Sulzer Ag · SIX:SUN
Sulzer — H1 2024 Earnings Presentation
19 slides from Sulzer's earnings presentation, Jul 26, 2024
Slide 1: Midyear Results 2024
Midyear Results 2024 Dr. Suzanne Thoma | Executive Chairwoman Thomas Zickler | CFO
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements, including but not limited to, projections of financial developments, market activities or future performance of products and solutions, containing risks and uncertainties. These forward-looking statements are subject to change base
Slide 3: Highlights H1 2024
Highlights H1 2024 Sulzer Strategy 2028 implementation underway: ▪ Further Order Intake growth after strong 2023 ▪ Sales growth and stringent cost management ▪ 11.4% profitability: +130bps compared to H1 2023 ▪ Strong increase of gross margins: +140bps 3
Slide 4: Financials H1 2024
Financials Click H1 2024 to add title Thomas Zickler | CFO 4
Slide 5: Order intake above 2bn & strong sales growth
Order intake above 2bn & strong sales growth Order intake | In CHFm Sales | In CHFm +8.9% 2’079 +10.5% 1,992 ▪ Order intake 1’699 Strong growth momentum in all three divisions 1,602 ▪ Order intake margin plus 120bps ▪ Sales All divisions contributing to the growth Note: All growth rates (%) adjusted
Slide 6: Continued profitable growth on track for guidance
Continued profitable growth on track for guidance Operational Profit | In CHFm ROCE | In CHFm 11.4% 17.3% 17.3% 194 10.1% 162 ▪ Operational profitability Increased sales, improved gross margin and operational excellence ▪ ROCE stable despite FX gains on assets EBIT increase offset by assets revaluat
Slide 7: Growth and excellence momentum lead to increased profitability (Flow)
Growth and excellence momentum lead to increased profitability Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Flow +6.3% +11.2% 848 1’389 825 712 Op Profitability ▪ Orders Strong market momentum in Water and Industrial 663 +250bps ▪ Sales 9.5% 7.0% Solid execution of backlog in
Slide 8: Continued double-digit growth in both Order Intake and Sales (Services)
Continued double-digit growth in both Order Intake and Sales Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Services +12.6% 701 +12.0% 663 593 Op Profitability ▪ Orders 558 AME and APAC with double-digit growth +0bps 14.2% 14.2% ▪ Sales All regions contributed to growth ▪ Operat
Slide 9: Orders above 500m with strong profitability increase (Chemtech)
Orders above 500m with strong profitability increase Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Chemtech +8.3% 529 +7.2% Op Profitability ▪ Orders 505 395 +150bps Large orders in biopolymers and carbon capture 381 ▪ Sales 13.2% 11.7% Solid execution and strong commercial mom
Slide 10: Strong operational profit drives EBIT and Net Income
Strong operational profit drives EBIT and Net Income EBIT | In CHFm Net Income | In CHFm +18.7% 170 ▪ EBIT increase driven by +16.7% • Higher sales from solid backlog execution 151 +35.5% 117 • Better gross margin supported by Sulzer excellence improvements 104 ▪ Only minor one-off items in 2024 Not
Slide 11: Solid Free Cash Flow despite increased NWC
Solid Free Cash Flow despite increased NWC Free Cash Flow | In CHFm Net Working Capital | In CHFm 740 725 107 ▪ Positive operating net cash flow in all Divisions supported by high profit levels ▪ Higher CAPEX and tax payments 55 ▪ NWC decreased to 21.9% as percentage of sales (2023: 22.2%) ▪ Absolut
Slide 12: Sulzer Strategy & Outlook
Sulzer Click 2028 to add – title Strategy & Outlook Dr. Suzanne Thoma | Executive Chairwoman 12
Slide 13: Sulzer makes crucial processes and infrastructure better
Sulzer makes crucial processes and infrastructure better In all 3 divisions, Sulzer: Flow ▪ Enables demanding transport, storage and treatment of fluids and gases Services ▪ Removes contamination and pollution, separates and purifies substances ▪ Improves critical infrastructure and keeps it running
Slide 14: Capex trend indicates long-term growth across end-markets
Capex trend indicates long-term growth across end-markets Global capex development 2010-2035 (real values, in USD trillion) 40 2024 30 Energy, power Structurally growing markets, 20 Other industries including oil and gas Metals, mining 10 Chemicals, pharma Water, wastewater 0 2010 2020 2030 2035 Not
Slide 15: Guinness World Record: World's largest wastewater treatment plant
Guinness World Record: World’s largest wastewater treatment plant Sulzer solutions help treat 7.5 million m3 of water per day to support Egypt’s food security 15
Slide 16: Increased 2024 guidance for Order Intake and Sales
Increased 2024 guidance for Order Intake and Sales Order Intake Sales EBITA Margin 9 to 12% 9 to 11% 12% Updated Guidance around Guidance 02/2024 up 2–5% up 6–9% around 12% These forward-looking statements are subject to change based on known or unknown risks and various other factors, which could c
Slide 17: On track for ambition 2028
On track for ambition 2028 ▪ We are growing in all three divisions and all geographies ▪ Half year results manifest early successes of Sulzer 2028 ▪ Sulzer on track to be a top industrial company with a high quality and future proof business Sulzer 2028 is founded in ▪ Organic Growth and higher valu
Slide 18: Q&A session
Click to add title Q&A session
Slide 19: Thank you for your attention
Click to add title Thank you for your attention