Slide 1: Presentation of results for the first half of 2017
Zurich, 16 August 2017 Presentation of results for the first half of 2017 Dr. René Lenggenhager, CEO Markus Portmann, CFO Technology with Passion
Slide 2: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review of H1 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2017 R. Lenggenhager 5 Questions & Answers All H1 Results 2017 | August 16, 2017 2
Slide 3: We are a Swiss company with leading competency in three key technologies
We are a Swiss company with leading competency in three key technologies … H1 Results 2017 | August 16, 2017 3
Slide 4: Enabling faster, more efficient processes and safer products in many industries
… enabling faster, more efficient new and existing processes and safer products in many industries Printing Printing Semiconductor Food Microchips & Sensors Food Displays Automotive / foundries Aerospace Automotive / foundries Electronic Electronics Security H1 Results 2017 | August 16, 2017 4
Slide 5: Close relationships with market-leading customers in each area
We have built close relationships with market- leading customers in each area Showing selected customers only 6.9% 49.4% of Group sales of Group sales NDT Security 43.7% of Group sales H1 Results 2017 | August 16, 2017 5
Slide 6: Strong global presence and distribution network
COMET Group at a glance We foster a strong global presence and distribution network Net sales 2016, 13 in CHF million Locations worldwide … 332.4 Sales outside Switzerland 99% Employees >1300 in R&D >200 H1 Results 2017 | August 16, 2017 6
Slide 7: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review of H1 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2017 R. Lenggenhager 5 Questions & Answers All H1 Results 2017 | August 16, 2017 7
Slide 8: Comet Group is right on track with its strong first half of 2017
Comet Group is right on track with its strong first half of 2017 More record Innovative technologies for Recognized for inno- results in H1 new applications vation and collabora- tion by our partners New YXLON FF CT Metrology systems Net sales One of the most New partnerships EBITDA trustworthy Net
Slide 9: H1 2017: The strongest half-year result in the history of the Comet Group
Review of H1 2017 H1 2017: The strongest half-year result in the history of the Comet Group H1 Results 2017 | August 16, 2017 9
Slide 10: H1 2017: Strong balance sheet despite the investment in growth
Review of H1 2017 H1 2017: Strong balance sheet despite the investment in growth H1 Results 2017 | August 16, 2017 10
Slide 11: H1 2017: All four segments contributed to sales growth of 43.5%
Review of H1 2017 H1 2017: All four segments contributed to the sales growth of 43.5% PCT IXS IXM EBT +75.8%* +22.6%* +8.1%* +81.5%* Net sales 106.1m 66.3m 37.3m 14.8m in CHF (H1 2016: 60.4m) (H1 2016: 54.1m) (H1 2016: 34.5m) (H1 2016: 8.1m) EBITDA 29.4% 6.4% 17.6% -56.0% margin (H1 2016: 20.2%) (H1
Slide 12: PCT: Success story continues in the semicon market
Plasma Control Technologies PCT: Success story continues, significant growth with high-end solutions in the semicon market 74.1% sales growth in local currencies Sales and design-wins with high-end RF matchboxes in the semiconductor market as more and more mobile devices are using 3D memory chips
Slide 13: Comet receives Supplier of the Year Award from AMAT
Comet receives Supplier of the Year Award from AMAT for Innovation and Collaboration H1 Results 2017 | August 16, 2017 13
Slide 14: IXS: Strong growth with larger CT systems and standard systems
X-Ray Systems IXS: Strong growth with larger CT systems and with standard systems in the electronics market 23.3% sales growth in local currencies Growth especially with large computed tomography (CT) solutions especially in the foundries, labs and R&D sectors – as 3D visualization helps to inspec
Slide 15: IXS: Product portfolio expanded with metrology function for new FF CT systems
IXS: Product portfolio expanded by adding metrology function for new FF CT systems H1 Results 2017 | August 16, 2017 15
Slide 16: IXM: More-than-proportional growth in security; launch of new intelligent generator
Industrial X-Ray Modules IXM: More-than-proportional growth in security; Successful launch of new intelligent generator 9.2% growth in local currencies driven by Significant growth in security inspection, including in new applications 17.6% EBITDA margin vs. 24.1% in H1 2016 Due to changes in pr
Slide 17: IXM: Launch of iVario family of generators
IXM: Successful launch of innovative, IoT-capable and versatile iVario™ family of generators Another important step in the strategy of forward integration from components to modules H1 Results 2017 | August 16, 2017 17
Slide 18: EBT: Strong sales growth, progress in food and digital printing
ebeam Technologies EBT: Strong sales growth, promising progress with new applications in food and digital printing Growth of 81.0% in local currencies Due partly to the filling of the large system orders from the end of 2016 Progress with food and digital printing Bühler: Field tests started at
Slide 19: New concept to be launched at Labelexpo in Brussels in September
The new concept will be presented and launched at Labelexpo in Brussels in September September 25-28 Brussels, Belgium H1 Results 2017 | August 16, 2017 19
Slide 20: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review of H1 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2017 R. Lenggenhager 5 Questions & Answers All H1 Results 2017 | August 16, 2017 20
Slide 21: Increasing new orders, strong net sales and improved operating performance
Financial Results Increasing new orders, strong net sales and improved operating performance H1 Change in CHF thousands 2017 2016 Absolute In % New orders 222'408 162'233 60'175 37% Backlog 110'637 90'848 19'789 22% Book-to-bill 1.03 1.08 -4% Net sales 214'907 149'768 65'139 43% Cost of sales -129'2
Slide 22: Net USD exposure of CHF 64m in H1 2017
Financial Results Net USD exposure of CHF 64m in H1 2017, mostly naturally hedged in other currencies 100% EBIT 11.9% Increased USD exposure as 80% sales in USD are growing faster Net USD 61.3% exposure of 31.4% than costs in USD. CHF 64m 60% USD Foreign exchange rates had a 7.0% Other positive im
Slide 23: Strong sales growth, mainly driven by PCT
Financial Results Strong sales growth, mainly driven by PCT +43.5% 250 +6.6 -2.4 0.4 *) 214.9 +12.6 +3.2 +44.7 200 149.8 CHF millions 150 100 Volume effect in local currencies Positive currency CHF +64.7m 50 effect (+43.2%) (+0.3%) - Net sales H1 PCT IXS IXM EBT Elim. Currency Net sales H1 2016 inte
Slide 24: EBITDA margin increase of 550 basis points on a comparable basis
Financial Results EBITDA margin increase of 550 basis points on a comparable basis Reconciliation As reported IAS19 Before @ constant @ constant FX IAS19 As reported @ nominal June YTD 2017 vs. PY IAS19 FX rates FX rates and impact FX rates vs. before IAS19 PY June YTD June YTD D June YTD June YTD D
Slide 25: Strong increase in net income driven by profitable sales growth
Financial Results Strong increase in net income driven by profitable sales growth +99% 25 +14.6 -1.7 -4.4 Operating income 20 17.1 CHF 25.7m (H1 2016 CHF 11.1m) CHF millions 15 Net financing expenses CHF 2.4m 10 8.6 (H1 2016 CHF 0.7m) Income tax expense 5 CHF 6.2m (H1 2016 CHF 1.8m) 0 Net inco
Slide 26: Foreign exchange loss due to stronger CHF
Financial Results Foreign exchange loss due to stronger CHF Net financing items increased to a net expense of CHF 2.4m (H1 2016: CHF 0.7m), reflecting the following factors: The net currency translation loss recorded in the income statement amounted to CHF 1.6m (H1 2016: only minor effect) Inter
Slide 27: Income tax rate at 26.7%
Financial Results Income tax rate at 26.7% reflecting the increased share of profits from the US Applying the expected Group base tax rate of 28%, income before tax of CHF 23.3m would lead to an expected tax expense of CHF 6.5m Actual income tax expense reported totaled CHF 6.2m (H1 2016: CHF 1.
Slide 28: Ongoing strong balance sheet ratios
Financial Results Ongoing strong balance sheet ratios In CHF millions H1 2017 FY 2016 Current assets 216.2 61.8% 220.0 63.8% Non-current assets 133.7 38.2% 124.9 36.2% Total assets 349.9 100.0% 344.9 100.0% Liabilities 165.0 47.2% 168.6 48.9% Equity 184.9 52.8% 176.3 51.1% Total liability and equity
Slide 29: Operating and free cash flow reflect implementation of growth strategy
Financial Results Operating and free cash flow reflect implementation of growth strategy CF provided by operating CF used in investing CF used & provided activities activities Free cash flow by financing activities CHF -0.3m CHF -14.1m CHF = -14.3m CHF -13.2m a) Cash as of 1.1.2017 120 21.0 -30.2 b)
Slide 30: Working capital management improved despite strong sales growth
Financial Results Working capital management improved despite strong sales growth Total net working capital increased by CHF 26.0m, driven by a strongly growing business (high trade receivables) and a strong order backlog (increasing inventory balance) Working capital ratios (based on 12-month rol
Slide 31: Non-current assets influenced by capital expenditure for new production building
Financial Results Non-current assets influenced by capital expenditure fornew production building Non-current assets increased by CHF 8.8m or 7.1% Compared to prior year-end, property, plant and equipment and intangible assets increased by CHF 8.2m Capital expenditure for new building in Flamatt
Slide 32: Equity ratio increased to 52.8% driven by profitability
Financial Results Equity ratio increased to 52.8% driven by profitability Current liabilities decreased by CHF 2.9m from year-end, mainly driven by: Decrease in trade accounts payable, offset by an increase in accruals Non-current liabilities decreased by CHF 0.7m despite: Decrease in long-term
Slide 33: Net debt in H1 reached CHF 20.9m; Net debt to EBITDA ratio 0.3
Financial Results Net debt in H1 reached CHF 20.9m; Net debt to EBITDA ratio very solid at 0.3 70 2.0 Net debt / EBITDA Mio. CHF 60 1.6 1.2 62.5 50 1.2 Increase in net debt to 40 0.8 41.3 0.5 40.1 0.3 0.3 CHF 20.9m (end of H1 30 36.9 0.3 0.4 2016: CHF 13.5m) as a 20 23.9 0.0 result of the ongoing
Slide 34: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review of H1 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2017 R. Lenggenhager 5 Questions & Answers All H1 Results 2017 | August 16, 2017 34
Slide 35: Slightly stronger H2 expected in comparison to H1 2017
Outlook Slightly stronger H2 expected in comparison to H1 2017 For the full year 2017 Comet Group expects Net sales between 430 to 450 CHF million EBITDA margin between 14% to 16% Outlook for segments Sustained high demand in the semiconductor business Continuing strong second half in the ot
Slide 36: Q&A
Q&A H1 Results 2017 | August 16, 2017 36
Slide 37: The success story of the Comet Group continues: Investor Day 2017
The success story of the Comet Group continues At our Investor Day, the new Group CEO René Lenggenhager will be providing an insight into the next chapter. Alongside our strategy update, the day will include interesting live sessions and customer presentations on our business development initiatives
Slide 38: Financial calendar for the Comet Group
Financial calendar for the Comet Group November 22, 2017 Investor Day March 15, 2018 Publication of 2017 annual report April 25, 2018 Annual shareholder meeting in Berne For more details on our business performance and financial results, please see our annual report at http://www.comet-group.com, or
Slide 39: Disclaimer
Disclaimer This document contains forward-looking statements about the Comet Group that may be subject to uncertainty and risk. Readers should therefore be aware that such statements may deviate from actual future outcomes or events. Forward-looking statements in this document are projections of pos