Slide 1: Media & Analyst Conference Tornos Holding Ltd
M di & Analyst Media A l t Conference C f Tornos Holding g Ltd Zurich, March 18, 2013 1
Slide 2: Speakers
S Speakers k François Frôté – Chairman of the Board Michael Hauser – Chief Executive Officer Luc Widmer – Chief Financial Officer 2
Slide 3: Agenda
A Agenda d Welcome Overall Review François Frôté, Chairman Financial Results 2012 Luc Widmer, CFO Review 2012 – Market development and impact Strategy 2017 – Implementation status Michael Hauser, CEO Questions and Answers Q 3
Slide 4: Overall Review
O Overall ll R Review i François Frôté – Chairman of the Board 4
Slide 5: Financial Results 2012
Fi Financial i l Results R lt 2012 Luc Widmer – Chief Financial Officer 5
Slide 6: Financial Results 2012 Summary of key figures
Financial Results 2012 Summary of key figures • O d intake Order i t k MCHF 176.6 176 6 – down d b -36.1% by 36 1% • Gross sales MCHF 184.8 – down by -31.8% • EBIT MCHF -24.9, underlying MCHF -10.9 • Net result MCHF -24.5, 24 5 underlying MCHF -13.6 13 6 • Free cash flow of MCHF -8.9 • Net working c
Slide 7: Financial Results 2012 Gross sales
Financial Results 2012 Gross sales 300 262.9 271.1 250 200 184.8 160.1 MCHF 150 114.4 100 50 0 2008 2009 2010 2011 2012 • 2012 HY1: MCHF 97.0, HY2: MCHF 87.8 THINK PARTS THINK TORNOS 7
Slide 8: Net sales distribution by region
Financial Results 2012 Net sales distribution by region MCHF 2010 2011 2012 Switzerland 32.1 57.6 39.2 U yoy 79.2% -31.9% Other European countries 85.8 150.9 79.4 U yoy 75.9% -47.4% N th A North America i 22 4 22.4 27 3 27.3 13 9 13.9 U yoy 22.0% -49.1% Asia 13.5 23.4 45.7 U yoy 73 3% 73.3% 95 4% 95
Slide 9: Consolidated income statement
Financial Results 2012 Consolidated income statement MCHF 2010 2011 2012 Gross sales 160.1 271.1 184.8 Rebates and discounts -3.4 -4.2 -3.3 Net sales 156.7 266.9 181.5 Cost of sales -113.5 -180.8 -136.3 Gross profit 43.2 86.1 45.2 Marketing and sales -30.9 -37.0 -32.0 General and administrative expe
Slide 10: Consolidated statement of cash flows
Financial Results 2012 Consolidate statement of cash flows MCHF 2011 2012 Cash flow from operating activities 25.7 -7.1 Cash flow from investing activities -3.9 -1.8 Cash flow from financing activities -8.6 2.8 Variation of cash & cash equivalents 13.2 -6.1 THINK PARTS THINK TORNOS 10
Slide 11: Consolidated balance sheet
Financial Results 2012 Consolidated balance sheet Assets Liabilities/Equity MCHF 2011 2012 MCHF 2011 2012 Cash 17 1 17.1 10 9 10.9 Current liabilities 88 1 88.1 37 9 37.9 7.7% 5.9% 39.9% 20.6% Current 142.7 127.1 Non cur. liabilities 3.2 42.8 64 7% 64.7% 69 1% 69.1% 1 5% 1.5% 23 2% 23.2% Non current
Slide 12: Transformation and non recurrent costs
Financial Results 2012 Transformation and non recurrent costs MCHF 2012 Goodwill -2.9 Impairment intangible assets -7.1 Personnel restructuring costs -4.4 Gain on sale of building 04 0.4 Net impact on operating result -14.0 Calculated tax impact 3.1 Net impact on net result -10.9 • Impairment on int
Slide 13: Underlying profit & loss statement
Financial Results 2012 Underlying profit & loss statement Underlying MCHF A Actual l 2012 O One-time i 2012 Gross sales 184.8 184.8 Rebates and discounts -3.3 -3.3 Net sales 181.5 181.5 Cost of sales -136.3 6.3 -130.0 Gross profit 45.2 6.3 51.5 M k ti Marketing and d sales l -32.0 32 0 05 0.5 -31.5
Slide 14: Restatement interim financial statements 2012
Financial Results 2012 Restatement interim financial statements 2012 June 30, 2012 [MCHF] Actual Impact Restated Gross sales 97.0 97.0 Rebates and discounts -1.2 -1.2 Net sales 95.8 95.8 Cost of sales -65.4 -3.8 -69.2 Gross profit 30.4 -3.8 26.6 Marketing and sales -16.4 -16.4 General and administra
Slide 15: Share capital increase 2013
Financial Results 2012 Share capital increase 2013 MCHF MCHF 10 10 MCHF MCHF 25 25 MCHF Amortization 10 MCHF 40 MCHF 30 Share capital increase Credit facilities comprising Share capital increase • MCHF 40 shareholder loan • MCHF 30 • MCHF 25 committed credit line • Open to all shareholders • MCHF 10
Slide 16: Calendar of events 2013
Calendar of events 2013 April 16 Annual General Meeting, 3 p.m. at the Foyer Moutier May 7 First quarter results 2013 August 13 First half-year results 2013 November 5 Third quarter results 2013 16
Slide 17: Review 2012 / Strategy 2017
Review 2012 Market development and impact Strategy 2017 Implementation status Michael Hauser – Chief Executive Officer 17
Slide 18: Order intake below expectations
Review 2012 Order intake below expectations 300 276.3 250 232.1 214.7 200 176.6 MCHF 150 100 85.5 50 0 2008 2009 2010 2011 2012 • Order intake: ‐36.1% versus 2011 • 2nd semester 2012 weaker than expected 18
Slide 19: Two key market segments suffered
Review 2012 Two key market segments suffered • Automotive: stagnation in Europe • Medical industry: consolidation continues 19
Slide 20: Order intake by region
Review 2012 Order intake by region • Europe: Significant drop (southern Europe ‐58%) • US: No bulk orders as in p previous yyears • Asia: Substantial improvement 20
Slide 21: Impact on product segmentation
Review 2012 Impact on product segmentation ation 16.10.2012 gy 2017 presenta Source: Strateg • Bottom‐up pressure on high‐end business 21
Slide 22: Impact on future portfolio
Review 2012 Impact on future portfolio ation 16.10.2012 gy 2017 presenta Source: Strateg • Realignment of future product portfolio Æ reallocation of resources • Impairment of intangible assets and goodwill MCHF 10.0 22
Slide 23: Impact on footprint Switzerland
Review 2012 Impact on footprint Switzerland urce: Strategy 2017 presentation 16.10.2012 Sou • Footprint Switzerland: Restructuring and FTE reduction (‐30%) • Related nonrecurring costs: MCHF 4.444 • Sale of building: positive one‐time effect MCHF + 0.4 23
Slide 24: Strategy 2012 – 2017: Six strategic thrusts
Strategy 2012 – 2017 Six strategic thrusts 1 Internationalization of business 2 Strengthen flexibility 3 Growth through innovation 4 Make service a business 5 Enhance operational excellence 6 Offer unique solutions for targeted market segments 24
Slide 25: Product novelties: MultiSwiss
Strategy 2017 – Status Product novelties MultiSwiss Multi-spindle • Introduction at EMO Hanover 2011 • Order intake 48 units since launch • New applications for multi- spindle products Micromechanics Medtec Automotive Electronics 25
Slide 26: Product novelties: Swiss ST
Strategy 2017 – Status Product novelties Swiss ST 26 Swiss-type • Introduced at IMTS Chicago ((USA), ) Metalex ((TH)) and DMP (CN) • Well accepted and right positioned mid-range product • Special application packages for targeted segments • Activities 2013 - Market launch in Europe - Product line ex
Slide 27: Product novelties: ALMAC CU 2007 / CU 3007
Strategy 2017 – Status Product novelties ALMAC CU 2007 / CU 3007 Micro milling • Introduction at AMB Stuttgart g 2012 • Joint development with a Taiwanese partner • Extend applications into further market segments • Market launch in 2013 27
Slide 28: Product novelties: Cyklos
Strategy 2017 – Status Product novelties Cyklos Surface processing system • First machines installed and accepted p • Stable process results • Automotive sector shows strong interest • Further marketing and sales efforts needed (paradigm shift) 28
Slide 29: Product innovation: SwissNano
Strategy 2017 – Status Product innovation SwissNano Swiss-type • World premiere at 5th Tornos Watch Days y 2013 • Next event: Baselworld • Innovative mid-range product for high-precision applications (focus on micromechanics) • Time-to-market 14 months • Developed and manufactured 100% in Switzerlan
Slide 30: Product innovation: SwissNano
Strategy 2017 – Status Product innovation SwissNano 30
Slide 31: Strategy 2017 – Status: Asia initiative
Strategy 2017 – Status Asia initiative • Taiwan operations (joint development p and production of upper mid- range products) well on track • Supply with spare parts from new hub in Shanghai fully operational • Market coverage increase in China • Further activities to support aforementioned activitie
Slide 32: Strategy 2017 – Status: Structure & Processes
Strategy 2017 – Status Structure & Processes • New spindle center in Moutier ((opening p g in 2013)) • «Inhouse outsourcing» of machining activities • Increased sourcing from lower cost countries • Time-to-market acceleration • Continuous process optimization in Swiss plants («lean» concept) 32
Slide 33: Priorities 2013
Priorities 2013 Pursue strategic reorientation according to medium- term plan • Strengthen footprint Asia • Further process and structure optimization • Capitalize on new products Cope with economic environment • Foreign g exchange g rate volatility y and pressure p • Public debt crisis 33
Slide 34: Inquiries
Inquiries Investors relations: Luc Widmer +41 32 494 42 33 widmer.l@tornos.com Media relations: Patrick G. Köppe +41 32 494 45 46 koeppe.p@tornos.com For more details on Tornos Group, please refer to www.tornos.com Photo credentials p. 31: Amy Nichole Harris / Shutterstock.com 34
Slide 35: Disclaimer
Disclaimer Tornos Holding Ltd is confirming its best efforts to present accurate and up-to-date information in this document. Tornos Holding Ltd gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liabilit