Slide 1: Financial Year 2022: Media and Analyst Conference
Engineering precisely what you value Financial Year 2022: Media and Analyst Conference Rorschacherberg, 10 March 2023
Slide 2: Agenda
Agenda 1 Business development Michael Hauser, Chairman of the BoD 3 2 Financial report Thomas Erne, CFO 21 3 Strategy and outlook Michael Hauser, Chairman of the BoD 33 4 Q&A 1
Slide 3: 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 Starrag Group. This document contains certain statements related to the future business and financial performance or fut
Slide 4: 1. Business Development
1. BUSINESS DEVELOPMENT Michael Hauser Chairman of the BoD 3
Slide 5: Further increase in order intake – Sales up 9% – Operating income significantly increased
Further increase in order intake – Sales up 9% – Operating income significantly increased Ordner intake Sales revenue EBIT EBIT Net debt (in CHF m) (in CHF m) (in CHF m) (in %) (in CHF m) 395.8 317.6 18.6 5.8 20.1 +4.5% +8.5% +318.7% +14.2% Currency adjusted +8% Currency adjusted +12% New products S
Slide 6: Order intake by order size
Order intake by order size: Small/medium orders compensate for slight decline in large orders [CHF m] 460 Large orders back in line with previous year (Ø 2018-2022 = 396 CHF 75 million) 143 379 Small/medium orders and 343 Large orders especially recurring service with 111 28% 119 (> 5 Mio.) lower vo
Slide 7: Order intake by sector: Industrial rises strongly to all-time high
Order intake by secor: Industrial rises strongly to all-time high [CHF m] 461 Industrial: strong growth in Luxury Goods segment, as well as 396 successes in medical technology 379 Energy: attractive products for the 171 342 27% energy market show first signs of 107 127 growth 38 122 47 12% 40 25 192
Slide 8: Order intake by region: Europe with biggest plus
Order intake by region: Europe with biggest plus [CHF m] Amerika (11%) Europe (72%) Asia (17%) Strong European footprint compensates for slight declines in 284 Asian and American markets 272 237 186 126 120 112 80 69 70** 62* 45 42 40 26 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2019 20
Slide 9: Bumotec 191neo
Bumotec 191neo A new edition of the top model s191 8
Slide 10: Multitasking – digital and ergonomic
Multitasking – digital and ergonomic Highly flexible: The Bumotec 191neo is not just a single machining solution, but is basically twelve different machines in one platform. This diverse range is the only way to meet the specific requirements of typical users in the fields of medical technology, mic
Slide 11: Heckert T55
Heckert T55 The new 5-axis horizontal machining center 10
Slide 12: One for all – Heckert T55
One for all – Heckert T55 Particularly suitable for multitasking complete machining of workpieces weighing up to 700 kilograms The Heckert T55 is a highly productive multifunctional talent with a very compact, robust machine design and a low-vibration rotary swivel unit specially designed for turnin
Slide 13: Perfect solutions for renewable energies
Perfect solutions for renewable energies The efficient use of renewable energy sources also requires innovative solutions in the development of new production concepts. Thanks to a clear focus on applications such as planetary carriers and large bearings, Starrag is increasingly concentrating on ena
Slide 14: Aerospace Technology Days 2022
Aerospace Technology Days 2022 Aerospace and Turbine Competence Center attracts with manufacturing expertise. 13
Slide 15: Aerospace Technology Days 2022
Aerospace Technology Days 2022 More than 200 participants from 22 countries attended the Technology Days, which took place at our location from 5 to 6 July 2022 after a 3-year interruption – due to Corona. Together with its cooperation partner ZEISS, we demonstrated how production and measurement te
Slide 16: It's Showtime
It‘s Showtime Starrag presented the latest developments at the IMTS in Chicago and AMB in Stuttgart. 15
Slide 17: Technology fairs 2022
Technology fairs 2022 Innovation IMTS Chicago: Turbin blade machining center Starrag LX 021 5-axis mill-turn center Bumotec 191neo Innovation AMB Stuttgart: 5-axis mill-turn center Bumotec 191neo 5-axis machinng center Heckert T55 16
Slide 18: Investing in the future
Investing in the future Starrag doubles its training capacity at the Rorschacherberg site. 17
Slide 19: New Starrag training center
New Starrag training center Optimal conditions for competent, motivated employees. Prevention of the shortage of skilled workers (a third of the workforce comes from our own training). The trainees have completed their training with the best grades compared with other cantons . Double the space, add
Slide 20: Change in the Board of Directors
Change in the Board of Directors Christian Androschin Bernhard Iseli has been a member of the has been a member of the Board of Directors of Starrag Board of Directors of Starrag Group Holding AG since Group Holding AG since 23.04.2022. 23.04.2022. Since 2005, he has been managing partner of Androsc
Slide 21: Changes in the Executive Board
Changes in the Executive Board Martin Buyle Rainer Hansjürgens Christian Kurtenbach will become CEO of Starrag has been Head of the has been Head of Business Group as of 01.04.2023. Business Unit Large Parts Unit High Performance Machining Systems since Systems since 01.02.2023, 01.11.2022, which co
Slide 22: 2. Financial report
2. Financial report Thomas Erne CFO 21
Slide 23: At a glance – 5-year comparison
At a glance – 5-year comparison Order Intake Order backlog Sales / EBIT [CHF m] [CHF m] [CHF m) 461 418 396 389 379 366 343 327 318 297 293 284 256 193 174 11.1 18.6 4.8 1.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 -8.5 2018 2019 2020 2021 2022 22
Slide 24: At a glance – 5-year comparison
At a glance – 5-year comparison Net debt Return on equity [CHF m] [%] 20.1 17.6 6.6 6.6 4.7 3.9 0.6 -0.3 -3.1 -5.3 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 23
Slide 25: Order backlog secures basic capacity utilisation
Order backlog secures basic capacity utilisation [CHF m] 461 Order intake 2022: +5% (currency adjusted +8%) 396 366 379 Order backlog: 343 +28% (currency adjusted +31%) 245 327 → capacity utilisation secured until 284 191 well into 2024 172 229 256 193 174 104 216 205 171 150 89 2018 2019 2020 2021
Slide 26: Development of sales despite currency effects +8.5%
Development of sales despite currency effects +8.5% Sales +8.5%, currency adjusted +12.2% [CHF m] Material effect from currency fluctuations 36 EUR/CHF exchange rate 318 293 (2022: 1.0162, 2021: 1.0935) -11 2021 organic FX translation 2022 25
Slide 27: Income statement: Relief through savings programmes
Income statement: Relief through savings programmes [CHF m] Revenue Expenses Significantly increased sales and operating profit towards target 13 margin of 8%. Restructuring 139 120 43.6% Sales revenue Material/inventory change 318 293 Personnel 121 Other operating 118 38.1% expenses/income Deprecat
Slide 28: EBIT bridge
EBIT bridge [CHF m] 10.6 0.6 18.6 Significantly increased EBIT in 2022. Restructuring at the Mönchengladbach site was 14.2 completed -2.5 13.0 -8.5 -8.8 EBIT Canellation Other Product Other Personnel Deprecation EBIT 2021 impact operating margin Mix operating expenses 2022 incoma expenses 27
Slide 29: Financial result
Financial result CHF m 2022 2021 Operating result EBIT 18.6 -8.5 Interest expenses, net -0.3 -0.5 Other financial result -0.2 1.3 Total financial result, net -0.5 -0.9 Income before taxes 18.1 -8.6 Income tax expenses -7.0 3.2 Net income 11.1 -5.4 Earnings per share in CHF 3.31 -1.61 28
Slide 30: Balance sheet: Strong financial basis
Balance sheet: Strong financial basis [CHF m] Assets Liabilities Solid equity ratio of 52%; positive net liquidity of CHF 20 million 21 1 Increase in balance sheet total Cash 30 12 due to higher inventories Receivables 111 161 Inventories 94 120 Fixed assets Financial liabilities 92 122 Operating li
Slide 31: Intact free cash flow 2022
Intact free cash flow 2022 [CHF m] FY 2021 Solid cash flow despite increase in -5.4 8.3 18.5 -5.7 0.7 16.4 -6.2 0.7 11.0 working capital 7.7 Slightly increase in investment activity, asset sales due to restructuring at the Mönchengladbach site 1.9 12.3 11.1 -0.7 -7.7 1.1 6.4 -7.0 Net Depre- Change i
Slide 32: Share performance
Share performance CHF 80 ISIN: CH0002361068 Symbol: STGN 70 60 50 40 30 20 2018 2019 2020 2021 2022 31
Slide 33: 3. Outlook and strategy
3. Outlook and strategy Michael Hauser Chairman of the BoD 32
Slide 34: Market trends by industry
Market trends by industry Key markets Aerospace and Industrial with sustainable perspective Aerospace 29% Energy 11% Transportation 11% Industrial 49% Further orders and strong trend Sustained investment in wind Agricultural machinery, like Good demand from mechanical towards single-aisle aircraft f
Slide 35: Guidance 2023
Guidance 2023 Order intake Sales revenue EBIT > 2022 > 2022 > 2022 Prerequisites: Financial year 2023 will not be affected by another pandemic or by any geopolitical aggravations.. 34
Slide 36: Continuation of the strategy implementation
Continuation of the strategy implementation Focus Differentiation Portfolio Excellence on the most attractive Differentiation through Better scaling of the Increased focus on market/product segments application competence, existing product portfolio operational excellence and regions in order to tec
Slide 37: Starrag adheres to medium-term financial targets
Starrag adheres to medium-term financial targets Sales revenue * Profitability * Dividend ratio plus 5% p.a. 8% EBIT margin 35-50% of net profit Note for sharehodlers: Low price-to-book ratio Low price-earnings ratio Low property valuation Solid balance sheet Dividend paying capacity * In local curr
Slide 38: Corporate calender and contact details
Corporate calender and contact details 21.04.2023 Annual General Meeting 27.07.2023 Half-year report 2023 26.01.2024 Sales and orders 2024 08.03.2024 Presentation of 2023 results for analysts and media 20.04.2024 Annual General Meeting Thomas Erne, CFO investor@starrag.com www.starrag.com 37
Slide 39: 4. Q & A
4. Q & A Please ask your questions. 38
Slide 40: Thank you for your interest.
Thank you for your interest. Stay healthy! www.starrag.com 39