Interroll Holding Ag · SIX:INRN
Interroll — FY2019 Earnings Presentation
33 slides from Interroll's earnings presentation, Mar 20, 2020
Slide 1: Annual Report 2019 - Annual press conference
Annual press conference, March 20, 2020 ANNUAL REPORT 2019 (presentation translated from original in German) Paul Zumbühl CEO Interroll Worldwide Group interroll.com
Slide 2: Agenda
Agenda 1. Overview Paul Zumbühl, CEO 2. Added value through Jens Strüwing, Executive Vice President productivity and digitalization Products & Technology 3. Exploiting market opportunities Jens Karolyi, Senior Vice President Corporate Marketing & Culture 4. Result 2019 Paul Zumbühl, CEO 5. Summary a
Slide 3: Highlights 2019
Highlights 2019 Result, innovation, growth, platform strategy RECORD PROFIT STRONG INNOVATION CAPACITIES FOR INTEGRATED SOLUTIONS PIPELINE FOR 2020-2023 GROWTH FOR AUTOMATION Net profit + 8.0% Interroll is consistently Interroll is providing With new products, the Modular Cash flow + 47.8% expanding
Slide 4: Our growth strategy
Our growth strategy Solutions, Markets, Service Geographic Expansion Innovative products Service business Regional presence Service EMEA Americas Asia Pacific - Installed base greatly Innovations - Sorters & Conveyors: - High potential - Localization expanded (400 sorters) Strong growth Value creati
Slide 5: Our business model
Our business model Interroll as enabler Market • Market environment: increasingly dynamic • Material handling market attractive for new entrants, consolidation Interroll • Platform products for globally consistent / tested solutions • Proximity to customers: own network in key markets and industries
Slide 6: Fit for the future
Fit for the future Long-term recipe for success Example: Interroll Sales System (ISS) Example: Interroll Production System (IPS) • Regular "health checks" with the aim of maintaining competitiveness at the highest level • Early analysis and adjustment instead of future restructuring • Orientation to
Slide 7: Tailwind for our future
Tailwind for our future External drivers of internal logistics Faster delivery times Individualisierung Globalization Digitization Flow of goods Sustainable volume solutions 7
Slide 8: Added value through productivity and digitisation
ADDED VALUE THROUGH PRODUCTIVITY AND DIGITISATION Jens Strüwing Executive Vice President Products & Technology interroll.com
Slide 9: Products & Technology
Products & Technology Challenges, opportunities, trends Capacities Innovation Digitization New products and a focus on Offensive to generate added value Interroll‘s dual strategy growth opportunities require for customers and end users. 1. Increasing customer benefit capacity adjustments in all regi
Slide 10: Expansion of our capacities
Expansion of our capacities Global expansion EMEA Americas Asia-Pacific • High utilization of • High potential for sorter • Strong growth in the conveyor and sorter projects region, special potential in production SE Asia • Additional plant in Hiram • New plant in Mosbach to (Atlanta, USA) • New fac
Slide 11: Innovation
Innovation The platform strategy as a starting point 11
Slide 12: Innovation
Innovation The platform strategy as a starting point 12
Slide 13: Innovation in practice
Innovation in practice Interroll High Performance Crossbelt Sorter (HPCS) Relevant markets: • CEP* • Distribution NEW: MX025H High-performance segment High Performance Crossbelt Sorter Relevant markets: • E-Commerce PROVEN: • Fashion ST6160/ST 6130 • Distribution Horizontal/Vertical Middle segment C
Slide 14: Digitalization at Interroll
Digitalization at Interroll Triple benefit: Production, product and process Digitalization of the Productivity Customer benefits Digitalization of the Production products • Digitization Product Lifecycle • Example EC 5000: Management Big Data Production Products • IPS: Interroll Production System as
Slide 15: Seizing opportunities, realizing potential
SEIZING OPPORTUNITIES, REALIZING POTENTIAL Jens Karolyi Senior Vice President Corporate Marketing & Culture interroll.com
Slide 16: Interroll positions itself as market leader
Interroll positions itself as market leader Trendsetter, solution provider, partner, authority • Strategic positioning measurably driven forward • Extended range of web tools implemented • Strategic partnerships concluded with institutes and consultants • Presence at 31 trade fairs worldwide (2019)
Slide 17: Video 7-Eleven
Video 7-Eleven Perfect Equation 17
Slide 18: Rolling On Interroll
Rolling On Interroll The strongest partner network in our industry • Partners: Locally leading medium-sized system integrators/ OEMs, who are growing even more dynamically with Interroll • About 100 partners worldwide (40 countries, all continents) • Potential: Very high growth, new business areas,
Slide 19: Interroll Academy - a statement
Interroll Academy - a statement Company-wide campus for a 'global mindset • Interroll strategy becomes accessible to all employees • Leadership: 200 managers trained • Cooperation with renowned partners (e.g. Krauthammer and Fraunhofer) • Mobile Learning, podcasts, collaboration tools • Self Assessm
Slide 20: Result 2019
RESULT 2019 Paul Zumbühl CEO Interroll Worldwide Group
Slide 21: Growth in all product groups
Growth in all product groups Overview of the 2019 financial year Rollers: Sales 2019: CHF 110.1 million (+ 1.9% vs. previous year) • Strong sales growth PY on a solid basis • Record in Europe (> 8m units conveyor rollers) Drives and controls: Sales 2019: CHF 172.4 million (+ 1.3% vs. previous year)
Slide 22: Growth in all product groups
Growth in all product groups Overview of the 2019 financial year Pallet & Carton Flow: Sales 2019: CHF 54.0 million (-10.7% vs. PY) • Cyclicality of projects • Interfaces with MPP create new market potential Conveyors & Sorters: Sales 2019: CHF 223.2 million (+ 1.2% vs. PY) • Modular Conveyor Platfo
Slide 23: Order intake in CHF million
Order intake in CHF million By product groups 600 64 Orders received CHF 546.5 million 55 -7.8% (PY: +29.4%) 2019 in local currencies: -5.7% 243 215 Net sales CHF 559.7 million 300 -0.0% (PY: +24.2%) 2019 in local currencies: +2.3% 176 169 Incoming orders to net sales 109 108 0.98 (PY: 1.06) 0 1512
Slide 24: Net sales in CHF million
Net sales in CHF million By regions EMEA as a strong core region. Loss of major projects in the USA compensated by numerous smaller projects. Net sales share Growth 19 EMEA AMERICAS ASIA 600 16% Asia-Pacific +12,9% 26% Americas -13.8% (one-off 300 effects) 58% EMEA +4,4% 0 1512 1612 1712 1812 1912 2
Slide 25: EBITDA
EBITDA in CHF million EBITDA EBITDA-Margin Better margin, higher efficiency 100 20% EBITDA CHF 96.1 million (+3.1%) 93.2 96.1 EBITDA margin 17.1% (previous year: 16.6%) Increased depreciation and amortisation (IFRS 16), compensated by lower depreciation and amortisation 50 10% (SAP) EBIT CHF 72.3 mi
Slide 26: Net profit
Net profit In CHF million Net Profit Net Profit Margin Lower tax rate (22.2% in 2019 vs. 24.3% in 2018) 60 10% 56.0 51.8 Net profit CHF 56.0 million (+8.2%) (PY: CHF 51.8 million) 30 5% Net profit margin 10.0% (PY: 9.3%) Equity CHF 304.0 million 0 0% (PY: CHF 284.8 million) 1512 1612 1712 1812 1912
Slide 27: Operating cash flow
Operating cash flow In CHF million Higher net profit Operational Cash Flow OP-CF Margin Less inventory and accounts receivable 20% 105 Operating cash flow CHF 99.6 million 99.6 (PY: CHF 67.4 million) Margin: 17.8% 70 67.4 10% Investments CHF 33.6 million 35 (PY: CHF 28.6 million) Free cash flow CHF
Slide 28: Responsible corporate governance strengthened
Responsible corporate governance strengthened • Interroll reaffirms its commitment to responsible corporate governance with progress reports at the end of February each year to the UN Global Compact. • Successes were achieved in the rollout of a code of conduct for suppliers and in further and more
Slide 29: Upcoming General Assembly
Upcoming General Assembly Proposals of the Board of Directors The General Assembly on 8 May 2020 will be proposed: A dividend of CHF 22.50 per share (+2.3%) (FJ: CHF 22,00) The payout ratio reaches 33.7% (PY: 35.9%) Board of Directors: Proposal for the election of Mr. Markus Asch, Deputy CEO of Alfr
Slide 30: Development of the dividend
Development of the dividend Period from 2010 onwards Payout per share Earnings per average outstanding share 70 66.7 in CHF 61.3 46.0 42.6 35 34.5 24.8 24.3 22.5 22.0 22.5 23.0 18.6 16.5 8.0 16.0 7.0 5.0 12.0 8.8 9.0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 30
Slide 31: Summary & Outlook
SUMMARY & OUTLOOK Paul Zumbühl CEO Interroll Worldwide Group interroll.com
Slide 32: Outlook 2020
Outlook 2020 Leading the change in internal logistics Industry management: shaping the evolution of material flow together with the users. New opportunities in food and e-commerce. Innovation & Service: deepening the platform and decentralized intelligence, expanding local service Capacity expansion
Slide 33: Questions
INSPIRED BY EFFICIENCY INTERROLL interroll.com