Bertrandt Ag · XETR:BDT
Bertrandt — Investor Presentation (December 2022)
48 slides from Bertrandt's investor presentation, Dec 15, 2022
Slide 1: Investor Presentation
Investor Presentation Bertrandt AG December 2022
Slide 2: Agenda
01 Bertrandt at a glance Agenda 02 Markets and customer environment 03 Investment Highlights & Opportunities 04 Outlook 05 Back-up 1
Slide 3: Bertrandt at a Glance
INVESTOR PRESENTATION BERTRANDT AT A GLANCE Bertrandt AG 2
Slide 4: Bertrandt Group: Driving Engineering and Digitization
Bertrandt Group: Driving Engineering and Digitization => pie charts!!! Founded by Total Revenues >13,000 More than 50 locations globally Harry Bertrandt FY 2021/22: EUR 1.009bn employees Non-Automotive Porsche AG Free 15% 10% Float 28.97% RoW 52.1% Boysen Foundation Automotive 14.9% 90% Management,
Slide 5: Sustainability Part Of Corporate Strategy: CO2 neutral by 2039
Sustainability Part Of Corporate Strategy: CO2 neutral by 2039 ▪ MSCI re-rating in February 2022 caused by fears regarding staff recruitment and retention challenges in a tight job market ▪ Our answer ▪ Recruitment measures intensified ▪ >50 recruiters on board ▪ Direct approach as standard procress
Slide 6: Human Resources
Human Resources Headcount in Romania ▪ Recruitment initiatives intensified globally ▪ More than 2,000 vacancies in Electronics, Software, Near-shore ▪ Strong growth in all areas including (Non)-Mobility activities, Aerospace, in the US 2017 2018 2019 2020 2021 2022 and in Romania ▪ Around 1,000 coll
Slide 7: Key figures and outlook
Key figures and outlook Total revenues 1,069-1,109 EBIT (EUR million) (EUR million) 1,060 1,021 1,009 92.9 993 994 45.5-77.6 43.8-77.6 917 72.1 849 62.9 60.3 41.7 20.0 15.2 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2015/2016 2016/2017 2017/2018 2018/2019 2019/20
Slide 8: Markets and Customer Environment
INVESTOR PRESENTATION MARKETS AND Bertrandt AG CUSTOMER ENVIRONMENT 7
Slide 9: Current market and customer environment: Automotive industry
Current market and customer environment: Automotive industry Recent customer statements confirm Regulative pressure favourable for growing R&D budgets engineering services Focus on future megatrends (Digitization, Weak car sales due to supply issues, but strong Autonomous Driving, Connectivity, orde
Slide 10: LV production vs. order backlog in Germany
LV production vs. order backlog in Germany LV production Order backlog 10.1 years: average age of car fleet in Germany Germany (Index 2019 =100) 200 − Auftragsbestand 150 der OEMs auf Rekordniveau − Hohe F&E 100 Budgets erwartet 50 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 Source
Slide 11: Current market and customer environment: Aviation
Current market and customer environment: Aviation Aviation industry: − Strong recovery of air traffic after pandemic − Generally growing demand for modern, efficient and smaller aircrafts with long operating range (e.g. A321 XLR) − Attractive market: total A/D R&D volume in Europe: EUR 20.6bn (2019)
Slide 12: Current market and customer environment: Industries
Current market and customer environment: Industries Electrical industry: Med-Tech: Mechanical & Plant Forecast 2023: Forecast 2023: Engineering: Europe +3.0% Gloomy expectations Forecast 2023: Germany +7.0% because of tough comps Germany -2% 12
Slide 13: Investment Highlights & Opportunities
INVESTOR PRESENTATION INVESTMENT HIGHLIGHTS Bertrandt AG & OPPORTUNITIES 13
Slide 14: The automotive R&D market
The automotive R&D market 250 25 ▪ Global automotive R&D market to reach EUR 215bn by 2030f 215 € bn (CAGR 2020-2030f: +3.2%) 200 183 € bn 20 20,5 164 € bn 152 € bn 159 € bn 157 € bn 150 16,0 15 ▪ E/E & SW R&D becomes increasingly important (2020: EUR 53bn, 12,8 2030f: EUR 104bn, CAGR: +7.0%) 12,5 1
Slide 15: R&D investments steadily growing and resilient
R&D investments steadily growing and resilient R&D expenditures ▪ OEM R&D budgets driven by megatrends: 35 ▪ Digitization 30 ▪ Sustainable & Autonomous mobility ▪ Connectivity 25 ▪ Innovations 20 ERU bn ▪ R&D investments define future success and 15 advanced competitive positioning 10 ▪ Normal volat
Slide 16: Corporate Strategy
Corporate Strategy „ALL SERVICES FOR ALL CUSTOMERS“ Automobile Non-Auto Mobility Industries Focus on current and future services Strategic Initiatives Operational Customer New New Competitiveness Success Footprint Services Customers Employees | Culture 16
Slide 17: Expert Organization
Expert Organization Electronics Product Physical Production & Aerospace AM Engineering After Sales Software Experts Design Solutions Testing Solutions Smart Production Solutions Autonomous Mobility Simulation Solutions eMobility Customer Interaction Bertrandt Hamburg & Information Systems Testing So
Slide 18: Philotech in a Nutshell
PHILOTECH IN A NUTSHELL Philotech GmbH Philotech Philotech Philotech UK usb GmbH Iberica S.L. France SAS HQ Taufkirchen ~ 350 Family-owned − Philotech Group (Philotech): founded 1987 − Key customer industries: aviation, automotive, telecommunication − Key services: electronics, software, IT- & cyber
Slide 19: Strategic Rationale
STRATEGIC RATIONALE ▪ Highly complementary footprint: skills/know- "ALL SERVICES FOR ALL CUSTOMERS" how and regional setup enabling Bertrandt to increase customer services Automotive Non-Auto Mobility Industries ▪ Deepening skill-set in megatrends (Software, Electronics, Cyber-Security) Focus on cur
Slide 20: Bertrandt addresses all drivers for individual mobility
Bertrandt adresses all drivers for individual mobility Individual Mobility Remains core need for people Electric Mobility Will dominate in the car segment Commercial Vehicles Electrification/Fuel cell (depending on purpose) Hydrogen and Fuel Cell Important as an alternative technology and for achiev
Slide 21: High-voltage battery test centre
High-voltage battery test centre State-of-the-art test center with an investment volume of over EUR 15 million: ▪ 24 HV channels ▪ 9.600 kW HV ▪ 12 climate chambers ▪ Temperature range from -60 °C to +120 °C Validation of various high-voltage batteries under various climate and load conditions HV co
Slide 22: Bertrandt Powertrain Solution Center
Bertrandt Powertrain Solution Center Volume of capital spending of around EUR 80 million with new buildings at our locations in: ▪ Wolfsburg ▪ Munich (under construction) 8 all-wheel-drive climatic chassis dynamometer with 2 height chambers Altitude simulation up to 4,200 m Temperature range from -2
Slide 23: Bertrandt Medical
Bertrandt Medical Expansion of resources and service portfolio to meet special medical technology requirements Classic product development Increased demand for quality management, regulatory affairs, risk management, equipment qualification and process validations ISO 13485 certification in 2020 to
Slide 24: FY 2021/2022
INVESTOR PRESENTATION FY 2021/2022 Bertrandt AG 24
Slide 25: Highlights FY 2021/2022
Highlights FY 2021/2022 ▪ Double-digit top-line growth of +18.9% yoy to above EUR 1bn (organic sales growth of +15.1% yoy) ▪ EBIT at EUR 41.7m (+108% yoy) | EPS at EUR 2.09 (2020/2021: EUR 0.68) ▪ Philotech contributed to sales and EBIT from day one, co-operation and integration running smoothly ▪ U
Slide 26: At a glance
At a glance P&L | Total revenues EUR 1.009bn (+19% yoy) | EBIT: EUR 41.664m | margin: 4.1% Cashflow | CapEx EUR 31.025m | FCF EUR +8.961m Balance Sheet | BS total: EUR 956.047m | Equity EUR 431.846m | Equity Ratio 45.2% Share price | 33.50 EUR (30.09.2022) Employees | 13,179 26
Slide 27: Total revenues: Corona-trough overcome
Total revenues: „Corona-trough“ overcome Total revenues (in EUR m) − Noticeably improved capacity utilization thanks to increased +160.567 project awards +18.9% 1,059.870 1,021.020 1,009.159 916.582 − Short-time work ended in Germany in the course of the year 848.592 and significantly reduced in Fra
Slide 28: Segment development
Segment development Total revenues (in EUR m) − Digital Engineering: noticeable growth due +19.3% to improved capacity utilization following 500.000 487.354 pandemic-related delays in call-offs in the previous year 408.592 +26.8% 400.000 +26,8% +8.7% 305.059 − Physical Engineering: late-cycle recove
Slide 29: EBIT improved
EBIT improved EBIT and margin (in EUR m) 7.1% − EBIT benefits from increased capacity utilization 72.141 and cost reductions during Corona 5.7% (e.g. infrastructure optimization) 60.322 − Overall inflation with counteracting effect; 4.1% countermeasures such as price increases in place, 41.664 but d
Slide 30: Key expenditure figures and cost ratios
Key expenditure figures and cost ratios Personnel expenses (in EUR m) D&A (in EUR m) Other operating expenses (in EUR m) FYGJ2020/2021 2020/2021 FY GJ2021/2022 2021/2022 FY 2020/2021 GJ 2020/2021 FY GJ 2021/2022 2021/2022 FY GJ 2020/2021 2020/2021 FY GJ 2021/2022 2021/2022 -89.646 -0.479 -18.453 -65
Slide 31: Total revenues and EBIT impacted by…
Total revenues and EBIT impacted by… Utilization Sick leave M&A Headcount activity development Ramp-up Corona- test centers bonus Energy, IT) 31
Slide 32: Earnings performance
Earnings performance Profit before tax Profit after tax EPS (in EUR m) 32.797 (in EUR m) (in EUR) 21.134 2,09 2.09 12.160 6.909 0,68 0.68 GJ 2020/2021 FY 2020/2021 GJ 2021/2022 FY GJ 2020/2021 FY 2020/2021 GJ 2021/2022 FY 2021/2022 GJ 2020/2021 FY GJ 2021/2022 FY 32
Slide 33: Overview P&L
Overview P&L 2021/2022 2020/2021 comparison EUR million % of total EUR million % of total EUR million % Total revenues 1,009.159 1.009.159 100 % 848.592 100 % 160.567 19 % Other operating income 19.806 2% 13.490 2% 6.316 47 % Raw materials and consumables used -108.904 -11 % -72.222 -9 % -36.682 51
Slide 34: CapEx spending reduced
CapEx spending reduced CapitalCapital Expenditures Expenditures (w/o payments from changes in consolidated businesses) (in Mio. EUR) in EUR m − Investments focused on eMobility, 84.9 83.4 but still restrictive 65.8 − Investments in property, plant and 52.5 51.7 equipment down significantly, investme
Slide 35: Financial and asset position
Financial and asset position Equity and equity-ratio Cashflow from operating activities Free Cashflow (in EUR m) (in EUR m) (in EUR m) 45.2% 44.6% 431.846 73.662 35.902 408.828 56.900 8.961 FY GJ 2020/2021 2020/2021 FY GJ 2021/2022 FY 2020/2021 GJ 2020/2021 FY 2021/2022 GJ FY GJ 2020/2021 FY GJ 2021
Slide 36: Payout ratio
Dividend based on known and reliable payout policy*** Dividend, Payout Ratio, Yield (in EUR) 3.00 58% 60% 2.45 2.50 2.50 2.50 2.40 50% 2.20 43% 41% 41% 41% 39% 39% 40% 40% 2.00 40% 2.00 40% Payout ratio 1.60 1.50 30% 1.00 0.85 20% 0.50 0.27 10% 2.4% 2.4% 2.6% 2.6% 2.9% 2.5% 3.9% 0.15 2.5% 0.5% 0.5%
Slide 37: Employees
Employees Employees Workforce development FY 2021/2022 as of September 30th 13.179 12.030 13.500 106 13.000 Nationalities +1,149 − 722 Bertrandt within the Group Outstanding Apprenticeship − 427 Philotech 12.500 12.000 Top career opportunities (top 4) 11.500 GJ 2020/2021 FY 2020/2021 GJ 2021/2022 FY
Slide 38: Outlook
INVESTOR PRESENTATION OUTLOOK Bertrandt AG 38
Slide 39: Forecast FY 2022/2023
Forecast FY 2022/2023 − Regionally heterogeneous economic conditions − External factors (pandemic, energy availability, inflation) outside management's sphere of influence − Environmental policy measures require innovations in mobility and other industries − Growth prospects for Engineering Service
Slide 40: Forecast 2022/2023
Forecast 2022/2023 EUR 60-100m 4,1-7% Positive EUR 25-40m increase EBIT margin Cashflow from CapEx in total revenues (prior year: 4.1%) operating activities 40
Slide 41: Summary: reasons to invest
Summary: reasons to invest ▪ Long-term market experience with established customer relations and deep know-how along the engineering process ▪ Growing end markets: resilient R&D investments driven by innovation pressure and regulation ▪ High level of IT, software & electronic skills => business mode
Slide 42: Back-up Q4 2021/2022
INVESTOR PRESENTATION BACK-UP Q4 2021/2022 Bertrandt AG 42
Slide 43: Q4 2021/2022 at a glance
Q4 2021/2022 at a glance P&L | Total revenues EUR 269.5m (+25.8% yoy, organically: +20.5%) | EBIT: EUR 15.8m | margin: 5.9% Cashflow | CapEx EUR 8.999m | FCF EUR +9.647m Balance Sheet | BS total: EUR 956.047m | Equity EUR 431.846m | Equity Ratio 45.2% Share price | 33.50 EUR (30.09.2022) Employees |
Slide 44: Group P&L Q4 2021/2022
Group P&L Q4 2021/2022 Q4 2021/2022 Q4 2020/2021 EUR million EUR million Total revenues 269.507 214.232 Other operating income 7.132 2.387 Raw materials and consumables used -29.616 -18.894 Personnel expenses -196.995 -169.022 Depreciation -14.929 -13.903 Other operating expenses -19.285 -13.008 EBI
Slide 45: Back-up: Financial calendar
INVESTOR PRESENTATION Bertrandt AG BACK-UP: FINANCIAL CALENDAR 45
Slide 46: Back-up: Financial calendar
Back-up: Financial calendar 15 December 2022 FY 2021/2022, Analyst and Press conference 15 February 2023 Q1 2022/2023 22 February 2023 Annual General Meeting 11 May 2023 Q2 2022/2023, Capital Market Day Ehningen 31 July 2023 Q3 2022/2023 14 December 2023 FY 2022/2023, Analyst and Press conference FY
Slide 47: Legal notice
Legal notice This presentation contains inter alia certain foresighted statements about future developments, which are based on current estimates of management. Such statements are subjected to certain risks and uncertainties. If one of these factors of uncertainty or other imponderables should occu
Slide 48: Contact details
Contact details Markus Ruf Member of the Board, Finance Björn Voss Head of Group Investor Relations Bertrandt AG, Birkensee 1, 71139 Ehningen Vice President Commercial (Bertrandt Ingenieurbüro GmbH) +49 7034 656 13076 bjoern.voss@bertrandt.com www.bertrandt.com 48