Gurit Holding Ag · SIX:GURN

Gurit — FY2016 Earnings Presentation

28 slides from Gurit's earnings presentation, Mar 8, 2017

1. Slide 1: Gurit FY 2016 Results

   Gurit FY 2016 Results Zurich, March 8, 2017

2. Slide 2: Forward-looking statements disclaimer

   This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such statements are made on the bas

3. Slide 3: Gurit Strategy 2020

   Gurit Strategy 2020 Gurit ————=*{*£z&=Z=“Z=_£ =|

4. Slide 4: Gurit Strategy 2020

   Gurit Strategy 2020  Sales Growth ambition by 2020 at ca. CHF 500 million  Organic – ca. CHF450 million  Acquisitive – target CHF 50-100 million  Operating Profitability ambition by 2020 is to maintain 8-10% RoS  Key Markets for Gurit Advanced Composites  Wind, Aerospace and Automotive – 3 key

5. Slide 5: Gurit Strategy 2020 – Key Stepping Stones

   Gurit Strategy 2020 – Key Stepping Stones  Innovation: New product properties and efficiency initiatives (Growth and cost reduction effects)  Aero: US OEM Qualification (Growth and profitability effect 2017 - 2020)  Europe: Underutilized site consolidations (Cost reduction 2018+)  Tooling: New T

6. Slide 6: Gurit FY 2016 Business Update

   Gurit FY 2016 Business Update

7. Slide 7: Key Business Notes FY 2016

   Key Business Notes FY 2016  Profitability & Growth:  Best operating profit margin in more than 15 years, profitability target range substantiated for the second consecutive year  Stable net sales generation in a challenging market environment  Wind market decline by -14% globally, Gurit wind mat

8. Slide 8: Key Financial Notes FY 2016

   Key Financial Notes FY 2016  Growth: +0.3% (-2.1% in reported CHF) to CHF 352.0 m (2015: CHF 359.4 m)  Op. Profit and RoS: CHF 36.8 m (2015: CHF 33.0 m) and 10.5% (2015: 9.2%) - best operating profit margin in more than 15 years  Investment on lower level than 2015:  Capex of CHF 10.5 m (2015: C

9. Slide 9: Development by Key Markets

   Development by Key Markets Gurit ————=*{*£z&=Z=“Z=_£ =| |

10. Slide 10: Wind Energy – Market Environment

    Wind Energy – Market Environment GWEC Projected Global Annual Capacity* 100 80 72 75.5 79.5 63 68 Americas 60 52 54.6 40 Asia / Pacific 20 0 EMEA 2014 2015 2016 2017 2018 2019 2020 * Source: GWEC Global Wind Statistics April 22, 2016, and GWEC Global Wind Statistics February 10, 2017  2016 saw a co

11. Slide 11: Wind Energy Materials – Results & Outlook

    Wind Energy Materials – Results & Outlook Results & Achievements FY 2016  Net sales: CHF 149.0 m (FY 2015: CHF 155.4 m)  Decline by 4 % due to weaker Chinese market (-24%) Offset in India and US/EU overall not sufficient for Gurit to grow  Operations: Balsa capacity expansion in Ecuador and China

12. Slide 12: Tooling – Results & Outlook

    Tooling – Results & Outlook Results & Achievements FY 2016  Net sales: CHF 69.0 m (FY 2015: CHF 59.0 m)  Increase by 16.9%, less prone to newly installed capacity due to pre-investments into longer wind blade moulds  Operations:  Completion of factory expansion in China  Set-up of production fa

13. Slide 13: Aerospace – Market Environment

    Aerospace – Market Environment Aircraft Deliveries by Type* 750 688 629 635 A380 500 A350 A330 250 Single aisle 0 2014 2015 2016 * Source: Airbus Order Book  Commercial aerospace market expected to continue to grow at a CAGR of 4.6% to 2020 according to DTTL / Deloitte Global  Use of advanced comp

14. Slide 14: Aerospace – Results & Outlook

    Aerospace – Results & Outlook Results & Achievements FY 2016  Net sales: CHF 47.6 m (FY 2015: CHF 42.8 m)  Increase by 11.1% due to stronger build rates and demand situation in Europe  Operations: new prepreg tower in Kassel successfully brought into operation  New product development with bette

15. Slide 15: Other Material Markets – Market Environment

    Other Material Markets – Market Environment Market demand  European Marine luxury and leisure markets show continued low build rates.  Ongoing positive Automotive material qualifications, market growth yet lower than expected.  Other material markets (construction and industrial): project-driven

16. Slide 16: Other Material Markets – Results & Outlook

    Other Material Markets – Results & Outlook Results & Achievements FY 2016  Net sales: CHF 69.0 m (FY 2015: CHF 75.7 m)  Decrease by 1.8% due to Marine project delays in Europe and slower than expected technology adoption in automotive materials  Positive sales development in other industrial mark

17. Slide 17: Composite Components – Results & Outlook

    Composite Components – Results & Outlook Results & Achievements FY 2016  Net sales: CHF 17.4 m (FY 2015: CHF 26.4 m)  Further anticipated drop of -34.3% due to known contract expirations over 2015  Operations:  Successful series production for major contract  New four-year automotive body panel

18. Slide 18: Financial Results FY 2016

    Financial Results FY 2016 Gurit ————=*{*£z&=Z=“Z=_£ =| |

19. Slide 19: Net Sales Analysis by Markets

    Net Sales Analysis by Markets  Overall stable net sales year- Net sales in MCHF over-year despite a decline of newly installed wind capacity of 359.4 352.0 -14% globally and -24% in Materials Components Tooling China  Wind market shortfall in China 177.8 181.6 182.3 169.7 was partially offset by a

20. Slide 20: Operating Profit and RONA Development

    Operating Profit and RONA Development Operating profit (% Net sales) RONA (incl. Goodwill) • Operating profit at 10.5% of net sales, best operating profit margin since more than 15 years, and 15.9% substantiating the profitability 15.4% 14.3% 16.1% target of 8-10% for the second 13.7% 12.4% consecut

21. Slide 21: Operating Profit Bridge FY 2015 to FY 2016

    Operating Profit Bridge FY 2015 to FY 2016 10.5% 9.2% Slide 21 Corporate

22. Slide 22: Income Tax Expense

    Income Tax Expense CHFm 11.0 28% 10.0 9.0 23% 1.7 -0.8 8.0 20% 1.8 7.0 6.0 5.0 10.0 4.0 8.3 7.2 3.0 2.0 1.0 0.0 Tax expense at Not capitalized tax Other effects, Actual tax expense Not recoverable Actual average expected losses net before WHT WHT on IC tax expense rates dividends • Income tax expens

23. Slide 23: Profit and Loss

    Profit and Loss Consolidated P&L 2016 2015 Variance MCHF % NS MCHF % NS MCHF %-points Net sales 352.0 100.0% 359.4 100.0% -7.4 0.0% Gross margin 180.9 51.4% 186.2 51.8% -5.3 -0.4% Personnel expense -80.5 -22.9% -83.8 -23.3% 3.3 0.4% Other operating expenses -63.6 -18.1% -69.4 -19.3% 5.8 1.2% Operati

24. Slide 24: Balance Sheet

    Balance Sheet CONSOLIDATED ASSETS Dec 2016 Dec 2015 Variance MCHF % MCHF % MCHF %-points Cash and cash equivalents 38.6 16% 29.8 12% 8.8 4% Trade receivables 61.3 25% 65.2 26% -3.9 -1% Inventories 46.2 19% 51.2 20% -5.0 -2% Other current assets 20.5 8% 20.2 8% 0.3 0% Deferred income tax assets 2.9 1

25. Slide 25: Cash Flow

    Cash Flow Group Consolidated Cash Flow 2016 2015 Variance MCHF MCHF MCHF EBIT 36.8 33.0 3.8 Depreciation, amortisation, impairment 11.7 9.6 2.2 Change in working capital 0.8 0.4 0.4 Income tax paid -10.7 -5.8 -4.9 Other cash flow from operating activities -0.8 0.0 -0.8 Net cash flows from operating

26. Slide 26: Financial Results FY 2016 Conclusion

    Financial Results FY 2016 Conclusion

27. Slide 27: Outlook 2017

    Outlook 2017  Net Sales  Low single-digit level growth expected for 2017  Operating Profitability  Gurit strives to further substantiate its target range of 8-10% in 2017 Slide 27 Corporate

28. Slide 28: Gurit Holding AG contact details

    Gurit Holding AG c/o Gurit Services AG Thurgauerstrasse 54 8050 Zurich Switzerland

Gurit — FY2016 Earnings Presentation on 6ix