Georg Fischer AG · SIX:GF
Georg Fischer — Investor Presentation (July 2005)
68 slides from Georg Fischer's investor presentation, July 2005
Slide 1: Georg Fischer Corporation
Georg Fischer Corporation Corporate Presentation 2005
Slide 2: Contents
Contents 1 Adding Quality to People’s Lives 3 2 Values 8 3 Corporate survey 19 4 Core businesses 31 5 Value through growth 56 July 2005 Corporate Presentation 2005-e 2
Slide 3: Georg Fischer: Adding Quality to People's Lives
Part 1 Georg Fischer: Adding Quality to People’s Lives July 2005 Corporate Presentation 2005-e 3
Slide 4: Adding Quality to People's Lives: Precision, Mobility, Comfort
Adding Quality to People’s Lives Precision Mobility Comfort We make your journey We bring you We shape your pleasant and safe clean water daily lives July 2005 Corporate Presentation 2005-e 4
Slide 5: Mobility
Adding Quality to People’s Lives We make your journey pleasant and safe. As people become increasingly mobile, they also demand more comfort and safety from the vehicles they use. Mobility With its highly stressable cast parts made of light-metal and iron, GF Automotive makes it possible to build li
Slide 6: Comfort
Adding Quality to People’s Lives We bring you clean water. The reliable supply of clean water represents one of the biggest challenges of this century. GF Piping Systems meets this worldwide demand for drinking water and enables the safe transport of liquids and gases for industry, building technolo
Slide 7: Precision
Adding Quality to People’s Lives We shape your daily lives. The manufacture of high-quality Precision consumer goods and components requires the highest precision and sophisticated technologies during production. The necessary moulds and tools are produced using machines and system solutions from GF
Slide 8: Values
Part 2 Values July 2005 Corporate Presentation 2005-e 8
Slide 9: Responsibility to all stakeholders
Responsibility to all stakeholders How we achieve sustainability, credibility and esteem. Our goal is the long-term prosperity of the company. We act in the interests of all our stakeholders. Our responsibility is to strike a balance between all these demands. July 2005 Corporate Presentation 2005-e
Slide 10: Responsibility to all stakeholders: our principles
Responsibility to all stakeholders Our principles We are a source of strength for our customers. We are a source of benefits for people all over the world. We are a demanding and supportive employer. We create value for our shareholders. We are socially committed. July 2005 Corporate Prese
Slide 11: We are a source of strength for our customers
“We are a source of strength for our customers” As a reliable partner, we answer our customers’ needs with innovative solutions and competitive products, and in doing so we set industrial standards. July 2005 Corporate Presentation 2005-e 11
Slide 12: We are a source of benefits for people all over the world
“We are a source of benefits for people all over the world” We help the people who use our products every day to satisfy their need for mobility, comfort and precision. July 2005 Corporate Presentation 2005-e 12
Slide 13: We are a demanding and supportive employer
“We are a demanding and supportive employer” We offer our employees interesting work, enable them to develop their skills, challenge them to exploit their entrepreneurial potential and reward them for excellence - and all of this in a culture of mutual trust and respect. July 2005 Corporate Presenta
Slide 14: We create value for our shareholders
“We create value for our shareholders” Our pursuit of a strategy focused on profits and growth and our commitment to a high standard of management, corporate governance and communications not only ensure an appropriate yield on invested capital, but also earn us widespread esteem. July 2005 Corporat
Slide 15: We are socially committed
“We are socially committed” We support the communities in which we live and contribute to the common good. We use natural resources sparingly and observe internationally accepted ethical standards in everything we do. July 2005 Corporate Presentation 2005-e 15
Slide 16: Common values and principles: leadership
Common values and principles Principles of leadership Manage by teamwork and objectives Promote self-reliance Engender trust Communicate Make changes wherever necessary Develop employees Encourage and acknowledge good performance Solve conflicts Form efficient teams Set an example July 2005 Corporat
Slide 17: Common values and principles: communication
Common values and principles Principles of communication Actively, honestly and timely Credibility is the main goal Employees come first Communication is a major management task Open, face-to-face discussions are the backbone of communication July 2005 Corporate Presentation 2005-e 17
Slide 18: Common values and principles: sustainability
Common values and principles Principles of sustainability Take an active part in protecting the environment Comply with legal regulations Strive for ongoing improvements Minimise adverse environmental impact of products and processes Protect natural resources Motivate and train all employees Encoura
Slide 19: Corporate Survey
Part 3 Corporate Survey July 2005 Corporate Presentation 2005-e 19
Slide 20: Focused on three core businesses
Focused on three core businesses Corporate sales 2004: CHF 3.54 billion GF Automotive No. 1 in Europe, technology leader worldwide 49% 28% GF Piping Systems One of the world‘s leading suppliers of piping systems made of plastic or metal. GF Machine Tools Global leader in EDM, tooling and automation;
Slide 21: GF is growing and becoming more profitable
1st half 2005: Growth trend confirmed “GF is growing and becoming more profitable. We’re on the right track.” Kurt E. Stirnemann CEO Georg Fischer July 2005 Corporate Presentation 2005-e 21
Slide 22: 1st half 2005: growth trend confirmed
1st half 2005: growth trend confirmed Key figures Jun05 Jun04 Highlights Groups Sales 1 852 1 767 GF Automotive EBIT 122 *83 • Sales + 4.6% • EBIT margin increased to 6.2% Net profit 76 51 Net debt 765 882 GF Piping Systems Corporation highlights • Sales + 3.2% • EBIT margin increased to 8.7% • Sale
Slide 23: Close to the customer around the globe
Close to the customer around the globe 12,000 employees 140 sites including 50 production facilities 30 countries Employees in 2004 by region Asia/other regions 10% (+7%) America 5% (+2%) Europe 85% (-9%) End-2004 July 2005 Corporate Presentation 2005-e 23
Slide 24: 2004 sales: regional breakdown
2004 sales: regional breakdown America Last year’s figures in brackets 9% (9%) Switzerland 4% (4%) Asia/others 11% (11%) Germany 43% (44%) Europe 80% (80%) Rest of Europe 26% (25%) UK 3% (3%) Austria 4% (4%) July 2005 Corporate Presentation 2005-e 24
Slide 25: Strong presence in China
Strong presence in China All 3 Groups with production sites 1) CHF 239 million in sales Sales growth in local currency: 32% 1 304 employees at 18 sites 9 production facilities CHF million 300 Sales 250 200 150 100 • GF Automotive 50 • GF Piping Systems 0 • GF Machine Tools 2000 2001 2002 2
Slide 26: Key figures: Corporation 2004
Key figures: Corporation 2004 CHF million 2004 2003 ∆ Order intake 3 730 3 385 10% Sales 3 540 3 257 9% Orders on hand at year-end 897 799 12% EBITDA 348 282 23% EBIT before special charges 180 96 88% Special charges 9 -192 n.a. EBIT 189 -96 n.a. Net profit/(loss) 94 -147 n.a. July 2005 Corporate Pr
Slide 27: Key figures: Corporation 2004
Key figures: Corporation 2004 CHF million 2004 2003 ∆ Net debt 725 926 -22% Free cash flow 193 197 -2% 1) Return on sales (EBIT margin) % 5.1 2.9 +76% Employees at year-end 12 324 13 247 -7% 1) Before special charges July 2005 Corporate Presentation 2005-e 27
Slide 28: Sales: Corporation
Sales: Corporation CHF million 5,000 4,500 3 903 3 848 4,000 3 417 3 257 3 540 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2000 2001 2002 2003 2004 At year-end Corporation (excl. Coperion) Coperion July 2005 Corporate Presentation 2005-e 28
Slide 29: Operating profit: Corporation
Operating profit: Corporation CHF million % 500 8 6.8 450 7 400 5.1 6 350 300 5 267 4.1 250 4 2.9 180 200 3 156 2.3 150 80 96 2 100 50 1 0 0 2000 2001 2002 2003 1) 20041) 1) Before special charges At year-end EBIT ROS (EBIT margin) July 2005 Corporate Presentation 2005-e 29
Slide 30: Core Businesses
Part 4 Core Businesses July 2005 Corporate Presentation 2005-e 30
Slide 31: GF Automotive
GF Automotive Pioneering technology development Steering knuckle BMW X5 partner and manufacturer of highly stressable cast components and systems in iron and light metal for the automotive industry. Key figures 2004: Sales: CHF 1.74 bn EBIT: CHF 101 m 5,900 employees 13 production facilities in Germ
Slide 32: GF Automotive – main product groups
GF Automotive – main product groups Chassis Axle Steering Brake Subframe Powertrain Engine parts Transmission housing Body/Structure A, B and C columns Centre console, dashboards Doors Roofs July 2005 Corporate Presentation 2005-e 32
Slide 33: Everything from a single source
Everything from a single source Research & Iron casting Light-metal casting development Sand casting Chill casting Die casting July 2005 Corporate Presentation 2005-e 33
Slide 34: Partner of leading brands
Partner of leading brands Selection of customers July 2005 Corporate Presentation 2005-e 34
Slide 35: Customer segmentation
Customer segmentation 2004 sales: CHF 1.74 bn Non-Automotive: CHF 97 m Trucks: CHF 419 m Cars: CHF 1 224 m July 2005 Corporate Presentation 2005-e 35
Slide 36: Porsche Cayenne - more cast components per vehicle
Porsche Cayenne - more cast components per vehicle Iron casting Aluminium sand casting Aluminium chill casting Aluminium die casting July 2005 Corporate Presentation 2005-e 36
Slide 37: VW Golf: more cast components per vehicle
VW Golf: more cast components per vehicle Iron casting Aluminium sand casting Aluminium die casting ? July 2005 Corporate Presentation 2005-e 37
Slide 38: Strategy for GF Automotive: more GF parts per vehicle
Strategy for GF Automotive: more GF parts per vehicle More cast components per vehicle • Full range of solutions • Substitution of forged and sheet metal components by iron and light-metal castings Expansion in China Focus on assembly-ready components July 2005 Corporate Presentation 2005-e 38
Slide 39: GF Piping Systems
GF Piping Systems Leading supplier of piping systems made of plastic and metal. Applications-driven system solutions and high-quality components for transporting water, iFit adapter gas and other liquids in industrial applications, utilities business and domestic installations. Global market presenc
Slide 40: GF Piping Systems market
GF Piping Systems market We supply the market for water transport and water treatment with integrated systems solutions and comprehensive advice from one source all over the world. Industrial water treatment Drinking water distribution Piping systems for the complete water cycle Water supplies Water
Slide 41: We provide best water quality
We provide best water quality Sensors and instruments for Plastic piping systems with Automated valves industrial process control pipes, fittings and valves July 2005 Corporate Presentation 2005-e 41
Slide 42: Customer segmentation
Customer segmentation 2004 sales: CHF 818 m Domestic installations: CHF 204 m Industrial systems and automation: CHF 352 m Water and gas supply: CHF 262 m July 2005 Corporate Presentation 2005-e 42
Slide 43: A wide variety of industrial applications
A wide variety of industrial applications Chemical Semiconductor processes industry Life science Shipbuilding Water treatment Food & beverages July 2005 Corporate Presentation 2005-e 43
Slide 44: Building installation systems
Building installation systems Drinking water Pre-wall and Floor heating systems flushing systems Complete systems for more comfort - easy to install, economical and durable July 2005 Corporate Presentation 2005-e 44
Slide 45: Water and gas supply
Water and gas supply Water Gas distribution distribution Cost-effective, safe and reliable solutions July 2005 Corporate Presentation 2005-e 45
Slide 46: GF Piping Systems – in touch with market trends
GF Piping Systems – in touch with market trends Growing global need for clean water Metal and glass piping increasingly replaced by plastic Rising high-purity needs in semi- conductor, life sciences and food industries Liberalisation and consolidation of water utilities market Burj Al Arab J
Slide 47: Strategy for GF Piping Systems: capitalize on global need for water
Strategy for GF Piping Systems: capitalize on global need for water Expand applications in pharmaceutical, medical and food sectors (Industry) Grow with the global demand for water (Utility) Expand Building Technology Geographical expansion (Eastern Europe, Asia) July 2005 Corporate Presenta
Slide 48: GF Machine Tools
GF Machine Tools Leading global supplier of machines and system solutions for producing moulds and tools and for manufacturing precision components.High-precision tools and moulds provide a vital competitive advantage for mass production of high-quality consumer goods. Key figures 2004 Sales: CHF 97
Slide 49: Customer segmentation
Customer segmentation 2004 sales: Tooling, automation & Sales 978 m system software: CHF 69 m HSM & standard milling machines: CHF 156 m Electric discharge machines: CHF 489 m Service and disposable material: CHF 264 m July 2005 Corporate Presentation 2005-e 49
Slide 50: GF Machine Tools – main product groups
GF Machine Tools – main product groups Electric discharge machines High-speed milling machines (EDM) (HSM) Automation, tooling, components & service July 2005 Corporate Presentation 2005-e 50
Slide 51: Product and technology offering
Product and technology offering HSM EDM Automation & tooling Growing need for precision and automation in the tool and mould making industry Automation & tooling Wire-cutting EDM HSM blow moulds Automation, tooling & reference systems Service HSM Automation, tooling & workpiece Die-sinking EDM chang
Slide 52: Product and technology offering
Product and technology offering HSM EDM Automation & tooling Growing need for precision and automation in the tool and mould making industry Automation & tooling EDM biopsy & arthroscopy instruments EDM implants: plates and screws EDM implants: intervertebral disc HSM evaporation flaps HSM electrode
Slide 53: GF Machine Tools – in touch with market trends
GF Machine Tools – in touch with market trends Increased demand for durable consumer goods & frequent model changes Rising precision requirements Trend towards miniaturization and micro/nanotechnology Growing focus on process automation July 2005 Corporate Presentation 2005-e 53
Slide 54: Strategy for GF Machine Tools: expansion in China
Strategy for GF Machine Tools: expansion in China Strengthen technological leadership Further develop system supplier approach Rapid expansion in Chinese growth market July 2005 Corporate Presentation 2005-e 54
Slide 55: Value through growth
Part 4 Value through growth July 2005 Corporate Presentation 2005-e 55
Slide 56: GF strategy: value through organic growth
GF strategy: value through organic growth 2007 growth target ROS (EBIT margin) of 8% Sales of CHF 4 billion in existing structures Strengthen presence in growth markets (Asia, eastern Europe) Finance through operational cash flow July 2005 Corporate Presentation 2005-e 56
Slide 57: Value through organic growth examples
Value through organic growth 3 examples July 2005 Corporate Presentation 2005-e 57
Slide 58: Cooling - Growth with innovation
Value through growth: example 1 Cooling - Growth with innovation July 2005 Corporate Presentation 2005-e 58
Slide 59: Main market: food and beverages industry
Main market: food and beverages industry Distribution Piping System in Cool-Fit down to -37°C Machine room: “Cold Generation” Plastic fittings/valves July 2005 Corporate Presentation 2005-e 59
Slide 60: Cool-Fit
Cool-Fit Innovative solution for refrigeration and cooling systems Customer benefits: Top quality saves time and No corrosion money Efficient insulation Global sales potential = CHF 700 million July 2005 Corporate Presentation 2005-e 60
Slide 61: HSM and EDM - Growth in production parts segment
Value through growth: example 2 HSM and EDM - Growth in production parts segment July 2005 Corporate Presentation 2005-e 61
Slide 62: Manufacture of production parts using HSM milling and EDM
Manufacture of production parts using HSM milling and EDM SynCage-LR Artificial intervertebral discs Vertical tail piece Dental implant Surgical plates Medical Aerospace technology industry July 2005 Corporate Presentation 2005-e 62
Slide 63: Manufacture of production parts using HSM milling and EDM
Manufacture of production parts using HSM milling and EDM Compressor wheel for turbocharger High-pressure injection nozzles Engine Automotive technology industry July 2005 Corporate Presentation 2005-e 63
Slide 64: Subframe - Growth with substitution
Value through growth: example 3 Subframe - Growth with substitution July 2005 Corporate Presentation 2005-e 64
Slide 65: Evolutionary growth steps: subframe
Evolutionary growth steps: subframe Conventional welded solution Steel 30 single parts, welded High investment in assets High process costs Hybrid cast solution Light alloy 60% fewer parts 30% less weight Single-part cast solution (GF prototype) Light alloy Only 1 part 40% less weight
Slide 66: Georg Fischer will grow under its own power
Creating value through growth Georg Fischer will grow under its own power. The potential and determination are there. July 2005 Corporate Presentation 2005-e 66
Slide 67: Adding Quality to People's Lives
Adding Quality to People’s Lives Precision Mobility Comfort We make your journey We bring you We shape your pleasant and safe clean water daily lives July 2005 Corporate Presentation 2005-e 67
Slide 68: Disclaimer
Disclaimer This document is for presentation The management of Georg Fischer purposes only and should not be does not accept any liability whatsoever construed as an offer, invitation or with respect to the use of this solicitation to subscribe for, purchase presentation. or sell any investment. Nei