Slide 1: Financial Year 2023 Media and Analysts' Conference
Financial Year 2023 Media and Analysts̕̕̕̕ Conference 15-3-2024 1
Slide 2: Shaping the future of the global metal-cutting machine tool industry
Shaping the future of the global metal-cutting machine tool industry 15-3-2024 2
Slide 3: Speakers
Media and Analysts̕̕ Conference Speakers Michael Hauser Stéphane Pittet CEO CFO 15-3-2024 3
Slide 4: Agenda
Agenda 01 Successful Merger 06 Stories 02 Reporting 2023 07 Strategy 03 Business Development 08 Outlook 04 Financial Report 09 Investment Case 05 Sustainability 10 Q&A 15-3-2024 4
Slide 5: Successful Merger
Successful Merger Michael Hauser Stéphane Pittet CEO CFO 15-3-2024 5
Slide 6: Successful Merger
Successful Merger 15-3-2024 6
Slide 7: StarragTornos
Successful Merger StarragTornos 01 Merger approved by an overwhelming Together we want to shape the future majority of shareholders at the end of of the global metal-cutting machine tool November 2023. industry. 15-3-2024 7
Slide 8: Leading supplier in the global machine tool industry
Successful Merger Leading supplier in the global machine tool industry 01 Merger from a position of Promising growth Added value thanks to synergy strength opportunities effects Starrag und Tornos are joining Long-term profitable growth thanks Improved profitability through forces as manufacturers o
Slide 9: Pro forma vs. official annual financial statement
Reporting Pro forma vs. official annual financial statement Absorption merger 02 Annual Figures of Starrag are consolidated with the results of Tornos for the month of December 2023 12 months of Starrag Group plus 1 month of Tornos Group Realistic picture Pro forma figures for StarragTornos on an an
Slide 10: Business Development
Business Development 15-3-2024 10
Slide 11: Key figures at a glance
Business Development Key figures at a glance (CHF million) Order intake1) Pro forma2) 2023 528.7 Pro forma2) 2022 589.9 Change (%) -10.4% Annual Financial Statements3) 2023 392.2 03 Annual Financial Statements4) 2022 395.8 Change (%) -0.9% Net sales 564.7 499.0 13.2% 409.0 317.6 28.8% EBIT1) 46.4 29
Slide 12: Order intake by target markets
Business Development Order intake by target markets Aerospace Med Tech & Dental Group 2023 83.8 43.1 Group 2022 71.5 50.5 03 +/-% +17% -15% Luxury Goods 101.1 113.7 -11% Energy 16.4 45.1 -64% Transportation 52.0 48.6 +7% Industrial 91.2 121.5 -25% Total Machines 387.6 450.9 -14% Service 141.1 139.0
Slide 13: Order intake by region
Business Development Order intake by region Europe Switzerland Group 2023 264.1 94.2 Group 2022 307.1 118.7 03 +/-% -14% -21% Americas 50.1 53.2 -6% Asia 73.4 90.6 -19% Total Machines 387.6 450.9 -14% Service 141.1 139.0 +2% Total 528.7 589.9 -10% Pro forma figures in CHF million (non-audited) 15-3-
Slide 14: Net sales (machines and service)
Business Development Net sales (machines and service) Machines Service Group 2023 428.4 136.3 Group 2022 371.3 127.7 03 +/-% +15% +7% Total 564.7 499.0 +13% Pro forma figures in CHF million (non-audited) 15-3-2024 14
Slide 15: Financial Report
Financial Report 15-3-2024 15
Slide 16: Financial Report
Financial Report Michael Hauser Stéphane Pittet CEO CFO 15-3-2024 16
Slide 17: Pro forma vs. financial results
Financial Report Pro forma vs. financial results Pro forma Real aggregated performance (non audited) Profit & loss Accounting standards 04 Financial results (audited) FY Starrag FY Starrag FY Tornos 1 Month Tornos (December 2023 only) Balance sheet Picture per 31.12.2023 (audited) Cash flow Financia
Slide 18: At a glance – 5-year comparison
Financial Report At a glance – 5-year comparison Order intake 583 590 529 Order backlog 395 341 Net sales 623 565 EBIT 04 318 315 499 479 464 400 46.4 201 291 29.6 11.2 12.1 1.8% 2.6% 5.9% 8.2% 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Pro fo
Slide 19: Order backlog ensures capacity utilization
Financial Report Order backlog ensures capacity utilization Order intake HY2 479 Order intake HY1 583 Order backlog 590 529 • Order intake 2023: 04 Contraction but good resistance considered the economical context 288 329 395 266 • Order backlog: 229 341 Capacity utilization secured 318 315 291 with
Slide 20: Leap in sales in 2023 +13.1%
Financial Report Leap in sales in 2023 +13.1%, foreign currency adjusted +15.8% Net sales +13.1% 13 565 04 Material effect from currency fluctuations 79 499 • Limited impact 2022 Organic Currency effect 2023 Pro forma figures in CHF million (non-audited) 15-3-2024 20
Slide 21: Income statement
Financial Report Income statement Revenues 499 565 565 Expenses 499 04 • Significant increase in sales and operating result. Target of EBIT margin of 8% exceeded. 239 • Increase by 13.2% in sales and Net sales by 56.8% in EBIT 207 15.5% Material/inventory change Personnel Other operating expenses/ 1
Slide 22: Key figures at a glance
Financial Report Key figures at a glance (CHF million) Pro forma2) (non audited) Pro forma2) (non audited) Annual Financial Statements3) (audited) Annual Financial Statements4) (audited) entry 04 • Good resistance in the order • Increase of performance in sales thanks to a better 2023 2022 2023 2022
Slide 23: Financial result
Financial Report Financial result (CHF million) Operating result EBIT 2023 35.7 2022 18.6 04 • Balance sheets positions in foreign currencies have impacted our financial results Interest expense, net -1.4 -0.3 • Still potential savings with carry Other financial result -2.7 -0.2 forward losses in va
Slide 24: EBIT Bridge
Financial Report EBIT Bridge 41.1 04 • EBIT almost doubled in 2023 thanks to the increase in production output and limited -2.5 increase in indirect costs 35.7 -8.3 -0.1 1.7 18.6 EBIT Restructuring Gross Other Personnel Depreciation EBIT 2022 profit operating 2023 expenses Financial result (audited)
Slide 25: Balance sheet: Strong financial base
Financial Report Balance sheet: Strong financial base Cash Receivables Assets 60 114 56 166 Liabilities 04 • Solid equity ratio of 58.7% • Net liquidity of CHF 20 million • Increase in total assets mainly due to the merge with Tornos Holding Inventories 21 1 Ltd. on December 7, 2023 Fixed assets Fin
Slide 26: Intact free cash flow
Financial Report Intact free cash flow 11.1 7.7 7.8 -7.7 1.9 FY 2022 -0.7 12.3 -7.0 1.1 0.0 6.4 04 • Figures strongly influenced by 15.8 28.2 the merge 25.2 2.7 transaction 22.5 • Still a healthy -7.7 cash flow, -0.7 despite increase in working 0.1 capital -7.0 Net Depreciation Change in net Long-te
Slide 27: Market capitalization
Financial Report Market capitalization CHF 260 million Equity according to balance sheet Market value according to CHF 316.3 million CHF 568 million 04 Share value in no relation with our performance and our size merger fairness opinion Net profit (pro forma) CHF 32.4 million StarragTornos is a gr
Slide 28: Sustainability speakers
Sustainability Michael Hauser Stéphane Pittet CEO CFO 15-3-2024 28
Slide 29: Sustainability
Sustainability 15-3-2024 29
Slide 30: ESG Strategy
Sustainability ESG Strategy 05 Environment Products People Ethics and Governance Reduce greenhouse gases Improve energy efficiency of Valuing employees, Maintain corporate values, and waste, reduce fossil products. Ecological design promoting talent, preventing enforce compliance, energy consumption
Slide 31: Stories
Stories Innovation and precision: at the heart of industry, from aeronautics to fine watchmaking and ultrasonic surgery 15-3-2024 31
Slide 32: Stories
Stories Innovation and precision: at the heart of industry, from aeronautics to fine watchmaking and ultrasonic surgery 15-3-2024 32
Slide 33: A highly dynamic duo
Benchmark in the aircraft industry A highly dynamic duo Client: Premium AEROTEC’s Varel plant, north Germany Project: Highly complex machining components made of aluminum and titanium Manufacturing system: Starrag ECOSPEED F 2040, consisting of two linked machining centers ECOSPEED F 2040 • Reductio
Slide 34: The specialist in high-power ultrasound
High-power ultrasound for dentistry and surgery The specialist in high-power ultrasound Client: ACTEON Project: ultrasonic dental and surgical equipment Manufacturing system: EvoDECO 16, EvoDECO 10, DECO 10, DECO 13. EvoDECO DECO • Unique productivity thanks to 4 independent tool • Complete product
Slide 35: And playing a starring role
Small, sophisticated, exclusive And playing a starring role Client: Niru Diamonds Israel, Tel Aviv (Niru Swiss) Project: Jewelry and watchmaking Manufacturing system: Bumotec s191V Bumotec s191V • Cycle time reduction: Complete complex parts in one set-up from a blank or a short bar • Wider market o
Slide 36: Strategy
Strategy “StarragTornos
Slide 37: Cornerstones of the StarragTornos strategy
Strategy Cornerstones of the StarragTornos strategy Customer and market-oriented innovation We create added value for our customers: • Expertise in entire machining systems – from software development to application and system integration through to after-sales service Worldwide geographical presenc
Slide 38: Cornerstones of the StarragTornos strategy
Strategy Cornerstones of the StarragTornos strategy Comprehensive Services Operational Excellence 07 Strengthening of position through the targeted use of operational synergies Strong focus on services – in line with sustainability requirements and the circular economy 15-3-2024 38
Slide 39: Target markets
Strategy Target markets Target markets 07 Aerospace MedTech & Dental Luxury Goods Energy Transport Industrial • Globalization and • Demographic • Rising incomes and • Substitution of fossil • Increasing • Increasing urbanization desire for mobility change the pursuit of wealth energy demand for food
Slide 40: Brand strategy and product ranges
Strategy Brand strategy and product ranges Tornos’ product ranges 07 • Swiss-type automatic lathes (SwissDeco, EvoDeco, Swiss XT, Swiss GT, Swiss DT, SwissNano) • Multispindle machines (MultiSwiss) • Milling systems (BA) Starrag’s product ranges • Berthiez • Heckert • Bumotec • Scharmann/Ecoforce •
Slide 41: Outlook
Outlook Ll StarragTornos 15-3-2024 41
Slide 42: Promising opportunities
Outlook Promising opportunities New opportunities thanks to merger: • Possibility to significantly increase global market presence 08 • Further expansion of attractive customer segments • New fields of activity and markets thanks to worldwide scalability of our expertise In the medium term, we are a
Slide 43: Investment Case StarragTornos Group
Investment Case StarragTornos Group 09 Targeted annual Targeted EBIT margin Attractive dividend with P/E ratio of increase in sales of of over a payout ratio of 6.9 5% 8% 35-50% offers great potential for positive share price performance 15-3-2024 43
Slide 44: Disclaimer
Disclaimer The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of StarragTornos Group. This document contains certain statements related to the future business and financial performance
Slide 45: Thank you for your attention
~ StarragTornos Thank you for your attention