Starragtornos Group Ag · SIX:STGN
Starragtornos — Merger or Acquisition (October 2023)
33 slides from Starragtornos's merger presentation, Oct 26, 2023
Slide 1: Starrag and Tornos: Building the Future Together
STARRAG AND TORNOS BUILDING THE FUTURE TOGETHER Presentation for Media, Analysts, and Investors October 26, 2023
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. This presentation includes f
Slide 3: Disclaimer
Disclaimer While the Companies believe that each of these publications, studies and surveys has been prepared by a reputable source, the Companies have not independently verified the data contained therein. In addition, certain of the industry and market data contained in this presentation comes fro
Slide 4: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 4
Slide 5: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 5
Slide 6: StarragTornos Group – Leading Supplier in the Global Machine Tool Industry
STARRAGTORNOS GROUP – LEADING SUPPLIER IN THE GLOBAL MACHINE TOOL INDUSTRY MERGER FROM A POSITION OF PROMISING GROWTH ADDED VALUE THANKS TO STRENGTH OPPORTUNITIES SYNERGY EFFECTS Starrag und Tornos are joining forces as Long-term profitable growth thanks to Improved profitability through manufacture
Slide 7: Summary of the Transaction
SUMMARY OF THE TRANSACTION TRANSACTION DETAILS ▪ Merger to form the StarragTornos Group Ltd. ▪ Listed on SIX Swiss Exchange, Zurich ▪ Existing Starrag shares (3 360 000 registered shares at a nominal value of CHF 8.50 each) will remain in place and be converted into registered shares of StarragTorno
Slide 8: Indicative Timeline
▪ Extraordinary General Meeting of Starrag Group Holding AG INDICATIVE ▪ Approval of merger and merger agreement TIMELINE ▪ Approval of the ordinary capital increase in the context of the merger ▪ Legal completion of the merger ▪ Introduction of conditional share capital for the ▪ Last trading day f
Slide 9: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 9
Slide 10: Starrag and Tornos: Two Strong Companies with Tradition
STARRAG AND TORNOS TWO STRONG COMPANIES WITH TRADITION A GLOBAL TECHNOLOGY LEADER … A GLOBAL TECHNOLOGY LEADER … … in the development, production, and distribution of high- … for the development, production, and distribution of Swiss- precision machine tools for milling, drilling, grinding and type
Slide 11: Starrag and Tornos: A Perfect Match
STARRAG AND TORNOS A PERFECT MATCH Aerospace, Energy, Industry, Micromechanics, Luxury Goods, MedTech & Dental, Electronics, Watchmaking, Aerospace, MedTech & Dental, Transport Automotive Market segments Customer base in Europe, Americas, Asia Customer base in: Switzerland, Europe, Americas, Asia Pr
Slide 12: Strong Financial Profile
STRONG FINANCIAL PROFILE Financial year 2022 Starrag Tornos StarragTornos combined In CHF million Pro forma basis Order intake 395.8 194.1 589.9 Sales revenue 317.6 181.4 499.0 EBITDA 26.3 19.9 41.5 in % of sales revenue 8.3% 11.0% 8.3% Operating result EBIT 18.6 16.5 29.6 in % of sales revenue 5.8%
Slide 13: Starrag and Tornos Joint Profile (Pro Forma 2022)
STARRAG AND TORNOS JOINT PROFILE (PRO FORMA 2022) ORDER INTAKE SALES (combined 2022: CHF 589.9 million) (combined 2022: CHF 499.0 million) MARKET SEGMENTS REGIONS MACHINES AND SERVICES MedTech & Dental 11% Luxury Goods 21% Aerospace 19% Europe 82% Other countries 18% Machines 75% Services 25% Energy
Slide 14: StarragTornos Group: Strong Competitive Position in a Large Growing Market
Manufacturers with focus on turning and milling EUR mio STARRAGTORNOS GROUP 0 500 1000 1500 2000 STRONG COMPTETITIVE POSITION IN A LARGE, DMG STRUCTURALLY GROWING MARKET Grob Gruppe ▪ StarragTornos Group will become the fourth largest manufacturer of cutting* machine tools in Europe (with focus on t
Slide 15: Impressive Industrial Logic
STARRAGTORNOS GROUP IMPRESSIVE INDUSTRIAL LOGIC MERGER STRENGTHENS THE GLOBAL PRESENCE OF BOTH COMPANIES ▪ Both have a very strong market position in Europe and excellent complement in Americas and Asia ▪ Use of additional market potential in the future IDEAL COMPLEMENT TO THE TWO PRODUCT PORTFOLIOS
Slide 16: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 16
Slide 17: Cornerstones of the Joint Company Strategy
CORNERSTONES OF THE JOINT COMPANY STRATEGY 1 CUSTOMER FOCUS 2 WORLDWIDE GEOGRAPHICAL PRESENCE ▪ Increase in customer value and satisfaction ▪ Strengthening of market position in Europe ▪ Cooperation in attractive growth markets ▪ Clear focus on growth in Americas and Asia ▪ Organic growth through ma
Slide 18: Customer Focus: Growth Markets Addressed
CUSTOMER FOCUS 1 GROWTH MARKETS ADDRESSED MedTech & Dental Luxury Goods Aerospace Energy Transport & Industrial MARKET SEGMENTS STARRAGTORNOS ▪ Demographic change ▪ Rising incomes and ▪ Globalization and desire ▪ Substitution of fossil ▪ Increasing urbanization for mobility energy ▪ Technical progre
Slide 19: Customer Focus: Example of MedTech and Dental
CUSTOMER FOCUS 1 EXAMPLE OF MEDTECH AND DENTAL October 26, 2023 19
Slide 20: Customer Focus: Example of Luxury Goods
CUSTOMER FOCUS 1 EXAMPLE OF LUXURY GOODS s100 EvoDECO 10 s1000 October 26, 2023 20
Slide 21: Worldwide Geographical Presence Strengthens Competitiveness
WORLDWIDE GEOGRAPHICAL PRESENCE 2 STRENGTHENS COMPETITIVENESS ▪ Strong market position in Europe is an excellent basis for further expansion in Americas and Asia ▪ Attractive regional markets covered better worldwide thanks to complementary presence ▪ Production facilities and subsidiaries worldwide
Slide 22: Joint Development of Worldwide Geographical Presence
JOINT DEVELOPMENT OF 2 WORLDWIDE GEOGRAPHICAL PRESENCE Accelerating growth in the Expanding the geographic attractive markets of the footprint in Asia through Americas region innovation and collaboration ▪ Use and expansion of ▪ Working existing markets existing sales and service more effectively ne
Slide 23: Operational Excellence: High Potential for Synergies
OPERATIONAL EXCELLENCE 3 HIGH POTENTIAL FOR SYNERGIES Technological synergies Pooling strengths in the development of high-precision machine tools Market synergies Synergy effects in research and Increasing customer value through greater development joint customer proximity and expansion of Accelera
Slide 24: Operational Excellence: Expected Potential for Synergies
OPERATIONAL EXCELLENCE 3 EXPECTED POTENTIAL FOR SYNERGIES ▪ Sales synergies of CHF 10 to 15 million in the medium term (compared to pro forma basis 2022) through the improved market presence and the development of new markets and industries (joint use of distribution networks, cross-selling) will in
Slide 25: ESG Strategy
STARRAGTORNOS GROUP ESG STRATEGY Environment Products People Ethics and Governance Reduce greenhouse gases Improve energy efficiency Valuing employees, Maintain corporate values, and waste, reduce fossil of products. Ecological promoting talent, preventing enforce compliance, energy consumption, des
Slide 26: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 26
Slide 27: Transaction Structure
TRANSACTION STRUCTURE Current structure Capital increase / exchange Structure after merger Share capital Capital increase CHF 28 560 000.00 divided into CHF 17 876 528.50 by issuing 3 360 000 registered shares with 2 103 121 registered shares with Share capital a nominal value of CHF 8.50 a nominal
Slide 28: Change in Shareholder Structure – Free Float
CHANGE IN SHAREHOLDER STRUCTURE – FREE FLOAT SHAREHOLDER STRUCTURE BEFORE MERGER SHAREHOLDER STRUCTURE AFTER MERGER STARRAG TORNOS STARRAGTORNOS Walter Fust Eduard Stuerm AG Walter Fust Michel Rollier Walter Fust Eduard Stuerm AG Max Walter Rössler Free Float Free Float Michel Rollier Free Float Oct
Slide 29: Analysis of the Boards of Directors of Starrag and Tornos
ANALYSIS OF THE BOARDS OF DIRECTORS OF STARRAG AND TORNOS Independent Board Committees ▪ Independent Board Committees of both Boards of Directors have been established ▪ Members are: • For Starrag: Christian Androschin, Adrian Stürm and Bernhard Iseli • For Tornos: François Frôté and Michel Rollier
Slide 30: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 30
Slide 31: Planned Group Structure as of December 8, 2023
STARRAGTORNOS GROUP AG PLANNED GROUP STRUCTURE AS OF DECEMBER 8, 2023 Member of the Member of the Member of the Member of the Member of the Member of the Member of the Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors Board of Directors
Slide 32: Agenda
AGENDA 1 Introduction and Transaction Overview 2 Starrag and Tornos – a Strong Alliance 3 Strategy of the New StarragTornos Group 4 Transaction Structure 5 Governance 6 Conclusion 32
Slide 33: Conclusion: A Strong Strategic Partner
CONCLUSION 1 2 3 4 5 Long-term, profitable Expansion of Development of cutting- Excellent product Shareholder value growth by focusing on geographical presence in edge technology for portfolio and strong thanks to high growth markets with Americas and Asia and customers in the brand names profitabil
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