Rieter Holding Ag · SIX:RIEN
Rieter — FY2021 Earnings Presentation
39 slides from Rieter's earnings presentation, Mar 9, 2022
Slide 1: Results 2021
Results 2021 Media and Investor Presentation, March 9, 2022 Dr. Norbert Klapper, CEO Kurt Ledermann, CFO
Slide 2: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy Implementation 04 Outlook Results 2021 . Media & Investor Presentation . March 9, 2022 Page 2
Slide 3: Key Messages
Key Messages Financial Year 2021 ‒ Order intake of CHF 2 225.7 million at record level ‒ Sales of CHF 969.2 million despite bottlenecks in the supply chains ‒ EBIT margin of 4.9% of sales ‒ Net profit of 3.3% of sales ‒ Milestones achieved in strategy implementation ‒ Proposed dividend of CHF 4.00 p
Slide 4: Order Intake by Half-Year
Order Intake by Half-Year Rieter achieved a total order intake of CHF 2 225.7 million in the 2021 financial year. CHF million 1’250 ‒ Exceptionally high order intake is broadly supported at the global level. 975 ‒ Orders came primarily from Turkey, India, Latin America, Uzbekistan, China and Pakista
Slide 5: Rieter Group – Order Intake 2021: Market
Rieter Group – Order Intake 2021 Record level for Rieter – Market (1) Market Technology System ‒ Staple fiber mill consumption China 2018: ~ 23 million tons ‒ Domestic demand: ~ 50% ‒ Production of one million ton of yarn triggers investments in spinning equipment of CHF 1 billion ‒ 2021 investments
Slide 6: Rieter Group – Order Intake 2021: Market (2)
Rieter Group – Order Intake 2021 Record level for Rieter – Market (2) Average 2011-2020 Financial Year 2021 1. China 1. Turkey 2. Turkey 2. India 3. India 3. Uzbekistan 4. Uzbekistan 4. China 5. USA 5. Pakistan Total: CHF 939.7 million1 Total: CHF 2 225.7 million 1 Average of the published annual or
Slide 7: Rieter Group – Order Intake 2021: Technology
Rieter Group – Order Intake 2021 Record level for Rieter – Technology Market Technology System ‒ Yarn is a commodity (> 90%) ‒ Target: minimum cost per kg yarn at a given quality ‒ Cost elements: raw material, energy, labor, depreciation ‒ Rieter technology provides lowest cost per kg yarn ‒ Rieter
Slide 8: Rieter Group – Order Intake 2021: System
Rieter Group – Order Intake 2021 Record level for Rieter – System Market Technology System ‒ Ring- and compact-spinning technology > 80% of global capacity ‒ Recent Rieter innovations improved system attractiveness: ‒ Machine performance: Card C 80 and comber E 90 ‒ Automation: ROBOspin ‒ Digitizati
Slide 9: Sales by Half-Year
Sales by Half-Year Rieter achieved a total sales of CHF 969.2 million in the 2021 financial year. CHF million 569 ‒ CHF 569 million sales in HY2 2021 ‒ Despite bottlenecks in material supplies and freight 416 capacities 401 344 318 255 HY1 2019 HY2 2019 HY1 2020 HY2 2020 HY1 2021 HY2 2021 Results 20
Slide 10: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy Implementation 04 Outlook Results 2021 . Media & Investor Presentation . March 9, 2022 Page 10
Slide 11: Financial Highlights 2021
Financial Highlights 2021 CHF million (except dividend) 2021 2020 Comments Order intake 2 225.7 640.2 ‒ Material catch-up effect and major regional shift in demand ‒ Sales recovered despite bottlenecks in material supplies and Sales 969.2 573.0 freight capacities ‒ Gross margin increased to 28.5% du
Slide 12: EBIT
EBIT CHF million -5.9 2.9 -28.7 21.0 47.6 142.7 -84.4 2020 Gross profit Research & Selling, general Other income Other expenses 2021 development & administrative incl. CHF 4.4 million expenses expenses transaction costs Results 2021 . Media & Investor Presentation . March 9, 2022 Page 12
Slide 13: Balance Sheet − Key Figures
Balance Sheet − Key Figures Strong balance sheet CHF million 31/12/2021 31/12/2020 ‒ Negative net working capital due to customer down payments from high order intake Cash and cash equivalents 248.7 282.3 ‒ Non-current assets impacted by acquisition Net working capital -80.3 -4.4 from Saurer (CHF -3
Slide 14: Free Cash Flow
Free Cash Flow Free cash flow amounted to CHF 128.1 million in 2021. CHF million 2021 2020 Free cash flow was mainly driven by the following effects: Net profit 31.7 -89.8 Depreciation and amortization 37.4 37.7 ‒ Sales volume +/- Change in net working capital 86.4 12.9 ‒ Increase in advance payment
Slide 15: Net Profit and Dividend Proposal
Net Profit and Dividend Proposal CHF ‒ Board of Directors proposal: dividend of CHF 4.00 per share 5.00 5.00 ‒ Payout ratio of 57% 4.50 4.00 0.00 2017 2018 2019 2020 2021 Dividend per Share Results 2021 . Media & Investor Presentation . March 9, 2022 Page 15
Slide 16: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy Implementation 04 Outlook Results 2021 . Media & Investor Presentation . March 9, 2022 Page 16
Slide 17: Strategy Implementation
Strategy Implementation Rieter strategy – cornerstones ‒ Market leader in short-staple fiber spinning systems ‒ Number 1 in premium, number 2 or 3 in middle segment, market share ≥ 30% ‒ Premium segment: ‒ Lowest cost per kg yarn ‒ Combination of best machines, components, digitization and service ‒
Slide 18: Implementation of the Acquisition of the Three Saurer Businesses: Automatic Winder
Implementation of the Acquisition of the Three Saurer Businesses Automatic Winder ‒ Acquisition of Saurer’s third business (automatic winder) leads to a significant increase in the attractiveness of Rieter’s ring and compact-spinning systems and is expected to be completed in the first half of 2022.
Slide 19: Implementation of the Acquisition of the Three Saurer Businesses: Accotex and Temco
Implementation of the Acquisition of the Three Saurer Businesses Accotex and Temco ‒ Consolidation effective from December 1, 2021 ‒ With the acquisition of Accotex (elastomer components for spinning machines) and Temco (bearing solutions for filament machines), Rieter is strengthening its market po
Slide 20: Strategy Implementation: Rieter CAMPUS
Strategy Implementation ‒ On September 8, 2021 the foundation stone was laid for the Rieter CAMPUS in Winterthur, which includes a customer and technology center as well as an administration building. ‒ Thus, Rieter is creating a state-of-the-art and creative working environment, ensuring access to
Slide 21: Agenda
Agenda 01 Key Messages 02 Financial Results 03 Strategy Implementation 04 Outlook Results 2021 . Media & Investor Presentation . March 9, 2022 Page 21
Slide 22: Outlook
Outlook ‒ Rieter anticipates a gradual normalization of the demand for new systems in the coming months. The company expects demand for wear and spare parts to remain at a good level due to high capacity utilization at spinning mills. ‒ For the full year 2022, due to the high order backlog and the c
Slide 23: Margin Protection
Margin Protection ‒ Components and After Sales ‒ Machines & Systems – backlog going into 2023/2024 ‒ Price increases so far >15% ‒ Efficiency improvements ‒ Price adjustment clause Results 2021 . Media & Investor Presentation . March 9, 2022 Page 23
Slide 24: 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 25: Appendix
Appendix Results 2021 . Media & Investor Presentation . March 9, 2022 Page 25
Slide 26: Order Intake by Business Group
Order Intake by Business Group All three Business Groups benefited from the high level of demand thanks to their innovative product portfolios. CHF million +248% ‒ Business Group Machines & Systems 2’226 Focus of demand was on ring and compact-spinning systems. ‒ Business Groups Components and After
Slide 27: Sales by Business Group
Sales by Business Group Despite bottlenecks in material supplies and freight capacities, sales performance was better than expected. CHF million +69% ‒ Despite the challenges in the supply chain, the 969 Business Group Machines & Systems achieved sales of CHF 590.3 million, double the previous year’
Slide 28: Sales Development by Region
Sales Development by Region CHF million +69% ‒ Sales increased in all regions, with the exception of 969 the region Africa. ‒ The highest year-on-year growth of 148% was 319 achieved in India, followed by North and South America (+126%) and the Asian countries (+72%), 573 135 excluding China, India
Slide 29: Workforce Development
Workforce Development FTE1 ‒ Increase due to Accotex and Temco acquisition +26% ‒ Capacities increase due to the ramp-up of the 5’753 business 846 4’563 147 +11% 4’907 4’416 2020 2021 Temporaries Permanent 1 FTE = Full time equivalent, excluding apprentices, including temporary employees Results 202
Slide 30: Operating Result Before Restructuring Charges by Business Group
Operating Result Before Restructuring Charges by Business Group CHF million 2021 2020 Comments ‒ Higher sales 3rd at CHF 590.3 million vs. CHF 295.8 Machines & Systems -3.7 -71.3 million in 2021 ‒ Better margins, innovation program continued ‒ Higher sales 3rd at CHF 231.5 million vs. CHF 174.3 Comp
Slide 31: Order Intake by Business Group
Order Intake by Business Group Difference in CHF million 2021 2020 Difference local currency Rieter 2 225.7 640.2 248% 247% Machines & Systems 1 708.6 363.9 370% 369% Components 296.0 169.1 75% 74% After Sales 221.1 107.2 106% 108% CHF million Difference in (unaudited) HY2 2021 HY1 2021 Difference l
Slide 32: Sales by Business Group
Sales by Business Group Difference in CHF million 2021 2020 Difference local currency Rieter 969.2 573.0 69% 69% Machines & Systems 590.3 295.8 100% 99% Components 231.5 174.3 33% 32% After Sales 147.4 102.9 43% 45% CHF million Difference in (unaudited) HY2 2021 HY1 2021 Difference local currency Ri
Slide 33: Sales by Regions
Sales by Regions 2021 2020 Difference Difference in CHF million local currency Rieter 969.2 573.0 69% 69% Asian countries1 318.7 184.8 72% 72% China 135.3 92.8 46% 41% India 126.0 50.8 148% 151% Turkey 182.3 122.0 49% 50% North and South America 149.9 66.4 126% 128% Europe 43.3 38.4 13% 13% Africa 1
Slide 34: Financial Key Figures
Financial Key Figures CHF million FY 2021 HY2 2021 HY1 2021 FY 2020 Order Intake 2 225.7 1 250.4 975.3 640.2 Sales 969.2 568.7 400.5 573.0 EBITDA 85.0 57.9 27.1 -46.7 EBITDA margin (of sales) 8.8% 10.2% 6.8% -8.2% EBIT 47.6 38.6 9.0 -84.4 EBIT margin (of sales) 4.9% 6.8% 2.2% -14.7% Net profit 31.7
Slide 35: Net Working Capital
Net Working Capital CHF million 31/12/2021 31/12/2020 Inventories 249.6 192.5 Trade receivables 122.0 50.4 Other current receivables 83.2 29.6 Trade payables -117.2 -47.7 Advance payments -211.4 -95.5 Other current liabilities -206.5 -133.7 Net working capital -80.3 -4.4 Results 2021 . Media & Inves
Slide 36: Return on Net Assets (RONA)
Return on Net Assets (RONA) CHF million 31/12/2021 31/12/2020 2021 Difference Liquid funds 249.4 283.2 -33.8 Inventories and receivables 454.9 272.5 +182.4 Assets classified as held for sale 14.7 0.0 +14.7 Non-current assets 717.4 407.8 +309.6 Total assets 1 436.4 963.5 +472.9 Current liabilities (e
Slide 37: Key Data by Share
Key Data by Share Rieter registered shares of CHF 5 nominal value 31/12/2021 30/06/2021 31/12/2020 Bloomberg: RIEN SW, Thompson Reuters: RIEN.S Shares outstanding excluding own shares (end of period) 4 494 024 4 504 419 4 466 303 Average shares (of period) 4 496 214 4 491 418 4 479 637 Share price (
Slide 38: Change to the Group Executive Committee and Board of Directors
Change to the Group Executive Committee and Board of Directors Change to the Group Executive Committee With effect from March 1, 2021, the Board of Directors of Rieter Holding AG appointed Roger Albrecht as Head of the Business Group Machines & Systems and a member of the Group Executive Committee.
Slide 39: Financial Calendar
Financial Calendar Annual General Meeting 2022 April 7, 2022 Semi-Annual Report 2022 July 19, 2022 Investor Update 2022 October 21, 2022 Publication of sales 2022 January 25, 2023 Deadline for proposals regarding the agenda of the Annual General Meeting February 17, 2023 Results press conference 202