Georg Fischer AG · SIX:GF
Georg Fischer — FY2014 Earnings Presentation
34 slides from Georg Fischer's earnings presentation, Feb 24, 2015
Slide 1: Financial Analysts' Conference 2014 financial year
Financial Analysts’ Conference 2014 financial year Yves Serra / 24.02.2015
Slide 2: GF keeps its earnings growth path
GF Corporation GF keeps its earnings growth path Top line up 1% to CHF 3 795 million Operating result increased 9% to CHF 274 million Earnings per share jumped 32% to CHF 45 Proposed higher dividend of CHF 17 per share Strategy implementation well under way 2 Financial Analysts’ Conference
Slide 3: GF Piping Systems became the largest Division of GF
GF Corporation GF Piping Systems became the largest Division of GF 42% 39% 40% 37% 37% 35% 23% 23% 24% 2012 2013 2014 2012 2013 2014 2012 2013 2014 GF Piping Systems GF Automotive GF Machining Solutions 3 Financial Analysts’ Conference | 2014 financial year
Slide 4: Steady progress towards a better balanced geographical footprint
GF Corporation Steady progress towards a better balanced geographical footprint RoW Americas RoW Americas RoW Americas Asia 3% Asia 4% Asia 6% 14% 13% 14% 20% 21% 21% 64% 61% 59% Europe Europe Europe 2012 2013 2014 RoW = Rest of World 4 Financial Analysts’ Conference | 2014 financial year
Slide 5: All three divisions generate significant value anew
GF Corporation All three divisions generate significant value anew ROIC 21.8% 17.9% 17.1% 16.9% 8.2% WACC 5 Financial Analysts’ Conference | 2014 financial year
Slide 6: GF Piping Systems
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Slide 7: High performance upheld despite uneven demand
GF Piping Systems High performance upheld despite uneven demand Sales up 5% to CHF 1 476 million US gas distribution sector on the upswing High growth for shipbuilding worldwide AIDA cruise liner at Mitsubishi shipyard Uneven demand in Europe China construction market sluggish EBIT sligh
Slide 8: Turnaround achieved at GF Hakan in 2nd half-year
GF Piping Systems Turnaround achieved at GF Hakan in 2nd half-year Major order in Sri Lanka for 150 km of water pipes 8 Financial Analysts’ Conference | 2014 financial year
Slide 9: GF Automotive
GF Automotive
Slide 10: Margins jump on productivity increases
GF Automotive Margins jump on productivity increases Turnover down 6% to CHF 1 415 million on gravity-die casting divestment Premium passenger cars strong in Europe and China Shock tower for Truck demand in Europe subdued BMW 5 Series EBIT up 33% to CHF 93 million 10 Financial Analysts’ Conf
Slide 11: Acquisition of Meco Eckel strengthens light-metal positioning
GF Automotive Acquisition of Meco Eckel strengthens light-metal positioning GF Meco Eckel Parts Design + Supply 11 Financial Analysts’ Conference | 2014 financial year
Slide 12: GF Machining Solutions
GF Machining Solutions
Slide 13: Focus on less cyclical sectors yields results
GF Machining Solutions Focus on less cyclical sectors yields results Sales increased 4% to CHF 905 million Aerospace and ICT focus supports growth Automation needs on the rise EBIT up to CHF 53 million 13 Financial Analysts’ Conference | 2014 financial year
Slide 14: Major orders obtained by the newly acquired Liechti AG
GF Machining Solutions Major orders obtained by the newly acquired Liechti AG LIECHTI MIKRON LIECHTI USD 30 million order (Blades) (Blisks) (Blades) in October 2014 14 Financial Analysts’ Conference | 2014 financial year
Slide 15: Consolidated financial statements and financing
Roland Abt, CFO Consolidated financial statements and financing
Slide 16: Income statement
GF Corporation Income statement million CHF 2014 2013 Sales 3 795 3 766 1% Gross value added 1 334 1 294 3% Personnel expenses -935 -914 2% EBITDA 399 380 5% Depreciation, amortization -125 -129 -3 % EBIT 274 251 9% Financial result -42 -45 -7 % Share of results of associates 0 0 - Extraordinary r
Slide 17: Sales by division
GF Corporation Sales by division million CHF Growth ∆ % 1) 2014 2013 in CHF in LC GF Piping Systems 1 476 1 402 5. 3% 3.0 % GF Automotive 1 415 1 498 -5.5 % -0.8 % GF Machining Solutions 905 867 4.4 % 2.3 % Corporation 3 795 3 766 0.8 % 1.4 % Sales 1st Semester 1 879 1 837 2.3 % 3.6 % Sales 2nd Seme
Slide 18: EBIT and profitability
GF Corporation EBIT and profitability million CHF EBIT 2014 2013 ROIC % margin % GF Piping Systems 142 141 9.6 % 17.1 % GF Automotive 93 70 6.6 % 21.8 % GF Machining Solutions 53 51 5.9 % 16.9 % Corporation 274 251 7.2 % 17.9 % EBIT 1st Semester 132 118 7.0 % 17.2 % EBIT 2nd Semester 142 133 7.4 % 1
Slide 19: Currency impact on Sales / EBIT
GF Corporation Currency impact on Sales / EBIT million CHF Sales EBIT 2014 EUR -24 -6 USD -1 +5 Others -32 0 Total currency impact -57 -1 GF Piping Systems -25 -7 GF Automotive -18 -1 GF Machining Solutions -14 +7 19 Financial Analysts’ Conference | 2014 financial year
Slide 20: Balance sheet: Assets
GF Corporation Balance sheet: Assets million CHF 2014 % 2013 % Securities / Cash and cash equiv. 380 653 Trade accounts receivable 643 568 Inventories 666 647 Assets held for sale 0 23 Other current assets 112 98 Current assets 1 801 60 1 989 64 Property, plant and equipment 1 053 1 008 Intangible a
Slide 21: Balance sheet: Liabilities and equity
GF Corporation Balance sheet: Liabilities and equity million CHF 2014 % 2013 % Current liabilities 981 1 259 Liabilities held for sale 0 23 Non-current liabilities 904 866 Liabilities 1 885 63 2 148 69 Share capital 4 41 Share premium 33 60 Treasury shares -9 -9 Retained earnings 1 029 843 Non-contr
Slide 22: Free cash flow
GF Corporation Free cash flow million CHF 2014 2013 EBITDA 399 380 Changes in net working capital -42 15 Income taxes / interest paid -85 -74 Other changes -24 -12 Cash flow from operating activities 248 309 Additions to property, plant and equipment -152 -130 Cash flow from acquisitions / divestitu
Slide 23: Net debt and Free cash flow
GF Corporation Net debt and Free cash flow million CHF Net debt Free cash flow Free cash flow excl. acquisitions Net debt / EBITDA 600 1.0x 0.8x 1.0x 0.9x 0.9x 500 400 352 354 334 321 294 300 200 174 150 103 99 108 110 150 100 103 90 19 0 2010 2011 2012 2013 2014 23 Financial Analysts’ Conference |
Slide 24: Key figures
GF Corporation Key figures million CHF 2014 2013 Sales in % 0.8 1.2 Sales in % (organic growth / LC) 1.4 1.9 Return on Sales (EBIT margin) in % 7.2 6.7 Net profit in % of sales 5.1 3.9 ROIC in % 17.9 16.7 Return on Equity in % 18.7 14.8 Equity ratio in % 37 31 Earnings per share in CHF 45 34 Div
Slide 25: Outlook
Yves Serra, CEO / Roland Abt, CFO Outlook
Slide 26: Forex effect 2015 – Transaction Exposure
GF Corporation Forex effect 2015 – Transaction Exposure Situation end of January: CHF / EUR = 1.05 CHF / USD = 0.93 Euro USD Income Cost Income Cost 2.0 1.95 Bill. Bill. 26 Financial Analysts’ Conference | 2014 financial year
Slide 27: Forex effect 2015 – Net Impact
GF Corporation Forex effect 2015 – Net Impact Immediate measures in Switzerland • Increase in working time • Sourcing • Cost cutting Effect on Income Statement • Sales -8% • EBIT-margin impact - 30 to - 50 bps Effect on Equity • Impact on equity CHF 85 million • Equity ratio unchanged at 37% 27 Fina
Slide 28: Outlook 2015
GF Corporation Outlook 2015 Efficiency measures and hedging compensate a major part of the Swiss Franc appreciation Capacity and volume steeply increased in China at GF Automotive A high order backlog at GF Machining Solutions Novelties and new product launches at all Divisions ROS in the 8%
Slide 29: Novelties to boost revenues and margins
Novelties to boost revenues and margins
Slide 30: Innovative services launched at GF Piping Systems
GF Piping Systems Innovative services launched at GF Piping Systems «Intelligent» fittings 30 Financial Analysts’ Conference | 2014 financial year
Slide 31: GF Automotive enters the electric car component business
GF Automotive GF Automotive enters the electric car component business Battery Housing Audi e-tron 31 Financial Analysts’ Conference | 2014 financial year
Slide 32: Complete integration of machining automation lines by GF Machining Solutions
GF Machining Solutions Complete integration of machining automation lines by GF Machining Solutions 32 Financial Analysts’ Conference | 2014 financial year
Slide 33: Thank you
Thank you
Slide 34: 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