Slide 1: Results 2020
Results 2020 Media and Investor Presentation, March 9, 2021 Dr. Norbert Klapper, CEO Kurt Ledermann, CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy 04 Outlook Results 2020 . Media & Investor Presentation . March 9, 2021 Page 2
Slide 3: Rieter Group − Key Messages
Rieter Group − Key Messages Financial Year 2020 ‒ Sharp decline in demand in the 2020 financial year due to the COVID-19 pandemic ‒ Market recovery in the second half of 2020 ‒ Order intake of CHF 640.2 million, sales of CHF 573.0 million, EBIT margin of -14.7% and net profit of -15.7% of sales in f
Slide 4: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy 04 Outlook Results 2020 . Media & Investor Presentation . March 9, 2021 Page 4
Slide 5: Financial Highlights 2020
Financial Highlights 2020 CHF million (except dividend) 2020 2019 Comments ‒ Slump in demand in the second quarter due to COVID-19 Order intake 640.2 926.1 ‒ Recovery in the third and fourth quarters of 2020 ‒ Exceptional market situation gave rise to significant decline in Sales 573.0 760.0 sales o
Slide 6: Order Intake by Quarter
Order Intake by Quarter Rieter’s annual order intake for the 2020 financial year totaled CHF 640.2 million (-31%). CHF million ‒ Sharp decline in the second quarter 2020 due to the pandemic (spinning mills shut down). 215 ‒ Clear market recovery started in the third quarter 205 2020 and continued in
Slide 7: Order Intake by Business Group
Order Intake by Business Group All three business groups were affected by the slump in demand in the second quarter of 2020. CHF million -31% ‒ Despite the recovery in order intake in the third and 926 fourth quarters of 2020, the weak second quarter was only partially offset. ‒ The Business Group M
Slide 8: Sales by Business Group
Sales by Business Group Market recovery in the second half year also reflected in sales. CHF million CHF million -25% +25% 760 318 255 573 389 176 120 296 230 87 88 174 141 103 47 56 2019 2020 HY1 2020 HY2 2020 Machines & Systems Components After Sales Results 2020 . Media & Investor Presentation .
Slide 9: Sales Development by Region
Sales Development by Region CHF million -25% ‒ With the exception of Turkey, all regions were 760 affected by the low demand as a consequence of the COVID-19 pandemic. 294 573 ‒ In Turkey, thanks to the innovative range of products and services, Rieter benefited from 185 customers’ willingness to in
Slide 10: EBIT
EBIT CHF million 84.9 -76.3 20.3 0.7 -108.4 -84.4 -5.6 2019 Gross profit Research & Selling, general Other income Other expenses 2020 development & administrative expenses expenses Results 2020 . Media & Investor Presentation . March 9, 2021 Page 10
Slide 11: Balance Sheet − Key Figures
Balance Sheet − Key Figures Strong balance sheet CHF million 31/12/2020 31/12/2019 ‒ Liquid funds at the same level as in 2019 Liquid funds 283.2 285.0 ‒ Between March and November Net liquidity 41.3 162.1 2020, draw down of bank loans with a term of one year (CHF 131.1 Net working capital -4.4 -7.5
Slide 12: Free Cash Flow
Free Cash Flow Free cash flow amounted to CHF -74.8 million in 2020. CHF million 2020 2019 Free cash flow was mainly driven by Net profit -89.8 52.4 the following effects: Depreciation and amortization 37.7 38.2 ‒ Decline in sales volume +/- Change in net working capital 12.9 -15.9 ‒ Active manageme
Slide 13: Net Profit and Dividend Proposal
Net Profit and Dividend Proposal The Board of Directors proposes not to pay a dividend for 2020. CHF million CHF 52.4 5.00 5.00 5.00 4.50 -89.8 0.00 Net profit 2019 Net profit 2020 2016 2017 2018 2019 2020 Dividend per Share In % of sales 6.9% -15.7% EPS in CHF 11.65 -20.05 Results 2020 . Media & In
Slide 14: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy 04 Outlook Results 2020 . Media & Investor Presentation . March 9, 2021 Page 14
Slide 15: Strategy Implementation: Innovation and Technology Leadership
Strategy Implementation Innovation and Technology Leadership ‒ Market launch of innovations presented at ITMA 2019 in Barcelona ‒ Major orders received for new card C 80 and new comber E 90 ‒ Additional market launches planned for 2021 Results 2020 . Media & Investor Presentation . March 9, 2021 Pag
Slide 16: Strategy Implementation: Solutions for Rieter installed base
Strategy Implementation Solutions for Rieter installed base ‒ Market launch of innovations presented at ITMA 2019 in Barcelona ‒ Major orders received for piecing robot ROBOspin and compacting devices COMPACTdrum and COMPACTeasy ‒ Additional market launches planned for 2021 Results 2020 . Media & In
Slide 17: Strategy Implementation: Continuous improvement of cost base
Strategy Implementation Continuous improvement of cost base FTE1 ‒ Execution of restructuring program announced in January 2020: 180 positions in Europe -4% 4,755 ‒ Capacities maintained in order to preserve ability 164 4,563 to ramp-up business 147 -4% 4,591 4,416 2019 2020 Temporaries Permanent 1
Slide 18: Strategy Implementation
Strategy Implementation ‒ The Rieter CAMPUS is an important element of Rieter’s innovation strategy. ‒ The decision about the start of the construction work will depend on the business situation. Results 2020 . Media & Investor Presentation . March 9, 2021 Page 18
Slide 19: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy 04 Outlook Results 2020 . Media & Investor Presentation . March 9, 2021 Page 19
Slide 20: Outlook
Outlook ‒ Rieter expects the market recovery that began in the second half of 2020 to continue in 2021. ‒ The company expects an order intake in the first half of 2021 exceeding that of the previous half year (second half of 2020: CHF 389.5 million). ‒ Thanks to the improved capacity utilization, Ri
Slide 21: Disclaimer
Disclaimer Rieter makes every effort to include accurate, 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 for the
Slide 22: Appendix
Appendix Results 2020 . Media & Investor Presentation . March 9, 2021 Page 22
Slide 23: Change in the Group Executive Committee
Change in the Group Executive Committee Carsten Liske, Head of the Business Group Machines & Systems and member of the Group Executive Committee since 2015, left the Group Executive Committee at the end of February 2021 to take on a new role outside of the Rieter Group. The Board of Directors thanks
Slide 24: Operating Result Before Restructuring Charges by Business Group
Operating Result Before Restructuring Charges by Business Group CHF million 2020 2019 Comments ‒ Low sales, cost saving measures, innovation program Machines & Systems -71.3 -49.4 continued Components 1.4 11.0 ‒ Low sales, cost saving measures After Sales 1.4 23.5 ‒ Low sales, cost saving measures ‒
Slide 25: Order Intake by Business Group
Order Intake by Business Group CHF million Difference in (unaudited) 2020 2019 Difference local currency Rieter 640.2 926.1 -31% -29% Machines & Systems 363.9 562.8 -35% -34% Components 169.1 222.0 -24% -22% After Sales 107.2 141.3 -24% -21% CHF million Difference in (unaudited) HY2 2020 HY1 2020 Di
Slide 26: Sales by Business Group
Sales by Business Group Difference in CHF million 2020 2019 Difference local currency Rieter 573.0 760.0 -25% -23% Machines & Systems 295.8 389.0 -24% -23% Components 174.3 230.2 -24% -23% After Sales 102.9 140.8 -27% -24% CHF million Difference in (unaudited) HY2 2020 HY1 2020 Difference local curr
Slide 27: Sales by Region
Sales by Region 2020 2019 Difference Difference in CHF million local currency Rieter 573.0 760.0 -25% -23% Asian countries1 184.8 293.5 -37% -37% China 92.8 136.7 -32% -30% India 50.8 99.9 -49% -47% Turkey 122.0 66.8 83% 84% North and South America 66.4 105.8 -37% -35% Europe 38.4 41.2 -7% -5% Afric
Slide 28: Financial Key Figures
Financial Key Figures CHF million FY 2020 HY2 2020 HY1 2020 FY 2019 Order Intake 640.2 389.5 250.7 926.1 Sales 573.0 318.1 254.9 760.0 EBITDA -46.7 -10.6 -36.1 123.1 EBITDA margin (of sales) -8.2% -3.3% -14.2% 16.2% EBIT -84.4 -29.4 -55.0 84.9 EBIT margin (of sales) -14.7% -9.2% -21.6% 11.2% Net pro
Slide 29: Net Working Capital
Net Working Capital CHF million 31/12/2020 31/12/2019 Inventories 192.5 182.9 Trade receivables 50.4 68.2 Other current receivables 29.6 31.1 Trade payables -47.7 -68.9 Advance payments -95.5 -69.3 Other current liabilities -133.7 -151.5 Net working capital -4.4 -7.5 Results 2020 . Media & Investor
Slide 30: Return on Net Assets (RONA)
Return on Net Assets (RONA) CHF million 31/12/2020 31/12/2019 2020 Change Liquid funds 283.2 285.0 -1.8 Inventories and receivables 272.5 282.2 -9.7 Non-current assets 407.8 415.8 -8.0 Total assets 963.5 983.0 -19.5 Current liabilities (excluding debt) -276.9 -289.7 +12.8 Non-current liabilities (ex
Slide 31: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 31/12/2020 30/06/2020 31/12/2019 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 466 303 4 472 514 4 514 331 Average shares (for period) 4 479 637 4 487 622 4 496 460 Share price
Slide 32: Financial Calendar
Financial Calendar Annual General Meeting 2021 April 15, 2021 Semi-Annual Report 2021 July 15, 2021 Publication of sales 2021 January 26, 2022 Deadline for proposals regarding the agenda of the Annual General Meeting February 18, 2022 Results press conference 2022 March 9, 2022 Annual General Meetin