Rational Aktiengesellschaft · XETR:RAA
Rational Aktiengesellschaft — Rational — Q1 2020 Earnings Presentation
56 slides from Rational Aktiengesellschaft's earnings presentation, May 2020
Slide 1: IR Presentation Q1 2020
IR Presentation Q1 2020 RATIONAL
Slide 2: Our success factors
Our success factors In the past and in the future Concentration on Specialisation in professional kitchens „thermal cooking“ Highest possible Entrepreneurs in customer benefit the company 2
Slide 3: High customer satisfaction
High customer satisfaction Above average number of apostles Mercenaries Apostles [27%] [49%] Source: Kantar TNS / MI (2016-2019) – in 14 markets with RATIONAL subsidiaries 14% 74% [x]: Average of the manufacturing industry worldwide 6% 6% Satisfaction Rebels Hostages [17%] [7%] Loyality 3
Slide 4: 7.6 billion people live on earth
7.6 + 80 billion people live on earth million more each year 140,000,000 dishes are prepared using RATIONAL appliances every day 4,000,000 potential professional kitchens >90% recommendation rate 4
Slide 5: BMW Group customer quote
"I decide on the desired result, RATIONAL does the rest, and I can rely absolutely 100% on the quality." BMW Group Kurt Rass, Kitchen Manager BMW Group Munich, Germany 5
Slide 6: Quanjude Group customer quote
"Without RATIONAL, we would not be able to prepare 20,000 Peking ducks every day with such high quality." Quanjude Group Yan Dajian, Head of R&D, P.R. China 6
Slide 7: Nando's International customer quote
"They know what they do and understand what we need. We believe that RATIONAL is simply the perfect partner." Nando’s International Partner for more than 25 years 7
Slide 8: Combi-Steamers and VarioCookingCenter produced
>1.000.000 Combi-Steamers produced since 1976 > 40.000 VarioCookingCenter® produced since 2005
Slide 9: Worldwide presence, close to the customer
Worldwide presence Close to the customer 32 120 Local presence in more than subsidiaries countries 4,000 More than partners worldwide 9
Slide 10: The world market potential
The world market potential More than 4 million professional kitchens 10 million 10 million kitchens kitchens Potential for Combi-Steamers Potential for VarioCookingCenter® 4 million kitchens 2 million kitchens 10
Slide 11: High untapped market potential for both product groups
High untapped market potential for both product groups Aiming to substitute traditional equipment in professional kitchens 2 %VarioCookingCenter® 12% RATIONAL 13% Competitors 1% Competitors 75% Traditional appliances 97% Traditional appliances More than 4 m addressable kitchens for More than 2 m add
Slide 12: Our customers worldwide
Our customers worldwide Establishments with over 20 meals per service ~45% Restaurants with service ~40% Mass Catering ~5% ~10% Restaurants without service Retail Graphic refers to the number of sold appliances 12
Slide 13: More customer benefit
Higher earnings Economies of scale Higher attractivity Higher More productivity customer Customer benefit benefit Positive Rising learning demand curve 05.05.2020 \ Unternehmenspräsentation 2018 13 Growth
Slide 14: For food
For food Whose quality is setting standards 14
Slide 15: For customer benefit
For customer benefit That exceeds all expectations
Slide 16: For healthy food
For healthy food With more nutritions and less pollutants
Slide 17: For kitchens
For kitchens In which 20 or 20,000 dishes are prepared
Slide 18: For people
For people Preparing food thermally in commercial kitchens
Slide 19: 45 years of research into cooking intelligence
45 years of research into cooking intelligence 2020 1 Mio. produced Combi- Steamers 2019 iVario Pro FRIMA becomes RATIONAL iCombi Pro 2018 2017 VarioCookingCenter® 112L ConnectedCooking 2016 Founding of the VarioCookingCenter® 112T SelfCookingCenter® XS RATIONAL GmbH 2014 1973 VarioCookingCenter® Se
Slide 20: RATIONAL production sites
RATIONAL- production sites Landsberg/Lech Wittenheim
Slide 21: The iCombi Pro
The iCombi Pro The new „Gold Standard“ in the kitchen Exact results. High productivity. Optimal planning. Effective cleaning.
Slide 22: ConnectedCooking
ConnectedCooking The connected kitchen made by RATIONAL
Slide 23: Convenience. Security. Inspiration.
Convenience. Security. Inspiration. Everything under control at all times. Push notification HACCP Updates Transfer cooking Remote programs access 26
Slide 24: Superb Services
Superb Services For more customer benefit › Competent Consulting › Personal Start-Training › Academy RATIONAL › ConnectedCooking › ChefLine®
Slide 25: For services
For services That inspire sustainably
Slide 26: RATIONAL Technical Service
RATIONAL Technical Service Always available for the customer › Original spare parts › Certified service partners › Professional installation › Worldwide service network
Slide 27: How do they do that?
How do they do that?
Slide 28: With employees
With employees That are committed and enthusiastic
Slide 29: With the U.i.U.-Principle
With the U.i.U.-Principle Making decisions, taking responsibility
Slide 30: With courage
With courage To rethink customer benefit
Slide 31: With 1,000 Chefs
With 1,000 Chefs Daily on the route 4 Köche, 4 Reisen 34
Slide 32: With young talents
With young talents 80 apprentices and students
Slide 33: With responsibility
With responsibility For human and nature
Slide 34: Good Results
Good Results Facts and figures
Slide 35: Important KPIs for Q1 2020
Important KPIs for Q1 2020 Overview -7 % Sales growth Gross profit EBIT- margin 56% 14% margin Equity New 79% ratio employees 52 Operative -22 7.5 Investments Cashflow mEuro mEuro 38
Slide 36: RATIONAL is the world market leader for combi-steamers
RATIONAL is the world market leader for combi-steamers Because we focus on what we do best RATIONAL Competitors (about 100 worldwide) Convotherm (Welbilt), Blodgett (Middleby), MKN, Lainox & Eloma (Ali Group), Electrolux, Alto-Shaam, Unox 39
Slide 37: Q1 2020 characterized by the Corona crisis
Q1 2020 characterized by the Corona crisis 7 % Sales revenue decline 844 778 702 613 564 497 194 181 +15% +8 % +14 % +9 % +15% +11 % +8 % +11 % +12 % -7 % 2014 2015 2016 2017 2018 2019 Q1 2019 Q1 2020 Sales revenue in mEuro Sales revenue growth in %
Slide 38: Nearly all regions affected by the crisis
Q1 2020 characterized by the Corona crisis Nearly all regions affected by the crisis Germany (-14 %) 12% North America 18% 47% (-9 %) Europe (-3 %) 13% Asia (-13 %) (excluding Germany) Latin America 5% (-3 %) Sales revenues in % of total Rest of the world 5% (Sales revenue growth in %) (+2 %) 41
Slide 39: Declining growth rates in both product groups
Q1 2020 characterized by the Corona crisis Declining growth rates in both product groups Sales revenues Combi-Steamer Sales revenues VarioCookingCenter® - 8% 179 164 +8 % 16 17 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Sales revenue in mEUR Sales revenue growth in %
Slide 40: EBIT margin declines in Q1 2020
EBIT margin declines in Q1 2020 EBIT margin at 14% +13 % +8 % +9 % +14 % +13 +10 % % +4 % 145 160 167 189 205 223 47 26 m€ 29 % 28 % 27 % -44 % 27 % 26 % 26 % 24 % 14 % 2014 2015 2016 2017 2018 2019 Q1 2019 Q1 2020 Change in % EBIT margin in % 43
Slide 41: Solid balance sheet provides security and flexibility
Solid balance sheet provides security and flexibility High equity ratio and liquidity Q1 2020 Q1 2019 Non-current assets 209 185 Inventories 84 63 Trade receivables 117 125 Other assets 116 102 Liquid funds 154 169 Total assets 680 644 Equity 534 491 Non-current liabilities 35 35 Current provisions
Slide 42: Dividend 2019: Focus on securing liquidity
Dividend 2019 Focus on securing liquidity Earnings per share › Due to the worldwide Corona crisis 13,84 15,09 12,58 reduction of the proposed dividend for 10,71 11,18 9,68 fiscal year 2019 from 10.70 to 5.70 2,20 euros per share 2,00 9,50 8,80 › General Meeting on 6th May 2020 8,00 7,50 cancelled, n
Slide 43: What may we expect in the future?
What may we expect in the future? 46
Slide 44: Our customers worldwide
Our customers worldwide Establishments with over 20 meals per service ~45% Restaurants with service ~40% Mass Catering ~5% ~10% Restaurants without service Retail Graphic refers to the number of sold appliances 47
Slide 45: Measures for our customers
Measures for our customers Our customers can rely on us – even in a crisis! 1. Our sales teams are available to our customers despite office closings and lock-downs, and are quick to contact on-site when there are explicit inquiries. 2. Our products can be ordered and delivered as usual. 3. We offer
Slide 46: Measures to protect the workforce
Measures to protect the workforce 1. Implementation of official requirements as the highest guideline. 2. New crisis-team "Health" for employees since outbreak in China. With worldwide outbreak strength and frequency increased. Business continuity management activated, communication skills ensured.
Slide 47: Measures to ensure the ability of delivery
Measures to ensure the ability the delivery in Landsberg and Wittenheim 1. No break in the supply chain to us and from us to our customers since the Corona outbreak in China. Devices, service parts, accessories, cleaners available. 2. Subcontractors in China: critical parts could be procured from ot
Slide 48: Measures to protect the company
Measures to protect the company 1. Cost reduction program active since early 2020 and tightened since March. 2. Hiring freeze. 3. Reduction of overtime, reduction of vacation 2019 - 2020 follows, depending on the country, unpaid vacation. 4. Examination and preparation of short-time work in order to
Slide 49: Forecast fiscal year 2020 and after
Forecast fiscal year 2020 and after 1. The last forecast of March 10, 2020 is withdrawn. 2. No forecast is currently possible. 3. We expect the situation in our customers to normalize six months after the local Corona outbreak. 4. Sufficient liquidity and high efficiency ensure the survival and prof
Slide 50: Success potential intact after the coronavirus
Success potential intact after the coronavirus › Major free market potential › Leader in terms of benefit, technology and the market › Global customer proximity › High level of customer satisfaction and high repeat purchase rates › Increased streamlining pressure › ConnectedCooking
Slide 51: Positive megatrends for RATIONAL
Positive megatrends for RATIONAL That is how the world of tomorrow lives › Worldwide growth of populaton › Varying catering loations › Increasing purchasing power in developing countries › Demand for healthier nutrition and a wider range of dishes › Increasing share of single households › Increasing
Slide 52: Investmentstory RATIONAL - Strength profile
Investmentstory RATIONAL- Strength profile › High brand awareness in professional kitchens › World market leader, free market potential › High customer satisfaction and loyalty › Global footprint of sales and service network, scalable business model › Flexible and lean production, low degree of vert
Slide 53: Long-term outperformance compared to benchmarks
Long-term outperformance compared to benchmarks Stock crash during financial crises stabilized in the following years
Slide 54: Investment recommendations: Broad Coverage
Investment recommendations Broad Coverage Median Fair Value = 440 euros Buy 3 Sell 6 Hold 5 Status: May 2020 57
Slide 55: Investor Relations Contact, Financial Calendar
Investor Relations Kontakt Financial Calendar Companie‘s information Financial calendar 2020 RATIONAL AG 24.03.2020 Financial KPIs Fiscal Year 2019 Siegfried-Meister-Straße 1 06.05.2020 Financial KPIs Q1 2020 86899 Landsberg am Lech tbd General Meeting 2020 Germany tbd RATIONAL-Analystday 2020 www.r
Slide 56: RATIONAL
RATIONAL