Feintool International Holding Ag · SIX:FTON
Feintool International — FY2019 Earnings Presentation
36 slides from Feintool International's earnings presentation, Mar 3, 2020
Slide 1: Welcome to the Annual Media Conference Financial Year 2019
Feintool Group Welcome to the Annual Media Conference Financial Year 2019
Slide 2: Agenda
AGENDA Market Environment, Review Knut Zimmer Financial Results Thomas Bögli Outlook Knut Zimmer Questions and Answers All Feintool Annual Report Presentation 3 March 2020 1
Slide 3: Market Environment and Review
Market Environment and Review
Slide 4: Market trend led to a sales decline
MARKET ENVIRONMENT Market trend led to a sales decline Global automotive market down (5.8% according to IHS), China heavily affected (down 8.5%) Feintool was able to hold its market shares stable Political instability, such as the trade war between the USA and China, as well as uncertainty abo
Slide 5: Hybrid drive establishing in the growing automotive market
GLOBAL CAR PRODUCTION Hybrid drive establishing in the growing automotive market Number of vehicles produced up to 3.5 t total weight, worldwide Passenger car production growing steadily with a trend +2.8% 120 103 105 107 109 2019: towards electromobility 97 100 6% 6% 91 million 94 14% Passenger
Slide 6: Sustained trend towards automated mechanical systems in Europe
RELEVANT TRENDS Sustained trend towards automated mechanical systems in Europe Transmission production in Europe, Transmission production in North America, Transmission production in Asia, in millions of units, light vehicles in millions of units, light vehicles in millions of units, light vehicles
Slide 7: Trend for electrified powertrains but regional differences
RELEVANT TRENDS Trend for electrified powertrains but regional differences Number of vehicles produced Number of vehicles produced Number of vehicles produced up to 3.5 t total weight, Europe up to 3.5 t total weight, North America up to 3.5 t total weight, Asia 22 22 23 23 23 13 14 15 15 15 47 46 4
Slide 8: We process steel sheets and are partners for high precision and high-volume orders
FEINTOOL KOMPETENZEN We process steel sheets and are partners for high precision and high-volume orders Feintool Annual Report Presentation 3 March 2020 7
Slide 9: Forming capacities in China expanded for nominations received
HIGHLIGHTS Forming capacities in China expanded for nominations received Tianjin plant: Specialization in complex formed parts Doubling of production capacity High throughput at the plant thanks to new 2020 nominations Expansion of the production hall Another press line added to expand parts 2
Slide 10: Expansion of Tianjin production plant
HIGHLIGHTS Expansion of Tianjin production plant Feintool Annual Report Presentation 3 March 2020 9
Slide 11: 2019 nominations by region and application
HIGHLIGHTS 2019 nominations by region 2019 nominations by application CHF 60 million acquired annual sales E-Sheet Others 2% 2% Engine Asia 12% Seat 18% AWD Europe 4% USA 50% 38% AT-Transmission Jessen 62% 2% Europe Jessen USA Asia Seat Transmission AWD Engine E-Sheet Others Feintool Annual Report P
Slide 12: Initial success with rotors and stators
HIGHLIGHTS Initial success with rotors and stators Preproduction order received from a European OEM for in-tool lamination core stack components for automotive main drives Prototype orders received from several OEMs Due to high demand for electrolamination stamping components in the growth mar
Slide 13: New FB one press generation undergoing field tests
HIGHLIGHTS New FB one press generation undergoing field tests First FB one handed over to production plant in Lyss in the fall of 2019 Test results confirm expectations of the new press First external customer supplied, further customer projects currently scheduled for delivery Complete seri
Slide 14: Start of field operation of the first FB one fineblanking press
HIGHLIGHTS Start of field operation of the first FB one fineblanking press at the Lyss production plant Feintool Annual Report Presentation 3 March 2020 13
Slide 15: International exchange of knowledge to strengthen individual plants
EMPLOYEES International exchange of knowledge to strengthen individual plants Feintool Annual Report Presentation 3 March 2020 14
Slide 16: Financial Results
Financial Results
Slide 17: Acquisitions are part of growth strategy
INITIAL REMARK Acquisitions are part of growth strategy On 31 July 2018, Feintool acquired Stanzwerk Jessen GmbH (subsequently renamed: Feintool System Parts Jessen GmbH) as basis for the new business unit «electrical metal sheet stamping» In 2019 Feintool System Parts Jessen GmbH reached sales
Slide 18: Market uncertainties cause a 6.9% sales drop
SALES Market uncertainties cause a 6.9% sales drop Sales of CHF 632.7 m in m CHF Net sales Currency effects impact sales by 1.1 percentage points; 750 500 acquisition effect Jessen increases sales by 3.4 percentage 250 points; the organic sales decline in local currency is therefore 0 9.2% 2017
Slide 19: EBITDA drops 24.6% as a result of lower sales
EBITDA EBITDA drops 24.6% as a result of lower sales EBITDA totaled CHF 67.7 m EBITDA EBITDA-Marge EBITDA margin in m CHF EBITDA margin drops to 10.7% 100.0 13.6% 13.2% 10.7% Sales drop in the capital goods segment impact the result 50.0 10.0% heavily 0.0 0.0% In the parts area, start-up cos
Slide 20: EBIT margin drops to 3.0%
EBIT EBIT margin drops to 3.0% EBIT drops to CHF 18.9 m Sales decline in both segments impact earnings due to underutilization significantly in m CHF EBIT EBIT-Marge EBIT margin Cost adjustments to current capacity needs were delayed due to 60.0 7.6% 7.0% 10.0% 40.0 high volatility 3.0% 5.0% 2
Slide 21: Net profit drops to CHF 10.7 m
RESULT Net profit drops to CHF 10.7 m in Mio. CHF Financial costs were similar 20 18.9 to previous year Taxes decrease due to the 15 3.7 profit decline; tax rate has 10.7 slightly improved to 29.9% 10 4.5 Net profit margin of 1.7% 5 Proposed dividend totaling CHF 1.00 per share (gross) 0 EBI
Slide 22: Fineblanking Technology: Sales dropped to CHF 74.7 m
FINEBLANKING TECHNOLOGY Sales dropped to CHF 74.7 m EBIT slightly positive at CHF 0.7 m or 0.9% EBIT margin in m CHF Net salesDritte Umsatz third Net salesICIC Umsatz Research and Development expenditure unchanged at CHF 4.4 120 80 m as an investment in the future 40 Order intake drops signifi
Slide 23: System Parts: Sales decline significantly less than the market
SYSTEM PARTS Sales decline significantly less than the market Sales fell by 2.2% to CHF 573.9 m, with CHF 22.9 m coming in m CHF Net sales from the acquisition; organically, the decrease in local currency 600 was 4.9% 580 EBIT falls to CHF 23.2 m, EBIT margin to 4.0% 560 Falling sales and oper
Slide 24: Balance sheet total unchanged at CHF 706.3 m
BALANCE SHEET Balance sheet total unchanged at CHF 706.3 m Assets 31.12.2019 31.12.2018 Differenz Current assets decrease by in Mio. CHF in Mio. CHF in Mio. CHF Cash and cash equivalents 43.5 30.9 12.6 2.3% to CHF 233.1 m Trade and other receivables 85.0 101.0 -16.0 Fixed assets increased by Inv
Slide 25: Healthy balance sheet even in a difficult environment
BALANCE SHEET Healthy balance sheet even in a difficult environment Liabilities 31.12.2019 31.12.2018 Differenz Equity of CHF 309.9 m or in Mio. CHF in Mio. CHF in Mio. CHF 43.9% Interest bearing liabilities 184.2 178.7 5.5 Other liabilities 212.2 205.8 6.4 Thanks to improved net Shareholder equ
Slide 26: High equity-ratio of 43.9%
EQUITY High equity-ratio of 43.9% in Mio. CHF 340 10.7 Equity is reduced by CHF 320 320.8 8.3 10.9 m to CHF 309.9 m 9.8 309.9 300 4.4 0.9 Currency differences and revaluation of pension funds 280 obligations are the main 260 reason for the decrease 240 Operating earnings and 220 dividend payme
Slide 27: Cash flow from operating activities increases significantly to CHF 82.0 m
CASH FLOW Cash flow from operating activities increases significantly to CHF 82.0 m in m CHF 2018 2019 Significantly less investment 92,0 than in previous years 25,0 68,1 13,9 This means that the operating business generates more funds 51,8 than was needed for investments 121,0 30,2 New ABS fi
Slide 28: Outlook
Outlook
Slide 29: Open applications for technology solutions
STRATEGY Open applications for technology solutions Expand the limits of fineblanking, forming, and electrolamination stamping technologies for solutions of tomorrow as a company driving innovation Follow customers into new markets in line with the concept of a strong, long-term regional presenc
Slide 30: Outlook: Key projects
OUTLOOK Key projects Market position Innovations Organization/efficiency Increase content per vehicle Ramp up activities in fuel Cash flow optimization and Expand activities in the field cells/bipolar plates reduction in capital of electric drives and hybrids expenditures where appropriate
Slide 31: New Board Members: Dr.-Ing. Marcus Bollig
NEW BOARD MEMBERS Dr.-Ing. Marcus Bollig Born in Germany in 1967 Degree in mechanical engineering Joined BMW AG in 1998 in the field of drive development Active in the development of four-cylinder engines from 1998 to 2011 Senior department head on the New Technologies Electrification proj
Slide 32: New Board Members: Christian Mäder
NEW BOARD MEMBERS Christian Mäder Born in Switzerland in 1969 Certified expert in accounting and controlling Initially held positions in management and finance at companies like KPMG and the Colenco Group (Motor-Columbus Group) Served in various finance and management roles at the Swisslog G
Slide 33: Feintool expects the automotive market to grow over the medium and long term
GUIDANCE Feintool expects the automotive market to grow over the medium and long term The economic and political uncertainties will continue during the 2020 financial year, yet will have a different impact in different regions, which is why we expect the global market situation to remain complex.
Slide 34: Upcoming events
AGENDA Upcoming events 30 April 2020 New date: General Meeting 14 August 2020 2020 half-year report 02 March 2021 Annual Media Conference Financial Year 2020 Feintool Annual Report Presentation 3 March 2020 33
Slide 35: Thank you for your time.
Feintool Group Thank you for your time.
Slide 36: Disclaimer
DISCLAIMER Feintool is confirming its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for t
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