Gurit Holding Ag · SIX:GURN
Gurit — H1 2014 Earnings Presentation
35 slides from Gurit's earnings presentation, Aug 22, 2014
Slide 1: Gurit 1HY 2014 Results
Gurit 1HY 2014 Results Friday, August 22, 2014
Slide 2: Forward-looking statements
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 statements are made on the bas
Slide 3: Key Messages Business Result 1HY 2014
Key Messages Business Result 1HY 2014 Strong sales development in all businesses and markets, thanks to recovery in the global wind energy market, but also high demand in some segments of the marine market. Component business continues to grow at double-digit rates. Profitability continues to re
Slide 4: Further Key Notes on Business Results 1HY 2014
Further Key Notes on Business Results 1HY 2014 Group CHF 167.0 million; +28.8% CM Wind Energy CHF 66.8 million; +22.8% Net sales CM Other CHF 62.0 million; +13.4% 1HY 2014 Tooling CHF 25.2 million; +136.3% vs 1HY 2013 Automotive CHF 9.1 million; +31.7% Eng. Structures (ES) CHF 4.0 million; +29.8% Op
Slide 5: Net Sales Development by Target Markets
Net Sales Development by Target Markets MCHF 140 Wind Energy Aerospace Industrial & Marine Gurit Composite Materials 120 Wind Energy sales continue to 100 recover steadily 80 Aerospace sales with single- 60 digit growth 40 Further double-digit growing 20 sales in Marine and Industrial 0 applic
Slide 6: Strategy Deployment 2014 – Key Points
Strategy Deployment 2014 – Key Points • Automotive exterior panel press application for bigger series progressed, first pressed parts delivered to first customer • Increased sales effort and successful qualifications for new offerings for existing and new composite materials markets (e.g. visual car
Slide 7: Development by Target Markets
Development by Target Markets
Slide 8: Wind Energy
Wind Energy Slide 8 Wind Energy
Slide 9: Wind Energy – Strategy and Achievements
Wind Energy – Strategy and Achievements Strategy GW installed annually* Core materials: move from #3 to #2 70 60 position with 25-35% market share Carbon prepregs: maintain leading 50 America 40 position with shares >60% Asia / Pacific 30 Optimize factory loadings and increase EMEA 20 efficien
Slide 10: Wind Energy – Results and Outlook
Wind Energy – Results and Outlook Market environment 2014 CHFm Wind Energy: Annual Net Sales USA – Continued at good pace following the 250 recovery during the second half of 2013 Asia – marked improvement, still some price 200 pressure and bad payment conditions 150 requiring containment measur
Slide 11: Aerospace
Aerospace Slide 11 Aerospace
Slide 12: Aerospace – Strategy and Achievements
Aerospace – Strategy and Achievements Strategy Industry Growth Potential – CHFm Maintain leading position in aircraft interiors 600 Accessible Market and certain structural applications at Airbus 500 Develop position in Boeing and others 400 Attack structural material market for 300 200 busine
Slide 13: Aerospace – Results and Outlook
Aerospace – Results and Outlook CHFm Market environment Aerospace: Annual Net Sales 80 Steady Aerospace market with growing build rates for some programs 60 Some cost-out pressures creating 40 new offering opportunities, as well 20 0 Sales 1HY 2014 2009 2010 2011 2012 2013 Net sales of CHF 24.
Slide 14: Industrial & Marine
Industrial & Marine Slide 14 Industrial & Marine
Slide 15: Industrial & Marine – Strategy and Achievements
Industrial & Marine – Strategy and Achievements Strategy Marine CHFm Marine Growth Potential 150 Penetrate all geographies and segments Mediterranean, Middle East and Far East All boat sectors incl. commercial, military 100 and production vessels Asia / Pacific North A me rica Europe Strategy
Slide 16: Industrial & Marine – Results and Outlook
Industrial & Marine – Results and Outlook CHFm Industrial and Marine: Annual Net Sales Market environment 70 Marine business recovering gradually with 60 more momentum in superyacht and race boats, 50 regionally in Europe and UAE 40 Addressable Automotive composite material 30 market growing str
Slide 17: Tooling
Tooling Slide 17 Tooling
Slide 18: Tooling – Strategy and Achievements
Tooling – Strategy and Achievements Strategy Asia: Leader in affordable, quickly available quality moulds for wind turbine blades Internationally: High quality, custom tailored, affordable, quick and higher-volume mould- making and outsourcing partner of choice Penetrate residual European and
Slide 19: Tooling – Results and Outlook
Tooling – Results and Outlook Market environment CHFm Tooling: Annual Net Sales Continuous strong demand for new moulds in 50 all regions Trend to longer, special moulds in small series, 40 Pre-acquisition but also increased needs for repetitive orders 30 for large series of moulds 20 Trend to
Slide 20: Automotive
Automotive Slide 20 Automotive
Slide 21: Automotive – Strategy and Achievements
Automotive – Strategy and Achievements Strategy Automotive Pursue the two strategic avenues: Further grow client/project base for complex, smaller CHFm Size of new Automotive press technology parts market series, class-A, lightweight exterior car body panels Launch press mould technology, clas
Slide 22: Automotive – Results and Outlook
Automotive – Results and Outlook CHFm Market environment Automotive: Annual Net Sales 20 Increasing interest of the automotive market for composite material solutions 15 10 Sales 1HY 2014 5 Net sales of CHF 9.1 million 0 Up +31.7% vs. 1HY 2013 thanks to 2009 2010 2011 2012 2013 larger series a
Slide 23: Engineered Structures
Engineered Structures Slide 23 Corporate
Slide 24: Engineered Structures – Strategy and Achievements
Engineered Structures – Strategy and Achievements Strategy Establish Gurit early in new applications in existing and newly emerging or converting industries Leverage leading composites engineering, prototyping, tooling and manufacturing capabilities Assess new industry trends and approach key
Slide 25: Engineered Structures – Results and Outlook
Engineered Structures – Results and Outlook CHFm Market environment Eng. Structures: Semi‐annual Net Sales 7 Hardly any existing market data 6 Engineering for marine, construction and 5 new special projects 4 Promote Gurit as expert of complex, big, 3 2 lightweight structures 1 0 Sales 1HY 201
Slide 26: Financial Results 1HY 2014
Financial Results 1HY 2014 Gurit ————EE }
Slide 27: Net Sales Analysis by Market
Net Sales Analysis by Market Gurit Composite Materials sales continue to recover. Still solid growth in Gurit Composite Systems and Engineering. Net sales in CHFm Materials Systems & Engineering • Gurit Composite Materials sales confirm the recovery 195.6 155.4 129.7 151.5 167.0 started in summer 20
Slide 28: Operating Profit and EBIT Development
Operating Profit and EBIT Development Operating profit margin of 4.6% during 1HY 2014 Operating profit (CHFm) EBIT (CHFm) 17.2 • Operating profit and profit margin continue to rise thanks to 17.2 9.8 • increased volumes 5.9 • loading and efficiency gains, 7.7 particularly in Tooling 5.9 0.6 -3.3 • s
Slide 29: Operating Profit Bridge 1HY 2013 to 1HY 2014
Operating Profit Bridge 1HY 2013 to 1HY 2014 A largely volume driven, significant recovery of the operating profit Slide 29 Corporate
Slide 30: Exchange Result and Tax
Exchange Result and Tax Stable exchange result and improved tax ratio Exchange result (in CHFm) 0.9 0.3 Closely monitored and hedged 0 balance sheet exposures keep -0.8 -1.6 exchange result small 1HY 2012 2HY 2012 1HY 2013 2HY 2013 1HY 2014 Income tax expense (in CHFm) 3.0 0.4 0.7 0.3 2.5 Improved i
Slide 31: Net Result 1HY 2014
Net Result 1HY 2014 Profit recovery started in summer 2013 continues Consolidated P&L 1HY 2014 1HY 2013 CHFm % NS CHFm % NS Net sales 167.0 100.0% 129.7 100.0% Gross margin 81.9 49.0% 60.5 46.7% Operating expenses -74.3 -44.5% -60.7 -46.8% Operating profit before one-offs 7.6 4.5% -0.2 -0.2% One-off
Slide 32: Cash Flow
Cash Flow Increasing net working capital following sales recovery reduces the cash flow Cash flow from operating activities in CHFm Consolidated Cash Flow 1HY 2014 1HY 2013 1.7 CHFm CHFm EBIT 9.8 0.6 Depreciation, amortisation, impairment 4.5 5.3 Change in working capital -10.6 -4.6 Other cash flow
Slide 33: Balance Sheet
Balance Sheet Strong equity ratio of 67% despite increased net working capital Consolidated Assets Jun 2014 Dec 2013 • The net working CHFm % CHFm % capital increase Cash and cash equivalents 21.7 9% 23.1 10% required some Trade receivables 77.5 32% 63.0 28% additional borrowing Inventories 47.7 20%
Slide 34: Outlook
Outlook Gurit ————EE
Slide 35: Outlook
Outlook Gurit expects similar business conditions for the remainder of 2014 and an operating profit margin around the level achieved in the first half year. Slide 35 Corporate