Bystronic Ag · SIX:BYS
Bystronic — Conzzeta — H1 2020 Earnings Presentation
36 slides from Bystronic's earnings presentation, Aug 7, 2020
Slide 1: 1HY 2020 Results Presentation & Transformation Update
1HY 2020 Results Presentation & Transformation Update August 7, 2020
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
Slide 3: Agenda
Agenda • Transformation & business update Michael Willome, Group CEO Page 4 • Financial results Kaspar W. Kelterborn, Group CFO Page 19 • Priorities and outlook 2020 Michael Willome, Group CEO Page 25 • Q&A Page 27 • Appendix Page 29 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transform
Slide 4: Conzzeta results summary H1 2020
Conzzeta results summary H1 2020 Continued strategy execution within unprecedented pandemic environment Impact from pandemic with notable differences at segment level • Comparable1) net revenue CHF 576.2 m, -16.2% • Impact on Bystronic muted by solid order book going into H1, FoamPartner and Mammut
Slide 5: Group transformation plan towards strategic focus on Bystronic
Group transformation plan towards strategic focus on Bystronic Preparations largely finalized – tactical adjustments on timing 2019 2020 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Today Divestment Schmid Rhyner Signing Closing Create and / or Strategic select best suitable Divestment Mammut evaluation Closing
Slide 6: Sheet Metal Processing Bystronic
Sheet Metal Processing Bystronic
Slide 7: Sheet Metal Processing: Market lockdowns resulting in significant order volatility
Sheet Metal Processing Market lockdowns resulting in significant order volatility CHF m 1HY20 1HY19 % Operational performance • Comparable net revenue -12.0% Net revenue 372.6 448.6 -16.9% • Business activities impacted by travel restrictions Operating result 27.9 57.8 -51.8% and temporary closure o
Slide 8: Sheet Metal Processing: Pushing product innovation and market coverage
Sheet Metal Processing Pushing product innovation and market coverage Modularity and flexible automation as enablers of client productivity Product and software launches Cutting • ByStar Fiber 15 kW • ByStar Fiber 6225 & 8025 (large formats) • BySmart Fiber 8 kW & 10 kW New digital client engagement
Slide 9: Sheet Metal Processing: Strategy and organizational development on track
Sheet Metal Processing Strategy and organizational development on track The strategy will be developed further … … with additional elements Regional differentiation while keeping strong central functions Best people Increased focus on Value creating growth Business excellence service across all Bran
Slide 10: Chemical Specialties FoamPartner
Chemical Specialties FoamPartner Schmid Rhyner
Slide 11: Successful sale of Schmid Rhyner – FoamPartner with automotive exposure
Chemical Specialties Successful sale of Schmid Rhyner – FoamPartner with automotive exposure CHF m 1HY20 1HY19 % Operational performance Net revenue 122.8 181.4 -32.3% • Comparable net revenue -20.2% Operating result 1) • EBIT including divestment gain of CHF 49.8 1.7 8.6 -80.1% (EBIT) • Decline acr
Slide 12: FoamPartner with progress in modernization and optimization
Chemical Specialties FoamPartner with progress in modernization and optimization New Converting Center in Duderstadt • High degree of automation with productivity gain of ~20% • Enhanced capacity to grow in technical foam solutions New warehouse in Changzhou • Insourcing to eliminate external costs
Slide 13: Innovative pipeline of sustainable foam products and solutions
Chemical Specialties Innovative pipeline of sustainable foam products and solutions Mobility Specialties RegiSeal® e-Thermo RegiSeal® TN & Aqua Mileage range increase Low-emission sealing for of electric cars equipment & machines Mobility Living & Care OBoNatureTM EvoPoreHRC® Vehicle interior based
Slide 14: Outdoor Mammut
MAMMUT SWISS1862 Mammut
Slide 15: Disrupting impacts in complex supply chain – growth of digital business
Outdoor Disrupting impacts in complex supply chain – growth of digital business CHF m 1HY20 1HY19 % Operational performance Net revenue 80.9 117.9 -31.4% • Comparable net revenue -29.1% Operating result • Decline across regions; dominant physical -23.3 -5.3 340.5% channels closed for ~40 days; digit
Slide 16: Selected initiatives to strengthen business resilience
Outdoor Selected initiatives to strengthen business resilience Further enhance focus on DTC business Reorganize set-up in international markets • Notable shift in client behavior with impact • New office in Schanghai opened and plan to on channel mix consolidate regional Hong Kong office in H2 • Gro
Slide 17: Growing digital reach
Outdoor Growing digital reach Monthly sales (CHF, 3m moving avg) 2'500'000 2'000'000 1'500'000 1'000'000 500'000 0 Mar Sep Sep Sep Sep Dec Dec Dec Dec Mar Jun Jun Mar Jun Mar Jun Mar Jun 2016 2017 2018 2019 2020 • Web shop available in 19 markets • Added outlet functionality in April • YoY performan
Slide 18: Agenda
Agenda • Transformation & business update Michael Willome, Group CEO Page 4 • Financial results Kaspar W. Kelterborn, Group CFO Page 19 • Priorities and outlook 2020 Michael Willome, Group CEO Page 25 • Q&A Page 27 • Appendix Page 29 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transform
Slide 19: 1HY 2020 Key figures
1HY 2020 Key figures (in CHF m) 1HY20 1HY19 % Disposal of Glass Processing segment in H1 2019 and Schmid Rhyner business Net revenue 576.2 770.1 -25.2% unit in H1 2020 Operating result (EBIT) 49.9 90.5 -44.9% • Divestment gains CHF 30.6 m in 2019 2 adjusted 1.8 59.9 -97.0% 0.3% 7.6% -730 bp and CHF
Slide 20: Group Net revenue: Lower client activities across segments and adverse FX trends
Group Net revenue Lower client activities across segments and adverse FX trends (in CHF m) 1HY 2019 770.1 Volume -124.7 -16.2% and price Change in scope -5.1% -38.9 FX -3.9% -30.3 translation 1HY 2020 576.2 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transformation Update 20
Slide 21: Group EBIT: Impacts partly mitigated by cost savings
Group EBIT Impacts at EBIT level partly mitigated by cost savings (in CHF m) 59.9 30.6 Divestment gain 1HY 2019 Adjusted EBIT margin 7.6% Volume and product mix -86.0 Personnel expenses 9.0 OpEx & depreciation 19.6 Change in Scope & FX -0.7 translation 48.1 Divestment gain 1HY 2020 1.8 Adjusted EBIT
Slide 22: Group Cash position
Group Cash position Lower OPFCF and return of excess liquidity after sale of Schmid Rhyner (in CHF m) +69 +12 -40 -13 -87 -5 301 Operating free cash flow CHF -40.2 m 238 Free cash flow CHF +29.0 m YE Operating Change Net investments Acquisitions Dividends Other, incl. Mid 2020 2019 cash flow in NWC
Slide 23: Actions launched swiftly in March to mitigate adverse impacts
Actions launched swiftly in March to mitigate adverse impacts CHF ~40 m cost savings by YE 2020 under muted H2 recovery scenario • Daily monitoring of liquidity Cash • Cash management initiatives on both, asset and liability side • At this point, no major credit losses • ~1’500 employees affected by
Slide 24: Agenda
Agenda • Transformation & business update Michael Willome, Group CEO Page 4 • Financial results Kaspar W. Kelterborn, Group CFO Page 19 • Priorities and outlook 2020 Michael Willome, Group CEO Page 25 • Q&A Page 26 • Appendix Page 28 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transform
Slide 25: Priorities and outlook for 2020
Priorities and outlook for 2020 We further mitigate the impact from the pandemic and initiated a ´rightsizing´ program • Implement ´Cash, Cost, Complexity´ program with cost savings of CHF ~40 m by YE • Start to structurally reduce cost base and to re-allocate resources • Minimize lockdown related o
Slide 26: Agenda
Agenda • Transformation & business update Michael Willome, Group CEO Page 4 • Financial results Kaspar W. Kelterborn, Group CFO Page 19 • Priorities and outlook 2020 Michael Willome, Group CEO Page 25 • Q&A Page 27 • Appendix Page 29 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transform
Slide 27: Q&A
conzzeta O&A
Slide 28: Agenda
Agenda • Transformation & business update Michael Willome, Group CEO Page 4 • Financial results Kaspar W. Kelterborn, Group CFO Page 19 • Priorities and outlook 2020 Michael Willome, Group CEO Page 25 • Q&A Page 27 • Appendix Page 29 Zurich, August 7, 2020 | 1HY 2020 Results Presentation & Transform
Slide 29: Completed materiality assessment for Bystronic 'stand-alone'
Sheet Metal Processing Completed materiality assessment for Bystronic ‘stand-alone’ • Bringing the Conzzeta ESG strategy to the next level • Inaugural CO2 footprint assessment for the Niederönz site (scope 1,2,3) to be launched in H2 Bystronic head office and Competence Center Cutting in Niederönz E
Slide 30: FoamPartner 'stand-alone' financial & business profile
Chemical Specialties FoamPartner ‘stand-alone’ financial & business profile Financial profile 1HY20 1HY19 Living & Care Premium comfort foams and core Net revenue 115.8 155.0 constructions for ergonomic EBITDA 7.5 13.5 mattresses and pillows, for POS, 15% 48% e-Commerce and medical institutions. EBI
Slide 31: Half-year results overview
Half-year results overview (in CHF m) 1HY17 2HY17 2017 1HY18 2HY18 2018 1HY19 2HY19 2019 1HY20 Net revenue 623.5 859.3 1'482.8 853.3 928.9 1'782.2 770.1 803.0 1'573.2 576.2 Total revenue 658.6 842.3 1'500.9 875.8 920.8 1'796.7 787.7 791.4 1'579.1 594.2 EBIT 38.3 84.9 123.2 66.3 80.5 146.8 90.5 76.7
Slide 32: Income statement
Income statement (in CHF m) 1HY20 1HY19 Net revenue 576.2 770.1 Inventory and own work capitalized 18.0 17.6 Total revenue 594.2 787.7 Other operating income 53.4 36.6 Material expenses -290.4 -365.8 Personnel expenses -169.4 -198.3 Other operating expenses -118.4 -151.0 Depreciation -19.5 -18.6 Ope
Slide 33: Balance sheet
Balance sheet (in CHF m) 1HY20 1HY19 Cash, cash equivalents and securities 238.2 389.9 Receivables 210.6 264.5 Prepaid expenses and accrued income 23.8 15.5 Inventories 329.2 327.2 Property, plant and equipment 257.1 257.7 Financial assets 68.9 69.0 Intangible assets 27.6 22.1 Short-term liabilities
Slide 34: Cash flow statement
Cash flow statement (in CHF m) 1HY20 1HY19 ▲ Cash flow from operating activities 12.3 56.4 -44.1 before change in net working capital Change in net working capital -39.9 -51.9 12.0 Cash flow from operating activities -27.6 4.5 -32.1 Net investments in property, plant and equipment -13.9 -17.9 4.0 an
Slide 35: Financial calendar
Financial calendar 2020 August 7 Publication of half-year results 2020, incl Conference Call Conzzeta August 11 Roadshow Zurich ZKB September 24 Investora Conference, Zurich Investora October 16 9M Trading Update Conzzeta November 4/5 The Swiss Equity Conference, Zurich ZKB November 19 Swiss Mid Cap
Slide 36: Thank you very much for your interest.
Thank you very much for your interest. Conzzeta Management AG Phone +41 44 468 24 44 Giesshuebelstrasse 45 www.conzzeta.com 8045 Zurich, Switzerland