Georg Fischer Ag · SIX:GF
Georg Fischer — FY2017 Earnings Presentation
29 slides from Georg Fischer's earnings presentation, Feb 28, 2018
Slide 1: Annual Media Conference 2017 financial year
Annual Media Conference 2017 financial year Yves Serra 28.02.2018
Slide 2: Growth well above target
GF Corporation Growth well above target Sales up 11% at CHF 4’150 million Operating result increased 13% to CHF 352 million (CHF 311 million in 2016) Earnings per share reach CHF 62 (CHF 53 in 2016) Free cash flow (before acquisitions/divestments) at CHF 204 million Proposed dividend incre
Slide 3: All three divisions grew sales significantly
GF Corporation All three divisions grew sales significantly 2016 2017 Strategy Objectives (Sales growth in %) in % 12.3 10.8 11.0 8.3 3 ~ 5% 5.4 2.9 1.1 1.6 GF GF Piping Systems GF Automotive GF Machining Solutions 3 Annual Media Conference | 2017 financial year
Slide 4: GF Piping Systems and GF Machining Solutions drive profitability increase
GF Corporation GF Piping Systems and GF Machining Solutions drive profitability increase Strategy 2016 2017 Objectives (EBIT margin in %) in % 10 ~ 12% 8 ~ 9% 6 ~ 8% 6 ~ 8% 10.8 11.3 8.3 8.5 8.3 7.5 6.8 6.3 GF GF Piping Systems GF Automotive GF Machining Solutions 4 Annual Media Conference | 2017 fi
Slide 5: All three divisions again generate substantial value
GF Corporation All three divisions again generate substantial value 2016 2017 ROIC Objectives (ROIC in %) in % 18 ~ 22% 22.9 23.1 24.1 19.3 20.3 20.6 19.5 18.3 WACC 7.5% GF GF Piping Systems GF Automotive GF Machining Solutions 5 Annual Media Conference | 2017 financial year
Slide 6: GF Piping Systems: High profitable growth across the board
GF Piping Systems High profitable growth across the board Substantial sales increase of 12% to CHF 1’678 million Image Industrial application Sustained demand for industrial applications Gas utilities sales strongly up in China/USA EBIT up 17% to CHF 189 million Large orders for semiconducto
Slide 7: Urecon acquisition as springboard for cooling in North America
GF Piping Systems Urecon acquisition as springboard for cooling in North America Freeze control pipes Quebec, Canada 7 Annual Media Conference | 2017 financial year
Slide 8: GF Automotive: High growth, but input costs affect profitability
GF Automotive High growth, but input costs affect profitability Sales up 11% to CHF 1’482 million Organic growth up ca. 6% (metal adjusted) High metal prices/ramp-up costs impacted profitabilty EBIT stood at CHF 93 million (7% below 2016) Cross car beam Large orders for magnesium based compo
Slide 9: High tempo expansion in light metal castings
GF Automotive High tempo expansion in light metal castings Picture not approved. Acquisition in Romania as base High order book at new US plant New mold production for Eastern Europe GF Linamar center in China 9 Annual Media Conference | 2017 financial year
Slide 10: Good positioning in growing markets supports profitable growth
GF Machining Solutions Good positioning in growing markets supports profitable growth Order intake up 12% to CHF 1‘030 million Sales grew 8% to CHF 992 million High growth in aerospace (Europe/USA) and ICT (Asia) sectors Automation offering enjoys strong demand EBIT up 32% to CHF 82 millio
Slide 11: Division speeds up its digitalization drive
GF Machining Solutions Division speeds up its digitalization drive Bielefeld (Germany), connectivity software specialist, acquired 9/2017 11 Annual Media Conference | 2017 financial year
Slide 12: Consolidated financial statements
Andreas Müller, CFO Consolidated financial statements 12 Annual Media Conference | 2017 financial year
Slide 13: Strong growth at all three divisions
GF Corporation Strong growth at all three divisions CHF million organic 2017 2016 growth 1) growth GF Piping Systems 1’678 1’494 12.3 % 12.1 % GF Automotive 1’482 1’335 11.0 % 8.9 % GF Machining Solutions 992 916 8.3 % 7.4 % Corporation 4’150 3’744 10.8 % 9.8 % Sales 1st Semester 1’992 1’863 6.9 % 8
Slide 14: Strong growth at all three divisions
GF Corporation Strong growth at all three divisions CHF million organic 2017 2016 growth 1) growth GF Piping Systems 1’678 1’494 12.3 % 12.1 % GF Automotive 1’482 1’335 11.0 % 8.9 % GF Machining Solutions 992 916 8.3 % 7.4 % Corporation 4’150 3’744 10.8 % 9.8 % GF Automotive adjusted for metal price
Slide 15: EBIT and margins increased anew
GF Corporation EBIT and margins increased anew CHF million EBIT margin % 2017 2016 2017 2016 GF Piping Systems 189 162 11.3 % 10.8 % GF Automotive 93 100 6.3 % 7.5 % GF Machining Solutions 82 62 8.3 % 6.8 % Corporation 352 311 8.5 % 8.3 % EBIT 1st Semester 168 153 8.4 % 8.2 % EBIT 2nd Semester 184 1
Slide 16: Currency impact on Sales/EBIT
GF Corporation Currency impact on Sales/EBIT CHF million 2017 Sales EBIT EUR 42 4 USD 3 -8 CNY -13 -2 TRY -27 -4 Others 2 -1 Total currency impact 7 -11 16 Annual Media Conference | 2017 financial year
Slide 17: Currency impact by division
GF Corporation Currency impact by division CHF million 2017 Sales EBIT GF Piping Systems -19 -10 GF Automotive 21 0 GF Machining Solutions 5 -1 Total currency impact Corporation 7 -11 17 Annual Media Conference | 2017 financial year
Slide 18: Income statement
GF Corporation Income statement CHF million 2017 2016 Sales 4’150 3’744 11 % Gross value added 1’539 1’421 8% Personnel expenses -1’048 -978 7% EBITDA 491 443 11 % Depreciation, amortization -139 -132 5% EBIT 352 311 13 % Financial result -31 -31 - Ordinary result 321 280 15 % Non-operating result
Slide 19: Cash flow hits the CHF 200 million mark
GF Corporation Cash flow hits the CHF 200 million mark CHF million 2017 2016 EBITDA 491 443 Changes in net working capital -30 -30 Income taxes/interest paid -82 -72 Other changes 31 59 Cash flow from operating activities 410 400 Additions to property, plant, and equipment -207 -174 Cash flow from a
Slide 20: Capex CHF 207 million, Acquisitions CHF 74 million
GF Corporation Capex CHF 207 million Acquisitions CHF 74 million GF Linamar, Mills River, USA Urecon, Quebec, Canada Eucasting, Pitesti, Romania Innovation and production center, Symmedia, Bielefeld, Germany Biel, Switzerland 20 Annual Media Conference | 2017 financial year
Slide 21: Key figures at a glance
GF Corporation Key figures at a glance 2017 2016 Net debt in CHF 183 214 Net debt / EBITDA (multiple) 0.4x 0.5x ROIC in % 20.3 19.3 Return on Equity in % 20.1 19.3 Earnings per share in CHF 62 53 Dividend (proposed) per share in CHF 23 20 Number of employees (incl. trainees) 15’835 14’808 21 Annual
Slide 22: Our new "Analyzer" allows quick insights
GF Corporation Our new “Analyzer” allows quick insights 22 Annual Media Conference | 2017 financial year
Slide 23: Outlook 2018
Outlook 2018 23 Annual Media Conference | 2017 financial year
Slide 24: Outlook 2018
GF Corporation Outlook 2018 Strong momentum at GF Piping Systems Acquisitions/new capacities to support GF Automotive growth (re-named as GF Casting Solutions) High backlog at GF Machining Solutions Further performance increase expected in line with our 2020 strategic goals ROIC 18-22% ROS 8-9
Slide 25: Connected products ready for the market
GF Corporation Connected products ready for the market Smart Valves Servicing machines with rConnect 25 Annual Media Conference | 2017 financial year
Slide 26: GF Automotive becomes GF Casting Solutions
GF Corporation GF Automotive becomes GF Casting Solutions Precicast (Switzerland), investment casting specialist, acquired 1/2018 26 Annual Media Conference | 2017 financial year
Slide 27: Fostering innovation worldwide
GF Corporation Fostering innovation worldwide New offices Design Thinking Schaffhausen New facility Biel 27 Annual Media Conference | 2017 financial year
Slide 28: Thank you
Thank you 28 Annual Media Conference | 2017 financial year
Slide 29: Disclaimer
Disclaimer This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment. Neither it nor anything it contains shall form the basis of any contract whatsoever. Opinions expressed herein reflect the