Slide 1: Results 2022
Results 2022 Media and Investor Presentation, March 9, 2023 Dr. Norbert Klapper, Group CEO Kurt Ledermann, Group CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2022 . Media & Investor Presentation . March 9, 2023 Page 2
Slide 3: Rieter Group − Key Messages
Rieter Group − Key Messages ‒ Record sales of CHF 1 510.9 million, EBIT margin of 2.1% despite the challenging environment ‒ Plan to increase profitability ongoing ‒ Order backlog of around CHF 1 540 million as of December 31, 2022, continued high order intake of CHF 1 157.3 million in 2022 ‒ Strate
Slide 4: 2022 Characterized by Four Major Challenges
2022 Characterized by Four Major Challenges CHF million EBIT 4.9% EBIT 2.1% Record sales 1 2 Drastic cost increases for material and logistics 1’511 3 Massive material shortages 969 4 Acquisition of the three businesses Sales Sales 2021 2022 Results 2022 . Media & Investor Presentation . March 9, 20
Slide 5: Development of Gross Profit Year-to-Year
Development of Gross Profit Year-to-Year CHF million 2 Drastic cost increases for material and logistics -78 130 4 Acquisition automatic winding machine business 329 277 Counter measures: Price increases, cost reductions, backlog margin improvements 2021 2022 Delta 2022 Actuals Expected at 2021 Actu
Slide 6: Development of Structural Cost Year-to-Year
Development of Structural Cost Year-to-Year CHF million 1 Record Sales 59 3 Massive material shortages 315 4 Acquisition of the three businesses 256 Counter measures: Alternative technical solutions 2021 Delta 2022 Actuals Actuals Structural cost = R&D expenses plus SG&A Results 2022 . Media & Inves
Slide 7: Action Plan to Increase Profitability
Action Plan to Increase Profitability Execution of backlog ‒ Further progress related to material shortages Mitigate inflation impact ‒ Sales price increases and price adjustment clause implemented ‒ Cost reductions and backlog margin improvements ongoing ‒ Favorable cost development, e.g. in logist
Slide 8: Cost Development
Cost Development Logistic costs are returning to normal. Container Freight Index Shanghai to Rotterdam (in US$) Aluminum (US$/per ton) 2’721 2’431 13’687 1’553 1’620 8’740 2’031 1’808 January January January January January January January January 2020 2021 2022 2023 2020 2021 2022 2023 Source: Worl
Slide 9: Order Backlog at Year-End
Order Backlog at Year-End High order backlog reaches far into 2023/2024. CHF million ‒ Order cancellations 2022 below 10% 1’840 ‒ Backlog margins improved (price increases and cost reductions) 1’540 ‒ Backlog extends into 2023 and 2024 560 2020 2021 2022 Results 2022 . Media & Investor Presentation
Slide 10: Strategy Implementation
Strategy Implementation Acquisition of automatic winding machine business completed in 2022 Successful systems sales: ‒ Seven complete ring- and compact spinning systems, total value around CHF 90 million1 ‒ 15 complete rotor spinning systems, total value around CHF 130 million1 Major digitization m
Slide 11: Market Situation
Market Situation Investment sentiment and operation rate of spinning mills at low levels Operation Rate Spinning Mills1 ‒ Investment sentiment impacted by ITMA 2023 effect (outside China and Türkiye) ‒ Textile consumption expected to pick up in China first ‒ Strong growth of household deposits in 20
Slide 12: ITMA 2023 Innovations on Schedule
ITMA 2023 Innovations on Schedule ‒ Innovative solutions supporting technology leadership ‒ Focus on cost per kg yarn: ‒ Raw material ‒ Energy consumption ‒ Automation ‒ System integration through digitization ‒ Recycling ‒ Investor event on June 12, 2023 Results 2022 . Media & Investor Presentation
Slide 13: Rieter Site Sales Process on Schedule
Rieter Site Sales Process on Schedule ‒ The sales process for the remaining land at the Rieter site in Winterthur (Switzerland) is proceeding according to plan. ‒ In total, around 75 000 m2 of land will be sold. ‒ The Rieter CAMPUS is not part of this transaction. Results 2022 . Media & Investor Pre
Slide 14: Earthquake in Türkiye and Syria
Earthquake in Türkiye and Syria ‒ Rieter conveys deepest condolences to the people of Türkiye and Syria ‒ One Rieter employee among the victims ‒ All other Rieter employees and their families are safe ‒ Two thirds of spinning capacity in Türkiye affected ‒ Priorities: ‒ Put service station of Rieter
Slide 15: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2022 . Media & Investor Presentation . March 9, 2023 Page 15
Slide 16: Financial Highlights 2022
Financial Highlights 2022 CHF million (except dividend) 2022 2021 Comments Order intake 1 157.3 2 225.7 ‒ With -48% as expected below the record year 2021 Sales 1 510.9 969.2 ‒ Sales with +56% significantly above previous year ‒ Gross margin decreased to 21.8% (2021: 28.5%) due to the Gross profit 3
Slide 17: EBIT
EBIT CHF million -19.5 52.5 -39.8 -10.7 2.1 47.6 32.2 2021 Gross profit Research & Selling, general Other income Other expenses 2022 development & administrative incl. CHF 2.4 million expenses expenses transaction costs Results 2022 . Media & Investor Presentation . March 9, 2023 Page 17
Slide 18: Balance Sheet − Key Figures
Balance Sheet − Key Figures CHF million 31/12/2022 31/12/2021 ‒ Increase in net working capital due to build up of inventory and trade receivables Cash and cash equivalents 175.7 248.7 ‒ Increase in current financial debt to fund the Net working capital 26.0 -80.9 working capital increase Non-curren
Slide 19: Free Cash Flow
Free Cash Flow Free cash flow was mainly driven by sales volume. CHF million 2022 2021 ‒ Increase in net working capital (mainly build up of inventories and trade receivables) Net profit 12.1 31.7 Depreciation and amortization 52.8 37.4 +/- Change in net working capital -115.8 86.4 +/- Change in pro
Slide 20: Dividend Proposal
Dividend Proposal CHF ‒ Board of Directors proposal: dividend of CHF 1.50 per share 5.00 ‒ Payout ratio of 56% 4.50 4.00 1.50 0.00 2018 2019 2020 2021 2022 Dividend per Share Results 2022 . Media & Investor Presentation . March 9, 2023 Page 20
Slide 21: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Outlook Results 2022 . Media & Investor Presentation . March 9, 2023 Page 21
Slide 22: Results 2022
Results 2022 Media and Investor Presentation, March 9, 2023 Thomas Oetterli, CEO as of March 13, 2023
Slide 23: Key Priorities
Key Priorities Rieter has everything to stay successful. Area Short-term Mid-term ‒ Execution of backlog ‒ Enhance service offering Top Line ‒ Manage “Türkiye orders” ‒ Enhance Net Promoter Score ‒ Innovation leap at ITMA 2023 ‒ Digital roadmap ‒ Mitigate inflation impact ‒ Product cost value engine
Slide 24: Outlook
Outlook ‒ For the coming months, Rieter expects below-average demand for new equipment at first, with a revival expected in the second half of 2023 after ITMA, the leading trade fair in Milan (Italy). Rieter also believes that demand for consumables, wear & tear parts and spare parts will recover du
Slide 25: Q&A
Q&A Results 2022 . Media & Investor Presentation . March 9, 2023 Page 25
Slide 26: 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 27: Appendix
Appendix Results 2022 . Media & Investor Presentation . March 9, 2023 Page 27
Slide 28: Order Intake by Business Group
Order Intake by Business Group CHF million -48% ‒ Investment sentiment impacted by geopolitical 2’226 uncertainties, higher financing cost, and low consumer spending in important markets ‒ Capacity utilization of spinning mills below normal levels 1’709 1’157 664 296 310 221 183 2021 2022 Machines &
Slide 29: Sales by Business Group
Sales by Business Group Sales conversion in the second half-year of 2022 developed better than expected. CHF million +56% ‒ Expectation of CHF 1 400 million exceeded 1’511 ‒ Progress in material supply debottlenecking 969 1’035 590 304 232 147 173 2021 2022 Machines & Systems Components After Sales
Slide 30: Sales by Region
Sales by Region CHF million +56% ‒ Growth rates show combination of regional shift 1’511 away from China and investment of customers in China to stay competitive 473 +48% 969 169 +25% 319 197 +56% 135 266 +46% 126 182 209 +40% 150 123 14 43 74 2021 2022 Asian countries1 China India Türkiye North and
Slide 31: Workforce Development
Workforce Development FTE1 ‒ Increase due to automatic winding machine business +21% 6’935 ‒ Capacities increase to realize/execute the exceptionally high order backlog 1’306 5’753 846 +15% 5’629 4’907 2021 2022 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including tem
Slide 32: Order Intake by Business Group
Order Intake by Business Group Difference in Difference CHF million 2022 2021 Difference local currency adjusted1 Rieter 1 157.3 2 225.7 -48% -47% -60% Machines & Systems 663.9 1 708.6 -61% -61% -71% Components 310.1 296.0 5% 8% -17% After Sales 183.3 221.1 -17% -16% -31% Difference in CHF million H
Slide 33: Sales by Business Group
Sales by Business Group Difference in Difference CHF million 2022 2021 Difference local currency adjusted1 Rieter 1 510.9 969.2 56% 58% 38% Machines & Systems 1 034.7 590.3 75% 76% 60% Components 303.5 231.5 31% 35% 4% After Sales 172.7 147.4 17% 19% 3% Difference in CHF million HY2 2022 HY1 2022 Di
Slide 34: Sales by Region
Sales by Region 2022 2021 Difference Difference in Difference CHF million local currency adjusted1 Rieter 1 510.9 969.2 56% 58% 38% Asian countries2 472.6 318.7 48% 49% 44% China 168.5 135.3 25% 27% 4% India 196.8 126.0 56% 59% 16% Türkiye 266.1 182.3 46% 48% 44% North and South America 209.2 149.9
Slide 35: Financial Key Figures
Financial Key Figures CHF million FY 2022 HY2 2022 HY1 2022 FY 2021 Order Intake 1 157.3 287.9 869.4 2 225.7 Sales 1 510.9 890.3 620.6 969.2 EBITA 47.0 50.0 -3.0 54.5 EBIT 32.2 42.4 -10.2 47.6 EBIT margin (of sales) 2.1% 4.8% -1.6% 4.9% Net profit 12.1 37.3 -25.2 31.7 R&D expenditure 77.9 42.5 35.4
Slide 36: Net Working Capital
Net Working Capital CHF million 31/12/2022 31/12/2021 Inventories 363.3 249.0 Trade receivables 212.1 122.0 Other current receivables 78.6 83.2 Trade payables -161.8 -117.2 Advance payments -192.7 -211.4 Other current liabilities -273.5 -206.5 Net working capital 26.0 -80.9 Results 2022 . Media & In
Slide 37: Return on Net Assets (RONA)
Return on Net Assets (RONA) CHF million 31/12/2022 31/12/2021 2022 Difference Liquid funds 176.1 249.4 -73.3 Inventories and receivables 654.0 454.2 +199.8 Assets classified as held for sale 13.8 14.7 -0.9 Non-current assets 697.0 718.0 -21.0 Total assets 1 540.9 1 436.3 +104.6 Current liabilities (
Slide 38: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 31/12/2022 30/06/2022 31/12/2021 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 479 635 4 492 731 4 494 024 Average shares (of period) 4 491 246 4 494 683 4 496 214 Share price (
Slide 39: Financial Calendar
Financial Calendar Annual General Meeting 2023 April 20, 2023 ITMA 2023 Investor Event June 12, 2023 Semi-Annual Report 2023 July 20, 2023 Investor Update 2023 October 20, 2023 Publication of sales 2023 January 24, 2024 Deadline for proposals regarding the agenda of the Annual General Meeting Februa