Slide 1: Half-Year Results Fiscal Year 2024
• Half-Year Results Fiscal Year 2024 November 5, 2024, Winterthur, Switzerland •
Slide 2: Disclaimer
Disclaimer The contents of this document, including all statements made therein, are based on estimates, assumptions and other information currently available to the management of Burckhardt Compression. This document contains certain statements related to the future business and financial performan
Slide 3: Agenda
Agenda 1. Key Highlights and Market Developments 04 2. Operational Review 10 3. Financial Review 19 4. Outlook 25 3
Slide 4: Key Highlights and Market Developments
Key Highlights and Market Developments Fabrice Billard CEO Half-Year Results Fiscal Year 2024 5 November 2024 4
Slide 5: Strong growth, profitability increase and value creation
Strong growth, profitability increase and value creation 1HY FY 2024 highlights (CHF mn) • Overall market growing again 615.2 Order intake • 2nd highest ever half-year, increasing backlog (+5.8%) • FX impact of -0.6pp Solar panels Green ammonia • Further ramp-up of deliveries in SYST 436.8 Sales • M
Slide 6: Systems market growing again following year of normalization
Systems market growing again following year of normalization 1HY FY 2024 market trends • Capacity building for EVA production lines continues, driven by expected solar panel demand growth in next years Petrochemical/ • EVA Hyper projects won in China and Saudi Arabia Chemical Industry • Growth of mi
Slide 7: Green ammonia tankers - A fast growing market for Burckhardt Compression
Green ammonia tankers - A fast growing market for Burckhardt Compression Ammonia as green energy carrier over large distances VLACs4 emergence opens new market opportunities for BC • Low emission hydrogen demand expected to grow from ~1Mt in • Number of ordered VLACs4 has surged, from 21 in 2023 to
Slide 8: Tangible progress on our sustainability roadmap
Tangible progress on our sustainability roadmap 8 material topics in focus of our sustainability roadmap Material topics FY 2027 target Status FY 2024 Comments CO2 emission • Installing solar panels on roof of our China factory Climate n/a intensity: -50% • Reduced number of diesel vehicles in the U
Slide 9: Operational Review
Operational Review Fabrice Billard CEO Half-Year Results Fiscal Year 2024 5 November 2024 9
Slide 10: Systems Division: Sales and profitability growth underpinned by strong operational delivery
Systems Division: Sales and profitability growth underpinned by strong operational delivery Key figures - Systems Division 1HY Change • Strong order intake, up 10.6% vs prior year period (+11.2% FY 2024¹ YoY net of FX effects) − Continued high demand for Hyper Compressors Order 452.8 +10.6% − Demand
Slide 11: Systems Division: Systematic progress on all four pillars
Systems Division: Systematic progress on all four pillars Progress towards our strategic objectives Strategic initiatives (CMD 2022) Progress in 1HY FY 2024 • Strengthened world-leading position in Marine & EVA applications, • Increase market share in core segments STRENGTHEN supported by localizati
Slide 12: Burckhardt Compression entered the low-pressure LNG carrier market with technology differentiation
Burckhardt Compression entered the low-pressure LNG carrier market with technology differentiation BC leader in high-pressure; now entering low pressure New compressor with strong technology differentiation # of high & low pressure LNG carriers ordered • BOG¹ boosting compressor for operation of par
Slide 13: Systematic value engineering approach has proven 15% cost-reduction benefit to MD10 diaphragm compressor
Systematic value engineering approach has proven 15% cost-reduction benefit to MD10 diaphragm compressor Systematic approach for the whole product portfolio Example: MD10-L European standard containerized package Cost baseline 100% Information gathering Creative phase Development 217 ideas from brai
Slide 14: Services Division: Further growth in sales and profitability
Services Division: Further growth in sales and profitability Key figures - Services Division 1HY Change • Order intake down by 5.6% (-5.1% net of FX effects) FY 2024¹ YoY − 3 locations closed in US → focus on higher-margin locations Order − Temporary softening in China 162.3 -5.6% intake − Increasin
Slide 15: Services Division: Systematic progress on all four pillars
Services Division: Systematic progress on all four pillars Progress towards our strategic objectives Strategic initiatives (CMD 2022) Progress in 1HY FY 2024 • Full-service solutions provider • Established customer insight report to monitor installed base, identify STRENGTHEN • Improve installed bas
Slide 16: Performance, reliability and longevity of compressors can be enhanced by collecting data
Performance, reliability and longevity of compressors can be enhanced by collecting data from multiple sources Data from compressor control Direct measurements on compressor PLC 4 4 2 4 2 5 1 3 6 6 PLC Process data: Suction pressure Discharge pressure Input for 1 Temperature 2 Flow 3 Speed Temperatu
Slide 17: New digital service UP! Insight enables maximization of compressor uptime
New digital service “UP! Insight” enables maximization of compressor uptime thanks to real-time compressor monitoring and analytics UP! Insight overview UP! Insight system architecture Key features • A cloud-based monitoring system offering real-time diagnostics & analytics • Analyses & signals to a
Slide 18: Financial Review
Financial Review Rolf Braendli CFO Half-Year Results Fiscal Year 2024 5 November 2024 18
Slide 19: Macroeconomic and geopolitical uncertainties in 1H FY 2024 with limited effects
Macroeconomic and geopolitical uncertainties in 1H FY 2024 with limited effects, demonstrating resilience Global challenges and mitigating actions Challenges Relevance1 Status/mitigating actions Down Stable Up • Raw material prices slightly trending down Inflation • Continue focus on cost-saving mea
Slide 20: Following a year of normalization, order intake is growing again
Following a year of normalization, order intake is growing again Order intake (CHF mn) 1’400 • Total order intake of CHF 615.2 mn, up 5.8% vs prior year period 1’200 Fiscal Year ‒ Up 6.4% net of FX effects First Half ‒ 2nd highest-ever half-year 1’000 800 • Systems Division: up 10.6% to CHF 452.8 mn
Slide 21: Significant growth in sales driven by high order backlog
Significant growth in sales driven by high order backlog Sales (CHF mn) 1’200 • Total sales at CHF 436.8mn, up 7.1% vs prior year period ‒ Up 7.7% net of FX effects 1’000 • Systems Division up 9.2% to CHF 270.6mn 800 ‒ Up 9.9% net of FX effects ‒ Strong sales growth due to high order volume received
Slide 22: Further growth of order intake, sales, gross margin and EBIT
Further growth of order intake, sales, gross margin and EBIT Reported results CHF mn 1HY FY 2024 1HY FY 2023 Change • Gross margin up 2.6pp due to a good factory load, favorable Order intake 615.2 581.3 5.8% product mix in both divisions & realization of project savings Sales 436.8 407.7 7.1% coming
Slide 23: Strong cash flow from operating activities
Strong cash flow from operating activities Cash flow statement CHF mn 1HY FY 2024 1HY FY 2023 • CFO at CHF 64.5 mn, mainly driven by favorable development in net working capital and higher net income Cash Initial Balance 107.2 129.1 Cash Flow from Operating • CFI at CHF -10.9 mn, mainly related to m
Slide 24: Resilient balance sheet
Resilient balance sheet Balance Sheet CHF mn 1HY FY 2024 1HY FY 2023 • Property, Plant & Equipment stable Property, Plant & Equipment 170.0 170.8 • Balance between advance payments from customers, work in Inventories 346.4 334.4 progress (WIP) & advance payments to suppliers remained - Thereof WIP 1
Slide 25: Outlook
Outlook Fabrice Billard CEO Half-Year Results Fiscal Year 2024 5 November 2024 25
Slide 26: Above average value creation thanks to increase of profitability and asset productivity
Above average value creation thanks to increase of profitability and asset productivity in past years RONOA has increased by +20pp in last 5 years 16% Competitor 2 1. EBIT margin FY23 • Continuous profitability (RONOA 30.1%) improvement. Up from 7.4% (FY18) FY21 to 12.4% (FY23) 12% Competitor 1 (RON
Slide 27: FY 2024 guidance confirmed; on track to achieve Mid-Range Plan 2023-2027
FY 2024 guidance confirmed On track to achieve our Mid-Range Plan 2023-2027 FY 2027 financial guidance Sales (CHF) ~1.2 bn Sales: CHF 1.0 – 1.1 bn EBIT margin 12 – 15% Stronger H2 vs H1 due to timing of project deliveries FY 2024 EBIT range1 (CHF) ~144-180 mn guidance EBIT margin: Similar level to F
Slide 28: Half-Year Results Fiscal Year 2024 5 November 2024
Half-Year Results Fiscal Year 2024 5 November 2024 28
Slide 29: Glossary
Glossary • BC Burckhardt Compression • LNG Liquefied natural gas • CMD Capital markets day • MRP Mid-Range Plan • EBIT Earnings before interest and taxes • OBC Other brand compressors • EBT Earnings before taxes • OEM Original equipment manufacturer • EPS Earnings per share • pp Percentage point • E
Slide 30: Half-Year Results Fiscal Year 2024 5 November 2024
Half-Year Results Fiscal Year 2024 5 November 2024 30