORD. ADJUSTED EBIT in million CHF Investor Presentation | March 19, 2020 23
Slide 24: Balance sheet
Group financial report Balance sheet CHF million 2019 in % 2018 in % Cash and cash equivalents / securities 156.0 14.4 227.1 20.5 Other current assets 449.4 41.5 454.5 41.0 Current assets 605.4 55.9 681.6 61.5 Tangible assets 401.4 37.1 354.8 32.0 Financial & intangible assets 76.3 7.5 71.7 6.5 Fixe
Slide 25: Business Units
Business Units Investor Presentation | March 19, 2020
Slide 26: Household Appliances
Household Appliances 2019: Net sales CHF 583.8 million, EBIT CHF 28.7 million Investor Presentation | March 19, 2020 26
Slide 27: Key figures and overview
Household Appliances Key figures and overview CHF million 2019 ∆ 2018 Net sales by region Net sales to third parties 583.8 0.8% 579.2 11% (8%) Switzerland Operating income (EBIT) 28.71) -40.5% 48.3 International EBIT margin in % 4.9 -340bp 8.3 1) CHF 32.2 million on comparable basis (V-ZUG Infra sin
Slide 28: Strategic priorities
Household Appliances Strategic priorities – Further strengthen the market leadership of V-ZUG in Switzerland and its premium brand worldwide as a leader in innovation, technology and quality with Swiss-made products – Expand and strengthen the international business in the premium segment in selecte
Slide 29: Wire Processing
Wire Processing 2019: Net sales CHF 201.4 million, EBIT CHF 9.8 million Investor Presentation | March 19, 2020 29
Slide 30: Key figures and overview
Wire Processing Key figures and overview Net sales by region CHF million 2019 ∆ 2018 1% (1%) Net sales to third parties 201.4 -6.1% 214.5 Switzerland 21% (21%) Europe (excl. Operating income (EBIT) 9.8 -66.2% 28.9 CH) 43% (45%) Americas EBIT margin in % 4.9 -860bp 13.5 Asia / Pacific / 35% Others (3
Slide 31: Strategic priorities
Wire Processing Strategic priorities − Continuing the transformation of Schleuniger from a high-quality machine manufacturer and solution provider into a strategic system partner for its customers − Consolidate leading position in customer-specific systems − Strengthen structures and processes to fo
Slide 32: Medical Devices
Medical Devices 2019 Net sales CHF 204.9 million, EBIT CHF 16.5 million Investor Presentation | March 19, 2020 32
Slide 33: Key figures and overview
Medical Devices Key figures and overview Net sales by region CHF million 2019 ∆ 20181) 4% Net sales to third parties 204.9 n/a 178.5 (4%) Switzerland 19% Operating income (EBIT) 16.5 n/a 21.6 (20%) Europe (excl. CH) 33% (34%) Americas EBIT margin in % 8.1 -400bp 12.1 1)10 months (March – December 20
Slide 34: Strategic priorities
Medical Devices Strategic priorities − Invest in R&D to feed the product pipeline and to speed up time-to-market − Increase margins based on operational excellence including digitization of processes − Develop opportunities for organic growth and accelerate growth through acquisitions Investor Prese
Slide 35: Infection Control
Infection Control 2019: Net sales CHF 170.4 million; EBIT CHF 0.9 million Investor Presentation | March 19, 2020 35
Slide 36: Key figures and overview
Infection Control Key figures and overview CHF million 2019 ∆ 20181) Net sales by region Net sales to third parties 170.4 -13.6% 197.31) 5% Switzerland (n/a) Operating income (EBIT) 0.92) n/a -10.51) 20% Europe (excl. CH) (n/a) 34% Americas EBIT margin in % 0.5 580bp -5.3 (n/a) Asia / Pacific / 1) i
Slide 37: Strategic priorities
Infection Control Strategic priorities − Benefit from reduced complexity of the business structure and processes as a pure play − Increase market share in the US and APAC − Expand the Consumables and Service business Investor Presentation | March 19, 2020 37
Slide 38: Life Science Solutions
Life Science Solutions 2019: Net sales CHF 35.3 million; EBIT CHF –8.4 million Investor Presentation | March 19, 2020 38
Slide 39: Key figures and overview
Life Science Solutions Key figures and overview CHF million 2019 ∆ 20181) Net sales by region 5% Net sales to third parties 35.3 n/a n/a 3% 16% Operating income (EBIT) -8.4 n/a n/a Switzerland Europe (excl. CH) EBIT margin in % -23.7 n/a n/a Americas 1) Included in the business unit Infection Contro
Slide 40: Strategic priorities
Life Science Solutions Strategic priorities – Reduce complexity (simplify structure and processes) and continuously improve operational and financial project management and improve operational excellence – Focus on customer needs and leverage on customization projects – Exploit large customer base w
Slide 41: Technologycluster & Infrastructure
Technologycluster & Infrastructure 2019: Net sales CHF 0.0 million, EBIT CHF -11.2 million CHF million 2019 Net sales to third parties 0.0 Operating income (EBIT) -11.21) EBIT margin in % n/a 1) CHF 7.9 million excluding provision of CHF 13.1 million for soil remediation and payment to V-ZUG of CHF
Slide 42: Technology Cluster Zug
Technology Cluster Zug Future opportunities related to the Technology Cluster Zug Visualization of the development plan Site in the city of Zug of approx. 80’000m2 • Opportunity to develop a technology cluster in the coming years • Industrial • R&D • Faculties of universities • Start-ups • Multiple
Slide 43: Technology Cluster Zug projects
Technology Cluster Zug Projects related to the Technology Cluster Zug − A Multi Energy Hub to be created with partners to supply the Technology Cluster Zug with local, renewable energy − Mobility Hub Zug Nord (MHZN) planned on the northern part of the site, with an entry gate location to the city –
Slide 44: CAPEX
CAPEX Planned investments in tangible and intangible assets in the coming years incl. V-ZUG Group annual CAPEX in million CHF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Various (TCZ, etc.) MCHF 40-50 Multi Energy Hub MCHF 45-55 100 Mobility Hub MCHF 30-35 TCI CAPEX Zephyr Full Scope
Slide 45: CAPEX
CAPEX Planned investments in tangible and intangible assets in the coming years w/o V-ZUG Group annual CAPEX in million CHF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Various (TCZ, etc.) MCHF 30-40 Multi Energy Hub MCHF 45-55 100 TCI CAPEX Mobility Hub MCHF 30-35 Zephyr Zentral West
Slide 46: A strong Group of Industrial Companies
Metall Zug Group A strong Group of Industrial Companies Shareholders of Metall Zug will benefit from an attractive packet of two shares, both representing potential for value creation V-ZUG shares benefitting from higher strategic flexibility and dynamics as an independent company based on foundatio
Slide 47: Information for Investors
Information for Investors Investor Presentation | March 19, 2020
Slide 48: Financial calendar
Metall Zug Group Financial calendar April 24, 2020 General Meeting of Shareholders June 25, 2020 Expected first trading day of V-ZUG shares at SIX Swiss Exchange August 17, 2020 Publication of Half-Year Results 2020 Investor Presentation | March 19, 2020 48
Slide 49: Contact
Metall Zug Group Contact Daniel Keist Chief Financial Officer Metall Zug AG Industriestrasse 66 6302 Zug Switzerland Phone: +41 58 768 60 50 Investor Presentation | March 19, 2020 49
Slide 50: Appendix
NG —_ az METALL ZUG Appendix
Slide 51: Dividend in CHF millions
Dividends Payout in CHF millions and payout ratio 100.0 3) 100% 101% 3) Dividend in CHF millions 80.0 86% 80% Payout ratio 53% 60.0 49% 1) 60% 47% 38% 39%1) 2) 31% 37% 40.0 33% 4) 26% 40% 21.0 36% 26% 38.1 6) 20.0 33.4 25.7 20% 24.3 24.3 23.9 27.0 26.9 27.9 31.4 31.5 5) 0.0 7.7 0% 2010 2011 2012 201
Slide 52: Dividend per share
Dividend per share Payout in CHF per type B registered share and yield (vs. year-end share price) 160 1) 8% 7.2% 140 7% Dividend per reg. share B 120 2) 6% 4.4% Dividend yield 100 85 5% 47 2.2% 80 2.8% 4% 2.2% 2.6% 2.5% 60 2.3% 4) 3% 1.9% 74 40 2% 70 55 55 55 61 61 64 70 70 0.8% 20 1% 3) 17 0 0% 201
Slide 53: Shareholder structure
Shareholder structure As at December 31, 2019 Capital Votes 53
Slide 54: Disclaimer
Metall Zug Group Disclaimer Metall Zug AG has made great efforts to include accurate and up-to-date information in this document. However, we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and disclaim any