Bystronic Ag · SIX:BYS
Bystronic — Conzzeta — FY2018 Earnings Presentation
38 slides from Bystronic's earnings presentation, Mar 20, 2019
Slide 1: 2018 Results Presentation
2018 Results Presentation Zurich, March 20, 2019
Slide 2: Disclaimer
Disclaimer The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and half-year report of Conzzeta AG and on the website www.conzzeta.com prevails. Although the greatest possible care was taken with
Slide 3: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A • Buffet lunch 2018 Results Presentation, March 20, 2019 3
Slide 4: Conzzeta 2018 results summary: Profitable growth and strategic progress
Conzzeta 2018 results summary Profitable growth and strategic progress • Net revenue CHF 1’782.2 m, +20.2% – Comparable growth1) +10.4% • Operating result (EBIT) CHF 146.8 m, +28.3% (adjusted for divestment gain of CHF 8.8 m in 2017) – EBIT margin 8.2% vs 7.6% (adjusted) in 2017 • Group result CHF 1
Slide 5: Strategic progress I: Internationalization & market orientation
Strategic progress I: Internationalization & market orientation Conzzeta Net revenue by region in CHF m +58.3% 1’782.2 Building significant scale over 3 years 1'482.8 491.2 • 58% growth for the Group 1'210.0 1'126.1 • 80% growth in Asia and America 327.0 222.4 • 54% revenue share in Europe, down fro
Slide 6: Strategic progress II: 'Grow' – 'build' – 'improve'
Strategic progress II: ‘Grow’ – ‘build’ – ‘improve’, as defined in 2016 Grow Sheet Metal 2015 2018 Processing revenue from revenue from Grow growth segments growth segments Chemical 68% 78% Specialties Build Outdoor Improve Glass Processing 2016 2017 2018 2018 Results Presentation, March 20, 2019 6
Slide 7: Strategic progress III: People Development & Business Excellence
Strategic progress III: People Development & Business Excellence Group-wide Talent Development Program Launched in 2017; by now, 33 participants delivered 18 specific projects with measurables contribution and benefits under ‘rapid results approach’ Introduction of Global Management Team ~80 most se
Slide 8: Sheet Metal Processing: Another year of strong performance
Sheet Metal Processing Another year of strong performance CHF m 2018 2017 % Operational performance Net revenue 1'013.2 856.1 18.3 • Double-digit growth across regions and client Operating result segments 132.5 98.0 35.2 (EBIT) • Comparable net revenue +14.9%, reflecting acquisitions of TTM Laser an
Slide 9: Sheet Metal Processing – 5 years business trend
Sheet Metal Processing – 5 years business trend Broadened structural opportunities across regions and client segments • Geographies Geographies CHF m Products CHF m – More balanced footprint 1'200 1'200 1'000 1'000 – Net sales in growth regions 800 314 800 198 Asia and America >50% 125 600 121 210 6
Slide 10: Bystronic's vision: number 1 partner in sheet metal and tube industry
Bystronic’s vision is to be the number 1 partner in the sheet metal and tube industry, by combining best solutions and services to make customers leaders in world class manufacturing Automated production Controlled production Automated order & planning Material Order & Supply Predictive Maintenance
Slide 11: Chemical Specialties: Enhanced scale amidst a challenging operating environment
Chemical Specialties Enhanced scale amidst a challenging operating environment CHF m 2018 2017* % Operational performance Net revenue 382.9 279.2 37.1 • Double-digit growth across regions, driven by Operating result acquisition of Otto Bock Kunststoff 5.8 16.0 -63.8 (EBIT) • Comparable net revenue -
Slide 12: 'NEW' FoamPartner: Driving economies of scale
‘NEW’ FoamPartner Driving economies of scale from enlarged platform M&A Business optimization • Business (incl. pricing) excellence Transformational upscaling • Fix challenges in the US and China ✓ Acquired Otto Bock Kunststoff • Footprint optimization ✓ Resolved legacy JV structure • Innovation / a
Slide 13: 'NEW' FoamPartner: Clear priorities and defined action plans
‘NEW’ FoamPartner Clear priorities and defined action plans Regional strategies Overall organization • Turn around America • Modernize, e.g. – Re-focus organization – CRM tool – Site consolidation – ERP system – Growth in Specialties – Facility upgrades • Transition in Asia • Excellence, e.g. – Impr
Slide 14: Outdoor: Implementation of 5 year strategic plan on track
Outdoor Implementation of 5 year strategic plan on track CHF m 2018 2017 % Operational performance Net revenue 253.4 228.6 10.9 • Double-digit growth across regions; comparable Operating result growth at stable fx-rates 9.4% 5.2 0.1 n.a. (EBIT) • Successful product innovations for WS 2018, i.e. ‘Bar
Slide 15: Driving omnichannel management & internationalization
Driving omnichannel management & internationalization With a holistic premium brand experience Monobrand store network • Roll out of new store concept • Opened in Hong Kong & Shanghai • Now 73 stores, optimization ongoing Digital business • Sales from online store CHF 10.1 m, up from CHF 3.8 m in 20
Slide 16: Striving to become digital leader in the Outdoor industry
Striving to become digital leader in the Outdoor industry Building an user centric ecosystem 2018 Results Presentation, March 20, 2019 16
Slide 17: Glass Processing: Impressive improvement of operational performance
Glass Processing Impressive improvement of operational performance CHF m 2018 2017 % Operational performance Net revenue 133.3 119.3 11.7 • Double-digit growth in Asia and America as well Operating result as in architectural and automotive glass; 7.6 6.3 20.6 comparable growth at stable fx-rates 10.
Slide 18: Glass Processing – announced divestment to Glaston
Glass Processing – announced divestment to Glaston Industrial logic to build leading market position Transaction, as announced on January 25, 2019 • Divestment to Glaston for enterprise value of EUR 68 m (CHF 78 m) • Closing targeted by the end of the first quarter 2019, subject to regulatory approv
Slide 19: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A • Buffet lunch 2018 Results Presentation, March 20, 2019 19
Slide 20: Consolidated income statement
Consolidated income statement (CHF m) 2018 2017 ∆ % Net revenue 1’782.2 1’482.8 +20.2 ∆ Inventory and own work capitalized 14.5 18.1 Total revenue 1’796.7 100% 1‘500.9 100% +19.7 Other operating income 8.4 18.2 Cost of materials -875.4 -740.8 Personnel expenses -404.4 -339.5 Other operating expenses
Slide 21: Group net revenue
Group net revenue Net revenue driven by organic growth and M&A (CHF m) 2017 1482.8 Volume and price Net revenue comparable +10.4% 154.5 Change in scope 1) +8.6% 126.9 FX +1.2% 18.0 translation 2018 1782.2 1) TTM Laser and Antil within Sheet Metal Processing; Otto Bock Kunststoff, sale of US joint ve
Slide 22: Net revenue by segment
Net revenue by segment Machinery businesses and Outdoor with strong growth momentum 1200 +18.3% +14.9% 1000 1'013.2 ∆ % reported ∆ % comparable1) 800 856.1 600 +37.1% -2.5% 400 382.9 +10.9% +9.4% 279.2 +11.7% 200 228.6 253.4 +10.4% 119.3 133.3 0 Sheet Metal Chemical Specialties Outdoor Glass Process
Slide 23: Group EBIT
Group EBIT EBIT margin improved from adjusted 7.6% to 8.2% CHF m) 2017 reported 8.2% 123.2 One-off divestment gain -8.8 2017 adjusted 7.6% 114.4 Volume and product mix +99.9 Personnel expenses -33.5 OpEx & depriciation -34.8 Change in scope & FX +6.3 Integration & reorganization 8.2% -5.5 2018 repor
Slide 24: Group result: Earnings per share up by 15.5%
Group result Earnings per share up by 15.5% (CHF m) 2018 2017 Operating result (EBIT) 146.8 8.2% 123.2 7.6%2) Financial result1) -2.5 2.1 Taxes -29.5 -27.9 Group result 114.8 6.4% 97.4 5.9%2) Attributable to Conzzeta shareholders 96.6 83.7 Attributable to minority interests 18.2 13.7 Earnings per re
Slide 25: Comparison of half-year results
Comparison of half-year results Subdued performance in Chemical Specialties in 2nd half 2018 1HY 2HY 1HY 2HY 1HY 2HY (CHF m) 2016 2016 2016 2017 2017 2017 2018 2018 2018 Net revenue 522.7 687.4 1’210.0 623.5 859.3 1’482.8 853.3 928.9 1’782.2 Total revenue 543.0 667.8 1’210.8 658.6 842.3 1’500.9 875.
Slide 26: Quarterly business trends 2018
Quarterly business trends 2018 Impacts from change in scope, base effects and more mixed performance Q1 Q2 Q3 Q4 2017 2018 Diff. 2017 2018 Diff. 2017 2018 Diff. 2017 2018 Diff. Order entry Group 232.9 276.1 18.6% 275.1 305.4 11.0% 266.0 267.7 0.6% 293.3 279.8 -4.6% Net revenue Group 300.1 430.6 43.5
Slide 27: Consolidated cash flow statement
Consolidated cash flow statement OPFCF +27.3% despite significantly higher investments in fixed assets (CHF m) 2018 2017 ∆ abs. Cash flow from operating activities 160.2 116.6 43.6 before change in net working capital Change in net working capital -16.20 -22.5 6.3 Cash flow from operating activities
Slide 28: M&A and dividends covered by OPFCF – liquidity broadly maintained
Group cash position M&A and dividends covered by OPFCF – liquidity broadly maintained (CHF m) 160.2 16.2 60.6 41.4 33.1 50.0 18.4 50.0 Operating free cash flow CHF 83.4 m 349.1 339.6 Free cash flow CHF 42.0 m 2017 Operating Change Investment in Acquisitions Dividend Other, incl. 2018 Liquidity cash
Slide 29: Consolidated balance sheet
Consolidated balance sheet (CHF m) 2018 2017 Cash, cash equivalents and securities 389.6 399.1 Receivables 283.2 295.0 Prepaid expenses and accrued income 13.1 9.4 Inventories 323.1 290.1 Property, plant and equipment 268.7 243.4 Financial assets and deferred tax assets 66.4 70.9 Intangible assets 2
Slide 30: Group RONOA
Group RONOA RONOA of 23.1% reflecting further improved capital efficiency Return on net operating assets (RONOA1)) 23.1% • Avg. NOA of CHF 505.4 m, or 28.1% of Total revenue 120 19.5%2) (PY 29.7%), reflecting improved operating efficiency 500 100 • Net working capital of CHF 283.9 m, or 15.8% of 400
Slide 31: EPS and dividend
EPS and dividend Dividend proposal consistent with policy Earnings per share A1) (CHF) Dividend 2017 and Dividend proposal 2018 (CHF) 50 50 46.76 40 40 40.47 30 30 20 20 32%1) 61%1) 18.035%1) 16.0 10 10 38%1) • Proposed pay-out ratio 0 0 for 2018 of 38% 2017 2018 2017 2018 1) Average # shares 2017:
Slide 32: Group KPI's continued operations
Group KPI’s continued operations Pro-forma impact from divestment of Glass Processing segment (CHF m) 2018 2017 Continued operations 2018 (pro forma) Order entry 1'003 943 • Order entry +6.6% Net revenue 1'649 1'363 • Net revenue +20.6% Total revenue 1'668 1'383 • Slight impacts to margins and RONOA
Slide 33: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A • Buffet lunch 2018 Results Presentation, March 20, 2019 33
Slide 34: Group Priorities for the continued businesses remain unchanged
The Group Priorities for the continued businesses remain unchanged Differentiated business steering to build leading market positions Competencies Priorities Financial Targets Strategic Thinking Entrepreneurship Market orientation Internationalization Growth Innovation Collaboration and Diversity Pr
Slide 35: Conzzeta outlook for 2019
Conzzeta outlook for 2019 Performance history1) 160 12.0% With enhanced geopolitical and macroeconomic uncertainties for 140 2019, we currently expect for the 10.0% continued businesses net 120 EBIT margin aspiration revenue for 2019 at previous- 8.0% year level. 100 80 6.0% Without any potential on
Slide 36: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A • Buffet lunch 2018 Results Presentation, March 20, 2019 36
Slide 37: Q&A
Q&A 2018 Results Presentation, March 20, 2019 37
Slide 38: Thank you very much
Thank you very much. Please join us for the flying lunch. Conzzeta Management AG Phone +41 44 468 24 44 Giesshuebelstrasse 45 www.conzzeta.com 8045 Zurich, Switzerland