Bystronic Ag · SIX:BYS
Bystronic — Conzzeta — FY2020 Earnings Presentation
40 slides from Bystronic's earnings presentation, Mar 16, 2021
Slide 1: 2020 results presentation & 2021 transformation agenda
2020 results presentation & 2021 transformation agenda Zurich, March 16, 2021
Slide 2: Welcome
conzzeta WELCOME
Slide 3: Agenda
Agenda • 2020 business review & transformation update Michael Willome, Group CEO • 2020 financial review Kaspar W. Kelterborn, Group CFO • Bystronic stand alone & 2021 outlook Alex Waser, Bystronic CEO • Acknowledgment Ernst Bärtschi, Chairman of the Board of Directors • Q&A 2020 Results presentatio
Slide 4: Q&A
Q&A For the Q&A session at the end of the presentations, you may ask questions • through the telephone (please register on website for personalized dial in-details) or • through the webtool in writing (as webcast viewer).
Slide 5: 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 6: Agenda
Agenda • 2020 business review & transformation update Michael Willome, Group CEO • 2020 financial review Kaspar W. Kelterborn, Group CFO • Bystronic stand alone & 2021 outlook Alex Waser, Bystronic CEO • Acknowledgment Ernst Bärtschi, Chairman of the Board of Directors • Q&A 2020 Results presentatio
Slide 7: 2020 results summary and dividend proposal
2020 results summary and dividend proposal Successful strategy execution within pandemic environment Partial mitigation of adverse impacts from pandemic and progress with Group transformation • Net revenue CHF 1’283.5 m, -10.4%1) • Operating result (EBIT) CHF 79.7 m, or CHF 32.3 m adjusted for dives
Slide 8: Sheet Metal Processing
Sheet Metal Processing Bystronic on track to capitalize on market recovery as independent company CHF m 2020 2019 ∆% Operational performance Net revenue 801.4 936.0 -14.4 • At stable FX rates, net revenue -9.4% Operating result • Notable recovery of orders and sales in H2 vs 52.3 121.1 -56.8 most pa
Slide 9: Chemical Specialties (discontinued business)
Chemical Specialties (discontinued business) FoamPartner with strong result CHF m 2020 2019 ∆% Operational performance Net revenue 264.0 346.6 -23.8 • Adjusted for CiS and at stable FX rates, net revenue -9.0% Operating result 14.8 1) 14.2 3.8 • Reported EBIT of CHF 62.2 m incl. capital gain (EBIT)
Slide 10: Outdoor (discontinued business)
Outdoor (discontinued business) Progress with scalable, more profitable digital business models CHF m 2020 2019 ∆% Operational performance Net revenue 218.4 268.4 -18.6 • At stable FX rates, net revenue -16.2% • Lockdown of physical channels partly offset by Operating result -24.5 7.5 - digital sale
Slide 11: Group transformation update
Group transformation update Consistent implementation with final steps within reach 2019 2020 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Today Divestment Schmid Rhyner Signing Closing Create and / or Strategic select best suitable Divestment Mammut evaluation platforms for all Business Units Strategic to foste
Slide 12: Group transformation outlook
Group transformation outlook Final steps from Conzzeta to Bystronic planned for forthcoming AGM ❑ Final business disposal ➢ Continues to be expected around mid 2021 ❑ Management ➢ New Bystronic management structure as of AGM, April 21 ❑ Name change ➢ Subject to AGM approval; BYS ticker symbol as of
Slide 13: Framework implemented in 2016
Framework implemented in 2016 Our competencies served us well and provide the base for Bystronic Strategic Thinking Entrepreneurship Market orientation Internationalization Innovation Growth Collaboration and Diversity Profitability Performance Orientation Capital efficiency Drive for Excellence Peo
Slide 14: Agenda
Agenda • 2020 business review & transformation update Michael Willome, Group CEO • 2020 financial review Kaspar W. Kelterborn, Group CFO • Bystronic stand alone & 2021 outlook Alex Waser, Bystronic CEO • Acknowledgment Ernst Bärtschi, Chairman of the Board of Directors • Q&A 2020 Results presentatio
Slide 15: Consolidated income statement
Consolidated income statement Reported numbers with impacts from pandemic and business disposals (CHF m) 2020 2019 ∆% Net revenue 1’283.5 1’573.2 -18.4% ∆ Inventory and own work capitalized -9.9 6.0 Total revenue 1’273.6 100% 1’579.1 100% -19.3% Other operating income 55.8 43.0 Cost of materials -60
Slide 16: Group net revenue
Group net revenue Decrease in comparable net revenue by 10.4% (CHF m) 2019 1'573.2 Volume • Lower sales across regions Net revenue comparable -10.4% -162.9 and price • Comparable1) • Asia -5.3% Change in scope -4.1% -63.8 • Americas -9.9% • Europe -12.5%, also reflecting FX adverse impact from repea
Slide 17: Group EBIT
Group EBIT Volume losses partly offset by “Cash, Cost, Complexity” program (CHF m) 2019 reported 137.3 29.9 Adjusted EBIT margin 8.7% Volume and product mix -124.1 • Differentiated “Cash, Cost, Complexity“ Personnel measures to partly mitigate impacts from expenses 8.6 pandemic • One-off costs of ne
Slide 18: H2 2020 trends
H2 2020 trends Expected partial recovery in H2 with adjusted EBIT margin of 4.5% (CHF m) Q1 2019 Q2 2019 H1 2019 Q3 2019 Q4 2019 H2 2019 Q1 2020 Q2 2020 H1 2020 Q3 2020 Q4 2020 H2 2020 Order entry (Bystronic) 222.2 228.4 450.6 242.9 235.9 478.8 169.7 170.5 340.2 195.6 241.6 437.2 Net revenue 394.4 3
Slide 19: Group result
Group result Minority interests structurally lower going forward (CHF m) 2020 2019 Operating result (EBIT) 79.7 167.2 -52.3% Financial result1) -2.9 -0.1 Taxes -9.8 -30.3 Group result 66.9 136.8 -51.1% Attributable to Conzzeta shareholders 65.0 125.8 Attributable to minority interests 1.9 11.1 Earni
Slide 20: Consolidated cash flow statement
Consolidated cash flow statement Disciplined CAPEX and good management of NWC (CHF m) 2020 2019 ∆ abs. Cash flow from operating activities 63.2 135.8 -72.6 before change in net working capital Change in net working capital 15.5 -35.7 51.2 Cash flow from operating activities 78.7 100.1 -21.4 Net inve
Slide 21: Group cash position
Group cash position H2 with strong improvement of OPFCF and payment of DNE step-up (CHF m) 71.7 15.5 63.2 -27.2 -86.8 -64.0 Operating free cash flow 300.9 CHF 51.5 m 273.3 Free cash flow CHF 123.2 m 2019 Operating Change Investment in Acquisition & Dividend DNE step-up 2020 Liquidity cash flow in NW
Slide 22: Consolidated balance sheet
Consolidated balance sheet Equity ratio practically stable at high level (CHF m) 2020 2019 Cash and cash equivalents 273.3 300.9 Receivables 238.4 272.7 Prepaid expenses and accrued income 17.3 11.1 Inventories 284.5 304.2 Property, plant and equipment 255.0 276.1 Financial assets and deferred tax a
Slide 23: Dividend proposal
Dividend proposal Distribution of CHF 124.2 m liquidity Cash and cash distribution (CHF m) 400 • “Shareholders to participate in distribution of excess liquidity” – release December 9, 2019 300 • Dividend proposal to 2021 AGM • Distribution of CHF 124.2 m 200 • CHF 60 per A share and CHF 12 per B sh
Slide 24: Agenda
Agenda • 2020 business review & transformation update Michael Willome, Group CEO • 2020 financial review Kaspar W. Kelterborn, Group CFO • Bystronic stand alone & 2021 outlook Alex Waser, Bystronic CEO • Acknowledgment Ernst Bärtschi, Chairman of the Board of Directors • Q&A 2020 Results presentatio
Slide 25: Strategy 2025 building blocks
On November 10, 2020, we presented our “Strategy 2025” with clearly defined building blocks Commercial excellence Customer value through Employer of choice regionalization and segment- Corporate reputation that specific offers secures access to best talents, whom we develop and retain «We support ou
Slide 26: We remain a pioneer in sheet metal processing
We remain a pioneer in sheet metal processing Heritage Opportunities • Hardware focus • Hardware & • Single machine focus software focused Machines • Incomplete software offerings • Software based solutions Cutting | Bending | Automation • Service as an add on • Service as a business + Portfolio exp
Slide 27: Growth across regions, strengthening recurring service revenue
We aim to grow across regions, strengthening recurring revenue from services (Organic) sales development Sales split by region CHF m ~1’280 13% 17% 8% 11% 47% 936 54% 24% 25% 2019 EMEA Americas Asia China 2025 2019 2025 Sales split by machines & services With “new” Bystronic, we seek growth across a
Slide 28: Financial aspiration by 2025
We plan for industry-leading performance after an initial phase with strategy implementation costs Current operating environment and strategy Financial aspiration by 2025 implementation with impact on expected financial performance in initial phase • Organic net sales CAGR of >5%, with further upsid
Slide 29: Bystronic ready to take over from Conzzeta
Bystronic ready to take over from Conzzeta “Strategy 2025” finalized and in process of being rolled out – pushing innovative solutions and services with enhanced segment-specific value proposition to position Bystronic even closer to clients ✓ Implementation of new organizational structure Bystronic
Slide 30: Bystronic Executive Committee
Bystronic Executive Committee Alex Waser, at Bystronic since 2013, CEO, Swiss, 1967 Beat Neukom, joining Bystronic in May 2021 as CFO, Swiss, 1970 Johan Elster, at Bystronic since 1996, President Region EMEA, Norwegian, 1964 Robert St. Aubin, at Bystronic since 2010, President Region Americas, US, 1
Slide 31: Example ESG integration: green technologies for client energy efficiency
Example ESG integration: We push green technologies for the improved energy efficiency of our clients In early 2021 we completed the initial carbon footprint assessment Advanced laser Future for our site in Niederönz to better understand technologies technologies the impact of our activities on clim
Slide 32: Conzzeta / Bystronic priorities and outlook for 2021
Conzzeta / Bystronic priorities and outlook for 2021 Completion of strategic transformation in reach • Closing of FoamPartner transaction until the end of Q1, 2021 • Divestment of Mammut around mid 2021 • Name change from Conzzeta to Bystronic, subject to AGM approval on April 21, 2021 Aspiration to
Slide 33: Agenda
Agenda • 2020 business review & transformation update Michael Willome, Group CEO • 2020 financial review Kaspar W. Kelterborn, Group CFO • Bystronic stand alone & 2021 outlook Alex Waser, Bystronic CEO • Acknowledgment Ernst Bärtschi, Chairman of the Board of Directors • Q&A 2020 Results presentatio
Slide 34: Stability as tradition – change as principle
Acknowledgement Stability as tradition – change as principle1) • Periods of enhanced uncertainties … and opportunities, e.g. • Digitalization, automation, regionalization • Climate change with substantial new solutions • Alliances, agility and speed • Leading positions as the true north • Critical m
Slide 35: Strengthened industrial logic – also to the benefit of employees
Acknowledgement Strengthened industrial logic – also to the benefit of employees In 2014, Conzzeta had 7 businesses … • Spin off of Plazza, currently very successful • Divestments of ixmation, Bystronic glass and Schmid Rhyner with very good integration and positive operational development with new
Slide 36: Group management to step down at AGM
Acknowledgement Group management to step down at AGM on April 21, 2021 Michael Willome Dr. Oliver Pabst Conzzeta Group CEO CEO Mammut since 2016 since 2016 Kaspar W. Kelterborn Dr. Michel Riedel Conzzeta Group CFO CEO FoamPartner since 2006 since 2018 Barbara Senn General Counsel since 2010 2020 Res
Slide 37: Improved performance and unlocked value potential
Acknowledgement Improved performance and unlocked value potential 180 18% 250 160 16% 230 140 14% 210 120 12% 190 100 10% 170 80 8% 150 60 6% 130 40 4% 110 20 2% 90 Source: ZKB 0 0% 70 1) 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Divestment gains 50 EBIT (CHF EBITm) Conzzeta Total
Slide 38: Thank you to the Conzzeta management
Acknowledgement “Thank you” to the Conzzeta management ➢ The process for good divestments of FoamPartner and Mammut is still ongoing. We encourage our divestment teams to successfully finalize these two remaining transactions ➢ The Conzzeta Board of Directors thanks Michael Willome and his team for
Slide 39: Q&A
conzzeta Q&A
Slide 40: Thank you very much for your interest
Thank you very much for your interest. Conzzeta Management AG Phone +41 44 468 24 44 Giesshuebelstrasse 45 www.conzzeta.com 8045 Zurich, Switzerland