Bystronic Ag · SIX:BYS
Bystronic — Conzzeta — FY2019 Earnings Presentation
38 slides from Bystronic's earnings presentation, Mar 17, 2020
Slide 1: 2019 Results Presentation
2019 Results Presentation Zurich, March 17, 2020
Slide 2: Disclaimer & rules for the day
Disclaimer & rules for the day The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and half-year report of Conzzeta AG and on the website www.conzzeta.com prevails. Although the greatest possible
Slide 3: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A 2019 Results Presentation, March 17, 2020 3
Slide 4: 2019 results summary and dividend proposal
2019 results summary and dividend proposal Enhanced margin in all segments and special distribution • General slowdown in capital goods and automotive markets • Net revenue CHF 1’573.2 m, -4.9% at comparable1) level – Reported -11.7% • Operating result (EBIT) CHF 167.2 m, stable at comparable1) leve
Slide 5: Successful divestment of Schmid Rhyner as per Feb 28, 2020
Successful divestment of Schmid Rhyner as per Feb 28, 2020 We transform into a focused, technology-oriented industrial company Divest, subject to market conditions Focused growth strategy • Businesses with progress and • Main business with 60% of net enhanced margins in 2019 revenue and 88% of EBIT
Slide 6: Operational progress across segments created strategic options
Operational progress across segments created strategic options Our indicative timeline for the Group transformation 2019 2020 2021 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Platform evaluation Schmid Rhyner Signing Closing Create and / or Strategic Platform evaluation select best suitable evaluation Mammut Closing
Slide 7: Our framework implemented in 2016 will continue to serve us well
Our framework implemented in 2016 will continue to serve us well through the change process Strategic Thinking Entrepreneurship Market orientation Internationalization Innovation Growth Collaboration and Diversity Profitability Performance Orientation Capital efficiency Drive for Excellence People d
Slide 8: We delivered on our priorities and financial aspiration
We delivered on our priorities and financial aspiration … … with strengthened capabilities Net revenue (CHF m) Share in Asia and America +290 bp 2000 Group CAGR 8.7% 1500 43.2 1000 40.3 500 56.8 Asia & 59.7 America 0 Europe 2015 2016 2017 2018 2019 The 4th cohort of the Conzzeta Talent Development P
Slide 9: Sheet Metal Processing Bystronic
Sheet Metal Processing Bystronic
Slide 10: Sheet Metal Processing: Resilient performance amidst challenging markets in Asia
Sheet Metal Processing Resilient performance amidst challenging markets in Asia CHF m 2019 2018 ∆% Operational performance Net revenue 936.0 1'013.20 -7.6 • Comparable net revenue -6.4% Operating result • Growth in US more than offset by decline 121.1 132.5 -8.6 mainly in Asia (EBIT) EBIT margin 12.
Slide 11: We're developing a business strategy to accelerate growth
We’re developing a business strategy to accelerate growth Key elements Growth • Innovation rate • Market strategies & regional expansion • Smart factory & solutions • Client segmentation & product / service offering • World class service • Structured M&A process with established pipeline Differentia
Slide 12: Bystronic growth opportunities in the mid-client segment
Bystronic growth opportunities in the mid-client segment Tailored product launches to increase market share Market share* BySmart Fiber laser cutting High-end 15% machine 5% Xact Smart bending machine, Entry level 20% with automation *Bystronic estimates for 2018 Evolving demand for automation also
Slide 13: Bystronic footprint expansion: Regional hubs – local presence
Bystronic footprint expansion Regional hubs – local presence North America Europe China Asia Assembly & brand experience R&D, manufacturing & R&D, manufacturing & Brand experience centers & center to open in H1 2020 global brand experience center brand experience centers local sales organizations Se
Slide 14: Chemical Specialties FoamPartner
Chemical Specialties FoamPartner Schmid Rhyner
Slide 15: Chemical Specialties (discontinued business)
Chemical Specialties (discontinued business) Operational progress driven by FoamPartner CHF m 2019 2018 ∆% Operational performance Net revenue 346.6 382.9 -9.5 • Comparable net revenue -7.9% Operating result • Decline across regions and segments, driven 14.2 5.8 144.3 by challenging markets (EBIT) E
Slide 16: FoamPartner key initiatives 2020
FoamPartner key initiatives 2020 Drive topline growth and operational improvements • Push innovation and application engineering, e.g. − increased mileage range through light weight foam solutions for electrical vehicles, including OEM roadshow with concept car • Deliver on business excellence initi
Slide 17: Outdoor Mammut
MAMMUT SWISS1862 Mammut
Slide 18: Outdoor (discontinued business)
Outdoor (discontinued business) Recovery in profitability masked by weak Q3 delivery performance CHF m 2019 2018 ∆% Operational performance Net revenue 268.4 253.4 5.9 • Comparable net revenue +6.8% Operating result • Growth across regions and channels with 7.5 5.2 42.0 disproportionate growth in di
Slide 19: Outdoor: The 5 year strategy program is in its final phase
Outdoor The 5 year strategy program is in its final phase Priorities for 2020 • Push innovation with core mountain I Grow in Omnichannel expertise and urban consumer needs Management & Digitalization • Deliver growth – across channels and in defined growth markets • Further develop digital, also wit
Slide 20: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A 2019 Results Presentation, March 17, 2020 20
Slide 21: Consolidated income statement
Consolidated income statement (CHF m) 2019 2018 ∆% Net revenue 1’573.2 1’782.2 -11.7% ∆ Inventory and own work capitalized 6.0 14.5 Total revenue 1’579.1 100% 1’796.7 100% -12.1% Other operating income 43.0 8.4 Cost of materials -738.9 -875.4 Personnel expenses -378.9 -404.4 Other operating expenses
Slide 22: Group net revenue
Group net revenue Decrease in comparable net revenue by 4.9% (CHF m) 2018 1'782.2 Volume and price Net revenue comparable -4.9% -88.2 Change in scope1) -5.1% -91.2 FX translation -1.7% -29.7 2019 1'573.2 1) Sale of the Glass Processing segment in 2019 partly offset by the acquisition of of two compa
Slide 23: Net revenue by segment
Net revenue by segment Largely market-driven declines, partly offset by growth in Outdoor (CHF m) 1200 -7.6% -6.4% 1000 1'013.2 936.0 ∆ % reported 800 ∆ % comparable1) 600 -9.5% +5.9% 400 -7.9% +6.8% 382.9 346.6 200 253.4 268.4 133.3 22.4 0 2) Sheet Metal Chemical Specialties Outdoor Glass Processin
Slide 24: Group EBIT
Group EBIT EBIT margin improved from 8.2% to adjusted 8.7% (CHF m) 2018 reported 8.2% 146.8 Volume and product mix -15.8 Personnel -5.5 • CHF 6.7 m benefit from non-recurring expenses items in Sheet Metal Processing OpEx & • CHF 1.8 m of reorganization costs depreciation +20.9 in FoamPartner busines
Slide 25: Group result
Group result Earnings per share up by 30.1% with lower deductions for minorities (CHF m) 2019 2018 Operating result (EBIT) 167.2 10.6% 146.8 8.2% Financial result1) -0.1 -2.5 Taxes -30.3 -29.5 Group result 136.8 8.7% 114.8 6.4% Attributable to Conzzeta shareholders 125.8 96.6 Attributable to minorit
Slide 26: Comparison of half-year results
Comparison of half-year results Typical seasonal pattern with stronger H2 1HY 2HY 1HY 2HY 1HY 2HY 1HY 2HY (CHF m) 2016 2016 2016 2017 2017 2017 2018 2018 2018 2019 2019 2019 Net revenue 522.7 687.4 1’210.0 623.5 859.3 1’482.8 853.3 928.9 1’782.2 770.1 803.0 1’573.2 Total revenue 543.0 667.8 1’210.8
Slide 27: Quarterly business trends 2019
Quarterly business trends 2019 Revenue catch-up in Q4 vs subdued Q3 Q1 Q2 Q3 Q4 2018 2019 ∆% 2018 2019 ∆% 2018 2019 ∆% 2018 2019 ∆% Order entry Sheet Metal Processing 241.5 222.2 -8.0% 273.2 228.4 -16.4% 242.0 242.9 0.4% 246.2 235.9 -4.2% Net revenue Group1) 430.6 394.4 -8.4% 422.7 375.7 -11.1% 453.
Slide 28: Consolidated cash flow statement
Consolidated cash flow statement OPFCF driven by lower business volume and higher NWC (CHF m) 2019 2018 ∆ abs. Cash flow from operating activities 135.8 160.2 -24.4 before change in net working capital Change in net working capital -35.7 -16.2 -19.6 Cash flow from operating activities 100.1 144.0 -4
Slide 29: Group cash position
Group cash position Actively managing the continuously strong cash balance (CHF m) +124.1 -99.2 +135.8 -35.7 -59.5 -104.1 50.0 Operating free cash flow CHF 40.6 m 339.6 300.9 Free cash flow CHF 164.7 m 2018 Operating Change Investment in Divestment Dividend DNE step-up 2019 Liquidity cash flow in NW
Slide 30: Consolidated balance sheet
Consolidated balance sheet Equity ratio maintained at high level (CHF m) 2019 2018 Cash, cash equivalents and securities 300.9 389.6 Receivables 272.7 283.2 Prepaid expenses and accrued income 11.1 13.1 Inventories 304.2 323.1 Property, plant and equipment 276.1 268.7 Financial assets and deferred t
Slide 31: Group RONOA
Group RONOA Lower capital return, but still well above aspiration level of 15% Return on net operating assets (RONOA1)) 600 180 160 500 140 23.1% 20.0%2) • Avg. NOA of CHF 535.4 m, or 33.9% of Total revenue 400 120 (PY 28.1%), reflecting increase in NWC and elevated 100 CAPEX level 300 80 • Net work
Slide 32: EPS and dividend
EPS and dividend Proposed dividend with special distribution from subsequent event Earnings per share A1) (CHF) Dividend proposal 2019 (CHF) 60 60.85 • EPS share A CHF 60.85, or CHF 50 50 46.38 excluding divestment gain 40 46.76 46.382) 40 • Dividend proposal of CHF 42.00 ‒ CHF 18.00 base component
Slide 33: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A 2019 Results Presentation, March 17, 2020 33
Slide 34: We're managing through challenging times
Impact from SARS-CoV-2 We’re managing through challenging times Impacts Mitigating measures • No confirmed COVID-19 case across Conzzeta • Coordination at Group level with implementation Group; several employees in self-quarantine as by site-specific response teams; active precautionary measure comm
Slide 35: Priorities and outlook 2020
Priorities and outlook 2020 SARS-CoV-2 presents a dynamic situation • Expect more challenges across regions, despite initial recovery in China • Weak start into 2020 – expect beginning of normalization in H2 • Continued mitigating action; try to stay close to clients and employees We remain focused
Slide 36: Agenda
Agenda • Group result & business update Michael Willome, Group CEO • Financial results Kaspar W. Kelterborn, Group CFO • Priorities & outlook Michael Willome, Group CEO • Q&A 2019 Results Presentation, March 17, 2020 36
Slide 37: Q&A
conzzeta O&A
Slide 38: Thank you very much for your interest.
Thank you very much for your interest. Conzzeta Management AG Phone +41 44 468 24 44 Giesshuebelstrasse 45 www.conzzeta.com 8045 Zurich, Switzerland