Slide 1: Results 2019
Results 2019 Media and Investor Presentation, March 10, 2020 Dr. Norbert Klapper, CEO Kurt Ledermann, CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2019 . March 10, 2020 . Page 2
Slide 3: Rieter Group − Key Messages
Rieter Group − Key Messages 2019 – a year of contrast for Rieter ‒ Low demand for new machines in the first three quarters of 2019, resulting in sales of CHF 760 million, -29% compared to the previous year ‒ As a consequence, EBIT from ongoing business CHF -9.6 million, despite cost reduction implem
Slide 4: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2019 . March 10, 2020 . Page 4
Slide 5: Financial Highlights 2019
Financial Highlights 2019 CHF million In % of Change vs. (except dividend) 2019 sales prior year Comments ‒ Strong fourth quarter 2019 with CHF 401.6 million Order intake 926.1 7% ‒ Book-to-bill ratio of 1.2 ‒ Trade conflict between USA and China, excess capacity in Sales 760.0 -29% spinning mills,
Slide 6: Order Intake by Business Group
Order Intake by Business Group CHF million ‒ Business Group Machines & Systems booked CHF 562.8 million (+20% vs 2018), including orders +7% from Cotton & Textile Industries Holding Company, 926 869 Cairo (Egypt) ‒ Business Group Components with CHF 222.0 million (-15% vs 2018) mainly due to low lev
Slide 7: Sales by Business Group
Sales by Business Group Sales at CHF 760 million due to low order intake since the fourth quarter of 2018 CHF million CHF million -29% -17% 1’075 416 344 760 221 669 168 389 123 107 262 230 144 141 72 69 2018 2019 HY1 2019 HY2 2019 Machines & Systems Components After Sales Results 2019 . March 10, 2
Slide 8: Sales Development by Region
Sales Development by Region CHF million ‒ 2019 as a whole was characterized by the trade conflict between the USA and China, excess -29% 1’075 capacity in the spinning mills as well as political and economic uncertainties in regions of importance to Rieter 434 760 ‒ The market situation described ab
Slide 9: Operating Result Business Groups
Operating Result Business Groups CHF million 2019 2018 Comments ‒ Decrease in operating profitability to -13.1% of sales Machines & Systems -50.8 -9.7 (2018: -1.4%) due to low sales and continuation of innovation program ‒ Decrease in operating profitability to 3.8% of segment sales (2018: 9.3%) due
Slide 10: EBIT
EBIT CHF million 82.4 94.5 84.9 4.9 26.0 1.3 43.2 2018 Disposal Gross margin Research & Selling, general Other income/ 2019 land/buildings development & administrative expenses Ingolstadt expenses expenses Results 2019 . March 10, 2020 . Page 10
Slide 11: Balance Sheet − Key Figures
Balance Sheet − Key Figures Solid financial position at December 31, 2019 – net liquidity of CHF 162.1 million and equity ratio of 47.8% CHF million 31/12/2019 31/12/2018 ‒ High net liquidity position of CHF 162.1 million Liquid funds 285.0 257.1 ‒ Bond issued in 2014 (CHF 100.0 Net liquidity 162.1
Slide 12: Free Cash Flow
Free Cash Flow Free cash flow amounted to CHF 42.3 million in 2019 CHF million 2019 2018 Free cash flow was mainly driven by Net profit 52.4 32.0 the following effects: Depreciation and amortization 38.2 40.9 ‒ Decline in sales volume +/- Change in NWC -15.9 19.8 ‒ Sale of real estate in Ingolstadt
Slide 13: Net Profit and Dividend Proposal
Net Profit and Dividend Proposal The Board of Directors proposes a dividend of CHF 4.50 per share CHF million CHF million 64% 52.4 22.5 21.0 32.0 Net profit 2018 Net profit 2019 Dividend 2018 Dividend 2019 Proposal In % of sales 3.0% 6.9% Dividend per share CHF 5.00 CHF 4.50 EPS in CHF 7.07 11.65 Di
Slide 14: Changes in Workforce
Changes in Workforce Decrease in workforce mainly a result of the low volumes and cost saving measures in 2019 FTE1 -17% 5’745 611 4’755 -11% 164 5’134 4’591 2018 2019 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including temporary employees Results 2019 . March 10, 20
Slide 15: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2019 . March 10, 2020 . Page 15
Slide 16: Market Sentiment in 4th Quarter 2019 Continued in 2020
Market Sentiment in 4th Quarter 2019 Continued in 2020 Market sentiment by country Asian countries ‒ Uzbekistan ‒ Pakistan ‒ Bangladesh ‒ Others China India Turkey North and South America Europe Africa Results 2019 . March 10, 2020 . Page 16
Slide 17: Cotton & Textile Industries Holding Company, Cairo (Egypt)
Cotton & Textile Industries Holding Company, Cairo (Egypt) Cotton & Textile Industries Holding Company signed contracts related to the modernization program for the Egyptian textile industry: ‒ Total volume of contracts sums up to around CHF 210 million, including contracts signed at ITMA 2019 in Ba
Slide 18: Rieter CAMPUS Winterthur
Rieter CAMPUS Winterthur ‒ Rieter applied for a building permit for the Rieter CAMPUS at the end of 2019 ‒ The Rieter CAMPUS comprises a new Customer and Technology Center as well as an administration building ‒ The Board of Directors of Rieter Holding Ltd. has decided to start construction work on
Slide 19: Exhibition ITM in Istanbul, June 2-6, 2020
Exhibition ITM in Istanbul, June 2-6, 2020 Results 2019 . March 10, 2020 . Page 19
Slide 20: Outlook
Outlook ‒ As already reported, Rieter expects sales and earnings in the first half of 2020 to be significantly below the prior year level ‒ The positive market sentiment in the fourth quarter of 2019 has continued in the first two months of 2020; hence sales and operating results in the second half
Slide 21: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever
Slide 22: Appendix
Appendix Results 2019 . March 10, 2020 . Page 22
Slide 23: Order Intake by Business Group
Order Intake by Business Group CHF million Difference in (unaudited) 2019 2018 Difference local currency Rieter 926.1 868.8 7% 7% Machines & Systems 562.8 468.3 20% 21% Components 222.0 260.1 -15% -14% After Sales 141.3 140.4 1% 1% CHF million Difference in (unaudited) HY2 2019 HY1 2019 Difference l
Slide 24: Sales by Business Group
Sales by Business Group Difference in CHF million 2019 2018 Difference local currency Rieter 760.0 1 075.2 -29% -29% Machines & Systems 389.0 669.3 -42% -42% Components 230.2 262.3 -12% -11% After Sales 140.8 143.6 -2% -2% CHF million Difference in (unaudited) HY2 2019 HY1 2019 Difference local curr
Slide 25: Sales by Regions
Sales by Regions 2019 2018 Difference Difference in CHF million local currency Rieter 760.0 1 075.2 -29% -29% Asian countries1 293.5 433.9 -32% -32% China 136.7 148.6 -8% -6% India 99.9 146.2 -32% -31% Turkey 66.8 154.8 -57% -57% North and South America 105.8 108.6 -3% -3% Europe 41.2 47.3 -13% -12%
Slide 26: Change in Sales
Change in Sales Machines & Components After Sales Rieter CHF million Systems Sales 2018 669.3 262.3 143.6 1 075.2 Volume and price -278.2 -29.3 -2.5 -310.0 Currency translation -2.1 -2.8 -0.3 -5.2 Sales 2019 389.0 230.2 140.8 760.0 Results 2019 . March 10, 2020 . Page 26
Slide 27: Financial Key Figures
Financial Key Figures CHF million FY 2019 HY2 2019 HY1 2019 FY 2018 Order Intake 926.1 547.8 378.3 868.8 Sales 760.0 343.9 416.1 1 075.2 EBITDA 123.1 104.8 18.3 84.1 EBITDA margin (of sales) 16.2% 30.5% 4.4% 7.8% EBIT 84.9 86.1 -1.2 43.2 EBIT margin (of sales) 11.2% 25.0% -0.3% 4.0% Net profit 52.4
Slide 28: Net Working Capital
Net Working Capital CHF million 31/12/2019 31/12/2018 Inventories 182.9 186.6 Trade receivables 68.2 80.2 Other current receivables 31.1 53.9 Trade payables -68.9 -96.3 Advance payments -69.3 -58.6 Other current liabilities -151.5 -165.5 Net working capital -7.5 0.3 Results 2019 . March 10, 2020 . P
Slide 29: Return on Net Assets (RONA)
Return on Net Assets (RONA) RONA of 10.0% in 2019 CHF million 31/12/2019 31/12/2018 2019 Change Liquid funds 285.0 257.1 +27.9 Inventories and receivables 282.2 320.7 -38.5 Non-current assets 415.8 424.5 -8.7 Total assets 983.0 1 002.3 -19.3 Current liabilities (excl. debt) -289.7 -320.4 +30.7 Non-c
Slide 30: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 31/12/2019 30/06/2019 31/12/2018 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 514 331 4 496 338 4 480 956 Average shares (of period) 4 496 460 4 489 378 4 514 846 Share price (
Slide 31: Financial Calendar
Financial Calendar Annual General Meeting 2020 April 16, 2020 Semi-Annual Report 2020 July 16, 2020 Publication of sales 2020 January 27, 2021 Deadline for proposals regarding the agenda of the Annual General Meeting February 19, 2021 Results press conference 2021 March 9, 2021 Annual General Meetin