Slide 1: Media & Analysts' Conference
Media & Analysts’ Conference Tornos Holding Ltd. Zurich, March 11, 2019 Media and Analysts’ Conference Speakers François Frôté – Chairman of the Board Bruno Edelmann – Chief Financial Officer Michael Hauser – Chief Executive Officer Media and Analysts' Conference March 11, 2019 2
Slide 2: Agenda
Media an Analysts’ Conference Agenda Welcome Overall Review François Frôté, Chairman Financial Results 2018 Bruno Edelmann, CFO Strategy 2018-2020 – Status update Michael Hauser, CEO Questions and Answers Media and Analysts' Conference March 11, 2019 3 Overall Review François Frôté – Chair
Slide 3: Overall Review: Key Financials
Overall Review Key Financials 2018/2017 in MCHF 2018 2017 Net sales 214.9 178.8 EBIT 15.5 9.5 Net result 15.3 8.2 Media and Analysts' Conference March 11, 2019 5 Overall Review Key Financials prior years in MCHF 2018 2005 Net sales 214.9 219.7 EBIT 15.5 14.2 EBIT margin 7.2% 6.5% in MCHF 2015 2010 N
Slide 4: Service Sales 2009-2018
Overall Review Service Sales 2009 – 2018 (in CHF and % of Total Sales) 50 35% 45 30% 25% 40 20% MCHF 35 15% 30 10% 25 5% 20 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 SAV % Total Sales Media and Analysts' Conference March 11, 2019 7 Financial Results 2018 Bruno Edelmann – Chief Financial O
Slide 5: Financial Results 2018: Summary and Order Intake
Financial Results 2018 Summary in MCHF 2018 2017 Diff. in % Order Intake 245.0 207.0 38.0 18.4% Net Sales 214.9 178.8 36.1 20.2% EBITDA 19.3 12.9 6.4 50.4% in % of Net sales 9.0% 7.2% EBIT 15.5 9.5 6.0 63.0% in % of Net sales 7.2% 5.3% Net Result 15.3 8.2 7.1 85.8% in % of Net sales 7.1% 4.6% Free c
Slide 6: Order Intake by Regions and Industries
Financial Results 2018 Order Intake Machines - Regions 2017 2018 10% 9% 15% Europe 13% Asia Americas 75% 78% Europe remains the core region for Tornos Gratifying increase in order intake in Switzerland Less orders from Asia, mainly from outside the Greater China region Significant increase i
Slide 7: Net Sales and Product Lines
Financial Results 2018 Net Sales 250 214.9 200 178.8 +20.2% 150 MCHF 100 50 0 2017 2018 Second year with double-digit increase in Net Sales Media and Analysts' Conference March 11, 2019 13 Financial Results 2018 Net Sales – Product Lines 2017 2018 3% 2% 22% 22% Machines Switzerland Machines Asia 53%
Slide 8: Income Statement
Financial Results 2018 Income Statement – 1/2 in % of in % of in MCHF 2018 Sales 2017 Sales Net sales 214.9 178.8 Gross profit 73.6 34.3% 61.9 34.6% Marketing and sales -30.3 -14.1% -27.3 -15.2% General and administrative expense -17.9 -8.3% -16.4 -9.2% Research and development -10.1 -4.7% -10.4 -5.
Slide 9: EBITDA to EBIT and Change in Net Result
Financial Results 2018 EBITDA to EBIT in % of in % of in MCHF 2018 Sales 2017 Sales EBITDA 19.3 9.0% 12.9 7.2% Depreciation and amortization -3.8 -1.8% -3.4 -1.9% EBIT 15.5 7.2% 9.5 5.3% EBITDA +CHF 6.4 million and EBIT +CHF 6,0 million compared to PY figures Media and Analysts' Conference March 11,
Slide 10: Personnel Expenses and FTEs per Region
Financial Results 2018 Personnel Expenses 70 770 65,1 750 65 730 59,1 59,3 59,2 728 710 60 56,4 690 668 MCHF FTEs 55 657 670 631 650 50 630 633 610 45 590 570 40 550 2014 2015 2016 2017 2018 Personnel expenses FTEs (w/o apprentices) Average number of FTEs in 2018 was 692 (2017: 644) Sales per FTE in
Slide 11: Balance Sheet and Cash Flow Statement
Financial Results 2018 Balance Sheet in % of in % of in MCHF 31.12.2018 Total BS 31.12.2017 Total BS Cash and cash equivalents 35.9 23.7 Trade receivables 24.7 20.5 Inventories 81.6 68.2 Other current assets 6.1 4.8 Current assets 148.3 84.1% 117.2 81.8% Non-current assets 27.9 15.9% 26.1 18.2% Fina
Slide 12: Outlook and Calendar of Events 2019
Financial Results 2018 Outlook Look back on 2018 with satisfaction; economy was thriving Political uncertainties and protectionist trends dimmed the outlook CHF strengthened against EUR Automotive industry still positive; trend towards electric and hybrid cars Medical and electronics indus
Slide 13: Strategy 2018-2020: Six Strategic Thrusts
Strategy 2018-2020 Status update Michael Hauser – Chief Executive Officer Strategy 2018-2020 Six strategic thrusts Internationalize Strengthen our Grow through our business. flexibility. Innovation. Establish Tornos’ Enhance our operational Deliver unique services as a excellence. solutions for targ
Slide 14: Priorities 2018 Review: Ensure Deliveries
Strategy 2018-2020 Priorities and outlook for 2018: A short review * * Slide used at the 2018 Media & Analysts’ Conference. Media and Analysts' Conference March 11, 2019 27 Priorities and outlook for 2018: A short review Ensure deliveries: e.g. MultiSwiss production Units produced Sales MCHF + 75% +
Slide 15: Ramp Up Taiwan; Concentrate Moutier Activities
Priorities and outlook for 2018: A short review Ramp up Taiwan operation Media and Analysts' Conference March 11, 2019 29 Priorities and outlook for 2018: A short review Concentrate activities in Moutier on one location Extension of assembly area Media and Analysts' Conference March 11, 2019 30
Slide 16: Invest in Infrastructure, Automation and Machinery
Priorities and outlook for 2018: A short review Invest in infrastructure, automation and machinery Mill-Turn center (Moutier/CH) Media and Analysts' Conference March 11, 2019 31 Priorities and outlook for 2018: A short review Invest in infrastructure, automation and machinery Pallet handling system
Slide 17: Establish Worldwide Customer Centers
Priorities and outlook for 2018: A short review Establish worldwide Customer Centers Welcome Center and meeting hub (Moutier/CH) Media and Analysts' Conference March 11, 2019 33 Priorities and outlook for 2018: A short review Establish worldwide Customer Centers Customer Center (Shanghai/CN) Media a
Slide 18: Launch New Products; Strategy At a Glance
Priorities and outlook for 2018: A short review Launch new products SwissNano 7 Swiss DT 26 S Media and Analysts' Conference March 11, 2019 35 Strategy 2018-2020 At a glance Internationalize our business. Strengthen our flexibility. Grow through innovation. Establish Tornos’ services as a di
Slide 19: Internationalize Our Business
Strategy 2018-2020 Internationalize our business FTEs* Production Sales 30% 44% 47% 45% 55% 50% 20% 9% CH CH Temps ROW CH ROW CH EU ROW * FTE: Full-time equivalent Media and Analysts' Conference March 11, 2019 37 Strategy 2018-2020 Internationalize our business 38 agents 7 Sales and Service 18 Offic
Slide 20: Internationalize; Strengthen Our Flexibility
Strategy 2018-2020 Internationalize our business Tornos Jump Team Kąty Wrocławskie/Poland 22 agents Media and Analysts' Conference March 11, 2019 39 Strategy 2018-2020 Strengthen our flexibility (Personnel expenses) 70 +9.9% 65.1 60 59.2 10.4 6.7 50 +4.2% 40 MCHF 30 52.5 54.7 20 10 0 2017 2018 Fixed
Slide 21: Grow Through Innovation; Services as Differentiator
Strategy 2018-2020 Grow through innovation Product portfolio 97% 3% Products New products older Products Existing products Media and Analysts' Conference March 11, 2019 41 Strategy 2018-2020 Establish Tornos’ services as a differentiator Media and Analysts' Conference March 11, 2019 42
Slide 22: Enhance Operational Excellence
Strategy 2018-2020 Enhance operational excellence Assembly (hours) Throughput time (days) - 73% - 68% MultiSigma M-Sigma MultiSwiss M-Swiss MultiSigma M-Sigma MultiSwiss M-Swiss Media and Analysts' Conference March 11, 2019 43 Strategy 2018-2020 Deliver unique solutions for targeted market segments
Slide 23: Unique Solutions: Automotive
Strategy 2018-2020 Deliver unique solutions for targeted market segments Automotive Braking system Media and Analysts' Conference March 11, 2019 45 Strategy 2018-2020 Deliver unique solutions for targeted market segments Automotive Electric motor Media and Analysts' Conference March 11, 2019 46
Slide 24: Unique Solutions: Electronics
Strategy 2018-2020 Deliver unique solutions for targeted market segments Electronics Connectors Media and Analysts' Conference March 11, 2019 47 Strategy 2018-2020 Deliver unique solutions for targeted market segments Electronics Household appliances Media and Analysts' Conference March 11, 2019 48
Slide 25: Unique Solutions: Micromechanics
Strategy 2018-2020 Deliver unique solutions for targeted market segments Micromechanics Smartwatch Media and Analysts' Conference March 11, 2019 49 Strategy 2018-2020 Deliver unique solutions for targeted market segments Micromechanics Motor body Media and Analysts' Conference March 11, 2019 50
Slide 26: Unique Solutions: Medical & Dental
Strategy 2018-2020 Deliver unique solutions for targeted market segments Medical & Dental Spine Media and Analysts' Conference March 11, 2019 51 Strategy 2018-2020 Deliver unique solutions for targeted market segments Medical & Dental Implants Media and Analysts' Conference March 11, 2019 52
Slide 27: Looking Ahead: Priorities and Outlook for 2019
Looking ahead Priorities and outlook for 2019 Process orders and deliver machines on time. Increase production output. Expand assembly activities in China. Establish worldwide Customer Centers and global roll-out of Tornos Academy. Launch new products. Media and Analysts' Conference March
Slide 28: Questions & Answers
QUESTIONS & ANSWERS Tornos Holding Ltd. Inquiries Investor and media relations: Bruno Edelmann +41 32 494 42 33 investors@tornos.com / communications@tornos.com For more details on Tornos Group, please refer to www.tornos.com Media and Analysts' Conference March 11, 2019 56
Slide 29: Disclaimer
Tornos Holding Ltd. Disclaimer Tornos Holding Ltd. is confirming its best efforts to present accurate and up- to-date information in this document, Tornos Holding Ltd. gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and