Starragtornos Group Ag · SIX:STGN
Starragtornos — Starrag Group — FY2020 Earnings Presentation
39 slides from Starragtornos's earnings presentation, Mar 5, 2021
Slide 1: Financial Year 2020: Media and Analyst Conference
Engineering precisely what you value Financial Year 2020: Media and Analyst Conference Zurich, 5 March 2021
Slide 2: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 1
Slide 3: Disclaimer
Disclaimer This presentation contains forward looking statements which reflect Starrag Group’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statemen
Slide 4: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 3
Slide 5: Order intake, sales and income decline as expected
Order intake, sales and income decline as aspected – Slightly improvement in order intake and income in the second half of the year – Internal strengthening of the Group Order intake down 44% to CHF 192 million (down 42% at constant exchange rates) Sales down 29% to CHF 297 million (down 27% at cons
Slide 6: Great progress towards strengthening the Group internally
Great progress towards strengthening in the Group internally Improving operational excellence Project management with optimised proces flows Stronger cohesion of the Group through renewed leadership team Better coordination of sales, supply chain management and production functions Group-wide integr
Slide 7: Order intake dominated by large orders depending on the year
Order intake dominated by large orders depending on the year CHF m 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 6
Slide 8: Order intake: Decline in all categories
Order intake: Decline in all categories CHF m 600 500 400 143 239 41 300 67 Large orders 200 239 237 199 6 (> 5 Mio.) 3% 178 125 Small/medium 100 orders 65% 68 69 80 77 60 Recurring 0 Service 31% 2016 2017 2018 2019 2020 Large oders (Ø 2016-2020): CHF 99 million Corona-related shift in expected
Slide 9: Order intake: Decline in all customer industries
Order intake: Decline in all customer industries CHF m 600 500 400 200 171 300 110 38 122 50 38 25 200 176 50 Aerospace 26% 194 157 132 17 Energy 9% 100 112 Industrial 58% 76 63 36 44 0 13 Transport 7% 2016 2017 2018 2019 2020 Aerospace and Industrial declined, in particular due to Covid-19. Recov
Slide 10: Order intake: Asia most affected
Order intake: Asia most affected CHF m 600 500 101 69 400 24 120 45 300 174 94 112 200 26 America 13% 272 40 Asia 21% 205 231 100 186 126 Europe 66% 0 2016 2017 2018 2019 2020 Decline in the important core region of Asia 9
Slide 11: Market trends by industry
Market trends by industry Key markets Aerospace and Industrial with long-term positive perspective Aerospace Energy Transportation Industrial 35% 8% 15% 42% Solid growth until 2019: Power plant investments Agriculture with positive Stationary machines with temporary slump concentrated on Asi
Slide 12: New manufacturing solution for complete machining of planetary gear carriers
New manufacturing solution for complete machining of planetary gear carriers Highest degree of precision, efficiency and process reliability In cooperation with a robot cell two Heckert T45 machining centres offer the highest level of process integration Automated pallet-, gripper- and toolhandling
Slide 13: New formats for online-marketing
New formats for online-marketing TecTalk: New interview series with Miriam Rickli The TecTalk is a series of interviews in which the well-known moderator Miriam Rickli guides interested viewers through current technology topics and through interviews in customer plants. These interviews are publishe
Slide 14: New formats for online-marketing
New formats for online-marketing Star Digital: The new interactive version of our customer magazine Star Networking with other articles, the web presence and the social media channels creates a lively mix that allows customers to obtain comprehensive information about content that is relevant to the
Slide 15: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 14
Slide 16: Order backlog ensures capacity utilisation
Order backlog ensures capacity utilisation CHF m 500 480 461 400 249 349 343 245 300 172 208 192 200 348 366 302 284 104 231 216 100 171 174 142 89 0 2016 2017 2018 2019 2020 Order intake H1 Order intake H2 Order backlog Order intake 2020: -44% (fx adjusted -42%) Order backlog: -39% (fx adusted
Slide 17: Sales development
Sales development Sales -29%, fx adjusted -27% CHF m 500 400 -112 Negative FX currency influence Weaker EUR/CHF translation rate 300 -9 (2020: 1.0813, 2019: 1.1247) 200 418 297 100 0 2019 Organic FX 2020 Trans- lation 16
Slide 18: Income statement: relief through savings programmes
Income statement: relief through savings programmes CHF m Revenue Expenses 450 400 350 194 46.4% Sales revenue 300 Material/inventory change 250 137 46.2% 200 418 Personnel 150 297 155 37.0% Other operating expenses/income 100 118 39.8% Depreciation 50 12.6% 10.7% 53 EBIT 32 2.9% 0 2.9% 2019 2020 20
Slide 19: EBIT bridge
EBIT bridge 4.8 1.3 9.4 2.2 3.9 3.3 37.1 Mio. CHF 7.2 2.7 66.6 11.2 6.9 6.4 9.9 Volume/Margin Reduction Overtime- Short-time Other Social Travel Commissions Warranty Freight related Others EBIT effects personnel accounts work personnel cost benefits expenses Provision EBIT 2019 2020 Cost savings:
Slide 20: Starrag does not report a positive net profit in 2020
Starrag does not report a positive net profit in 2020 CHF m 2020 2019 Change Operating result EBIT 1.3 4.8 -73% Interest expenses, net -0.3 -0.4 FX result, net -0.6 0.7 Other financial result -0.8 -1.2 Total financial result, net -1.7 -1.0 Income before taxes -0.5 3.8 -113% Income tax expenses -0.2
Slide 21: Balance sheet: Strong financial base
Balance sheet: Strong financial base CHF m Assets Liabilities 400 350 Cash 15 14 300 33 26 Receivables 250 118 143 88 116 Inventories 200 Fixed assets 150 108 108 Financial liabilities 100 175 178 Operating liabilities 50 93 89 Shareholders' equity 0 31.12.2019 31.12.2020 31.12.20192 2 Net assets 33
Slide 22: Intact free cashflow 2020
Intact free cashflow 2020 CHF m Units 30 25 Base Value Change1 20 Change2 Change3 15 7.4 -2.0 -2.3 Change4 Change5 11.0 -5.2 Change6 10 Change7 8.5 Change8 0.4 6.2 Change9 Change10 5 Change11 Change12 Change13 0 -0.6 Change14 Change15 Change16 Change17 -5 Net income Depreciation Change in long-term
Slide 23: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 22
Slide 24: Program "Starrag 2021" with medium-term horizon
Program "Starrag 2021" with medium-term horizon 2021 2020 Readiness for growth Reduced break-even New orders with Value added co-operation benchmark profitability 2019 in Group Renewed product port- folio Review and con- solidation Gain profitability Accelerate change Stable profitability Evaluate s
Slide 25: Mid-term financial targets unchanged
Mid-term financial targets unchanged Growth rate 5% p.a. Profitability 8% EBIT margin Dividend ratio 35-50% of net profit In local currencies and as average over the business cycle. 24
Slide 26: Continuation of the strategy implementation
Continuation of the strategy implementation Focus on the most attractive market/product segments and regions to better exploit the Group-wid growth and profit potential Differentiation through application competence, technology, service competence and premium market presence Better scaling of the ex
Slide 27: Economic outlook 2021
Economic outlook 2021 Still characterised by Corona Industry associations cautiously optimistic Second half of 2020 more positive than originally assumed VDMA expects production growth of around 4% for 2021 Expectations for customer industries Aerospace 2021 still restrained, recovery expected from
Slide 28: Guidance 2021
Guidance 2021 Order intake Significantly above 2020 (CHF 192 million) Sales revenue Within the framework of 2020 (CHF 297 million) EBIT Within the framework of 2020 (CHF 1.3 million) Depending on COVID-19 development in the strategic target markets. in local currencies 27
Slide 29: Summary
Summery Setbacks 2020 Incoming orders, sales and earnings below previous year due to Corona New orders and operating result slightly improved in the second half of the year - new orders expected for the first quarter of 2021 Major progress in strengthening the Group internally with total savings of
Slide 30: Corporate calendar and Contact details
Corporate calendar and Contact details 23.04.2021 Annual General Meeting 29.07.2021 Half-year report 2021 28.01.2022 Sales and orders 2021 04.03.2022 Presentation of 2021 results for analysts and media in Zurich 23.04.2022 Annual General Meeting in Rorschach Thomas Erne, CFO Phone +41 71 858 81 11 i
Slide 31: Agenda
Agenda Highlights and business review Dr. Christian Walti, CEO Financial review Thomas Erne, CFO Strategy and outlook Dr. Christian Walti, CEO Q&A 30
Slide 32: Thank you for your interest. Stay healthy!
Thank you for your interest. Stay healthy! www.starrag.com 31
Slide 33: Backup information
Engineering precisely what you value Backup information
Slide 34: Share details (as of 31 December 2020)
Share details (as of 31 December 2020) Market capitalization CHF 132 million Listed at SIX Swiss Exchange Main Standard Ticker: STGN, Valor number 236‘106, ISIN CH00023610608 3‘360‘000 registered shares, nominal value of CHF 8.50 each Free float 28% Stable shareholder structure Andere 27.5% Walter F
Slide 35: 150 years tradition in innovation
150 years tradition in innovation Key milestones for Starrag Group to become and remain a reliable long-term partner Scientific Machine Machine Machine Machine Textile Machine Machine Machine Software/ instruments tools tools tools tools machinery tools tools tools Technology company 34
Slide 36: At your service
At your service Production site Logistic center Service center 35
Slide 37: Group Management
Group Management Dr. Christian Walti, CEO Thomas Erne, CFO (1967, Swiss) (1973, Swiss and German) Since 01.06.2018: CEO and Head of Regional Sales Since 01.09.2020 CFO and Head of Corporate Center 2012 – 2018 Head of Bosch Packaging Systems, Beringen, 2015 – 2020 CFO Europe at DMG Mori Switz
Slide 38: World production machine tools 1990 - 2019
World production machine tools 1990 - 2019 EUR b 90 +3% 80 +6% -8% +8% +8% -2% +27% +4% 70 -13% 60 +31% 50 40 78 74 73 71 76 72 69 65 68 30 55 58 54 48 20 41 40 44 41 37 36 34 34 34 34 33 37 27 24 23 27 29 10 0 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19
Slide 39: World production machine tools 2017 - 2019: Top 20 countries
World production machine tools 2017 - 2019: Top 20 countries EUR b CN US DE JP IT KR MX IN TW RU FR TR CA VN CH TH ES AT PL 2017 2018 2019 GB 0 5 10 15 20 25 Top 20 consume 90% of the total EUR 71 billion machine tool market. Note: Without Parts/accessories: Source: VDW World Machine Tool Statisti