Comet Holding Ag · SIX:COTN

Comet — FY2011 Earnings Presentation

52 slides from Comet's earnings presentation, Mar 15, 2012

  1. Slide 1: Presentation of the Results 2011

    Zürich March 15, 2012 Presentation of the Results 2011 Ronald Fehlmann, CEO Markus Portmann, CFO Technology with Passion

  2. Slide 2: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 2

  3. Slide 3: COMET Group profile

    Results FY 2011 COMET Group profile Leading global provider of high-quality systems, components and services in industrial x-ray, e-beam and RF technologies  Founded 1948  > 700 employees  12 subsidiaries / branch offices worldwide  Leading position in relevant markets  Shareholder structure: 1

  4. Slide 4: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 4

  5. Slide 5: 2011: Sales on previous year level, net income up substantially

    Results FY 2011 2011: Sales on previous year level, net income up substantially Net sales in CHF from 217.4m to 217.0m + 12.0% (currency adjusted)  EBITDA margin from 13.0% to 12.6%  Net income in CHF from 7.5m to 10.1m  Technology with Passion 15.3.2012 | 5

  6. Slide 6: 2011: Solid financial structure

    Results FY 2011 2011: Solid financial structure Cashflow in CHF from 19.2m to 28.2m  Equity ratio from 52.0% to 57.2%  Net debt in CHF from 44.4m to 32.1m  Technology with Passion 15.3.2012 | 6

  7. Slide 7: 2011: Well-balanced result of net sales by region

    Results FY 2011 2011: Well-balanced result of net sales by region Strong growth in Europe (+27%) 4% 31% 37% 2010 20102011 2011 2010 2011 2010 2010 2011 2010 2011 in CHF 2011 28% Europe North America Asia RoW Europe North America Asia Technology with Passion 15.3.2012 | 7

  8. Slide 8: 2011: Sales development by division and region

    Results FY 2011 2011: Sales development by division and region Europe:  Strong demand in automotive and electronics market  Acquisition of Stolberg HF-Technik North America:  Decreased demand from semiconductor market  Reduced spending in security market Asia:  Solar projects postponed, stagnat

  9. Slide 9: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 9

  10. Slide 10: Highlights 2011

    Results FY 2011 Highlights 2011  +12 % net sales growth in local currencies  Forward integration: important milestone reached with acquisition of Stolberg HF-Technik August 2011  Investment in commercialization of technology: new application center in Heilbronn and San Jose  Break through innova

  11. Slide 11: Systems 2011: Solid profitable growth

    Results FY 2011 Systems 2011: Solid profitable growth  Profitable growth of + 23% in local currencies  Break through new laminography method  Sustained demand in automotive and electronics sectors in Europe and Asia  Significant new orders in aerospace end of 2011  Initiatives for profitability

  12. Slide 12: Modules & Components 2011: Industrial X-Ray

    Results FY 2011 Modules & Components 2011 Industrial X-Ray: Market position defended Modules & Components  +2.2% growth in local currencies thanks to innovative products and strong market position Industrial X-Ray  Market leadership preserved in non-destructive testing despite competitive pressure

  13. Slide 13: Modules & Components 2011: Plasma Control Technologies

    Results FY 2011 Modules & Components 2011 Plasma Control Technologies: A year of contrasts  Decline in demand from semiconductor market in H2 2012  Strengthening of market position through acquisition of high frequency generator capabilities (Stolberg)  Higher proximity to customers through estab

  14. Slide 14: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 14

  15. Slide 15: Development of Market Segments

    Results FY 2011 Development of Market Segments Non destructive testing (OEM und Plasma excitation (OEM) end customer) 68% of Group sales 27% of Group sales Automotive Chips (Semicon) Aerospace Flat panels Electronics Energy Solar NDT Components Medical 0 5'000 10'000 15'000 20'000 25'000 30'000 35'0

  16. Slide 16: Non destructive testing 2011: Continued growth

    Results FY 2011 Non destructive testing 2011: Continued growth 68% of Group sales  Automotive: continued strong demand with Asia gaining importance  Aerospace: film replacement in aerospace  increase in new orders towards end of 2011  Electronics: strong demand for high resolution microfocus sys

  17. Slide 17: Plasma excitation 2011: A year of contrasts

    Results FY 2011 Plasma excitation 2011: A year of contrasts 27% of Group sales  Semiconductor market  Investments of consumers in new technologies (tablets-flash memories) could not compensate decreased demand for legacy (DRAM) products in Q3-Q4  Higher demand for Built-to-Spec RF match boxes (vs

  18. Slide 18: Security 2011: Reduced spending

    Results FY 2011 Security 2011: Reduced spending 3% of Group sales  Reduced spending by governments into security sector  intention to invest in next generation technologies with higher efficiency but lower budget  Development projects started with major customers for next generation inspection sy

  19. Slide 19: Sterilization through e-beam 2011

    Results FY 2011 Sterilization through e-beam 2011 2% of Group sales  Liquid food packaging:  Life time tests: > 10‘000 hours  Field tests: > 20m packages produced and sold  Biologic results meet expectations  Efficiency and costs objectives reached  Overall system to be finetuned according to

  20. Slide 20: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 20

  21. Slide 21: Net Sales Growth at LC for all Business Activities

    Results FY 2011 Net Sales Growth at LC* for all Business Activities Net sales in Growth millions of CHF FY ’11 FY ’10 CHF in % LC* in % X-Ray Systems 115.2 106.2 + 8.5 + 22.6 Industrial X-Ray 51.4 55.1 - 6.7 + 3.9 Plasma Control 67.7 75.5 - 10.3 + 0.9 Technologies Elimination Intersegment Sales -17.

  22. Slide 22: Net Sales Growth at LC for all Regions

    Results FY 2011 Net Sales Growth at LC* for all Regions Net sales in Growth millions of CHF FY ’11 FY ’10 CHF in % LC* in % Europe 66.7 52.5 + 27.2 + 39.4 North America 59.8 77.6 - 23.0 -9.5 Asia 82.2 82.8 - 0.8 + 10.2 RoW 8.3 4.6 + 83.0 +107.1 Group 217.0 217.4 - 0.2 + 12.3  PCT including 2.0 Mio.

  23. Slide 23: Group net sales increased by 12% in local currencies

    Results FY 2011 Group net Sales increased by 12% in local currencies 260 250 + 24.0 + 1.9 - 14.0 240 - 15.0 230 + 2.8 CHF millions 217.4 - 0.1 217.0 220 210 200 Volume effect in local Negative currency 190 currencies effect CHF 26.7m CHF - 27.1m 180 Net Sales Elimination Division Division Eliminatio

  24. Slide 24: Net Exposure of USD 50m in FY 2011, natural Hedge for EUR

    Results FY 2011 Net Exposure of USD 50m in FY 2011, natural Hedge for EUR 220 EBIT 14 200 Net Activities to mitigate the net 35 180 85 Exposure (16%) exposure include USD 50m (39%) 160 21  Sourcing in USD / EUR, 140 exchange rate clauses USD 120 23  Increase efficiency CHF millions 79 Other 100 (p

  25. Slide 25: Division Systems: Increase of net sales and EBITDA

    Results FY 2011 Increase of net Sales by 8.5% and EBITDA by CHF 3.4m Division Systems Net sales EBITDA 130.0 8.0 120.0 115.2 110.0 106.2 6.9 7.0 100.0 6.0 90.0 80.0 5.0 CHF millions 70.0 4.0 60.0 3.5 50.0 3.0 40.0 2.0 30.0 20.0 1.0 10.0 0.0 0.0 2010 2011 2010 2011 EBITDA Margin: 3.3% 6.0% Technology

  26. Slide 26: Division Modules & Components: Decrease in net sales and EBITDA

    Results FY 2011 Decrease in net Sales by 8.8% and EBITDA by CHF 6.1m Division Modules & Components Net sales EBITDA 140.0 130.6 130.0 30.0 27.3 119.1 120.0 110.0 25.0 100.0 21.2 90.0 20.0 CHF millions 80.0 CHF millions 70.0 15.0 60.0 50.0 10.0 40.0 30.0 20.0 5.0 10.0 0.0 0.0 2010 2011 2010 2011 EBIT

  27. Slide 27: Strong profitability despite challenging markets

    Results FY 2011 Strong profitability despite challenging markets FY Change in thousands of CHF 2011 2010 Absolut in% Incoming Orders 213'335 230'686 -17'351 -8% Net sales 216'965 217'395 -430 0% Cost of sales -136'568 -135'831 -737 Gross profit 80'397 81'564 -1'167 Gross profit margin in % 37.1% 37.

  28. Slide 28: Strong growth in Net Income in 2011

    Results FY 2011 Strong growth in Net Income in 2011 Net income 12.0 10.1 7.5  Operating income of CHF 8.0 14.7m (PY CHF 16.2m) CHF millions 4.0  Net financing expenses CHF 4.0m (PY CHF 6.3m) 0.0  Income tax expense CHF 2010 2011 0.6m (PY 2.4m) EPS: 9.89 CHF 13.22 CHF Technology with Passion 15.3.

  29. Slide 29: Impact of net Financing Items on net Income

    Results FY 2011 Impact of net Financing Items on net Income for the Period Net financing items amounted to an expense of CHF 4.0m (prior year: CHF 6.3m), reflecting the following factors:  Interest expenses were CHF 2.5m (PY CHF 3.4m) related mainly to senior debt and mortgage on building in Flamat

  30. Slide 30: Impact of income Taxes on Net Income of the Period

    Results FY 2011 Impact of income Taxes on Net Income of the Period  Applying the expected Group tax rate, the EBT of CHF 10.6m would lead to an expected tax expense of CHF 3.0m  Total income tax expense reported sums up to CHF 0.6m (PY CHF 2.4m). The difference to the expected tax expense of CHF 2

  31. Slide 31: Investing and Financing Activities paid out of Operating Cash Flow

    Results FY 2011 Investing and Financing Activities were fully paid out of strong Cash Flow provided by Operating Activities CF provided by operating Cash in acitvities CF used in investing Free Cash Flow CF used in financing TCHF activities = 17’625 TCHF activities 28‘172 TCHF - 10‘547 TCHF - 14‘226

  32. Slide 32: Sound Balance Sheet Ratios and Decrease of total Assets

    Results FY 2011 Sound Balance Sheet Ratios and Decrease of total Assets Amount In millions of CHF FY2011 FY2010 Current assets 92.6 44.4% 99.5 46.3% Non-current assets 115.8 55.6% 115.3 53.7% Total assets 208.4 100.0% 214.8 100.0% Liabilities 89.1 42.8% 103.1 48.0% Equity 119.3 57.2% 111.7 52.0% Tot

  33. Slide 33: Improvement on Working Capital Management

    Results FY 2011 Improvement on Working Capital Management Working capital ratios  Total net working capital decreased by CHF 5.1m reflecting our efforts to optimize capital employment  Decrease in trade receivables to CHF 30.9m (prior year: CHF 35.4m) despite strong net sales volumes towards year-

  34. Slide 34: Non-current Assets influenced by Stolberg Acquisition

    Results FY 2011 Non-current Assets influenced by Stolberg Acquisition Non-current assets increased by CHF 0.5m or 0.5%  Compared to prior year-end property, plant and equipment and intangible assets decreased by CHF 1.1m  Capital expenditures as a mixture of replacement, capacity increases and SAP

  35. Slide 35: Repayment of Debt and strong Equity Ratio

    Results FY 2011 Repayment of Debt and strong Equity Ratio Current liabilities decreased by CHF 4.3m, mainly driven by:  Decrease in accounts trade payable  Decrease in accrued expenses (bonus)  Increase in other financial liabilities and income tax payable  Increase in current provisions (warran

  36. Slide 36: Strong Reduction in Net Debt; Increase in Equity Ratio

    Results FY 2011 Strong Reduction in Net Debt; Increase in Equity Ratio Mio. CHF Net debt vs. Equity 140.0 70.0% 119.3 120.0 112.4 111.7 57.2% 60.0% 52.0% 100.0 48.9% 50.0% 80.0 40.0% 32.7% 60.0 54.6 28.4% 30.0% 44.4 21.2% 40.0 32.1 20.0% 20.0 10.0% 0.0 0.0% December 31, 2009 December 31, 2010 Decemb

  37. Slide 37: Equity Ratio net of Intangible Assets reaches 42%

    Results FY 2011 Equity Ratio net of Intangible Assets reaches 42% 140.0 70.0% Total shareholders' equity 120.0 60.0% Total intangible assets 100.0 50.0% Goodwill / trademarks (incl. CHF millions intangible assets) 80.0 42.4% 40.0% Intangibles in % of Equity 35.4% Equity ratio net of intangibles 60.0

  38. Slide 38: Dividend: Pay-out ratio of 30% proposed

    Results FY 2011 Dividend: Pay-out ratio of 30% proposed 4.00 4.00 3.50 3.00 3.00 3.00 2007 2008 in CHF 2.00 2009 2010 2011 * 1.00 0.50 0.00 * The Board of Directors will propose to distribute CHF 4.00 per share out of the reserve of distributable paid-in capital (pay-out ratio 30%) Technology with P

  39. Slide 39: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 39

  40. Slide 40: Prof. Dr. Gian-Luca Bona nominated for election to the Board of Directors

    Results FY 2011 Prof. Dr. Gian-Luca Bona nominated for election to the Board of Directors Born 1957, Swiss citizen, Dr. sc. nat, ETH 2009 – today CEO of Empa Dübendorf, St. Gallen, Thun and professor at ETH Zurich und der EPF Lausanne 1988 – 2009 Various R&D functions at IBM 1998 – 2004 IBM Research

  41. Slide 41: Portable X-Ray Business under new Leadership

    Results FY 2011 Portable X-Ray Business under new Leadership Systems Modules & Components Portable X-Ray Industrial Plasma Control X-Ray Systems X-Ray Technologies Technology with Passion 15.3.2012 1/12 | 41

  42. Slide 42: Portable X-Ray

    Results FY 2011 Portable X-Ray  Portable X-Ray systems (in-field inspection) for testing welded seams in pipe production  Mobile X-Ray systems (mounted on a trolley) for high powered inspection of weldings in areas with limited space Main Applications  Testing pipes & vessels  Inspection of cast

  43. Slide 43: Outlook 2012

    Results FY 2011 Outlook 2012 Division Product Area Key Initiatives Modules & Plasma Control  Launch of new RF generators Technologies  Development of new IP for power units (matchboxes and generators) Components  Work in 450 mm dev. programs with major customers  Development of global support &

  44. Slide 44: Outlook 2012

    Outlook 2012 Results FY 2011 COMET Group 2012: net sales and EBITDA on 2011 level expected  For 2012 the Group expects a continued challenging environment in the first half of the year, with results significantly weaker than in the first six months of 2011.  For the full year 2012, on the assumpti

  45. Slide 45: Financial calendar for the COMET Group 2012

    Results FY 2011 Financial calendar for the COMET Group 2012 March 15, 2012 Publication of 2011 annual financial statements April 18, 2012 Annual Shareholder Meeting August 23, 2012 Publication of 2012 half-year results November 14, 2012 Investor Day 2012 Technology with Passion 15.3.2012 | 45

  46. Slide 46: Agenda

    Results FY 2011 Agenda COMET Group at a glance Review FY 2011  Key Figures  Highlights  Markets  Financial Results Outlook 2012 Questions & Answers Technology with Passion 15.3.2012 | 46

  47. Slide 47: Disclaimer

    Results FY 2011 Disclaimer This document contains forward-looking statements about COMET 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

  48. Slide 48: Thank you for your attention.

    © 2012 COMET HOLDING AG Thank you for your attention. Technology with Passion COMET HOLDING AG Herrengasse 10, CH-3175 Flamatt T +41 31 744 90 00, F +41 31 744 90 90 Technology with Passion info@comet-group.com, www.comet-group.com

  49. Slide 49: Back-up: Volatile development of Swiss Franc throughout 2011

    Results FY 2011 Ba ck -up Volatile development of Swiss Franc throughout 2011 Average Rates Spot rate YTD 12.10 YTD 12.11 Diff in % Dez 10 Dez 11 Diff in % EUR/CHF 1.38 1.23 -11% 1.25 1.21 -3% USD/CHF 1.04 0.89 -15% 0.93 0.94 0% JPY/CHF 1.19 1.11 -7% 1.15 1.22 6% DKK/CHF 0.19 0.17 -11% 0.17 0.16 -3%

  50. Slide 50: Back-up: FX transaction risk, shown in CHF

    Results FY 2011 Ba ck -up FX – transaction risk, shown in CHF Dec 2011 YTD in CHF million CHF USD EUR JPY CNY Other Total Switzerland 25.7 7.8 9.8 - - 1.0 44.3 Germany - 14.0 72.5 -0.0 - -0.0 86.5 United States - 62.6 - - - - 62.6 Denmark - 0.0 1.1 - - 0.8 1.9 China 0.7 0.2 - - 12.3 - 13.2 Japan - -

  51. Slide 51: Back-up: Akquisition Stolberg – Kaufpreis und Zahlungen

    Results FY 2011 Ba ck -up Akquisition Stolberg – Kaufpreis und Zahlungen in Tausend EUR CHF *) Basispreis Kaufvertrag 5‘263 6‘205 Net-Cash-Ausgleich gem. Vertrag 267 315 Vertraglicher Kaufpreis 5‘530 6‘520 Abzüglich erworbene flüssige Mittel -425 -501 Cash Kaufpreis 5‘105 6‘019 Bezahlter Preis für B

  52. Slide 52: Back-up: Akquisition Stolberg – IFRS Kaufpreis und Aufwand

    Results FY 2011 Ba ck -up Akquisition Stolberg – IFRS Kaufpreis und Aufwand in Tausend EUR CHF Vertraglicher Kaufpreis 5‘530 6‘520 Davon IFRS Beteiligungswert -4‘008 -4‘725 Davon Fair-Value-Adj. bedingter Kaufpreis (Rückstellung) -143 -169 IFRS Lohnaufwand (Sep. 2011 bis Feb 2013) 1‘379 1‘626 Beratu

COMET Holding — FY2011 Earnings Presentation on 6ix