Feintool International Holding Ag · SIX:FTON
Feintool International — FY2022 Earnings Presentation
37 slides from Feintool International's earnings presentation, Feb 28, 2023
Slide 1: Annual Media Conference Financial Year 2022
Feintool Group Annual Media Conference Financial Year 2022
Slide 2: Agenda
AGENDA 9:30 a.m. Arrival and welcome coffee 10:00 a.m. Start, greeting afterwards Karin Labhart, CCO Year in review Torsten Greiner, CEO 10:30 – 10:50 a.m. Financial results Samuel Künzli, CFO 10:50 – 11:15 a.m. Outlook Torsten Greiner 11:15 – 11:45 a.m. Q&A All 11:45 – 01:00 p.m. Stand-up buffet an
Slide 3: Leadership: Introduction to new CEO Torsten Greiner
LEADERSHIP Introduction to new CEO Torsten Greiner Education Degree in Mechanical Engineering, University of Hanover, trained machinist Career Since 2023 CEO of the Feintool Group, Head of System Parts segment 2011 – 2022 Edscha Holding, CEO 2002 – 2011 Brose Schließsysteme GmbH & Co KG, General
Slide 4: Year in review
Year in review
Slide 5: 2022 Market Environment
2022 MARKET ENVIRONMENT Difficult environment, additional challenges Increased material and logistics costs Material shortages and supply chain issues Sharp rise in energy costs High interest rates with simultaneous strong appreciation of the Swiss franc Significant increase in labor costs
Slide 6: Feintool Group Highlights
FEINTOOL GROUP HIGHLIGHTS Successful integration – record value of orders received in 2022 Record orders received in 2022 amounting to CHF 1 billion lifetime value achieved in the parts business Successful integration of Kienle + Spiess GmbH, further major contracts won Price increases could b
Slide 7: Incoming Orders in 2022
INCOMING ORDERS IN 2022 Record incoming order driven by stamping technology Lifetime 1.007 Mio. EUR/Year 450 400 350 300 250 200 412 368 [Mio. EUR/Jahr] 150 100 227 50 0 Fineblanking Forming E-Stamping Feintool Annual Media Conference, February 28, 2023 6
Slide 8: System Parts Europe
SYSTEM PARTS EUROPE The positive effects of the acquisition are materializing as expected Market reacted positively to the acquisition of K+S: Major order for electric main drive with lifetime value of over CHF 100 million acquired K+S was profitable in the 2022 financial year Technology devel
Slide 9: System Parts USA
SYSTEM PARTS USA Major orders received in the United States System Parts USA surpassed the $200 million sales mark for the first time in 2022 Electrification in the US is progressing more slowly than in Europe and Asia America is the only region where new developments for transmissions are bei
Slide 10: System Parts Asia
SYSTEM PARTS ASIA Considerable potential for new technologies and growth The Chinese site in Taicang was expanded with the aim of increasing capacity in the field of electrolamination stamping Agreement with Sitec for a bipolar plate manufacturing concept Area capacities for production of bipo
Slide 11: Fineblanking Technology
FINEBLANKING TECHNOLOGY Improved inquiry situation and hot list for press systems Increased Press sales in the second half of the year, in particular the FB one press and XFT generation Market environment remains difficult FB one is about to be delivered for Feintool site in Taicang for increa
Slide 12: Employees and Sustainability
EMPLOYEES AND SUSTAINABILITY Hard work and fair play are the key to success New employees of K+S successfully integrated Global talent management sustainably established Updated Code of Conduct adopted and will be implemented in 2023 Preparations for ESG rating started Feintool Annual Media
Slide 13: Financial results
Financial results
Slide 14: Preliminary Remarks
PRELIMINARY REMARKS Kienle + Spiess consolidated since March 1, 2022 On March 1, 2022, Feintool fully acquired the German company Kienle + Spiess GmbH together with its subsidiary Kienle + Spiess Hungary Kft. To increase transparency, the System Parts segment will be divided into the regions Eur
Slide 15: Sales
SALES Strong inorganic growth – organic growth driven by prices in CHF million 896,9 900 861,0 35,9 850 4,1 800 Growth 8.5% 750 Growth 217,5 700 Growth Growth 14.8% 12.7% 650 -22.3% 588,1 26,5 600 21,6 11,5 -8,4 550 500 100 50 0 Sales 2021 Technology System Parts USA System System Parts K+S Finance/
Slide 16: Sales by Application
SALES BY APPLICATION Feintool’s transformation is reflected in sales 2021 2022 In 2022, sales dependent on Industrial the internal combustion Auto BEV & 10% Industrial engine accounted for less Powertrain 17% Auto ICE 30% than 50% of the total agnostic Auto ICE 26% 43% Strong increase in industr
Slide 17: EBITDA
EBITDA EBITDA margin remains at roughly 10% EBITDA fell to CHF 85.7 million in the reporting period, corresponding in CHF million EBITDA to an EBITDA margin of 10.0% (PY: CHF 85.6 million, 14.5% margin) 86 There were three main reasons for this decline: 85 Rising inflation (especially energy,
Slide 18: EBITDA – Reconciliation 2021 to 2022
EBITDA – RECONCILIATION 2021 TO 2022 (WITHOUT ONE-OFF EFFECTS) Feintool achieved an EBITDA margin of around 10% in CHF million Margin Margin Margin Margin 14.5% 10.0% -15.9 % Margin Margin 12.6% 9.1% Margin 11.0% 90 85,6 19.8% -2,3 85,7 -2,2 80 -7,5 1,8 27,4 70 -17,2 60 50 40 30 20 10 0 EBITDA 2021
Slide 19: EBIT – Reconciliation 2021 to 2022
EBIT – RECONCILIATION 2021 TO 2022 (WITHOUT ONE-OFF EFFECTS) Margin pressure due to lower quantities and high input costs in CHF million Margin 5.9% Margin -21.7 % Margin 34,4 3.1% Margin Margin Margin 35 Margin 6.7% -2,1 8.0% 3.1% 4.4% 30 -7,3 -2,0 26,7 25 1,6 -12,6 14,6 20 15 10 5 0 EBIT 2021 Tech
Slide 20: Group Result
GROUP RESULT Clearly positive net income of CHF 16.5 million (1.9% of sales) in CHF million Negative one-off effects of 30 CHF 6.4 million (CHF 7.8 26,7 million negative non-cash 25 6,4 effect from joining the pension 20,3 20 fund) 5,8 16,5 15 2,0 Tax expense includes a positive one-off effect o
Slide 21: Balance Sheet: Assets
BALANCE SHEET Total assets increased due to the acquisition of Kienle + Spiess Assets 31.12.2022 31.12.2021 Difference Overall, total assets in m CHF in m CHF in m CHF increased to CHF 915.0 Cash and cash equivalents 78.6 51.8 26.8 million (December 31, 2021: Trade and other receivables 110.0 95.2
Slide 22: Balance Sheet: Liabilities
BALANCE SHEET Stable balance sheet and healthy shareholder’s equity thanks to equity offering Liabilities 31.12.2022 31.12.2021 Difference Shareholder’s equity in m CHF in m CHF in m CHF increased to CHF 540.5 Financial liabilities 120.7 172.5 -51.8 million Other liabilities 253.9 173.5 80.4 Equ
Slide 23: Shareholder's Equity
SHAREHOLDER’S EQUITY High equity ratio of roughly 60% in CHF million 550 16,5 21,6 16,0 0,2 540,5 The equity offering of 500 approximately CHF 200 450 196,5 million is the main driver of 400 the increase in equity 350 338,4 4,9 Net income of CHF 16.5 300 million and the IAS 19 250 revaluation of
Slide 24: Cash Flow
CASH FLOW Clearly positive operating free cash flow (FCF) of roughly CHF 27 million in CHF million Excluding the acquisition of 80 74,3 70 Kienle + Spiess (CHF 52.2 60 19,5 million), free cash flow would 50 have been positive. 40 28,0 30 26,7 Cash and cash equivalents 20 and available confirmed
Slide 25: Outlook
Outlook
Slide 26: Global Car Production
GLOBAL CAR PRODUCTION Good market outlook – transformation accelerating Number of vehicles produced up to 3.5 t total weight, worldwide Stable growth in passenger car CAGR production, return to pre-pandemic 2.6% 96 levels in 2025; CAGR +2.6% (2022 – 100 87 89 89 91 78 84 25% 30% 40% 2030) 80 74 13
Slide 27: Market Forecast – Regional Insights
MARKET FORECAST - FSP 09/2022 – REGIONAL INSIGHTS 35% 52% 62% Market share 35% 33% 35% 30% 4% 14% Technology change is accelerating rapidly. Globally Technology change is accelerating rapidly. Highest EV Technology shift is coming, but more moderately largest share of e-vehicles expected in 20
Slide 28: Outlook: Industrial Applications – Worldwide
OUTLOOK: INDUSTRIAL APPLICATIONS – WORLDWIDE Increasing demand for electric motors in industrial applications CAGR Increasing number of applications with electric drive, +7.2% for example – Ventilation systems Market volume ($ billion) – Air conditioning units – Heat pumps – Automation in building
Slide 29: Outlook: Wind Turbines – Worldwide
OUTLOOK: WIND TURBINES – WORLDWIDE Increasing demand for generators for wind turbines Wind turbines generate electricity by means of an electric CAGR motor (generator) Total capacity of new wind turbines (GW) +6.4% Rising demand for wind turbines driven by numerous countries’ requirements for th
Slide 30: Outlook: Electrolyzers – Worldwide
OUTLOOK: ELECTROLYZERS – WORLDWIDE Strongly increasing demand for electrolyzers for green hydrogen production Several industries require large amounts of green hydrogen for decarbonization (steel, cement, chemical industry, etc.) Total installed capacity (MW) Green hydrogen is produced using ele
Slide 31: Outlook: Batteries – Worldwide
OUTLOOK: BATTERIES - WORLDWIDE Fast growing traction battery market Approx. 100 new battery 4.000 factories in development Market volume Li-Ion batteries (GWh) worldwide 3.000 Strongly growing demand for CAGR +27% battery cell housings Feintool has the know-how 2.000 for large-scale production
Slide 32: Mega Trends in the Energy Sector – Supported by Feintool
MEGA TRENDS IN THE ENERGY SECTOR – SUPPORTED BY FEINTOOL Feintool Annual Media Conference, February 28, 2023 31
Slide 33: Conclusion
CONCLUSION Feintool successfully takes the opportunities of the transformation Strategy We are exploiting our opportunities in the fast-growing EV automotive segment and in the industrial/energy sector. We are continuously reducing our ICE share and using remaining market opportunities (USA) to es
Slide 34: Feintool Uses the Opportunities of the Transformation
FEINTOOL USES THE OPPORTUNITIES OF THE TRANSFORMATION In the last 5 years, ICE share has been reduced from roughly 70% to less than 50% 2017 – CHF 600 million 2022 – CHF 900 million Goal 2027 - CHF 1’200 million Rounded values in millions of CHF 60 100 17% 120 200 50 50 300 250 200 50% 250 33% 300;
Slide 35: Guidance
GUIDANCE Significant increase in sales with unchanged profitability Feintool expects the recovery to continue in the 2023 financial year. We expect automotive production levels in 2023 to be higher than in 2022. Releases are expected to remain volatile, however, due to uncertainties in the supply ch
Slide 36: Thank you! Questions & Answers
Feintool Group Thank you! Questions & Answers
Slide 37: Disclaimer
DISCLAIMER Feintool confirms its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for the us
Feintool International Holding — FY2022 Earnings Presentation on 6ix