Slide 1: Media and analysts' conference 2023
Media and analysts’ conference 2023 Tornos Group Moutier, March 6, 2023
Slide 2: Speakers
Media and analysts’ conference 2023 Speakers François Frôté Stéphane Pittet Michael Hauser Chairman of the Board Chief Financial Officer (CFO) Chief Executive Officer (CEO) Media and analysts' conference 2023 | March 6, 2023 2/48
Slide 3: Agenda
Media and analysts’ conference 2023 Agenda • Overall review François Frôté, Chairman of the Board • Financial results 2022 Stéphane Pittet, Chief Financial Officer (CFO) • Management report 2022 Michael Hauser, Chief Executive Officer (CEO) • Questions and answers Media and analysts' conference 2023
Slide 4: Overall review
François Frôté Overall review
Slide 5: Key financials 2022
Overall review Key financials 2022 in MCHF 2022 2021 Net sales 181.4 171.5 EBITDA 20.1 24.6 EBIT 16.4 20.6 Net result 14.4 20.3 Net cash 17.6 26.6 Media and analysts' conference 2023 | March 6, 2023 5/48
Slide 6: Key financials 2022 in MCHF
Overall review Key financials 2022 in MCHF 2017 2021 2022 Net sales 178.8 171.5 181.4 EBITDA 12.9 24.6 20.1 Adj. (real EBITDA) 10.2 14.2 15.3 In % 5.7% 8.3% 8.4% EBIT 9.5 20.6 16.4 Adj. (real EBIT) 6.8 10.1 11.6 In % 3.8% 5.9% 6.4% Media and analysts' conference 2023 | March 6, 2023 6/48
Slide 7: Financial results 2022
Stéphane Pittet Financial results 2022
Slide 8: Order Intake
Financial results 2022 Order Intake -5.1% 104.6 -6.1% 98.3 MCHF 100.0 -4.1% 95.8 2021 2022 2 HY 1 HY Book-to-bill ratio 2022: 1.07 Backlog 2021: 59.3 MCHF / 2022 : 68.4 MCHF Media and analysts' conference 2023 | March 6, 2023 8/48
Slide 9: Order Intake (Machines only)
Financial results 2022 Order Intake (Machines only) 2021 2022 11% • Increase in the medical 16% industry, especially in the 25% 28% dental area 20% 20% 11% 10% • Substantial gains in the 9% 4% 13% 15% 1% 20% watchmaking and aerospace industries • Less dependence on the automotive sector Penetration
Slide 10: Net Sales
Financial results 2022 Net Sales +5.8% MCHF 181.4 171.5 2021 2022 Increases in all price segments Media and analysts' conference 2023 | March 6, 2023 10/48
Slide 11: Net Sales
Financial results 2022 Net Sales 2021 2022 14% 14% 23% 21% 14% 15% 49% 50% Shares per region remain stable in 2022 Media and analysts' conference 2023 | March 6, 2023 11/48
Slide 12: Income Statement
Financial results 2022 Income Statement in % of in % of in MCHF 2022 Sales 2021 Sales Net sales 181.4 171.5 Gross profit 70.1 38.7% 66.4 38.7% Marketing and sales -29.9 -16.5% -25.1 -14.6% General and administrative expenses -16.5 -9.1% -15.4 -9.0% Research and development -7.0 -3.9% -6.0 -3.5% Othe
Slide 13: Income Statement
Financial results 2022 Income Statement in % of in % of in MCHF 2022 Sales 2021 Sales EBIT 16.4 9.1% 20.6 12.0% Financial income/expense 0.0 0.0% -0.2 -0.1% Exchange result net -1.2 -0.7% 0.3 0.2% EBT 15.2 8.4% 20.7 12.0% Income taxes -0.8 -0.4% -0.3 -0.2% Net results 14.4 8.0% 20.3 11.9% Loss in ex
Slide 14: Income Statement
Financial results 2022 Income Statement in % of in MCHF 2022 non-recuring Underlying Sales Net sales 181.4 181.4 Gross profit 70.1 -4.8 65.3 36.0% Marketing and sales -29.9 -29.9 -16.5% General and administrative expenses -16.5 -16.5 -9.1% Research and development -7.0 -7.0 -3.9% Other income 0.4 0.
Slide 15: Change in EBIT
Financial results 2022 Change in EBIT Variation (extraordinary effect excluded) +1.6 MCHF Media and analysts' conference 2023 | March 6, 2023 15/48
Slide 16: Balance Sheet
Financial results 2022 Balance Sheet Liabilities in MCHF Assets in MCHF MCHF 5.1 22.7 0.1 Financial Cash 50.9 liabilities 26.8 26.8 46.0 Receivables 22.1 Operating liabilities Inventories 88.2 108.4 98.8 74.3 Shareholders' Non-current equity assets 26.7 21.7 2022 2021 2022 2021 Net cash 17.6 26.6 Eq
Slide 17: Cash Flow
Financial results 2022 Cash Flow in MCHF 2022 2021 Cash flow before net working capital changes 12.4 14.8 Net working capital changes -7.2 15.5 Cash flow from investing activities -9.0 0.5 Free cash flow -3.8 30.8 Increase in inventories and investment in a new building for our factory in Taichung,
Slide 18: In a nutshell
Financial results 2022 In a nutshell • Significant sales gains in medical and dental technology and in watchmaking industry • New refined method for inventories value adjustment provisions • Improved profitability (excluding special effects) and global performance • Challenges related to the supply
Slide 19: Calendar of events
Financial results 2022 Calendar of events • April 5 Annual General Meeting 2023 • July 26 Publication Half-Year Report 2023 Media and analysts' conference 2023 | March 6, 2023 19/48
Slide 20: Management report 2022
Michael Hauser Management report 2022
Slide 21: Tornos continues to improve its performance
Management report 2022 Tornos continues to improve its performance Media and analysts' conference 2023 | March 6, 2023 21/48
Slide 22: Focusing on innovative solutions that give customers a competitive edge
Management report 2022 Focusing on innovative solutions that give customers a competitive edge Internationalize Strengthen our Grow through Establish Tornos’ Enhance our Deliver unique our business flexibility innovation services as a operational solutions for targeted differentiator excellence mark
Slide 23: Internationalization: manufacturing footprint
Management report 2022 Internationalization: manufacturing footprint General overview Moutier (CH) High-end machines Xian Taichung (CN) (TW) Standard Entry machines machines 33% Wrocław 67% Milan (PL) (IT) Machine Machine overhauls components Machines built (units) Asia Switzerland Media and analyst
Slide 24: Internationalization: manufacturing footprint Italy
Management report 2022 Internationalization: manufacturing footprint Italy Media and analysts' conference 2023 | March 6, 2023 24/48
Slide 25: Internationalization: manufacturing footprint Taiwan region
Management report 2022 Internationalization: manufacturing footprint Taiwan region Media and analysts' conference 2023 | March 6, 2023 25/48
Slide 26: Internationalization: Sales and Services footprint
Management report 2022 Internationalization: Sales and Services footprint Full-time Americas (AM) Europe (EU) Asia (AS) equivalents (FTEs) • United States • Switzerland • China • Brazil • France • Thailand • Italy • Taiwan region 53% 47% • Germany • Spain • Poland Sales & Service Others Media and an
Slide 27: Increased flexibility
Management report 2022 Increased flexibility Average personnel cost/FTE 130 90 81 80 KCHF 2012 2017 2021 2022 Media and analysts' conference 2023 | March 6, 2023 27/48
Slide 28: Innovation: R&D expenditure
Management report 2022 Innovation: R&D expenditure 7 6 MCHF R&D expenditure 2021 2022 Media and analysts' conference 2023 | March 6, 2023 28/48
Slide 29: Innovation: machines
Management report 2022 Innovation: machines Swiss DT 26/6 SwissNano 10 SwissDECO 36 Media and analysts' conference 2023 | March 6, 2023 29/48
Slide 30: Innovation: software
Management report 2022 Innovation: software Media and analysts' conference 2023 | March 6, 2023 30/48
Slide 31: Services as differentiator: DECO 10 Plus
Management report 2022 Services as differentiator: DECO 10 Plus Sales 26% 74% Machines Service DECO 10 Plus Service Business 7% 93% DECO 10 Plus Other Services DECO 10 Plus Media and analysts' conference 2023 | March 6, 2023 31/48
Slide 32: Sustainability
Management report 2022 Sustainability Media and analysts' conference 2023 | March 6, 2023 32/48
Slide 33: Sustainability
Management report 2022 Sustainability • SwissNano 7 • One household • 210 working days/year • 5 people • 4 000 machining hours/year • 365 days/year • 4 000 kWh/year • 4 600 kWh/year * * Source: Bundesamt für Energie Media and analysts' conference 2023 | March 6, 2023 33/48
Slide 34: Operational excellence: assembly
Management report 2022 Operational excellence: assembly Machine assembly line (Moutier) Spindle assembly line (Taichung) Media and analysts' conference 2023 | March 6, 2023 34/48
Slide 35: Operational excellence: marketing
Management report 2022 Operational excellence: marketing Digital marketing levers Search Engine CRM Social Media Others E-Mailing Website Traditional marketing levers Advertising in trade media Direct Mailings Customer magazine Live-marketing (print) (print) (print) (trade fairs, events, etc.) Media
Slide 36: Operational excellence: marketing
Management report 2022 Operational excellence: marketing (July 2022) Titan Gilroy visits Tornos HQ in Moutier (CH) (November 2022) One of many videos on their YouTube channel with 270 000 views (November 2022) Delegation of Tornos (September 2022) US visits TITANS of Delegation of TITANS of CNC in F
Slide 37: Unique solutions for targeted market segments: dental implant
Management report 2022 Unique solutions for targeted market segments Application: dental implant Customer request Tornos • Decrease cycle time • Achieved Cycle time Saving • Traditional technology 150 sec 77% • MultiSwiss 35 sec MultiSwiss 6x16 Media and analysts' conference 2023 | March 6, 2023 3
Slide 38: Unique solutions for targeted market segments: heart pump
Management report 2022 Unique solutions for targeted market segments Application: heart pump Customer request Tornos • No burs • Achieved • Decrease cycle time • Achieved x 3 EvoDECO 16 Media and analysts' conference 2023 | March 6, 2023 38/48
Slide 39: Unique solutions for targeted market segments: needle for eye surgery
Management report 2022 Unique solutions for targeted market segments Application: needle for eye surgery Customer request Tornos • No burs • Achieved • Sharp cutting edge • Achieved • Decrease cycle time • Achieved 30% SwissNano 7 Media and analysts' conference 2023 | March 6, 2023 39/48
Slide 40: Unique solutions for targeted market segments: jewelry parts
Management report 2022 Unique solutions for targeted market segments Application: jewelry parts made Customer request Tornos of precious metal • Thin parts • Achieved • Super surface finish • Achieved • TQ (good parts) > 99% • Achieved 99,93% • Mat. recovery rate > 90% • Achieved 99,8% BA 10
Slide 41: Outlook
Management report 2022 Outlook Board of Directors, Tornos Group General Management, Tornos Group Media and analysts' conference 2023 | March 6, 2023 41/48
Slide 42: Tornos is on pace with tomorrow's industrial trends
Management report 2022 Tornos is on pace with tomorrow's industrial trends Industry trends Tornos • Turning, milling, gear-hobbing, polygon • Multi-process machines milling, thread-whirling, rolling, sawing, forging, bending • Easy-to-use/operate machines • TISIS Expert programming system (3 000
Slide 43: Investment case: Tornos
Management report 2022 Investment case: Tornos • Decreased dependency of automotive industry • Attractive end-customer markets (luxury goods, medtech) • Innovative products and promising product road map • Machine plants close to end-user markets • Professional management team • Solid equity • Indus
Slide 44: Questions and answers
TORNOS Questions and answers
Slide 45: Inquiries
Tornos Holding Ltd Inquiries Investor relations Stéphane Pittet +41 32 494 42 33 / pittet.s@tornos.com investors@tornos.com / communications@tornos.com For more details on Tornos Group, please refer to www.tornos.com Media and analysts' conference 2023 | March 6, 2023 45/48
Slide 46: Disclaimer
Tornos Holding Ltd Disclaimer Tornos Holding Ltd is confirming its best efforts to present accurate and up-to-date information in this document, Tornos Holding Ltd gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and dis
Slide 47: Thank you for your attention
TORNOS Thank you for your attention
Slide 48: Tornos - We keep you turning
TORNOS We keep you turning