Georg Fischer AG · SIX:GF
Georg Fischer — Investor Presentation (October 2004)
30 slides from Georg Fischer's investor presentation, Oct 29, 2004
Slide 1: Investor Presentation – Adding Quality to People's Lives
Georg Fischer Corporation Investor Presentation Adding Quality to People’s Lives Mobility Precision Comfort We make your trip We bring you We shape your pleasant and safe clean water daily life Georg Fischer 29.10.2004 Investor Presentation 2004 2 1
Slide 2: Sales and earnings
Georg Fischer Corporation Sales and earnings Title and Logo Corporation: only Sales [CHF m] 3903 3848 4000 3417 3239 3257 3500 3000 2500 2000 1500 1000 500 0 1999 2000 2001 2002 2003 Corporation excl. Coperion Coperion 29.10.2004 Investor Presentation 2004 4 2
Slide 3: Focused on three core businesses
Focused on three core businesses GF Machine Tools 27% World No. 1 in EDM, tooling and automation; major HSM supplier GF Automotive 50% GF Piping No. 1 in Europe, Systems technology leader 23% worldwide Leading offering worldwide of piping systems in plastic and metal 29.10.2004 Investor Presentation
Slide 4: Structural projects: restructuring planned in detail
Georg Fischer Corporation Structural projects Restructuring planned in detail Sustainable increase in earnings Strengthen capital base Reduction in net debt Structural and Subordinated cost-cutting Divestments convertible bond projects Restructuring plan Financing 29.10.2004 Investor Presentation 20
Slide 5: Structural projects going according to plan
Structural projects going according to plan GF Automotive § Lincoln: Sold + partly relocated § Apc: Sold § Bitterfeld: Sold + partly relocated Wide-ranging action throughout the Corporation GF Piping Systems in the areas of § Genua: Closed § Huntingdon: Closed § Overheads § Bedford: Closed § Schwab:
Slide 6: GF Automotive – Market volume Europe
GF Automotive Pioneering technological development partner and manufacturer of highly durable cast components and systems in iron and light metal for the automotive industry. 29.10.2004 Investor Presentation 2004 11 Market volume Europe Georg Fischer 40% Relevant market volume in the iron casting se
Slide 7: Market trends and divisional sales breakdown
Market trends § Trend towards lighter vehicles § Increasing market share of aluminium by an average of 96 kg up to 122 kg per vehicle until 2010 in Europe (Premium Class 200 kg up to 330 kg) § Shift from Captive Castings (OEM) to Non-Captive Castings § Change from assembled parts to integrated cast
Slide 8: Sales by industry; GF Automotive sales
Sales by industry Commercial vehicles 19% Non- automotive parts 6% Escalators 2% Cars 73% 29.10.2004 Investor Presentation 2004 15 TitleAutomotive: GF and Logo only Sales [CHF m] 1800 1585 1600 1446 1425 1422 1400 1189 1200 1000 800 600 400 200 0 1999 2000 2001 2002 2003 Sales 29.10.2004 Investor Pr
Slide 9: GF Automotive operating profit; product and technology offering
TitleAutomotive: GF and Logo only Operating profit [CHF m] 180 178 168 160 147 146 139 140 120 100 80 71 60 61 60 41 42 40 20 0 1999 2000 2001 2002 20031) EBIT EBITDA 1) EBIT before special charges 29.10.2004 Investor Presentation 2004 17 Unique product and technology offering Iron casting Aluminum
Slide 10: Casting expertise
Casting expertise Segment Shock tower for the aluminium front section of the new 5-Series BMW (E60) Structure ð Substitution of sheet metal components Material Aluminium Process Pressure die 29.10.2004 Investor Presentation 2004 19 Casting expertise Seat back-rest for the Mercedes SLK Segment Body I
Slide 11: Partner of leading brands; More GF per car
Partner of leading brands Selection of customers 29.10.2004 Investor Presentation 2004 21 Strategy GF Automotive More GF per car 29.10.2004 Investor Presentation 2004 22 11
Slide 12: GF Piping Systems
Georg Fischer Core Businesses Piping Systems GF Piping Systems Leading supplier of piping systems in plastic and metal. Application-oriented system solutions and high-quality components for the transportation of water, gas and other liquids in the industrial, utility and domestic installations secto
Slide 13: Market volume – piping systems
Market volume Building Technology 70% Utility Systems 20% Industrial Systems 10% World market Piping Systems CHF 50 billion 29.10.2004 Investor Presentation 2004 25 Market volume industrial and utility systems Georg Fischer 12% Relevant market volume in industrial systems (fittings and valves) in al
Slide 14: Market trends: increasing demand for clean water
Market trends: Increasing demand for clean water n Two thirds of the world’s population have no access to clean drinking water n 30% to 50% water is lost through leakage n Plastics replace metal for water transport 29.10.2004 Investor Presentation 2004 27 Divisional sales breakdown Domestic installa
Slide 15: GF Piping Systems sales and operating profit
TitlePiping GF and Logo only Sales Systems: [CHF m] 1000 887 845 775 760 800 673 600 400 200 0 1999 2000 2001 2002 2003 Sales 29.10.2004 Investor Presentation 2004 29 TitlePiping GF and Logo only Operating profit Systems: [CHF m] 120 117 100 81 81 80 75 73 74 60 38 38 40 32 28 20 0 1) 1999 2000 2001
Slide 16: Unique product and technology offering; best water quality
Unique product and technology offering Industrial applications Utlities Building Technology Increasing need for comprehensive piping solutions from a single systems supplier Air conditioning Ballast systems, sea and fresh water Cooling systems Fresh water systems Water distribution Water treatment,
Slide 17: High-purity water for microchip industry and dialysis
We provide the microchip industry with safe supply of high-purity water Pollen: 20µm Contamination leadsto PVDF HP, the solution for Infrared, the top jointing faulty products high-purity water applications technology 29.10.2004 Investor Presentation 2004 33 Bacteria-free water circulation for the s
Slide 18: Strategy GF Piping Systems: grow with global need for water
Strategy GF Piping Systems Grow with the global need for water 29.10.2004 Investor Presentation 2004 35 Georg Fischer Core Businesses Machine Tools (Agie Charmilles) 18
Slide 19: GF Machine Tools – Market volume EDM & HSM
GF Machine Tools Leading global system supplier in the tool and mould-making sector, with electric discharge machinery and high-speed milling machines, as well as the related automation systems and peripherals. Extremely precise tools and moulds are a decisive competitive element in the mass product
Slide 20: Market trends and divisional sales breakdown
Market trends § Trend towards miniaturizing and micro-/nano-technology § Growing importance to the design (frequent change of model) § Trend to automatized solutions § Increasing demand for precision 29.10.2004 Investor Presentation 2004 39 Divisional sales breakdown Tooling & Automation Electric 7%
Slide 21: EDM & HSM applications by industry; sales
EDM & HSM applications by industry General Telecommuni- mechanics cation Toys 8% 7% 6% Electronics Machinery 14% 5% Medical 5% Household appliances Packaging 16% 4% Watches 4% Other Automobile 6% 25% 29.10.2004 Investor Presentation 2004 41 TitleMachine GF and Logo only Sales Tools: [CHF m] 1'600 1‘
Slide 22: GF Machine Tools operating profit; main product groups
TitleMachine GF and Logo only Operating profit Tools: [CHF m] 140 135 120 111 100 92 80 69 59 60 49 50 40 22 22 20 -6 0 -20 1999 2000 2001 2002 20031) EBIT EBITDA 1) EBIT before special charges 29.10.2004 Investor Presentation 2004 43 GF Machine Tools – Main product groups High-speed milling machine
Slide 23: Unique product and technology offering
Unique product and technology offering HSM EDM Automation & tooling Growing need for precision and automation in the tool and mold making industry Automation & tooling Wire -cutting EDM HSM blow molds Automation, tooling & reference systems Service HSM Automation, tooling & workpiece Die-sinking EDM
Slide 24: Strategy GF Machine Tools
Strategy GF Machine Tools § Enhance no. 1 position as system provider § Profit by the trend to HSM 29.10.2004 Investor Presentation 2004 47 Georg Fischer Corporation Consolidated financial statements and financing 24
Slide 25: Income statement and EBIT margin
Income statement mill. CHF 1st half 04 1st half 03 2003 Sales 1 767 1 596 3 257 Gross value added 673 635 1 272 Personnel expenses -504 -499 -990 EBITDA 169 136 282 Depreciation and Amortization -86 -94 -186 EBIT before special charges 83 42 96 Restructuring plan 9 -131 Impairment Goodwill Die Casti
Slide 26: Free cash flow and net debt
Title cash Free and Logo flow only [mill. CHF] 188 185 200 180 160 143 136 140 120 100 80 65 60 40 20 0 1999 2000 2001 2002 2003 Free cash flow Special charges 29.10.2004 Investor Presentation 2004 51 Net debt [mill. CHF] 1'400 500 450 1'200 400 1'000 350 800 300 250 600 200 400 150 100 200 50 0 0 1
Slide 27: Corporate financing and structure of maturities
Corporate financing Three-stage programme mill. CHF § Subordinated convertible bond November 2003 150 ü § Refinancing Agie Charmilles • Syndicated loan 160 ü • Subordinated loan Georg Fischer 90 ü § Mid-term syndicated loan Georg Fischer 250 ü § Additionally: 3.5% bond 2004 – 2010 175 ü Restructurin
Slide 28: Outlook: potential for GF products in China
Georg Fischer Corporation Outlook Enormous potential for GF products in China Mobility No. of vehicles Homes and “Workshop of the World” expanding at infrastructure 20% p.a. for 1 billion people China now largest market for machine tools (18% of global market) 29.10.2004 Investor Presentation 2004 5
Slide 29: Value potential: medium-term profitability goals
Value potential Medium-term profitability goals § Sales CHF 4 bn • Market recovery • Further progress in operational performance • Organic growth through new applications § EBIT margin (ROS) 8% ( Ü10%) • Through higher contributions § RONOA 18% § ROE 15% +GF+ Medium to long-term financing framework
Slide 30: 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