Rieter Holding Ag · SIX:RIEN
Rieter — H1 2022 Earnings Presentation
26 slides from Rieter's earnings presentation, Jul 19, 2022
Slide 1: Half-Year Results 2022
Half-Year Results 2022 Media and Investor Presentation, July 19, 2022 Dr. Norbert Klapper, CEO Kurt Ledermann, CFO
Slide 2: Key Messages
Key Messages Market success through technology leadership, profits strongly impacted by significant cost increases and supply chain bottlenecks ‒ Order intake of CHF 869.4 million, order backlog of more than CHF 2 100 million ‒ Sales of CHF 620.6 million, preproduced deliveries in the three-digit mi
Slide 3: Order Intake
Order Intake CHF million ‒ Order intake HY1 2022 without acquisitions significantly above 5-year average +22% 975 ‒ Reason: regional shift of demand 869 ‒ Investments outside China 693 ‒ Investments in competitiveness of Chinese spinning mills 570 ‒ Normalization expected ‒ Long delivery times of eq
Slide 4: Rieter Group – Order Intake (1)
Rieter Group – Order Intake (1) Rieter benefits from regional shift of demand and successful strategy implementation Market Technology System ‒ Regional shift continues ‒ Rieter’s value proposition ‒ Ring/compacting technology “lowest cost per kg yarn” representing >80% of global ‒ Investments outsi
Slide 5: Rieter Group – Order Intake (2)
Rieter Group – Order Intake (2) Country ranking first half of 2022 confirms regional shift of demand Average 2011-2020 Financial Year 2021 First Half of 2022 1. China 1. Turkey 1. India 2. Turkey 2. India 2. Turkey 3. India 3. Uzbekistan 3. China 4. Uzbekistan 4. China 4. Uzbekistan 5. USA 5. Pakist
Slide 6: Exhibition ITM June 2022 in Istanbul, Turkey
Exhibition ITM June 2022 in Istanbul, Turkey ‒ Automatic winding machine Autoconer X6 presented under Rieter brand ‒ Autoconer X6 completes Rieter’s ring- and compact- spinning systems Next milestone in Rieter’s innovation program ITMA Milano, June 8-14, 2023 Half-Year Results 2022 . Media & Investo
Slide 7: Sales
Sales CHF million ‒ Planned deliveries in the three-million digit range had to be postponed due to missing material +38% (Shanghai COVID lockdown) 621 ‒ Inventory build-up between December 31, 2021 552 and June 30, 2022 of CHF 141.4 million ‒ Sales realization to catch up in HY2 2022, 401 actions in
Slide 8: Margin Deterioration
Margin Deterioration Margin deterioration is a temporary issue, actions in place CHF million (Machines & Systems) Cost Indicators 959 ‒ Aluminum (cost per ton)1 April 30, 2021 2 418.7 US$ 755 April 29, 2022 3 048.9 US$ (+26%) ‒ Container Freight Rate Index 2 Shanghai/Rotterdam April 2021 7 583 US$ A
Slide 9: Key Figures – First Half of 2022
Key Figures – First Half of 2022 CHF million HY1 2022 HY1 2021 Comments ‒ Ongoing regional shift Order intake 869.4 975.3 ‒ Order intake decreases slowly towards normal levels ‒ Sales above previous year driven by order backlog Sales 620.6 400.5 ‒ Sales realization suffers from missing materials and
Slide 10: EBIT – First Half of 2021 vs. First Half of 2022
EBIT – First Half of 2021 vs. First Half of 2022 CHF million -32.5 49.4 -15.8 9.0 -9.1 1.0 -11.2 -10.2 HY1 2021 Volume 2022 Margin Business Structural cost EBIT before Acquisition HY1 2022 at HY1 2021 deterioration group mix acquisition gross margin Half-Year Results 2022 . Media & Investor Presenta
Slide 11: Balance Sheet − Key Figures
Balance Sheet − Key Figures Liquid funds remain at high level in spite of the negative net result CHF million 30/6/2022 31/12/2021 ‒ Liquid funds remain at high level Liquid funds 191.7 249.4 ‒ Net liquidity decrease of CHF -75.1 million mainly related to changes in networking capital Net liquidity
Slide 12: Action Plan (1)
Action Plan (1) Target: Improve sales and profitability in the second half of 2022 Compensate Cost Increases Secure Sales Realization Continue to implement price increases Close collaboration with key suppliers ‒ So far, price increases ~ 20% ‒ Focus on electronics ‒ Further increases if required ‒
Slide 13: Action Plan (2)
Action Plan (2) Machine control system (PLC) Today: New: + ‒ Single supplier ‒ Multiple suppliers (customized hardware, integrated design) (standard hardware, modular design) ‒ Customized software ‒ Standard software Half-Year Results 2022 . Media & Investor Presentation . July 19, 2022 Page 13
Slide 14: Rieter Site Winterthur
Rieter Site Winterthur ‒ The Board of Directors has decided to begin the process for the sale of the remaining land at the Rieter site in Winterthur (Switzerland) ‒ In total, around 75 000 m2 of land will be sold ‒ The Rieter CAMPUS is not part of this transaction; the construction project is progre
Slide 15: Outlook
Outlook ‒ As already reported, Rieter expects demand for new systems to normalize further in the coming months. Due to the capacity utilization at spinning mills, the company anticipates that demand for consumables, wear & tear and spare parts will remain at a good level. ‒ For the full year 2022, d
Slide 16: 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 17: Appendix
Appendix Half-Year Results 2022 . Media & Investor Presentation . July 19, 2022 Page 17
Slide 18: Order Intake by Business Group
Order Intake by Business Group Order intake at CHF 869.4 million was significantly above the average value of previous years CHF million ‒ Order intake CHF 869.4 million, of which CHF 176.6 million from the businesses acquired in 2021 -11% 975 ‒ Development is due to increased investments 869 outsid
Slide 19: Sales by Business Group
Sales by Business Group Sales at CHF 620.6 million in the first half of 2022 (+55% vs 2021) CHF million ‒ In the first half of 2022, the Machines & Systems +55% Business Group realized sales of CHF 383.8 621 million (+75%), although planned deliveries had to be shifted to the second half of 2022 due
Slide 20: Sales Development by Region
Sales Development by Region CHF million ‒ In the Asian countries, Rieter recorded sales of CHF 184.7 million (+35%) for the first half of the financial year 2022 +55% ‒ In China, sales rose by 12% to CHF 76.8 million due to spinning 621 mills investing in the improvement of their competitiveness 1 ‒
Slide 21: Changes in Workforce
Changes in Workforce As of June 30, 2022, increase of the temporary workforce in the production compared to year-end 2021 FTE1 +16% 6’648 5’753 1’169 846 5’479 4’907 December 31, 2021 June 30, 2022 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including temporary employe
Slide 22: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 30/06/2022 31/12/2021 30/06/2021 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 492 731 4 494 024 4 504 419 Average shares (of period) 4 494 683 4 496 214 4 491 418 Share price (
Slide 23: Order Intake by Business Group
Order Intake by Business Group CHF million January – June January – June January – June Difference Difference 2022 2022 2021 adjusted1 w/o acquisition Rieter 869.4 692.8 975.3 -11% -28% Machines & Systems 579.3 455.4 714.8 -19% -36% Components 180.9 143.9 154.9 17% -6% After Sales 109.2 93.5 105.6 3
Slide 24: Sales by Business Group
Sales by Business Group CHF million January – June January – June January – June Difference Difference 2022 2022 2021 adjusted1 w/o acquisition Rieter 620.6 551.7 400.5 55% 39% Machines & Systems 383.8 357.7 218.9 75% 63% Components 159.9 123.4 112.4 42% 12% After Sales 76.9 70.6 69.2 11% 4% 1 Adjus
Slide 25: Sales by Region
Sales by Region CHF million January – June January – June Difference Difference in Difference 2022 2021 local currency Adjusted1 Rieter 620.6 400.5 55% 57% 39% Asian countries2 184.7 137.0 35% 36% 30% China 76.8 68.5 12% 12% -9% India 68.6 51.0 35% 38% 31% Turkey 129.4 59.8 116% 120% 117% North and
Slide 26: Financial Calendar
Financial Calendar Investor Update 2022 October 21, 2022 Publication of sales 2022 January 25, 2023 Deadline for proposals regarding the agenda of the Annual General Meeting February 17, 2023 Results press conference 2023 March 9, 2023 Annual General Meeting 2023 April 20, 2023 Semi-Annual Report 20