Feintool International Holding Ag · SIX:FTON
Feintool International — H1 2016 Earnings Presentation
33 slides from Feintool International's earnings presentation, Aug 23, 2016
Slide 1: Feintool-Group Half-Year Result Conference – 23 August 2016
Feintool-Group Half-Year Result Conference – 23 August 2016
Slide 2: Agenda
AGENDA Key developments Heinz Loosli Financial results Thomas Bögli Outlook Bruno Malinek Questions and answers Lunch and discussions Presentation growth area Forming Heinz Loosli/Knut Zimmer Detailed on-site tour Forming Conclusion, farewell and depart Half-Year Media Conference Fei
Slide 3: Key developments
Heinz Loosli Key developments
Slide 4: Feintool in the first half-year 2016
FEINTOOL IN THE FIRST HALF-YEAR 2016 Growth path continued: very good half-year results Sales increased in first half-year by 14.3% to CHF 278,5 million Currency-adjusted sales growth 9.8% Market and competitive environment remains attractive, low oil prices and interest rates are helping to s
Slide 5: Market environment
MARKET ENVIRONMENT Changes benefit Feintool Positive development in the automotive sector in our most important sales markets General reluctance to invest amongst SMEs. A lack of willingness to invest, globalization and often difficult succession planning are leading to a concentration on a few
Slide 6: Highlights - System Parts segment
HIGHLIGHTS - SYSTEM PARTS SEGMENT Successful development in forming Ohrdruf, Obertshausen and Nashville focused on cold forming components for the drive train Setting into operation a highly modern, powerful servo transfer press in Ohrdruf The nominations for the additional capacity of this ma
Slide 7: Highlights - System Parts USA segment
HIGHLIGHTS - SYSTEM PARTS USA SEGMENT New generation of gear boxes as growth driver Sales in Nashville doubled within two years Most advanced operation of its kind in the USA Nominations for additional growth received; the necessary capacities will be available from 2017 Half-Year Media Confer
Slide 8: Highlights - System Parts USA segment
HIGHLIGHTS - SYSTEM PARTS USA SEGMENT Feintool supplies for all large OEMs Jeep 8-gear Dodge transmission Cadillac Chevrolet Jeep 9-gear Chrysler transmission Land Rover Ford Continuous variable trans- Chevrolet mission (CVT) Half-Year Media Conference Feintool-Group, 23 August 201
Slide 9: Highlights - System Parts Europe segment
HIGHLIGHTS - SYSTEM PARTS EUROPE SEGMENT 20.4% growth Above-average growth thanks to new products for reduction of CO2 emission Optimization and refocusing of our production plant in Lyss on track Factory in Lyss reaches break-evenold CHF 6 Mio. invested in optimization and expansion of the
Slide 10: Highlights - System Parts Asia segment
HIGHLIGHTS - SYSTEM PARTS ASIA SEGMENT Position in Asia determined Production plant in Taicang (CN) achieves a break-even result for the first time Significant nominations in China have been acquired Decision for the expansion of the production area for new orders In addition, alignment to C
Slide 11: Highlights - Fineblanking Technology segment
HIGHLIGHTS - FINEBLANKING TECHNOLOGY SEGMENT Innovation impresses Weakness of Euro has been largely compensated thanks to optimization programs at Swiss locations Innovative FeinMonitoring as standard of each delivered press; intended for increase in customer loyalty and increase of sale through
Slide 12: Financial Results
Thomas Bögli Financial Results
Slide 13: Net sales
NET SALES 14. 3% growth Net sales of CHF 278.5 m Net sales in % CHF 11.0 m translational currency differences have a 9% Asia positive impact 58% 33% USA Europe System Parts segment realizes 87% of Group’s net sales and drives growth Sales performance +14.3% 300'000 Strong growth in Europe an
Slide 14: EBITDA
EBITDA EBITDA increased 30.7% EBITDA of CHF 37.0 m EBITDA in % EBITDA margin increased to Asia 13.3%, highest value since the 13% 46% USA IPO in 1998 42% Europe System Parts segment reached EBITDA margin of 15.4% EBITDA Swiss manufacturing sites 40'000 +30.7% strongly improved compared to la
Slide 15: EBIT
EBIT EBIT margin jumped up to 7.7% EBIT of CHF 21.4 m EBIT in % EBIT growth of 45.9% Asia USA with highest profit share 42% 11% USA New factory in Oelsnitz (DE) with 47% Europe CHF 1.5 m loss due to high cost related to future growth EBIT 30'000 20'000 +45.9% 10'000 0 06/12 06/13 06/14 06/15
Slide 16: Net result
NET RESULT Net profit margin increased to 5.0% of net sales in m CHF 25 Net profit CHF 13.9 m 21. 4 Very low financial expenses due to 20 -1.3 15 13. 9 currency exchange -6.2 gains net of CHF 10 0.5 m Tax rate slightly above 5 30% 0 EBIT Financial Taxes Net income expenses net Feintool Group H
Slide 17: Fineblanking Technology
FINEBLANKING TECHNOLOGY Sales growth of 11.5% Sales of CHF 44.4 m Net sales in m CHF EBIT: CHF 2.1 m (margin: 4.8%) 60 Operational improvements start to 40 Net Sales IC show results 20 Net Sales Third 0 Order entry at CHF 43.0 m HY 2015 HY 2016 Order backlog of CHF 42.9 m EBIT secures work
Slide 18: System Parts
SYSTEM PARTS EBIT margin substantially increased Net sales increased to CHF Net Sales 242.1 m 250 in m CHF Sales growth +14.2% 200 EBIT CHF 22.7 m; margin at 150 9.4%; growth of 34.3% HY 2015 HY 2016 High initial cost for future growth EBIT continue in m CHF / % of Net Sales 30.0 9.4% 10.0%
Slide 19: Balance sheet
BALANCE SHEET Total assets increased by 5.1% Assets 30. 06.2016 31. 12.2015 in m CHF in m CHF Difference in m CHF Total assets of CHF 448.9 m Cash and cash equivalents 24. 5 31. 6 -7.1 Net working capital Trade and other receivables 99. 8 83. 5 16. 3 increased by CHF Inventories / Net assets of
Slide 20: Balance sheet
BALANCE SHEET Solid balance sheet Liabilities 30. 06.2016 31. 12.2015 Difference Pension liabilities in m CHF in m CHF in m CHF (IAS 19) increased Interest bearing liabilities 44. 7 42. 6 2. 1 by CHF 14.2 m to Pension liabilities 76. 8 62. 6 14. 2 CHF 76.8 m Other liabilities 123. 5 113. 8 9. 7
Slide 21: Shareholders' equity
SHAREHOLDERS’ EQUITY Pension liabilities influenced equity 225 in m CHF Operational result +13.9 very positive (CHF 220 13.9 m) Unchanged dividend of CHF 6.7 m 215 -6.7 -0.9 210 Very strong impact 207. 9 of the revaluation of +0.2 203. 9 the pension liabilities (IAS 19) 205 -10.5 200 31. 12.15
Slide 22: Cash flow
CASH FLOW Positive Free Cash Flow despite high capital expenditures Operational cash flow at CHF Liquid funds & 23.9 m in m CHF confirmed open credit lines Investments of CHF 21.2 m 140 120 Liquid funds and confirmed open credit lines add up to 100 CHF 104.7 m 80 New private placement of EUR
Slide 23: Employees
EMPLOYEES Growth needs more personnel 31. 12.2015 30. 06.2016 2,225 employees, strong increase in Asia Switzerland Switzerland Asia Europe 18% of workforce 364 243 393 248 located in 600 670 Switzerland 843 914 63 young people as trainees USA USA Europe Europe Half-Year Result Conference Feint
Slide 24: Outlook
Bruno Malinek Outlook
Slide 25: Organizational changes
ORGANIZATIONAL CHANGES Bruno Malinek will be CEO as of 01 September 2016 Professional background Head of System Parts of Feintool Group since 01 September 2015 2001–2015 ElringKlinger AG: Division manager 1999–2001 WMU GmbH: Plant manager Training Dipl.-Eng. Mechanical engineering Toolmake
Slide 26: Adjusted guidance
ADJUSTED GUIDANCE Continuation of positive business development Increase of guidance assuming unchanged exchange rates 2016: 10% sales growth to CHF 555 million expected Ebit margin of 7.5% New medium-term goal of CHF 800 million sales with 8% Ebit margin Half-Year Media Conference Feintool-
Slide 27: Expectations for the second half-year 2016
EXPECTATIONS FOR THE SECOND HALF-YEAR 2016 Buoyant automotive market on-going USA is again expecting sales of 17.8million vehicles* No significant influence of growth slow-down in China expected Europe on stable, good level Brexit has not had any noticeable impact on Feintool *Source: IHS St
Slide 28: Outlook
OUTLOOK Key projects Focus on global purchasing optimization Expansion of Oelsnitz in connection with relocations Additional new applications to reduce CO2 emissions in processing Development of the market segment for simpler applications with the help of a best- cost location in Eastern Eur
Slide 29: Strategic focal points
STRATEGIC FOCAL POINTS Expanding horizons Continuation of focus strategy fineblanking and forming Expansion of development competency in System Parts together with fineblanking technology Continuation of vertical integration and globally utilizing the potential of regional innovations Furthe
Slide 30: Agenda
AGENDA Next dates 25. October 2016 Results 3rd quarter 08. March 2017 Balance sheet media conference 25 April 2017* General Assembly * Provisional date Half-Year Media Conference Feintool-Group, 23 August 2016 30
Slide 31: Questions and answers
Feintool-Group Questions and answers
Slide 32: Thank you for your attention
Feintool-Group Thank you for your attention
Slide 33: Disclaimer
DISCLAIMER Feintool is confirming its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for t
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