Slide 1: Half-Year Results 2017
Half-Year Results 2017 . . . . presentation, Investor . . . . July . 20, . 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO . . . . . . Joris Gröflin, Group CFO. . . . . . . . . . . . . . . . . . .
Slide 2: Main Messages HY1 2017
Main Messages HY1 2017 • Order intake in the first half of 2017 increases by 26% compared to the second half of 2016 • Sales in the first half of 2017 reaches 415.2 million CHF, compared to 436.9 million CHF in the same period last year • EBIT of 16.0 million CHF and net profit of 10.9 million CHF a
Slide 3: Agenda
Agenda 1. Introduction and summary HY1 2017 Dr. Norbert Klapper 2. Financial results HY1 2017 Joris Gröflin 3. Outlook Dr. Norbert Klapper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Half-Year Results 2017 3
Slide 4: HY1 2017: Key Messages Today
HY1 2017: Key Messages Today Demand picks up in the first half of 2017 Order intake (Million CHF) • Order intake in first half year with 26% growth against second semester 2016 +26% 511 495 • Increasing demand as of March 413 • Order backlog reaches 545 million 395 CHF1 and extends into 2018 (23% gr
Slide 5: Sales Development by Region
Sales Development by Region Solid sales in India and China Million CHF • Lower sales to Asian countries (Bangladesh and 508 Vietnam). Order intake significantly above HY1 38 2016 sales level (Central Asia) 437 25 Africa 415 • China below previous year’s sales level – order Europe 16 5 41 16 intake s
Slide 6: Strategic Focus
Strategic Focus Rieter continues to work on achieving the mid-term targets Boosting innovative Expanding the after-sales Increasing profitability: capability: business: • Continued high R&D • Target to achieve growth of • Cost savings in Winterthur activities with 22.8 million 30% by 2018 (vs. 127.5
Slide 7: Acquisition of SSM Textile Machinery on June 30, 2017
Acquisition of SSM Textile Machinery on June 30, 2017 Transaction highlights • Rieter acquires 100% of SSM from Schweiter Technologies AG • Investment in adjacent fields of the textile value chain • SSM is a global technology leader with a strong global brand • SSM generates an attractive EBITDA mar
Slide 8: Business Rationale
Business Rationale SSM is an attractive addition to Rieter’s business • Industry focus – adjacent segments of the textile value chain • Premium position – strong global brand • Technology base – winding operations on Rotor/Air-Jet machines • Customer overlap – integrated textile manufacturers • Mana
Slide 9: Opportunities in Short-Staple Spinning
Opportunities in Short-Staple Spinning Potential: Technology and innovation • Precision winding offers Automatic Winder differentiation potential in Rotor- and Air-jet spinning Spinning Preparation Fiber Preparation • Customer benefits in downstream process steps: - Dyeing - Weaving Scheme: Short-st
Slide 10: Agenda
Agenda 1. Introduction and summary of HY1 2017 Dr. Norbert Klapper 2. Financial results HY1 2017 Joris Gröflin 3. Outlook Dr. Norbert Klapper .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Half-Year Results 2017 10
Slide 11: Rieter – Financial Overview HY1 2017
Rieter – Financial Overview HY1 2017 Orders received substantially above sales Million CHF HY1 2017 Change vs. HY1 2016 Orders 26% growth vs. HY2 2016 thanks to a positive 495.2 -3% received contribution of all business groups Machine & Systems and After Sales on last years level – Sales 415.2 -5% C
Slide 12: Rieter – Financial Key Figures
Rieter – Financial Key Figures EBITDA margin at 8.4% of sales Million CHF HY1 2017 HY2 2016 HY1 2016 FY 2016 Order Intake 495.2 394.5 510.7 905.2 Sales 415.2 508.1 436.9 945.0 EBITDA 34.8 61.4 34.4 95.8 EBITDA margin (of sales) 8.4% 12.1% 7.9% 10.1% EBIT 16.0 40.8 15.7 56.5 EBIT margin (of sales) 3.
Slide 13: Orders by Business Group
Orders by Business Group Strong demand as of March 2017 Million CHF • Rebound: Business Group Machines & Systems with 325.2 million CHF orders received 31% 700 higher than HY2 2016 (-5% vs. HY1 2016, -5% in local currencies) 600 +26% • Positive: Business Group After Sales with 511 495 77.7 million C
Slide 14: Sales by Business Group
Sales by Business Group Machines & Systems and After Sales on previous half-year’s level Million CHF • 39% of sales from After Sales (17%) and Components (22%); 61% of sales from Machines 700 & Systems 600 -5% • Stable: Business Group Machines & Systems with 508 255.1 million CHF sales 500 (-1% vs.
Slide 15: Operating Results (EBIT)
Operating Results (EBIT) EBIT margin at 3.9% of sales Million CHF HY1 HY2 HY1 • EBIT profitability slightly improved 2017 2016 2016 • Cost savings from Winterthur improved Machines & profitability of Machines & Systems to -3.8 15.7 -12.1 -1.5% of sales (HY1 2016: -4.7%) Systems • Good performance at
Slide 16: Net Profit and RONA
Net Profit and RONA Net profit margin at 2.6% In % of sales 2.5% 6.2% 2.6% • Financial result at -2.1 million CHF (HY1 2016: -1.8 million CHF) Million CHF • Income tax at -3.0 million CHF (HY1 2016: -2.9 million CHF) 50 45 • Earnings per share at 2.39 CHF 40 -1% (HY1 2016: 2.42 CHF) 35 32 • RONA on
Slide 17: Changes in Workforce
Changes in Workforce Year-on-year increase of total workforce Temporaries • Fix employees affected mainly by integration of 10.2% 11.1% 11.1% in % SSM Textile Machinery and reduction in Winterthur FTE1 • Slight increase in temporaries compared to year- 6.000 5884 5641 5649 end due to increasing volu
Slide 18: Impact of SSM Textile Machinery Acquisition
Impact of SSM Textile Machinery Acquisition Half-year balance sheet includes provisional opening balance sheet of SSM 30/06/ • Transaction cost of 1.9 million CHF (thereof Million CHF (provisional values) 1.3 million CHF in 2017) 2017 • Purchase price allocation will lead to additional Assets 117.6
Slide 19: Balance Sheet
Balance Sheet Continued strength after 100.2 million CHF cash used for acquisition of SSM Million CHF 30/06/ 31/12/ 30/06/ Net liquidity change vs. December: 20171 2016 2016 • Acquisition of SSM of 100.2 million CHF Total assets 1 009.0 998.1 987.1 • Dividend of 22.6 million CHF (5.00 CHF per share)
Slide 20: Net Working Capital
Net Working Capital Increase of net working capital to 46.6 million CHF • Temporary increase driven by higher Million CHF 30/06/ 31/12/ 30/06/ inventories and trade receivables 20171 2016 2016 compared to year-end and SSM with 5.6 million CHF Inventories 201.9 163.2 210.7 Trade receivables 82.8 59.4
Slide 21: Capital Expenditures/D&A
Capital Expenditures/D&A Capital expenditures below depreciation/amortization level Million Capital Expenditures Depreciation & Amortization CHF 25 25 20 21 20 20 19 19 7 7 15 15 7 7 0 1 11 1 1 10 10 5 3 8 5 5 1 10 3 5 5 0 5 8 4 6 6 2 3 0 1 0 HY1 2016 HY2 2016 HY1 2017 HY1 2016 HY2 2016 HY1 2017 Mac
Slide 22: Free Cash Flow
Free Cash Flow Free cash flow impacted by NWC increase and acquisition HY1 HY1 • Free cash flow before acquisition is Million CHF mainly affected by temporary increase 2017 2016 in net working capital at June 30, 2017 Net profit 10.9 11.0 • Free cash flow of -125.6 million CHF in Interest and tax ex
Slide 23: Agenda
Agenda 1. Introduction and summary of HY1 2017 Dr. Norbert Klapper 2. Financial results HY1 2017 Joris Gröflin 3. Outlook Dr. Norbert Klapper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Half-Year Results 2017 23
Slide 24: Strategic Focus
Strategic Focus Rieter is the world’s leading supplier of short staple spinning systems offering the full range of machines, parts and components • Creating customer value through • system expertise • innovative solutions • after sales excellence • global presence • Generating profitable growth and
Slide 25: Outlook
Outlook • In the first half year, demand for components, spare parts and services was stable and order intake for new machines increased. • Despite the still low visibility, Rieter assumes that demand will develop at the level of the first half year in the coming months. • The acquisition of SSM Tex
Slide 26: Strategic Focus – Mid-Term Targets
Strategic Focus – Mid-Term Targets Sales Sales growth above market EBIT margin1 ~10% RONA2 ~14% Target pay-out ratio of at least Dividend policy 40% of net profits 1 At sales of ~1.3 CHF billion 2 RONA is calculated as net result before interest costs and write-off of financial assets divided by net
Slide 27: 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 28: Appendix
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Half-Year Results 2017 28
Slide 29: Values and Principles
Values and Principles Half-Year Results 2017 29
Slide 30: Board of Directors
Board of Directors Michael Pieper Bernhard Jucker Hans-Peter Schwald Carl Illi Member of the BoD Chairman of the BoD Member of the BoD Member of the BoD Member of the NC/RC Member of the AC/NC/RC Member of the AC Peter Spuhler This E. Schneider Roger Baillod Luc Tack Member of the BoD Vice Chairman
Slide 31: Group Executive Committee
Group Executive Committee Dr. Norbert Klapper Serge Entleitner Jan Siebert Carsten Liske Joris Gröflin Thomas Anwander Chief Executive Officer Head Business Group Head Business Group Head Business Group Chief Financial Officer General Counsel and Components Machines & Systems After Sales Company Sec
Slide 32: Key Data per Share
Key Data per Share Rieter registered shares of CHF 5 nominal value Bloomberg: RIEN SW; Thompson Reuters: RIEN.S 30/06/2017 31/12/2016 30/06/2016 Shares outstanding excl. own shares 4 528 326 4 515 015 4 518 063 (end of period) Average shares (of period) 4 523 565 4 515 861 4 515 519 Share price (end
Slide 33: Change in Sales and Currency Impact
Change in Sales and Currency Impact Main impact on sales from lower volume and price at Components Million CHF Machines & After Sales Components Rieter Group Systems Sales HY1 2016 256.9 70.7 109.3 436.9 Volume and price -0.8 -0.5 -18.8 -20.1 Currency translation -1.0 -0.1 -0.5 -1.6 Sales HY1 2017 2