Phoenix Mecano AG · SIX:PMN
Phoenix Mecano — FY2022 Earnings Presentation
37 slides from Phoenix Mecano's earnings presentation, Apr 20, 2023
Slide 1: Annual Results 2022 and Q1 2023
ANNUAL RESULTS 2022 AND Q1 2023 Phoenix Mecano Group 20 April 2023 Annual results conference
Slide 2: Agenda
Introduction AGENDA Highlights 2022 Dr Rochus Kobler Business Performance 2022 René Schäffeler Digital Transformation@ Phoenix Mecano Ines Kljucar CO2 Strategy Dr Lothar Schunk Q1 2023 and Outlook Dr Rochus Kobler Q&A Phoenix Mecano, Annual results media conference, 20 April 2023 2
Slide 3: Highlights 2022
Introduction HIGHLIGHTS 2022
Slide 4: Highlights 2022
Introduction HIGHLIGHTS 2022 • Record results in a challenging market environment Streamlining • Profitable growth with industrial activities X • DewertOkin Technology Group close to break-even Focus through “perfect storm” • Turnaround of Industrial Components division confirmed Phoenix Mecano, Ann
Slide 5: Business Performance 2022
Current Financials BUSINESS PERFORMANCE 2022
Slide 6: Consolidated Results
Business Performance 2022 CONSOLIDATED RESULTS • Growth in Europe and America offset by sales decline in Asia • EBIT margin and ROCE increase driven by industrial activities • Strong result of the period due to improved operating and financial result EUR million 2021* 2022 +/- Gross sales 816.9 792.
Slide 7: Incoming Orders and Gross Sales
Business Performance 2022 INCOMING ORDERS AND GROSS SALES EUR million Book-to-bill ratio: 2022: 101.4% 900 888.9 2021: 108.8% 850 766.0 804.1 800 816.9 792.9 750 691.6 700 659.4 Incoming 680.0 687.4 orders 650 650.8 Gross sales 600 2018 2019 2020 2021* 2022 *restated Phoenix Mecano, Annual results m
Slide 8: Operating Cash Flow and Capital Expenditure
Business Performance 2022 OPERATING CASH FLOW AND CAPITAL EXPENDITURE EUR million Variance to 2021 | in % 84 74.0 78.0 72 66.6 Operating Operating 60 cash flow 48.2 cash flow (EBITDA) 48.8 + 17.1% 48 47.2 29.6 36 26.1 27.8 25.6 Capital 24 Capital expenditure expenditure + 59.7% 12 0 2018 2019 2020 2
Slide 9: Equity Ratio and Gearing
Business Performance 2022 EQUITY RATIO AND GEARING in % 70 Equity in % 61.3 60 59.1 of total assets 50 44.5 44.5 39.3 40 34.5 40.5 30 33.6 32.1 20 Net indebtedness in % of equity 10 12.7 0 2018 2019 2020* 2021* 2022 *restated Phoenix Mecano, Annual results media conference, 20 April 2023 9
Slide 10: Restatement
Business Performance 2022 RESTATEMENT • On 4 July 2022 Phoenix Mecano announced that an internal investigation had been opened into potential irregularities at a US subsidiary. • The investigation revealed irregularities in the recognition of sales, material costs, receivables, liabilities and defer
Slide 11: Proposed Dividend and Share Conversion
Business Performance 2022 PROPOSED DIVIDEND AND SHARE CONVERSION The Board of Directors proposes to the Annual General Meeting on 17 May 2023: • to increase the dividend from CHF 15.00 to CHF 16.50 per share (corresponding to a dividend return of 5,0 % based on share price end of 2022) • to convert
Slide 12: DewertOkin Technology Group
Business Performance 2022 DEWERTOKIN TECHNOLOGY GROUP • Shift in consumer interest away from consumer durables as well as eroding purchasing power in American end markets • Cost and capacity reduction measures taken to reduce negative impact of sales decrease • Vertical integration further enhanced
Slide 13: Industrial Components
Business Performance 2022 INDUSTRIAL COMPONENTS • Strong demand for lean solutions in industrial automation • High activity in project business for renewable energy generation, transmission and storage • Focus on profitable, high-margin activities EUR million 2021* 2022 +/- Gross sales 226.3 255.6 +
Slide 14: Enclosure Systems
Business Performance 2022 ENCLOSURE SYSTEMS • Booming market for electronic enclosures due to industrial digitalization • High demand for industrial enclosures with integrated electronics and human- machine interfaces • Further margin expansion due to stringent pricing strategy and good capacity usa
Slide 15: Digital Transformation@Phoenix Mecano
DIGITALIZATION DIGITAL TRANSFORMATION@ PHOENIX MECANO
Slide 16: How does digital transformation support our profitable growth targets?
Digital Transformation HOW DOES DIGITAL TRANSFORMATION SUPPORT OUR PROFITABLE GROWTH TARGETS? 1 Significant efficiency gains through optimization of internal processes 2 Increase of customer loyalty and retention by launching digital products and services along the customer journey 3 Identification
Slide 17: Building Blocks of Our Digital Transformation Roadmap
Digital Transformation THE BUILDING BLOCKS OF OUR DIGITAL TRANSFORMATION ROADMAP 1 Digitalized and 2 Digitized products 3 Digital automated processes and services Business models Building the base for Enhancing customer Identifying new profitable growth experience revenue streams Phoenix Mecano, Ann
Slide 18: Digitalized and Automated Processes – Selected Examples
Digital Transformation 1 DIGITALIZED AND AUTOMATED PROCESSES – SELECTED EXAMPLES Sales & Marketing Shopfloor Administration ― Lead generation ― ePaper based production ― AI based invoice automation ― AI based order processing ― Warehouse management ― Digital approvals/signatures Speed, productivity,
Slide 19: Digitized Products and Services: Example Industrial Cylinders
Digital Transformation 2 DIGITIZED PRODUCTS AND SERVICES: EXAMPLE INDUSTRIAL CYLINDERS Digitized products Services Marketing ― Digital interface ― Configuration tool ― Customer journey centred ― “Industry 4.0 ready” ― 3D downloads in real time touchpoints ― Instant purchasing capability ― Lead gener
Slide 20: Digital Business Model: Smart Assembly, Component to SaaS
Digital Transformation 3 DIGITAL BUSINESS MODEL: SMART ASSEMBLY, THE JOURNEY FROM COMPONENT TO A SAAS BUSINESS MODEL SaaS introduced SETAGO 3.0 • Cloud Ecosystem • Track & Trace • Document creation Intelligence connected • Retrofit possibility SETAGO 2.0 added • 3rd party HW integrated SETAGO 1.0 •
Slide 21: Slide 21
Slide 22: Outlook
Digital Transformation OUTLOOK 1 Processes: Automation remains a continuous effort and priority 2 Products & Services: Scale and innovate 3 Business models: Scale smart assembly and innovate Phoenix Mecano, Annual results media conference, 20 April 2023 22
Slide 23: CO2 Strategy
SUSTAINABILITY CO2 STRATEGY
Slide 24: Energy & CO2: Emissions Already Reduced by 10% Compared to 2021
CO2 Strategy ENERGY & CO2: EMISSIONS ALREADY REDUCED BY 10% COMPARED TO 2021 Total energy consumption | in % Direct and indirect emissions | in % GWh/a t CO2eq/a 80 – 6% 32.000 – 10% 60 24.000 40 81 79 16.000 77 75 20 8.000 19 21 23 25 0 0 2021 2022 2021 2022 Non-renewable energy consumption Scope 2
Slide 25: Mid-term Target: Reduce CO2 Emissions by 50% Until 2030
CO2 Strategy OUR MID-TERM TARGET IS TO REDUCE CO2 EMISSIONS BY 50% UNTIL 2030 100% 26 kt CO2 emissions 100 31 t CO2 per 1 Mio. Sales 1 50% Reduction of CO2 50 2 15 t per 1 Mio. Sales > 98% Reduction of CO2 rest to be compensated to reach Net-zero 3 0 2021 2030 2050 Note: Scope 1 and 2 only Phoenix M
Slide 26: Three Main Levers to Enable Reduction of 50% Until 2030
CO2 Strategy THREE MAIN LEVERS TO ENABLE REDUCTION OF 50% UNTIL 2030 Newer Technology Lean-Measures (J2OX) Solar-plant initiative Highly efficient machines, in production and office 8 GWh, of which 4 GWh already energetic refurbishment, greener in planning or construction electricity production mix,
Slide 27: Example Photovoltaics: Largest Plant with 1.6 GWh
CO2 Strategy EXAMPLE PHOTOVOLTAICS: LARGEST PLANT WITH 1.6 GWH TO BE INAUGARATED IN Q2 Location: Kecskemét Kft., HU Key figures PV • Production 1.6 GWh (20% of local electricity consumption; 4% of PM’s total consumption) • CO2 reduction 420 t/a • Investment 1.1 Euro million • Payback 3–5 years • EBI
Slide 28: Example Lean: 40% Reduction of Natural Gas Consumption
CO2 Strategy EXAMPLE LEAN: 40% REDUCTION OF NATURAL GAS CONSUMPTION Location: Kecskemét Kft., HU Key figures Lean • Process Powder coating • Measure Shift optimization • Effect 40% reduction of gas consumption of heating oven • EBIT-Effect 0.05 million/a Phoenix Mecano, Annual results media conferen
Slide 29: PM's Reduction Strategy with a Holistic Approach
CO2 Strategy PM’S REDUCTION STRATEGY WITH A HOLISTIC APPROACH CONTAINING 6 ELEMENTS Group Companies Incentives 1 Guidance 3 CO2 5 Group Awards Ambassadors 2 Funding 4 Best 6 Incentives Practice Sharing Controlling & Reporting Phoenix Mecano, Annual results media conference, 20 April 2023 29
Slide 30: Our Mission: True and Sustainable CO2 Savings
Our Mission GENERATE TRUE AND SUSTAINABLE CO2 SAVINGS WITH POSITIVE EBIT-IMPACT
Slide 31: Q1 2023 Outlook
Outlook Q1 2023 – OUTLOOK
Slide 32: Consolidated Results Q1 2023
Q1 2023 and Outlook CONSOLIDATED RESULTS • Group sales declined slightly due to divestments • Organic growth +3.7% • Operating result improved disproportionately on back of growth and profitability increase in industrial activities EUR million Q1 2022 Q1 2023 +/- Gross sales 210.0 208.9 -0.5% Operat
Slide 33: DewertOkin Technology Group
Q1 2023 and Outlook DEWERTOKIN TECHNOLOGY GROUP • High stock levels in US furniture market continued to weigh on demand • New industrial park in Jiaxing completed on plan and operational. Second construction phase started EUR million Q1 2022 Q1 2023 +/- Gross sales 91.6 79.3 -13.4% Operating result
Slide 34: Industrial Components
Q1 2023 and Outlook INDUSTRIAL COMPONENTS • Inventory reductions offset by new business and strong demand from renewable energy and electromobility segments • Margin expansion thanks to high capacity utilization and product mix optimization EUR million Q1 2022 Q1 2023 +/- Gross sales 62.5 65.0 +4.0%
Slide 35: Enclosure Systems
Q1 2023 and Outlook ENCLOSURE SYSTEMS • Strong demand from smaller customers compensated destocking of large clients • Improved profitability due to strong pricing power in short order cycles business areas EUR million Q1 2022 Q1 2023 +/- Gross sales 55.9 64.6 +15.5% Operating result 8.3 10.6 +26.9%
Slide 36: Outlook
Q1 2023 and Outlook OUTLOOK Economic Background Guidance 2023 • Slower growth expected for world economy • Purchasing managers‘ indices for major • Organic increase in economies signal contraction sales • China expected to grow faster as COVID measures lifted • Another double-digit Streamlining perc
Slide 37: Phoenix Mecano
PHOENIX MECANO