Georg Fischer Ag · SIX:GF
Georg Fischer — H1 2020 Earnings Presentation
32 slides from Georg Fischer's earnings presentation, Jul 21, 2020
Slide 1: Mid-Year Report 2020
Georg Fischer Ltd Mid-Year Report 2020 Andreas Müller, Mads Joergensen 21 July 2020
Slide 2: Solid performance in challenging times – building on new opportunities
GF Corporation Solid performance in challenging times – building on new opportunities Sales at CHF 1'528 million (-14% organically) Operating result before one-off items of CHF 64 million (EBIT margin 4.2%) Strong liquidity and robust balance sheet Acceleration of strategic investments despi
Slide 3: Mastering the crisis
GF Corporation Mastering the crisis Strong global footprint Learnings captured from our local Chinese experience Immediate action taken by the pandemic task force – agility pays off Plants qualified as essential industries (e.g. supplies to Medical) Utmost target: safety of employees A big
Slide 4: Focus on innovation and strategy implementation
GF Corporation Focus on innovation and strategy implementation Implementation of strategic initiatives Innovations: water management solutions, lightweight e-vehicle components and laser technologies New plants in construction for GF Piping Modular battery housing Infrared / green femto laser
Slide 5: Diversified global footprint mitigates overall sales decline
GF Corporation Diversified global footprint mitigates overall sales decline (Sales in CHF million) H1 2019 -14% Organic H1 2020 1'915 1'528 -3% 921 845 -28% -21% 521 474 355 328 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 5 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, M
Slide 6: Strong recovery in China
GF Corporation Strong recovery in China Monthly organic sales development H1 2020 – Monthly organic sales development H1 2020 – year-over-year comparison (worldwide) year-over-year comparison (selected countries) 130% 130% 120% 120% 110% 110% 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40%
Slide 7: Solid performance in challenging times
GF Corporation Solid performance in challenging times (EBIT margin in %) Strategic objectives H1 2019 H1 2020 One-offs 12.7 11.1 10~12% 9~10% 8.0 8~10% 7~9% 5.1 4.2 3.9 7.3 3.7 0.3 1.2 -7.6 -9.8 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 7 Mid-Year Report 2020 | 21 July 2020 |
Slide 8: Globally well balanced – building on resilient market segments
GF Piping Systems Globally well balanced – building on resilient market segments Sales of CHF 845 million, organically -3% Negative CHF 50 million FX impact included Operating result at CHF 94 million, EBIT margin of 11.1% Strong global infrastructure business Large number of new orders an
Slide 9: Plants qualified as "essential industries" in many countries
GF Piping Systems Plants qualified as "essential industries" in many countries Monthly organic sales development H1 2020 – year-over-year comparison (GF Piping Systems worldwide) 130% 120% 110% 100% Solutions for water treatment … 90% 80% 70% 60% 50% 40% Jan Feb Mar Apr May Jun … and the constructio
Slide 10: Building on new business opportunities
GF Piping Systems Building on new business opportunities District cooling: major contribution to sustainability Virtual world: connected and close 10 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joergensen
Slide 11: Strategic transformation accelerated – strong headwinds in all regions
GF Casting Solutions Strategic transformation accelerated – strong headwinds in all regions Sales of CHF 328 million, organically -28% Operating result dropped to CHF -25 million before one-offs Aerospace & car markets affected simultaneously Mills River (USA), ramp-up slightly delayed due t
Slide 12: Covid-19 affects top line across the world – gradual recovery started from low base
GF Casting Solutions Covid-19 affects top line across the world – gradual recovery started from low base Monthly organic sales development H1 2020 – year-over-year comparison (GF Casting Solutions worldwide) 130% CLOSED 120% 110% 100% 90% 80% 70% 60% 50% 40% Global car production: -43% in Western Eu
Slide 13: Building on new business opportunities
GF Casting Solutions Building on new business opportunities Technology partnership ZF, hybrid transmission housing Business license Image source: mercedes-benz.com New plant in Shenyang (North China) Structural components for e-cars 13 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joerg
Slide 14: Digitalization and new technologies underline strategy
GF Machining Solutions Digitalization and new technologies underline strategy Sales of CHF 355 million, organically -21%, order intake organically -32% Break-even result in challenging environment Global demand for machine tools at ten-years low Business in China back to previous year's leve
Slide 15: Capital goods spending strongly affected in Europe and North America
GF Machining Solutions Capital goods spending strongly affected in Europe and North America Monthly organic sales development H1 2020 – year-over-year comparison (GF Machining Solutions worldwide) 130% 120% 110% 100% 90% 80% 70% 60% 50% 40% Jan Feb Mar Apr May Jun Aerospace market down to earth due
Slide 16: Building on new business opportunities
GF Machining Solutions Building on new business opportunities Digital services Uniqua Medtech Laser technologies 16 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joergensen
Slide 17: Consolidated financial statements
Mads Joergensen, CFO Consolidated financial statements 17 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joergensen
Slide 18: Sales per division
GF Corporation Sales per division (CHF million) ∆% 1) H1 2020 H1 2019 growth organic growth GF Piping Systems 845 921 -8.3% -3.1% GF Casting Solutions 328 521 -37.0% -27.6% GF Machining Solutions 355 474 -25.1% -21.3% Corporation 1’528 1’915 -20.2% -14.0% 1) Adjusted for changes in scope of consolid
Slide 19: Severe impact from Covid-19 and currencies
GF Corporation Severe impact from Covid-19 and currencies (CHF million) -42 (-2.2%) -346 1′915 (-18.5%) 1′873 +0.2% 4 -42 -87 -4.7% -262 1′528 -14.0% H1 2019 Divestment H1 2019 adjusted Acquisition Currency Organic growth H1 2020 19 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joergens
Slide 20: Asia gaining in importance
GF Corporation Asia gaining in importance (CHF million) Europe 45% Americas 20% (48%) Asia 30% Rest of world 5% (19%)** (27%) (6%) -26.2% 929 (divested) 42 -22.7% -11.8% 686 -19.1%* -6.4%* -14.4% -9.9%* 517 -28.7% 456 -22.4%* 361 887 309 108 77 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019 H1 2020 H1 2019
Slide 21: Headwind from currencies on sales in H1 2020
GF Corporation Headwind from currencies on sales in H1 2020 (CHF million) Per division: Per currency: EUR -28 USD -7 GF Piping Systems -50 CNY -23 GF Casting Solutions -19 TRY -7 GF Machining Solutions -18 Others -22 Corporation -87 Total -87 21 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller,
Slide 22: EBIT and EBIT margin per division
GF Corporation EBIT and EBIT margin per division EBIT CHF million EBIT margin % H1 2020 H1 2020 H1 2019 H1 2020 H1 2020 H1 2019 before one- before one- before one- before one- offs offs offs offs GF Piping Systems 94 94 117 11.1% 11.1% 12.7% GF Casting Solutions -32 -25 20 -9.8% -7.6% 3.9 % GF Machi
Slide 23: Estimated Covid-19 impact H1 2020
GF Corporation Estimated Covid-19 impact H1 2020 (CHF million) Estimated negative impact on sales Estimated negative impact on EBIT GF Corporation ~ -330 GF Corporation ~ -100 GF Piping Systems ~ -80 GF Piping Systems ~ -20 GF Casting Solutions ~ -150 GF Casting Solutions ~ -40 GF Machining Solution
Slide 24: Currency effects weigh on profitability of first half-year
GF Corporation Currency effects weigh on profitability of first half-year (CHF million) Per division: Per currency: EUR -8 USD -9 GF Piping Systems -20 CNY -3 GF Casting Solutions +1 TRY -1 GF Machining Solutions -4 Others -2 Corporation -23 Total -23 24 Mid-Year Report 2020 | 21 July 2020 | Andreas
Slide 25: Income statement
GF Corporation Income statement (CHF million) H1 2020 H1 2019 Sales 1’528 1’915 -20 % Gross value added 554 730 -24 % Personnel expenses -436 -514 -15 % EBITDA 118 216 -45 % Depreciation, amortization -61 -77 -21 % EBIT before one-offs 64 153 -58 % EBIT 57 139 -59 % Financial result -10 -12 - Shar
Slide 26: Assets and liabilities / equity
GF Corporation Assets and liabilities / equity (CHF million) H1 2020 % 2019 % Cash and cash equivalents 773 530 Trade accounts receivable 616 597 Inventories on stock 746 751 Other current assets 131 121 Current assets 2’266 63 1’999 60 Property, plant, and equipment and investment properties 1’114
Slide 27: Free cash flow
GF Corporation Free cash flow (CHF million) H1 2020 H1 2019 EBITDA 118 216 Changes in net working capital -126 -166 Income taxes/interest paid -25 -41 Other changes 30 1 Cash flow from operating activities -3 10 Additions to property, plant, and equipment -70 -80 Additions to intangible assets, othe
Slide 28: Key figures at a glance
GF Corporation Key figures at a glance H1 2020 H1 2019 Net debt in CHF million 420 404 Net debt/EBITDA (multiple) 1.5x 0.9x Equity ratio in % 36.9 40.9 ROIC in % Corporation 5.0 13.8 GF Piping Systems 20.8 25.6 GF Casting Solutions -9.0 2.0 GF Machining Solutions 0.5 14.6 ROIC in % before one-offs 6
Slide 29: Outlook
Andreas Müller, CEO Outlook 29 Mid-Year Report 2020 | 21 July 2020 | Andreas Müller, Mads Joergensen
Slide 30: Outlook full year 2020
GF Corporation Outlook full year 2020 Operating result of H2 – expected at similar level of H1 2020 GF Piping Systems GF Casting Solutions GF Machining Solutions Ongoing resilience Strong business in China Focus on growing market segments – Strong market segments such as Strategic transfor
Slide 31: Thank you!
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Slide 32: Disclaimer
Disclaimer This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment. Neither it nor anything it contains shall form the basis of any contract whatsoever. Opinions expressed herein reflect the