Rieter Holding Ag · SIX:RIEN
Rieter — Baader Swiss Equities Conference 2019
22 slides from Rieter's conference presentation, Jan 10, 2019
Slide 1: Rieter - Investor Update 2018
Rieter - Investor Update 2018 . Baader . . January –. Swiss . .Equities 10,. 2019 . Conference . . . . – January . . . 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Slide 2: Agenda
Agenda 1. Key Messages 2. Order Intake Q3 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Baader – Swiss Equities Conference – January 2019 2
Slide 3: Rieter Group – Key Messages
Rieter Group – Key Messages Order intake of CHF 750 million after nine months In the third quarter, order intake of CHF 238 million System offering and digitization focus at ITMA Shanghai Moving ahead in Q4 2018 Baader – Swiss Equities Conference – January 2019 3
Slide 4: Agenda
Agenda 1. Key Messages 2. Order Intake Q3 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Baader – Swiss Equities Conference – January 2019 4
Slide 5: Orders by Business Group ‒ Nine Months
Orders by Business Group ‒ Nine Months Slight decrease in order intake of 2% CHF million • Below prior year: Business Group Machines & Systems -2% with CHF 433.4 million order intake 12% below the first 800 765 750 nine months 2017 (-11% in local currencies) 700 • Slight decrease: Business Group Aft
Slide 6: Rieter Group – Order Intake in Q3
Rieter Group – Order Intake in Q3 Low demand from Turkey ‒ stable Components CHF million Q3 2018 Q3 Q3 Order intake (Q3 2017) 2018 vs.2017 • Increase in Asian countries1, especially in Vietnam Machines & 135.7 • Stable development in China -29.2 Systems (164.9) • Weakening of demand in India due to
Slide 7: Agenda
Agenda 1. Key Messages 2. Order Intake Q3 2018 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Baader – Swiss Equities Conference – January 2019 7
Slide 8: Outlook 2018
Outlook 2018 • As announced in July of this year, for 2018 as a whole Rieter anticipates that sales will be above the 2017 figure and EBIT (before restructuring costs) will be below the prior year level. Net profit is expected to be significantly higher than in the previous year, as no extraordinary
Slide 9: Innovation @ ITMA Asia 2018 Shanghai
Innovation @ ITMA Asia 2018 Shanghai Focus on Systems and Digitization Connect Describe Diagnose Predict Recommend Self learn Essential ‒ Rieter Digital Spinning Suite UPtime Mobile SPIDERweb App Dashboards Predictive Normative Adaptive Data Collection Datamining & Reports Analytics Analytics Contro
Slide 10: R&D Expenses
R&D Expenses Clearly committed to innovation • Accelerate on-going innovation programs at Machines & Systems and at Components 26.4 26.6 23.7 24.4 23.6 22.8 • Innovative After Sales solutions (e.g. 22.9 digitization) • Strong focus on ITMA Barcelona 2019 5.6% 4.6% 5.5% 4.8% 5.2% 4.1% 4.9% HY1 HY2 HY
Slide 11: Moving ahead in Q4 2018
Moving ahead in Q4 2018 • 30th of October: Carsten Liske appointed as Head of the Business Group Machines & Systems effective January 1, 2019 • 5th of December: Rico Randegger takes over as Head of the Business Group After Sales on June 1, 2019 • 14th of December: Rieter completes acquisition of 25
Slide 12: Financial Calendar
Financial Calendar Publication of sales 2018 January 30, 2019 Deadline for proposals regarding the agenda of the Annual General Meeting February 22, 2019 Results press conference 2019 March 13, 2019 Annual General Meeting 2019 April 4, 2019 Semi-Annual Report 2019 July 18, 2019 Baader – Swiss Equiti
Slide 13: 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 14: Appendix
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Baader – Swiss Equities Conference – January 2019 14
Slide 15: Values and Principles
Values and Principles Baader – Swiss Equities Conference – January 2019 15
Slide 16: Strategic Focus – Mid-Term Targets
Strategic Focus – Mid-Term Targets Sales Sales growth above market EBIT margin1 ~10% RONA2 ~14% Target pay-out ratio of at least Dividend policy 40% of net profits 1 At sales of ~ CHF 1.3 billion 2 RONA is calculated as net result before interest costs and write-off of financial assets divided by ne
Slide 17: Details on Strategy Implementation
Details on Strategy Implementation Rieter continues to aim for an EBIT margin of 10%, with sales of around CHF 1.3 billion and a Return On Net Assets (RONA) of 14%. Focus on strategy implementation: • Improve the market position in the machinery and systems business by accelerating the ongoing innov
Slide 18: Earnings Increase Towards 10% EBIT
Earnings Increase Towards 10% EBIT Strategy with focus on profitability improvement Projection Sales in CHF ~1030 +20 +250 ~1300 million (p.a.) • Machines & Systems break-even • Components profitability 2.6% 0.8% • Innovation & • After Sales at market position 10% 3.9% 166 mCHF sales • Market volume
Slide 19: Order Intake per Business Group
Order Intake per Business Group CHF million Jan. – Sept. Jan. – Sept. Change Change Change 2018 2017 in without local currency acquisitions Rieter 749.8 765.0 -2% -2% -9% Machines & Systems 433.4 490.1 -12% -11% -11% After Sales 111.3 115.8 -4% -4% -4% Components 205.1 159.1 29% 27% -3% Baader – Swi
Slide 20: Financial Key Figures
Financial Key Figures HY1 2018: EBIT and net profit at the level of HY1 2017 CHF million HY1 2018 HY2 2017 HY1 2017 FY 2017 Order Intake 511.8 556.3 495.2 1 051.5 Sales 515.3 550.4 415.2 965.6 EBITDA before restr. charges 34.6 59.8 34.8 94.6 EBITDA margin (of sales) 6.7% 10.9% 8.4% 9.8% EBIT before
Slide 21: Balance Sheet
Balance Sheet HY1 2018: Net cash position despite negative free cash flow Decrease in net liquidity vs. December: CHF million 30/06/ 31/12/ 30/06/ 2018 2017 2017 • Dividend of CHF 22.6 million (CHF 5.00 per share) paid out in April 2018 Total assets 1 000.1 1 048.2 1 009.0 • Free cash flow of CHF -5
Slide 22: Profitability Improvement Mid-Term: 14% RONA
Profitability Improvement Mid-Term: 14% RONA Continued reduction of net asset basis • Reduction of net working capital Net profit by half-year (before • Sale of non-core assets interest cost/CHF million) • Investments below D&A level 50 45 40 HY2 2014 13.7% 35 HY1 2015 HY2 2016 30 12.2% 10.7% 25 20