Gurit Holding Ag · SIX:GURN

Gurit — FY2017 Earnings Presentation

34 slides from Gurit's earnings presentation, Mar 13, 2018

  1. Slide 1: Gurit FY 2017 Results

    Gurit FY 2017 Results Zurich, March 13, 2018

  2. 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

  3. Slide 3: Gurit 2021 Strategic Ambitions

    Gurit 2021 Strategic Ambitions

  4. Slide 4: Gurit 2021 Strategic Ambitions

    Gurit 2021 Strategic Ambitions  Key Markets for Gurit Advanced Composites  Wind, Aerospace and Automotive – 3 key strategic growth markets  Marine and Industrial – 2 key niche markets  Achieve leading market shares in each niche we operate in  Sales Growth Ambition by 2021 at ca. CHF 500 millio

  5. Slide 5: Gurit Strategy 2021 – Key Stepping Stones

    Gurit Strategy 2021 – Key Stepping Stones  Key Product Innovations:  The market leading Core material range for Industry/Marine/Wind  Leading lightweight TMC/Prepreg/Filming range for our markets  Vitalize Formulated Product range – Laminating resins, Adhesives  Aero: Organically grow in EU and

  6. Slide 6: Gurit FY 2017 Business Update

    Gurit FY 2017 Business Update

  7. Slide 7: Key Business Notes FY 2017

    Key Business Notes FY 2017  2017 was a good year for Gurit – given the headwinds in India/China and ME  3% Topline Growth and  10% Operating Profit including almost 1% ROS of one-time restructuring cost in the UK  Highlights and Lowlights: + Tooling: Another record year – across all relevant met

  8. Slide 8: Key Financial Notes FY 2017

    Key Financial Notes FY 2017  Growth: +3.1% (+2.4% in reported CHF) to CHF 360.5m (FY 2016: 352.0m)  Operating Profit and RoS: CHF 35.9m (FY 2016: CHF 36.8m) and 10.0% (FY 2016: 10.5%) – target met for the third consecutive year  Investment:  Capex of 11.7m (FY 2016: 10.5m) mainly Tooling, PET, H

  9. Slide 9: Development by Key Markets

    Gurit Development by Key Markets ———=*£*{z~zZz=—EE__==_ | Ll Le

  10. Slide 10: Wind Energy – Market Trends

    Wind Energy – Market Trends  Short-term situation: Capacity Installed Annually*  Volume correction 2016/2017 versus 80 63 63 65 record year 2015 60 52 55 49 40 20  Long-term trends favouring wind: 0  Decarbonisation 2015 2016 2017 2018 2019 2020 * Source: MAKE Global Wind Power Q3-2017  De-cent

  11. Slide 11: Wind Energy – Market Trends

    Wind Energy – Market Trends  Development by 2020:  Auctions drive price/kWh below non-renewable benchmark of 4ct/kWh  Further 20-30% cost-out challenge for the industry by ca. 2020: bigger turbines (4MW+ onshore, 6MW+ offshore) and cost-out exercises along the entire value chain  Industry has ch

  12. Slide 12: Wind Energy – Turbine Size: The Key Performance Increase Factor

    Wind Energy – Turbine Size: The Key Performance Increase Factor Slide 12 Corporate

  13. Slide 13: Wind Energy – Turbine Size: Past and Present Sizes

    Wind Energy – Turbine Size: The Key Performance Increase Factor Past and Present Wind Turbine Sizes Slide 13 Corporate

  14. Slide 14: Wind Energy Materials – Results & Outlook

    Wind Energy Materials – Results & Outlook Results & Achievements FY 2017 Wind Energy: Quarterly Net Sales MCHF 50 39,8 39,1 40 36,4 36,1 Net Sales: CHF 128.2m (FY 2016: 149.0m) 33,7 33 31,6 27,5  Decline by 13.9%; volume and price drop 30  India: halt for ¾ of CY 2017 – auctions introduced 20 10 

  15. Slide 15: Tooling – Results & Outlook

    Tooling – Results & Outlook Results & Achievements FY 2017 Net Sales: CHF 91.8m (FY 2016: CHF 69.0m)  Increase by 33.1% (currency-adjusted: 35.5%)  New major global customer win helps growth  Offshore maxi blade demand in China strong Key Business Steps 2017:  Capacity expansion – new bay built

  16. Slide 16: Tooling – Taicang Plant

    Tooling – Taicang Plant Gurit Tooling Campus Taicang New 150x56m hall = 8400m2 Slide 16 Corporate

  17. Slide 17: Tooling – Global Footprint & Mineral Casting

    Tooling – Global Footprint & Mineral Casting Gurit Tooling Global Footprint Composite Mineral Casting machine beds Slide 17 Corporate

  18. Slide 18: Aerospace – Market Trends

    Aerospace – Market Trends Airbus Commercial Aircraft Units Deliveries* Boeing Commercial Aircraft Units Deliveries** 1000 1000 500 500 0 0 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 * Source: Airbus ** Source: Boeing  ICAO expects number of passengers globally to grow from 3.8 bill

  19. Slide 19: Aerospace – Results & Outlook

    Aerospace – Results & Outlook Results & Achievements FY 2017 Aerospace: Quarterly Net Sales MCHF 20 Net Sales: CHF 47.0m (FY 2016: 47.6m) 12,6 11,7 12,7 13,8 10,6 11,3 11,4 10,5  Slight decrease due to supply chain issues 10 (engine delivery) at European OEM in Q4  A380 build rate impact 0 Q1 Q2 Q

  20. Slide 20: Other Material Markets – Market Trends

    Other Material Markets – Market Trends  Marine superyacht and leisure segments with good demand in 2017; markets projected to continue to grow on a moderate single digit level  Middle Eastern composite construction industry hit by the Saudi cash shortage causing project halts; market expected to r

  21. Slide 21: Other Material Markets – Results & Outlook

    Other Material Markets – Results & Outlook Results & Achievements FY 2017 Net sales: CHF 71.1m (FY 2016: CHF 69.0m) Other Material Markets: Quarterly Net Sales  Increase by 3.1% (currency-adjusted: +4.6%) MCHF mainly due to slight growth in marine industry 30 20,1 18,1 17,4 17,5 17,9 16,7 19  ME c

  22. Slide 22: Automotive – Market Trends

    Automotive – Market Trends  Sustainability policies and stricter emission targets drive need to reduce fuel consumption which can be easiest achieved through weight reduction  Electrification drives need to reduce car body weight fostering use of lightweight technologies  Use of advanced composit

  23. Slide 23: Composite Components – Results & Outlook

    Composite Components – Results & Outlook Results & Achievements FY 2017 Net sales: CHF 22.3m (FY 2016: 17.4m)  Strong sales and strong order intake Operations:  Industrialisation CAPEX started to implement  Development of low cost materials for cost out  Improved financial result to EBITDA B/E F

  24. Slide 24: Financial Results FY 2017

    Gurit Financial Results FY 2017 ———=*£*{z~zZz=—EE__==_ | Ll Le

  25. Slide 25: Net Sales Analysis by Markets

    Net Sales Analysis by Markets Net sales in MCHF  Overall currency-adjusted growth of 3.1% in net sales 352.0 360.5 Materials Components Tooling  Composite Materials hampered by lower wind 182.3 169.7 175.2 185.3 energy capacity additions  Composite Components on growth track 1HY 2016 2HY 2016 1HY

  26. Slide 26: Operating Profit and RONA Development

    Operating Profit and RONA Development Operating profit (% Net sales)  FY Operating profit at 10.0%, RONA (incl. Goodwill) delivering on the profitability RONA (excl. Goodwill) target for the third consecutive 21,1% year 18,2% 17,7% 18,6% 17,6%  2HY 2017 impacted by: 18,3% 14,1% 15,7%  One-off ite

  27. Slide 27: Operating Profit Bridge FY 2016 to FY 2017

    Operating Profit Bridge FY 2016 to FY 2017 45 in MCHF 40 5,1 -4,8 10.5% 10.0% -1,7 0,2 3,5 -1,0 35 -2,9 0,7 30 25 20 36,8 35,9 15 10 5 0 Operating Volume Sales price Purchase Material Operational Bad debts One-offs Other Operating profit 2016 and changes, price usage efficiencies (Delta effects prof

  28. Slide 28: Income Tax Expense

    Income Tax Expense in MCHF 11 27% 10 9 8 2,1 20% 1,1 -0,5 7 6 5 9,3 4 6,7 3 2 1 0 Not Other Not Tax expense at Actual tax capitalized effects, recoverable average expected expense tax losses net WHT on IC rates dividends  Income tax expenses burdened by unfavorable effects from not capitalized tax

  29. Slide 29: Income Statement

    Income Statement Consolidated Income Statement 2017 2016 Variance MCHF % NS MCHF % NS MCHF %-pts Net sales 360.5 100.0% 352.0 100.0% 8.5 0.0% Cost of goods sold -271.6 -75.3% -264.4 -75.1% -7.3 -0.2% Gross profit 88.9 24.7% 87.6 24.9% 1.3 -0.2% Research and development expense -6.9 -1.9% -6.9 -2.0%

  30. Slide 30: Balance Sheet

    Balance Sheet Consolidated Assets Dec 2017 Dec 2016 Variance MCHF % MCHF % MCHF %-pts Cash and cash equivalents 44.6 15% 38.6 16% 5.9 0% Trade receivables 72.9 25% 61.3 25% 11.6 1% Inventories 61.0 21% 46.2 19% 14.8 2% Other current assets 22.7 8% 20.5 8% 2.2 0% Deferred income tax assets 4.0 1% 2.9

  31. Slide 31: Cash Flow

    Cash Flow Consolidated Cash Flow 2017 2016 Variance MCHF MCHF MCHF EBIT 35.9 36.8 -0.9 Depreciation, amortisation, impairment 10.8 11.7 -0.9 Change in working capital -9.1 0.8 -9.9 Other cash flow from operating activities -7.0 -11.4 4.4 Net cash flows from operating activities 30.6 37.9 -7.3 Purcha

  32. Slide 32: Financial Results FY 2017 Conclusion

    Financial Results FY 2017 Conclusion

  33. Slide 33: Outlook 2018

    Outlook 2018  Net Sales  Low single-digit revenue growth expected for FY 2018  Operating Profitability  Score again at the upper end of the target range of 8-10% operating profit margin for FY 2018 Slide 33 Corporate

  34. Slide 34: Questions?

    Gurit Questions? ———=*£*{z~zZz=—EE__==_ | Ll Le

Gurit Holding — FY2017 Earnings Presentation on 6ix