Gurit Holding Ag · SIX:GURN
Gurit — H1 2022 Earnings Presentation
23 slides from Gurit's earnings presentation, Aug 17, 2022
Slide 1: Gurit H1 2022 Results
Gurit H1 2022 Results Media and Analyst Conference Mitja Schulz Philippe Wirth CEO CFO 17 August 2022 at 09:00 AM CET WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 2: Introductory statement
Introductory statement 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 stateme
Slide 3: Agenda
Agenda 1 Business update 2 Financial results 3 Outlook 4 Q&A session for Analysts & Financial Journalists Gurit H1 2022 Results | 17 / 08 / 2022 | 3
Slide 4: H1 2022 Highlights
H1 2022 Highlights Sales of 234.8m CHF Impacted by lower blades demand of Western wind customers 234.8 million CHF Operating profit margin: 8.4% Net sales Adjusted operating profit margin: 2% Impacted by inflation, lower tooling business, ramp-up costs 2% "Lightweighting" business continues to grow
Slide 5: Executing our strategy: global footprint
Executing our strategy: global footprint Inauguration of our Chennai, South India campus in June Gurit H1 2022 Results | 17 / 08 / 2022 | 5
Slide 6: Positive Lightweighting Markets
Positive Lightweighting Markets Successful diversification of PET applications Marine / other industries market environment Marine market continues to exceed expectations Business development with high volume boatbuilders Sustainability concerns drive boatbuilders towards using Gurit recycled
Slide 7: Majority stake in Fiberline Composites announced in April
Majority stake in Fiberline Composites announced in April 324 Employees 100% wind Strong R&D ~108 m CHF Net sales (2021) 3 1979 Denmark China Founded in Denmark by the Thorning family Headquarters andIndia manufacturing site in Denmark Gurit H1 2022 Results | 17 / 08 / 2022 | 7
Slide 8: Fiberline acquisition extends Gurit wind rotor blade portfolio
Fiberline acquisition extends Gurit wind rotor blade portfolio Access to all wind OEM and 90% of blade manufacturers Manufacturing sites in all major global wind hubs Most complete offering to wind blade manufacturers: up to 50% blade value chain coverage ROOT CONNECTION Important step in the transi
Slide 9: Executing our strategy: Growing as an innovative company
Executing our strategy Growing as an innovative company New OPTICORE design platform will help to further reduce blade production cost by further optimizing the core material kit design: research funding received New Wind Innovation Center in Ringkøbing, Denmark Product innovation initiative and gre
Slide 10: Sustainability performance highlights 1HY
Sustainability performance highlights 1HY Corporate Governance – Resource utilisation – New Rating Safety First: Ecovadis bronze rating 2.60 YTD lowest ever LTA ratio received since start of program Corporate Governance: Supply Chain Risk Mapping one share one vote: introduction of listed &
Slide 11: Gurit response to wind market challenges
Gurit response to wind market challenges Current challenges Gurit response Global economy: Fit-for-Future program: - Covid - Footprint, plant efficiencies - War in Ukraine - Indirect and SG&A costs - Supply Chain Disruptions - Inflation Tactical measures: - Mitigation of energy & natural gas i
Slide 12: H1 2022 Financial Results
H1 2022 Financial Results Philippe Wirth, CFO WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 13: Sales impacted by lower blade demand
Sales impacted by lower blade demand Materials Kitting Man. Solutions Group (continued operations) +22.0% -20.9% -43.7% mCHF mCHF mCHF mCHF 160 160 160 300 140 140 140 250 120 120 120 200 100 100 100 80 80 80 150 60 60 60 100 40 40 40 50 20 20 20 0 0 0 0 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2 H1 H2
Slide 14: Operating results impacted by challenging market
Operating results impacted by challenging market H1 H1 CHF million 2022 2021 Sales 234.8 258.6 Organic Sales (excl. Structural Profiles) decline Growth cont. ops. -5.7% -17.6% Gross profit 30.9 50.7 Raw material and freight costs CHF -3.5m % of sales 13.2% 19.6% Lower pricing on China sales CH
Slide 15: Adjusted operating profit
Adjusted operating profit mCHF Gurit H1 2022 Results | 17 / 08 / 2022 | 15
Slide 16: Cash flow: negatively impacted by higher net working capital
Cash flow: negatively impacted by higher net working capital Trade Net Working Capital CAPEX Free Cash Flow 30% 250 30 30 24.8% 21.7 25% 22.4% 22.4% 200 20 25 13.9 19.1% 20% 10 129.3 150 20 4.3 1.5 15% 110.5 104.8 110.1 13.8 0 15 100 11.2 11.8 10% 10 -10 6.7 5% 50 5 -20 -19.3 0% 0 0 -30 2019 2020 20
Slide 17: Balance sheet: higher leverage due to acquisition
Balance sheet: higher leverage due to acquisition Jun Dec CHF million 2022 2021 Net Debt 104.2 38.3 Net debt increase due to Acquisition / Change +65.9 Divestments CHF 40.8m Equity Ratio 34.0% 51.3% Equity reduction due to the Fiberline Goodwill Change -17.3%-pts CHF 53.3m Gross Debt / EBITDA 3.
Slide 18: Outlook
Outlook Mitja Schulz CEO WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 19: Wind Market Outlook 2023-2026
Wind Market Outlook 2023-2026 Recent government announcements Wood Mackenzie confirms a strong outlook support mid- and long-term growth for future wind turbine installations of Wind Energy China AP (ex China) +7.5% AM CAGR EMEA On&Off-shore 400 +61% 390 151 150 134 129 113 108 113 101 69 100 94 67
Slide 20: Conclusion and Outlook
Conclusion and Outlook Conclusion Outlook Focus remains on operational execution to tackle inflation headwinds FY 2022 Net Sales: CHF 500-530 million Western Wind market environment continues to be volatile near-term, but mid- Adjusted operating profit margin: and long-term outlook expected
Slide 21: End of presentation
End of presentation Thank you for joining us today! Please use your dial-in credentials if Next dates you wish to attend the Q&A session. 21 October: Q3 net sales media release 30 January: Preliminary results release 2 March (new date): FY 2022 results media release at 07:00 media conference w
Slide 22: Questions & Answers
Questions & Answers Mitja Schulz Philippe Wirth CEO CFO Gurit H1 2022 Results | 17 / 08 / 2022 | 22
Slide 23: Thank you for your attention
Thank you for your attention investor@gurit.com www.gurit.com Gurit H1 2022 Results | 17 / 08 / 2022 | 23