Starragtornos Group Ag · SIX:STGN
Starragtornos — Tornos Holding — Media & Analysts Conference 2016
28 slides from Starragtornos's conference presentation, Mar 15, 2016
Slide 1: Media & Analysts Conference
Media & Analysts Conference Tornos Holding Ltd. Zurich, March 15, 2016 Speakers François Frôté – Chairman of the Board Bruno Edelmann – Chief Financial Officer Michael Hauser – Chief Executive Officer March 15, 2016 2
Slide 2: Agenda
Agenda Welcome Overall Review François Frôté, Chairman Financial Results 2015 Bruno Edelmann, CFO Strategy 2017 – status update Michael Hauser, CEO Questions and Answers March 15, 2016 3 Overall Review François Frôté – Chairman of the Board
Slide 3: Key Financials and Achievements
Key Financials MCHF 2015 2014 Order intake 160.0 183.2 Net sales 164.0 175.8 EBITDA 4.9 5.5 EBIT 2.4 2.8 Net result 0.9 2.9 Net cash 11.3 15.1 March 15, 2016 5 Achievements Positive result despite difficult conditions Internationalization and transformation on track New products successfully launche
Slide 4: Financial Results 2015 Summary
Financial Results 2015 Bruno Edelmann – Chief Financial Officer Financial Results Summary Order intake down by MCHF 23.2 or 12.7% to MCHF 160.0 currency adjusted: MCHF -10.4 or -5.7% Net sales down by MCHF 11.8 or 6.7% to MCHF 164.0 currency adjusted: MCHF -3.3 or -1.9% EBIT MCHF 2.4 vs. MCHF 2.8 PY
Slide 5: Order intake and regions
Financial Results Order intake MCHF 200 183.2 -12.7% 160.0 150 100 2014 2015 Currency effect of -7.0% or MCHF -12.8 March 15, 2016 9 Financial Results Order intake machines - regions 2014 2015 4% 13% 24% 17% 72% 70% Europe remains the core region for Tornos Gratifying development in the Americas reg
Slide 6: Order intake by industries and machines / CS
Financial Results Order intake machines - industries 2014 2015 31% 32% 31% 35% 11% 14% 17% 10% 9% 10% Automotive remains the most important market in terms of share In medical, some orders received from well-known global companies Slightly increase of electronics industries; high-tech connectors for
Slide 7: Net sales and income statement 1/2
Financial Results Net sales MCHF 200 175.8 -6.7% 164.0 150 100 50 0 2014 2015 Currency effect of 4.8% as the main reason for the decline March 15, 2016 13 Financial Results Income statement – 1/2 in % of in % of in MCHF 2015 2014 Sales Sales Net sales 164.0 175.8 Gross profit 49.3 30.1% 52.5 29.9% M
Slide 8: Income statement 2/2 and change in net result
Financial Results Income statement – 2/2 in % of in % of in MCHF 2015 2014 Sales Sales Operating result 1.5 0.9% 2.8 1.6% Financial income / expense -0.4 -0.2% -0.4 -0.2% Exchange result net 0.0 0.0% 0.9 0.5% Ordinary result 1.1 0.7% 3.3 1.9% Non-operating result 0.8 0.5% 0.0 0.0% Earnings before in
Slide 9: EBITDA to EBIT and personnel expenses
Financial Results EBITDA to EBIT in % of in % of in MCHF 2015 2014 Sales Sales EBITDA 4.9 3.0% 5.5 3.1% Depreciation and amortisation -2.5 -1.6% -2.7 -1.5% EBIT 2.4 1.4% 2.8 1.6% EBIT only MCHF 0.4 below previous year March 15, 2016 17 Financial Results Personnel expenses 95 859 900 85 800 Number of
Slide 10: Personnel FTEs per region and Balance Sheet
Financial Results Personnel – FTE’s per region 2014 2015 110 132 18 19 103 402 109 397 Total 633 FTE’s Total 657 FTE’s Additional personnel in Asia (+22 FTE) to cope with the increasing production volume March 15, 2016 19 Financial Results Balance Sheet in % in % in MCHF 2015 2014 total BS total BS
Slide 11: Cash Flow Statement and Net Working Capital
Financial Results Cash Flow Statement in MCHF 2015 2014 Cash Flow from operating activities before changes in Net Working Capital 0.5 7.4 Changes in Net Working Capital -2.8 6.5 Cash Flow from operating activities -2.3 13.9 Cash Flow from investing activities 0.0 -0.3 Free Cash Flow / (Drain) -2.3 1
Slide 12: FOREX exposure and accompanying measures 2016
Financial Results FOREX exposure GBP 2014 RMB 2015 7% 2% GBP RMB USD 2% 4% 2% USD CHF CHF 13% 31% 37% Sales EUR 52% EUR 50% GBP RMB GBP RMB 1% 5% 1% 5% USD USD 11% 8% CHF CHF 43% Cost 48% EUR EUR 38% 40% Increasing share of USD; EUR exposure reduced March 15, 2016 23 Financials Accompanied measures
Slide 13: In a Nutshell and Calendar of events 2016
Financials In a Nutshell Positive result despite a challenging business year - EBIT MCHF 2.4 - Net result MCHF 0.9 Solid financial basis - Net cash position MCHF 11.3 - Equity ratio 59.7% Ongoing cost reduction program Secured sources of finance March 15, 2016 25 Calendar of events 2016 April 13 Ann
Slide 14: Strategic reorientation 2017 – Status update 03/2016
Strategic reorientation 2017 Status update 03/2016 Michael Hauser – Chief Executive Officer Strategy 2012-2017 Six strategic thrusts 1. Internationalization of business 2. Strengthen flexibility 3. Growth through innovation 4. Make service a business 5. Enhance operational excellence 6. Offer unique
Slide 15: Geographical production footprint
Priorities and outlook for 2015 On course for the future Media & Analysts conference 16.3.2015 March 15, 2016 29 Internationalization of business Geographical production footprint Chaux-de-Fonds Surface: 800m2 Moutier Xi’an Capacity: 100 mc p.a Surface: 2500m2 Since 2008 Capacity: 1000 mc p.a Since
Slide 16: Tornos Xi'an and Tornos Taiwan
Internationalization of business Tornos Xi’an History Chinese JV (Tornos with 70% stake) Announcement of JV in Q2/2013 First product (CT 20) delivered in Q1/2014 Relocation to new facility (Oct 2014) New products Swiss DT 13 and Swiss DT 26 developed and launched in Q3/2015 and Q1/2016 Sufficient ca
Slide 17: Footprint adaptation and structural cost reduction
Strengthen flexibility Sustainable footprint adaptation 813 657 633 570 FTE Tornos Group 2015 vs 2014 +3.7% 2015 vs 9/2012 –19% FTE Switzerland (fix) 2015 vs 2014 0% 2015 vs 9/2012 –43% Sept. 2012 2013 2014 2015 Switzerland Temps Rest of the World Sales, Application and Service remained unchanged FT
Slide 18: New organization and MultiSwiss
Strengthen flexibility New organization GSCM CEO S&M CS P&OP GSCM FICO MM S&M (Sales & Marketing), CS (Customer Service), P&OP (Products & Operations), GSCM (Global Supply Chain Management), FICO (Finance & Controlling), MM (MicroMilling) March 15, 2016 35 Growth through innovation Capitalize on lat
Slide 19: High-end for high precision; EvoDECO range
Growth through innovation High-end for high precision EvoDECO 32 introduced at EMO Hanover 2013 High precision for medical and dental industries New design with improved performance EvoDECO 10 100% developed and manufactured in Switzerland New EvoDECO 10 and 16 introduced in 2015 EvoDECO 16 March 15
Slide 20: Mid-range for high precision and global markets
Growth through innovation Mid-range for high precision Introduced at 5th Tornos Watch Days 2013 Innovative Swiss-type mid-range product Tailored to high precision applications (focus on micromechanics) SwissNano Common platform with Micromilling 100% developed and manufactured in Switzerland Growth
Slide 21: Entry-level for emerging markets; TISIS software
Growth through innovation Entry-level for emerging markets Second platform-product Asia Swiss DT 13 and Swiss DT 26 Introduced in China at the end of 2015; globally in 2016 Well perceived by customers Sold through two sales channels Swiss DT 13 (2015) (direct / indirect) in China Key components from
Slide 22: Key components development and portfolio renewal
Growth through innovation Key components development B-axis on Swiss GT 26 Motor-spindles March 15, 2016 43 Growth through innovation Portfolio renewal on track 2014 2015 23% 33% 67% 77% Product portfolio renewal in full swing Further novelties to hit the market in 2016 March 15, 2016 44
Slide 23: Service revenue contribution and LEAN concept
Make service a business Reliable revenue contribution 2014 2015 23% 24% 77% 76% Overhauling business growing New Service products well accepted March 15, 2016 45 Enhance operational excellence LEAN Concept Up to 35% productivity gain due to LEAN approach Lead time reduction 66% Assembly surface redu
Slide 24: Priorities and outlook for 2016
Priorities and outlook for 2016 Pursue strategic reorientation according to mid-term plan Enhance operational excellence in all departments Fully implement LEAN manufacturing in Moutier Increase flexibility by maximizing Outsourcing Further strengthen Service business Introduce new products March 15
Slide 25: Inquiries
Inquiries Investor and media relations: Bruno Edelmann +41 32 494 42 33 investors@tornos.com / communications@tornos.com For more details on Tornos Group, please refer to www.tornos.com March 15, 2016 49 Media & Analysts Conference Tornos Holding Ltd. Zurich, March 15, 2016
Slide 26: Thanks for your attention! Questions & Answers
THANKS FOR YOUR ATTENTION! QUESTIONS & ANSWERS
Slide 27: Disclaimer
Disclaimer Tornos Holding Ltd is confirming its best efforts to present accurate and up- to-date information in this document, Tornos Holding Ltd gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liabili
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