Gurit Holding Ag · SIX:GURN
Gurit — H1 2006 Earnings Presentation
16 slides from Gurit's earnings presentation, 2006
Slide 1: Half-year results 2006
Half-year results 2006 Gurit has successfully turned-around and is ready for further growth Content • Financial figures • Half-year 2006 Achievements – Group-wide – per target market • Growth initiatives • Outlook FY 2006
Slide 2: P&L – Half-year and outlook
P&L – Half-year and outlook Continuing operations In CHF million; HY 2005 HY 2006 Change Plan 2006 pro forma Net sales 155.3 188.0 +21% 365.0 Costs of materials -102.6 Personnel expenses -41.0 Other operational expenses -22.5 EBITDA 17.7 21.9 +24% 42.0 Depreciation 9.4 -7.4 -15.0 EBIT 8.3 14.5 +75%
Slide 3: Balance Sheet – Assets and Liabilities
Balance Sheet – Assets 01.01.2006 30.06.2006 Cash 30.6 31.1 Accounts receivable 62.5 76.6 Inventories 37.6 42.2 CURRENT ASSETS 130.7 149.9 Fixed assets 107.9 107.4 Financial assets 42.9 41.8 Intangible assets 161.8 163.8 Deferred tax 2.9 2.2 TOTAL ASSETS 446.2 465.1 Balance Sheet – Liabilities 01.01
Slide 4: Balance Sheet – Net debt, NWC; Major achievements in HY 2006
Balance Sheet – Net debt, NWC Net debt 30.06.2006 Carve-out 01.01.2006 Cash 31.1 19.4* Liabilities with interest (net **) -44.9 -36.4 Leasing -1.2 -1.8 Total net debt -15.0 -18.8 Net working capital 30.06.2006 Carve-out 01.01.2006 Current assets 118.8 100.0 Non-interest short-term liabilities -76.1
Slide 5: Major achievements in HY 2006
Major achievements in HY 2006 Group Organization • Group-wide integrated management structure – Pro-active management – Synergies in group-wide sourcing – Strategic thrust in R&D • Operational improvements – Highly improved equipment efficiency – Relocation of strategic assets to high-growth areas –
Slide 6: Highest value added in Advanced Composites segment of industry
Highest value added in Advanced Composites segment of industry Composite Production Composite Production USD 20 billion sales p.a. 6 million tons p.a. 5% 18% Gurit’s target market: • Advanced Composites ONLY • USD 3.6 billion • 300,000 t p.a. 82% 95% Adv. Composites Adv. Composites Standard Composit
Slide 7: Wind Energy: Strong position in wind energy market
Wind Energy Strong position in wind energy market • 20% market growth p.a.; market size 1 billion € 2005 • Gurit supplies full material/technology package – Gel Coat, Prepreg layers, Corecell structural foam, infusion resin • Increasing blade performance by – Carbon fibre based Airstream technology
Slide 8: Wind Energy: Major achievements in HY 2006
Wind Energy Annual Wind Power Development in MW Actual 1990-2005 & Forecast 2006-2010 (left) and Cumulative (right) 30,000 150,000 Potential for next 5 years 25,000 125,000 20,000 100,000 Europe Additional 65,000 MW 15,000 75,000 USA 10,000 50,000 Additional 12,000 MW Asia Additional 16,000 MW 5,000
Slide 9: Transportation: Major achievements in HY 2006
Transportation Major achievements in HY 2006 Aerospace • Market size: CHF 800 million; aircraft interiors CHF 150 million • CAGR >20% primary, secondary structures; 10% interiors Transportation Major achievements in HY 2006 Automotive • Market size: CHF 700 million; CAGR 5-10% p.a. • New Gurit devel
Slide 10: Transportation: Broadening position; Marine, Sport
Transportation Broadening position • Aircraft interior, mass transportation interior, car body structures and interiors • Gurit supplies prepregs, semifinished parts • Main customers: Airbus/EADS, Bombardier, car manufacturers • Gurit globally present • High entry barrier Marine, Sport, Civil Engine
Slide 11: Marine, Sport, Civil Engineering: Major achievements in HY 2006
Marine, Sport, Civil Engineering Major achievements in HY 2006 Marine • Solid growth above market level • Appealing profitability • High profile with IACC, Volvo Ocean Race, Open 60 • Growing penetration in high-end production yachts • Strong sales increase in Corecell structural foam • Sales increa
Slide 12: Vision GURIT 2010
Mid-term Financial Targets • Sales growth with the market • Long-term EBIT target min. 10 % • Sales of new products min. 30 % each year (products introduced not older than 3 years) • Positive Free Cash Flow Vision GURIT 2010 • Present in all relevant advanced composite markets • Present in all geogr
Slide 13: Competitive environment; Targeting large, dynamic markets
Competitive environment Adv. Composites = USD 3.6bn sales Competitive Situation Wind Transp MSC Hexcel 17% Cytec GURIT Isosport 11% LM Glasfiber 17% Royal Ten Cate 7% Exel ACG/Umeco Others/Captive Targeting large, dynamic markets Growth rate p.a Carbon Fiber Based Material 30% 20% Wind Aerospace Aer
Slide 14: Gurit growth initiatives
Gurit growth initiatives • Doubling Corecell structural foam capacity worldwide • Building a production site in Tianjin/China • Strategic extension of prototyping/testing facility • Growth initiatives are cash flow financed Establish production in Tianjin/China • China to double renewable energy pro
Slide 15: Establish production in Tianjin/China; Doubling foam capacity by 2009
Establish production in Tianjin/China • CapEx about CHF 20 million for 2007 and 2008 • Cooperation with local development agency TEDA • 10,000m2 • 2007: 100 employees • 2009: 200 employees • Production start in Q3 2007 Doubling foam capacity by 2009 • Support current and potential customers needing
Slide 16: Outlook
Outlook Re-confirmed guidance • Sales above CHF 365 million • EBITDA CHF 42 million • EBIT CHF 27 million