Slide 1: Welcome to the Media and Analysts Conference
Welcome to the Media and Analysts Conference Zurich, 6 March 2015 berthiez bumotec dörries droop+rein heckert scharmann sip starrag ttl wmw Agenda Overview Walter Fust, Chairman Markets and technologies Walter Börsch, CEO Financial review Gerold Brütsch, CFO Outlook Walter Börsch, CEO Questions and
Slide 2: Legal note
Legal note The economic projections and predictions contained in this presentation relate to future facts. Such projections and predictions are subject to risks, uncertainties and changes which cannot be foreseen and which are beyond the control of the publisher. Starrag Group is therefore not in a
Slide 3: Slight decline in order intake – Operating income maintained – Considerably higher net profit
Slight decline in order intake – Operating income maintained – Considerably higher net profit Order intake down by 4 % to CHF 407 million – Sales up by 1 % to CHF 393 million EBIT up 1 % to CHF 19 million – Operating margin 4.9 % Net profit up 7 % to CHF 14.4 million – Profit per share CHF 4.26 Soli
Slide 4: Share information / Main developments in 2014
Share information 2014 2013 Earnings per share (CHF) 4.26 3.97 Profit distribution per share (CHF) 1) 1.80 1.80 Share price at year end (CHF) 64.50 75.75 Market capitalization (CHF million) 217 255 - as % of shareholders‘ equity 111 % 132 % Total shareholder return -12.5 % 25.9 % 1) Withholding tax
Slide 5: Reorganization targeting strategic market segments
Reorganization targeting strategic market segments 8 Agenda Overview Walter Fust, Chairman Markets and technologies Walter Börsch, CEO Financial review Gerold Brütsch, CFO Outlook Walter Börsch, CEO Questions and answers 9 5
Slide 6: Order intake slightly down – order backlog up again
Order intake slightly down – order backlog up again CHF m +17 % -4 % 450 425 407 400 364 348 350 300 288 275 250 238 239 200 188 150 104 100 50 0 2010 2011 2012 2013 2014 Order intake Order backlog 10 Order intake by region: for the first time one third from Asia CHF m 450 24 400 42 America 77 10 %
Slide 7: Order intake by industry / Trends by industry
Order intake by industry CHF m 450 400 350 Aerospace 174 166 109 41 % 300 108 250 20 16 19 Energy 59 4% 200 46 137 150 164 154 Industrial 19 95 38 % 100 53 50 86 98 Transport 71 68 71 18 % 0 2010 2011 2012 2013 2014 12 Trends by industry Aerospace Energy Transportation Industrial 35 % 7% 23 % 35 % S
Slide 8: EBIT margin peer group / AMB trade fair
EBIT margin peer group Starrag GF MT Hardinge DMG Makino Okuma Hermle Mikron Tornos (CH) (CH) (US) (DE) (JP) (JP) (DE) (CH) (CH) 25% 20% 18.4% 15% 10% 7.1% 7.8 5.9% 4.9% 5.7% 5% 1.1% 1.3% -0.1% 0% -5% -10% -15% -20% -25% -30% 2012 2013 2014 (2014: DMG = Jan-Sep; Makino, Okuma = Apr-Dec; Hermle, Mikr
Slide 9: The Starrag Dengeling Process / Open House at Heckert
Creative Thinking - The Starrag "Dengeling" Process Innovation award from German trade magazin MM Maschinenmarkt at AMB fair in Stuttgart “Dengeling” is a well-known process to harden and sharpen cutting edges (e.g. on a scythe) The process is industrialised by Starrag for blade and mold & die manuf
Slide 10: New collaboration with Hongkong Polytechnic University
New collaboration with Hongkong Polytechnic University Boeing / ASRC Starrag Group – Tier 2 Member Hong Kong Polytechnic Development of improved University aviation service technologies and processes Further enhances the Starrag Group collaboration with leading universities such as: Boeing / AMRC RW
Slide 11: Heckert training award / New Bumotec factory on track
Heckert awarded as a model training organisation SACHSENMETALL-Forum Dresden: second best training center in the federal state of Saxony in 2014 Criteria: Trainee ratio Trainee support within the scope of professional training and acedemic education School sponsorship programs Mentoring during train
Slide 12: Order intake: Strong Q4 2014
Agenda Overview Walter Fust, Chairman Markets and technologies Walter Börsch, CEO Financial review Gerold Brütsch, CFO Outlook Walter Börsch, CEO Questions and answers Quelle/Legende 22 Order intake: Strong Q4 2014 CHF m 140 560 120 480 425 407 348 4 quarter rolling 100 400 364 quarterly 80 320 60 1
Slide 13: Income statement to EBIT / Main drivers of EBIT development
Income statement to EBIT CHF m Income Expense 450 4.9 % 4.9 % 400 19 19 EBIT 350 Sales revenue 300 158 +4.3% 165 Material expense 250 Personnel expense 200 391 +0.6% 393 Operating expense Depreciation 150 148 -3.2% 143 Other 100 EBIT 50 55 +3.0% 57 0 4 6 13 14 2013 2014 2013 2014 EBIT unchanged: Nor
Slide 14: Significant increase in net income / Balance sheet remains strong
Significant increase in net income CHF m 2014 2013 EBIT 19.1 19.0 Interest -0.3 -0.3 FX result 0.5 0.3 Other -1.1 -1.0 Earnings before tax EBT 18.2 18.0 Income tax -3.8 -4.5 Net income EAT 14.4 13.5 Tax rate 20.7 % 25.2 % Earnings per share 4.26 3.97 Net income up by 7.0 % – Earnings per share up by
Slide 15: Solid shareholders’ equity base
Solid shareholders’ equity base CHF m 220 210 14.4 -3.3 -6.1 -2.8 200 195.9 193.6 190 180 170 160 150 31.12.2013 Net income Pension Dividend Other 31.12.2014 benefit paid obligation Net equity reduced by increase in pension benefit obligation, caused by low interest levels despite full insurance cov
Slide 16: Cashflow 2014 impacted by pre-financing of new orders
Cashflow 2014 impacted by pre-financing of new orders CHF m 40 33.2 -18.1 30 20 -10.6 10 2.9 7.3 -14.6 -7.2 -11.1 0 -6.1 3.2 -1.0 -10 -20 EBITDA Orders in Inventory Other Cash flow CapEx Free Dividend Short- Other Change process from Cash term in cash Operations flow Financing Free cashflow impacted
Slide 17: Bottom-line increase of Earnings per share by 7.3 %
Bottom-line increase of Earnings per share by 7.3 % – Solid base for future success Order intake down by 4 % to CHF 407 million – Sales up by 1 % to CHF 393 million EBIT up 1 % to CHF 19 million – Operating margin 4.9 % Net profit up 7 % to CHF 14.4 million – Profit per share CHF 4.26 Solid balance
Slide 18: Economic outlook / Machine tool industry Germany
Economic outlook Global purchasing managers index positive Business climate Germany significantly improved VDW prognosis +3 % in German Machine tool production 2015 Impact of CHF appreciation on Swiss plants remains uncertain Source: VDW. 34 Machine tool industry Germany (cutting) [Index, nominal –
Slide 19: Cecimo MTIX confirms outlook / Focus on all spices for success
Cecimo MTIX confirms outlook 300 250 200 150 100 50 CECIMO MTIX 0 12mths MTIX moving average 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Note: MTIX is an index based on the capitalization of 23 leading, publicly listed machine tool producing companies. There is a 73% correlation between M
Slide 20: Measures to mitigate impact of strong CHF / Financial targets
Measures to mitigate impact of strong CHF Material Operating cost Re-negotation of supplier Even tighter cost control contracts Review all CHF expenses Personnel Mid-term measures Productivity increase, continuing Further optimiation of cost base improvement Increasing sourcing share in Euro Hiring
Slide 21: Corporate calendar / Contact
Corporate calender / Contact 24.04.2015 Annual general meeting in Rorschach 07.05.2015 Key figures Q1 2015 24.07.2015 Letter to shareholders on H1 2015 results 03.11.2015 Key figures Q3 2015 29.01.2016 Initial information on 2015 results 04.03.2016 Presentation of 2015 results for analysts and media
Slide 22: We look forward to your questions!
We look forward to your questions! 42 We would be pleased to invite you to a buffet lunch. Thank you for your interest! berthiez bumotec dörries droop+rein heckert scharmann sip starrag ttl wmw 22
Slide 23: High-precision machine tools for greater productivity
High-precision machine tools for greater productivity Starrag Group is a global technology leader in manufacturing high-precision machine tools for milling, turning, boring and grinding workpieces of metallic, composite and ceramic materials. Principal customers are internationally active companies
Slide 24: World machine tool consumption / Organization focussed on target markets
World machine tool consumption 2012 to 2014 (Status Feb-2014) USD billion CN US DE KR JP MX IT RU Total market volume 2014: USD 54 billion BR Rank 1 to 15 are 92 % of global market TW IN TR CA CH FR 0 2 4 6 8 10 12 14 Note: Data for China has been reduced to account for the high percentage of non-CN
Slide 25: Strong brands enhancing the overall potential for success
Strong brands enhancing the overall potential for success berthiez bumotec Each brand with high level dörries of customer trust in its specific application area droop+rein Innovative technologies of heckert each brand radiate across all group brands scharmann Starrag Group Collaboratively fulfilling
Slide 26: Multi-niche strategic positioning / Global presence
Multi-niche strategic positioning Starrag Starrag Group Number of players High competition intensity Gantries and boring mills Horizontal machining centers Precisely productive Vertical machining centers 100 240 320 400 500 630 800 1000 1250 1600 1800 2100 > 2500 Machine / workpiece size 50 Global p
Slide 27: Our pedigree / Share details
Our pedigree, 150 years tradition for innovation Dörries SIP Scharmann Heckert Droop+Rein Starrag Berthiez Bumotec TTL Mönchen- Geneva Chemnitz Bielefeld Rorschach St. Etienne Sâles Aylesbury gladbach 1862 1884 1885 1890 1897 1916 1973 1987 Scientific Textile Bicycle Machine Textile Machine Machine
Slide 28: Top management
Top management Walter Fust (1941, Swiss) Walter Börsch (1959, German) Gerold Brütsch (1966, Swiss) has been a member of Starrag Group Holding has been CEO of Starrag Group since April 2014 has been Chief Financial Officer (CFO) of AG’s Board of Directors since 1988 and its and since January 2014 is