Rieter Holding Ag · SIX:RIEN
Rieter — FY2023 Earnings Presentation
38 slides from Rieter's earnings presentation, Mar 13, 2024
Slide 1: Results 2023
Results 2023 Media and Investor Presentation, March 13, 2024 Thomas Oetterli, Group CEO Oliver Streuli, Group CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Market 03 Next Level 04 Innovations 05 Financials 06 Sustainability 07 Outlook 2024 Results 2023 . Media & Investor Presentation . March 13, 2024 Page 2
Slide 3: Key Messages
1 Key Messages Results 2023 . Media & Investor Presentation . March 13, 2024 Page 3
Slide 4: Rieter Group – Key Messages
Rieter Group – Key Messages Sales Performance Program “Next level” Order Intake CHF 1 418.6 million (-6%) in progress CHF 541.8 million (-53%) EBIT Market Situation Order Backlog CHF 101.7 million (+216%) challenging CHF 650 million (-58%) Net Profit Campus/Innovation Dividend Proposal CHF 74.0 mill
Slide 5: Market
2 Market Results 2023 . Media & Investor Presentation . March 13, 2024 Page 5
Slide 6: Rieter Group sales by region
Rieter Group 2023 75.7 2022 123.3 2023 221.3 2023 361.8 2023 188.0 Sales CHF million 2022 266.1 2022 472.6 2022 168.5 2023 1 418.6 2023 182.5 2023 164.8 2023 224.5 2022 1 510.9 2022 196.8 2022 209.2 2022 74.4 North and Asian 1 without China, India and Türkiye Europe South America Türkiye Africa coun
Slide 7: Spinners Margin vs. Cotton Price
Spinners Margin vs. Cotton Price CHF/KG CHF/KG Average Spinners Margin Cotton Average Cotton Price 2 4 3 1 2 1 0 0 2020 2021 2022 2023 2020 2021 2022 2023 RoW India China Results 2023 . Media & Investor Presentation . March 13, 2024 Page 7
Slide 8: Spinning Mills – Capacity Utilization
Spinning Mills – Capacity Utilization Average in % ‒ Slowdown in 2023 with initial signs of recovery 96 in China 82 84 85 80 67 68 60 60 55 51 50 2020 2021 2022 2023 RoW India China Results 2023 . Media & Investor Presentation . March 13, 2024 Page 8
Slide 9: Market Situation – China
Market Situation – China ‒ Growth rate in China indicates a positive investment sentiment for the local market ‒ Negative currency effect on sales in financial year 2023 of nine percentage points ‒ Very good customer response during ITMA Asia 2023 in Shanghai ‒ Opportunities to expand market share R
Slide 10: Next Level
3 Next Level Results 2023 . Media & Investor Presentation . March 13, 2024 Page 10
Slide 11: Next Level Shall Create Long-Term Value for Stakeholders
Next Level Shall Create Long-Term Value for Stakeholders Next Level EBIT margin ambition CHF million ~12% HIGH at ~1 600 sales ~8% ~8% MID at ~1 300 sales ~4% ~4% 0% LOW at ~1 000 sales Results 2023 . Media & Investor Presentation . March 13, 2024 Page 11
Slide 12: Anticipated Low Scenario in 2024
Anticipated Low Scenario in 2024 CHF million 240-260 200 -100 1’000 650 550 Order backlog Realization in 2025 Realization in 2024 Sales Sales components Scenario 2024 and cancellations new machines and after sales Results 2023 . Media & Investor Presentation . March 13, 2024 Page 12
Slide 13: Performance Program Next Level – Update
Performance Program Next Level – Update 1 2 3 4 Sales Competitive Effective Supply Agile Excellence Products Management Structures ‒ Increase After Sales and ‒ Implement continuous ‒ Resolve supply chain ‒ Empowerment of Components sales cost leadership organi- disruption effects key markets ‒ Adapt
Slide 14: Innovations
4 Innovations Results 2023 . Media & Investor Presentation . March 13, 2024 Page 14
Slide 15: ITMA 2023 Innovations
ITMA 2023 Innovations Innovation leap – moving forward 1 2 3 4 5 Air-Jet Spinning Card C 81 Automatic Piecing Recycling Automation and Machine J 70 Robot ROBOspin Digitization ‒ 200 individually automated ‒ Cutting edge sensor ‒ Significantly reduced ‒ Pushing the boundaries with ‒ System integratio
Slide 16: Research & Development – Expenses
Research & Development – Expenses CHF million ‒ Ongoing investments in financial year 2023 of around CHF 76.8 million (5.4% of Group sales) 77.9 76.8 ‒ Drive trends in the field of digitization, artificial 58.4 intelligence, automation, and the circular economy 53.2 52.5 7.0 9.2 6.0 5.2 5.4 2019 202
Slide 17: Financials
5 Financials Results 2023 . Media & Investor Presentation . March 13, 2024 Page 17
Slide 18: Financials – Key Messages
Financials – Key Messages Sales Order Intake CHF 1 418.6 million (-6%) CHF 541.8 million (-53%) EBIT Gross Profit CHF 101.7 million (+216%) CHF 380.3 million (+16%) Net Debt Free Cash Flow CHF -191.2 million CHF 118.7 million (2022: CHF -285.6 million) (2022: CHF -98.6 million) Results 2023 . Media
Slide 19: EBIT Margin Significantly Improved
EBIT Margin Significantly Improved CHF million ‒ High sales level due to order backlog execution EBIT 2.1% EBIT 7.2% ‒ Realization of price increases ‒ Cost decreases for material and logistics ‒ EBIT impacted by sale of land and buildings in Winterthur (CHF 72.5 million) and restructuring 1’510.9 e
Slide 20: EBIT
EBIT CHF million +216% -54.6 72.5 -3.2 3.5 51.3 101.7 32.2 2022 Gross profit R&D and Sale of land Restructuring Other 2023 SG&A and buildings expenses and in Winterthur impairment Results 2023 . Media & Investor Presentation . March 13, 2024 Page 20
Slide 21: Order Backlog at Year-End
Order Backlog at Year-End Order backlog still extends well into 2024 CHF million ‒ Order cancellations 2023 on a normal level 1’840 ‒ Backlog margins improved (price increases and 1’540 cost reductions) ‒ Order backlog by the end of 2023 amounts to more than half of a low scenario sales volume 650 5
Slide 22: Free Cash Flow
Free Cash Flow Free cash flow driven by sale of land and net working capital reduction +217.3 -17.3 ‒ Driven by operating result, sale of land and overall improvement in net working capital ‒ Cash flow from operating activities of CHF 69.3 145.5 118.7 million (2022: CHF -76.2 million) ‒ Cash flow fr
Slide 23: Balance Sheet
Balance Sheet CHF million CHF million In % Net Working Capital (NWC) Net debt Equity ratio -39.5 +94.4 +5.4% 26.0 -191.2 -285.6 28.8% 23.4% -13.5 2022 Change 2023 2022 Change in 2023 2022 Change in 2023 in NWC Net debt equity ratio ‒ Improvement of inventory management ‒ Cash flow from operating act
Slide 24: Workforce Development
Workforce Development FTE1 -18% ‒ Significant decrease of 6’935 ‒ Temporary employees (-694 FTE) and 1’306 5’693 ‒ Permanent employees (-548 FTE) 612 -10% related to performance program Next Level 5’629 5’081 2022 2023 Temporaries Permanent 1 FTE = Full time equivalent Results 2023 . Media & Investo
Slide 25: Dividend Proposal
Dividend Proposal CHF ‒ Board of Directors’ proposal: dividend of CHF 3.00 4.50 per share 4.00 ‒ Payout ratio of 18.2% ‒ Rieter aims to achieve an equity ratio of >35% 3.00 1.50 0.00 2019 2020 2021 2022 2023 Dividend per share Results 2023 . Media & Investor Presentation . March 13, 2024 Page 25
Slide 26: Sustainability
6 Sustainability Results 2023 . Media & Investor Presentation . March 13, 2024 Page 26
Slide 27: Sustainability – Report on Non-financial Matters
Sustainability – Report on Non-financial Matters ‒ Report about non-financial matters integrated into the 2023 Annual Report ‒ Materiality Assessment conducted with various internal and external stakeholders ‒ Goals on “People” and “Planet” for 2025 on track ‒ Rieter is revising its sustainability s
Slide 28: Outlook
S T R I C T LY C O N F I D E N T I A L 7 Outlook Results 2023 . Media & Investor Presentation . March 13, 2024 Page 28
Slide 29: Outlook 2024 with Sales of around CHF 1 billion
Outlook 2024 with Sales of around CHF 1 billion ‒ Markets remain under pressure from the economic slowdown, high inflation rates and noticeably dampened consumer sentiment. Customers are reluctant to place orders due to financing challenges. The first signs of a recovery in the 2024 financial year h
Slide 30: Q&A
Q&A Results 2023 . Media & Investor Presentation . March 13, 2024 Page 30
Slide 31: 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 32: Appendix
Appendix Results 2023 . Media & Investor Presentation . March 13, 2024 Page 32
Slide 33: Order Intake by Business Group
Order Intake by Business Group Difference in CHF million 2022 2023 Difference local currency Rieter 1 157.3 541.8 -53% -51% Machines & Systems 663.9 159.4 -76% -74% Components 310.1 229.0 -26% -25% After Sales 183.3 153.4 -16% -12% Difference in CHF million HY1 2023 HY2 2023 Difference local currenc
Slide 34: Sales by Business Group
Sales by Business Group Difference in CHF million 2022 2023 Difference local currency Rieter 1 510.9 1 418.6 -6% -4% Machines & Systems 1 034.7 965.0 -7% -5% Components 303.5 266.2 -12% -11% After Sales 172.7 187.4 9% 13% Difference in CHF million HY1 2023 HY2 2023 Difference local currency Rieter 7
Slide 35: Sales by Region
Sales by Region Difference in CHF million 2022 2023 Difference local currency Rieter 1 510.9 1 418.6 -6% -4% Asian countries1 472.6 361.8 -23% -23% China 168.5 188.0 12% 21% India 196.8 224.5 14% 20% Türkiye 266.1 221.3 -17% -16% North and South America 209.2 182.5 -13% -12% Europe 123.3 75.7 -39% -
Slide 36: Financial Key Figures
Financial Key Figures CHF million FY 2022 HY1 2023 HY2 2023 FY 2023 Order Intake 1 157.3 325.0 216.8 541.8 Sales 1 510.9 758.2 660.4 1 418.6 EBITDA 85.0 52.2 108.2 160.4 EBIT 32.2 25.2 76.5 101.7 EBIT margin (of sales) 2.1% 3.3% 11.6% 7.2% Net profit 12.1 13.3 60.7 74.0 R&D expenditure 77.9 41.3 35.
Slide 37: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 31/12/2022 30/06/2023 31/12/2023 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 479 635 4 491 814 4 491 814 Average shares (of period) 4 491 246 4 487 113 4 489 283 Share price (
Slide 38: Financial Calendar
Financial Calendar Annual General Meeting 2024 April 17, 2024 Semi-Annual Report 2024 July 18, 2024 Investor Update 2024 October 23, 2024 Publication of sales 2024 January 29, 2025 Deadline for proposals regarding the agenda of the Annual General Meeting February 28, 2025 Results press conference 20