Metall Zug Ag Class B · SIX:METN
Metall Zug Ag Class B — H1 2017 Earnings Presentation
42 slides from Metall Zug Ag Class B's earnings presentation, Aug 21, 2017
Slide 1: Investor Presentation HY 1/17
Investor Presentation HY 1/17 Metall Zug Group, August 21, 2017
Slide 2: Content
Metall Zug Group Content 1. Metall Zug Group - overview HY 1/17 2. Business Units Household Appliances Infection Control Wire Processing 3. Group financial report HY 1/17 4. Investments in sustainable future growth 5. Information for investors 2
Slide 3: Metall Zug Group Overview HY 1/17
Metall Zug Group Overview HY 1/17
Slide 4: Highlights HY 1/17
Metall Zug Group Highlights HY 1/17 Organic sales growth in local currencies of +0.3%, group gross sales of CHF 445.4 million Operating income (EBIT) decreased to CHF 28.2 million (-10.8%), resulting in an EBIT margin of 6.3% (previous year: 7.2%), based on gross sales Main topics: – Household
Slide 5: Net sales to third parties in HY 1/17
Metall Zug Group Net sales to third parties in HY 1/17 (HY 1/16 values in brackets) 5
Slide 6: Business Units
METALL ZUG Business Units
Slide 7: Household Appliances
Household Appliances HY 1/17: Net sales MCHF 269.4; EBIT MCHF 26.5 Anton Schmaus, Germany’s “Rising Star of 2015”, Restaurant Storstad in Regensburg, Germany
Slide 8: Household Appliances: Net sales by product segment and region
Household Appliances Net sales by product segment and region HY 1/17 (HY 1/16 values in brackets) 8
Slide 9: Household Appliances: Key figures and highlights
Household Appliances Key figures and highlights CHF million HY 1/17 HY 1/16 ∆ 2016 Net sales to third parties 269.4 279.3 -3.5% 584.6 Operating income (EBIT) 26.5 32.9 -19.4% 76.8 EBIT margin in % 9.8 11.8 -200bp 13.1 3.7% decline in organic gross sales (acquisition effect: 0.0%; FX: 0.0%) Decre
Slide 10: Household Appliances: International markets
Household Appliances International markets CHF million HY HY FY FY FY FY 1/17 1/16 2016 2015 2014 2013 Net sales to third parties 11.7 17.0 46.7 36.0 35.1 24.6 in % of total BU net sales 4.3% 6.1% 8.0% 6.3% 6.1% 4.4% Strong development in markets with own built-up structures, e.g. Australia, Benel
Slide 11: V-ZUG Kühltechnik (production of refrigerators)
Household Appliances V-ZUG Kühltechnik (production of refrigerators) 2013 Today Future • Founding of V-ZUG • Restructured company • New plant Kühltechnik (takeover • Investments of high • Investments of mid from AFG) single-digit CHF million double-digit CHF million • In Arbon (limited lease • In Ar
Slide 12: Household Appliances: Strategic priorities
Household Appliances Strategic priorities Strengthen the market leadership of V-ZUG in Switzerland and its premium brand worldwide as a leader in innovation, technology and quality with Swiss-made products Expand and strengthen the international business in the premium segment in selected countr
Slide 13: Infection Control
Infection Control HY 1/17: Net sales MCHF 85.6; EBIT MCHF –10.1 Anna Macko, sterile processing technician in the decontamination area, Florida Hospital in Orlando (U.S.)
Slide 14: Infection Control: Net sales by segment and region
Infection Control Net sales by segment and region HY 1/17 (HY 1/16 values in brackets) 14
Slide 15: Infection Control: Key figures and highlights
Infection Control Key figures and highlights CHF million HY 1/17 HY 1/16 ∆ 2016 Net sales to third parties 85.6 81.3 5.3% 201.4 Operating income (EBIT) -10.1 -13.0 22.5% -6.3* EBIT margin in % -11.8 -16.0 420bp -3.1 * incl. profit of MCHF 5.1 from the sale of the property in Ballwil in HY 2/16 Org
Slide 16: Acquisition of STERIFAST
Infection Control Acquisition of STERIFAST About STERIFAST Founded in 1998, three permanent employees A Portuguese company, specializing in low-temperature sterilization for thermo-sensitive medical devices Business case With the increase in minimally invasive surgical procedures, there is a g
Slide 17: Infection Control: Restructuring
Infection Control Restructuring So far, concentrated restructuring efforts on the two largest segments Medical and Service Concluded relocation of production to Grosuplje, Slovenia (Medical) Rollout of SAP in Grosuplje (Medical) and at the production site in Mühldorf (Life Science) to increase
Slide 18: Infection Control: Strategic priorities
Infection Control Strategic priorities Consolidate and complete restructuring of Medical and Service segments in order to benefit from reduced complexity of the business structure and processes, as well as reducing costs Optimize processes and structures and explore full potential of the Life Sc
Slide 19: Wire Processing
Wire Processing HY 1/17: Net sales MCHF 81.9; EBIT MCHF 11.1 Marika Schumann, Head of Marketing and sports car enthusiast in Stuttgart (Germany)
Slide 20: Wire Processing: Net sales by segment and region
Wire Processing Net sales by segment and region HY 1/17 (HY 1/16 values in brackets) 20
Slide 21: Wire Processing: Key figures and highlights
Wire Processing Key figures and highlights CHF million HY 1/17 HY 1/16 ∆ 2016 Net sales to third parties 81.9 71.7 14.2% 153.5 Operating income (EBIT) 11.1 11.9 -6.9% 22.8 EBIT margin in % 13.5 16.6 -310bp 14.9 Organic gross sales growth of +9.4% (acquisition: +4.4%; FX: -0.3%) Growth in China,
Slide 22: Acquisition of DiIT AG
Wire Processing Acquisition of DiIT AG Schleuniger increased its stake in DiIT AG from 35% to 100%. DiIT has been fully consolidated since the beginning of 2017 A globally leading producer of software systems for wire processing and wire harness production; major manufacturers and Tier-1 supplie
Slide 23: Integrated process chain for wire harness engineering and production
Wire Processing Integrated process chain for wire harness engineering and production Production Assembly and Manufacturing execution engineering Logistics Process Preassembly / Final assembly / Engineering Cutting area Kitting Shipment DiIT 4Wire – PPG 4Wire – CAO 4Wire – PLS software (Production Pl
Slide 24: Wire Processing: Strategic priorities
Wire Processing Strategic priorities Expand product range for the automotive industry and in the automotive value chain, including IT-enabled system approach Strengthen leading position in customer-specific systems Broaden the customer base and geographic reach within the field of global autom
Slide 25: Group Financial Report HY 1/17
Group Financial Report HY 1/17
Slide 26: Key figures HY 1/17
Group financial report Key figures HY 1/17 CHF million HY 1/17 HY 1/16 ∆ 2016 Gross sales 445.4 441.4 0.9% 960.6 Operating income (EBIT) 28.2 31.6 -10.8% 94.1 EBIT margin 6.3% 7.2% -90bp 9.8% Financial result 14.4 0.6 10.3 Net income 33.8 23.9 41.4% 84.9 Equity ratio 77.8% 76.9% 90bp 76.9% Organic
Slide 27: Income statement
Group financial report Income statement CHF million HY 1/17 in % ∆ HY 1/16 in % Gross sales 445.4 100.0% 0.9% 441.4 100.0% Net sales 436.9 98.1% 1.1% 432.3 97.9% Cost of materials (incl. ∆ inv.) -139.2 31.3% -2.1% -136.3 30.9% Personnel expenses -191.1 42.9% -3.0% -185.6 42.1% Other operating expens
Slide 28: Gross sales analysis
Group financial report Gross sales analysis ORGANIC GROWTH EXTERNAL REPORTED BU organic growth in % of BUs’ gross sales 28
Slide 29: Operating income (EBIT) analysis
Group financial report Operating income (EBIT) analysis OPERATIONAL AT BU LEVEL CORPORATE REPORTED 29
Slide 30: Metall Zug Group seasonality
Group financial report Metall Zug Group seasonality * HY 1/16 as % of FY excl. MCHF 5.1 profit from the sale of the property in Ballwil • Stable seasonality in terms of net sales • Higher seasonality at EBIT level last year * EBIT margins of HY 2/16 and FY 16 excl. MCHF 5.1 profit from the sale of t
Slide 31: Balance sheet
Metall Zug Group Balance sheet CHF million 06/30/2017 in % 12/31/2016 Cash and cash equivalents / securities 504.9 44.6% 543.5 Other current assets 300.0 26.5% 284.2 Current assets 804.9 71.1% 827.7 Tangible assets 276.1 24.4% 274.0 Financial & intangible assets 51.4 4.5% 50.9 Fixed assets 327.5 28.
Slide 32: Cash flow statement
Metall Zug Group Cash flow statement CHF million HY 1/17 HY 1/16 ∆% 2016 Cash flow from operating activities -0.4 2.6 95.4 - of which change in net working capital -23.8 -19.6 11.2 - of which taxes paid -14.0 -18.8 -27.6 Cash flow from investing activities -24.6 -16.2 -51.8% -50.6 - of which investm
Slide 33: Investments in sustainable future growth
Investments in sustainable future growth
Slide 34: R&D: Important success factor
R&D Important success factor CHF million 2016 2015 2014 2013 Expenses in R&D 81.2 80.1 72.9 71.7 in % of gross sales 8.5% 8.6% 7.9% 7.9% R&D expenses including personnel costs, cost of material, overhead costs and external services, charged directly to the income statement Ongoing product innova
Slide 35: CAPEX: Investments versus operating cash flow
CAPEX Investments versus operating cash flow CHF million HY HY FY FY FY FY 1/17 1/16 2016 2015 2014 2013 CF from operating activities -0.4 2.6 95.41 104.6 135.82 162.32 - of which change in securities -4.4 -4.5 -1.2 0.3 17.72 71.72 CF from investing activities -24.6 -16.2 -50.6 -50.5 -35.5 -42.2 - i
Slide 36: Transformation of the V-ZUG site in Zug
Transformation of the V-ZUG site in Zug Modernization of V-ZUG production: Zephyr being the next step V-ZUG vertical production Zephyr (new production plant) ZUGgate Mistral Zephyr Further concentration and automatization of production processes enables V-ZUG to grow and is needed in order t
Slide 37: Core themes for the Technology Cluster Zug
Transformation of the V-ZUG site in Zug Core themes for the Technology Cluster Zug Urban industries Building technology Anchor themes Smart city Center of excellence kitchen Cleantech Foodtech Mega themes Rapid prototyping CO2-mitigation Simulation technology Medtech Sensor technology Center of exce
Slide 38: Information for Investors
Information for Investors
Slide 39: Investment case
Investment case Preparing for an insecure future All three Business Units have to cope with short visibility and limited predictability with regards to their market environment and therefore have to become highly flexible All Business Units are well positioned in attractive markets with growth p
Slide 40: Financial calendar
Metall Zug Group Financial calendar March 22, 2018 Publication of the full-year results 2017 May 4, 2018 General Meeting of Shareholders August 20, 2018 Publication of the half-year results 2018 40
Slide 41: Contact
Metall Zug Group Contact Daniel Keist Chief Financial Officer Christian Arnold Head of Corporate Communications & Investor Relations Metall Zug AG Industriestrasse 66 CH-6301 Zug Switzerland Phone: +41 58 768 10 20 41
Slide 42: Disclaimer
Metall Zug Group Disclaimer Metall Zug AG 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 disclaim any