Slide 1: Presentation semi-annual report 2023
Engineering precisely what you value Presentation semi-annual report 2023 Rorschacherberg, July 27, 2023
Slide 2: Agenda
Agenda 1 Business review Martin Buyle, CEO 2 2 Financial review Thomas Erne, CFO 12 3 Outlook Martin Buyle, CEO 17 1
Slide 3: Business review
1. 1 Business review Martin Buyle CEO 2
Slide 4: Key highlights H1 2023
Key highlights H1 2023 Positive expectations more than fulfilled Sales revenues in the first half-year increased by 43% to 199.9 CHF m compared to prior-year period Order intake of 183.3 CHF m maintained at a high level Order backlog of 307.5 CHF m ensures capacity utilization well into 2024 Continu
Slide 5: Significant growth in sales revenues and EBIT
Significant growth in sales revenues and EBIT CHF m Significant growth in +43% +152% sales revenue of 43%. The bottlenecks in 200 15 material procurement, that have impacted the sales revenue 139 recognition in 2022, have been eliminated and the order-backlog could be 6 processed timely The increase
Slide 6: Order intake maintained at high level – solid order backlog
Order intake maintained at high level – solid order backlog CHF m 461 Order intake H1 2023 with 183 396 CHF m almost on 379 366 level of prior year 343 and within 244 327 303 308 expectations 284 206 229 256 Order backlog 170 307.5 CHF m, up 193 190 183 1.5% compared 174 with H1 2022 resp. 104 6.0%
Slide 7: Order intake breakdown: stable recurring service
Order intake breakdown: stable recurring service CHF m 461 Increasing service share, small/ 396 medium orders 144 379 down 343 111 Customers 67 119 increased capacity and ordered bundles which led 193 190 183 237 to higher volume 199 6 204 12 189 39 of large orders 126 Small and medium 145 size orde
Slide 8: Order intake by industry: Industrial as largest customer segment
Order intake by industry: Industrial as largest customer segment CHF m Growth in 461 Industrial (key- 396 driver Micro- 379 mechanics) 171 343 Transportation 107 127 growth due to 38 122 larger projects in 47 the segment 40 25 193 190 Trucks and Bus 183 176 50 44 41 Europe is 17 198 29 6 investing i
Slide 9: Order intake by region: Europe continues to be the dominant market
Order intake by region: Europe continues to be the dominant market CHF m 461 Europe on constant 69 investment level 379 396 42 Americas and 343 62 120 China are holding 45 70 back 80 Current FX-rate 112 190 EUR and JPY is in 192 183 favor with 26 22 21 28 15 Japanese 272 40 284 237 suppliers (approx
Slide 10: Market view: Starrag is well-positioned in key customer applications
Market view: Starrag is well-positioned in key customer applications Aerospace 23% Energy 3% Transportation 18% Industrial 56% Strong trend towards Sustained investment Agricultural machinery, like Good demand from single-aisle aircraft in wind farms for the construction machinery, mechanical engine
Slide 11: A constant stream of innovations ensures competitiveness of Starrag products
A constant stream of innovations ensures competitiveness of Starrag products Bumotec 191neo – a new edition of the top-of-the-range s191 model Highly flexible, basically twelve different machines in one platform The tool change time is reduced by around 15% The pick-up unit operates 12% faster than
Slide 12: Starrag continues to work on four strategic cornerstones
Starrag continues to work on four strategic cornerstones Focus Differentiation Portfolio Excellence on the most Differentiation Better scaling of Increased focus attractive through the existing on operational market/product application product excellence segments and competence, portfolio and across
Slide 13: Financial review
1. 2 Financial review Thomas Erne CFO 12
Slide 14: Strong increase on all P&L lines
Strong increase on all P&L lines CHF m H1 2023 H1 2022 Change High organic Sales revenue 199.9 139.5 43.3% increase in sales revenue +66 CHF m EBITDA 19.1 9.9 76.5% excl. FX effects EBIT 15.4 6.1 152.1% Significant increase in EBIT margin from Interest expenses, net -0.4 -0.1 n/a 4.4% to 7.7% FX res
Slide 15: EBIT development
EBIT development CHF m 11.4 29.1 8.2 15.4 0.2 6.1 EBIT H1 2022 Volume Other Operating Increase FX-Effect EBIT H1 2023 Income in OPEX 4.4% EBIT Margin 7.7% 14
Slide 16: Balance sheet: Equity and equity ratio continuously strong
Balance sheet: Equity and equity ratio continuously strong CHF m Assets Liabilities Increase in Working Capital Total assets 359 359 334 26 334 Financial Increase in Cash 21 12 49 Receivables due to debt higher invoicing in H1 125 Receivables 111 150 131 Operating 2023 liabilities Greater increase i
Slide 17: Free cash flow impacted by increase in net working capital
Free cash flow impacted by increase in net working capital CHF m Net income increased 3.7 0.2 significant 13.6 -0.5 Change in NWC due to decline in advanced payments for large machine projects Increase in customer receivables due to higher volume in H1 2023 compared to -39.5 -22.5 prior year -3.7 -2
Slide 18: Outlook
1. 3 Outlook Martin Buyle CEO 17
Slide 19: General outlook
General outlook Global economic prospects with some question marks, e.g. geopolitical developments Inflation general economic development Impact on Starrag Group’s business hardly predictable Internal homework has been done Starrag Group therefore considerably more resilient to future challenges Goo
Slide 20: Guidance FY 2023
Guidance FY 2023 Order intake Sales revenue EBIT +/- 2022 > 2022 > 2022 19
Slide 21: Starrag adheres to medium-term financial targets
Starrag adheres to medium-term financial targets Sales revenue * Profitability * Dividend ratio plus 5% p.a. 8% EBIT margin 35-50% of net profit Low price-to-book ratio Low price-earnings ratio Low property valuation Solid balance sheet Dividend paying capacity 20 * In local currencies and as averag
Slide 22: Corporate calendar
Corporate calendar January 26, 2024 Preliminary information on FY 2023 March 8, 2024 Presentation of annual report 2023 April 20, 2024 Annual General Meeting July 25, 2024 Semi-annual report 2024 Martin Buyle, CEO Thomas Erne, CFO investor@starrag.com www.starrag.com 21
Slide 23: We are pleased to answer your questions. Thank you.
We are pleased to answer your questions. Thank you. www.starrag.com 22
Slide 24: Disclaimer
Disclaimer Starrag Group is making great efforts to include accurate and up-to-date information in this presentation, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation and Starrag Group does not