Bystronic Ag · SIX:BYS

Bystronic — Conzzeta — FY2016 Earnings Presentation

36 slides from Bystronic's earnings presentation, Mar 21, 2017

1. Slide 1: 2016 Results Presentation

   2016 Results Presentation Zurich, March 21, 2017 Seite 1 2016 Results Presentation, Konzernleitungs-Sitzung vomMarch 9. November 21, 2017 2011 - 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: Agenda

   Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 3 2016 Results Presentation, March 21, 2017

4. Slide 4: Conzzeta 2016 results summary

   Conzzeta 2016 results summary Strong 2nd half-year, as expected Net revenue +15.5% vs 2nd half 2015 with disproportionately high profit contribution Full-year results with accelerated growth and higher profit Net revenue CHF 1’214.3 m, +6.4%  Growth continued businesses +7.2%; comparable1) +2.6% Op

5. Slide 5: Internationalization – consistent action and measurable progress

   Internationalization – consistent action and measurable progress 2016 Net revenue growth Group +6.4% Asia +31.5%  Growth in Net revenue driven by Bystronic and FoamPartner CHF 1’141 m CHF 1’214 m in Asia 223 293  At constant fx-rates and 232 242 excluding change in scope  Group-wide growth +2.6%

6. Slide 6: Striving for leading positions in target markets

   Striving for leading positions in target markets Glass Processing >4’000 people Sheet Metal Processing Net revenue Solutions for architectural & auto- CHF 1’214 m Cutting and bending – motive flat glass processing innovative machinery construction 107.5 9% 220.6 18% 652.8 Chemical Specialties Sporti

7. Slide 7: Sheet Metal Processing – results update

   Sheet Metal Processing – results update CHF m 2016 2015 ∆ Operational performance  First-time consolidation of DNE Laser Net revenue 652.8 570.9 +14.3% and FMG Operating  Very strong momentum in 2HY16 63.0 55.4 +13.8% result (EBIT)  Comparable net revenue +7.3%; solid organic growth in Asia and E

8. Slide 8: Bystronic 2017 strategy execution: World class manufacturing

   Bystronic 2017 strategy execution: World class manufacturing Drive growth initiatives  Market initiatives across regions  Global key account initiatives High performance, Top Line integrated solutions  More effective customer financing program Performance (Industry 4.0 / Deliver innovation and pr

9. Slide 9: Sporting Goods – results update

   Sporting Goods – results update CHF m 2016 2015 ∆ Operational performance  DACH region with continued Net revenue 233.4 235.3 -0.8% competitive pressure, notable change in Operating consumer behavior and subdued 1.2 0.1 - weather conditions result (EBIT)  Net revenue decline in DACH region of EBIT

10. Slide 10: Strategic initiatives launched in January 2016

    Strategic initiatives launched in January 2016 Multichannel Management & digitalization  Improved floor space management (retail and wholesale)  Monitoring of client trends to steer collection  Expand online channel Internationalization  Defined priority locations for strategic growth  Expand n

11. Slide 11: Multichannel management & digitalization

    Multichannel management & digitalization Wholesale  Remains most important sales channel  Need to increase floor performance in close cooperation with wholesale partners  In 2016, prepared wholesale excellence program: 2017 pilot on new cooperation model with 15 selected partners Retail  Launch

12. Slide 12: Internationalization

    Internationalization Sales & marketing organization Sustained international growth  Opened regional office in Hong Kong Delivered high single-digit Net revenue  Product development and sourcing growth outside DACH over past 5 years,  Sales organization “on the ground” despite substantial adverse

13. Slide 13: Client centricity

    Client centricity Mammut is “Absolute Alpine”  In 2016, launched new collections for backpacking / hiking, freeriding; for 2017, prepared relaunch of flagship collection „Eiger Extreme“ and designed „Mammut inspired by Engadin“ for more urban use  Introduced a new avalanche airbag system  Prepare

14. Slide 14: Chemical Specialties – results update

    Chemical Specialties – results update CHF m 2016 2015 ∆ Operational performance  Revenue performance supported by Net revenue 220.6 204.5 +7.9% acquisition of Hydra Sponge; comparable net revenue +4.2% Operating 23.1 18.5 +24.9%  Growth in Asia and the Americas; result (EBIT) Europe flat EBIT marg

15. Slide 15: Chemical Specialties operating in attractive market segments

    Chemical Specialties operating in attractive market segments Mobility Acoustic and thermal Strengthen regional FoamPartner solutions with applications platforms with focus North e.g. for automotive, railway, America and Asia Net revenue 2016 marine or aerospace by segment Specialties Customized solu

16. Slide 16: Glass Processing – results update

    Glass Processing – results update CHF m 2016 2015 ∆ Operational performance  Weaker results in automotive glass after Net revenue 107.5 119.9 -10.3% exceptionally strong PY Operating  Growth in architectural glass in Americas 1.0 6.4 -83.9% and Asia more than offset by slow-down result (EBIT) in E

17. Slide 17: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 17 2016 Results Presentation, March 21, 2017

18. Slide 18: Consolidated income statement

    Consolidated income statement (in CHF m) 2016 2015 ∆ % Net revenue 1'214.3 1’140.8 +6.4 ∆ Inventory and own work capitalized 0.8 -2.3 Total revenue 1'215.1 100% 1’138.5 100% +6.7 Cost of materials -574.2 -540.6 Personnel expenses -304.1 -283.6 Other operating expenses -221.7 -205.0 Depreciation -30.

19. Slide 19: Development of Net revenue driven by M&A and organic growth

    Development of Net revenue driven by M&A and organic growth (in CHF m) 2015 1’140.8 Volume +2.6% +29.2 and price Net impact from Change in +3.4% +38.4 spin-off Plazza scope and acquisitions FX +0.4% +5.9 translation 2016 1’214.3 Page 19 2016 Results Presentation, March 21, 2017

20. Slide 20: Net revenue by reporting segment

    Net revenue by reporting segment – Sheet Metal Processing and Chemical Specialties as platforms for growth 800 +14.3% +7.3% ∆ % reported ∆ % comparable1) 600 652.8 570.9 400 -0.8% +7.9% -2.9% +4.2% -10.3% 200 235.3 233.4 -11.2% 204.5 220.6 119.9 107.5 0 Sheet Metal Sporting Goods Chemical Glass Proc

21. Slide 21: Improved EBIT-margin from continued operations despite higher restructuring costs

    Improved EBIT-margin from continued operations despite higher restructuring costs and efforts to drive growth (in CHF m) 2015 reported 80.8 7.1% Discontinued -4.9 operations 2015 continued 75.9 6.7% +4.1 restructuring Volume and product mix +25.7 Incl. restructuring Personnel costs. Approx. 40 % -13

22. Slide 22: Group result

    Group result (in CHF m) 2016 2015 Operating result (EBIT) 84.4 6.9% 80.8 7.1% Financial result1) 0.5 - -2.7 -0.2% Extraordinary result - - -0.6 -0.1% Taxes -21.0 -1.7% -18.2 -1.6% Group result 63.9 5.3% 59.3 5.2% Attributable to Conzzeta shareholders 60.2 5.0% 59.3 5.2% Attributable to minority inte

23. Slide 23: Continuing operations with improved performance

    Continuing operations with improved performance Spin-off of Real Estate business (Plazza) as of June 26, 2015  Net revenue of CHF 9.4 m and EBIT of CHF 4.9 m Acquisitions with net revenue impact of CHF 48 m  Bergschule Uri, Switzerland, as of June 1, 2015  Hydra Sponge in Washington, Missouri USA

24. Slide 24: Second half-year 2016 shows progress vs previous year

    Second half-year 2016 shows progress vs previous year and very strong catch-up vs first half-year 2016 1HY 2HY 1HY 2HY (in CHF m) 2015 2015 2015 2016 2016 2016 Net revenue 543.7 597.1 1'140.8 524.6 689.7 1'214.3 Total revenue 553.6 584.9 1'138.5 544.9 670.2 1'215.1 Operating result (EBIT) 36.5 44.3

25. Slide 25: Cash flow statement

    Cash flow statement 2016 2015 ∆ abs. Cash flow from operating activities before change 88.0 82.7 +5.3 in net working capital Change in net working capital 8.0 4.1 +3.9 Cash flow from operating activities 96.0 86.8 +9.2 Net investments in property, plant -22.9 -19.5 +3.4 and equipment and intangible

26. Slide 26: NWC – liquidity position impacted by reclassification of cash deposits

    Operating free cash flow driven by business growth and good management of NWC – liquidity position impacted by reclassification of cash deposits (in CHF m) +8 -20 +80 -21 +88 -63 -13 470 411 Operating free cash flow CHF 76.0 m (+CHF 5.5 m) Free cash flow CHF +92.9 m 2015 Operating Change in Capex (n

27. Slide 27: Balance sheet

    Balance sheet (in CHF m) 2016 2015 Cash, cash equivalents and securities 519.8 540.8 Receivables 211.3 176.2 Prepaid expenses and accrued income 6.6 6.3 Inventories 239.5 227.6 Property, plant and equipment 199.4 202.5 Financial assets 70.4 59.3 Intangible assets 8.4 9.0 Short-term liabilities 269.3

28. Slide 28: RONOA at 15.6% driven by further improved capital efficiency

    RONOA1) at 15.6% driven by further improved capital efficiency Return on net operating assets (RONOA) 500 13.4% 80 15.6% 400 60  Avg. NOA of CHF 407.4 m or 33.5% of Total revenue, reflecting Plazza spin-off and improved operating efficiency 300  Net working capital (NWC) of CHF 216.2 40 m, down to

29. Slide 29: Earnings per registered share A and dividend proposal

    Earnings per registered share A and dividend proposal Earnings per share (CHF) Dividend 2015 and Dividend proposal 2016 (CHF) 28.65 29.10 27.02 Pay-out ratio 35% 38% 11.00 10.00 2015 2016 2015 32%1) 2016 61%1) 35%1) 38%1) Based on continuing activities Dividend proposal 2016 of CHF 11 consistent wit

30. Slide 30: Agenda

    Agenda Michael Willome  Group result & business update Group CEO Kaspar W. Kelterborn  Financial results Group CFO Michael Willome  Priorities & outlook Group CEO  Q&A  Buffet lunch Page 30 2016 Results Presentation, March 21, 2017

31. Slide 31: 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

32. Slide 32: Conzzeta priorities & outlook for 2017

    Conzzeta priorities & outlook for 2017  Conzzeta with innovative product portfolio & financial strength  Consistent strategy execution with long-term perspective  CEO agenda remains unchanged 1. Market orientation 2. Operational excellence 3. People development 4. Internationalization  Driving p

33. Slide 33: Appendix

    Appendix Page 33 2016 Results Presentation, March 21, 2017

34. Slide 34: Bystronic glass operating in a market with growth potential

    Bystronic glass operating in a market with growth potential Market drivers and market structure Accessible market ~CHF 2 bn with ~45%  Increasing requirements in regard to in Asia; Bystronic glass with #5 market energy efficiency and noise reduction position  Stable growth trend in architectural m

35. Slide 35: Bystronic glass adjusting organization to better meet client demand

    Bystronic glass adjusting organization to better meet client demand Net revenue by region1) Net revenue trend; CHF m 150 CAGR -3.0% 24% Decline in 100 41% Europe and 50 Asia, partly Europe offset by Americas growth in 35% Asia / Pacific 0 Americas 2011 2016 Net revenue by business segment1) B’One. 

36. Slide 36: Conzzeta AG

    Conzzeta AG Giesshuebelstrasse 45 CH-8045 Zurich www.conzzeta.com Phone +41 44 468 24 44 investor@conzzeta.com Seite 36 2016 Results Presentation, Konzernleitungs-Sitzung vomMarch 9. November 21, 2017 2011 - Robert Suter

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