Slide 1: 2014 Half Year Results
2014 Half Year Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO . . .Gröflin, Joris . Group . CFO. . . . . . . . . . . . . . . . . . . .
Slide 2: Agenda
Agenda 1. Introduction and summary of first half year 2014 2. Financial results first half year 2014 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 Half Year Results 2
Slide 3: HY1 2014: Key messages
HY1 2014: Key messages “In a favorable market environment, Rieter increased sales and profitability compared to the first semester 2013. The Company booked a healthy order intake substantially reaching into 2015. This confirms the strong position of Rieter and its brands.” Dr. Norbert Klapper Group
Slide 4: Rieter – Highlights HY1 2014
Rieter – Highlights HY1 2014 Good trend of business continued in the first semester 2014 • Continued world-wide positive development of market environment Market • Regional variations in momentum persisted development • Rieter strongly positioned after completion of the investment program 2012 / 201
Slide 5: Market development
Market development Continued favorable market environment with regional variations • The world market continued to develop favorably for Rieter in the first half of 2014; regional variations in momentum persisted. • The market environment in China was tight due to high raw material prices and challe
Slide 6: Agenda
Agenda 1. Introduction and summary of first half year 2014 2. Financial results first half year 2014 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 Half Year Results 6
Slide 7: Rieter – Financial highlights HY1 2014
Rieter – Financial highlights HY1 2014 Continuously good order intake and increased sales and profitability • Order intake at 655.5 million CHF; 8% lower than HY1 2013 but 20% higher than Order intake HY2 2013 • Order backlog around 880 million CHF • Sales increase by 9% to 522.1 million CHF driven
Slide 8: Rieter – Financial key figures
Rieter – Financial key figures Good order intake - improved sales and profitability in HY1 CHF million HY1 2014 HY2 2013 HY1 2013 FY 2013 Order Intake 655.5 548.0 711.4 1‘259.4 Sales 522.1 557.2 478.1 1‘035.3 EBITDA 48.4 60.9 34.3(1) 95.2(1) EBIT 28.8 43.1 17.1(1) 60.2(1) EBIT margin (of sales) 5.5%
Slide 9: Orders by business group
Orders by business group Upswing from previous half-year • Order intake in HY1 above CHF million levels of HY2 2013 800 • SYS: + 22% 711 700 671 • PTC: + 4% 89 655 119 89 • Order backlog at around 600 548 880 million CHF (31.12.2013: 500 86 766 million CHF) 436 404 400 71 74 300 287 622 553 566 65 4
Slide 10: Sales by business group
Sales by business group Sales growth of 9% against HY1 2013 Increase of HY1-sales • SYS: + 11% (local currency + 14%) CHF million 700 • PTC: + 1% (local currency + 3%) +9% • PTC segment sales (incl. sales to 600 557 SYS) increased to CHF 130.1 million 522 478 92 (+4%) 500 86 86 Decrease in compariso
Slide 11: Sales development by region
Sales development by region Sales growth in all main regions except China CHF • Sales growth in absolute terms million widely spread over all main regions except China Other Asian 141 +12% countries 126 • Most significant increase in Turkey and Americas 107 Turkey +70% • Share of sales to Asia at 75
Slide 12: Operating result (EBIT)
Operating result (EBIT) EBIT margin at 5.5% In % of • EBIT increased by 68% to 28.8 million CHF sales 3.6% 7.7% 5.5% in HY1 2014; EBITDA increased to 48.4 CHF million million CHF (9.3% of sales) 90 • Higher profitability in both Business Groups versus HY1 2013: 80 • SYS at 4.5% of sales (HY1 2013: 3
Slide 13: Net profit
Net profit Net profit margin at 2.7% • Financial result of - 7.3 million CHF (HY1 In % of 2013: - 7.1 million CHF) comprises sales 1.0% 5.8% 2.7% mainly interest cost CHF million • Tax rate at 33% (50% in HY1 2013) 40 +186% • Earnings per share increased to 3.12 CHF 35 32 • Dividend of 3.50 CHF per
Slide 14: Changes in workforce
Changes in workforce Total workforce increased by 7% in order to cope with order growth Temporaries • 9% higher sales managed with 7% in % 18.1% 20.2% 20.7% more employees, both additional FTE1) temporary personnel and fixed staff +7% • Increase of permanent employees 7.000 mainly at the new facilit
Slide 15: Balance sheet
Balance sheet Strong net liquidity of 118.6 million CHF and equity ratio stable at 35% • Net liquidity of 118.6 million CHF impac- 30.06. 31.12. 30.06. ted by CHF million 2014 2013 2013 • low free cash flow due to volume Total assets 1100.2 1114.0 1092.7 related increase of net working capital (+25.
Slide 16: Net working capital
Net working capital Planned increase of net working capital to 40.2 million CHF • Planned increase in inventories in 30.06. 31.12. 30.06. preparation for higher sales in the CHF million 2014 2013 2013 second half of the year Inventories 264.8 233.0 248.4 Trade receivables 105.1 94.1 111.5 Other rece
Slide 17: Free cash flow
Free cash flow Improved free cash flow compared to HY1 2013 • Free cash flow of -2.9 million CHF HY1 HY1 CHF million impacted by increase of net working 2014 2013 capital Net profit 14.3 5.0 • Significant reduction of capital expenditure Interest and tax expense (net) 13.3 11.8 Depreciation and amor
Slide 18: Agenda
Agenda 1. Introduction and summary of first half year 2014 2. Financial results first half year 2014 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 Half Year Results 18
Slide 19: Summary
Summary Good trend of business continued in the first semester of 2014 • Global market momentum sustained • Order intake at a healthy level • High order backlog provides solid basis for further sales growth • Significant increase of sales and profitability compared to the prior-year period • Benefit
Slide 20: Outlook
Outlook • With broadly based business worldwide, Rieter expects for the second half of 2014 a stable market demand on slightly lower levels than in the strong first semester. Demand depends among other factors on the development of yarn and raw materials prices, currency exchange rates, financing co
Slide 21: Agenda 2014
Agenda 2014 HY1 2014 results publication: July 23, 2014 Conference call: 2 p.m. CET Analyst / Investor conference: October 30, 2014 Contact: Investor relations: Media: Joris Gröflin Cornelia Schreier Chief Financial Officer Head Corporate Communications T: +41 52 208 70 15 T: +41 52 208 70 32 invest
Slide 22: Appendix
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 Half Year Results 22
Slide 23: Key investment highlights of Rieter
Key investment highlights of Rieter Long-term growth industry Experienced Management team Broadest global and Board of systems supplier Directors Rieter Efficient cycle Leading market management and positions with value creation global footprint Technology and innovation leadership 2014 Half Year Re
Slide 24: Targets over the cycle
Targets over the cycle Over the cycle Sales Sales growth of > 5% > 9% over the cycle, EBIT margin peak years > 12% > 6% over the cycle, Net result peak years > 8% RONA Peak years > 14% Capex 4 – 5% of sales Target pay-out ratio of Dividend policy approx. 30% of net result 2014 Half Year Results 24
Slide 25: Operating result (EBIT) by Business Group
Operating result (EBIT) by Business Group All units contributed to improving results HY1 HY2 HY1 FY CHF million 2014 2013 2013 2013 EBIT BG Spun Yarn Systems 19.8 32.0 13.3 45.3 EBIT BG Premium Textile Components 14.1 16.3 9.6 25.9 Other units, consolidation -5.1 -5.2 -5.8 -11.0 EBIT 28.8 43.1 17.1
Slide 26: Order intake development and currency impact
Order intake development and currency impact Currency impact on order intake of around -3% CHF million 711 -35 +1 656 -22 In local currencies Orders Spun Yarn Premium Currency Orders received Systems Textile translation received HY1 2013 Components effect HY1 2014 Main exchange rates in CHF: HY1 201
Slide 27: Sales development and currency impact
Sales development and currency impact Currency impact on sales of -3% CHF million +2 522 -14 478 +56 In local currencies Sales Spun Yarn Premium Currency Sales HY1 2013 Systems Textile translation HY1 2014 Components effect Main exchange rates in CHF: HY1 2014: EUR = 1.22 USD = 0.89 CNY = 14.45 INR
Slide 28: Capital expenditures
Capital expenditures Capital expenditures significantly reduced CHF million 70 60 50 40 -54% 30 27 29 4 6 20 13 10 23 23 3 10 0 HY1 2013 HY2 2013 HY1 2014 Premium Textile Components Spun Yarn Systems 2014 Half Year Results 28
Slide 29: Net liquidity
Net liquidity Decrease of net liquidity due to seasonally low free cash flow CHF million 141 -3 -16 119 -3 Net liquidity Free cash flow Dividends Other Net liquidity 31.12.2013 30.06.2014 2014 Half Year Results 29
Slide 30: Values and principles
Values and principles 2014 Half Year Results 30
Slide 31: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever
Slide 32: Key data per share
Key data per share Rieter registered shares of 5 CHF nominal value 30.06.2014 31.12.2013 30.06.2013 Bloomberg: RIEN; Reuters: RITZn Shares outstanding excl. own shares 4‘583‘858 4‘586‘711 4‘575‘004 (end of period) Average shares (of period) 4‘587‘530 4‘602‘652 4‘617‘076 Share price (end of period) C