Slide 1: Annual Report 2020
Analyst Conference March 19 2021 ANNUAL REPORT 2020 Paul Zumbühl CEO Interroll Worldwide Group interroll.com
Slide 2: Agenda
Agenda 1. Overview Paul Zumbühl, CEO 2. Technology Platform & Expansion: Jens Strüwing, Executive Vice President Foundation for growth Products & Technology 3. Customer Comfort & Confidence Jens Karolyi, Senior Vice President Corporate Marketing & People Development 4. Results 2020 Heinz Hössli, CFO
Slide 3: Highlights 2020
Highlights 2020 Results, innovation, growth, platform strategy RECORD RESULTS 2020 STRONG INNOVATION- CAPACITIES FOR GROWTH MATERIAL HANDLING PIPELINE 2021-2025 2021-2023 ESTABLISHED PLATFORMS • EBIT: CHF 94.1m (+30.1%) • Split-Tray Sorter • Mosbach, Germany • Deepening of technology platform • Resu
Slide 4: We passed the acid test!
We passed the acid test! Homework during good times paid off Culture • Long-term DNA • Outstanding commitment • Climate of Excellence Innovation • Unique selling propositions • Highly flexible platform solutions • Saving time as added value Business Excellence • Regular «Health Checks» -> Competitiv
Slide 5: Our Growth Strategy
Our Growth Strategy Three Pillars: Products, Markets, Service Service Business Geographical Expansion Innovative Products Regional Presence Service EMEA Americas Asia Pacific • New Setup Service Innovations • New Plant South • E-Commerce • New Factory in Organization (Q3/21) Germany (Q3/21) accelera
Slide 6: Next strategic phase 2021-2030
Next strategic phase 2021-2030 [strategic achievements/ market power] Phase 3 Phase 2 • Modularity / digitalisation Phase 1 • Industry solutions • Platform-concept • Business excellence • Global footprint • Restructuring • End-user approach • Re-positioning • Divestments / acquisitions [time] 2000 2
Slide 7: From Solution Provider to Thought Leader
From Solution Provider to Thought Leader Enabler Authority in the market Proven Setting industry standards Leading platform Long-term perspective provider TODAY TOMORROW Customer Comfort Customer Confidence • Technology platform with the right • Partner with longterm perspective (future benefits for
Slide 8: Customer Confidence
Customer Confidence INTERROLE
Slide 9: HR Program
HR Program From “Culture for Growth” to “People Development” • Interroll needs talents for further growth (passionate & skilled) • Talents are a limited resource in our industry -> Focused recruiting and development Recruiting Development • Cooperation with universities • Interroll Academy (e.g. Fon
Slide 10: Technology Platform & Expansion: Foundation for growth
Technology Platform & Expansion: Foundation for growth Jens Strüwing Executive Vice President Products & Technology interroll.com
Slide 11: Products & Technology
Products & Technology Overview Capacity Innovation Interroll Lifetime Service New products and strong Focus on offering added value Independent Service organization focus on growth resulting in to the Interroll customer base. to be established. increasing capacity in all • Increased global installed
Slide 12: Capacities for sustainable growth
Capacities for sustainable growth Global Expansion EMEA Asia Pacific Americas • New Plant Mosbach (CoE* • New Factory in Suzhou (Start • High potential for sorter projects Conveyors & Pallet of production: Q3/22) Handling) (Invest. > 45m • New Factory in Hiram, Atlanta, EUR • Additional Capacity for
Slide 13: «Cell Split» July 2021
«Cell Split» July 2021 …..reducing complexity & adding capacity to increase flexibility CoE* CoE* Pallet Conveyor & Handling Sorter Kronau Sinsheim CoE* CoE* Conveyor Sorters, & Pallet • Full focus on sorters • Full focus on Conveyors Handling Sinsheim • Additional capacities & Pallet Handling Mosba
Slide 14: Innovation in Practice
Innovation in Practice High Performance Crossbelt Sorter (HPCS) and Split Tray Sorter Most relevant markets: • CEP* High-Performance Since 2020 • Distribution MX025H Segment High Performance * Courier, Express, Parcel Crossbelt Sorter Most relevant markets • E-Commerce PROVEN • Fashion ST6160/ST 613
Slide 15: Innovation in Practice
Innovation in Practice Pallet Handling Smart Pallet Mover (SPM) Modular Pallet Conveyor Dynamic Storage Platform (MPP) The new Interroll solution to organize A combination of intelligent roller Storage systems based on gravity lanes and automate the flow of pallets in conveyors, chain conveyors and
Slide 16: Innovation in Practice: Smart Pallet Mover
Innovation in Practice Smart Pallet Mover 16
Slide 17: Global Lifetime Service
Global Lifetime Service Next Steps Short-Term Short-Term/Mid-Term Future • Separate service organization in Europe (July 21) and global rollout starting in 2022 • Short-term: expansion of spare parts business in 2021 (Refurbishment and Logistics) • Short & medium-term: offering Maintenance and Insta
Slide 18: Customer Comfort & Confidence
Customer Comfort & Confidence Jens Karolyi Senior Vice President Corporate Marketing & People Development interroll.com
Slide 19: Product Groups
Product Groups Overview on the business in Financial Year 2020 Rollers: Net Sales: CHF 106.0 Mio. (-3.8% vs. LY) Order Intake: CHF 107.5 Mio. (-0.3% vs. LY) • Availability was crucial during pandemic • Very short delivery times basis of success Drives & Controls: Net Sales: CHF 156.5 Mio. (-9.2% vs.
Slide 20: Product Groups
Product Groups Overview on the business in Financial Year 2020 Conveyors & Sorters: Net Sales 2020: CHF 221.5 Mio. (-0.7% vs. LY) Order Intake 2020: CHF 233.2 Mio. (+8.5% vs. LY) • E-Commerce and CEP markets are developing positively • Very strong order intake Pallet Handling: Net Sales: CHF 46.6 Mi
Slide 21: Customer Comfort
Customer Comfort Saving time through the right digital setup Product Information Product Cloud Service Cloud Layouting & Config. Tools Interroll Digital Eco System • „Headless“ network • All our competences together on the spot • Goal: best-in-class customer experience SAP Commerce Cloud Customer So
Slide 22: Customer Confidence
Customer Confidence Interroll as partner of trust Strategic Partner Focus Partnership Network Sales Team Skills & • Solution Sales Organization: Customer Trainings • More than 100 selected partners Customer Relation at Eye-Level • “License to Sell” Concept • Competence and insights • Global Account
Slide 23: Video Ulla Popken
Video Ulla Popken Customer Confidence. End User Confidence. Consumer Confidence.
Slide 24: Results 2020
RESULTS 2020 Heinz Hössli CFO
Slide 25: Order intake: CHF 547.8m (+0.3%)
Order intake: CHF 547.8m (+0.3%) In local currency: +6.6% In CHF million 600 55 50 Rollers: -0.3% 215 233 300 Drives: -6.9% 169 158 Conveyors & Sorters: +8.5% Pallet Handling: -9.2% 108 108 0 1612 1712 1812 1912 2012 Book-to-bill Ratio: 1.03 (PY: 0.98) Rollers Drive s Conveyors/Sorters Pallet Handli
Slide 26: Sales by region: CHF 530.6m (-5.2%)
Sales by region: CHF 530.6m (-5.2%) In local currency: +0.9% In CHF million 600 Sales development: - EMEA: -10.6% - Americas: +6.1% 300 - Asia-Pacific: -4.6% Sales by region: - EMEA: 54% (PY: 57%) 0 1612 1712 1812 1912 2012 - Americas: 30% (PY: 27%) EMEA AMERICAS ASIA - Asia-Pacific: 16% (PY: 16%) 2
Slide 27: EBIT: CHF 94.1m (+30.1%)
EBIT: CHF 94.1m (+30.1%) In CHF million 100 20% Favorable margin from product mix 94.1 15% High cost discipline 72.3 EBITDA CHF 115.4m (+20.1%) 50 10% In % of sales 21.7% (PY: 17.1%) 5% Depreciation almost unchanged Amortization lower 0 0% 1612 1712 1812 1912 2012 EBIT CHF 94.1m (+30.1%) EBIT in % o
Slide 28: Result: CHF 71.7m (+28.0%)
Result: CHF 71.7m (+28.0%) In CHF million 80 15% 71.7 60 10% Negative financing result from FX 56.0 40 currency loss 5% Slightly higher tax rate 20 Result CHF 71.7m (+28.0%) 0 0% In % of sales 13.5% (PY: 10.0%) 1612 1712 1812 1912 2012 Net Profit in % of sales 28
Slide 29: Operating cash flow: CHF 122.9m (+23.4%)
Operating cash flow: CHF 122.9m (+23.4%) In CHF million 25% 122.9 Lower NWC (very high advance payments 100 20% from customer) 99.6 15% Less income tax 50 10% Operating cash flow CHF 122.9m (+23.4%) 5% In % of sales: 23.2% (PY: 17.8%) 0 0% Investments CHF 51.3m (PY: CHF 33.6m) 1612 1712 1812 1912 20
Slide 30: Value creation: ROE 23.3% and RONA 30.4%
Value creation: ROE 23.3% and RONA 30.4% ROE & RONA vs. WACC of 9% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020.0 ROE 4.3% 11.1% 13.4% 12.8% 11.9% 9.9% 14.4% 16.4% 15.8% 19.0% 19.0% 23.3% RONA 1.6% 10.4% 9.9% 12.6% 12.2% 9.8% 15.3% 17.1% 16.5% 20.9% 22.6% 30.4% WACC 9.0
Slide 31: Strengthening Commitment to Corporate Responsibility
Strengthening Commitment to Corporate Responsibility • Long-term commitment to Environmental, Social, Governance standards (ESG) • Swiss Stock Exchange SIX selected Interroll to be part of the SPI ESG & SPI ESG Weighted indexes, which went live in Feb 2021 • A full ESG Report is to be published on F
Slide 32: Upcoming General Assembly
Upcoming General Assembly Proposals of the Board of Directors The Annual General Assembly on May 7, 2021 In CHF will receive the following proposals: 100 ▪ A dividend of CHF 27.00 per share (+20.0%) 86.0 (PY: CHF 22.50) 66.7 ▪ The payout ratio reaches 31.4% (PY: 33.7%) 61.3 50 ▪ Board of Directors (
Slide 33: Dividend Development
Dividend Development Period from FY 2000-2020 30.00 Dividend 25.00 (CHF/share) 20.00 15.00 10.00 5.00 0.00 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 34: Summary & Outlook
SUMMARY & OUTLOOK Paul Zumbühl CEO Interroll Worldwide Group interroll.com
Slide 35: Outlook 2021
Outlook 2021 Shaping the evolution of material handling Thought Leadership: Shaping the evolution of material handling together with users. New opportunities in food and e-commerce. Innovation & Service: Deepening of our technology platform and decentralized intelligence, expanding local service. Lo
Slide 36: Our future CEO: Ingo Steinkrüger
Our future CEO: Ingo Steinkrüger • Previously Chief Executive Officer at thyssenkrupp System Engineering (since 2016) • Starts as Chief Executive Officer of Interroll Holding on May 1, 2021 • Strategic focus on digitalization and technology platforms as well as customers and business development • M
Slide 37: Ensuring strategic continuity
Ensuring strategic continuity Annual General Meeting (AGM) 2021 to AGM 2023 Chairman of the Board of Directors (BoD) Lead Independent Director additional function for two terms of office function for two terms of office as Active Chairman (AGM 2021 to AGM 2023). (AGM 2021 to AGM 2023). Tasks Tasks •
Slide 38: Questions
INSPIRED BY EFFICIENCY INTERROLL interroll.com