Burckhardt Compression Holding Ag · SIX:BCHN
Burckhardt Compression — FY2021 Earnings Presentation
29 slides from Burckhardt Compression's earnings presentation, Jun 8, 2022
Slide 1: Year-End Results Fiscal Year 2021
YEAR-END RESULTS FISCAL YEAR 2021 JUNE 8, 2022, WINTERTHUR
Slide 2: Disclaimer
Disclaimer The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Burckhardt Compression. This document contains certain statements related to the future business and financial performan
Slide 3: Delivering on strategic and operational priorities and unlocking further growth
Delivering on strategic and operational priorities and unlocking further growth in the mid to long term NEW CEO BACKGROUND STRONG FOUNDATIONS FUTURE PRIORITIES • French & Swiss citizen • Engaged employees with • Strengthen our position as passionate and pragmatic culture employer of choice • Aeronau
Slide 4: Content
Content 1. Key Highlights and Market Development F. Billard 5 2. Operational Review F. Billard 12 3. Financial Review R. Braendli 17 4. Strategic Update and Outlook F. Billard 24 FY 2021 Results 08 June 2022 4
Slide 5: 1. Key Highlights and Market Development
1. KEY HIGHLIGHTS AND MARKET DEVELOPMENT FABRICE BILLARD CEO FY 2021 Results 08 June 2022 5
Slide 6: Significantly higher order intake in FY 2021
Significantly higher order intake in FY 2021 Strong profitability improvements despite marginal decline in sales Order Intake Group Sales EBIT EBIT (%) Net income EPS (CHF mn) (CHF mn) (CHF mn) incl. minorities (CHF mn) 976.6 650.7 70.3 10.8% 50.4 14.82 +44.3% -1.2% +15.7% +1.6pp +6.8% +13.9% • Exce
Slide 7: Significant milestones achieved in the reporting period
Significant milestones achieved in the reporting period • First successes with • Acquisition of Mark van • Further momentum in • Ongoing success with LNG commercial digital solutions Schaick (Netherlands) BV Hydrogen - Orders for 60 - Collaboration with PTC - Leading provider of - Shell New Energies
Slide 8: Embedding sustainability into strategy and operations
Embedding sustainability into strategy and operations Our approach and strategic framework • Pragmatic and focused approach • Link to Sustainable Development Goals Our material sustainability topics • 8 materiality topics • Addressing scope 1,2 & (selected) 3 • Global data collection & KPIs Our sust
Slide 9: Proactively navigating global challenges; resilience supported by employee commitment
Proactively navigating global challenges; resilience supported by employee commitment and business diversification CHALLENGES MITIGATING ACTIONS Corona-related travel • Outstanding employee commitment and flexibility restrictions and local lock- • Digital workplace and processes downs (China) • Digi
Slide 10: Burckhardt's key markets at the crossroads of global energy trends
Burckhardt’s key markets at the crossroads of global energy trends Energy carriers Energy sources LNG2) Natural Gas1) Energy Energy transition security H2 mobi.& energy3) Solar4) 1) Gas gathering, processing, transport & storage 2) LNG terminals, dual-fuel ship engines, bunkering 3) Liquid H2 prod.,
Slide 11: Market drivers remain supportive
Market drivers remain supportive BC continues to be well-positioned to capitalize on these trends Mid-Term Market drivers Dynamics in FY 2021 Gas • US political support for domestic gas production • Re-start of investment in Gathering & • Energy mix shift towards natural gas (lower CO2 emissions) th
Slide 12: 2. Operational Review
2. OPERATIONAL REVIEW FABRICE BILLARD CEO FY 2021 Results 08 June 2022 12
Slide 13: Systems Division: Exceptionally high order intake
Systems Division: Exceptionally high order intake EBIT and gross profit margins up substantially despite lower sales • Order intake significantly above prior-year in CHF mn FY 2021 FY 2020 Change - Strong recovery from pandemic since early 2021, Order intake 651.1 404.6 60.9% combined with an accele
Slide 14: Systems Division: Progress on MRP 2022 execution
Systems Division Progress on MRP 2022 execution Strategic initiatives Examples of progress in FY21 NEW • New Marine applications • Won orders for 60 compressors for new • High-Speed Compressors/ applications on LNG-fuelled ships RESILIENCE & SUSTAINABLE GROWTH MARKETS BCS Compressor • Entered Europe
Slide 15: Services Division: Significantly higher order intake
Services Division: Significantly higher order intake Sales and EBIT higher • Strong Order Intake growth in CHF mn FY 2021 FY 2020 Change - Strong demand for engineering solutions Order intake 325.5 272.1 19.6% (revamp/upgrades) - Increasing demand from China, Europe and the US Sales 278.0 248.8 11.8
Slide 16: Services Division: Areas for growth in Services
Services Division Progress on MRP 2022 execution Strategic initiatives Examples of progress in FY21 • 60% of sales executed locally vs. • Further progress with Service setup in centrally Southeast Asia (Vietnam & new agent in LOCAL • Authorized partners to enter fast- AREAS FOR GROWTH IN SERVICES Br
Slide 17: 3. Financial Review
3. FINANCIAL REVIEW ROLF BRAENDLI CFO FY 2021 Results 08 June 2022 17
Slide 18: Exceptionally high order intake, including large LDPE/EVA and polysilicon orders
Exceptionally high order intake, including a high number of large orders for LDPE/EVA and polysilicon applications In CHF million • Order intake at CHF 976.6 mn, 44.3% above prior-year level (42.6% net of currency translation effects and acquisitions) 1’000 900 • Systems Division: +60.9% to CHF 651.
Slide 19: Overall sales at prior-year level
Overall sales at prior-year level; Lower Systems sales due to corona- impacted order intake in the first half of FY 2020 In CHF million • Sales at CHF 650.7 mn, 1.2% less than in the prior year (-2.6% net of currency translation effects and 700 acquisitions) 600 • Systems Division: -9.1% to CHF 372.
Slide 20: Clear growth of EBIT and EPS in FY 2021
Clear growth of EBIT and EPS in FY 2021 in CHF mn FY 2021 FY 2020 Change • Gross margin up 4.1 percentage points Order intake 976.6 676.6 44.3% - More favorable product mix leading to higher gross margin in Systems business Sales 650.7 658.6 -1.2% - Higher share of Service business (43% in FY 2021 v
Slide 21: Balance sheet bolstered by advance payments from customers
Balance sheet bolstered by high volume of advance payments from customers; equity ratio close to 30% in CHF mn FY 2021 FY 2020¹ • Property, Plant & Equipment stable at prior-year level Property, Plant & Equipment 183.2 180.1 • Trade receivables at high prior-year level Inventories 192.4 151.0 - 25%
Slide 22: Capital Investments in FY 2021 below the past two years
Capital Investments in FY 2021 below the past two years, close to CHF 23mn – similar level as depreciation & amortization In CHF million 47 35 30 25 20 15 10 1. 2. 3. 4. 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022E 1) Including CHF 5.8 mn investments in real estate (construction
Slide 23: Net financial position improved further in FY 2021
Net financial position improved further in FY 2021 in CHF mn FY 2021 FY 2020 • Improved net financial position (net debt) of CHF -56.8 mn Cash Initial Balance 75.4 90.3 - Cash flow from operating activities at high level of Cash Flow from Operating CHF 134.7 mn, marginally above the prior year 134.7
Slide 24: 4. Strategic Update and Outlook
5. 4. STRATEGIC UPDATE AND OUTLOOK FABRICE BILLARD CEO FY 2021 Results 08 June 2022 24
Slide 25: What has BC achieved to date in the context of its MRP 2022 targets
What has BC achieved to date in the context of its MRP 2022 targets Geographical positioning & large • Mitigated Covid-19 impact & geopolitical crises customer base offer scale benefits for • Strong backlog distributed over the existing Focused on sustainable value creation for all stakeholders with
Slide 26: Key Priorities for FY 2022
Key Priorities for FY 2022: Deliver on MRP 2022 target whilst monitoring and mitigating external challenges Group Systems Division Services Division • Define new MRP directions and targets, next CMD planned for Nov • Continue to mitigate sanctions, • Ongoing realization of service 1st, 2022 supply c
Slide 27: FY 2022 financial guidance
FY 2022 financial guidance Guidance FY 2022* Sales CHF 720 – 760 mn EBIT At similar level as FY 2021 margin *Based on the following considerations: ▪ Russian projects in the order backlog cannot be invoiced in FY 2022 ▪ One off costs in the range of CHF 5-7mn at EBIT-level in the context with projec
Slide 28: Glossary
Glossary • BC Burckhardt Compression • OBC Other brand compressors • OEM Original equipment manufacturer • JSW The Japan Steel Works, Ltd. • LdPE Low density polyethylene • EVA Ethylene-Vinyl-Acetate • LNG Liquefied natural gas • CNG Compressed natural gas • MRP Mid range plan • EBIT Earnings before
Slide 29: Burckhardt Compression
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Burckhardt Compression — FY2021 Earnings Presentation on 6ix