Slide 1: Half-Year Results 2018 Media and Investor Presentation
Half-Year Results 2018 . . . and Media . . Investor . . Presentation, . . . . July. .19,.2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO . . . . . . Joris Gröflin, Group CFO. . . . . . . . . . . . . . . . . . .
Slide 2: Main Messages HY1 2018
Main Messages HY1 2018 • Sales in the first half of 2018 increases by 24% compared to the previous year period; all business groups contribute • Order intake in the first half of 2018 grows by 3% compared to the first half of 2017 • EBIT of 14.1 million CHF und net profit of 10.9 million CHF • Ring
Slide 3: Agenda
Agenda 1. Introduction and summary HY1 2018 Dr. Norbert Klapper 2. Financial results HY1 2018 Joris Gröflin 3. Details on strategy implementation Dr. Norbert Klapper 4. Outlook Dr. Norbert Klapper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rieter Half-Y
Slide 4: HY1 2018: Key Messages Today
HY1 2018: Key Messages Today Increase in sales in HY1 2018 Sales • Sales growth driven by all three business groups (million CHF) • Order intake at level of sales +24% • Order backlog remains at 540 million CHF 550 508 515 437 415 HY1 2016 HY2 2016 HY1 2017 HY2 2017 HY1 2018 Rieter Half-Year Results
Slide 5: Sales Development by Region
Sales Development by Region Strong increase in sales to Asian countries Million CHF • Higher sales to Asian countries (Uzbekistan, 515 Bangladesh, Vietnam and Indonesia) 28 27 • Good level of sales to China on par with previous 415 60 year – due to the phasing out of the subsidy Africa program in Xi
Slide 6: Acquisition of 25% Stake in Electro-Jet S.L.
Acquisition of 25% Stake in Electro-Jet S.L. Ring spinning system strengthened • Sales of around 25 million euro (2017) with 135 employees • Company located in Gurb (Spain) • Develops and produces roving frames (flyers) • Strategic partnership allows joint development of innovative products • Signin
Slide 7: Changes in the Group Executive Committee
Changes in the Group Executive Committee • Joris Gröflin, CFO at the Rieter Group since 2011, is to leave the Group Executive Committee in March 2019 to pursue a career opportunity outside the Rieter Group. The Board of Directors wishes to express its gratitude to Joris Gröflin in advance for his ma
Slide 8: Agenda
Agenda 1. Introduction and summary of HY1 2018 Dr. Norbert Klapper 2. Financial results HY1 2018 Joris Gröflin 3. Details on strategy implementation Dr. Norbert Klapper 4. Outlook Dr. Norbert Klapper .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rieter Half
Slide 9: Rieter – Financial Overview HY1 2018
Rieter – Financial Overview HY1 2018 Increase in sales vs. prior period – net profit on par with HY1 2017 Million CHF HY1 2018 Change vs. HY1 2017 Order intake and sales on similar level resulting in stable Order intake 511.8 3% order backlog (540 million CHF) Organic growth of Machines & Systems an
Slide 10: Financial Key Figures
Financial Key Figures EBIT and net profit at the level of HY1 2017 Million CHF HY1 2018 HY2 2017 HY1 2017 FY 2017 Order Intake 511.8 556.3 495.2 1 051.5 Sales 515.3 550.4 415.2 965.6 EBITDA before restr. charges 34.6 59.8 34.8 94.6 EBITDA margin (of sales) 6.7% 10.9% 8.4% 9.8% EBIT before restr. cha
Slide 11: Orders by Business Group
Orders by Business Group Increase in order intake of 3% vs. HY1 2017 Million CHF • Below prior year: Business Group Machines & Systems with 297.7 million CHF order intake 8% 700 below HY1 2017 (-8% in local currencies) 600 +3% • Slight decrease: Business Group After Sales with 495 512 75.0 million C
Slide 12: Sales by Business Group
Sales by Business Group All three business groups increased sales against HY1 2017 Million CHF • 41% of sales from After Sales (14%) and Components (27%); 59% of sales from Machines 700 & Systems 600 +24% • Strong increase: Business Group Machines & 515 Systems with 303.9 million CHF sales 19% highe
Slide 13: Operating Results (EBIT)
Operating Results (EBIT) EBIT increase of Components and lower profitability at Machines & Systems Million CHF • Decrease in profitability of Business Group HY1 HY1 Machines & Systems to -4.9% of sales mainly 2018 2017 as a result of unfavorable product mix (HY1 2017: -1.5% of sales) Machines & Syst
Slide 14: Net Profit and Return on Net Assets (RONA)
Net Profit and Return on Net Assets (RONA) Net profit of 10.9 million CHF on par with HY1 2017 In % of 2.6% • Financial result at -1.0 million CHF sales 2.1% (HY1 2017: -2.1 million CHF) Million CHF • Income tax at -2.2 million CHF (HY1 2017: -3.0 million CHF) 12 11 11 • Earnings per share at 2.39 C
Slide 15: Changes in Workforce
Changes in Workforce Stable workforce compared to HY1 2017 Temporaries • Fix and temporary employees remained stable in % 11.1% 11.0% compared to HY1 2017 FTE1 6000 5884 5900 652 649 5000 4000 3000 5232 5251 2000 1000 0 June 2017 June 2018 Temporaries Fix 1 Excluding apprentices, including temporary
Slide 16: Balance Sheet
Balance Sheet Net cash position despite negative free cash flow in HY1 2018 Decrease in net liquidity vs. December: Million CHF 30/06/ 31/12/ 30/06/ 2018 2017 2017 • Dividend of 22.6 million CHF (5.00 CHF per share) paid out in April 2018 Total assets 1 000.1 1 048.2 1 009.0 • Free cash flow of -59.
Slide 17: Net Working Capital
Net Working Capital Increase of net working capital to 109.5 million CHF • At June 30, 2018, higher inventory for Million CHF 30/06/ 31/12/ 30/06/ orders to be delivered in HY2 2018 2018 2017 2017 • Trade receivables from high volumes Inventories 225.0 192.4 201.9 shipped in June 2018 had not been c
Slide 18: Capital Expenditures/Depreciation & Amortization
Capital Expenditures/Depreciation & Amortization Capital expenditures below depreciation/amortization level Million Capital Expenditures Depreciation & Amortization CHF 25 35 21 30 30 20 9 25 9 21 15 20 19 1 1 6 10 9 15 7 10 1 8 2 8 1 9 3 0 10 5 0 4 5 4 5 11 3 3 6 6 0 1 0 HY1 2017 HY2 2017 HY1 2018
Slide 19: Free Cash Flow
Free Cash Flow Free cash flow mainly impacted by increase in net working capital Million CHF HY1 HY1 • Free cash flow is mainly affected by temporary increase in net working 2018 2017 capital at June 30, 2018 Net profit 10.9 10.9 • Sale of assets in China for 10.4 million CHF as a result of the cont
Slide 20: Agenda
Agenda 1. Introduction and summary of HY1 2018 Dr. Norbert Klapper 2. Financial results HY1 2018 Joris Gröflin 3. Details on strategy implementation Dr. Norbert Klapper 4. Outlook Dr. Norbert Klapper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rieter Hal
Slide 21: Details on Strategy Implementation
Details on Strategy Implementation Rieter continues to aim for an EBIT margin of 10%, with sales of around CHF 1.3 billion and a Return On Net Assets (RONA) of 14%. Focus on strategy implementation: • Improve the market position in the machinery and systems business by accelerating the ongoing innov
Slide 22: Earnings Increase Towards 10% EBIT
Earnings Increase Towards 10% EBIT Strategy with focus on profitability improvement Projection Sales in CHF ~1030 +20 +250 ~1300 million (p.a.) • Machines & Systems break-even • Components profitability 2.6% 0.8% • Innovation & • After Sales at market position 10% 3.9% 166 mCHF sales • Market volume
Slide 23: R&D Expenses
R&D Expenses Clearly committed to innovation R&D expenses (CHF million/in % of sales) • Accelerate on-going innovation programs at Machines & Systems and at Components 26.4 26.6 23.7 24.4 • Innovative After Sales solutions (e.g. 22.9 23.6 22.8 digitization) • Strong focus on ITMA Barcelona 2019 5.6%
Slide 24: Agenda
Agenda 1. Introduction and summary of HY1 2018 Dr. Norbert Klapper 2. Financial results HY1 2018 Joris Gröflin 3. Details on strategy implementation Dr. Norbert Klapper 4. Outlook Dr. Norbert Klapper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rieter Hal
Slide 25: Outlook
Outlook In some markets, Rieter customers are faced with rising interest rates, strong currency fluctuations, commodity price volatility and political uncertainties. Overall, this could lead to a slowdown in demand for new machinery in the coming months. In the components and after sales business, R
Slide 26: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and 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
Slide 27: Appendix
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Rieter Half-Year Results 2018 27
Slide 28: Values and Principles
Values and Principles Rieter Half-Year Results 2018 28
Slide 29: Group Executive Committee
Group Executive Committee Dr. Norbert Klapper Serge Entleitner Jan Siebert Carsten Liske Joris Gröflin Thomas Anwander Chief Executive Officer Head Business Group Head Business Group Head Business Group Chief Financial Officer General Counsel and Components Machines & Systems After Sales Company Sec
Slide 30: Board of Directors
Board of Directors Michael Pieper Bernhard Jucker Hans-Peter Schwald Carl Illi Member of the BoD Chairman of the BoD Member of the BoD Member of the BoD Chairman of the SC Member of the AC/NC/RC Member of the AC/SC Member of the NC/RC Peter Spuhler This E. Schneider Roger Baillod Luc Tack Member of
Slide 31: Key Data per Share
Key Data per Share Rieter registered shares of CHF 5 nominal value Bloomberg: RIEN SW; Thompson Reuters: RIEN.S 30/06/2018 31/12/2017 30/06/2017 Shares outstanding excl. own shares 4 526 037 4 524 754 4 528 326 (end of period) Average shares (of period) 4 526 055 4 524 273 4 523 565 Share price (end
Slide 32: Change in Sales and Currency Impact
Change in Sales and Currency Impact Main impacts are volume/price increase and acquisition of SSM Million CHF Machines & After Sales Components Rieter Group Systems Sales HY1 2017 255.1 70.1 90.0 415.2 Volume and price 48.1 3.0 -0.7 50.4 Acquisition1 0.0 0.0 44.1 44.1 Currency translation 0.7 1.0 3.
Slide 33: Return on Net Assets (RONA)
Return on Net Assets (RONA) RONA of 4.8% in HY1 2018 CHF million 30/06/2018 31/12/2017 2018 Change Non-current assets 419.5 450.0 -30.5 Inventories and receivables 426.4 353.8 72.6 Liquid funds 154.2 244.4 -90.2 Total assets 1 000.1 1 048.2 -48.1 Non-current liabilities (excl. debt) -144.8 -160.9 16
Slide 34: Profitability Improvement Mid-Term: 14% RONA
Profitability Improvement Mid-Term: 14% RONA Net asset basis stable • Reduction of net working capital Net profit by half-year (before • Sale of non-core assets interest cost/million CHF) • Investments below D&A level 50 45 40 HY2 2014 13.7% 35 HY1 2015 HY2 2016 30 12.2% 10.7% 25 20 HY1 2017 HY2 201