Georg Fischer Ag · SIX:GF

Georg Fischer — H1 2018 Earnings Presentation

26 slides from Georg Fischer's earnings presentation, Jul 18, 2018

  1. Slide 1: Mid-year Report 2018

    Georg Fischer Ltd Mid-year Report 2018 Yves Serra, CEO 18.07.2018

  2. Slide 2: Positive momentum continued in 1. half-year

    GF Corporation Positive momentum continued in 1. half-year  Sales up 20% to CHF 2’396 million, organically 12%  Operating result grew 24% to CHF 208 million for an 8.7% EBIT margin  Net profit after minorities increased by 27% to CHF 150 million  Execution of 2020 strategy fully on track  Promi

  3. Slide 3: Substantial sales growth at all three divisions

    GF Corporation Substantial sales growth at all three divisions 28% 20% 18% 15% H1 2017 H1 2018 10% 7% 6% 4% GF GFPS GFCS GFMS 3 Mid-year Report as of 30 June 2018 | 18.07.2018

  4. Slide 4: Profitability increased anew

    GF Corporation Profitability increased anew EBIT margin in % 12.1% 11.7% 8.4% 8.7% 8.0% 7.3% 6.5% 6.3% H1 2017 H1 2018 GF GFPS GFCS GFMS 4 Mid-year Report as of 30 June 2018 | 18.07.2018

  5. Slide 5: All three divisions generate substantial value again

    GF Corporation All three divisions generate substantial value again H1 2017 H1 2018 ROIC Objectives (ROIC in %) in % 25.6 24.7 22.1 22.4 21.2 20.7 19.2 18 ~ 22% 14.9 WACC 7.5% GF GFPS GFCS GFMS 5 Mid-year Report as of 30 June 2018 | 18.07.2018

  6. Slide 6: GF Piping Systems: Good position in growth markets pays off

    GF Piping Systems Good position in growth markets pays off  Sales up 15% to CHF 947 million  High growth in industrial applications  Utility sector continues to grow in China/USA  Building Technology sales also up in most countries  EBIT up 19% to CHF 115 million Semiconductor factory 6 Mid-yea

  7. Slide 7: New digital products introduced

    GF Piping Systems New digital products introduced Digital thermal sterilization for hospitals Digital valves (legionella) Hycleen 7 Mid-year Report as of 30 June 2018 | 18.07.2018

  8. Slide 8: GF Casting Solutions: Sales outperform market growth

    GF Casting Solutions Sales outperform market growth  Sales up 28% to CHF 924 million (organically 11%)  European truck production remains on the growth path  Demand up worldwide for light-weight components  EBIT up 13% to CHF 60 million Door sill frame, Aluminium Large orders for light-weight co

  9. Slide 9: Promising acquisitions realized, accretive to earnings

    GF Casting Solutions Promising acquisitions realized, accretive to earnings Eucasting, Pitesti (Romania) GF Precicast, Novazzano TI (Switzerland) Light metal foundry Aerospace precision casting foundry 9 Mid-year Report as of 30 June 2018 | 18.07.2018

  10. Slide 10: GF Machining Solutions: A strong performance increase

    GF Machining Solutions A strong performance increase  Order intake up 8% on strong Asia/Europe demand  Sales up 18% to CHF 525 million, organically 14%  Newly launched products did contribute the most  EBIT up 50% to CHF 42 million Connected devices spur electronic component growth 10 Mid-year R

  11. Slide 11: Newly launched products drive the order increase

    GF Machining Solutions Newly launched products drive the order increase New CUT P machine New Mill P machine Part for implant Machinery parts 11 Mid-year Report as of 30 June 2018 | 18.07.2018

  12. Slide 12: Consolidated financial statements

    Andreas Müller, CFO Consolidated financial statements 12 Mid-year Report as of 30 June 2018 | 18.07.2018

  13. Slide 13: Sales per division 1st Semester 2018

    GF Corporation Sales per division 1st Semester 2018 CHF million 1st Sem. 1st Sem. organic growth 1) 2018 2017 growth GF Piping Systems 947 826 14.6 % 11.1 % GF Casting Solutions 924 723 27.8 % 11.3 %* GF Machining Solutions 525 444 18.2 % 14.2 % Corporation 2’396 1’992 20.3 % 11.9 % GF Casting Solut

  14. Slide 14: Strong organic growth of 11.9%

    GF Corporation Strong organic growth of 11.9% CHF million +404 Sales (+20.3%) +11.9% 2′396 238 +4.9% +3.5% 97 1′992 69 1st Sem. Acquisition Currency Organic Growth 1st Sem. 2017 2018 14 Mid-year Report as of 30 June 2018 | 18.07.2018

  15. Slide 15: Strong growth across all regions

    Strong growth across all regions Europe Asia CHF million +22% +22% 1'331 Americas 604 1'091 494 +18% 335 283 Rest of world H1/17 H1/18 H1/17 H1/18 +2% 124 126 H1/17 H1/18 15 Mid-year Report as of 30 June 2018 | 18.07.2018 H1/17 H1/18

  16. Slide 16: Currency impact on Sales 1st Semester 2018

    GF Corporation Currency impact on Sales 1st Semester 2018 CHF million Per division: Per currency: EUR 93 USD -11 GF Piping Systems 19 CNY 23 GF Casting Solutions 63 TRY -9 GF Machining Solutions 15 Others 1 Corporation 97 Total 97 16 Mid-year Report as of 30 June 2018 | 18.07.2018

  17. Slide 17: EBIT and margin per division 1st Semester 2018

    GF Corporation EBIT and margin per division 1st Semester 2018 CHF million EBIT margin % 1st Sem. 1st Sem. 1st Sem. 1st Sem. 2018 2017 2018 2017 GF Piping Systems 115 97 12.1 % 11.7 % GF Casting Solutions 60 53 6.5 % 7.3 % GF Machining Solutions 42 28 8.0 % 6.3 % Corporation 208 168 8.7 % 8.4 % 17 Mi

  18. Slide 18: Currency impact on EBIT 1st Semester 2018

    GF Corporation Currency impact on EBIT 1st Semester 2018 CHF million Per division: Per currency: EUR 8 USD -3 GF Piping Systems 2 CNY 4 GF Casting Solutions 4 TRY -3 GF Machining Solutions 0 Others 0 Corporation 6 Total 6 18 Mid-year Report as of 30 June 2018 | 18.07.2018

  19. Slide 19: Income statement

    GF Corporation Income statement 1st Sem. 1st Sem. CHF million 2018 2017  Sales 2’396 1’992 20 % Gross value added 877 752 17 % Personnel expenses -595 -517 15 % EBITDA 282 235 20 % Depreciation, amortization -74 -67 10 % EBIT 208 168 24 % Financial result -16 -15 7% Ordinary result 192 153 25 % Non

  20. Slide 20: Free cash flow

    GF Corporation Free cash flow 1st Sem. 1st Sem. CHF million 2018 2017 EBITDA 282 235 Changes in net working capital -243 -183 Income taxes/interest paid -47 -35 Other changes 54 31 Cash flow from operating activities 46 48 Additions to property, plant, and equipment -94 -76 Additions to intangible a

  21. Slide 21: Key figures at a glance

    GF Corporation Key figures at a glance 1st Sem. 1st Sem. 2018 2017 Net debt in CHF 480 315 Net debt/EBITDA (multiple) 0.9x 0.7x ROIC in % 21.2 19.2 Return on Equity in % 23 20 Earnings per share in CHF 37 29 Number of employees (incl. trainees) 16’864 14’918 21 Mid-year Report as of 30 June 2018 | 1

  22. Slide 22: Outlook

    Yves Serra, CEO Outlook 22 Mid-year Report as of 30 June 2018 | 18.07.2018

  23. Slide 23: Strategy implementation well on track at its mid-term

    GF Corporation Strategy implementation well on track at its mid- term  Growth well above objective (12% vs. 3-5%)  ROS at 8.7%, well in line with 8~9% goal  ROIC reaches 21.2% (vs. 18~22% objective)  Strong growth in Asia/USA  Margins at GF Piping Systems and GF Machining Solutions clearly incr

  24. Slide 24: Outlook 2018: Sales growth over target, profitability within range

    Outlook 2018 Sales growth over target, profitability well within 2020 strategy objective range  High growth at GF Piping Systems, especially for its industrial applications  Light-weight demand sustained at GF Casting Solutions, newly acquired companies accretive  Strong order book at GF Machinin

  25. Slide 25: Thank you

    Thank you 25

  26. Slide 26: 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 — H1 2018 Earnings Presentation on 6ix