Rieter Holding Ag · SIX:RIEN
Rieter — H1 2024 Earnings Presentation
32 slides from Rieter's earnings presentation, Jul 18, 2024
Slide 1: Half-Year Results 2024
Half-Year Results 2024 Media and Investor Presentation, July 18, 2024 Thomas Oetterli, Group CEO Oliver Streuli, Group CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Market 03 “Next Level” Performance Program 04 Financials 05 Outlook Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 2
Slide 3: Key Messages
1 Key Messages Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 3
Slide 4: Rieter Group – Key Messages
Rieter Group – Key Messages Order Intake Performance Program “Next level” Sales CHF 403.4 million (+24%) significant cost reduction CHF 421.0 million (-44%) EBIT Market Situation Free Cash Flow CHF -1.1 million CHF 8.9 million (-65%) challenging (2023: CHF 10.0 million) Net Profit Campus Order Backl
Slide 5: Market
2 Market Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 5
Slide 6: Spinners Margin vs. Cotton Price
Spinners Margin vs. Cotton Price CHF/KG CHF/KG Average Spinners Margin Ne 301 Average Cotton Price2 2 4 3 1 2 1 0 0 HY1 22 HY2 22 HY1 23 HY2 23 HY1 24 HY1 22 HY2 22 HY1 23 HY2 23 HY1 24 RoW India China World 1Equals yarn price minus fiber price; 2Cotlook A Half-Year Results 2024 . Media & Investor P
Slide 7: Spinning Mills – Capacity Utilization
Spinning Mills – Capacity Utilization Average in % ‒ Signs of slow recovery in India in the first half of 100 100 2024 90 87 84 86 82 80 79 76 77 ‒ China and RoW at an unchanged level 70 68 68 66 67 67 67 67 60 54 54 55 54 50 46 40 30 20 10 0 HY1 2022 HY2 2022 HY1 2023 HY2 2023 HY1 2024 RoW India Ch
Slide 8: Market Situation
Market Situation Market recovery continues to be spearheaded by Asia RoW India China Africa Increasing volumes Continued positive investment Market Asian countries1 Still rather low margins sentiment Europe Remains strongest market North and South America Türkiye Order of Egyptian Holding Offer pipe
Slide 9: “Next Level”
3 “Next Level” Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 9
Slide 10: “Next Level” Performance Program
“Next Level” Performance Program Significant overhead cost reductions as a result of the program -26% 161.4 ‒ Significant decrease in R&D and SG&A cost 150.3 due to performance program “Next Level” 41.3 35.5 ‒ Additional measures to reduce operating 119.8 expenses implemented in 1HY 2024 given 25.3
Slide 11: Financials
4 Financials Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 11
Slide 12: Financials – Key Messages
Financials – Key Messages Order Intake Sales CHF 403.4 million (+24%) CHF 421.0 million (-44%) EBIT Gross Profit CHF 8.9 million (-65%) CHF 122.2 million (-33%) Net Debt Free Cash Flow CHF -243.9 million CHF -1.1 million (2023: CHF -298.9 million) (2023: CHF 10.0 million) Half-Year Results 2024 . Me
Slide 13: Order Intake
Order Intake Increase in order intake driven by strong rebound in order momentum in Business Group Machines & Systems CHF million +24% -10.2 -4.9 -16.1 403.4 109.6 325.0 1HY 2023 Machines & Systems Components After Sales FX impact 1HY 2024 (in local currencies) (in local currencies) (in local curren
Slide 14: Sales
Sales Decline in sales due to lower volumes in Business Group Machines & Systems CHF million -44% 758.2 -320.7 -15.1 421.0 6.8 -8.2 1HY 2023 Machines & Systems Components After Sales FX impact 1HY 2024 (in local currencies) (in local currencies) (in local currencies) Half-Year Results 2024 . Media &
Slide 15: Order Backlog
Order Backlog Order backlog remained stable over the past six months CHF million ‒ Order cancellations first half 2024 on a normal level 1’840 ‒ Order backlog by the end of 1HY 2024 amounts to 1’540 more than half of a “low” scenario sales volume 650 640 560 2020 2021 2022 2023 1HY 2024 Half-Year Re
Slide 16: EBIT Margin
EBIT Margin Remains positive despite low sales level in 1HY 2024 CHF million ‒ Lower than “low” scenario sales volume level in EBIT 3.3% 1HY 2024 ‒ Realization of price increases and mix changes between business groups supported higher gross margin (29.0%; vs. 23.9% in 1HY 2023) EBIT 2.1% ‒ Signific
Slide 17: EBIT
EBIT Volume impact almost compensated by cost measures CHF million 25.2 8.9 1.2 25.6 -80.6 16.0 21.5 1HY 2023 Gross Profit Gross Profit R&D SG&A Other income (net) 1HY 2024 (Volume effect) (Mix/margin effect) “Next Level” Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 17
Slide 18: Free Cash Flow
Free Cash Flow Strong operating Free Cash Flow generation before cash-outs related to the “Next Level” performance program CHF million -12.4 49.9 35.1 -23.1 -1.3 26.8 -30.2 1.7 2.3 -1.1 Net Profit D&A Taxes Change in Capex Adjusted Free Cash-out Change in Other items Free Cash Flow operating NWC Cas
Slide 19: Balance Sheet
Balance Sheet CHF million CHF million In % Net Working Capital (NWC) Net debt Equity ratio +36.1 -52.7 +3.1pp 22.6 -191.2 -243.9 28.8% 31.9% -13.5 Dec 2023 Change Jun 2024 Dec 2023 Change in Jun 2024 Dec 2023 Change in Jun 2024 in NWC net debt equity ratio ‒ Settlement of short-term provisions, ‒ Le
Slide 20: Workforce Development
Workforce Development FTE1 -22% ‒ Performance program “Next Level” results in 6’786 significant decrease compared to 1HY 2023: 1’231 5’693 5’304 ‒ Temporary employees (-758 FTE) and 612 473 -13% ‒ Permanent employees (-724 FTE) 5’555 5’081 4’831 1HY 2023 2HY 2023 1HY 2024 Temporaries Permanent 1 FTE
Slide 21: Outlook
5 Outlook Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 21
Slide 22: Outlook for the Full Year 2024 Specified
Outlook for the Full Year 2024 Specified ‒ The markets remain under pressure from the economic slowdown, high inflation rates and noticeably dampened consumer sentiment. The first signs of a recovery in financial year 2024 have emerged in the key markets of China and India. Rieter expects demand to
Slide 23: Q&A
Q&A Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 23
Slide 24: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever
Slide 25: Appendix
Appendix Half-Year Results 2024 . Media & Investor Presentation . July 18, 2024 Page 25
Slide 26: Rieter Group – First Half 2024
Rieter Group – First Half 2024 2024 25.4 2023 44.7 2024 76.7 2024 94.2 2024 74.4 Sales CHF million 2023 78.5 2023 227.0 2023 83.7 2024 421.0 2024 54.3 2024 37.3 2024 58.7 2023 758.2 2023 131.5 2023 105.5 2023 87.3 North and Asian 1 Excluding China, India, and Türkiye Europe South America Türkiye Afr
Slide 27: Order Intake by Business Group
Order Intake by Business Group January – June January – June Difference in CHF million 2023 2024 Difference local currency Rieter 325.0 403.4 24% 29% Machines & Systems 111.4 211.5 90% 98% Components 131.0 117.6 -10% -8% After Sales 82.6 74.3 -10% -6% Half-Year Results 2024 . Media & Investor Presen
Slide 28: Sales by Business Group
Sales by Business Group January – June January – June Difference in CHF million 2023 2024 Difference local currency Rieter 758.2 421.0 -44% -43% Machines & Systems 521.9 198.7 -62% -61% Components 143.9 126.5 -12% -11% After Sales 92.4 95.8 4% 7% Half-Year Results 2024 . Media & Investor Presentatio
Slide 29: Sales by Region
Sales by Region January – June January – June Difference in CHF million 2023 2024 Difference local currency Rieter 758.2 421.0 -44% -43% Asian countries1 227.0 94.2 -59% -58% China 83.7 74.4 -11% -7% India 131.5 58.7 -55% -54% Türkiye 78.5 76.7 -2% 0% North and South America 105.5 54.3 -49% -48% Eur
Slide 30: Key Figures – First Half of 2024
Key Figures – First Half of 2024 CHF million HY1 2023 HY1 2024 Comments ‒ Market activities improved against 2023 half year, particularly in Order intake 325.0 403.4 the Machines & Systems business ‒ Decline in sales (-44%) driven by the Machines & Systems Sales 758.2 421.0 business following the we
Slide 31: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5.00 nominal value 30/06/2023 31/12/2023 30/06/2024 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 491 814 4 491 814 4 505 401 Average shares undiluted (of period) 4 487 113 4 489 283 4 501 014
Slide 32: Financial Calendar
Financial Calendar Investor Update 2024 October 23, 2024 Capital Market Day 2024 October 28, 2024 Publication of sales 2024 January 29, 2025 Deadline for proposals regarding the agenda of the Annual General Meeting February 28, 2025 Results press conference 2025 March 13, 2025 Annual General Meeting