Bystronic Ag · SIX:BYS
Bystronic — H1 2024 Earnings Presentation
21 slides from Bystronic's earnings presentation, Jul 19, 2024
Slide 1: Half-year 2024 results
Half-year 2024 results Zurich, July 19, 2024 Domenico Iacovelli, CEO Beat Neukom, CFO
Slide 2: Disclaimer
Disclaimer The information in this presentation relating to the business performance of the Bystronic Group is of a summary nature only. The information published in the Half-Year Reports 2023 and 2024 of Bystronic AG, and the information on the website www.bystronic.com prevails. Although the great
Slide 3: Agenda
Half-year results 2024 Agenda Business review and first impressions Domenico Iacovelli Financial review Beat Neukom Outlook Domenico Iacovelli Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner Beat Neukom
Slide 4: Welcome and introduction
Welcome and introduction About Born 1976 Swiss national 20 years of experience in the sheet metal industry Started his career as software engineer Was CEO of Schuler AG in one of his last positions Was a member of the Executive Committee at listed ANDRITZ group Joined Bystronic in June 2024 and took
Slide 5: First impressions
First impressions Onboarding Highlights Focus areas • Joined on June 1 and in charge as CEO • Bystronic spirit Customers – reversal of order intake trend since July 1 and strengthen market position • Highly innovative machines, high-tech • Visited all regions and main sites – USA, business with larg
Slide 6: Key figures first half 2024
Key figures first half 2024 CHF 304.7m CHF 330.9m CHF -23.0m Order intake Net sales EBIT Order intake declines by 27.6% Net sales down 29.3% Loss due to low sales volumes (-24.5% at constant exchange (-26.3% at constant exchange - EBIT of CHF 25.3m last year rates) rates) -15.2% CHF -26.9m CHF 303.7
Slide 7: Insights into current market dynamics – weak development in key sectors affects our order intake
Insights into current market dynamics – weak development in key sectors affects our order intake AG ECONOMY BAROMETER Index via a survey of producer – sense of the health of agriculture economy in the US 200 150 trend line 100 50 0 Jan 21 July 21 Jan 22 July 22 Jan 23 July 23 Jan 24 June 24 Customer
Slide 8: Commercial progress in the first half 2024
Commercial progress in the first half 2024 • Strengthen our portfolio in the lower silver segment with the launch of the new ByCut Eco and Nova Systems • Strengthen project execution capabilities in our solutions business and reduce project deviations Systems Cutting. Bending. Automation. Launch of
Slide 9: Agenda
Half-year results 2024 Agenda Business review and first impressions Domenico Iacovelli Financial review Beat Neukom Outlook Domenico Iacovelli Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner Beat Neukom
Slide 10: Continued weak market environment in all regions
Continued weak market environment in all regions Regions • EMEA: weak development across market – but some sequential improvements quarter-over-quarter EMEA • Americas: weaker Q2 in light of Order intake -21% China increasing uncertainties, also ahead Americas of US elections and high interest Net s
Slide 11: Strong negative leverage impact: lower sales volumes result in a loss
Strong negative leverage impact: lower sales volumes result in a loss in CHF million H1 2024 H1 2023 Net sales 330.9 468.3 Sales decline of 29% - due to weak demand and normalized level of backlog Other operating income 2.2 1.8 Material expenses (134.9) (198.7) + changes in inventories Improved gros
Slide 12: Update from our cost optimization program
Update from our cost optimization program Details Measures taken • Reduce management layers and increase Optimized leadership structures in EMEA span of control and APAC • Reduce overhead Reduced FTEs in various admin functions Organization • Establish readiness for next economic upswing Ongoing Str
Slide 13: Continued strong balance sheet provides stability in a challenging environment
Continued strong balance sheet provides stability in a challenging environment in CHF million June 30, 2024 Dec 31, 2023 Cash and securities 303.7 348.8 Cash: Lower liquidity due to negative operating free cash flow Trade receivables 110.5 117.5 and dividend payment Inventories 244.4 237.9 Other cur
Slide 14: Cash flow development
Operating free cash flow impacted by negative net result in CHF million H1 2024 H1 2023 Cash flow development Net result (20.8) 19.8 • Negative cash flow performance due Depreciation and amortization 10.2 10.2 to insufficient sales to cover cost Increase/decrease in: base inventories 3.3 (23.0) • Ne
Slide 15: Agenda
Half-year results 2024 Agenda Business review and first impressions Domenico Iacovelli Financial review Beat Neukom Outlook Domenico Iacovelli Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner Beat Neukom
Slide 16: Continued weak market environment and limited visibility
Continued weak market environment and limited visibility Remarks • No signs of market recovery: continued weak demand expected, especially in key sectors such as agriculture • Focus on measures to move closer to customers, become more efficient and improve customer experience • Focus on reducing the
Slide 17: Questions & Answers
Questions & Answers
Slide 18: Appendix
Bystronic
Slide 19: Key figures
Key figures in CHF million H1 2024 H1 2023 Δ in % Δ in % at CER1 Order intake 304.7 420.9 (27.6) (24.5) Order backlog 238.5 354.1 (32.7) (32.3) Net sales 330.9 468.3 (29.3) (26.3) Systems business 220.0 345.5 (36.3) (33.7) Service business 110.8 122.9 (9.8) (5.5) Operating result (EBIT) (23.0) 25.3
Slide 20: Regional performance
Regional performance Order intake Net sales in CHF million in CHF million in % in % H1 2024 H1 2023 in % H1 2024 H1 2023 in % at CER 1 at CER 1 EMEA 151.6 198.4 (23.6) (20.7) 150.8 235.8 (36.0) (33.4) Americas 110.3 145.7 (24.3) (21.6) 131.4 164.5 (20.1) (17.3) China 25.1 33.5 (25.1) (19.3) 27.9 34.
Slide 21: Financial calendar
Financial calendar 2024 August 15 Roadshow ZKB Zurich September 18 Investora conference in Zurich November 3 ZKB Swiss Equities Conference in Zurich