Slide 1: Interroll Group H1/2020 Analyst Webcast
Interroll Group H1/2020 Analyst Webcast Heinz Hössli, Group CFO Martin Regnet, Global PR Manager Interroll Holding AG Interroll Holding AG interroll.com
Slide 2: Agenda
Agenda Welcome Brief Introduction Heinz Hössli Group Overview Financial Highlights H1/2020 Q&A 2
Slide 3: Introduction Heinz Hössli (Group CFO)
Introduction Heinz Hössli (Group CFO) Born 1969, Swiss Certified Public Accountant (CPA) from EXPERTsuisse, Zurich, CH Holds a Global Executive MBA from Duke’s Fuqua School of Business in Durham (USA) with recognition as a Fuqua Scholar. Previous roles: CFO/VP Advanced Materials (2012 to Mar 2020) a
Slide 4: Group Overview
Group Overview Martin Regnet, Global PR Manager Interroll Holding AG interroll.com
Slide 5: Interroll
Interroll Leading global provider for material handling solutions • 2,400 employees • 34 companies • 16 main factories • Headquarters in Switzerland • 28,000 customers Americas EMEA Asia Pacific • Founded in 1959 • CHF 559.7 Mio. 27% 57% 16% in Net Sales* of Global Sales” of Global Sales* of Global
Slide 6: Internal Logistics Solutions are part of Material Handling Equipment Manufacturing
Internal Logistics Solutions are part of Material Handling Equipment Manufacturing Material Handling Equipment Manufacturing (MHEM) Market > CHF 150 billion (2020), growing at a CAGR of 4-7% (2020-2025) Internal Logistics Solutions are a part of the MHEM Market. Relevant market for Interroll product
Slide 7: Our key products
Our key products 2019 Rollers Drives Conveyors & Sorters Pallet Handling 19.7% of group revenues 30.8% of group revenues 39.9% of group revenues 9.6% of group revenues Rollers are the non-driven, Drives are responsible for Conveyor modules are tracks Solutions for dynamic storage, moving parts of co
Slide 8: Our business model
Our business model Interroll as enabler Market • Market environment: increasingly dynamic • Material handling market attractive for new entrants, consolidation Interroll • Platform products for globally consistent / tested solutions • Proximity to customers: own network in key markets and industries
Slide 9: Our growth strategy
Our growth strategy Solutions, Markets, Service Geographic Expansion Innovative products Service business Regional presence Service EMEA Americas Asia Pacific - Installed base greatly Innovations - Sorters & Conveyors: - High potential - Localization expanded (>400 sorters) Strong growth Value creat
Slide 10: Smart Pallet Handling Solutions
Smart Pallet Handling Solutions Overview • Interroll offers a comprehensive, set of modular pallet handling solutions: • MPP – The Modular Pallet Conveyor Platform • Stacker Crane & Transfer Car • Pallet Flow • Combined they constitute the ultimate high-quality solution for the entire flow of pallet
Slide 11: Smart Pallet Handling Solutions
Smart Pallet Handling Solutions Benefits At A Glance
Slide 12: Interroll Sorter
Interroll Sorter More than 400 installations worldwide More than 400 sorters installed worldwide 20 years of experience as a neutral partner for sorters Well-known customers from CEP, fashion, e- commerce and other industries Proven mechanical design, reliable accurate discharge Interroll has entere
Slide 13: Innovation in practice
Innovation in practice Interroll High Performance Crossbelt Sorter (HPCS) Relevant markets: • CEP* • Distribution NEW: MX025H High-performance segment High Performance Crossbelt Sorter Relevant markets: • E-Commerce PROVEN: • Fashion ST6160/ST 6130 • Distribution Horizontal/Vertical Middle segment C
Slide 14: Organizational structure
Organizational structure Members of Group Management Paul Zumbühl Heinz Hössli Maurizio Catino Jens Strüwing Chief Executive Officer Chief Financial Officer Executive Vice President Executive Vice President Head of Global Sales & Service Head of Products & Technology Jens Karolyi Dr. Ben Xia Richard
Slide 15: Financial Highlights H1/2020
Financial Highlights H1/2020 Heinz Hössli, Group CFO Interroll Holding AG interroll.com
Slide 16: Performance summary H1/2020
Performance summary H1/2020 -11.9% order intake decline (previous year: -7.9%) Local currency: -6.1% All regions show a decline in order intake -10.6% sales decline (previous year: +8.4%) Local currency: -4.8% EMEA and Americas show a decline in sales but Asia-Pacific is growing +3.5% EBIT growth to
Slide 17: Order intake: CHF 263.4m (-11.9%)
Order intake: CHF 263.4m (-11.9%) Local currency: -6.1% In CHF million 350 300 27 250 20 Rollers: -5.9% 200 128 Drives: -10.5% 112 150 Conveyors & Sorters: -12.4% 100 87 77 Pallet Handling: -24.9% 50 57 54 Book-to-bill Ratio: 1.13 (PY: 1.15) 0 1606 1706 1806 1906 2006 Rollers Drives Conveyors/Sorter
Slide 18: Sales: CHF 233.2m (-10.6%)
Sales: CHF 233.2m (-10.6%) Local currency: -4.8% In CHF million 300 250 28 21 Rollers: -10.6% 200 84 81 Drives: -12.3% 150 Conveyors & Sorters: -3.5% 100 90 79 Pallet Handling: -26.6% 50 59 53 Book-to-bill Ratio: 1.13 (PY: 1.15) 0 1606 1706 1806 1906 2006 Rollers Drives Conveyors/Sorters Pallet Hand
Slide 19: Sales by region: CHF 233.2m (-10.6%)
Sales by region: CHF 233.2m (-10.6%) Local currency: -4.8% In CHF million EMEA AMERICAS ASIA 300 Sales development: - EMEA: -10.1% - Americas: -18.8% - Asia-Pacific: +10.7% 150 Sales by region: - EMEA: 60% (PY: 60%) - Americas: 27% (PY: 30%) - Asia-Pacific: 13% (PY: 10%) 0 1606 1706 1806 1906 2006 1
Slide 20: EBIT: CHF 32.3m (+3.5%)
EBIT: CHF 32.3m (+3.5%) In CHF million EBIT in % of sales Favorable margin from product mix 35 16% High cost and investment discipline 30 32.3 14% 31.2 25 12% EBITDA CHF 43.5m (+0.1%) 20 10% In % of sales 18.7% (PY: 16.7%) 8% 15 Depreciation almost unchanged 6% 10 Amortization lower 4% 5 2% EBIT CHF
Slide 21: Result: CHF 23.8m (+3.1%)
Result: CHF 23.8m (+3.1%) In CHF million Result in % of sales 25 12% 23.8 Negative financing result from FX 23.1 20 10% currency loss 8% Lower tax rate 15 6% Result CHF 23.8m (+3.1%) 10 4% In % of sales 10.2% (PY: 8.8%) 5 2% 0 0% 1606 1706 1806 1906 2006 21
Slide 22: Operating cash flow: CHF 45.6m
Operating cash flow: CHF 45.6m (+12.5%) In CHF million Operational cash flow in % of sales Lower NWC (inventories/WIP and trade 50 25% receivables) 45 45.6 Less income tax paid 40 20% 40.6 35 Operating cash flow CHF 45.6m 30 15% (+12.5%) 25 20 10% In % of sales: 19.6% (PY: 15.6%) 15 Investments CHF
Slide 23: Value creation: ROE 15.8% and RONA 19.5%
Value creation: ROE 15.8% and RONA 19.5% ROE vs. WACC of 9% 30% 20% 10% 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1/20 ROE 4.3% 11.1% 13.4% 12.8% 11.9% 9.9% 14.4% 16.4% 15.8% 19.0% 19.0% 15.8% RONA 1.6% 10.4% 9.9% 12.6% 12.2% 9.8% 15.3% 17.1% 16.5% 20.9% 22.6% 19.5% WACC 9.0% 9.0% 9
Slide 24: Profitable growth – now and in the future
Profitable growth – now and in the future Interroll is cautiously optimistic on accelerating business dynamics in H2/2020 (compared to H1/2020). Based on its strong market position, its innovative products, available capacities for growth and the fast growing end markets served (E- Commerce, CEP, Fo
Slide 25: Half-year report 2020
Half-year report 2020 https://www.interroll.com/investor- relations/reports-and-publications 25
Slide 26: Do you have any questions?
Thank you for your attention! Do you have any questions?
Slide 27: Contact details
Contact details Interroll Holding AG Via Gorelle 3 6592 Sant’Antonino Switzerland Heinz Hössli Martin Regnet Chief Financial Officer Global PR Manager h.hoessli@interroll.com m.regnet@interroll.com Phone +41 91 850 25 44 Phone +41 91 850 25 21 27
Slide 28: Disclaimer
Disclaimer This presentation contains certain future-oriented statements. Future-oriented statements include all statements which do not relate to historical facts and events and contain future-oriented expressions such as “believe”, “estimate”, “assume”, “expect”, “forecast”, “intend”, “could” or “
Slide 29: BACKUP
BACKUP INTERROLL 29
Slide 30: Interroll – Customer – End User Relationship
Interroll – Customer – End User Relationship Delivery of Delivery of products for overall systems internal logistics ORIGINAL EQUIPMENT INTERROLL MANUFACTURER/ END USER SYSTEM INTEGRATOR Orders for Orders for Original Equipment Interroll Manufacturer (OEM) / System integrator Product competitors OEM
Slide 31: Competitors overview
Competitors overview Explanation Our opportunity Majority local, few global competitors Extend market share Direct competition for individual Interroll products due to higher technology, No competitors (local and/or global) quality and for the complete Interroll product global availability portfolio
Slide 32: References (a selection)
References (a selection) These end users trust Interroll’s solutions 32
Slide 33: References
References Partners (a selection) 33
Slide 34: Responsible corporate governance strengthened
Responsible corporate governance strengthened • Interroll reaffirms its commitment to responsible corporate governance with progress reports at the end of February each year to the UN Global Compact. • Successes were achieved in the rollout of a code of conduct for suppliers and in further and more
Slide 35: Digitalization at Interroll
Digitalization at Interroll Triple benefit: Production, product and process Digitalization of the Productivity Customer benefits Digitalization of the Production products • Digitization Product Lifecycle • Example EC 5000: Management Big Data Production Products • IPS: Interroll Production System as