Feintool International Holding AG · SIX:FTON

Feintool International — Investor Presentation (October 2023)

31 slides from Feintool International's investor presentation, October 2023

  1. Slide 1: Feintool Group Investor Presentation

    Feintool Group Investor Presentation

  2. Slide 2: Feintool at a glance

    FEINTOOL AT A GLANCE A global technology group focusing on high-end precision parts for e-mobility, industrial applications as well as green energy production, storage and use No. 1 1 bn. in fineblanking¹ and CHF incoming forming technology² orders per year No. 2 861 m. 3300 in e-lamination employee

  3. Slide 3: Six reasons to invest

    SIX REASONS TO INVEST Leveraging the green energy opportunity 1. Global megatrends of generation, storage and usage of green energy create enormous potential in structurally growing markets 2. Feintool business portfolio with clear focus on high-end series parts based on three core technologies is g

  4. Slide 4: Reason 1: Global megatrends of green energy

    Reason 1: Global megatrends of generation, storage and usage of green energy create enormous potential in structurally growing markets.

  5. Slide 5: Megatrends of green energy

    REASON 1 MEGATRENDS OF GREEN ENERGY Feintool Equity Story 2023 4

  6. Slide 6: Global car production

    REASON 1 GLOBAL CAR PRODUCTION Transformation towards electric vehicles creates a structurally growing market. Number of vehicles produced up to 3.5 t gross weight, worldwide  Stable growth in car production, returning to prepandemic levels in CAGR 2025: CAGR +1.7% (2023 – 2030) +1.7% 100 94 83 85

  7. Slide 7: Industrial application market

    REASON 1 INDUSTRIAL APPLICATION MARKET Increasing demand for electric motors in industrial applications 500 CAGR  Increasing number of applications with 450 +7.2% electric drive, for example 400 – Heat pumps Market volume (USD bn) 350 – Automation in buildings and industry 300 – Ventilation systems

  8. Slide 8: Wind energy market

    REASON 1 WIND ENERGY MARKET Increasing demand for generators for wind turbines 140  Wind turbines generate electricity by means of an CAGR +6.4% electric motor (generator) 120 Total capacity of new wind turbines (GW)  Rising demand for wind turbines driven by numerous 100 countries’ requirements f

  9. Slide 9: Reason 2: Business portfolio focused on three core technologies

    Reason 2: Feintool business portfolio with clear focus on high-end series parts based on three core technologies is geared towards these megatrends.

  10. Slide 10: Business portfolio transformed

    REASON 2 BUSINESS PORTFOLIO TRANSFORMED Pure play manufacturer of high-end series parts based on three core technologies Divested in 2023 Acquired in 2018/22 Machinery Fineblanking Forming E-Lamination business series parts series parts series parts  Drives electric and hybrid  Engines and transmi

  11. Slide 11: Wide-ranging product portfolio

    REASON 2 WIDE-RANGING PRODUCT PORTFOLIO For automotive – especially e-mobility –, industrial and renewable energy markets. Automotive Industrial  Linear motors Industrial Motors  Servo motors  Drive motors  Air blowers Air Movement  Ventilation  Axial/radial ventilators  Centrifugal pumps Pum

  12. Slide 12: Increased exposure to green energy-linked markets

    REASON 2 FEINTOOL INCREASED EXPOSURE TO GREEN ENERGY-LINKED MARKETS Transformation from ICE-dependent business to future-oriented business. 1200  In the last 5 years, ICE-related sales have been reduced from roughly 1000 861 70% to 44%. 11% 800  In 2022, 55% of sales were Sales CHFm 612 22% genera

  13. Slide 13: Reason 3: Proven core technologies in new application areas

    Reason 3: Proven core technologies to be applied in promising new application areas.

  14. Slide 14: New applications for FEINforming in fuel cells and electrolysers

    REASON 3 NEW APPLICATIONS FOR FEINFORMING IN FUEL CELLS AND ELECTROLYSERS FEINforming for the production of bipolar plates  Feintool has the know-how for large- scale production of anodes and cathodes (FEINforming) for bipolar plates.  Bipolar plates are the core of fuel cells but also of electrol

  15. Slide 15: Demand for fuel cells and electrolysers will increase strongly

    REASON 3 DEMAND FOR FUEL CELLS AND ELECTROLYSERS WILL INCREASE STRONGLY Combined markets for fuel cells and electrolysers are expected to achieve +72% growth. 4.0 Bipolar plates for fuel cells1 3.87  Attractive market potential for fine forming for the production of bipolar plates. Market volume2 B

  16. Slide 16: New applications for fineblanking and forming in batteries

    REASON 3 NEW APPLICATIONS FOR FINEBLANKING AND FORMING IN BATTERIES Battery market is estimated to achieve growth of +27%. 4000  Approx. 100 new battery factories (Giga Factories) under construction worldwide Market volume Li-Ion batteries (GWh) 3000  Demand for battery cell housings CAGR +27% and

  17. Slide 17: Reason 4: Customer-centric value proposition

    Reason 4: Customer-centric value proposition ensures customer loyalty and builds barriers to entry.

  18. Slide 18: Feintool creates value through expertise and innovation

    REASON 4 FEINTOOL CREATES VALUE THROUGH EXPERTISE AND INNOVATION And builds barriers to market entry for potential competitors.  Technology leader for e-lamination High quality standard Honors in all major stamping, forming and Fineblanking global automotive  Entire process from design, prototypin

  19. Slide 19: Strong strategic position - global customer reach

    REASON 4 FEINTOOL CREATES VALUE THROUGH EXPERTISE AND INNOVATION Strong strategic position - global customer reach with low concentration Broad range of customers Low customer concentration 13.40%  Aisin  General Motors  Siemens  Audi  GKN  Somfy 10.60%  BMW  Imasen  Stellantis  BorgWarner

  20. Slide 20: Reason 5: Pure-play manufacturer, capital-light model

    Reason 5: Transformation towards a pure-play manufacturer enables capital-light production model with reduced complexity.

  21. Slide 21: Pure-play manufacturer with better financial profile

    REASON 5 PURE-PLAY MANUFACTURER WITH BETTER FINANCIAL PROFILE Lower Capex/sales ratio, improved FCF and balance sheet and higher ROIC/ROCE.  Capex/sales ratio clearly differs between forming (1/1), fineblanking (0.7/1) and e- lamination (0.5/1).  Lower upfront investments with a positive impact on

  22. Slide 22: Reason 6: Growth strategy for global penetration

    Reason 6: Growth strategy to reach global penetration with leading position in home markets as jumping-off point.

  23. Slide 23: Growth strategy

    REASON 6 GROWTH STRATEGY MID-TERM TARGETS 2026 - CapEx: 5-8% of sales - FCF margin: 4-6% - EBIT margin: 6-8% - ROIC > 10% - Sales > CHFm 1000 - EBITDA margin: 12-14% - Net debt/EBITDA < 1x Expand Cultivate Transfer Harvest future technology e-lamination traditional technologies fineblanking traditio

  24. Slide 24: Application lifecycle

    REASON 6 APPLICATION LIFECYCLE  Most applications in mature high- Market Maturity / Volume volume phase of lifecycle. Capex  E-engine for e-mobility, peripheral Feintool Development Growth Maturity Harvesting drives and e-motor for renewable − Fuel Cell/ − E-Engine − Safety systems (seat − Drives

  25. Slide 25: The transformation towards green energy markets continues

    REASON 6 THE TRANSFORMATION TOWARDS GREEN ENERGY MARKETS CONTINUES Feintool will further increase exposure to generation, storage and usage of green energy 1200  Feintool plans to further increase the share of the 1200 4% 4% future-oriented businesses to approx. 75% until 2027 1000 861 25%  More t

  26. Slide 26: Appendix

    > FEINTOOL Appendix

  27. Slide 27: Financial profile/summary

    FINANCIAL PROFILE/SUMMARY in CHF Mio. 2022 2021 2020 2019 Sales 861.0 588.1 492.0 632.7 Operating EBITDA 85.7 85.6 53.2 67.7 Operating EBITDA Margin 10.0% 14.5% 10.8% 10.7% Operating EBIT 26.7 34.5 3.0 18.9 Operating EBIT Margin 3.1% 5.9% 0.6% 3.0% Net Debt 42.1 120.7 146.9 140.8 Net Debt/EBITDA 0.5

  28. Slide 28: Key data and share information

    KEY DATA AND SHARE INFORMATION Registered Office 3250 Lyss, Switzerland Listing SIX-Exchange Reporting Standard: International Financial Reporting Standard (IFRS) ISIN: CH0009320091 Ticker symbol (Bloomberg/Reuters): FTON SW / FTON.S Number of shares 14 744 526 Nominal Value CHF 10.00 Share price (3

  29. Slide 29: Organization

    ORGANIZATION Feintool Equity Story 2023 28

  30. Slide 30: Sustainability

    SUSTAINABILITY Ambitious sustainability goals defined, governance in place, rating received Innovation Environment Environment Environment HR HR Governance By 2030, we Reduction of CO2 Determination of ISO 14001 (env. Successfully ISO 45001 Sustainability want to increase emissions Scope 3 managemen

  31. Slide 31: Thank you for your attention

    Feintool Group Thank you for your attention

Feintool International Holding — Investor Presentation (October 2023) on 6ix