Bystronic Ag · SIX:BYS

Bystronic — Conzzeta — H1 2018 Earnings Presentation

33 slides from Bystronic's earnings presentation, Aug 10, 2018

  1. Slide 1: 1HY 2018 Results Presentation & Business Update

    1HY 2018 Results Presentation & Business Update August 10, 2018 Seite 1 1HY 2017 Results Presentation Konzernleitungs-Sitzung vom 9. &November Business 2011 Update - Robert Suter

  2. Slide 2: Disclaimer

    Disclaimer The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and half-year report of Conzzeta AG and on the website www.conzzeta.com prevails. Although the greatest possible care was taken with

  3. Slide 3: Content

    Content  Financial results 1HY 2018  Business update  Outlook FY 2018  Appendix Page 3 1HY 2018 Results Presentation & Business Update

  4. Slide 4: Conzzeta results summary 1HY 2018

    Conzzeta results summary 1HY 2018 Overall strong business trend  Especially strong across segments at the beginning of the year Net revenue CHF 853.3 m, +36.8%; comparable1) +19.7%  Double-digit growth across all regions and segments, with benefits from M&A Operating result (EBIT) CHF 66.3 m, + 72

  5. Slide 5: Balanced global growth – continued focus on Asia and USA

    Balanced global growth – continued focus on Asia and USA Net revenue trend by region +36.8%  Strong 30% growth across regions CHF m Reported Comparable 853.3 Asia +36.7% +23.4% Europe +39.3% +17.2% 240.1 623.5 Americas +29.9% +21.5% 175.6 149.4  Strengthened footprint in growth 115.0 markets; rev

  6. Slide 6: 1HY 2018 key figures

    1HY 2018 key figures (in CHF m) 1HY18 1HY17 ∆ Net revenue 853.3 623.5 +36.8%  Group KPI’s with notable improvements Operating result (EBIT) 66.3 38.3 +72.9% EBIT margin 7.6% 5.8% +180 bps  Strong internal and external topline growth; Net revenue Group result 51.1 30.0 +70.3% comparable +19.7% Earn

  7. Slide 7: Development of Net revenue driven by organic growth and M&A

    Development of Net revenue driven by organic growth and M&A (in CHF m) 1HY 2017 623.5 Volume +19.7% +123.0 and price Acquisitions of Otto Bock Kunststoff Change in and TTM Laser, partly +13.6% +85.0 scope offset by sale of US joint venture FX +21.8 +3.5% translation 1HY 2018 853.3 Page 7 1HY 2018 Re

  8. Slide 8: Development of EBIT reflects operational improvements

    Development of EBIT reflects operational improvements (in CHF m) 1HY 2017 38.3 5.8% of TR Volume and +61.3 Progress from profitable product mix growth in Sheet and Glass as well as reduced operational Personnel loss in Sporting Goods, -15.4 expenses partly offset by elevated raw material and reorgan

  9. Slide 9: Cash flow reflects volume-driven increase of NWC and dividend payment

    Cash flow reflects volume-driven increase of NWC and dividend payment (in CHF m) +67 -22 399 -6 -27 50 -33 364 50 349 -14 Operating free cash flow 314 CHF +39 m Free cash flow CHF +12 m Marketable Securities YE 2017 Operating Change in Net investments Acquisitions Dividend Other, incl. 1HY 2018 cash

  10. Slide 10: Particularly strong Q1 2018 with base effect in Q2 2018

    Particularly strong Q1 2018 with base effect in Q2 2018 2017 2018 ∆% ∆% ∆% Q1 Q2 1HY Q1 Q2 1HY Q1 Q2 1HY Order entry Investment goods 232.9 275.1 508.0 276.1 305.4 581.5 18.6 11.0 14.5 Net revenue Total Conzzeta 300.1 323.4 623.5 430.6 422.7 853.3 43.5 30.7 36.8 Sheet Metal Processing 158.8 206.1 36

  11. Slide 11: Content

    Content  Financial results 1HY 2018  Business update  Outlook FY 2018  Appendix Page 11 1HY 2018 Results Presentation & Business Update

  12. Slide 12: Sheet Metal Processing with continued momentum

    Sheet Metal Processing with continued momentum CHF m 1HY18 1HY17 ∆ Operational performance  First-time consolidation of TTM Laser; Net revenue 477.3 364.9 +30.8% comparable net revenue +25.7% Operating  Continued double-digit growth rates 62.6 39.9 +57.0% result (EBIT) across regions  Significant

  13. Slide 13: Ongoing investments to realize opportunities from fundamental market trends

    Ongoing investments to realize opportunities from fundamental market trends Aspiration Segmentation Markets Deliver targeted client offerings Top line Europe with an holistic life-cycle management Performance line Americas Drive innovation, also to be the trusted Entry line Asia partner for integrat

  14. Slide 14: Recent bolt-on acquisitions to strengthen value proposition

    Recent bolt-on acquisitions to strengthen value proposition  Consolidation as of July, 2018  Specialist in automation, i.e. loading, unloading & storage systems  ~100 employees with EUR ~18 m sales in 2017  Consolidation as of April, 2018  Specialist for 3D laser cutting Antil and Bystronic aut

  15. Slide 15: Sporting Goods with improved performance

    Sporting Goods with improved performance CHF m 1HY18 1HY17 ∆ Operational performance  Comparable net revenue +14.2% Net revenue 111.1 94.9 +17.0%  Double-digit growth in Europe and Asia Operating driven by successful product launches -6.4 -9.9 +35.2% result (EBIT) and dynamic direct to consumer bu

  16. Slide 16: Consistent strategy – build retail capabilities & wholesale excellence

    Consistent strategy – build retail capabilities & wholesale excellence as response to competitive pressure and change in client behavior Multichannel Management & Digitalization  Deepening relationships with selected wholesale partners I  Strengthening and enhancing direct to consumer business  H

  17. Slide 17: We strive for a premium brand recognition across all dimensions

    We strive for a premium brand recognition across all dimensions EIGER – Mountaineering DELTA X – Urbaneering Fully committed to the Address urban needs mountain heritage of outdoor enthusiasts Successful relaunch of Launch event was July 3 in “Eiger Extreme” collection Berlin, roll-out early 2019 En

  18. Slide 18: Chemical Specialties with continued margin pressure from raw material costs

    Chemical Specialties with continued margin pressure from raw material costs CHF m 1HY18 1HY17 ∆ Operational performance  Comparable net revenue +3.8% Net revenue 202.8 114.2 +77.6%  Integration Otto Bock Kunststoff on Operating track; consolidated as of Sep 1, 2017 9.2 9.9 -7.4% result (EBIT)  Gr

  19. Slide 19: FoamPartner raw material costs with further increase

    FoamPartner raw material costs with further increase FoamPartner raw material price index (weighted basket of Esther and Ether Polyols, TDI, MDI)  High raw material prices persisted throughout 1HY 2018, with some +12.8% easing towards mid-year 150 +29.2%  FP average weighted RM price index 145.3 +

  20. Slide 20: Integration of Otto Bock Kunststoff on track

    Integration of Otto Bock Kunststoff on track Expected synergy benefits*, CHF m  SG&A and Production with higher benefits than initially expected; opportunities from leveraging joint Top-down capabilities, e.g. technologies, estimated infrastructure, product / site allocation  Procurement with subs

  21. Slide 21: FoamPartner manufacturing footprint expansion and re-alignment

    FoamPartner manufacturing footprint expansion and re-alignment Current production sites Implementing a regional business model  Nov 2016: Announced Growth Strategy America with 3 business regions Swisstex, Greenville (SC) Hydra Sponge, Washington (MO)  Sep 2017: Acquisition of Otto Bock Kunststoff

  22. Slide 22: Glass Processing with continued good momentum in HY

    Glass Processing with continued good momentum in 1 HY CHF m 1HY18 1HY17 ∆ Operational performance Net revenue 62.4 49.7 25.6%  Comparable net revenue +22.7%  Good momentum from 2HY 2017 carried Operating into 1HY 2018, benefitting from large client 2.9 1.8 +63.3% result (EBIT) projects completed i

  23. Slide 23: Content

    Content  Financial results 1HY 2018  Business update  Outlook FY 2018  Appendix Page 23 1HY 2018 Results Presentation & Business Update

  24. Slide 24: Priorities & outlook for 2018

    Priorities & outlook for 2018  Consistent strategy execution with long-term perspective  Group priorities remain unchanged 1. Market orientation 2. Business excellence 3. People development 4. Internationalization  Improvements of operating results in Chemical Specialties, Sporting Goods and Glas

  25. Slide 25: Financial calendar

    Financial calendar 2018 August 21 Roadshow Zurich ZKB September 18 / 19 Roadshow Boston and New York Mainfirst September 26 Investora Conference, Zurich October 16 9M Trading Update October 17 Roadshow London Credit Suisse October 22 Roadshow Frankfurt Mainfirst November 15 Swiss Mid Cap Conference,

  26. Slide 26: Content

    Content  Financial results 1HY 2018  Business update  Outlook FY 2018  Appendix Page 26 1HY 2018 Results Presentation & Business Update

  27. Slide 27: Conzzeta position and aspiration

    Conzzeta position and aspiration Swiss mid cap industrial portfolio with entrepreneurial anchor shareholders operating in attractive global markets with focus on value creation and dividend Financial aspiration Net sales growth >5% EBIT margin 8-10% RONOA >15% Sheet Metal Sporting Chemical Glass Net

  28. Slide 28: Strong Net revenue performance in 1HY 2018 across all segments

    Strong Net revenue performance in 1HY 2018 across all segments Net revenue trend by segment +36.8%  All segments with strong net revenue CHF m performance, Chemicals driven by M&A 853.3 Reported Comparable 62.4 Sheet +30.8% +25.7% 623.5 111.1 49.7 Glass +25.6% +22.7% 202.8 94.9 Sport +17.0% +14.2%

  29. Slide 29: Seasonal pattern with typically stronger 2nd half of the year

    Seasonal pattern with typically stronger 2nd half of the year 1HY 2HY 1HY 2HY 1HY 2HY 1HY (in CHF m) 20151) 20151) 20151) 2016 2016 2016 2017 2017 2017 2018 Net revenue 531.0 595.1 1’126.1 522.7 687.4 1’210.0 623.5 859.3 1’482.8 853.3 Total revenue 541.0 582.8 1’123.8 543.0 667.8 1’210.8 658.6 842.3

  30. Slide 30: Balance sheet

    Balance sheet (in CHF m) 1HY18 1HY17 Cash, cash equivalents and securities 364.1 501.4 Receivables 278.5 209.4 Prepaid expenses and accrued income 11.8 13.3 Inventories 335.8 278.6 Property, plant and equipment 242.9 195.6 Financial assets 66.5 69.7 Intangible assets 14.6 8.4 Short-term liabilities

  31. Slide 31: Income statement

    Income statement (in CHF m) 1HY18 1HY17 Net revenue1) 853.3 623.5 ∆ Inventory and own work capitalized 22.5 35.1 Total revenue1) 875.8 658.6 Other operating income 4.5 2.4 Cost of materials -444.1 -326.9 Personnel expenses -193.9 -161.3 Other operating expenses -159.3 -121.6 Depreciation -16.7 -12.9

  32. Slide 32: Cash flow statement

    Cash flow statement (in CHF m) 1HY18 1HY17 Cash flow from operating activities 67.5 43.9 before change in net working capital Change in net working capital -21.9 -31.6 Cash flow from operating activities 45.6 12.3 Net investments in property, plant and -15.9 -8.9 equipment and intangible assets Net

  33. Slide 33: Conzzeta Management AG

    Conzzeta Management AG Giesshuebelstrasse 45 CH-8045 Zurich www.conzzeta.com Phone +41 44 468 24 44 investor@conzzeta.com Seite 33 1HY 2017 Results Presentation Konzernleitungs-Sitzung vom 9. &November Business 2011 Update - Robert Suter

Conzzeta — H1 2018 Earnings Presentation on 6ix