Gurit Holding Ag · SIX:GURN
Gurit — FY2018 Earnings Presentation
35 slides from Gurit's earnings presentation, Feb 28, 2019
Slide 1: Gurit 2018 Results
Gurit 2018 Results Media and Analyst Conference Zurich, February 28th, 2019 DELIVERING THE FUTURE OF COMPOSITE SOLUTIONS www.gurit.com
Slide 2: Introductory Statement
Introductory Statement This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such stateme
Slide 3: Agenda
AGENDA 1 Strategy Update 2 Business Update 3 Financial Results 2018 4 End of webcast & Questions Slide 3 Gurit 2018 Results – 28 February 2019 Corporate
Slide 4: Gurit Strategy Update 2018
Gurit Strategy Update 2018 Rudolf Hadorn, CEO
Slide 5: Gurit Strategy Update 2018
Gurit Strategy Update 2018 Ambition 2019 Net Sales 2019 are expected to exceed 500m CHF Operating Profit 2019 is expected to be in 8-10% RoS range Strategic decisions of 2018 Gurit adjusted strategic market priorities: Strategic market: Wind Energy Key niche markets to develop: Aerospace and
Slide 6: Distribution of sales (continued business)
Distribution of sales (continued business) Aero Marine Industrials 32% Wind 68% Slide 6 Gurit 2018 Results – 28 February 2019 Corporate
Slide 7: Wind Energy Market Growth 2017-2027
Wind Energy Market Growth 2017-2027 8.4% CAGR (GWh) Key comments: 8.4% CAGR 2017 – 27 2019 forecasted as a top year Visibility 2019-21 for strong growth CAGR: Compound Annual Growth Rate Source: Wood Mackenzie Q4/2018 Slide 7 Gurit 2018 Results – 28 February 2019 Corporate
Slide 8: Gurit Offering for Global Wind Market
Gurit Offering for Global Wind Market Core materials (Balsa, PVC, PET, SAN) Tooling Materials >40% >30% market leading market leading in core materials Kitting Niche specialities ca. 30% (prepreg, formulated) market leading Slide 8 Gurit 2018 Results – 28 February 2019 Corporate
Slide 9: Gurit Product Offering 2018/19
Gurit Product Offering 2018/19 Strategic Market Key Niche Markets Market Wind Aero Marine Industrials Offering Core Materials Prepreg Formu- lated Tooling Kitting Engineering Components ( Divestment process) Slide 9 Gurit 2018 Results – 28 February 2019 Corporate
Slide 10: Agenda
AGENDA 1 Strategy Update 2 Business Update 3 Financial Results 2018 4 Questions Slide 10 Gurit 2018 Results – 28 February 2019 Corporate
Slide 11: Gurit 2018 Business Update
Gurit Gurit 2018 Business Update
Slide 12: Sales dynamics 2018 over 2017
Sales dynamics 2018 over 2017 (at constant rates) Slide 12 Gurit 2018 Results – 28 February 2019 Corporate
Slide 13: Key Financial Notes 2018
Key Financial Notes 2018 Net Sales Growth CHF reported FX Adj. FX & Acq. adj. Total 18.0% 15.7% 6.6% Continued Operations 20.8% 18.5% 8.9% Discontinued Operations -28.2% -30.7% -30.7% Operating Profit and RoS 2018 2017 Total 6.7% 10.0% Continued Operations 11.0% 10.9% Discontinued Operations -113.9%
Slide 14: Key Business Notes 2018
Key Business Notes 2018 Organisational changes Aerospace became an own Business Unit Nomination of Michael Muser new GM Aero Emiliano Frulloni nominated new CTO Michael Muser Product introductions Kerdyn® Green PET foam to Wind Market Balsaflex™ Lite coated Balsa to Wind Market Emiliano Frul
Slide 15: Key Business Notes 2018
Key Business Notes 2018 Sales Growth Indonesian Balsa JV site ramping up Tooling site expansion in China completed Operating Efficiency Merge of UK Prepreg business into Gurit Spain Tooling footprint changes: NL site closed, PL site transformed Mergers & Acquisitions Acquisition of JSB (Gu
Slide 16: Organization chart
Organization chart Chief Executive Officer (CEO) Rudolf Hadorn Chief Financial Officer Tooling (CFO) General Manager Angelo Quabba Bing Cheng Chief Technology Officer Composite Materials (CTO) General Manager Emiliano Frulloni Stefan Gautschi Head of Group Kitting Human Resources General Manager Han
Slide 17: Development in Key Markets
Development in Key Markets Gurit
Slide 18: Wind Energy Materials Results 2018 & Outlook 2019
Wind Energy Materials Results 2018 & Outlook 2019 MCHF Wind Energy: Quarterly Net Sales Net Sales 2018: CHF 132.2m (CY 2017: 128.2m) 40 35,8 34,3 Growth by 3.1% (FX adjusted: 0.7%) vs. CY 2017 35 31,6 32,4 29,7 Good demand in Europe and Americas, stable in China, 30 still weak in India. 25 20 15
Slide 19: Tooling Results 2018 & Outlook 2019
Tooling Results 2018 & Outlook 2019 MCHF Tooling: Quarterly Net Sales Net Sales 2018: CHF 118.5 m (2017: CHF 91.8 m) 40 35,5 35 Growth of 29.1% (currency-adjusted: 27.0%) vs. CY 2017 30 29,1 29,3 25,5 24,7 Strong growth from existing and new regional and global customers, 25 market share gains 2
Slide 20: Gurit Kitting Results 2018 & Outlook 2019
Gurit Kitting Results 2018 & Outlook 2019 Net Sales 2018: CHF 28.9 m WTG OEMs Blade OEMs (Consolidated as of mid October 2018) Customer base Attractive Business Focus 2019 Global niche market 6 560 FTEs footprint in the mature Manage Gurit Kitting as a self contained business wind industry product
Slide 21: Gurit Kitting (JSB) Global Platform
Gurit Kitting (JSB) Global Platform Gurit Kitting (JSB) production sites located in global wind blade production clusters The wind blade kitting industry’s only truly global setup Well invested production setup across all sites Flexible production setup allowing to follow our growing customers Globa
Slide 22: Aerospace Results 2018 & Outlook 2019
Aerospace Results 2018 & Outlook 2019 MCHF Aerospace: Quarterly Net Sales Net Sales 2018: CHF 49.9m (CY 2017: 47.5m) 14 13,2 12,9 Slight decrease due to supply chain issues at European OEM 12 11,7 12,0 10,5 offset with other customers 10 A380 build rate reduction impact 8 US Business started w
Slide 23: Other Material Markets Results 2018 & Outlook 2019
Other Material Markets Results 2018 & Outlook 2019 MCHF Other Material Markets: Quarterly Net Sales Net sales 2018: CHF 78.9m (CY 2017: CHF 70.7m) 25 Increase by 11.6% (FX adjusted: +10.4%) due to favorable 20,0 20,7 19,6 20 19,0 18,6 demand in the global marine industry and industrial customers i
Slide 24: Agenda
AGENDA 1 Strategy Update 2 Business Update 3 Financial Results 2018 4 Questions Slide 24 Gurit 2018 Results – 28 February 2019 Corporate
Slide 25: Financial Results 2018
Financial Results 2018 Angelo Quabba, CFO DELIVERING THE FUTURE OF COMPOSITE SOLUTIONS www.gurit.com
Slide 26: Net sales analysis by market
Net sales analysis by market Net Sales in MCHF 425.3 Overall currency-adjusted growth of 15.7% in 360.5 net sales (6.6% growth exchange rate and M&A adjusted) Components 230.0 175.2 185.3 195.3 Aerospace Composite Materials achieved solid results in Tooling various market areas. Wind demand was
Slide 27: Customer concentration & Net sales by destination
Customer concentration & Net sales by destination Top 10 customers Net Sales 2018 in % of Total Net Sales 2018 / (2017): 100% Europe 38% (40%) 80% Asia* 2% (2%) 60% India 7% (6%) China 28% (28%) 40% Americas 19% (19%) 20% Rest of the world 7% (5%) 0% 2016 2017 2018 Wind customer Non-Wind customer *A
Slide 28: Income Statement
Income Statement (Continued vs. Discontinued Operations) Income Statement 2018 2017 Variance 2017 vs Continued Operations 2018 MCHF % NS MCHF % NS MCHF %-pts Net sales 410.6 100.0% 340.0 100.0% 70.6 0.0% COGS -319.4 -77.8% -252.3 -74.2% -67.1 -3.6% Gross profit 91.3 22.2% 87.7 25.8% 3.5 -3.6% SG&A -
Slide 29: Operating Profit Bridge FY 2017 vs. FY 2018
Operating Profit Bridge FY 2017 vs. FY 2018 11.0% 10.9% 10.0% 6.7% Continued Operations Slide 29 Gurit 2018 Results – 28 February 2019 Corporate
Slide 30: Income Statement
Income Statement (Total) Consolidated Income Statement 2018 2017 Variance 2017 vs. 2018 MCHF % NS MCHF % NS MCHF %-pts Net sales 425.3 100.0% 360.5 100.0% 64.8 0.0% COGS -343.0 -80.6% -271.6 -75.3% -71.4 -5.3% Gross profit 82.3 19.4% 88.9 24.7% -6.5 -5.3% SG&A -49.4 -11.6% -47.0 -13.0% -2.4 1.4% Oth
Slide 31: Net Working Capital & Capex
Net Working Capital & Capex Net Working Capital Capex 200 MCHF MCHF 16 15,3 30% 29% 25% 14 25% 12,0 25% 12 150 10,5 131,6 20% 10 104,2 8 89,8 100 15% 6 10% 4 50 2 5% 0 0% 0 2016 2017 2018 2016 2017 2018 NWC in MCHF NWC in % of Net Sales Major capex projects in 2018: New production bay at Tooling f
Slide 32: Balance Sheet
Balance Sheet Consolidated Assets Dec 2018 Dec 2017 Variance MCHF % MCHF % MCHF %-pts Current Assets 268.4 73% 201.1 69% 67.3 3% Non-current Assets 101.3 27% 88.8 31% 12.6 -3% TOTAL ASSETS 369.7 100% 289.9 100% 79.8 0% Consolidated Liabilities and Equity Dec 2018 Dec 2017 Variance MCHF % MCHF % MCHF
Slide 33: Operating Profit and RONA Development
Operating Profit and RONA Development Operating profit (% Net sales) RONA (incl. Goodwill) RONA (excl. Goodwill) 21,1% 18,6% FY Operating profit at 6.7%, hampered by 17,6% 14,1% automotive components business. 18,3% 14,4% 16,1% 11,9% 15,0% 9,7% 12,1% 12,2% 9,4% RONA decreased due to lower profit
Slide 34: Cash Flow
Cash Flow Consolidated Cash Flow 2018 2017 Variance MCHF MCHF MCHF EBIT 27.6 35.9 -8.3 Depreciation, amortisation, impairment 16.2 10.8 5.4 Change in working capital -14.3 -9.1 -5.2 Other cash flow from operating activities -10.2 -7.0 -3.2 Net cash flows from operating activities 19.4 30.6 -11.2 Pur
Slide 35: Summary / Outlook
Summary / Outlook Strategic focus on Wind Energy, subsequent JSB (Gurit Kitting) acquisition Gurit “Go-to-Market”: reduce complexity and foster profitable growth Business environment for Wind in 2019-2021 very promising, our offering is strong Sales growth momentum 2018 was positive and shou