Sfs Group Ag · SIX:SFSN
Sfs — H1 2024 Earnings Presentation
35 slides from Sfs's earnings presentation, Jul 18, 2024
Slide 1: Presentation 1H 2024 results
Presentation 1H 2024 results Heerbrugg | July 18, 2024 Presentation 1H 2024 results | 7/18/2024 | Public <#>
Slide 2: Today's speakers
Today’s speakers Welcome to the presentation on our 1H 2024 results Jens Breu, CEO Christina Burri, representing CFO Volker Dostmann Presentation 1H 2024 results | 7/18/2024 | Public 2
Slide 3: Agenda
Agenda 1. Positioning of SFS Jens Breu 2. Key takeaways Jens Breu 3. Development of key financials Christina Burri 4. Development by segment Jens Breu 5. Guidance 2024 & Group priorities Jens Breu 6. Q&A Jens Breu & Christina Burri Presentation 1H 2024 results | 7/18/2024 | Public 3
Slide 4: Positioning of SFS
Positioning of SFS Presentation 1H 2024 results | 7/18/2024 | Public 4
Slide 5: We are by your side – 24/7
Mission critical products for selected end markets We are by your side – 24/7 Presentation 1H 2024 results | 7/18/2024 | Public 5
Slide 6: SFS value proposition: Inventing success together
SFS value proposition Inventing success together Presentation 1H 2024 results | 7/18/2024 | Public 6
Slide 7: SFS value engineering
SFS value engineering Synergies in tooling-based technologies Presentation 1H 2024 results | 7/18/2024 | Public 7
Slide 8: Global sales & manufacturing platform
Global sales & manufacturing platform 140 locations Customer proximity supported by local presence in 35 countries North America Europe Asia, others 40 Locations 85 Locations 15 Locations (7 Production sites) (20 Production sites) (5 Production sites) Presentation 1H 2024 results | 7/18/2024 | Publi
Slide 9: Key takeaways
Key takeaways Presentation 1H 2024 results | 7/18/2024 | Public 9
Slide 10: Key takeaways: Stable development
Key takeaways Stable development • Challenging economic environment in the first half of 2024, marked by inconsistent business performance and inventory reductions in individual end markets • Total third-party sales (sales) of CHF 1,544.9 million, corresponding to a reduction of –2.3% vs. 1H 2023 •
Slide 11: Development of key financials
Development of key financials Presentation 1H 2024 results | 7/18/2024 | Public 11
Slide 12: Third-party sales bridge
Third-party sales bridge Slight organic sales growth Organic 1H 2024 1H 2024 1H 2023 In CHF million growth1 CHF million % % 1,600 +0.1% +0.0% –2.4% EC segment 26 4.8% –4.3% FS segment –21 –7.7% 4.2% 1,580.7 1.1 0.3 -37.2 D&L segment –4 –0.5% 4.8% • Recovery in EC segment driven by all divisions –2.3
Slide 13: Sales breakdown by end market and region
Sales breakdown by end market and region Growth in EC end markets, recovery in Asia 100% 100% 7.8% 8.7% 11.2% 11.1% 12.5% 12.7% 12.5% 13.0% 11.8% 16.5% 7.7% 7.2% 22.4% 21.6% 5.6% 5.7% 5.5% 6.2% 80% 80% 16.3% 16.6% 16.9% 15.8% 12.8% 11.1% 11.3% 20.9% 19.9% 18.5% 22.7% 21.8% 60% 10.9% 11.5% 60% 22.7%
Slide 14: Operating profitability
Operating profitability EBIT margin at previous year level • Recovery in profitability in EC segment In CHF million In % of net sales • Capacity utilization impacting profitability of FS and 1,000 21.5% 25 D&L segments 900 19.2% 20 800 700 15.9% 16.4% 16.1% 15.8% 15.9% 600 13.3% 15 12.1% 12.1% 11.7%
Slide 15: Expectations met
Expectations met Profitability influenced by mix effects In CHF million 1H 2024 % 1H 2023 % +/– PY Net sales 1,543.5 100.0% 1,573.7 100.0% –1.9% Contribution margin 904.3 58.6% 909.8 57.8% –0.6% Personnel expenses –433.1 –28.1% –420.9 –26.8% Other OPEX –225.4 –14.6% –235.8 –14.9% EBITDA 245.8 15.9%
Slide 16: Earnings per share (EPS)
Earnings per share (EPS) EPS with negative development • Net income attributable to SFS (Nominator) –11.0% EPS in CHF 12 3.0 • Weighted average number of outstanding shares (Denominator) –0.0% 11 2.50 2.50 10 2.5 • Overall EPS –11.0% 2.20 9 8 1.80 2.0 6.95 • Decrease in net income mainly driven by l
Slide 17: Net working capital
Net working capital FX-impact and usual seasonal influences • Overall slight increase in inventory due to EC NWC simplified* in % of net sales C2C simplified in days segment ramp-ups 35% 150 • Significant increase in NWC (especially account 30.3% 29.9% 30.4% 30% 28.2% receivables) compared to Decemb
Slide 18: Capital expenditure
Capital expenditure Investing – Focus on defined areas of growth CAPEX spending 1H 2024 1H 2023 In CHF million In % of net sales by segment % % 400 7% 6.4% EC 71 73 6.1% 6.2% FS 12 12 350 5.7% 6% 5.9% 5.2% D&L 11 10 300 5.6% 4.5% 5% 250 4.1% • Continued CAPEX within target range of 4–6% of net 4.3%
Slide 19: Operating free cash flow (OFCF)
Operating free cash flow (OFCF) Recovery to past performance ongoing In CHF million 1H 2024 1H 2023 In CHF million In % of EBITDA 58.7% CF before changes in NWC 199 202 360 60% Changes in NWC –43 –51 49.9% Cash flow from operations 156 151 300 50% CAPEX –69 –82 Operating free cash flow 87 69 240 40%
Slide 20: Balance sheet ratios
Balance sheet ratios Equity ratio increasing according to plan • Important factors for net debt development: Equity ratio in % CHF million net cash/debt • Improved generation of operating free cash flow 90% 600 • Dividend payment in first half-year 78.9% 80% 75.9% • Bond maturity is 2025/2027 (CHF 2
Slide 21: Return on capital
Return on capital ROCE remains on 2023 year-end level • Bridge ROCE to ROIC In % of net sales • Impact from goodwill and net cash: –8.0% 30% • Impact from tax effects: –3.5% 26.1% 24.4%* 25% 21.7% 20.4% 20.2% 20% 19.9% 15% 11.7% 12.1% 11.7% 11.2% 8.9% 9.4% 8.7% 10% Adjusted EBIT Adjusted EBIT −Tax R
Slide 22: KPI summary
KPI summary In challenging environment In CHF million 1H 2024 % 1H 2023 % +/– PY Third-party sales 1,544.9 1,580.7 Net sales 1,543.5 1,573.7 EBITDA Margin 245.8 15.9% 253.1 16.1% –20 bps EBIT Margin 180.8 11.7% 189.9 12.1% –40 bps EBIT adj. Margin adj. 180.8 11.7% 189.9 12.1% –40 bps Net income Rati
Slide 23: Development by segment
Development by segment Presentation 1H 2024 results | 7/18/2024 | Public 23
Slide 24: Engineered Components segment: Low point passed
Headlines Engineered Components segment Low point passed • Reported sales of CHF 549.9 million, +2.1% vs. 1H 2023 • EBIT margin of 14.0% confirms positive development • Major application areas all with good performance • Automotive division continued to outgrow market as a whole, ramp-up precision c
Slide 25: Fastening Systems segment: Weaker demand
Headlines Fastening Systems segment Weaker demand • Reported sales of CHF 243.8 million, –10.0% vs. 1H 2023 • EBIT margin of 14.6% burdened by lower level of capacity utilization • Economy weakened by high inflation and interest rates equally in America and Europe, occasionally high inventories acro
Slide 26: Distribution & Logistics segment: Robust positioning
Headlines Distribution & Logistics segment Robust positioning • Reported sales of CHF 751.2 million, –2.6% vs. 1H 2023 • EBIT margin of 9.0% burdened by lower level of capacity utilization • Continuation of slow-down in market demand that began over the course of 2023, results impacted by weaker eco
Slide 27: Guidance & Group priorities
Guidance & Group priorities Presentation 1H 2024 results | 7/18/2024 | Public 27
Slide 28: Updated guidance 2024
Updated guidance 2024 FY 2024 with slight growth and profitability improvement 2023A 2024G Gross sales SFS development CHF 3,090.8 million Confirm slight growth* *(in local currencies, incl. scope effects) Slight improvement EBIT margin 11.7% of EBIT margin This outlook is based on the assumption th
Slide 29: Strategic priorities
Strategic priorities Focusing on our main strengths Diversi- Mega- “Local-for- Focus on Solid fication trends local” technology financing Balanced focus on Focus on application Close customer relation- Focus on a core set of Good profitability and a different regions, end areas with strong under- sh
Slide 30: Q&A
Q&A Presentation 1H 2024 results | 7/18/2024 | Public 30
Slide 31: Today's speakers: Any questions?
Today’s speakers Any questions? Jens Breu, CEO Christina Burri, representing CFO Volker Dostmann Presentation 1H 2024 results | 7/18/2024 | Public 31
Slide 32: Investor Day | September 5, 2024
Investor Day | September 5, 2024 Hands-on experience in Heerbrugg (Switzerland) Insights in our business and core competence • Automotive division • Electronics division • Construction division • D&L divisions Deep dive key projects, innovation trends & plant tours Invitations will be sent out by mi
Slide 33: IR events in 2024 & 2025
Agenda IR events in 2024 & 2025 2024 Investor Day Thursday, September 5, 2024 2025 Publication of first results on financial year 2024 Friday, January 24, 2025 Publication & presentation of Annual Report 2024 including Sustainability Report 2024 Friday, March 7, 2025 32th Annual General Meeting Wedn
Slide 34: Thank you for your attention!
Thank you for your attention! Presentation 1H 2024 results | 7/18/2024 | Public 34
Slide 35: Inventing success together
Inventing success together