R. Stahl Aktiengesellschaft · XETR:RSL2

R. Stahl Aktiengesellschaft — R. Stahl — Equity Forum 1on1 Summer Summit 2020

45 slides from R. Stahl Aktiengesellschaft's conference presentation, June 2020

  1. Slide 1: Technology – Efficiency – Growth

    Technology – Efficiency – Growth Equity Story June 2020

  2. Slide 2: Disclaimer

    Disclaimer This presentation was prepared by R. STAHL AG and is solely for information purposes. It may not be reproduced, distributed or published without the prior consent of R. STAHL AG. This presentation contains forward-looking statements. Such forward-looking statements are based on certain as

  3. Slide 3: Agenda

    Agenda 1 Company Overview 2 Driving Efficiency – R. STAHL 2020 3 Actual Business Update 4 Preparing for Growth 5 Appendix Equity Story June 2020 3

  4. Slide 4: R. STAHL Has a Tradition of More Than 140 Years

    R. STAHL Has a Tradition of More Than 140 Years in Pioneering Mechanical And Electr(on)ical Technologies 1876 Rafael Stahl founded the company 1890 World's first circular loom with electric individual drive 1926 Development and production of explosion-protected, electrical control switches and contr

  5. Slide 5: R. STAHL Today – A Leading Global Player With a 100% Focus on Explosion Protection

    R. STAHL Today – A Leading Global Player With a 100% Focus on Explosion Protection Total Market Size*: ~ €3.7bn (2018) Market #2 in Europe in explosion protection, Position #3 worldwide Markets Oil & Gas, Chemicals, Pharma, &Customers Food & Beverage, Shipbuilding Sales FY 2019: Production 7 sites i

  6. Slide 6: Fragmented Competitive Landscape in Explosion Protection

    A Small Number of Key Players Dominate the Fragmented Competitive Landscape in Explosion Protection Global market shares of relevant competitors* Small players Middle-sized players >5% 2-5% <2% * Company estimates for IECEx/ATEX certification, 2018 Equity Story June 2020 6

  7. Slide 7: Complete, Innovative And Market Leading Portfolio

    R. STAHL Offers Its Customers a Complete, Innovative And Market Leading Portfolio Electromechanical Light fittings & Network solutions Human machine components signalling devices interfaces  Connectors  #1 in LED technology  Field Bus  Displays  Enclosures  Signalling devices  Remote I/O  Pa

  8. Slide 8: We Serve Process Industries That Handle Potentially Explosive Dusts, Liquids And Gases

    We Serve Process Industries That Handle Potentially Explosive Dusts, Liquids And Gases World market by industry sectors – IECEx/ATEX 2017-2022 No impacts from COVID-19 included Other CAGR (2017-2022 E) Oil and gas 2) 16 20 Oil and gas 5.4% Shipbuilding Petrochemical sector 4.8% 5 Chemical industry 3

  9. Slide 9: We Have a Global Presence to Serve Our International Customers

    We Have a Global Presence to Serve Our International Customers Production and sales network R. STAHL Subsidiaries Asia R. STAHL Ex-Proof Shanghai, China Headquarters R. STAHL (P) Ltd. R. STAHL AG Chennai, India Waldenburg, R. STAHL K.K. Subsidiaries Americas Germany Kawasaki-shi, Japan R. STAHL Ltd.

  10. Slide 10: Driving Efficiency – R. STAHL 2020

    Agenda 1 Company Overview 2 Driving Efficiency – R. STAHL 2020 3 Actual Business Update 4 Preparing for Growth 5 Appendix Equity Story June 2020 10

  11. Slide 11: Until 2017, Strong Sales Growth Did Not Prevent Margin Contraction

    Until 2017, Even Strong Sales Growth Did Not Prevent Our Margin From Continuous Contraction Development of R. STAHL 2008–2019 Sales Negative "economies of scale" in €m Downturn in a declining market R. STAHL 2020 EBITDA personnel expenses clearly visible 350 304 309 313 300 291 287 280 268 275 250 2

  12. Slide 12: Main Causes of Margin Contraction

    Main Causes of Margin Contraction Were Inefficiencies in Organization, Production, Portfolio and Processes Analysis of R. STAHL’s former operating model until 2017:  Global production capacities significantly underutilized; responsibilities not clearly defined  Less than 1/5 of all sales items mad

  13. Slide 13: Unique Set of Strengths While Addressing Significant Challenges

    We Can Build on a Unique Set of Strengths While Addressing Our Significant Challenges Strengths Challenges Market position Organisation and structures  #2 in Europe, #3 worldwide  Complex global in explosion protection organization  Global presence in all key markets  High product complexity  S

  14. Slide 14: In 2018, We Started to Modernize Our Operating Model

    In 2018, We Started to Fundamentally Modernize Our Operating Model in All Key Areas Efficiency program “R. STAHL 2020“ Sustainable growth Piktogramm Build a central, globally responsible Group organization Piktogramm Optimize product portfolio  organically  through selective Piktogramm Professiona

  15. Slide 15: Our Efficiency Measures Are Well Under Way

    Our Efficiency Measures Are Well Under Way Current status of R. STAHL 2020 Piktogram  New Group organization established as of 1 April, 2018 Central Group organization m  All key positions filled  Product variety reduced by >1/3 Product portfolio  No loss of sales or customers  Standardized ris

  16. Slide 16: Successful Execution of Efficiency Measures Drives Margin

    Successful Execution of Efficiency Measures Drives Margin Sales & margin development R. STAHL H1 2017 until H2 2019 EBITDA pre* €m excl. IFRS 16 in % of sales 160 20 Tausende 144 142 140 132 136 136 133 120 15 12.2 100 9.8 80 10 60 6.1 9.2 4.1 4.7 7.3 40 5 20 0.1 0 0 H1 2017 H2 2017 H1 2018 H2 2018

  17. Slide 17: FY 2019: Delivered on Repeatedly Lifted EBITDA pre Guidance

    FY 2019: Delivered on Repeatedly Lifted EBITDA pre* Guidance Guidance EBITDA pre* vs Actual FY 2019 €m 28 – 30 >30 30.4 26 – 29 Additional comments 15.4  Sales of €275m in FY 2019 at the lower end of the guidance corridor of €275m to €280m  FY 2019 includes €7.6m tailwind FY 2018 Outlook Outlook O

  18. Slide 18: FY 2019: Sales Down 1.9% – Decline in Project Business

    FY 2019: Sales Down 1.9% – Decline in Project Business Mitigated by Higher Component Sales Sales R. STAHL FY 2019 vs. FY 2018 by region €m FY 2019 FY 2018 Change Germany Germany 62.5 70.3 -11.1% 21% 23% Central region* Central region* 120.9 116.1 +4.1% Americas Americas 34.5 31.2 +10.6% FY 2019: 12%

  19. Slide 19: FY 2019: Strongly Improved Profit

    FY 2019: Strongly Improved Profit Due to Better Product Mix and Efficiency Gains, Additional Support From IFRS 16 Key data of Income Statement €m FY 2019 FY 2018 Change Comments Sales 274.8 280.1 -1.9%  Cost of materials ratio improved Other operating income 13.7 13.8 -0.4% 210 basis points yoy to

  20. Slide 20: Lower Restructuring Charges Illustrate Maturity of Efficiency Measures

    FY 2019 Lower Restructuring Charges Illustrate Maturity of Efficiency Measures – Further Decline Expected in 2020 Reconciliation of EBITDA to EBITDA pre* €m FY 2019 FY 2018 Change Comments EBITDA pre* 30.4 15.2 +15.2  Declining restructuring charges Exceptionals* -6.0 -6.2 +0.2 indicate good progre

  21. Slide 21: FY 2019: Solid Free Cash Flow Lowered Net Debt Further

    FY 2019: Solid Free Cash Flow Lowered Net Debt Further Key data of Cash Flow Statement €m FY 2019 FY 2018 Change Comments Net profit 1.3 -7.0 +8.3  Improved profitability and a €7.1m Depreciation and amortization 18.9 13.6 +5.3 positive impact from IFRS 16 drove Changes in deferred taxes 1.0 -0.2 +

  22. Slide 22: Net Debt Down by ~€18m to Low Single Digits in 2019

    Improved Margins And Focused Cash Management Drove Down Net Debt* by ~€18m to Low Single Digits in 2019 Quarterly net debt* development of R. STAHL – 1 January 2017 through 31 December 2019 27.5 23.0 21.8 20.4 Ø = 20.9 18.4 18.1 16.9 Δ ~ 18 8.4 5.5 3.3 4.2 2.6 2.5 Ø = 3.2 31 Dec. 31 Mar. 30 June 30

  23. Slide 23: Actual Business Update

    Agenda 1 Company Overview 2 Driving Efficiency – R. STAHL 2020 3 Actual Business Update 4 Preparing for Growth 5 Appendix Equity Story June 2020 23

  24. Slide 24: Q1 2020: Sales Held Back by Delayed Deliveries

    Q1 2020: Sales Held Back by Delayed Deliveries, Order Intake at Record High Since Four Years Key financial data €m Q1 2020 Q1 2019 Change Comments Sales 65.1 67.5 -3.6%  Partly interrupted logistics and EBITDA pre* 4.7 7.7 -38.6% receipt of goods at customers’ end EBITDA 4.7 6.3 -25.7% held back de

  25. Slide 25: Q1 2020: Strong Order Intake and Order Backlog

    Q1 2020: Strong Order Intake in Q1 2020 and Softer Sales Drive Order Backlog Order intake and order backlog R. STAHL Q2 2018 through Q1 2020 Comments Order intake Order backlog  Orders in 2019 at prior year’s level 89 despite higher focus on improved 86 79 80 gross margin 76 77 73 71 67 70 69 69 68

  26. Slide 26: Outlook 2020: Corona Pandemic Weighs Heavily on World Economy and Oil Markets

    Outlook 2020: Corona Pandemic Weighs Heavily on World Economy and the Oil Markets IMF, World Economic Outlook (April 2020) Rystad Energy, COVID-19 Report (April 2020) % GDP growth year-on-year, outlook in spring for current year 4.9 4.2 4.4 3.7 3.9 3.5 3.3 3.6 3.5 3.5 3.3 3.2 -1.3 -1.7% lower vs. fi

  27. Slide 27: Early Measures to Minimize COVID-19 Impact

    We Have Taken Early Measures to Minimize the Impact of the COVID-19 Pandemic on Employee Health and Operations February  Procurement strategy implemented to secure supply 2020 with critical raw materials  Consistent communication to customers started March  Crisis team with medical expertise esta

  28. Slide 28: Managing Turbulent Times

    Managing Turbulent Times Piktogramm  Effective containment of COVID-19 at our facilities Health  Uninterrupted operations in all sales and production sites (only Chennai (India) closed for some Piktogramm weeks due to country-wide lockdown) Operations  Lost sales in 5M 2020 due to supply problems

  29. Slide 29: Outlook R. STAHL FY 2020

    Outlook R. STAHL FY 2020: Only Moderate Sales Decline Expected Amid a Global Recession Guidance FY 2020 Sales between €260m and €275m, equivalent to a year-on-year decline of 5% at most EBITDA pre* at low double-digit million Euro Assumptions: Positive Free Cash flow  Order intake sequentially down

  30. Slide 30: Preparing for Growth

    Agenda 1 Company Overview 2 Driving Efficiency – R. STAHL 2020 3 Actual Business Update 4 Preparing for Growth 5 Appendix Equity Story June 2020 30

  31. Slide 31: Focus Increasingly Turns to Growth Again

    With Most Efficiency Measures Reaching Maturity, Focus Increasingly Turns to Growth Again Consolidation & house keeping Growth & strategic development Central Group organization Data driven management Complexity reduction Portfolio management Lean fundamentals Lean operations Sales Processes Sales E

  32. Slide 32: Market Transparency: Prerequisite For The Right Allocation of Resources

    Market Transparency: Prerequisite For The Right Allocation of Resources Basic strategic decisions Internal Market potential Market insights  Interviews / Questionnaires Prerequisites:  Branch reports  Target  Information system (Trends,  Studies news to responsible staff)  Branches/ Branches i

  33. Slide 33: BDM, Listing & Feed: Strategically Preparing Our Markets

    BDM, Listing & Feed: Strategically Preparing Our Markets Project Lifecycle EPC/DCS/ EPC/DCS/ OEM Installation & Conceptual Pre-FEED FEED OEM Operation Maintenance Detailed Commissioning Procurement Engineering OEM End-user Time for R. STAHL Technology  Spec-In to influence Purchasing  Approved Ven

  34. Slide 34: LNG Supply Chain: Growth in Natural Gas

    LNG Supply Chain: Growth in Natural Gas Is Expected to Outgrow Oil And Coal Potential for R. STAHL in the LNG supply chain Natural Gas Processing & Shipping Regasification End User Production Liquefaction (LNG Train) Gas LNG LNG Gas Upstream Market Located at LNG ports LNG Large Vessel Located at LN

  35. Slide 35: Hydrogen: Versatile And Carbon Free Energy Carrier

    Hydrogen: Versatile And Carbon Free Energy Carrier With Huge Potential Value Chain Sales potentials  Short term focus on H2 fueling stations - in 2020: 100 new stations in EU (50 in Germany, >1,000 worldwide)  R. STAHL products for compressed gas vessels, pipelines, electrolyzer, tank systems  Sa

  36. Slide 36: First Example: Hydrogen Fueling Station Electromach

    First Example: Hydrogen Fueling Station Electromach Container solution and functional safety concept Service Concept • Engineering Service • SIL (safety integrity level) verification • Software assistance • Design and engineering of components (system Example illustration of permanent and temporary

  37. Slide 37: Digitalization: Wide Range of Digital Solutions

    Digitalization: We Already Have a Wide Range of Digital Solutions Example of R. STAHL‘s solutions today Control and visualization of process or integration in existing Asset Management System (AMS) Communication protocols: Profinet ModbusTCP Connectivity infrastructure EthernetIP Others Physical lay

  38. Slide 38: Digital Solutions to Control Light And Heating Systems

    R. STAHL Already Offers Digital Solutions to Control Light And Heating Systems Example: X-Connect (R. STAHL Tranberg)  R. STAHL is supplier for the first fully electric and autonomous container ship without emissions  Fully automated control of light and heating systems  Control staff can be loca

  39. Slide 39: Identify Gaps in Services, Products & Systems

    We Need to Identify Gaps in Services, Products & Systems to Fully Exploit The Potential of Digitalization Today's & potential future solutions Available today Cross-company analysis and optimization Operation optimization Ensure operation Data analysis Services Saving data ? Recording data Commissio

  40. Slide 40: Digitalization Provides Opportunities in Smart Manufacturing

    Digitalization Also Provides Huge Opportunities in Smart Manufacturing Status & Outlook  RFID for automatic serial number recording  Mobile data logging in logistics  Digital manufacturing documents in conjunction with CAE project  Requirements analysis for MES system  Requirements analysis ass

  41. Slide 41: Digitalization Will Change The Way We Do Business

    Digitalization Will Change The Way We Do Business – And Thus Will Be Essential in Our Strategy Over The Next Decade We will keep changing! Software Digitalization TCO Vertical integration 2030 today Vision System integration Cyber security Evaluation Strategy New business models Horizontal integrati

  42. Slide 42: Appendix

    Agenda 1 Company Overview 2 Driving Efficiency – R. STAHL 2020 3 Actual Business Update 4 Preparing for Growth 5 Appendix Equity Story June 2020 42

  43. Slide 43: Major Impacts of IFRS 16 on Financial Statements and KPIs in FY 2019

    Major Impacts of IFRS 16 on R. STAHL’s Financial Statements and KPI’s in FY 2019 Income Statement & Cash Flow Statement Balance Sheet €m FY 2019 €m 31 Dec., 2019 Other operating expenses +7.6 Assets Depreciation & amortization -5.5 Property, plant & equipment +34.1 Financial result -1.0 Deferred tax

  44. Slide 44: Issuer, Contact and Additional Information

    Issuer, Contact and Additional Information Issuer and Contact Additional Information Financial Calendar R. STAHL AG ISIN DE000A1PHBB5 2020 Am Bahnhof 30 July 30 Virtual AGM 74638 Waldenburg WKN A1PHBB Aug 6 Interim Report Q2 2020 Germany www.r-stahl.com Deutsche Boerse RSL2 Nov 12 Interim Report Q3

  45. Slide 45: R. STAHL Am Bahnhof 30 74638 Waldenburg, Germany

    R. STAHL Am Bahnhof 30 74638 Waldenburg, Germany T +49 7942 943-0 | F +49 7942 943-4333 | r-stahl.com

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