Gurit Holding Ag · SIX:GURN
Gurit — FY2020 Earnings Presentation
32 slides from Gurit's earnings presentation, Mar 2, 2021
Slide 1: Gurit 2020 Results Media and Analyst Conference
Gurit 2020 Results Media and Analyst Conference 2 March 2021 at 09:00 AM CET Mitja Schulz, CEO Philippe Wirth, CFO
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 Gurit at a Glance 2 Business Review 3 2020 Financial Results 4 Strategy & Market 5 Summary and Guidance 6 Q&A session restricted to Analysts & Financial Journalists Gurit Annual Results 2020 2 March 2021 3
Slide 4: Our Business - Wind Energy and Lightweighting
Our Business - Wind Energy and Lightweighting Light- weighting Market Wind Energy Lightweighting Wind Aero Marine Industrial energy Offering Composite Materials: ▪ Core materials ✓ ✓ ✓ ▪ Prepreg ✓ ✓ ✓ ✓ ▪ Formulated ✓ ✓ ✓ Tooling ✓ Kitting ✓ Structural Engineering ✓ ✓ Gurit Annual Results 2020 2 Mar
Slide 5: Business review
Business review WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 6: Impact of the COVID-19 crisis
Impact of the COVID-19 crisis Executing our strategy despite influences of the global pandemic Success factors for managing the C-19 crisis ▪ Global situation and business environment ▪ COVID-19 still spreading in Europe, Americas and India, impacting all important markets Highest priority for Gurit
Slide 7: Financial performance in line with guidance
RESULTS FY2020 Financial performance in line with guidance ▪ Net Sales growth*: 8.9% at constant exchange rates to CHF 576.7 million (2019: CHF 558.3 million) ▪ Operating Profit growth*: 4.2% to CHF 64.1 million (2019: CHF 61.5 million) ▪ Operating profit margin*: 11.1% for 2020 (2019: 11.0%) * Cont
Slide 8: Composite Materials: Strong growth in Wind
RESULTS FY2020 Composite Materials: Strong growth in Wind Net Sales: CHF 276.2 million (2019: CHF 249.7 million) Increase by 16.1% vs. FY 2019 (at constant fx rates) Strong growth in Wind market. Balsa cost / prices increases boosting revenues. Marine and Industrial materials markets impacted by COV
Slide 9: Aerospace: Heavily impacted by COVID-19
RESULTS FY2020 Aerospace: Heavily impacted by COVID-19 Net Sales: CHF 31.6 million (2019: CHF 53.5 million) Decrease by 39.3% vs. FY 2019 (at constant fx rates) Global decline in passenger traffic due to COVID-19 thus declining orders for new aircraft plus supply chain de-stocking Key Business Steps
Slide 10: Kitting: Expanded footprint to ensure customer proximity
RESULTS FY2020 Kitting: Expanded footprint to ensure customer proximity Net Sales: CHF 225.6 (2019: CHF 190.7 million) Strong growth of 25.4% vs. FY 2019 (at constant fx rates) Key Business Steps ▪ Capability proven to serve customers out of alternative sites under COVID impact; high level of standa
Slide 11: Tooling: next steps towards automation
RESULTS FY2020 Tooling: next steps towards automation Net Sales: CHF 98.7 million Key Business Steps 2020 (2019: CHF 106.1 million) ▪ Strong global market position and improved market share with domestic customers in China Decrease by 1.7% vs. FY 2019 ▪ Drove innovation of Industry 4.0 process autom
Slide 12: 2020 Financial Results
2020 Financial Results Philippe Wirth CFO WITH PASSION FOR A SUSTAINABLE FUTURE
Slide 13: Strong sales growth driven by wind energy demand
FY2020 Strong sales growth driven by wind energy demand Materials Kitting Tooling Aerospace Group (Continued Operation) mCHF +16.2% mCHF +25.4% mCHF -1.7% mCHF -39.3% mCHF 160.0 160.0 160.0 160.0 300 140.0 140.0 140.0 140.0 250 120.0 120.0 120.0 120.0 200 100.0 100.0 100.0 100.0 80.0 80.0 80.0 80.0
Slide 14: Solid operating results despite challenging environment
FY2020 Solid operating results despite challenging environment Continued operations CHF million 2020 2019 Sales 576.7 558.3 ▪ Sales growth +8.9% at constant currency Growth +8.9% ▪ Organic growth +8.6% at constant currency ▪ Gross profit 0.7%-pts below prior year Gross Profit 120.9 121.1 ▪ Tooling s
Slide 15: Operating profit increase year on year
Operating profit increase year on year (Continued Business) Gurit Annual Results 2020 2 March 2021 15
Slide 16: Continued improvements in free cash flow
Continued improvements in free cash flow Net Working Capital CAPEX Free Cash Flow mCHF mCHF 30 50 45.8 30% 28.1% 250 26.7 24.7 42.1 25.5% 25 40 25% 22.2% 200 19.3% 20 20% 30 136.4 127.7 150 15.3 15% 111.6 15 101.2 12.0 18.9 20 100 10% 10 50 10 5% 5 5.3 0% 0 0 0 2017 2018 2019 2020 2017 2018 2019 202
Slide 17: Robust balance sheet
FY2020 Robust balance sheet CHF million Dec 2020 Dec 2019 Net Debt 19.9 52.9 ▪ Net debt reduction CHF 33m compared to prior year Change -33.0 ▪ Strengthening of Swiss Franc reduces equity by CHF Equity Ratio 45.7% 40.2% 10.6m Change +5.5 %-pts ▪ Equity ratio reduction due to currency -1.4%-pts Gross
Slide 18: Strategy & market outlook
Strategy & market outlook Gurit Annual Results 2020 2 March 2021 18
Slide 19: Renewables to dominate future electricity generation
NET ZERO COMMITMENTS ACCELERATE WIND GROWTH Renewables to dominate future electricity generation Renewable power generation until 2050 Breakdown of total installed capacity by source 2017-2050 Strong long-term growth perspective: ▪ Net-zero emission targets established: CHN (2060); JPN, KOR & CAN (a
Slide 20: Wind energy continues long-term growth trajectory
2021 TRANSITION YEAR AFTER CHINA PREBUILDS LAST YEAR Wind energy continues long-term growth trajectory ▪ China wind turbine grid- connections grew rapidly due to an installation rush before the expiry of feed-in tariffs for onshore wind ▪ 2021 will be at lower level as a result of China prebuilds, p
Slide 21: Wind market trends & Gurit's strategic positioning
Wind market trends & Gurit’s strategic positioning Technologies ▪ Larger rotors and split blade technology ▪ Drive Tooling Automation, sensor integration and Industry 4.0 forward ▪ Digitalization & Modularization ▪ Build on Inhouse PET value creation ▪ End of Life management & recyclability of turbi
Slide 22: Tooling automation & digitalization roadmap
Tooling automation & digitalization roadmap Application 2020 2021 2022 2023 2024 Industry 4.0 • Turnkey moulding & Gurit blade cloud Bonding & Assembly blade production solutions • System provider using synergies with Layup other business units • Cure monitor sensors • • • Front flow sensors Vacuum
Slide 23: Wind market trends & Gurit's strategic positioning
Wind market trends & Gurit’s strategic positioning Technologies ▪ Larger rotors and split blade technology ▪ Drive Tooling Automation, sensor integration and Industry 4.0 forward ▪ Digitalization & Modularization ▪ Build on Inhouse PET value creation ▪ End of Life management & recyclability of turbi
Slide 24: Global footprint: strategic investments
Global footprint: strategic investments Gurit Annual Results 2020 2 March 2021 24
Slide 25: Leveraging synergies in dedicated wind industry parks
CO-LOCATION STRATEGY & CUSTOMER PROXIMITY Leveraging synergies in dedicated wind industry parks Blade Manu- PET facturer extruder Wind turbine OEM Kitting Gurit Annual Results 2020 2 March 2021 25
Slide 26: Wind market trends & Gurit's strategic positioning
Wind market trends & Gurit’s strategic positioning Technologies ▪ Larger rotors and split blade technology ▪ Drive Tooling Automation, sensor integration and Industry 4.0 forward ▪ Digitalization & Modularization ▪ Build on Inhouse PET value creation ▪ End of Life management & recyclability of turbi
Slide 27: Growth opportunities outside of Wind business
Growth opportunities outside of Wind business Marine Transportation Rail Agriculture Civil / Building Materials: Materials: Materials: Materials: Materials: Corecell™,Kerdyn™, Prepreg, Kerdyn™ FR prepreg, Prepreg, adhesive Kerdyn™ FR, formulated & formulated & prepreg Kerdyn™, prepreg for architectu
Slide 28: Gurit started implementation of sustainability strategy
ESG PERFORMANCE Gurit started implementation of sustainability strategy Implementation 2021– ▪ Sustainability organisation ▪ Related workstreams ▪ Commitments & transparent reporting Download the Gurit Sustainability Report 2020: www.gurit.com/sustainability Gurit Annual Results 2020 2 March 2021 28
Slide 29: Gurit to become climate neutral in 2021
ESG PERFORMANCE Gurit to become climate neutral in 2021* Our approach to climate neutrality: 1. Reduce emissions Optimize production & transportation, reduce waste 2. 100% Renewable electricity 3. Compensation for emissions that cannot yet be avoided: Wind energy project in India * for direct emissi
Slide 30: Summary and Guidance
Summary and Guidance ▪ Strong execution, solid portfolio, robust balance sheet ▪ Temporary reduced wind demand in China; Balsa price normalization ▪ Mid-term growth outlook: Expand manufacturing footprint & grow innovation leadership position as system supplier to the wind industry ▪ Marine markets
Slide 31: End of public webcast
End of public webcast Thank you for joining us today. Next dates ▪ April 14: Q1 net sales results ▪ August 17: 1HY2021 results ▪ End of August: Capital Markets Day ▪ October 15: Q3 net sales results Participants registered for the private Q&A session please stay on the line. The Q&A session is reser
Slide 32: Thank you for your attention
Thank you for your attention investor@gurit.com www.gurit.com Follow us on Linkedin: Gurit Twitter: Guritgroup WITH PASSION FOR A SUSTAINABLE FUTURE