Slide 1: Half-Year Results 2023
Half-Year Results 2023 Media and Investor Presentation, July 20, 2023 Thomas Oetterli, Group CEO Kurt Ledermann, Group CFO
Slide 2: Agenda
Agenda 01 Market Environment 02 Financials 03 Next Level 04 Outlook Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 2
Slide 3: Key Messages
Key Messages First half of 2023 ‒ Sales significantly increased to CHF 758.2 million ‒ Order intake of CHF 325.0 million, order backlog of around CHF 1 100 million as of June 30, 2023 ‒ EBIT of CHF 25.2 million and net profit of CHF 13.3 million ‒ Sale of land in Winterthur ‒ “Next Level” Performanc
Slide 4: Agenda
Agenda 01 Market Environment 02 Financials 03 Next Level 04 Outlook Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 4
Slide 5: Indicative Market Development 2021 until 2023
Indicative Market Development 2021 until 2023 Market volume1 Comment ‒ In 2021 and HY1 2022 market is characterized by the catch-up demand after COVID and relocation from China to ROW, reaching an exceptionally high volume HY2 ‒ Starting from HY2 2022, market volume has significantly gone down ‒ Rev
Slide 6: Spinning Mill Utilization
Spinning Mill Utilization Operating rate of spinning mills are at low levels. Global1 Comment >80% ‒ Globally, operating rates are around 10% lower than in 2022 ‒ Slow recovery from a low base beginning of the ~70% year ‒ Rieter believes that demand for consumables, wear & tear and spare parts will
Slide 7: ITMA Milan 2023 a Great Success
ITMA Milan 2023 a Great Success Rieter Group unveiled its latest technology portfolio at ITMA Innovative solutions supporting technology leadership ‒ Air-jet spinning machine J 70 ‒ Ring spinning machine G 38 and winding machine Autoconer X6 with new Ring-Winder-Connect module ‒ Card C 81 with cardi
Slide 8: Agenda
Agenda 01 Market Environment 02 Financials 03 Next Level 04 Outlook Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 8
Slide 9: Key Figures – First Half of 2023
Key Figures – First Half of 2023 CHF million HY1 2022 HY1 2023 Comments Order intake 869.4 325.0 ‒ Market activities persistently low after the second half-year 2022 Sales 620.6 758.2 ‒ Growth of 22% driven by Business Group Machines & Systems ‒ Increase of gross profit due to margin improvement and
Slide 10: Order Intake by Business Group
Order Intake by Business Group CHF million Comment -63% 869 ‒ Market activities persistently low after the second half-year 2022, which led to a low order intake for the Business Group Machines & Systems ‒ Cancellations of around 5% are included in the 579 order intake HY1 2023 ‒ All regions with we
Slide 11: Sales by Business Group
Sales by Business Group CHF million Comment +22% 758 ‒ Very strong project execution in Business Group Machines & Systems 621 ‒ Some postponements as a result of the earthquake in Türkiye 522 384 ‒ Promising development of the Business Group After Sales ‒ Cross-functional task force to improve suppl
Slide 12: EBIT Development
EBIT Development CHF million Comment -5.9 ‒ Gross contribution improved significantly due to: -7.0 22.4 ‒ higher price quality -2.9 ‒ higher productivity and efficiency in project execution 25.2 ‒ strong focus on cost management 28.8 ‒ Alternative technical solutions to overcome material shortages s
Slide 13: Rieter Sold Land in Winterthur
Rieter Sold Land in Winterthur ‒ Rieter sold around 75 000 m2 that was no longer required for operations in Winterthur ‒ Sales price of CHF 96.0 million ‒ Expected positive impact on EBIT in second half- year 2023 of around CHF 70 to 75 million. ‒ Transfer of ownership is expected to take place in t
Slide 14: Agenda
Agenda 01 Market Environment 02 Financials 03 Next Level 04 Outlook Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 14
Slide 15: Rieter Shall Start a Performance Program Called “Next Level”
Rieter Shall Start a Performance Program Called “Next Level” The goal of the program is to: ‒ Strengthen sales excellence ‒ Sharpen customer focus ‒ Improve cost efficiency in production ‒ Optimize fixed cost structures Rieter intends to create the basis for providing an even more agile response to
Slide 16: Challenging Market Situation in the Last Two Years
Challenging Market Situation in the Last Two Years Severe global supply chain disruptions with rising material, energy, labor, and production costs Rieter share price CHF 250.00 230.00 Supply chain disruptions 210.00 190.00 Record order intake Rising inflation 170.00 Slowdown in order intake 150.00
Slide 17: Rieter New Machine End Markets Are Highly Volatile
Rieter New Machine End Markets Are Highly Volatile Creating significant challenges for the operating business Cyclicality of Rieter new machine business HIGH HIGH MID MID LOW LOW Situation Consequence ‒ Very cyclical market for short-staple fiber spinning machines ‒ High dependency on cyclicality of
Slide 18: Weak Historical Profitability in Any Market Scenario
Weak Historical Profitability in Any Market Scenario Sales grew significantly in last two years. However, EBIT remained on low level. Sales, EBIT1 Sales EBIT HIGH MID LOW ? 4% 5% 2% -1% -15% 2018 20191 2020 2021 2022 2023 2024 forecast first indication 1 EBIT excluding proceeds of CHF 94.5 million f
Slide 19: Rieter Shall Start a Performance Program Called “Next Level”
Rieter Shall Start a Performance Program Called “Next Level” Next Level shall be a performance program, focusing on key performance potentials Topic Measures ‒ Increase After Sales and Components sales Sales Excellence ‒ Adapt sales process to capture market opportunities ‒ Push Net Promoter Score ‒
Slide 20: Next Level Cost and Impact
Next Level Cost and Impact Next Level shall be a performance program, focusing on key performance potentials Topic Estimated impact Costs ‒ One-time costs of CHF 45 to 50 million expected in 2023 Timing ‒ Most of the program initiatives shall be implemented in 2023 Return ‒ Expected benefit of aroun
Slide 21: Expected Next Level Capacity Adjustments
Expected Next Level Capacity Adjustments Overhead and volume-dependent net capacity reductions planned FTE1 excl. temporaries 5’555 ~300 400-600 4’600-4’800 HY1 2023 Reduction in overhead Volume-dependent adjustments Planned FTE base2 1 FTE = Full time equivalent 2 Most of the program initiatives sh
Slide 22: Next Level Shall Create Long-Term Value for Stakeholders
Next Level Shall Create Long-Term Value for Stakeholders Next Level EBIT margin ambition after full implementation CHF million ~12% HIGH at ~1’600 sales ~8% ~8% MID at ~1’300 sales ~4% ~4% 0% LOW at ~1’000 sales Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 22
Slide 23: Agenda
Agenda 01 Market Environment 02 Financials 03 Next Level 04 Outlook Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 23
Slide 24: Outlook
Outlook ‒ Given the economic situation and the cyclical market weakness, Rieter continues to expect below-average demand for new equipment in the coming months. A revival is not expected until the fourth quarter of 2023 at the earliest. ‒ Rieter also believes that demand for consumables, wear & tear
Slide 25: Appendix
Appendix Half-Year Results 2023 . Media & Investor Presentation . July 20, 2023 Page 25
Slide 26: Sales Development by Region
Sales Development by Region CHF million Comment +22% 758 ‒ All regions except Europe and Türkiye show solid top-line growth 621 1 227 1 185 84 77 132 69 79 129 106 84 45 64 87 13 HY1 2022 HY1 2023 Asian countries1 China India Türkiye North and South America Europe Africa 1 Excluding China, India, Tü
Slide 27: Changes in Workforce
Changes in Workforce FTE1 Comment +2% 6’786 ‒ Strong focus on efficiency and productivity gains 6’648 (22% higher sales with 2% higher workforce) 1’169 1’231 5’479 5’555 June 30, 2022 June 30, 2023 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including temporary employe
Slide 28: Order Intake by Business Group
Order Intake by Business Group CHF million January – June January – June Difference Difference in 2022 2023 local currency Rieter 869.4 325.0 -63% -61% Machines & Systems 579.3 111.4 -81% -80% Components 180.9 131.0 -28% -26% After Sales 109.2 82.6 -24% -21% Half-Year Results 2023 . Media & Investor
Slide 29: Sales by Business Group
Sales by Business Group CHF million January – June January – June Difference Difference in 2022 2023 local currency Rieter 620.6 758.2 22% 25% Machines & Systems 383.8 521.9 36% 39% Components 159.9 143.9 -10% -8% After Sales 76.9 92.4 20% 24% Half-Year Results 2023 . Media & Investor Presentation .
Slide 30: Sales by Region
Sales by Region CHF million January – June January – June Difference Difference in 2022 2023 local currency Rieter 620.6 758.2 22% 25% Asian countries1 184.7 227.0 23% 23% China 76.8 83.7 9% 17% India 68.6 131.5 92% 102% Türkiye 129.4 78.5 -39% -39% North and South America 84.0 105.5 26% 27% Europe
Slide 31: Balance Sheet − Key Figures
Balance Sheet − Key Figures Balance sheet and major Key Performance Indicators stable CHF million 31/12/2022 30/6/2023 ‒ Liquid funds remain at high level Liquid funds 176.1 155.1 ‒ Net debt stable at high level ‒ Net working capital stable because of the Net debt -285.6 -298.9 continuously high ord
Slide 32: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 30/06/2022 31/12/2022 30/06/2023 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 492 731 4 479 635 4 491 814 Average shares (of period) 4 494 683 4 491 246 4 487 113 Share price (
Slide 33: Change in the Group Executive Committee
Change in the Group Executive Committee The Board of Directors of Rieter Holding Ltd. has appointed Oliver Streuli to the Group Executive Committee of Rieter Group as Chief Financial Officer, effective August 1, 2023. Oliver Streuli was from June 2019 until April 2023 CEO at PCS Holding AG in Frauen
Slide 34: Financial Calendar
Financial Calendar Investor Update 2023 October 20, 2023 Publication of sales 2023 January 24, 2024 Deadline for proposals regarding the agenda of the Annual General Meeting February 23, 2024 Results press conference 2024 March 13, 2024 Annual General Meeting 2024 April 17, 2024 Semi-Annual Report 2
Slide 35: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever