Gurit Holding Ag · SIX:GURN
Gurit — H1 2013 Earnings Presentation
36 slides from Gurit's earnings presentation, Aug 23, 2013
Slide 1: 1HY 2013 Results Media and Analyst Conference Call
1HY 2013 Results Media and Analyst Conference Call August 23, 2013
Slide 2: Forward-looking statements
This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such statements are made on the bas
Slide 3: Key notes 1HY 2013
Key notes 1HY 2013 Demand and supply overcapacities on the global Wind Energy market created a very difficult environment for Gurit during the last 9 months Very challenging sales decline of -33.7% in 1HY 2013 compared with the same prior-year period due to weak Wind Energy market (Materials and
Slide 4: Summary 1HY 2013
Summary 1HY 2013 Group CHF 129.7 million; -33.7% Composite Materials CHF 109.1 million; -36.7% Net sales Composite Systems and Engineering CHF 20.6 million; -11.9% Operating profit CHF 0.6 million vs. CHF 17.2 million in 1HY 2012 Operating profit margin 0.5% vs. 8.8% a year ago Earnings Result for t
Slide 5: Net Sales development by target markets
Net Sales development by target markets MCHF 140 Wind Energy Aero & Rail Industrial & Marine Gurit Composite materials 120 Growth in material sales to the 100 Wind Energy market has 80 stopped sharply in Q4 2012 60 Stable Aerospace sales 40 Growing sales in Marine and 20 Industrial application
Slide 6: Business Strategy – Delivering the Future of Composite Solutions
Business Strategy – Delivering the Future of Composite Solutions • Benefit from long-term growth recovery in • Comprehensive materials range Wind Energy materials for all global traditional markets and tooling markets • Penetrate new markets for • Grow in other • Exploit organic growth composite mat
Slide 7: Development by Target Markets
Development by Target Markets
Slide 8: Wind Energy
Wind Energy Slide 8 Wind Energy
Slide 9: Wind Energy – Strategy and Achievements
Wind Energy – Strategy and Achievements Strategy GW installed annually* Core materials: move from #2-3 to #1-2 50 45 position with 30-40% market share 40 Carbon prepregs: maintain and expand 35 30 America leading position with shares >60% 25 Asia / Pacific Europe Better utilize prepreg factori
Slide 10: Wind Energy – Results and Outlook
Wind Energy – Results and Outlook Market environment CHFm Wind Energy: Net Sales USA – demand set in again at the end of Q1 300 2013; renewed production tax credit subsidies 250 provide support for 2013 and expected 2014 200 Asia/China – customer concentration, over- 150 capacities with sales, p
Slide 11: Aerospace & Rail
Aerospace & Rail Slide 11 Aero & Rail
Slide 12: Aerospace & Rail – Strategy and Achievements
Aerospace & Rail – Strategy and Achievements Strategy Industry Growth Potential – CHFm Maintain leading position in aircraft interiors 600 Accessible Market and certain structural applications at Airbus 500 Develop position in Boeing and others 400 Attack structural material market for 300 200
Slide 13: Aerospace & Rail – Results and Outlook
Aerospace & Rail – Results and Outlook CHFm Market environment Aero & Rail: Net Sales 80 Aerospace market with steady, single- digit volume growth, cost pressure 60 40 Sales 1HY 2013 20 Net sales of CHF 23.5 million 0 Down 1.7% vs. 1HY 2012 2008 2009 2010 2011 2012 CHFm Aero & Rail: Net Sales
Slide 14: Industrial & Marine
Industrial & Marine Slide 14 Industrial & Marine
Slide 15: Industrial & Marine – Strategy and Achievements
Industrial & Marine – Strategy and Achievements Strategy Marine CHFm Marine Growth Potential 150 Penetrate all geographies and segments Mediterranean, Middle East and Far East All boat sectors incl. commercial, military 100 and production vessels Asia / Pacific North A me rica Europe Strategy
Slide 16: Industrial & Marine – Results and Outlook
Industrial & Marine – Results and Outlook CHFm Industrial and Marine: Net Sales Market environment 90 Marine business recovering gradually with more 80 70 momentum in superyacht and race boats, 60 regionally in Europe and UAE 50 Increasing sales to non-marine customers 40 Australia and New Zea
Slide 17: Tooling
Tooling Slide 17 Tooling
Slide 18: Tooling – Strategy and Achievements
Tooling – Strategy and Achievements Strategy Asia: Leader in affordable, quickly available quality moulds for wind turbine blades Internationally: High quality, custom tailored, affordable, quick and higher-volume mould making partner of choice Penetrate European and American markets Widen s
Slide 19: Tooling – Results and Outlook
Tooling – Results and Outlook Market environment CHFm Tooling: Net Sales Cyclical market fully hit 50 China: almost stand-still in 2HY 2012, 40 slight recovery in 1HY 2013 Pre-acquisition India: No demand 30 Europe: Good demand 20 10 Sales 1HY 2013 0 2009 2010 2011 2012 Net sales of CHF 10
Slide 20: Automotive
Automotive Slide 20 Automotive
Slide 21: Automotive – Strategy and Achievements
Automotive – Strategy and Achievements Strategy Automotive Grow client/project base for car body panels CHFm Size of new Automotive press technology parts market High-temp revolutionary press process for bigger volumes parts series (CBS 200) 120 100 Recent achievements 80 New customer wins, qu
Slide 22: Automotive – CBS 200 high-end product technology to penetrate volume market
Automotive – CBS 200 high-end product technology to penetrate volume market BACKGROUND • best in class carbon fibre composite body panel system featuring an A-class surface finish and lightest possible panel weight • Improvement upon Gurit’s current automotive body panel production process to make i
Slide 23: Automotive – Results and Outlook
Automotive – Results and Outlook CHFm Market environment Automotive: Annual Net Sales 14 Increasing interest of the Automotive 12 market for composite material solutions 10 8 6 Sales 1HY 2013 4 Net sales of CHF 6.9 million 2 0 Up +63.8% vs. 1HY 2012 2008 2009 2010 2011 2012 Outlook FY 2013 CHF
Slide 24: Engineered Structures
Engineered Structures Slide 24 Engineered Structures
Slide 25: Engineered Structures – Strategy and Achievements
Engineered Structures – Strategy and Achievements Strategy Establish Gurit early in new applications in existing and newly emerging or converting industries Leverage leading composites engineering, prototyping, tooling and manufacturing capabilities Assess new industry trends and approach key
Slide 26: Engineered Structures – Results and Outlook
Engineered Structures – Results and Outlook Market environment CHFm Engineered Structures: Net Sales 2 Hardly any existing market data Engineering for marine, construction and new special projects Promote Gurit as expert of complex, big, 1 lightweight structures Sales 1HY 2013 Net sales of C
Slide 27: Financials 1HY 2013 and Outlook FY 2013
Financials 1HY 2013 and Outlook FY 2013
Slide 28: Net Sales Analysis by business units
Net Sales Analysis by business units Sharp drop in Wind Energy related sales but continuous growth in non-wind energy markets Net sales in CHFm Lower demand from Asian and Materials Systems & Engineering American Wind Energy markets 163.1 181.6 195.6 155.4 129.7 significantly impacted net sales
Slide 29: EBIT and Operating profit development
EBIT and Operating profit development Operating profit margin at 0.5% impacted by much lower volume in the Wind Energy market Operating profit (CHFm) EBIT (CHFm) 17.9 17.2 Strong decrease in the operating 13.1 17.9 profit margin vs. 1HY 2012 largely 17.2 due to drop in sales 10.2 -3.3 0.6 Reduce
Slide 30: Operating profit bridge 1HY 2012 to 1HY 2013
Operating profit bridge 1HY 2012 to 1HY 2013 Operating profit margin decreased from 8.8% to 0.5% of net sales mainly due to reduced volume 8.8% 0.5% * Operating profit according to Swiss GAAP FER including non-recurring expenses and impairment Slide 30 Corporate
Slide 31: Exchange result and Tax
Exchange result and Tax Tax charge impacted by un-taxed loss carry forwards Exchange result (CHFm) 0.9 0.5 Exchange result close to nil 0.0 with net gains on USD -0.1 positions offsetting net losses on other currencies -1.6 1HY 2011 2HY 2011 1HY 2012 2HY 2012 1HY 2013 3 1HY 2013 tax expense in m
Slide 32: Net Result 1HY 2013
Net Result 1HY 2013 Small net loss as a result from low sales volumes Consolidated P&L 1HY 2013 1HY 2012 CHFm % NS CHFm % NS Net sales 129.7 100.0% 195.6 100.0% Gross margin 60.5 46.7% 86.4 44.2% Operating expenses -60.7 -46.8% -66.8 -34.1% Operating profit before one-offs -0.2 -0.2% 19.6 10.0% One-
Slide 33: Cash Flow
Cash Flow Cash flow from operating activities remains positive Cash flow from op. activities (CHFm) Consolidated Cash Flow 1HY 2013 1HY 2012 16.8 CHFm CHFm EBIT 0.6 17.2 Depreciation, amortisation, impairment 5.3 9.3 Change in working capital -4.6 -9.1 1.7 Other cash flow from operating activities 0
Slide 34: Balance Sheet
Balance Sheet Still a solid balance sheet with reduced borrowings but increased NWC Consolidated Assets Jun 2013 Dec 2012 CHFm % CHFm % Trade NWC increased Cash and cash equivalents 20.2 9% 37.3 16% from CHFm 84.9 to Trade receivables 69.5 31% 61.1 26% CHFm 88.6 mainly due Inventories 39.0 17% 36.
Slide 35: Outlook and guidance FY 2013
Outlook and guidance FY 2013 Wind Energy market related sales expected to continue to recover Increasing material sales in other existing and new markets Growing Automotive business thanks to additional customer wins and larger car body parts series Net sales for FY 2013 expected to be somew
Slide 36: 1HY 2013 Results Media and Analyst Conference Call
1HY 2013 Results Media and Analyst Conference Call August 23, 2013 Wind Energy Tooling Transportation Marine