Feintool International Holding Ag · SIX:FTON
Feintool International — FY2021 Earnings Presentation
44 slides from Feintool International's earnings presentation, March 2022
Slide 1: Feintool Group Roadshow presentation – FY21 results
Feintool Group Roadshow presentation – FY21 results
Slide 2: Today's presenters
TODAY’S PRESENTERS Knut Zimmer Samuel Künzli Chief Executive Officer Chief Financial Officer 1
Slide 3: Market environment and review
Market environment and review
Slide 4: Market environment: semiconductor shortages and high steel prices
MARKET ENVIRONMENT 2021 dominated by semiconductor shortages and high steel prices Demand recovery in first HY1 2021 Semiconductor shortages slowed down recovery in HY2 2021 Demand for cars could no longer be fully met. Inventories stood at historically low level High steel prices in 2021 ha
Slide 5: Market environment by region
MARKET ENVIRONMENT BY REGION Different loads due to corona and semiconductor shortage At level of corona year 2020 Strong start in first HY 2021 Better through the semiconductor Better first HY 2021 than previous First HY 2021 off to a very good start in US crisis year, but remained roughly 20%
Slide 6: Global car production
GLOBAL CAR PRODUCTION Good market outlook – transformation accelerating Number of vehicles produced up to 3.5 t total weight, worldwide Car production growing +2.9% steadily with a trend towards 100 87 88 90 93 94 95 98 2021: electric mobility 80 9% 12% 14% 17% 20% 80 5% 7% 30% 76 million Focus
Slide 7: Relevant trends: electromobility
RELEVANT TRENDS Electromobility remains the dominant trend Autonomous driving/digital. E-mobility Mobility concepts Technological developments & comfort Incentive programs spur the trend additionally Covid curbs expansion of mobility concepts. requirements drive the trend CO2 regulations tig
Slide 8: Review: financial year dominated by challenges
REVIEW Financial year dominated by numerous challenges Slump in demand due to coronavirus pandemic followed by rapid revival Recovery stalled in the middle of the year due to supply shortages and price increases Despite these extremely challenging conditions, significant growth achieved in all
Slide 9: Feintool in transformation
FEINTOOL IN TRANSFORMATION Important steps taken toward a successful electric-powered future Feintool Roadshow FY21 results, March 2022 8 Not for release, publication or distribution in the United States, Canada, Australia, or Japan or any other jurisdiction into which the same would be unlawful and
Slide 10: System Parts segment: prepared for mobility of tomorrow
PREPARED FOR THE MOBILITY OF TOMORROW System Parts segment: successful thanks to maximum flexibility Key fineblanking and forming nominations received (e.g. battery electric powertrain) Feintool drives ahead with expansion of plants for stamped engine core components in Germany and China In Sw
Slide 11: Fineblanking Technology segment: progress with innovations
PREPARED FOR THE MOBILITY OF TOMORROW Fineblanking Technology segment: progress with innovations FB one press sales get a boost thanks to companies’ energy management targets Progress made on research and development projects “Wear Protection Project” with WZL/RWTH Aachen “Thermal Fineblanki
Slide 12: Sustainability: goals defined
SUSTAINABILITY Contribution to sustainable development: goals defined Environment Environment Environment Innovation HR HR Reduction of CO2 Determination of ISO 14001 By 2030, we want Successfully ISO 45001 emissions (Scope 1 Scope 3 emissions (environmental to increase our implement global (occupat
Slide 13: Financial results
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Slide 14: Preliminary note: three one-off effects
PRELIMINARY NOTE Three one-off effects recognized in the 2021 financial year Feintool received a loan of USD 8.4 million in the USA in 2020 under the PPP*. In the first half of 2021, the government assured Feintool that this loan would not have to be repaid. This resulted in other operating income
Slide 15: Net sales
NET SALES Strong sales growth due to volume and price increases in m CHF Sales in 2021 of CHF 588.1 million, +19.6% in local currency 700 600 (lc) 500 400 Parts business: CHF 559.8 million; +20.6% (lc) 300 200 Capital goods business: CHF 37.7 million; -14.5% (lc) 100 0 Half of the growth was
Slide 16: EBITDA
EBITDA EBITDA margin increased significantly in m CHF EBITDA of CHF 85.6 million generated in 2021 (14.5% EBITDA 100 80 10.7% 10.8% 14.5% 15% margin) 60 10% 40 Parts business: CHF 95.3 million 20 5% Capital goods business suffers CHF 2.5 million loss 0 2019 2020 2021 0% In addition to volume
Slide 17: EBIT
EBIT Feintool achieved an operating EBIT margin of 5.9% in m CHF EBIT 2021 increased to CHF 34.4 million 40 5.9% 10% 8% 30 EBIT margin increased by 5.3 percentage points to 5.9% 20 3.0% 6% 4% Research and development expenditures remain unchanged at 10 0.6% 2% CHF 4.5 million 0 0% 2019 2020 20
Slide 18: Strong balance sheet
STRONG BALANCE SHEET High equity ratio of 49.4% and significantly reduced net debt thanks to strong FCF In m CHF 340 0,1 338,4 Shareholder’s equity increased 330 18,4 to CHF 338.4 million 320 Net income and the revaluation 6,8 of pension obligations had a 310 19,2 strong positive effect 300 293,
Slide 19: Cash flow
CASH FLOW Very strong free cash flow (FCF) of CHF 38.3 million Higher steel prices resulted in in m CHF 88,3 increased net working capital 90 80 12,5 Operating business was able 70 to fully cover capital 60 37,4 expenditures 50 38,3 Cash and cash equivalents 40 30 and available confirmed lines
Slide 20: Deeper insight on Acquisition of Kienle + Spiess
Deeper insight on Acquisition of Kienle + Spiess These written materials or the information contained therein is not being issued and may not be distributed in the United States of America, Canada, Australia, Japan or any other jurisdiction in which the distribution or release would be unlawful or r
Slide 21: Kienle + Spiess is a highly strategic acquisition
KIENLE + SPIESS (“K+S”) IS A HIGHLY STRATEGIC ACQUISITION K+S represents a step-change in repositioning Feintool towards e-powertrain applications for automotive and industrial end-markets 1 3 2 “New” Industrial Other Other 10% 4% 1% Automotive - BEV⁶ & powertrain agnostic applications Industrial Au
Slide 22: Kienle + Spiess specializes in rotors and stators
KIENLE + SPIESS SPECIALIZES IN ROTORS AND STATORS FOR ELECTRIC VEHICLES AND INDUSTRIAL APPLICATIONS K+S is a market leader in its niches based on strong technological expertise End-markets Product examples Applications Main selling propositions ASM1 PMSM2 radial flux Traction motors Hybrid motor
Slide 23: Transaction rationale
COMPELLING COMBINATION TO DELIVER LONG-TERM VALUE FOR FEINTOOL SHAREHOLDERS Transaction rationale Enhanced future growth and profitability potential Resolute move towards sustainable end-markets Significant cross-selling opportunities and Accelerates transition towards e-powertrain portfolio and cos
Slide 24: Kienle + Spiess profitability trajectory
KIENLE + SPIESS WELL ON TRACK ON POSITIVE PROFITABILITY TRAJECTORY Historical profitability of K+S reflects transition from industrial player to high-quality e-automotive supplier Revenue (€m) Historical revenue and profitability profile reflects transformation of K+S Growth (%) (2%) (15%) ~35% fr
Slide 25: Enhanced financial profile: synergies
ENHANCED FINANCIAL PROFILE Significant revenue potential improving Feintool’s overall profile Synergy areas Description Currently K+S operates exclusively in Europe, but production capacity and salesforce of Feintool in the US and APAC can be Revenue leveraged to start selling K+S products in thes
Slide 26: Update on envisaged CHF 200m equity raising
UPDATE ON ENVISAGED CHF 200M EQUITY RAISING CHF 200m equity raising is expected to put Feintool on strong financial footing as basis for future growth CHF 200m equity raising via discounted rights issue planned for Q2 2022 Main shareholder Artemis has committed to fully exercise its subscription
Slide 27: Outlook
Outlook
Slide 28: Exploiting our technology potential
EXPLOITING OUR TECHNOLOGY POTENTIAL Growing with the market by offering the right products and technologies Exploit transformation potential for Feintool Secure additional components in e-vehicles: Electric motors, batteries, fuel cells Develop metallic bipolar plates for fuel cells to marke
Slide 29: Outlook: operational measures
OUTLOOK Operational measures Market position Innovations Organization/efficiency Expand Feintool’s market SOP FB one for metallic Cash flow optimization and position with Kienle + Spiess bipolar plates investment limits where Expand presence with main Fineblanking appropriate drives for EV
Slide 30: Guidance
GUIDANCE Significant increase in sales with slightly lower profitability compared to previous year Feintool expects the recovery to continue in the 2022 financial year. At the same time, however, uncertainties in the global supply chains will continue to persist. The semiconductor shortages relevant
Slide 31: Thank you for your attention
Feintool Group Thank you for your attention
Slide 32: Appendix
Appendix
Slide 33: System Parts: solid sales performance in all regions
SYSTEM PARTS Solid sales performance in all regions in m CHF Sales in 2021 of CHF 559.8 million; +20.6% (lc) 700 600 Europe: CHF 312.2 million; +13.6% (lc) 500 400 USA: CHF 170.1 million; +35.4% (lc) 300 200 Asia: CHF 77.7 million; +15.6% (lc) 100 0 2019 2020 2021 Sales HY2 2021 of CHF 274
Slide 34: System Parts: parts business highly profitable
SYSTEM PARTS Parts business highly profitable in m CHF EBIT increased to CHF 46.2 million (PY: CHF 16.7 million) 50 40 8.3% 12.0% 10.0% EBIT margin increased by 4.7 percentage points to 8.3% 30 20 4.0% 3.6% 8.0% 6.0% 4.0% Higher volumes led to better capacity utilization and increased 10 2.0%
Slide 35: Fineblanking Technology: sales declined
FINEBLANKING TECHNOLOGY Sales declined to CHF 37.7 million in m CHF In addition to press and tool sales only picking up very slowly, 80 travel restrictions had a particularly negative impact on the 60 Net sales service business 40 intercompany Net sales third Increase in orders received: CHF 42.
Slide 36: Group result
GROUP RESULT Clearly positive net income of CHF 19.2 million (3.3% of sales) in m CHF Negative one-off effects of 34,4 CHF 0.5 million 35 0,5 4,6 Financial result improved by 30 CHF 0.7 million to CHF 4.6 25 10,1 million 20 19,2 Tax expense of CHF 10.1 15 million A dividend of CHF 1 per shar
Slide 37: Balance sheet: total assets
BALANCE SHEET Total assets of CHF 684.4 million slightly higher than in previous year Assets 31.12.2021 31.12.2020 Difference Current assets increased by in m CHF in m CHF in m CHF 9.1% to CHF 253.1million Cash and cash equivalents 51.8 61.3 -9.5 due to higher steel prices Trade and other receivab
Slide 38: Balance sheet: net debt significantly reduced
BALANCE SHEET Net debt significantly reduced thanks to the strong free cash flow Liabilities 31.12.2021 31.12.2020 Difference Shareholder’s equity: CHF in m CHF in m CHF in m CHF 338.4 million or 49.4% Financial liabilities 172.5 208.2 -35.7 Other liabilities 173.5 175.0 -1.4 Net debt decreases
Slide 39: Clear path to integration of Kienle + Spiess
CLEAR PATH TO INTEGRATION OF KIENLE + SPIESS INTO FEINTOOL GROUP Integration expected to be completed within 12 months Organisational structure Feintool K+S will become a business unit within Europe E-lamination Segment System Parts Segment The integration will be supported by an Technology inte
Slide 40: Strategy
STRATEGY Application-agnostic with fineblanking, forming, and electrolamination stamping Expand the limits of fineblanking, forming, and electrolamination stamping technologies for the mobile solutions of tomorrow as a company driving innovation in these fields Maintain strong, long-term, and re
Slide 41: Outlook: sales increase in 2022 with semiconductor risks
OUTLOOK Sales increase in 2022 with risks due to semiconductor shortage Availability of semiconductors will improve starting in HY2 2022 Return to 2018 level (95 million vehicles) in 2024/2025 Catch-up effects from market demand and low vehicle inventories China remains largest sales market
Slide 42: Agenda: upcoming events
AGENDA Upcoming events April 28, 2022 Annual General Meeting April 28, 2022 Publication of the Sustainability Report August 28, 2022 Half-yearly report Feintool Roadshow FY21 results, March 2022 41 Not for release, publication or distribution in the United States, Canada, Australia, or Japan or any
Slide 43: Disclaimer
DISCLAIMER Feintool confirms its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for the us
Slide 44: Disclaimer
DISCLAIMER This publication does not constitute an offer to sell or a solicitation to buy securities of the Company and it does not constitute a prospectus or a similar notice within the meaning of articles 35 et seqq. or 69 of the Swiss Financial Services Act. The offer and listing will be made sol
Feintool International Holding — FY2021 Earnings Presentation on 6ix