Georg Fischer AG · SIX:GF
Georg Fischer — Corporate Update (October 2003)
27 slides from Georg Fischer's corporate update, Oct 7, 2003
Slide 1: Georg Fischer Media and Analysts Presentation
Mobility Comfort Precision “Adding Quality to People’s Lives” “Strengthened for the Future” Georg Fischer Media and Analysts Presentation Zurich, 7 October 2003 MaPla_Präs_031003-e.ppt 1
Slide 2: Strengthened for the Future
Strengthened for the Future Mobility Comfort Precision “Adding Quality to People’s Lives” "Structural programme to achieve significant and sustainable earnings improvement." „All three core businesses to be streamlined." "Reduction of net financial debt." „Implementation fully completed by the end o
Slide 3: Overview
Mobility Comfort Precision “Adding Quality to People’s Lives” overview MaPla_Präs_031003-e.ppt 3
Slide 4: Mobility
Making your ride smooth Mobility Comfort Precision and safe “Adding Quality to People’s Lives” High-performance cast components and systems in iron and light metals for the automotive industry. Mobility MaPla_Präs_031003-e.ppt 4
Slide 5: Comfort
Providing you Mobility Comfort Precision with “Adding Quality to People’s Lives” clean water High-quality, plastic and metal piping systems for water, gas and other liquids in industry, utilities and building technology. Comfort MaPla_Präs_031003-e.ppt 5
Slide 6: Precision
Shaping your Mobility Comfort Precision daily life “Adding Quality to People’s Lives” Electric discharge and high-speed milling machines that are essential in the manufacture of high- volume consumer goods and customized precision parts. Precision MaPla_Präs_031003-e.ppt 6
Slide 7: Focus on three core businesses
Focus on three core businesses Mobility Comfort Precision “Adding Quality to People’s Lives” Manufacturing Technology 45% No. 1 worldwide 31% Automotive in EDM, tooling Products & automation, No. 1 in Europe, key player in technological HSM leader worldwide 24% Piping Systems Leading global Sales 20
Slide 8: Technologies
Expertise Technological know-how Mobility Comfort Precision and “Adding Quality to People’s Lives” top-quality products Automotive Products Piping Systems Manufacturing Technology Technologies Light metal Light metal Electric Industrial High-speed Iron sand & gravity pressure-die Distribution Buildi
Slide 9: 1st half 2003 Results
1st half 2003 Results Mobility Comfort Precision “Adding Quality to People’s Lives” (CHF m) Corporate Key 30.06.03 30.06.02*) ■ Unsatisfactory Group result Figures in a weak economic environment Sales 1 596 1 732 EBITDA 136 139 ■ Profitability must be improved on EBIT 42 42 a sustainable basis Net p
Slide 10: For improvement
Mobility Comfort Precision “Adding Quality to People’s Lives” for improvement MaPla_Präs_031003-e.ppt 10
Slide 11: Overview of measures
Overview of measures Mobility Comfort Precision “Adding Quality to People’s Lives” Sustainable increase in earnings Strengthening of capital base Reduction of net financial debt Structure and Subordinated cost-cutting Divestments convertible bond projects Structural programme Financing MaPla_Präs_03
Slide 12: Structural programme
Structural programme Mobility Comfort Precision “Adding Quality to People’s Lives” ■ All three corporate groups concerned ■ All businesses reviewed regarding cost-cutting potential and exploitation of synergies ■ Approval of a comprehensive package of measures ■ Sustainable EBIT-improvement in 2004
Slide 13: Structural programme Details
Structural programme Mobility Comfort Precision Details “Adding Quality to People’s Lives” ■ 12 structure projects – Closure of manufacturing sites in Europe and the USA – Transfer of production to other locations – improved capacity utilization – Restructuring of individual sites – Sufficient capac
Slide 14: Structural programme Details
Structural programme Mobility Comfort Precision Details “Adding Quality to People’s Lives” ■ EDM Futura (Agie Charmilles) – Strategy to use synergies in R&D and manufacturing ■ Purchasing, sales and administration – New structures improve efficiencies and reduce costs – No reduction of sales represe
Slide 15: EBIT improvement by 2005
EBIT improvement Mobility Comfort Precision by 2005 “Adding Quality to People’s Lives” CHF m 130 - 17 * 14 120 110 24 100 90 10 80 25 70 60 50 44 100 40 30 20 10 0 Structural Streamling of EDM Futura Sourcing Sales Admin. Divestments Total projects business groups * EBIT reduction from divested acti
Slide 16: Implementation of structural programme (1)
Implementation of structural Mobility Comfort Precision programme (1) “Adding Quality to People’s Lives” ■ All measures are clearly defined ■ All three corporate groups have identified areas with cost savings potential and have established detailed action plans (bottom-up) ■ Structural programme alr
Slide 17: Implementation of structural programme (2)
Implementation of structural Mobility Comfort Precision programme (2) “Adding Quality to People’s Lives” ■ 3 additional structure projects at Manufacturing Technology (Agie Charmilles) were announced on 7th October 2003 – Closure of CT Manufacturing Corp., Owosso (USA), and Elox Corp. and Bostomatic
Slide 18: Headcount reduction
Headcount reduction Mobility Comfort Precision “Adding Quality to People’s Lives” ■ Measures will result in workforce reduction – About 1000 employees or 8% of entire workforce are affected – Georg Fischer will cooperate with employee representatives to find socially acceptable solutions ■ Measures
Slide 19: Adding Quality to People's Lives
Mobility Comfort Precision “Adding Quality to People’s Lives” MaPla_Präs_031003-e.ppt 19
Slide 20: Financial one-off effects
Financial one-off effects Mobility Comfort Precision “Adding Quality to People’s Lives” ■ Structural programme will result in one-off expenses of CHF 130 m – CHF 80 m of which are cash costs (Pay-back 1.3 years for EBIT increase of CHF 100 m p.a.) ■ Against this, divestments are expected to – genera
Slide 21: Results 2003, 2004, 2005
Results 2003, 2004, 2005 Mobility Comfort Precision “Adding Quality to People’s Lives” ■ 2003: Estimated operating profit of Group in line with the outlook in our semi-annual report ■ 2003: Result affected by one-off effects: – One-off expenses (incl. provisions) of approx. CHF 110 m – Impairment of
Slide 22: Net financial debt
Net financial debt Mobility Comfort Precision “Adding Quality to People’s Lives” ■ Divestments reduce net financial debt by CHF 150 m ■ Cash-out for restructuring programme: CHF 80 m ■ Higher free cash flow starting in 2004 ■ Target: Approx. CHF 300 m reduction of net financial debt by end 2005 MaPl
Slide 23: Strengthening capital base
Strengthening capital base Mobility Comfort Precision “Adding Quality to People’s Lives” ■ Subordinated convertible bond strengthens capital base further – Total amount CHF 120 – 150 m – Tradable subscription rights for GF shareholders – Final conditions to be announced later ■ Creation of condition
Slide 24: Adding Quality to People's Lives
Mobility Comfort Precision “Adding Quality to People’s Lives” MaPla_Präs_031003-e.ppt 24
Slide 25: Summary
Summary Mobility Comfort Precision “Adding Quality to People’s Lives” ■ Top-quality products and first-class market position ■ A comprehensive package of measures for a sustainable increase in the operating profit is already being implemented – EBIT 2005 higher by CHF 100 m – EBIT improvement starti
Slide 26: CEO quote on structural programme
Mobility Comfort Precision “Adding Quality to People’s Lives” "By implementing the structural programme , Georg Fischer will substantially enhance its value and bring about a sustainable improvement in Kurt E. Stirnemann, its earnings and net debt." CEO Georg Fischer MaPla_Präs_031003-e.ppt 26
Slide 27: Disclaimer
Disclaimer Mobility Comfort Precision “Adding Quality to People’s Lives” This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for purchase or sell any investment and neither it nor anything it contains shall form the basis o