Gurit Holding Ag · SIX:GURN
Gurit — FY2019 Earnings Presentation
37 slides from Gurit's earnings presentation, Feb 27, 2020
Slide 1: Gurit 2019 Results Media and Analyst Conference
Gurit 2019 Results Media and Analyst Conference Rudolf Hadorn, CEO Philippe Wirth, CFO Zurich, 27 February 2020 WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 2: Introductory statement
Introductory statement This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such stateme
Slide 3: Agenda
Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions Gurit FY2019 Results 27 February 2020 3
Slide 4: Our vision and mission
Our vision Our mission mission is in wind energy and lightweighting. We are a system partner for wind energy customers globally, with focus on the wind turbine blade. With our unique offerings and in- ‘ = depth understanding of the value chain we help to increase wind With Passio n energy competitiv
Slide 5: Sustainability Report 2019
Sustainability Report 2019 The Gurit Sustainability Report is available as a separate document and as a chapter of the Annual Report 2019 www.gurit.com/sustainability Gurit FY2019 Results 27 February 2020 5
Slide 6: Our Business - Wind Energy and Lightweighting
Our Business - Wind Energy and Lightweighting Light- weighting Wind energy As of 31 Dec 2019, continued business Gurit FY2019 Results 27 February 2020 6
Slide 7: Wind Market Opportunity
Gurit Wind Market Opportunity
Slide 8: Why focus on Wind Energy?
Why focus on Wind Energy? Long term growth drivers for renewable energy: Non- renewable Cost competitiveness at par/below non-renewable energy creation energy, 23% + Decarbonisation of energy generation Renewable + De-centralisation of energy generation energy, 77% + Digitalisation of networks and c
Slide 9: Global power generation mix
Global power generation mix “Wind and solar make up almost 50% of world electricity in 2050 – “50 by 50” – and help put the power sector on track for 2 degrees to at least 2030.” Source: BloombergNEF, New Energy Outlook (NEO) 2019 Historical world power NEO 2019 power generation mix generation mix 6
Slide 10: Wind Energy Demand Outlook
Wind Energy Demand Outlook GW Wind power capacity installed annually* 80 76 74 70 66 70 Wind growth trends and major changes 60 2020: further increase 50 forecasted to 76 GW 50 48 2021+: overall demand situation may improve; 40 US PTC ends 2020 but offshore 30 support is in discussion China
Slide 11: Average wind energy auction prices drop by region
Average wind energy auction prices drop by region Africa Europe Asia Latin America Average auction prices 2019: Asia: 53.7 USD / MWh Europe: 56.42 USD / MWh Latin America: 30.66 USD / MWh Source: Wood Mackenzie: 2019 Gurit FY2019 Results 27 February 2020 11
Slide 12: Our global leading offering for the Wind industry
Our global leading offering for the Wind industry Market position: #1 CORE MATERIALS Market position: top 2 Market position: #1 Gurit FY2019 Results 27 February 2020 12
Slide 13: Gurit 2019 Business Review
Gurit Gurit 2019 Business Review
Slide 14: Key Financial Notes 2019
Key Financial Notes 2019 Net Sales growth: 35.5% to CHF 576.4 million; (2018: CHF 425.3 million) currency-adjusted organic growth 11.3% Operating Profit growth: 81.8% to CHF 51.9 million (2018: CHF 28.6 million) Operating Cash Flow raised by 240.3% to CHF 65.9 million (2018: CHF 19.4 million)
Slide 15: Key Financial Notes 2019
Key Financial Notes 2019 Equity Ratio increase by 6.4%-pts to 40.2% (2018: 33.8%) Net Debt: reduced by 33.9% to CHF 52.9 million (2018: Net debt of CHF 80.0 million) CAPEX raised by 61.4% to CHF 24.7 million (2018: CHF 15.3 million) Gurit FY2019 Results 27 February 2020 15
Slide 16: Gurit investments in organic growth 2019/2020
WIND Gurit investments in organic growth 2019/2020 Strategic investment program for future growth PET extrusion capacity increase 2019/2020: 3 additional extrusion lines in deployment 400% capacity increase in 2021 vs, 2018 «Innovation Program PET 2021» underway Balsa expansion Indonesia 2
Slide 17: Gurit investments in organic growth 2019/2020
Gurit investments in organic growth 2019/2020 Major strategic investment program for future growth Wind: Geographic footprint expansion: Mexico: Kitting and PET extrusion in Matamoros for Americas market, complete 2020 India Wind strategy roll-out: Tooling plant in India: Set-up starts now (
Slide 18: Key Business Notes
Key Business Notes Health and Safety Program started to reduce LTAR by 50% from 2019 to 2022 Wind organic growth Wind market momentum – global material shortage - capacity rises Balsa shortage, disruptive sourcing prices - normalisation exp. late 2020 Multi-year supply agreements for synthet
Slide 19: Key Business Notes
Key Business Notes Acquisitions and divestments Acquisition Italian PET recycling business Sale of Gurit Automotive business - completed 2/2020 New product introductions Spabond 800 adhesive AMPRO multipurpose laminating systems New power hinge / tooling automation Gurit FY2019 Results 27
Slide 20: Offering in Lightweighting
Offering in Lightweighting Aerospace: Innovation programs for industrialized prepregs and low heat release epoxy development; additional prepreg tower for 2020; further customer qualifications to broaden customer base Railway: Increase market presence, promote use of composite technology Marin
Slide 21: Development in Business Units
Development in Business Units WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 22: Composite Materials
RESULTS 2019 / OUTLOOK 2020 Composite Materials Composite Materials: Quarterly Net Sales Net Sales 2019: CHF 249.5m (2018: CHF 221.3m) MCHF 70 59.4 60.7 61.5 63.2 64.1 60 Growth by 12.8% (FX adjusted: 15.2%) vs. 2018 50 Sales growth driven by the vibrant Wind energy market, 40 30 sales in Marine and
Slide 23: Tooling
RESULTS 2019 / OUTLOOK 2020 Tooling Tooling: Quarterly Net Sales MCHF 70 Net Sales 2019: CHF 106.1m (2018: CHF 118.5 m) 60 Decrease -10.5% (currency-adjusted: -8.6%) vs. 2018 50 Very strong first half year and an expected weaker 2HY. 40 36.1 31.7 29.3 30 22.5 20 15.8 10 Key Business Steps 2019 0 Q4
Slide 24: Gurit Kitting
RESULTS 2019 / OUTLOOK 2020 Gurit Kitting Kitting: Quarterly Net Sales MCHF 70 63.6 60 Net Sales 2019: CHF 190.7m 51.9 50 Consolidated as of mid October 2018. Majority of the 40 34.4 40.8 acquisition effect Gurit reported. Kitting is on a very strong 30 28.9 growth track versus prior year. 20 10 0 K
Slide 25: Aerospace
RESULTS 2019 / OUTLOOK 2020 Aerospace Aerospace: Quarterly Net Sales MCHF 16 Net Sales 2019: CHF 53.5m (2018: CHF 49.9m) 14 14.3 13.1 13.8 12 12.2 12 Both the European and American market generated solid demand. 10 8 6 Key Business Steps 2019 4 2 • Multi-year plant renewal, manufacturing capacity ex
Slide 26: Agenda
Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions Gurit FY2019 Results 27 February 2020 26
Slide 27: Net Sales Analysis by Markets
FINANCIAL RESULTS 2019 Net Sales Analysis by Markets Net sales in MCHF 576.4 Overall strong growth +38.6% adjusted for currency 425.3 Organic growth +11.3% adjusted for 352.0 360.5 currency Composite Material growth was driven by wind energy demand Tooling below prior year with weaker FY 201
Slide 28: Customer concentration & Net sales by destination
FINANCIAL RESULTS 2019 Customer concentration & Net sales by destination Top 10 customers in % of Total Net Sales Net Sales 2019 2019 (2018) 100% Europe 32% (38%) 80% 60% Asia 37% (36%) 40% Americas 23% (19%) 20% Rest of the world 8% (7%) 0% 2017 2018 2019 Wind customer Non-Wind customer Gurit FY201
Slide 29: Income Statement (Continued Operations)
FINANCIAL RESULTS 2019 Income Statement (Continued Operations) Consolidated Income Statement 2019 2018 Growth Continued Operations MCHF % NS MCHF % NS % Net sales 558.3 100.0% 410.6 100.0% 36.0% COGS -437.2 -78.3% -319.4 -77.8% 36.9% Gross profit 121.1 21.7% 91.3 22.2% 32.7% SG&A -55.7 -10.0% -47.7
Slide 30: Operating Profit Bridge 2018 vs. 2019
FINANCIAL RESULTS 2019 Operating Profit Bridge 2018 vs. 2019 (Continued Operations) 90 in MCHF 80 5.3 ‐12.1 70 ‐2.0 ‐1.2 ‐1.6 11.0 % ‐2.7 31.3 ‐0.8 60 50 11.0 % 40 30 61.5 45.4 20 10 0 Operating Volume, Sales price Material price Bad debt (delta) Impairment & 2018 SG&A incl. R&D Others Operating pro
Slide 31: Income Statement
FINANCIAL RESULTS 2019 Income Statement Consolidated Income Statement 2019 2018 Growth MCHF % NS MCHF % NS % Net sales 576.4 100.0% 425.3 100.0% 35.5% COGS -458.2 -79.5% -343.0 -80.6% 33.6% Gross profit 118.2 20.5% 82.3 19.4% 43.5% SG&A -56.9 -9.9% -49.4 -11.6% 15.2% Other operating income and expen
Slide 32: Balance Sheet
FINANCIAL RESULTS 2019 Balance Sheet Consolidated Assets Dec 2019 Dec 2018 Variance MCHF % MCHF % % Current Assets 260.1 71.7% 268.4 72.6% -3.1% Non-current Assets 102.7 28.3% 101.3 27.4% 1.4% TOTAL ASSETS 362.8 100% 369.7 100% -1.9% Consolidated Liabilities and Equity Dec 2019 Dec 2018 Variance MCH
Slide 33: Return on Net Assets (RONA)
FINANCIAL RESULTS 2019 Return on Net Assets (RONA) 18.0% 16.0% 16.1% 15.0% RONA at 12.2% increased 2.8%-pts 14.0% 12.2% compared to prior year 12.0% 10.5% 10.0% 9.4% 10.0% 9.0% 8.0% 6.7% Increase in average asset base more 6.0% than offset by strong operating profit 4.0% growth 2.0% 0.0% 2016 20
Slide 34: Cash Flow
FINANCIAL RESULTS 2019 Cash Flow Consolidated Cash Flow 2019 2018 Variance MCHF MCHF MCHF EBIT 51.9 27.6 24.3 Free Cash Flow at CHF 42.1m. Depreciation, amortisation, impairment 20.1 16.2 3.8 An improvement of CHF 36.8m compared to Change in working capital 6.8 -14.3 21.1 prior year Other cash flo
Slide 35: Net Working Capital & Capex
FINANCIAL RESULTS 2019 Net Working Capital & Capex Net Working Capital Capex (quarterly average) MCHF MCHF 30 30% 27.0% 250 24.7 28.1% 25.5% 25 25% 22.2% 200 20 20% 15.3 136.4 150 127.7 15 12.0 15% 101.2 10.5 95.0 100 10 10% 50 5 5% 0 0% 0 2016 2017 2018 2019 2016 2017 2018 2019 NWC (quarterly avg.)
Slide 36: Agenda
Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions Gurit FY2019 Results 27 February 2020 36
Slide 37: Summary and Outlook
Summary and Outlook Very positive growth and financial results across all metrics in 2019 Focused growth: Wind Energy is more than three quarters of total sales in 2019 Strong Wind market growth of 15% globally from 66GW in 2019 to 76GW in 2020 Major footprint and capacity expansion program