Sfs Group Ag · SIX:SFSN
Sfs — H1 2025 Earnings Presentation
47 slides from Sfs's earnings presentation, Jul 17, 2025
Slide 1: Presentation of 1H 2025 results
Presentation of 1H 2025 results Heerbrugg | July 17, 2025
Slide 2: Today's speakers
Today’s speakers Welcome! Jens Breu, CEO Volker Dostmann, CFO Presentation of 1H 2025 results | July 17, 2025 | Public 2
Slide 3: Agenda
Agenda 1. Positioning of SFS Jens Breu 2. Key takeaways Jens Breu 3. Adjustment of production and distribution network Jens Breu 4. Key financials Volker Dostmann 5. Development of segments Volker Dostmann 6. Guidance 2025 Volker Dostmann 7. Organizational further development as of 2026 Jens Breu 8.
Slide 4: Positioning of SFS
Positioning of SFS Presentation of 1H 2025 results | July 17, 2025 | Public 4
Slide 5: Mission-critical products for selected end markets
Mission-critical products for selected end markets We are by your side – 24/7 Presentation of 1H 2025 results | July 17, 2025 | Public 5
Slide 6: Inventing success together
Inventing success together Driving innovation with Value Engineering Value Engineering… in three segments … by Value Creators Engineered Components Fastening Distribution & Systems Logistics Brand. Logo.L Title of presentation 6 ogo
Slide 7: Value Proposition
Value Proposition Conventional compared to our innovative solution Multi-part fastening system for ATMs Optimizing the product from four parts into one • Time savings • Cost reductions of up to 60% • Enhanced quality • Reduced logistical effort Presentation of 1H 2025 results | July 17, 2025 | Publi
Slide 8: Value Proposition
Value Proposition Conventional compared to our innovative solution Metal components only Optimizing the product End-to-end production (metals, plastic, packaging) • 50% shorter throughput time • Reduce cost of procurement and supplier management • Reduction in networking capital for customer Present
Slide 9: Value Proposition
Value Proposition Conventional compared to our innovative solution Complex assembly process for sandwich panels Improving the process on a concrete base, into which profile rails are inserted by using our sandwich panel concrete for fastening fastener MDC/MXC • 50% faster installation • Cost reducti
Slide 10: Fastening Systems
Fastening Systems Product, process and digitization solution example Tool Fastener Calculation software Presentation of 1H 2025 results | July 17, 2025 | Public 10
Slide 11: Value Proposition
Value Proposition Conventional compared to our innovative solution Counter with hand-out Improving the process by specific employee Immediate and direct access for all employees 24/7 • Innovative issuing system • Quick and secure • Individual configuration • Payback time <5 years based on average co
Slide 12: Distribution & Logistics
Distribution & Logistics Product, process and digitization expertise Smart tool storage Tool consumables Cost improvement • Higher availability of tools and consumables • Reduction of inventory • Inventory control and data for further optimization Presentation of 1H 2025 results | July 17, 2025 | Pu
Slide 13: Global sales and manufacturing platform
Global sales and manufacturing platform Customer proximity supported by local presence North America Europe Asia, others 150 Locations 35 Countries 32 Production sites 13,700 Value Creators 1 Target Presentation of 1H 2025 results | July 17, 2025 | Public 13
Slide 14: Key takeaways
Key takeaways Presentation of 1H 2025 results | July 17, 2025 | Public 14
Slide 15: Key takeaways
Key takeaways Solid performance • Solid results in a market with global trade policy upheavals and high uncertainty, reflecting the company’s sustained good positioning • SFS generated sales of CHF 1,539.1 million, corresponding to a reduction of –0.4% compared with 1H 2024 • Currency effects reduce
Slide 16: Adjustment of production and distribution network
Adjustment of production and distribution network Presentation of 1H 2025 results | July 17, 2025 | Public 16
Slide 17: Adjustment of production and distribution network
Adjustment of production and distribution network Adaptation to changing market environment • The changing market environment, particularly in the industrial manufacturing and automotive end markets, presents SFS with challenges • To strengthen focus on core activities and adjust production capaciti
Slide 18: Current project overview
Current project overview About 650 full-time jobs affected • Brunn am Gebirge (Austria): activities transferred to Core focus Selected sites are closed, and non-core Germany in the spring of 2025 business areas are carved out • Olpe (Germany): site closure in 2H 2025, business Streamline Focusing on
Slide 19: Key financials
Key financials Presentation of 1H 2025 results | July 17, 2025 | Public 19
Slide 20: Sales bridge
Sales bridge Organic growth, negative FX effect Organic 06/2025 06/2025 06/2024 in CHF million growth1 CHF million % % +0.8% -2.3% 1,580 12.3 -35.6 EC segment 28.4 5.2% 4.8% +1.1% FS segment –2.9 –1.0% –7.7% 17.5 D&L segment –8.0 –1.2% –0.5% 1,560 • EC segment with positive development and organic 1
Slide 21: Sales breakdown by end market and region
Sales breakdown by end market and region Growth in EC end markets 100% 100% 8.7% 11.2% 12.5% 12.3% 12.5% 11.7% 11.6% 11.8% 11.4% 13.8% 13.6% 18.8% 7.2% 5.6% 5.7% 6.2% 6.2% 6.3% 80% 11.5% 80% 16.3% 17.1% 16.9% 18.8% 18.5% 22.7% 21.8% 27.4% 27.2% 28.2% 26.4% 19.9% 60% 60% 15.8% 12.8% 13.1% 11.3% 11.9%
Slide 22: Operating profitability YTD
Operating profitability YTD EBIT margin adjusted below target range • Soft demand and lower capacity utilization impacting in CHF million in % of net sales profitability of FS and D&L segments 1,000 25 • EBIT margin under pressure 900 21.3% • EBIT adjusted by non-recurring costs of program to 800 20
Slide 23: Earnings per share (EPS)
Earnings per share (EPS) EPS with negative development • Overall EPS –4.7% 12 3.0 11 2.50 2.50 2.50 10 2.5 • EPS decreasing mainly due to lower net income 2.20 driven by operating profit (EBIT) 9 • Burdened by improvement program to increase 8 2.0 6.95 6.84 profitability (approximately CHF 0.15) 7 6
Slide 24: Net working capital
Net working capital FX-impact and usual seasonal influences • Seasonal high balances of accounts receivable due NWC simplified* in % of net sales C2C simplified in days to usually higher sales compared to year-end, FX- 35% 150 rate development is diluting the increase effect 30.4% 29.9% 29.2% • Sign
Slide 25: Capital expenditure
Capital expenditure Investing – Focus on defined areas of growth CAPEX spending 06/2025 06/2024 in CHF million in % of net sales by segment % % 400 7% EC 70 71 6.4% 6.2% FS 12 12 350 5.7% 6% D&L 13 11 5.6% 4.9% 300 4.5% 5% 4.4% 4.1% • CAPEX below target range of 4–6% of net sales 250 4.3% 4.3% 3.5%
Slide 26: Operating free cash flow (OFCF)
Operating free cash flow (OFCF) Cash conversion above target range in CHF million 06/2025 06/2024 in CHF million in % of EBITDA CF before changes in NWC 189 199 360 60% 53.2% Changes in NWC –13 –43 49.9% Cash flow from operations 176 156 300 47.1% 50% CAPEX –53 –69 Operating free cash flow 123 87 24
Slide 27: Balance sheet ratios
Balance sheet ratios Equity ratio back in target range • Important factor for net debt development: Equity ratio in % CHF million net cash/debt • Improved generation of operating free cash flow 90% 600 78.9% • First bond of CHF 250 million settled in June 2025 80% 400 • Unused credit lines used to r
Slide 28: Return on capital
Return on capital ROCE slightly below 2024 year-end level • Bridge ROCE to ROIC in % of net sales • Impact from goodwill and net cash: –7.2% 30% • Impact from tax effects: –3.3% 26.1% 24.4%* 25% 20.4% 20.2% 19.4% 18.8% 20% 15.7% 15% 12.9% 11.2% 11.7% 11.6% 11.7% 10.6% 9.7%* Adjusted EBIT ann. Adjust
Slide 29: Development of segments
Development of segments Presentation of 1H 2025 results | July 17, 2025 | Public 29
Slide 30: Engineered Components segment
Engineered Components segment Growth trajectory continued • Sales of CHF 563.1 million, +2.4% vs. 1H 2024, driven by continued ramp-up of growth projects in Heerbrugg (Switzerland) and Nantong (China) plus momentum in HDD and Aircraft applications • However, customer demand in most end markets and a
Slide 31: Fastening Systems segment
Fastening Systems segment Well positioned in local markets • Sales of CHF 297.2 million, +0.6% vs. 1H 2024, like- for-like • Construction end market affected by sluggish demand, especially in Europe, as well as regionally cold and longer winter • Transfer of CH-based “Construction & Wood” business f
Slide 32: Distribution & Logistics segment
Distribution & Logistics segment Prepared for market recovery • Sales of CHF 678.8 million, –3.0% vs. 1H 2024, like- for-like, European industrial manufacturing end market experiences restrained dynamic and customer sentiment • Warehouse of two European distribution partners integrated into Logistic
Slide 33: Guidance 2025
Guidance 2025 Presentation of 1H 2025 results | July 17, 2025 | Public 33
Slide 34: Updated guidance 2025
Updated guidance 2025 FY25 results expected around previous year’s level 2025G 2024A (CHF) (CHF) Gross sales SFS development Around previous year* 3,039.0 million *(in local currencies, incl. scope effects) Adjusted EBIT margin EBIT margin 11.6% around previous year’s level Guidance reflects current
Slide 35: Strategic priorities
Strategic priorities Focusing on our main strengths and opportunities Strategy Mega- “Local-for- Focus on Solid execution trends local” technology financing Presentation of 1H 2025 results | July 17, 2025 | Public 35
Slide 36: Organizational further development as of 2026
Organizational further development as of 2026 Presentation of 1H 2025 results | July 17, 2025 | Public 36
Slide 37: Vision 2030
Vision 2030 Prepare the organization for future growth 2.0 Purpose of the project “Step-up”: We want to make our organization ready for future growth by… • simplifying and streamlining the organization • sharpening our focus on end markets • empowering the segment management teams for decentralized
Slide 38: New composition of the Group Executive Board
New composition of the Group Executive Board Sharpening focus on strategic decision-making Broader perspective on Alignment with SEDP Accelerated growth in Asia Increased diversity within GEB segments and end markets (Structured Employee • Drive expansion in the region • Strengthen leadership by • B
Slide 39: Organizational changes as of January 2026
Organizational changes as of January 2026 Strengthen end market focus in EC segment • The EC segment will no longer have divisions • Segment gets structured into Business Units: Automotive Formed Parts, Automotive Fasteners, Medical, Industrial and Electronics • Urs Langenauer, Head of Division Auto
Slide 40: Organizational changes as of January 2026
Organizational changes as of January 2026 Further development of BUs in growing Asian market • Martin Reichenecker, Head of Segment D&L, assumes overall responsibility for the Asia Region • Iso Raunjak, former Head of Division D&L Switzerland and current Chief Human Resources Officer (CHRO), will ta
Slide 41: Vision 2030 | Asia Region
Vision 2030 | Asia Region Driving growth in Asia India Nantong Malaysia • Build up of fastener production • Expand division activities for • Build up capability for non-HDD capability overall growth in China customers • Localization and further develop- • Go-to-market growth of Medical • Go-to-marke
Slide 42: Group structure
Group structure Today’s organization Presentation of 1H 2025 results | July 17, 2025 | Public 42
Slide 43: Group structure
Group structure Organization as of January 1, 2026 Presentation of 1H 2025 results | July 17, 2025 | Public 43
Slide 44: Q&A
Q&A Presentation of 1H 2025 results | July 17, 2025 | Public 44
Slide 45: Upcoming IR events
Agenda Upcoming IR events 2026 Publication of first results on financial year 2025 Friday, January 23, 2026 Publication of Annual Report 2025 Friday, March 6, 2026 33rd Annual General Meeting Wednesday, April 22, 2026 Presentation of 1H 2025 results | July 17, 2025 | Public 45
Slide 46: Thank you for your attention
Thank you for your attention Presentation of 1H 2025 results | July 17, 2025 | Public 46
Slide 47: Inventing success together
Inventing success together