Phoenix Mecano Ag · SIX:PMN
Phoenix Mecano — Investor Presentation (September 2024)
28 slides from Phoenix Mecano's investor presentation, September 2024
Slide 1: Global Competence, Local Value – Investor Presentation
GLOBAL COMPETENCE, LOCAL VALUE Phoenix Mecano Investor Presentation September 2024
Slide 2: Who we are
Who we are A GLOBAL TECHNOLOGY GROUP LISTED IN SWITZERLAND EUR ~800 million sales • High-tech components and modular solutions • Revenue 53% Europe and 47% rest of the world 2 growth areas • Streamlined & balanced portfolio 3 focused divisions • Focus on profitable niche markets • Proven customer ce
Slide 3: Global presence – operational excellence and market proximity
Who we are GLOBAL PRESENCE – EMPHASIZING OPERATIONAL EXCELLENCE AND MARKET PROXIMITY Gross Sales 2023 | in EUR million Near & Far East 9 Competence 297.5 Centers EUR million Europe 18 Production flex shops 413.2 EUR million 25 Sales North & South Offices America 72.4 EUR million Phoenix Mecano, Sept
Slide 4: Our Strategic Focus
Investment Case OUR STRATEGIC FOCUS
Slide 5: Our Strategic Focus
Investment Case OUR STRATEGIC FOCUS 1 Balanced portfolio with leading market positions •Streamlining 2 Proven customer-centric business model Portfolio 3 Reliable shareholder returns underpinned by strong cashflow generation •Focus on Profitability 4 Growth aspirations and profitability targets 5 De
Slide 6: Balanced portfolio with leading market positions
Investment Case BALANCED PORTFOLIO WITH LEADING MARKET POSITIONS GROWTH Industrial Solutions Smart Furniture AREAS FOCUSED Industrial Enclosure DewertOkin Technology Group DIVISIONS Components Systems • Industrial Automation and Robotics • Smart Home GROWTH • Demographic changes DRIVERS • Industrial
Slide 7: Illustrative applications
Investment Case ILLUSTRATIVE APPLICATIONS GROWTH Industrial Solutions Smart Furniture AREAS FOCUSED Industrial Enclosure DewertOkin Technology Group DIVISIONS Components Systems • Industrial Automation and Robotics • Smart Home GROWTH DRIVERS Phoenix Mecano, September 2024 7
Slide 8: Proven Business Model
Value Proposition PROVEN BUSINESS MODEL
Slide 9: Proven business model – customer-centric value proposition
Value Proposition PROVEN BUSINESS MODEL – CUSTOMER-CENTRIC VALUE PROPOSITION 1. Standardize CUSTOM-DESIGNED Bundling demand, developing Economies SOLUTIONS and manufacturing industrial of scale "Tailor-made" STANDARD components COMPONENTS "Off-the-shelf" 2. Customize 3 1 Customized adaptations for P
Slide 10: Reliable shareholder returns underpinned by strong cashflow generation
Shareholder Return RELIABLE SHAREHOLDER RETURNS UNDERPINNED BY STRONG CASHFLOW GENERATION
Slide 11: Strong cash flow generation
Shareholder return STRONG CASH FLOW GENERATION Cash Flow and Investments | in EUR million 100 90 90 80 70 60 56 58 55 49 47 50 44 39 39 38 40 40 37 30 28 28 30 30 27 26 26 26 27 24 24 20 18 15 14 13 11 10 12 10 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Cash flow from operating activities I
Slide 12: Significant cash return to shareholders
Shareholder return SIGNIFICANT CASH RETURN TO SHAREHOLDERS Dividends 2014 – 2023 | in CHF 30 12 27 24 21 18 18 15 16 16.5 14 14 14 15 15 12 9 10 6 8 3 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Dividend yield*/** 3.3% 3.2% 3.2% 2.4% 3.4% 2.1% 1.7% 3.7% 5.0% 6.9% Pay-out-ratio** 59% 202% 57%
Slide 13: Growth aspirations and profitability targets
Investment Case GROWTH ASPIRATIONS AND PROFITABILITY TARGETS
Slide 14: Growth aspirations and profitability targets
Investment Case GROWTH ASPIRATIONS AND PROFITABILITY TARGETS Group-level Strategic mid-term targets 2026 Growth • Organic 4–6% • Total 6–10% • Smart Furniture >10% Profitable Growth Returns to shareholders Profitability Return on Capital • EBIT-Margin 8–12% • ROCE > 15% • Industrial Solutions > 10%
Slide 15: Our Strategic Focus – Gross Sales
Investment Case OUR STRATEGIC FOCUS EUR million 1000 Gross Sales Divested Business Continued Business 816.9 792.9 783.1 800 680.0 687.4 47.0 50.1 18.5 53.3 43.1 600 400 769.9 742.8 764.6 626.7 644.3 200 0 2019 2020 2021 2022 2023 Operating Cashflow 48.8 48.2 66.6 78.0 85.3 (EBITDA) EBIT margin 3.4%
Slide 16: Our Growth Drivers
Megatrends OUR GROWTH DRIVERS
Slide 17: Growth Area – Industrial Automation and Robotics
Growth Area – Industrial Automation and Robotics − Factory Automation and Robotics − Industrial Digitalization − Internet of Things − Shortage of Skilled Labor − Reshoring Phoenix Mecano, September 2024 17
Slide 18: Robot systems market
Our Growth Drivers ROBOT SYSTEMS MARKET Global Robot Systems Market Annual shipments of industrial robots worldwide ~3-8 Software Thousand units and programming 4-16 ~ 5-8 Robot arm without Installation end of arm tooling CAGR 9.2% USD 48 billion ~ 10-12 Auxiliary and supplementary ~ 12 hardware (e.
Slide 19: Growth Area – Smart Furniture
Growth Area – Smart Furniture − Aging society − Digital health − Growing middle-class − Smart home − Ergonomics in homeoffices and workplaces Phoenix Mecano, September 2024 19
Slide 20: Market potential smart furniture (2/2)
Our Growth Drivers MARKET POTENTIAL SMART FURNITURE (2/2) • Increasing penetration rate for automated Global Adjustable Beds Market furniture → USA > 60% (EU > 10%) USD billion 16 • Going for «higher growth» through organic 13.7 14 growth drivers: 12 − Increasing number of drives per set 10 − Vertic
Slide 21: Business Performance H1 2024
Current Financials BUSINESS PERFORMANCE H1 2024
Slide 22: Consolidated results H1 2024
H1 2024 CONSOLIDATED RESULTS H1 2024 • Group sales declined due to economic slowdown and divestments • Industrial activities impacted by sluggish demand in Europe, particularly in Germany • Continued turnaround of DOT Group • Integration of production for DOT mechanism technology • Product innovatio
Slide 23: Outlook 2024
OUTLOOK 2024 • Visibility still low and numerous uncertainty factors remain • First signs of economic recovery – Phoenix Mecano expects upturn to continue • Recovery may come too late to fully compensate backlog from H1 2024 • Updated guidance: Operating result between unchanged from previous year a
Slide 24: Update new industrial park and technology centre in Jiaxing
DewertOkin Technology Group UPDATE NEW INDUSTRIAL PARK AND TECHNOLOGY CENTRE IN JIAXING
Slide 25: New industrial park
DewertOkin Technology Group NEW INDUSTRIAL PARK Location: Jiaxing (Shanghai) Operational ramp-up: 2023 Floor space: 115.000 sqm Investment: Up to EUR 100 million Rationale • Consolidate existing locations • Improve operational efficiency • Increase vertical integration • Materialize operational leve
Slide 26: Smart factory
智慧工厂 The factory includes three manufacturing centers: smart home, healthy office and smart medical care SMART FACTORY It covers seven core production processes including injection molding, aluminum processing, painting, welding, Surface Mounted Tec. (SMT), DC motor production and final assembly. 注塑
Slide 27: Equity story
Wrap-up EQUITY STORY STREAMLINING PORTFOLIO FOCUS ON PROFITABILITY 1. Balanced portfolio with leading market • Net cash position by end of year – positions Launch of share buyback program 2. Proven customer-centric business • Increased focus through divestments model and improved profitability 3. Re
Slide 28: Phoenix Mecano
PHOENIX MECANO
Phoenix Mecano — Investor Presentation (September 2024) on 6ix