Georg Fischer AG · SIX:GF

Georg Fischer — FY2010 Earnings Presentation

37 slides from Georg Fischer's earnings presentation, Mar 1, 2011

  1. Slide 1: Financial Analysts' Conference 2010 financial year

    1 March 2011 Financial Analysts‘ Conference 2010 financial year 1

  2. Slide 2: Georg Fischer Corporation

    Georg Fischer Corporation Financial Analysts` Conference Yves Serra 1 March 2011 CEO 2010 financial year

  3. Slide 3: A strong rebound in sales and profitability

    Georg Fischer Corporation A strong rebound in sales and profitability  Sales increase of 19% to CHF 3.45 billion  Operational profit jumped from CHF -58 million (in 2009) to CHF 180 million  FCF increased to CHF 150 million 1 March 2011 Financial Analysts‘ Conference 2010 financial year 3

  4. Slide 4: All three groups with double-digit growth

    Georg Fischer Corporation All three groups with double-digit growth million CHF +19% 3500 3000 +23% 1500 +10% 3447 1000 2906 +25% 1552 1176 1261 500 1066 721 578 0 Corporation GF PS GF AU GF AC Sales 2009 Sales 2010 1 March 2011 Financial Analysts‘ Conference 2010 financial year 4

  5. Slide 5: Early focus on Asia pays off / Europe & US recovering

    Georg Fischer Corporation Early focus on Asia pays off / Europe & US recovering Share of Corporate Sales Europe 69% (73%) Growth in CHF +14% Asia 18% (15%) Growth in CHF +37% America 11% (10%) Growth in CHF LC ∆ +29% 24% 1 March 2011 Financial Analysts‘ Conference 2010 financial year 5

  6. Slide 6: Operational leverage has kicked in, especially in 2nd HY

    Georg Fischer Corporation Operational leverage has kicked in … specially in 2nd HY million CHF EBIT before special charges 200 193 161 166 157 160 133 Structural 120 plan 107 80 70 73 40 5 0 -40 -63 -80 2006 2007 2008 2009 2010 HY1 HY2 1 March 2011 Financial Analysts‘ Conference 2010 financial year

  7. Slide 7: Clear performance improvement in all groups

    Georg Fischer Corporation Clear performance improvement in all 3 groups million CHF +57 EBIT 2009 EBIT 2010 150 137 Turnaround completed at GF AgieCharmilles & GF Automotive 100 80 +97 50 37 +103 22 1) 0 -50 -60 -81 -100 GF PS GF AU GF AC 1) Includes CHF 13 million one-off profit from the sale of th

  8. Slide 8: GF Piping Systems: Double digit growth and EBIT margin

    GF Piping Systems Double digit growth and EBIT margin Sales up by 10% (in LC 16%) well over market average EBIT of CHF 137 million ROS 11.6% Most plants well loaded in 2010 High growth in Asia (in LC 31%) New products add momentum 1 March 2011 Financial Analysts‘ Conference 2010 financial year 8

  9. Slide 9: New plant and sales channels in China

    GF Piping Systems New plant and sales channels in China Direct Web Marketing (Baidu)  GF appears first by searching for „floor-heating“ Beijing Plant (10th factory in China)  200 new apartments installed per day with GF floor-heating systems 1 March 2011 Financial Analysts‘ Conference 2010 financi

  10. Slide 10: New products add momentum

    GF Piping Systems New products add momentum Seewis New diaphragm valve:  Double flow rate  Sales increased 50% 1 March 2011 Financial Analysts‘ Conference 2010 financial year 10

  11. Slide 11: GF Automotive: Premium car market drives sales increase

    GF Automotive Premium car market drives sales increase Sales up 23% (in LC 36%) EBIT of CHF 37 million ROS 2.4% Positive momentum in the car sector Truck sector recovery after mid-year High growth in China 1 March 2011 Financial Analysts‘ Conference 2010 financial year 11

  12. Slide 12: 50% growth in the number one world market

    GF Automotive 50% growth in the number one world market Production of light vehicles in China in million units 30 27,8 25,7 25 13,8% 23,7 21,3 20 18,3 16,7 15 12,8 Suzhou 10 8,5 6,7 5 4,6 2,9 0 2002 2004 2006 2008 2009 2010 2011 2012 2013 2014 2015 Source: J.D. Power, update Dec. 2010 1 March 2011 F

  13. Slide 13: New R&D center in Schaffhausen

    GF Automotive New R&D center in Schaffhausen Focus on vehicle weight reduction  Area: 4,200 sqm  Testing and development of new materials and processes  Design of new parts in iron and aluminium 1 March 2011 Financial Analysts‘ Conference 2010 financial year 13

  14. Slide 14: GF AgieCharmilles: Back to black figures

    GF AgieCharmilles Back to black figures Sales up 25% (in LC 31%) EBIT of CHF 22 million ROS 3.1% Market Asia strongly recovered Customers started to invest again in Europe / US Turnaround achieved 1 March 2011 Financial Analysts‘ Conference 2010 financial year 14

  15. Slide 15: EDM production concentrated in one plant

    GF AgieCharmilles EDM production concentrated in one plant Losone plant (Zandone) Sales +197% in 2010 1 March 2011 Financial Analysts‘ Conference 2010 financial year 15

  16. Slide 16: New factory, new milling machine for China

    GF AgieCharmilles New factory, new milling machine for China Serving the No.1 machine tool market in the world Mio USD 25000 19400 20000 15000 5451 10000 3370 3319 2741 2586 5000 2547 1157 1133 1006 0 SA ly n ia l na ea o ce y zi pa ic an Ita d ra or an hi U In ex Ja m B C K Fr M er G 2002 2007 2008

  17. Slide 17: Consolidated financial statements and financing

    Georg Fischer Corporation Consolidated financial Roland Abt statements and financing CFO

  18. Slide 18: Table of contents

    Table of contents 1 Income statement Docu 2 Sales 3 Foreign exchange rates impact 2009 / 2010 4 Currency impact on sales / EBIT 5 Development personnel expenses 2009-2010 6 Operating and personnel expenses 2008-2010 7 Statement of financial position 8 Free cash flow 9 Net debt and free cash flow 10

  19. Slide 19: Income statement

    Georg Fischer Corporation Income statement million CHF 2010 2009  Sales 3 447 2 906 19% Gross value added 1 228 999 23% Personnel expenses -899 -893 1% EBITDA 329 106 210% Depreciation, amortization -149 -164 -9% EBIT before special charges 180 -58 - Restructuring expenses - -90 - Impairment on goo

  20. Slide 20: Sales by Corporate Groups

    Georg Fischer Corporation Sales by Corporate Groups million CHF Growth ∆ 2010 2009 in LC GF Piping Systems 1 176 1 066 10% 16% GF Automotive 1 552 1 261 23% 36% GF AgieCharmilles 721 578 25% 31% Corporation 3 447 2 906 19% 27% Currency effects reduce sales by CHF 230 million 1 March 2011 Financial A

  21. Slide 21: Currency exchange rates impact 2009 / 2010

    Georg Fischer Corporation Currency exchange rates impact 2009 / 2010 Average rates related to CHF Docu 1.52 EUR 2009 1.48 1.510 1.44 1.40 EUR 2010 1.36 1.382 1.32 1.28 1.24 1.20 1.16 1.12 USD 2009 1.08 1.087 1.04 USD 2010 1.00 1.041 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec EUR 2009 EUR 2010 U

  22. Slide 22: Currency impact on sales / EBIT

    Georg Fischer Corporation Currency impact on sales / EBIT million CHF Sales EBIT 2010 3 447 180 EUR -203 -29 USD -15 -5 Others -12 -4 Total currency impact -230 -38 1 March 2011 Financial Analysts‘ Conference 2010 financial year 22

  23. Slide 23: Development personnel expenses 2009-2010

    Georg Fischer Corporation Development personnel expenses 2009-2010 million CHF 4 48 38 74 95 899 893 9 2009 increase reduction reduction end short- FX effect other 2010 Asia Europe Americas time work changes 1 March 2011 Financial Analysts‘ Conference 2010 financial year 23

  24. Slide 24: Operating and personnel expenses 2008-2010

    Georg Fischer Corporation Operating and personnel expenses 2008-2010 million CHF -22% 230 1943 200 25 35 74 97 30 200 120 1512 1446 2008 sustain. volume other 2009 sustain. non volume other FX 2010 / non effect effects sustain. effect effects effect sustain. sustainable non sustainable 1 March 2011

  25. Slide 25: Statement of financial position: Assets

    Georg Fischer Corporation Statement of financial position: Assets million CHF 2010 % 2009 % Property, plant, equipment 955 1 106 Intangible assets 251 277 Other financial assets 5 8 Deferred tax assets 58 56 Non-current assets 1 269 45 1 447 50 Inventories 589 614 Trade accounts receivable 486 431 O

  26. Slide 26: Statement of financial position: Liabilities and equity

    Georg Fischer Corporation Statement of financial position: Liabilities and equity million CHF 2010 % 2009 % Share capital 82 82 Share premium 179 181 Retained earnings 819 844 Non-controlling interests 44 45 Equity 1 124 40 1 152 40 Non-current liabilities 878 750 Current liabilities 836 1 013 Liabi

  27. Slide 27: Free cash flow

    Georg Fischer Corporation Free cash flow million CHF 2010 2009 EBITDA 329 106 Changes in net working capital -17 213 Income taxes / interest paid -54 -47 Other changes -15 -30 Cash flow from operating activities 243 242 Additions to property, plant and equipment -124 -148 Acquisitions / divestitures

  28. Slide 28: Net debt and free cash flow

    Georg Fischer Corporation Net debt and free cash flow million CHF Net debt Free cash flow Net debt / EBITDA 700 700 0.7x 0.6x 1.4x 19.7x 1.0x 600 600 500 500 400 400 298 300 243 300 200 150 200 94 100 100 324 264 546 472 321 0 0 -100 -197 -100 -200 -200 2006 2007 2008 2009 2010 1 March 2011 Financia

  29. Slide 29: Key figures

    Georg Fischer Corporation Key figures million CHF 2010 2009  Sales in % 19 -35  Sales in % (organic growth) 27 -33 Return on Sales (EBIT margin) in % 5.2 -2.0 Net profit / (loss) in % of sales 3.1 -8.2 Cash flow from operating activities in % of sales 7 8 ROIC in % 9 -12 Return on Equity in % 10 -

  30. Slide 30: Share information

    Georg Fischer Corporation Share information CHF Docu 600 550 500 450 400 350 300 250 200 Dez.09 Jan.10 Feb.10 Mrz.10 Apr.10 Mai.10 Jun.10 Jul.10 Aug.10 Sep.10 Okt.10 Nov.10 Dez.10 million CHF GF SPI 2010 2009 Market capitalization as per December 31 2 163 1 073 - in % of equity 200 97 Price-Earnings

  31. Slide 31: Outlook

    Georg Fischer Corporation Outlook Yves Serra CEO

  32. Slide 32: A positive outlook for 2011

    Georg Fischer Corporation A positive outlook for 2011  Strong order book, a good starting point  Low cost base, specially in Europe  Strong presence in growth markets brings additional momentum  Uncertainties remain regarding currencies and raw material prices Further top and bottom line growth

  33. Slide 33: Targets for 2012 confirmed

    Georg Fischer Corporation Targets for 2012 confirmed  Return on sales (EBIT margin) 8%  Net debt below CHF 400 million  Return on Invested Capital (ROIC) 15% 1 March 2011 Financial Analysts‘ Conference 2010 financial year 33

  34. Slide 34: Strategy 2015: focus on performance and cyclicity reduction

    Georg Fischer Corporation Strategy 2015: focus on performance and cyclicity reduction 1 March 2011 Financial Analysts‘ Conference 2010 financial year 34

  35. Slide 35: Strategy 2015: focus on performance and cyclicity reduction

    Georg Fischer Corporation Strategy 2015: focus on performance and cyclicity reduction  Foster competitiveness and technological leadership  Expand GF Piping Systems  Further boost presence in growth markets 1 March 2011 Financial Analysts‘ Conference 2010 financial year 35

  36. Slide 36: Foster technological leadership

    Georg Fischer Corporation Foster technological leadership Water and energy Vehicle weight conservation reduction High precision manufacturing 1 March 2011 Financial Analysts‘ Conference 2010 financial year 36

  37. Slide 37: Disclaimer

    Disclaimer This document is for presentation The management of Georg Fischer purposes only and should not be does not accept any liability whatsoever construed as an offer, invitation or with respect to the use of this solicitation to subscribe for, purchase presentation. or sell any investment. Nei

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