Georg Fischer Ag · SIX:GF
Georg Fischer — H1 2024 Earnings Presentation
33 slides from Georg Fischer's earnings presentation, Jul 18, 2024
Slide 1: Welcome
Welcome Presentation Mid-Year Report 2024 © GF v3.1
Slide 2: Mid-Year Report 2024
Schaffhausen, 18 July 2024 Mid-Year Report 2024 Andreas Müller, CEO | Mads Joergensen, CFO © GF v3.1
Slide 3: Building momentum in a challenging environment
GF Corporation Building momentum in a challenging environment GF Piping Systems GF Building Flow Solutions GF Casting Solutions GF Machining Solutions ▪ Resilient markets in ▪ Growing US business and ▪ Improving profitability with ▪ Q1 strongly affected by Europe and solid persisting headwinds in st
Slide 4: Resilient amid challenging market conditions
GF Corporation Resilient amid challenging market conditions (in CHF) Sales Business insights ▪ Sales up by 22.8%, reflecting the increased focus on 2.4 billion +22.8% -3.2% Water and Flow Solutions ▪ Sales down organically by 3.2%, reflecting a soft start growth YOY organic YOY partially offset by a
Slide 5: Corporate-wide performance improvement program launched in response to soft markets
GF Corporation Corporate-wide performance improvement program launched in response to soft markets Operational cost reductions in response to lower market volumes CHF 50 million Structural adjustments to increase organizational Expected effect in 2024 efficiency Execution on NWC program to secure op
Slide 6: Integration of Uponor well on track – synergies exceeding initial target for 2024
GF Corporation Integration of Uponor well on track – synergies exceeding initial target for 2024 Sharpened organization reflecting business focus Building Technology business integrated into GF Building Flow Solutions (formerly GF Uponor), while former Uponor Infrastructure business merged into Util
Slide 7: Strong performance in sustainability
GF Corporation Strong performance in sustainability CO2e emissions Sales with social or environmental benefits as % of total sales Scope 1 and 2, in 1'000 tonnes 17% newly appointed 80 250 73% 2311 managers are women2 70% 70 (Target 2025: 25%) 63% 200 60 165 Accident rate (Lost time injury frequency
Slide 8: GF Piping Systems with resilient markets in Europe and gaining momentum in North America
GF Piping Systems GF Piping Systems with resilient markets in Europe and gaining momentum in North America (in CHF) Sales¹ EBIT margin (comparable)¹ 993 -6.8% -4.5% 13.3% -15% 2 million growth YOY organic YOY (2023: 13.2%) Microelectronics ▪ Growing Water Utility business in Europe, overcoming unusu
Slide 9: Prefabricated water treatment applications for desalination plants
GF Piping Systems Prefabricated water treatment applications for desalination plants Customer needs: Precise flow solutions for water treatment applications to guarantee high quality drinking water to 4.5 million people in Algeria GF solution: ▪ Long-lasting and low-maintenance plastic components ▪
Slide 10: Solutions with sound US business and resilient renovation business in Europe
GF Building Flow Solutions GF Building Flow Solutions with sound US business and resilient renovation business in Europe (in CHF) Sales¹ EBIT margin (comparable)¹ 561 -8.6% 10.3% -13% 3 million organic YOY 2 ▪ Sound performance in North America with organic growth Building Flow Solutions – Europe an
Slide 11: Uponor Siccus Mini – Innovation for underfloor heating in renovation projects
GF Building Flow Solutions Uponor Siccus Mini – Innovation for underfloor heating in renovation projects Customer needs: Low height constructions for underfloor heating systems GF solution: Uponor Siccus Mini Innovative underfloor heating system with advantages for installer, builder and end user ▪
Slide 12: GF Casting Solutions with strong presence in China and continuous growth in Aerospace
GF Casting Solutions GF Casting Solutions with strong presence in China and continuous growth in Aerospace (in CHF) Sales EBIT margin 462 -2.0% +1.2% 8.8% 1 -8% million growth YOY organic YOY (2023: 7.5%) Light vehicles – Internal combustion engine ▪ Accelerated demand for lightweight components for
Slide 13: Creating new lightweight concepts for the future of mobility
GF Casting Solutions Creating new lightweight concepts for the future of mobility Customer needs: Major changes in cockpit design trigger new requirements and functions GF solution: Lightweight concept for the cockpit of the future ▪ Open legroom ▪ Integration of head up display ▪ Heat dissipation d
Slide 14: Strong momentum in Q2 partially compensating exceptional weak Q1
GF Machining Solutions Strong momentum in Q2 partially compensating exceptional weak Q1 (in CHF) Order intake Sales EBIT margin (comparable) 440 392 -8.0% -5.0% 0.5% +63% 1 million million growth YOY organic YOY (2023: 4.7%) Aerospace ▪ Ongoing strong orders in aerospace and energy segments ▪ Weak s
Slide 15: Turbomill 500g – New standard for blade machining in the growing Aerospace sector
GF Machining Solutions Turbomill 500g – New standard for blade machining in the growing Aerospace sector Customer needs: Machining of ultra hard metals such as Inconel, while meeting the highest quality and productivity requirements Turbine blade GF solution: A high-performance machine, designed for
Slide 16: Consolidated financial statements
Consolidated financial statements Mads Joergensen, CFO © GF v3.1 16 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 17: Order intake
GF Corporation Order intake (CHF million) Organic -2.9% -2.8% 2’367 1’925 986 947 -5.1% -1.6% 540 480 440 461 440 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 GF Corporation GF Piping Systems GF Building Flow Solutions GF Casting Solutions GF Machining Solutions © GF v3.1 17 Schaffhau
Slide 18: Sales
GF Corporation Sales (CHF million) Organic -3.2% -4.5% 2’407 1’961 1’065 993 -8.6%1 +1.2% -5.0% 561 471 462 426 392 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 GF Corporation GF Piping Systems GF Building Flow Solutions GF Casting Solutions GF Machining Solutions 1 Baseline: reported
Slide 19: Sales bridge
GF Corporation Sales bridge (CHF million) -3.2% -4.5% +30.5% +22.8% +598 2’407 1’961 -63 -89 H1 2023 Organic Currencies Acquisitions H1 2024 © GF v3.1 19 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 20: Comparable EBIT margin
GF Corporation Comparable EBIT margin (in %) Strategic objectives 2025 13 – 15% 13.2 13.3 10 – 12% 10 – 12% 10.3 9 – 11% 9.4 9.1 8.8 8 – 10% 7.5 4.7 comparable 0.5 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 H1 23 H1 24 GF Corporation GF Piping Systems GF Building Flow Solutions GF Casting Solut
Slide 21: EBITDA bridge
GF Corporation EBITDA bridge (CHF million) x.x% EBITDA margin 12.2% 11.5% 12.6% +27 302 +66 276 239 -10 -19 H1 2023 Organic Currencies Acquisitions H1 2024 Items affecting H1 2024 reported comparability comparable © GF v3.1 21 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 22: Items affecting comparability in H1 and forecast FY
GF Corporation Items affecting comparability in H1 and forecast FY (CHF million) H1 2024 FY 2024 Comment Items affecting comparability PPA effects on inventory (Uponor) 14 14 Value creation program 7 15-20 Total 25-30 until 2027 Performance improvement program 6 10-15 Total costs to be booked in 202
Slide 23: Fast progress in procurement synergies – Ambition for 2024 increased
GF Corporation Fast progress in procurement synergies – Ambition for 2024 increased; target run rate 2027 confirmed Expected annual run rate of synergies Major synergies for 2024 until 2027 (in CHF million) ▪ Sourcing of raw materials 40-50 ▪ Consolidation of corporate processes, 30-40 incl. elimina
Slide 24: Income statement
GF Corporation Income statement (CHF million) H1 2024 H1 2023 % as reported comparable1 Sales 2’407 1’961 +22.8 Other operating income 20 23 Income 2’427 1’983 +22.4 Cost of materials and changes in inventory -987 -825 +19.7 Operating expenses -474 -365 +29.7 Personnel expenses -691 -555 +24.5 EBIT
Slide 25: Currency effects on sales and EBIT
GF Corporation Currency effects on sales and EBIT (CHF million) Per division Sales EBIT Per currency Average rates Sales EBIT H1 24 H1 23 ∆% GF Piping Systems -61 -15 EUR 0.962 0.986 -2.4% -13 -1 GF Building Flow Solution n.a. n.a. USD 0.889 0.912 -2.5% -1 -11 GF Casting Solutions -15 -1 CNY 0.123 0
Slide 26: EBIT to Net Profit
GF Corporation EBIT to Net Profit (CHF million) H1 2024 H1 2023 % Operating result (EBIT) 194 184 +5.5 Interest income / expense (net) -37 -7 Other financial result -15 -13 Share of results of associates 0 -0 Ordinary result 141 164 -13.9 Non-operating results -1 -1 Profit before taxes 140 163 -14.
Slide 27: Free cash flow
GF Corporation Free cash flow (CHF million) H1 2024 H1 2023 EBITDA 276 239 Changes in net working capital -132 -165 Interest paid -44 -15 Income taxes -52 -37 Other changes 14 10 Cash flow from operating activities 62 33 Additions to property, plant, and equipment -96 -90 Cash flow from acquisitions
Slide 28: Balance sheet KPIs
GF Corporation Balance sheet KPIs H1 2024 H1 2023 Net debt (+) / Net cash (-) in CHF million 2’041 108 Net debt / EBITDA (multiple) 3.6x1 0.2x Equity ratio in % 1.7 45.1 ROIC in % GF Corporation 16.8 21.7 GF Piping Systems 26.1 30.2 GF Building Flow Solutions 14.4 – GF Casting Solutions 21.5 18.6 GF
Slide 29: Outlook 2024
Outlook 2024 Andreas Müller, CEO © GF v3.1 29 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 30: Expected accelerated market momentum in H2
GF Corporation Expected accelerated market momentum in H2 GF Piping Systems GF Building Flow Solutions GF Casting Solutions GF Machining Solutions ▪ Promising semiconductor ▪ Sound business ▪ Ongoing positive ▪ Aerospace sales further outlook performance in the US momentum in Chinese up, realizing g
Slide 31: Going forward as one GF!
GF Corporation Going forward as one GF! Successful start of collaboration and integration in 2024 © GF v3.1 31 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 32: Thank you
Thank you © GF v3.1 32 Schaffhausen, 18 July 2024 | Mid-Year Report 2024
Slide 33: 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