Sulzer Ag · SIX:SUN

Sulzer — Q1 2020 Earnings Presentation

14 slides from Sulzer's earnings presentation, Apr 21, 2020

  1. Slide 1: Q1 2020 Performance and Outlook

    Q1 2020 Performance and Outlook April 21, 2020

  2. Slide 2: Safe harbor statement under the US private securities litigation reform act 1995

    The safe harbor statement under the US private securities litigation reform act 1995 This presentation may contain forward-looking statements, including but not limited to, projections of financial developments, market activities or future performance of products and solutions, containing risks and

  3. Slide 3: Q1 2020 performance

    Q1 2020 performance Performing well in the face of pandemic  Keeping everyone at Sulzer safe is our first priority  Social distancing procedures, vulnerable groups identified, good access to PPE (masks, suits, etc.)  Only 3 COVID-19 cases out of 16’097 employees worldwide  Strong Q1 orders of CH

  4. Slide 4: Outlook

    Outlook Demonstrate resilience, rebound post pandemic, downsize Energy  Q2 expected to be more challenging:  Commercial slowdown through combination of capex cuts (oil & gas), limited site access (field service), confinement (dental, beauty) and general economic downturn (industry, adhesives)  Ex

  5. Slide 5: Q1 order intake continued to grow

    Q1 order intake continued to grow Orders driven by RES and PE Order Intake Order intake by market In CHF millions Q1 20 Q1 19 YOY adj.1 org.2 Pumps Equipment 382 391 -2.4% 3.4% 4.5% Rotating Equipment Services 332 301 10.3% 16.9% 12.7% Chemtech 166 171 -2.6% 2.1% -12.2% Q1 2020 Applicator Systems 11

  6. Slide 6: Pumps Equipment

    Pumps Equipment Strong Q1 order intake despite China and 2019 exceptional Water orders Order intake by market / Q1 YOY change Order intake by region / Q1 YOY change Order 25 intake China monthly CHFm 20 –19% –5% –17% 15 (+22% excl ‘19 –11% large orders) 10 Q1 2020 Q1 2020 5 CHF 382m CHF 382m +4.5%1

  7. Slide 7: Rotating Equipment Services

    Rotating Equipment Services Aftermarket shows no weakness in Q1 Order intake by product line / Q1 YOY change Order intake by region / Q1 YOY change +13% +8%  Strong growth across all regions and product lines  Limited COVID-19 impact visible +8% in Q1, field service will slow down Q1 2020 Q1 2020

  8. Slide 8: Chemtech

    Chemtech Recovery in China post COVID-19, large projects shifted elsewhere Order intake by region / Q1 YOY change Order intake China monthly CHFm / Q1 YOY 25  China (30% of CT orders in 2019) +50% –21% up 8% YOY on recovery post C19 20 –11% –22%  Site access in other regions Q1 2020 temporarily re

  9. Slide 9: Applicator Systems

    Applicator Systems All segments impacted by COVID-19, underlying Beauty rebound visible Order intake by market / Q1 YOY change Beauty quarterly development CHFm  Beauty recovery underway but market stalled in March as –3% retailers and customer factories –6% 45 closed worldwide. Orders delayed Q1 2

  10. Slide 10: Sulzer looking ahead

    Sulzer looking ahead All segments impacted by COVID-19 – but recovery speed will vary Driven by Driven by demographics (Waste)water Applicators demographics and urbanization 13% 12% 11% low cyclical New - Chemicals Driven by performance 5% New - Pulp & Paper of the Driven 40% broader Service & Parts

  11. Slide 11: Adapting to short term and mid term impacts

    Adapting to short term and mid term impacts Exceptional OPEX and CAPEX reductions, structural downsizing of Energy Short-term measures  OPEX  Reduce OPEX by 60m on a full year basis, mostly impacting FY20  Curtail SG&A with mixture of structural and temporary measures (e.g. travel)  CAPEX  Redu

  12. Slide 12: Liquidity

    Liquidity Significant headroom to ride out market turmoil  2020 opening cash balance CHF 1.1bn + 500m undrawn RCF  2020 opening Net Debt CHF 347m (0.84x EBITDA)  Cash development 2020  Q1 ’20 FCF CHF 15m above Q1 ‘19  H1 FCF typically ranging from CHF –50m to break even due to seasonal pattern

  13. Slide 13: Summary

    Summary  Strong Q1 order intake showing continued growth  2020 Guidance, which excluded COVID-19, withdrawn  Sulzer mobilized to provide essential services, almost all sites operating  Impact on Sulzer businesses in Q2 expected to be more significant  Resilience through mix (45% aftermarket / 6

  14. Slide 14: Your Investor Relations contact

    Your Investor Relations contact Christoph Ladner Head of Investor Relations Sulzer Management Ltd Phone: +41 52 62 30 22 Neuwiesenstrasse 15 Mobile: +41 79 326 69 70 8401 Winterthur E-mail: christoph.ladner@sulzer.com Switzerland www.sulzer.com

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