Georg Fischer Ag · SIX:GF
Georg Fischer — H1 2021 Earnings Presentation
33 slides from Georg Fischer's earnings presentation, Jul 21, 2021
Slide 1: Mid-Year Report 2021 – Accelerating growth
Schaffhausen, 21 July 2021 Mid-Year Report 2021 – Accelerating growth Andreas Müller, Mads Joergensen
Slide 2: Strong performance – accelerated growth
GF Corporation Strong performance – accelerated growth Sales at CHF 1'835 million (+20% organically), supported by strong global markets Operating result increased 120% to CHF 141 million (compared to previous years EBIT before one-offs), with a strong EBIT margin of 7.7% Net profit shareholde
Slide 3: Strong recovery in all divisions
GF Corporation Strong recovery in all divisions (Sales in CHF million) H1 2020 Organic H1 2021 +20% +16% 1'835 983 1'528 845 +38% +11% 459 393 328 355 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 3|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 4: Resilient GF Piping Systems – catch-up effect at GF Casting Solutions
GF Corporation Resilient GF Piping Systems – catch-up effect at GF Casting Solutions Monthly organic sales development H1 2021 – year-over-year comparison Divisions Selected countries 240% 240% 220% 220% 200% 200% 180% 180% 160% 160% 140% 140% 120% 120% 100% 100% 80% 80% Jan Feb Mar Apr May Jun Jan
Slide 5: Strong organic growth in all regions
GF Corporation Strong organic growth in all regions (Sales in CHF million) Organic Americas (19%) Europe (45%) Asia (31%) +16% +18% +23% 348 834 565 309 456 686 H1 H1 2020 2021 H1 H1 2020 2021 Rest of world (5%) H1 H1 2020 2021 +34% 77 88 H1 H1 2020 2021 5|33 Schaffhausen, 21 July 2021 | Mid-Year Re
Slide 6: Significant increase in profitability
GF Corporation Significant increase in profitability (EBIT margin in %) Strategic objectives in 2025 H1 2020 H1 2021 13.0 13~15% 11.1 9~11% 9~11% 7.7 8~10% 4.2 * 2.8 2.3 0.3 -7.6 * GF GF Piping Systems GF Casting Solutions GF Machining Solutions * before one-offs in H1 2020 6|33 Schaffhausen, 21 Jul
Slide 7: Implementation of Strategy 2025 on track
GF Corporation Implementation of Strategy 2025 on track GF is a sustainability and innovation leader providing superior customer value Drive profitable growth Increase robustness Evolve culture Sustainability E-mobility Live remote assistance Water treatment Culture workshops Process automation Medt
Slide 8: ESG
ESG 8|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 9: Sustainability drives GF's performance
GF Corporation Sustainability drives GF's performance Sales of products and Total GHG emissions GHG emissions by source² solutions with social or (market-based)¹ in % environmental benefits in 1’000 tons CO2e in % 170 154 PVDF applications 137 Off-shore wind park Dogger Bank in North Sea 58% 58% 52%
Slide 10: GF Piping Systems: Very successful first semester with high utilization
GF Piping Systems Very successful first semester with high utilization in almost all plants Sales of CHF 983 million, organically +16% Operating result at CHF 128 million, EBIT margin of 13% Focusing on solutions with sustainability benefits to serve higher value businesses, e.g. new full bore
Slide 11: Strong acceleration in key segments
GF Piping Systems Strong acceleration in key segments Sales growth H1 2021 +18% +13% +18% Microelectronics and Data center Water treatment Building technologies 11|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 12: Innovative solutions for attractive sustainable markets
GF Piping Systems Innovative solutions for attractive sustainable markets Weld Bead Inspection Tool Non-destructive testing (Tahiti) Photovoltaic (Source: Fraunhofer ISE) 12|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 13: GF Casting Solutions with turnaround
GF Casting Solutions Ongoing recovery in the automotive sector – GF Casting Solutions with turnaround Sales of CHF 459 million, organically +38% Operating result at CHF 13 million (EBIT margin of 2.8%), versus a loss before one-offs of CHF 25 million in the first half of 2020 Metal price incre
Slide 14: Attractiveness of strategic key segments confirmed
GF Casting Solutions Attractiveness of strategic key segments confirmed Sales growth H1 2021 +69% +57% +38% E-vehicle components Body and structure components Industrial gas turbines (Source: General Electrics) 14|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 15: EV sales in EU and China at comparable market sizes
GF Casting Solutions EV sales in EU and China at comparable market sizes EV sales (in 1‘000 units) until May 2021 PHEV (Plugin Hybrid E-vehicle) BEV (Battery E-vehicle) 300 300 300 12% 163k 90k (196k 250 250 250 units units) units 200 200 200 150 150 150 42k units 100 100 100 50 50 50 0 0 0 2019 202
Slide 16: Attractiveness of strategic key segments confirmed
GF Casting Solutions Attractiveness of strategic key segments confirmed Sales growth H1 2021 +69% +57% +38% E-vehicle components Body and structure components Industrial gas turbines (Source: General Electrics) 16|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 17: Healthy rebound in the global machine tool industry
GF Machining Solutions Healthy rebound in the global machine tool industry Sales of CHF 393 million, organically +11% Operating result at CHF 9 million, EBIT margin of 2.3% First half sales affected by subdued order intake in 2020 Strong book-to-bill ratio at 1.2, orders on hand 59% above pr
Slide 18: Rebound in many key segments, Aerospace still lagging
GF Machining Solutions Rebound in many key segments, Aerospace still lagging Sales growth H1 2021 +29% +40% +32% -21% ICTMedtech Medtech Mobility Aerospace 18|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 19: Digitalization and innovation remain the key drivers
GF Machining Solutions Digitalization and innovation remain the key drivers New Laser 2500: optimal running cost per sqm for the most demanding textures on large LRA (Live Remote Assistant) on HMI (Human Machine Interface) molds in the highest quality 19|33 Schaffhausen, 21 July 2021 | Mid-Year Repo
Slide 20: Consolidated financial statements
Consolidated financial statements Mads Joergensen, CFO 20|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 21: Order intake per division
GF Corporation Order intake per division (CHF million) H1 2021 H1 2020 Growth Organic ∆% growth* GF Piping Systems 1'115 859 29.8% 29.8% GF Casting Solutions 462 255 80.8% 79.1% GF Machining Solutions 471 326 44.5% 45.2% Corporation 2’048 1’440 42.2% 41.9% * Adjusted for changes in scope of consolid
Slide 22: Sales per division
GF Corporation Sales per division (CHF million) H1 2021 H1 2020 Growth Organic ∆% growth* GF Piping Systems 983 845 16.3% 16.4% GF Casting Solutions 459 328 39.9% 38.3% GF Machining Solutions 393 355 10.7% 11.4% Corporation 1’835 1’528 20.1% 20.0% * Adjusted for changes in scope of consolidation and
Slide 23: Sales H1 2020 versus H1 2021
GF Corporation Sales H1 2020 versus H1 2021 (CHF million) 307 (+20.1%) 1′835 +20.0% 305 +0.7% 1′528 11 -9 -0.6% H1 2020 Acquisition FX Organic Growth H1 2021 23|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 24: EBIT and EBIT margin per division
GF Corporation EBIT and EBIT margin per division EBIT CHF million EBIT margin % H1 2021 H1 2020 H1 2021 H1 2020 GF Piping Systems 128 94 13.0% 11.1% GF Casting Solutions 13 -25* 2.8% -7.6%* GF Machining Solutions 9 1 2.3% 0.3% Corporation 141 64* 7.7% 4.2%* * before one-offs in H1 2020 (one-offs CHF
Slide 25: FX development H1 2021
GF Corporation FX development H1 2021 (CHF million) Per division: Sales EBIT Per currency: Sales EBIT Average rates H1 20 H1 21 ∆ EUR +18.3 -0.0 1.06 1.10 +2.9% USD -21.7 -8.1 0.97 0.91 -6.0% GF Piping Systems -12.0 -3.8 CNY +13.8 1.8 0.14 0.14 +2.2% GF Casting Solutions +5.7 +1.5 TRY -13.2 -1.0 0.1
Slide 26: Income statement
GF Corporation Income statement (CHF million) H1 2021 in % H1 2020 in % Growth % Sales 1’835 100 1’528 100 20 Gross value added 705 38 554 36 27 Personnel expenses -496 -27 -436 -29 14 EBITDA 209 11 118 8 77 Depreciation, amortization -68 -4 -61 -4 11 Operating result (EBIT) before one-offs 141 8 64
Slide 27: Assets and liabilities / equity
GF Corporation Assets and liabilities / equity (CHF million) 30 June 2021 % 31 December 2020 % Cash and cash equivalents 778 841 Trade accounts receivable 705 550 Inventories on stock 718 638 Other current assets 126 113 Current assets 2’327 64 2’142 62 Property, plant, and equipment and investment
Slide 28: Free cash flow
GF Corporation Free cash flow (CHF million) H1 2021 H1 2020 EBITDA 209 118 Changes in net working capital -135 -126 Income taxes/interest paid -34 -25 Other changes 19 30 Cash flow from operating activities 59 -3 Additions to property, plant, and equipment -61 -70 Cash flow from acquisitions -30 -6
Slide 29: Key figures at a glance
GF Corporation Key figures at a glance H1 2021 H1 2020 Net debt in CHF million 206 420 Net debt/EBITDA (multiple) 0.53x 1.52x Equity ratio in % 39.4 36.9 ROIC in % GF Corporation 15.8 6.3* GF Piping Systems 31.6 20.8 GF Casting Solutions 4.4 -6.8* GF Machining Solutions 6.6 0.5 Return on equity in %
Slide 30: Outlook
Outlook Andreas Müller, CEO 30|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
Slide 31: Rebound expected to continue in 2021
GF Corporation Rebound expected to continue in 2021 Double digit sales growth for the full year 2021 Significant increase in profit expected Supply chain and raw material challenges remain as the biggest uncertainties First year of Strategy 2025 31|33 Schaffhausen, 21 July 2021 | Mid-Year Repo
Slide 32: Thank you
Thank you 32|33 Schaffhausen, 21 July 2021 | Mid-Year Report 2021
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