Slide 1: Welcome to the Media and Analysts Conference
Starrag Group Welcome to the Media and Analysts Conference Zurich, 8th March 2013 berthiez bumotec dörries droop+rein heckert scharmann sip starrag ttl wmw Starrag Group Agenda Overview Walter Fust, Chairman Markets and technologies Frank Brinken, CEO Financial review Gerold Brütsch, CFO Outlook Fra
Slide 2: Overview 2012
Starrag Group Agenda Overview Walter Fust, Chairman Markets and technologies Frank Brinken, CEO Financial review Gerold Brütsch, CFO Outlook Frank Brinken, CEO Questions and answers 2 Starrag Group Overview 2012 Order intake CHF 364 million – up 5 % Sales revenue CHF 384 million – up 8 % Solid backl
Slide 3: Order intake benchmark vs. sector; total shareholder return
Starrag Group Order intake benchmark: Starrag Group vs. Sector 4 quarter rolling 4 Starrag Group Attractive total shareholder return Total shareholder return: 1 year = 26.7% p.a. 3 years = 6.2% p.a. 5 years = -2.4% p.a. 5
Slide 4: Bumotec: New market perspectives; Strong positioning
Starrag Group Bumotec: New market perspectives Opening up additional sales opportunities in the watch/jewellery and medical technology client sectors New markets for Starrag Group with attractive growth potential Complementing established Industrial target market Benefits for Aerospace target market
Slide 5: Order intake and backlog
Starrag Group Agenda Overview Walter Fust, Chairman Markets and technologies Frank Brinken, CEO Financial review Gerold Brütsch, CFO Outlook Frank Brinken, CEO Questions and answers 8 Starrag Group Order intake and backlog CHF m 400 364 341 348 350 300 250 238 239 200 188 188 188 150 124 104 100 50
Slide 6: Development of order intake; order intake by market segment
Starrag Group Development of order intake CHF m 400 13 35 33 4 350 58 7 300 250 200 348 364 332 150 100 50 0 Proforma 2010 Acquisition Organic Growth FX Translation 2011 Acquisition Organic Growth FX Translation 2012 Growth rate +4.6 % 10 Starrag Group Order intake by market segment CHF m 400 350 60
Slide 7: Market segment trends; Order intake by region
Starrag Group Market segment trends Target markets Aerospace Energy Transport Industrial 27 % 14 % 25 % 34 % Solid civil aircraft market Dormant wind energy Performance cars Solid luxury watch demand 737, A320 rate increase Gas turbines in Asia Agriculture equipment Reshoring US supply chain Militar
Slide 8: World machine tool consumption; Machine tool industry Germany
Starrag Group World machine tool consumption USD b PRC USA JAP GER ROK IND ITA BRA Total market volume 2012: 93 billion USD ROC MEX Rank 1 to 15 are 87 % of global market TRK RUS CAN FRA SUI 0 5 10 15 20 25 30 35 40 45 2011 2012 Source: Gardner World Machine Tool Output & Consumption Survey February
Slide 9: Cecimo MTIX confirms positive outlook; EBIT margin peer group
Starrag Group Cecimo MTIX confirms positive outlook 300 275 250 225 200 175 150 125 100 75 50 25 0 2005 2006 2007 2008 2009 2010 2011 2012 CECIMO MTIX 12mths MTIX MAVG 16 Starrag Group EBIT margin peer group Starrag Hermle DMG Makino Mori Seiki Okuma GF AC Mikron Tornos Hardinge (CH) (DE) (DE) (JP)
Slide 10: Number of players; Bumotec description
Starrag Group Unchanged strategic direction Bumotec Starrag Group Number of players High competition intensity Gantries and boring mills Horizontal machining centers Precisely productive Vertical machining centers 100 240 320 400 500 630 800 1000 1250 1600 1800 2100 > 2500 Machine / workpiece size 1
Slide 11: Bumotec relationships in luxury sector; new markets with growth potential
Starrag Group Bumotec has excellent relationships in the luxury sector 80% of sales into markets with growth rate significantly above GDP Source: Bumotec sales revenue, 2008 – 2011 H1 20 Starrag Group New markets with sustainable growth potential Swiss watch exports German medical device market CHF
Slide 12: Bumotec: One of 10 strong brands; Chairman's Silver Award
Starrag Group Bumotec: One of 10 strong brands berthiez bumotec Each brand with high level dörries of customer trust in its specific application area droop+rein Innovative technologies of heckert each brand radiate across all group brands scharmann Starrag Group Collaboratively fulfilling our starra
Slide 13: Innovation: Large Droop+Rein; technology leadership
Starrag Group Innovation: Large Droop+Rein successfully and on time Machine weight: 610 tons Working length: 21 m Working width: 9m Max. workpiece: 400 tons Transport : > 50 trucks 24 Starrag Group Relentless innovation enhances our technology leadership 2 new powerful machines for the airfoil marke
Slide 14: Three pillars for future success updated; trade fairs
Starrag Group Three pillars for future success updated Adaptation of vision and mission according to latest developments Vision: to become the leading manufacturer of highly productive, durable complete solutions for precision machining Mission: ensure that our products guarantee the utmost in produ
Slide 15: Customer service: retrofit; top 20 in performance
Starrag Group Customer service: Back to full fitness thanks to retrofit Before: After: Comprehensive retrofit of conventional machines with modern CNC controls Re-establishing excellent mechanical accuracy Shorter lead times for customers Leading to precision and productivity better than at first de
Slide 16: Integration of Dörries Scharmann; Key achievements 2012
Starrag Group Integration of Dörries Scharmann bearing fruit Joint sales and service organisation (particularly non-European markets) - Expanded levels of technical expertise - Quicker reaction times to market changes 1st cross selling successes realized Combined procurement of components and servic
Slide 17: Starrag Group is less exposed than other Swiss industrials
Starrag Group Agenda Overview Walter Fust, Chairman Markets and technologies Frank Brinken, CEO Financial review Gerold Brütsch, CFO Outlook Frank Brinken, CEO Questions and answers 32 Starrag Group Starrag Group is less exposed than other Swiss industrials Average EUR-CHF exchange rate 1.80 Good na
Slide 18: Order intake and sales revenue
Starrag Group Order intake CHF m 120 480 364 343 100 400 341 4 quarter rolling 80 320 quarterly 60 188 240 188 40 160 20 80 0 0 2008 2009 2010 2011 2012 -20 -80 Order intake +4.6 % 34 Starrag Group Sales revenue CHF m 100 384 400 307 354 75 252 300 4 quarter rolling 199 quarterly 50 200 25 100 0 0 2
Slide 19: Increased sales revenue thanks to acquisitions; Income statement - EBIT
Starrag Group Increased sales revenue thanks to acquisitions CHF m 400 4 34 350 300 250 200 384 354 150 100 50 0 2011 Acquisition FX Translation 2012 Sales revenue +8.3 % 36 Starrag Group Income statement - EBIT CHF m Income Expense 450 5.7 % 5.4 % 400 22 EBIT 350 19 Sales revenue 300 +8 % 166 Mater
Slide 20: From EBIT to net profit; Balance sheet
Starrag Group From EBIT to net profit CHF m 2012 2011 EBIT 21.7 19.1 Interest - -0.4 FX result -1.0 0.8 Other -1.4 -2.3 Earnings before tax EBT 19.3 17.2 Income tax -5.7 -6.4 Earnings after tax EAT 13.6 10.8 Tax rate 29 % 37 % Lower interest and other finance costs due to Dörries Scharmann integrate
Slide 21: Capital employed; Solid free cashflow
Starrag Group Capital employed CHF m 400 49% 50% 350 Net operating assets (NOA) 47% 48% 300 Sales revenue 45% 46% 250 NOA to sales revenue 200 43% 384 44% 43% 354 150 307 252 42% 100 199 190 163 131 113 40% 50 85 0 38% 2008 2009 2010 2011 2012 Increase due to Bumotec acquisition (7 months sales reve
Slide 22: Continuous investment into the future; Share information
Starrag Group Continuous investment into the future Fully self-financed acquisition of Bumotec CHF 15 million capital expenditure – IT systems, machinery and means of production, new technologies and products (CHF 10 million) – Construction of production plant in Bangalore/India (CHF 5 million) Sign
Slide 23: Increased order intake, sales and net income
Starrag Group Increased order intake, sales and net income, balance sheet strength sustained Order intake up 5 % to CHF 364 m – sales increased by 8 % to CHF 384 m EBIT up 14 % to CHF 22 m – increase in operating margin to 5.7 % - equity ratio of 7.3 % 26 % increase in net income to CHF 14 m – earni
Slide 24: Machine tool consumption drifts to Asia; Bangalore plant opened
Starrag Group Machine Tool Consumption continues to drift to Asia 100% 25% 24% 44% 75% 13% 14% 20% 19% 50% 31% 25% 42% 43% 16% 9% 0% 1999 2010 2014 Europe America Asia China Source: Oxford Economics 2011, CECIMO Estimates 2011 46 Starrag Group Bangalore plant opened on time and in budget Ground brea
Slide 25: New plant in India inaugurated; grand opening
Starrag Group New plant in India inaugurated 25 January 48 Starrag Group Impressions from the grand opening Consul General Germany Frmr. Chairman Saxena Chief Minister Consul General Switzerland Hindustan Aeronautics Ltd Minister for Trade and Manufacturing Our receptionists Manjunath and our new ma
Slide 26: Strategic priorities 2013; Financial targets
Starrag Group Strategic priorities 2013 Various new products in pipeline to be launched on the market in 2013 and 2014 incorporating groupwide technology synergies Further strengthen global sales and customer support organisation for all brands, including Bumotec Intensified market penetration in em
Slide 27: Sustainable value creation for our shareholders
Starrag Group Sustainable value creation for our shareholders Starrag Group steadily creating value for investors – Only listed manufacturer with continued positive results throughout the latest recession – Increased dividend pay-out ratio of 30 % to 40 % of net income as from fiscal 2012 Various in
Slide 28: We look forward to your questions!
Starrag Group Agenda Overview Walter Fust, Chairman Markets and technologies Frank Brinken, CEO Financial review Gerold Brütsch, CFO Outlook Frank Brinken, CEO Questions and answers 54 Starrag Group We look forward to your questions! 55
Slide 29: Legal note
Starrag Group Legal note The economic projections and predictions contained in this information relate to future facts. Such projections and predictions are subject to risks uncertainties and changes which cannot be foreseen and which are beyond the control of the issuer. Starrag Group is therefore
Slide 30: High-precision machine tools for greater productivity
Starrag Group High-precision machine tools for greater productivity Starrag Group is a global technology leader in manufacturing high-precision machine tools for milling turning, boring and grinding of small, medium-sized and larger workpieces of metallic and composite materials. Principle customers
Slide 31: Common strategy based on three pillars; target markets
Starrag Group Common strategy based on three pillars Leading metal cutting Leading cutting Leading global machine tools technology support customer service Milling, turning, boring, Center of Production Through life cycle support grinding Excellence Preventive maintenance High-end products Engineeri
Slide 32: Global presence; Share details
Starrag Group Global presence 62 Starrag Group Share details Market capitalisation CHF 207.0 million Listed at SIX Swiss Exchange Main Standard – Symbol STGN, Valor number 236‘106, ISIN CH00023610608 3‘360‘000 registered shares with a nominal value of CHF 8.50 each Stable shareholder structure Free
Slide 33: Top management
Starrag Group Top management Walter Fust (1941, Swiss) Dr. Frank Brinken (1948, Swiss) Gerold Brütsch (1966, Swiss) has been a member of Starrag Group Holding AG’s assumed office as CEO of Starrag Group in 2005. has been Chief Financial Officer (CFO) of Starrag Board of Directors since 1988 and its