Starragtornos Group Ag · SIX:STGN
Starragtornos — Tornos Holding — Media & Analysts Conference, Zurich, March 16, 2015
24 slides from Starragtornos's conference presentation, Mar 16, 2015
Slide 1: Media & Analysts Conference, Tornos Holding Ltd.
M di & Analysts Media A l t Conference C f Tornos Holding g Ltd. Zurich, March 16, 2015 THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 1 S Speakers k François Frôté – Chairman of the Board Luc Widmer – Chief Financial Officer Michael Hauser – Chief Executive Officer TH
Slide 2: Agenda
A Agenda d Welcome Overall Review François Frôté, Chairman Financial Results 2014 Luc Widmer, CFO Strategy 2017 – Halfway point reached Michael Hauser, CEO Questions and Answers THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 3 O Overall ll R Review i François Frôté – C
Slide 3: Key Financials and Achievements
Key Financials MCHF 2013 2014 Order intake 151.9 183.2 Net sales 150.8 175.8 EBIT -32.7 32.7 2.8 Net result -35.6 3.0 Free cash flow 1.5 13.6 THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 5 Achievements ¾ Back in black figures ¾ Substantial growth in orders and sales
Slide 4: Financial Results 2014 Summary
Fi Financial i l Results R lt 2014 Luc Widmer – Chief Financial Officer THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 7 Financial Results Summary ¾ Order intake up by 20,6% 20 6% to MCHF 183.2 183 2 ¾ Net sales up by 16,6% to MCHF 175.8 ¾ EBIT MCHF 2.8 vs. MCHF -32.7
Slide 5: Order intake and regions
Financial Results Order intake MCHF 200 183 2 183.2 +20.6% 151.9 150 100 50 0 2013 2014 Growth driven by Europe and Asia THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 9 Financial Results Order intake - Regions 2013 2014 4% 10% 11% 24% 79% 72% Europe Asia Americas ¾ Ma
Slide 6: Order intake by segments
Financial Results Order intake by Segments 2013 2014 16% Automotive 13% 22% Medical 32% 16% Electronics 19% Watch/Precision 21% Job Shop 19% Others 11% 17% 6% 8% ¾ Electronics back at normal weight ¾ Strong interest in ¾ Automotive, Automotive Medical and MultiSwiss by Automotive Watchmaking stable
Slide 7: Net sales and income statement
Financial Results Net sales MCHF 200 175.8 150.8 +16.6% 150 100 50 2013 2014 Machine business +19% driven by Europe and Asia THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 13 Financial Results Income statement in % of in % of 2013 sales 2014 sales Net sales 150.8 175.8
Slide 8: EBIT to Net result and Balance Sheet
Financial Results EBIT to Net result in % of in % of 2013 sales 2014 sales EBIT -32.7 -21.7% 2.8 1.6% Interest expense - net -2.2 -1.4% -0.4 -0.2% FX result FX-result -0.5 05 -0.3% 0 3% 09 0.9 0 5% 0.5% EBT -35.3 -23.4% 3.3 1.9% Income taxes -0.3 -0.2% -0.4 -0.2% Minorities 0.0 0 0% 0.0% 0.1 0 1% 0.
Slide 9: Capital employed and net working capital
Financial Results Capital employed 200 400 372 165.9 159.6 350 150 126.9 300 MCHF Days 100 91.7 255 85 6 85.6 D M 250 227 222 50 200 178 0 150 2010 2011 2012 2013 2014 Capital employed Days capital employed Reduction of the capital employed as a consequence of the focused measures THINK PARTS THINK
Slide 10: Inventories and trade receivables
Financial Results Inventories 100 300 92.1 296 84.4 78.2 75 250 59.8 57.1 MCHF Days 50 D M 209 200 25 173 169 170 0 150 2010 2011 2012 2013 2014 Inventories Days in inventory Inventories lowered despite full integration of supply chain for Asian products THINK PARTS THINK TORNOS Media & Analysts Con
Slide 11: Net cash development and FOREX exposure
Financial Results Net cash development MCHF 20 2.2 -0.2 0.8 789 15.1 15 2193 -196 -1.1 -1115 0.8 752 6.5 6460 10 5.5 5473 5 0.7 0 Net cash EBITDA Net working Other non- Interests CAPEX Divestments Other Net cash 2013 capital cash items and taxes 2014 Strong cash flow performance allowing accumulatio
Slide 12: FOREX exposure measures and In a Nutshell
Financials FOREX exposure - measures • Selective pricing adjustments Market • Acceleration of overhauling business • Increase of working hours in CH plants from 40 to 43 hours/week Producttivity • Acceleration of lean initiative • Efficiency program launched • Savings initiative in CHF procurements
Slide 13: Calendar of events 2015 / Strategic reorientation 2017
Calendar of events 2015 April 14 Annual General Meeting 3 p.m. at the Foyer Moutier May 5 First quarter results 2015 August 11 Half-year results 2015 November 3 Nine months results 2015 THINK PARTS THINK TORNOS Media & Analysts Conference, Zurich – March 16, 2015 25 Strategic reorientation 2017 Half
Slide 14: Strategy 2015–2017: Six strategic thrusts
Strategy 2015 – 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 THINK PARTS THINK TORNOS Media & Analysts Conference, Zu
Slide 15: Internationalization: Geographical production footprint
Internationalization of business Geographical production footprint Chaux‐de‐Fonds 2014 2008 Moutier X’ian Surface: 800m2 Surface: 2500m2 Capacity: 100 mc p.a Capacity: 1000 mc p.a. Taichung 1904 2013 Surface: 13500m2 Capacity: 500 mc p.a Surface: 2300m2 Capacity: 250 mc p.a Development p and p produ
Slide 16: Internationalization: Tornos Xi'an
Internationalization of business Tornos Xi’an History y ¾ Chinese JV partner shortlisted in Q1/2013; Tornos with 70% stake ¾ Announcement of JV in Q2/2013 ¾ First product (CT 20) delivered in Q1/2014 ¾ Relocation to new facility (Oct 2014) ¾ Next product scheduled for Q2/2015 FTE 45 (overall) Produc
Slide 17: Tornos Taiwan and Strengthen flexibility
Internationalization of business Tornos Taiwan History y ¾ Taiwanese OEM contract manufacturer selected in 2012 ¾ 1st product (Swiss ST 26 NCE) presented in Q4/2012; delivery Q1/2013 CE version in Q3/2013; delivery Q4/2013 ¾ 2nd product (Swiss GT 26) presented in Q3/2014; delivery Q4/2014 ¾ Next pro
Slide 18: Structural cost reduction and order intake by origin
Strengthen flexibility Structural cost reduction MCHF 140 133 ‐33 120 ‐8 100 ‐2 3 93 80 Operating Personnel Other Depreciations/ Asia Operating costs expense expense amortizations operations costs 2011 2014 What we said in 2012: cost reduction of MCHF 30 – 35 What was achieved: > MCHF 40 sustainable
Slide 19: Growth through innovation: MultiSwiss, EvoDECO 32
Growth through innovation Capitalize on latest products • Presented at EMO Hanover 2011 • Outperforms p competition p in terms of precision and application variety • Growing number of projects in three target market segments • Repeat orders; projects in pipeline for batch orders • 100 machines large
Slide 20: SwissNano and Swiss GT 26
Growth through innovation Mid-range for high-precision • Introduced at 5th Tornos Watch Days 2013 • Innovative Swiss-type mid- range product • Tailored to high-precision applications ((focus ocus o on micromechanics) c o ec a cs) • Common platform with SwissNano Micromilling ALMAC BA 1008 • Develope
Slide 21: CT 20 and TISIS software
Growth through innovation Entry-level for emerging markets • Introduced in China at the end of 2013; globally in 2014 • First product from JV Tornos Xi’an • Well perceived by customers • Sold through two sales channels (direct / indirect) in China CT 20 THINK PARTS THINK TORNOS Media & Analysts Conf
Slide 22: Portfolio renewal and service business
Growth through innovation Portfolio renewal on track 2013 2014 28% 38% 35% 46% 26% 27% New Current Phase‐out ¾ EvoDECO 20/32 ¾ Swiss GT 26 ¾ SwissNano ¾ CT 20 ¾ BA 1008 ¾ MultiSwiss Y-axis Product portfolio renewal in full swing Further novelties to hit the market in 2015 THINK PARTS THINK TORNOS Me
Slide 23: Priorities and outlook for 2015 / Inquiries
Priorities and outlook for 2015 Pursue strategic reorientation according to medium- term plan ¾ Master challenges caused by strong Swiss franc ¾ Implement lean manufacturing in Moutier ¾ Further strengthen service business ¾ IIntroduction t d ti off new products; d t capitalize it li on platform l t
Slide 24: 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 di l i disclaims any l
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