Accelleron Industries AG · SIX:ACLN
Accelleron Industries — H1 2023 Earnings Presentation
22 slides from Accelleron Industries's earnings presentation, 2023
Slide 1: ief Executive Officer
ief Executive Officer t, Chief Financial Officer 18 Switzerland Ltd, All tgs ved
Slide 2: Important notices
Important notices This presentation has been prepared for information purposes only and may in Particular not be used in making any investment decision. Copies of this presentation May not be sent to countries, or distributed in or sent from countries, in which this is barred ‘or prohibited by law.
Slide 3: Agenda
Agenda 3 H1 Results Media and Investor Conference 2023 Aj/
Slide 4: Half-Year Results Conference 2023 - Agenda
Half-Year Results Conference 2023 - Agenda Time (CET) Topic Presenter 1. Agenda 2. Key Highlights and market developments H1 2023 Daniel Bischofberger (CEO) 09:30 - 10:30 3. Financial Review H1 2023 and Outlook Adrian Grossenbacher (CFO) 4. Q&A 4 H1 Results Media and Investor Conference 2023 ‘Turbo
Slide 5: Key Highlights & Market Developments of First Half-Year 2023
O?2 Key Highlights & Market Developments of First Half-Year 2023 Aj/
Slide 6: FCF conversion impacted by growth and supply chain
17.5% FCF conversion impacted by growth and supply chain Free cash flow conversion in H1 at low level. Net-working capital increase linked to high volume growth. Supply chain challenges further impacted inventories and cash conversion. Adjusted for the impact of one-off separation cost on net profit
Slide 7: Gas compression
Gas compression Overview + High speed gas powered internal combustion engines (ICE) drive compressor stations + Typical application area in US gas pipeline network is upstream i.e. pipelines transporting gas from shale O&G wells to main pipelines/midstream + Flexibility and smaller volume flows than
Slide 8: Gas compression
Gas compression US rig count as indicator for Accelleron’s gas compression business 2'000 1500 1000 500 °O — Total rig count USA" 2013 2014 2015, 2016 2017 1) Source: Baker Hughes, 2023 H1 Results Media and Investor Conference 2023 2018 2019 2020 2021 2022 2023 2024 Rig count is volatile with phas:
Slide 9: First Sustainability Report
First Sustainability Report Accelerating Sustainability in Marine & Energy Decarbonization of target industries will support the growth of the company. Sustainability report inspired by the standards of the Global Reporting Initiative (GRI). Ambition to fulfill the Science Based Target initiative (S
Slide 10: International Maritime Organization (IMO)
International Maritime Organization (IMO) Decision on New Decarbonization Objectives New CO2 target: Net zero until 2050 (previously 50% reduction) Checkpoints 2030: >20% reduction, 2040 >70% Objective to have >5% of energy used in Marine based on zero emission sources by 2030 + Global Fuel standard
Slide 11: Acquisition of OMT (Officine Meccaniche Torino)
Acquisition of OMT (Officine Meccaniche Torino) High precision fuel injection equipment for medium and low speed engines H1 Results Media and Investor Conference 2023 Founded in 1930 with 250 Employees mainly in Torino, Italy 2022 Revenues EUR 52 million, EBIT Margin above 20% Price in high two-digi
Slide 12: Next Generation Low Speed Axial Turbocharger
Next Generation Low Speed Axial Turbocharger Accelleron X300-L launched in June 2023 } iI Turbocharging re-imagined —— * More than the usual evolutionary improvement Cet a * Focus on flexibility to help customers address uncertainty about different } pathways to maritime decarbonization Key benefits
Slide 13: Accelleron growth corridor
Accelleron growth corridor Boom or new normal? Historically steady growth + Inline with GDP growth levels (3-4% CAGR) from 2000 to 2020, however with booms (marine from 2007 to 2011) and subsequent longer periods of stagnation, or even heavy declines * Product business highly volatile (fluctuations
Slide 14: Financial Review HY 2023 and Outlook
Financial Review HY 2023 and Outlook 14 H1 Results Media and Investor Conference 2023 Aj/
Slide 15: Group Performance
Group Performance Strong revenues momentum and attractive margin Revenues and growth Op. EBITA & margin Highlights $m $m Revenues * Overall positive market momentum continued. % YoY growth 17.1% Margin 25.3% 24.1% Strong demand across most of the relevant industries, especially global merchant marin
Slide 16: High Speed Performance
High Speed Performance Strong growth in Revenues and EBITA Revenues and growth $m % YoY growth 17.3% 106 2022H1 2023H1 6 Hi Results Media and Investor Conference 2023 Op. EBITA & margin $m Margin 21.1% 25.8% 22 32 2022 H1 2023 H1 Note: Numbers might not add up due to rounding Highlights Revenues Con
Slide 17: Medium & Low Speed Performance
Medium & Low Speed Performance Strong growth only leads to marginally higher profit Revenues and growth Op. EBITA & margin Highlights $m m Revenues + Strong demand in merchant marine as well as price increases contributed. % YoY growth 17.1% Margin |_26.9% 23.4% Cruise business further recovering ap
Slide 18: Op. EBITA to Net Income Bridge
Op. EBITA to Net Income Bridge Separation delivered according to plan, however impacting net profit 108 Key observations One-off and non-operational costs + Separation and build up of standalone functions and systems. * Great progress made with practically 59 7 full independence from ABB reached in
Slide 19: Free Cash Flow Conversion
Free Cash Flow Conversion Supply chain and growth affect cash flow conversion Free cash flow and conversion over net income $m 2022 H1 2023 H1 Net income 67 a7 Depreciation & amortization (D&A) 12 13 Change in net working capital and other’ (41) (39) Net cash provided by operating activities 38 21 C
Slide 20: Financial Guidance 2023
Financial Guidance 2023 Assuming normalized business environment Mid-term! REVETUES grain Gi 13% (organic) 15% incl. OMT 2-4% constant currency? . Operational EBITA . . perc 3 Lower end of mid-term guidance 23-26% margin‘ Free cash flow fan 60-70% 90-100% conversion Net leverage’ Slightly above 1.0
Slide 21: Thank you!
Acce//eron Thank you! Media Investors Martin Regnet Michael Daiber Head of External Communications & Public Affairs VP Strategy and Investor Relations media@accelleron-industries.com investors@accelleron-industries.com Turbo Systems Switzerland Ltd Turbo Systems Switzerland Ltd Bruggerstrasse 71A Br
Slide 22: Acce//eron
Acce//eron
Accelleron Industries — H1 2023 Earnings Presentation on 6ix