Slide 1: Presentation of Annual Report 2024
Presentation of Annual Report 2024 St. Margrethen | March 7, 2025
Slide 2: Today’s speakers
Today’s speakers Welcome! Jens Breu, Chief Executive Officer Volker Dostmann, Chief Financial Officer Presentation of Annual Report 2024 | March 7, 2025 | Public 2
Slide 3: Agenda
Agenda 01 Positioning Jens Breu 02 Key takeaways Jens Breu 03 Segment development Jens Breu 04 Key financials Volker Dostmann 05 Outlook 2025 Volker Dostmann 06 Q&A All Presentation of Annual Report 2024 | March 7, 2025 | Public 3
Slide 4: Positioning
Positioning Presentation of Annual Report 2024 | March 7, 2025 | Public 4
Slide 5: We are by your side – 24/7
Mission critical products for selected end markets We are by your side – 24/7 Presentation of Annual Report 2024 | March 7, 2025 | Public 5
Slide 6: SFS value proposition: Inventing success together
SFS value proposition Inventing success together Presentation of Annual Report 2024 | March 7, 2025 | Public 6
Slide 7: Value Engineering: Three business models for specific end markets
Value Engineering Three business models for specific end markets Presentation of Annual Report 2024 | March 7, 2025 | Public 7
Slide 8: Organizational structure
Organizational structure Clear focus on end markets, high level of autonomy Presentation of Annual Report 2024 | March 7, 2025 | Public 8
Slide 9: Key takeaways
Key takeaways Presentation of Annual Report 2024 | March 7, 2025 | Public 9
Slide 10: 2024 at a glance
2024 at a glance Stable positioning • Despite challenging economic environment, SFS achieved good results and met most of its targets set • Third-party sales of CHF 3,039.0 million generated (–1.7% vs. PY) • Organic sales growth of +0.1% demonstrates successful market positioning • Persistently stro
Slide 11: Key takeaways | Environment
Key takeaways | Environment On track to achieve targets Emissions reduction (Scope 1+2) by –74.6% vs. 2020 Interim target for renewable electricity already met CO2 emissions in metric tons/million value-added francs Share of renewable electricity in total electricity demand in % Presentation of Annu
Slide 12: Key takeaways | Social
Key takeaways | Social Dual education secured, accident rate slightly higher Training and development targets successfully confirmed Slight increase in accident rate Number of employees in education and training programs in % Number of accidents per million hours worked Presentation of Annual Report
Slide 13: Segment development
Segment development Presentation of Annual Report 2024 | March 7, 2025 | Public 13
Slide 14: Headlines Engineered Components (EC) segment
Headlines Engineered Components (EC) segment Positive financial development • Good organic growth and distinct rebound in profitability • Development in 2H slightly below expectations main- ly due to developments in European automotive end market • Strong recovery in demand for Nearline HDD for data
Slide 15: Headlines Fastening Systems (FS) segment
Headlines Fastening Systems (FS) segment Market access further expanded • Challenging market environment only improving in Q4, resulting in organic sales decline vs. PY • Despite market conditions, segment’s EBIT margin expectation was met • Market access in Europe and NA expanded: • Acquisition of
Slide 16: Headlines Distribution & Logistics (D&L) segment
Headlines Distribution & Logistics (D&L) segment Strategic position strengthened • Restraint market momentum throughout entire financial year partially offset by onboarding of European distribution partner’s warehouse • Solid profitability thanks to prudent cost management and extensive range of pro
Slide 17: Key financials
Key financials Presentation of Annual Report 2024 | March 7, 2025 | Public 17
Slide 18: Sales bridge
Sales bridge Slight organic growth, negative FX effects ongoing Organic 20241 20241 in CHF million +0.1% –1.9% growth CHF million % 3,100 +0.1% 4.6 –58.3 3,090.8 1.9 EC segment 41 3.7 FS segment –19 –3.8 D&L segment –20 –1.4 • EC segment positive development • Slow-down in market demand in FS and D&
Slide 19: Sales breakdown
Sales breakdown Industrial & Europe exposure visible 100% 100% 7.8% 8.7% 11.2% 12.3% 11.7% 11.6% 12.5% 13.6% 7.7% 19.5% 18.8% 7.2% 5.6% 5.7% 6.2% 80% 10.9% 11.5% 80% 16.3% 17.1% 18.5% 22.7% 21.8% 27.4% 27.2% 22.7% 20.9% 19.9% 60% 60% 15.8% 12.8% 13.1% 40% 37.8% 51.4% 59.0% 57.8% 40% 35.4% 31.1% 31.4
Slide 20: Operating profitability
Operating profitability EBIT margin at previous year level • Development in 2H slightly below expectations: in CHF million in % of net sales • Weakening of automotive industry in Europe 1,000 25 • Improvement construction industry only in Q4 900 21.5% • Soft demand and lower capacity utilization imp
Slide 21: Earnings per share (EPS)
Earnings per share (EPS) EPS decrease mainly due to financial result EPS negatively impacted EPS in CHF Payout per share in CHF • CHF –8.4 million lower nominal EBIT 12 2.5 • Impact –0.22 on EPS 11 2.50 2.50 2.50 2.00 10 1.90 2.20 • CHF –18.4 million negative financial income whereof 1.75 1.80 1.80
Slide 22: Payout ratio
Payout ratio CHF 2.50 dividend payout • BoD will propose a payout per share Payout ratio in % Payout per share in CHF CHF 2.50 50% 4.5 • Thereof CHF 1.25 from retained earnings 4.0 • Thereof CHF 1.25 from capital reserves 40.3% 40% 36.7% 36.4% 36.5% 3.5 • Dividend yield ~2.0% 33.6% (at share price C
Slide 23: Net working capital
Net working capital Priority on maintaining delivery reliability • Excluding FX impacts, NWC simplified remains at NWC simplified* in % of net sales C2C simplified in days previous year’s level 35% 150 30.3% 29.9% 30% 28.1% 27.2% 26.8% 120 111 109 25% 99 103 98 90 20% 15% 60 10% 30 5% 0% 0 2020 2021
Slide 24: Capital expenditure
Capital expenditure Substantial decrease CAPEX spending 2024 2023 in CHF million in % of net sales by segment % % 400 7% 6.4% EC 71 72 6.1% 6.2% 350 5.7% FS 12 12 6% D&L 10 12 5.9% 5.6% 300 4.9% 5% 4.3% 4.3% • CAPEX well within target range of 4–6% of net sales 250 4.1% • Substantial reduction in gr
Slide 25: Implementation SAP S/4HANA
Implementation SAP S/4HANA Project successfully mastered Business/IT workload Global operations Major business interruptions 2,300 users 83,776 hrs 20 countries = 43 person- 0 40 plants years 29 warehouses SAP roles built & assigned Migrated data sets Helpdesk resources back to normal 1,330 built 1b
Slide 26: Operating free cash flow (OFCF)
Operating free cash flow (OFCF) Recovery to 2021 level in CHF million 2024 2023 in CHF million in % of EBITDA 59.3% CF before changes in NWC 378 395 360 60% Changes in NWC –3 –82 49.9% Cash flow from operations 375 313 300 47.1% 50% CAPEX –149 –174 Operating free cash flow 226 139 240 226 35.5% 40%
Slide 27: Balance sheet ratios
Balance sheet ratios Equity ratio increasing according to plan • Important factors for net debt development: Equity ratio in % CHF million net cash/debt • Improved generation of operating free cash flow 90% 600 • Dividend payment in first half-year 78.9% 80% 75.9% • Bond maturity is 2025/2027 (CHF 2
Slide 28: Return on capital
Return on capital Impacted by profitability • Bridge ROCE to ROIC in % of net sales • Impact from goodwill and net cash: –7.6% 30% • Impact from tax effects: –3.4% 26.1% 24.4%* 25% 19.9% 20.4% 19.4% 20% 15% 11.2% 9.7%* Adjusted EBIT 10% 8.6% 8.9% 8.4% Adjusted EBIT −Tax Rate 17.5% ROCE = ∅ Capital E
Slide 29: Effective tax rate
Effective tax rate Increase in volatile environment • One-time effect impairment of DTA in Turkey Effective tax rate in % (CHF 2.8 million), ETR +0.83 pp 30% • Final loss offset in USA 2023 28% 25.6% 26% 23.8% • Local effects 24% 22% 19.9% 20% 17.8% 18% 16.1% 16% 14% 12% 10% 8% 6% 4% 2% 0% 2020 2021
Slide 30: KPI summary
KPI summary In challenging environment in CHF million 2024 % 2023 % +/– PY Third-party sales 3,039.0 3,090.8 Net sales 3,031.1 3,073.0 EBITDA Margin 479.8 15.8 486.0 15.8 +0 bps EBIT Margin 350.2 11.6 358.6 11.7 –10 bps EBIT adj. Margin adj. 350.2 11.6 358.6 11.7 –10 bps Net income Ratio 242.7 8.0 2
Slide 31: Outlook 2025
Outlook 2025 Presentation of Annual Report 2024 | March 7, 2025 | Public 31
Slide 32: Guidance 2025
Guidance 2025 EBIT margin around previous year level Mid-term 2024A guidance (CHF) Gross sales SFS development +3–6%* 3,039.0 million *(in local currencies, incl. scope effects) EBIT margin 12–15% 11.6% Guidance reflects challenging geopolitical and economic environment, paired with low visibility.
Slide 33: Strategic priorities
Strategic priorities Focusing on our main strengths and chances Strategy Mega- “Local-for- Focus on Solid execution trends local” technology financing Foster high team moti- Understand and monitor Ensure balanced em- Integrate progress in AI, Emphasize strict cost vation to capitalize on megatrends,
Slide 34: Q&A
Q&A Presentation of Annual Report 2024 | March 7, 2025 | Public 34
Slide 35: Agenda: IR Events 2025
Agenda IR Events 2025 32nd Annual General Meeting Wednesday, April 30, 2025 Publication of Half-Year Report 2025 Thursday, July 17, 2025 IR Contact: investor.relations@sfs.com Presentation of Annual Report 2024 | March 7, 2025 | Public 35
Slide 36: Inventing success together
Inventing success together