Slide 1: Presentation of full year results 2017
Zurich, March 15, 2018 Presentation of full year results 2017 Dr. René Lenggenhager, CEO Markus Portmann, CFO Technology with Passion FY Results 2017 | March 15, 2018 1
Slide 2: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2018 R. Lenggenhager 5 Questions & Answers All Technology with Passion FY Results 2017 | March 15, 2018 2
Slide 3: The Comet Group at a glance
The Comet Group at a glance We are a Swiss company with high competency in three leading technologies … Technology with Passion FY Results 2017 | March 15, 2018 3
Slide 4: Enabling faster, more efficient processes: Semiconductors
The Comet Group at a glance … enabling faster, more efficient processes and safer products in many industries 48% of 2017 Semiconductors Group sales Microchips & Sensors Displays Technology with Passion FY Results 2017 | March 15, 2018 4
Slide 5: Enabling faster, more efficient processes: Electronics
The Comet Group at a glance … enabling faster, more efficient processes and safer products in many industries 45% Electronics of 2017 Group sales Automotive / Foundries Aerospace Security / Technology with Passion FY Results 2017 | March 15, 2018 5
Slide 6: Enabling faster, more efficient processes: Food
The Comet Group at a glance … enabling faster, more efficient processes and safer products in many industries 7% of 2017 Food Group sales Printing Technology with Passion FY Results 2017 | March 15, 2018 6
Slide 7: Strong global presence boosted with opening of Lab One
The Comet Group at a Glance Strong global presence boosted with opening of Lab One, the joint technology and application center in Silicon Valley 14 Sales outside Locations worldwide … Switzerland 99% Employees >1400 Technology with Passion Results FY 2017 | March 15, 2018 7
Slide 8: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2018 R. Lenggenhager 5 Questions & Answers All Technology with Passion FY Results 2017 | March 15, 2018 8
Slide 9: Comet Group delivers further strong results
Review of FY 2017 - Group and Business Segments Comet Group delivers further strong results Growth Net sales in CHF Up 31.9% year-over-year from 332.4m to 438.4m Net income in CHF Up 29.7% year-over-year from 27.3m to 35.5m Profitability EBITDA margin Up 0.2% points year-over-year from 14.3% to 14.5
Slide 10: Strong balance sheet despite the investment in growth
Review of FY 2017 - Group and Business Segments Strong balance sheet despite the investment in growth Net debt in CHF Balance Sheet Increased net debt year-over-year Quality of from -4.4m (= net cash) to 7.4m (= net debt) Equity ratio Up 1.6% points year-over-year from 51.1% to 52.7% Economic profit
Slide 11: The sales growth was driven by all four segments
Review of FY 2017 - Group and Business Segments The sales growth was driven by all four segments ... PCT IXS IXM EBT +53.0% +13.0% +13.2% +74.6% Net sales 210.5m 137.3m 78.8m 29.5m in CHF (FY 2016: 137.6m) (FY 2016: 121.4m) (FY 2016: 69.6m) (FY 2016: 16.9m) EBITDA 26.5% 6.1% 22.8% n/a margin (FY 201
Slide 12: ... and all core regions
Review of FY 2017 - Group and Business Segments … and all core regions Growth rate by region Geographical distribution of net sales USA Europe Asia +42.3% +9.7% +33.1% RoW 51.0% Technology with Passion FY Results 2017 | March 15, 2018 12
Slide 13: PCT delivers the fifth consecutive year of record results
Review of FY 2017 - Group and Business Segments PCT delivers the fifth consecutive year of record results 53.0% sales growth in local currencies More than proportional growth with high-end RF solutions based on equipment of new chip fabrication plants with US customers Increased business in Chin
Slide 14: Strong partnerships and innovation are success factors
Strong Awards for partnerships and innovation and innovation are partnership success factors Successful start of "cito Plus" sales Investment to be accelerated Work on new RF power platform to be launched Technology with Passion Results FY 2017 | March 15, 2018 14
Slide 15: Customers are waiting for the new RF generator
Customers are Concept eval. waiting for the α new RF generator Development β Verification & validation γ Introduction “We are highly interested in LAM the new RF power generator TEL 700m to replace the old ones in our fabs.” Asian Customer AMAT Generator market Technology with Passion Results FY 201
Slide 16: IXS: Expansion of market position, high investment in renewal of product portfolio
Review of FY 2017 - Group and Business Segments IXS: Expansion of market position, high investment in renewal of product portfolio 12.4% sales growth in local currencies Mainly with large computed tomography (CT) systems in the automotive industry in the refocused “science & new materials” seg
Slide 17: Sharpened strategic focus as solution provider
Sharpened Launch of high- strategic focus as performance CT solution provider inspection systems Cougar & Cheetah Evo for Industry 4.0 applications Further investment in portfolio innovation Technology with Passion Results FY 2017 | March 15, 2018 17
Slide 18: Successful launch and first sales of FF Metrology
Successful launch and first sales of FF Metrology systems Technology with Passion Results FY 2017 | March 15, 2018 18
Slide 19: IXM: Profitable growth in all markets and regions
Review of FY 2017 - Group and Business Segments IXM: Profitable growth in all markets and regions 12.5% sales growth in local currencies in all markets and regions 6% growth in NDT core business 45% growth in the security market with highly reliable x-ray sources that are tailored to the various
Slide 20: Launch of iVario
IoT capable, Launch of iVario for a broad range of applications Technology with Passion FY Results 2017 | March 15, 2018 20
Slide 21: For further growth in the core markets of non-destructive testing and security
For further growth in the core markets of non- destructive testing and security Technology with Passion Results FY 2017 | March 15, 2018 21
Slide 22: EBT: Development of new applications; high costs weigh on bottom line
Review of FY 2017 - Group and Business Segments EBT: Development of new applications; high costs in systems business weigh on bottom line 73.8% increase in sales in local currencies based on Increased modules business (rollout Tetra Pak) High backlog of orders from the prior year in the systems
Slide 23: Further investment in new applications
Further Launch of ebeam- investment based digital printing in new machine, GAIA applications in Field tests for the partnership with inactivation of dry foods Uteco, Bühler and successful, substanti- ating the effectiveness Tetra Pak of ebeam Updated strategy to integrate ebeam in new product genera
Slide 24: ebeam systems redesigned and standardized
ebeam systems redesigned and standardized to address competitive market situation Technology with Passion Results FY 2017 | March 15, 2018 24
Slide 25: Treatment of hatching eggs: a new application
Treatment of hatching eggs: a new application in partnership with Bell Food Group Demonstrator built, field tests in 2018 Technology with Passion Results FY 2017 | March 15, 2018 25
Slide 26: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2018 R. Lenggenhager 5 Questions & Answers All Technology with Passion FY Results 2017 | March 15, 2018 26
Slide 27: Higher new orders, strong net sales and improved operating performance
Financial Results Higher new orders, strong net sales and improved operating performance FY Change IO/BL in line with expected growth in CHF thousands 2017 2016 Absolute In % Gross profit margin improvement driven New orders 441'987 358'980 83'007 23% by operation initiatives, e.g. Backlog 109'3
Slide 28: Net USD exposure of CHF 125m in 2017; other currencies mostly naturally hedged
Financial Results Net USD exposure of CHF 125m in 2017; other currencies mostly naturally hedged Increased USD exposure as 100% 11.6% sales in USD are growing faster than costs 80% Foreign exchange rates had a Net USD 30.2% 58.7% exposure of negative impact on EBIT of CHF 125m 60% USD CHF 0.6m 7
Slide 29: Strong sales growth, mainly driven by PCT
Financial Results Strong sales growth, mainly driven by PCT +31.9% 500 +12.5 -4.4 +1.1*) 438.4 450 +73.0 +15.1 +8.7 400 350 332.4 CHF millions 300 250 200 150 Volume effect in local currencies Positive 100 CHF +104.9m currency effect (+31.6%) (+0.3%) 50 - Net sales 2016 PCT IXS IXM EBT Elim. Currenc
Slide 30: EBITDA margin increase of 1.6% on a comparable basis
Financial Results EBITDA margin increase of 1.6% on a comparable basis Reconciliation as reported IAS19 (1) before IAS19 @ constant FX @ constant FX FX impact IAS19 (2) (3) US as reported @ nominal FX Dec YTD 2017 vs. PY rates rates and impacts rates vs. PY bevor IAS19 (TC / Tax) December YTD Decemb
Slide 31: Increase of 50% in economic profit means further growth in value for shareholders
Financial Results Increase of 50% in economic profit means further growth in value for shareholders 20 Mio. CHF Development of Economic Profit & ROCE 18.3 30% Economic profit of CHF 16.2m realized in 2017, 25% 11.3 equaling a return on capital employed of 10 20% 18% 16.2% (vs. cost of 6.1 15% 16%
Slide 32: Strong increase in net income driven by profitable sales growth
Financial Results Strong increase in net income driven by profitable sales growth +30% Operating income 45 +14.4 -0.5 -5.8 CHF 50.9m 40 35.5 (PY CHF 36.5m) 35 CHF millions 30 27.3 Net financing expenses 25 CHF 0.9m 20 (PY CHF 0.4m) 15 10 Income tax expense 5 CHF 14.6m 0 (PY CHF 8.8m) Net incom
Slide 33: Foreign exchange gains due to weaker CHF
Financial Results Foreign exchange gains due to weaker CHF Net financing items amounted to an expense of CHF 0.9m (PY CHF 0.4m), reflecting the following factors: Interest expenses decreased to CHF 1.3m (PY CHF 1.5m) due to mortgage payback The net currency translation gain recorded in the incom
Slide 34: 2017 normalized effective tax rate at 25%
Financial Results 2017 normalized effective tax rate at 25% Reported effective tax rate of 29.1% includes one-off impacts of 3.0% points US Tax Cuts & Jobs Act (revaluation loss on deferred tax assets of CHF 1.5m) 1.1% points non-tax-deductible expense (US trade compliance cost) Actual incom
Slide 35: Growing balance sheet and improved ratios
Financial Results Growing balance sheet and improved ratios In CHF millions 2017 2016 Current assets 237.4 60.6% 220.0 63.8% Non-current assets 154.2 39.4% 124.9 36.2% Total assets 391.5 100.0% 344.9 100.0% Liabilities 185.1 47.3% 168.6 48.9% Equity 206.4 52.7% 176.3 51.1% Total liability and equity
Slide 36: Operating and free cash flow reflect execution of growth strategy
Financial Results Operating and free cash flow reflect execution of growth strategy and investment in construction CF provided by operating CF used in investing Free cash flow CF used & provided a) Cash as of 1.1.2017 activities activities CHF -1.8m by financing activities b) Net income 2017 CHF 38.
Slide 37: Strong operating KPIs per share
Financial Results Strong operating KPIs per share 1 CHF 6 Ongoing strong 4.9 operating cash flow is 5 4.6 4.3 4.6 supporting further 4.0 4 investment in growth 3.5 initiatives and 3.4 3 increased capital 2.3 2.4 expenditures 2 2.1 1.8 2.2 1.4 1.5 1.2 1.5 1.1 1.1 Free cash flow 1 0.8 negative due
Slide 38: Working capital ratios further improved
Financial Results Working capital ratios further improved Working capital ratios Total net working capital increased by CHF 16.9m, driven by a strong year-end performance (high trade receivables balance) and a strong order backlog (rising inventory balance) Monthly average net working capital in
Slide 39: Non-current assets influenced by capital expenditure for building expansion in Flamatt
Financial Results Non-current assets influenced by capital expenditure for building expansion in Flamatt Non-current assets increased by CHF 29.3m or 23.4% Property, plant and equipment and intangible assets increased by CHF 30.1m Capital expenditure in new building in Flamatt amounted to CHF 26
Slide 40: Equity increased in absolute and relative terms, driven by profitability
Financial Results Equity increased in absolute and relative terms, driven by profitability Current liabilities increased by CHF 15.5m, mainly driven by: Increase in trade payables, accrued expenses and provisions Non-current liabilities increased by CHF 1.0m, mainly due to: Pension liabilities (
Slide 41: Very solid net debt to EBITDA ratio at 0.1x
Financial Results Very solid net debt to EBITDA ratio at 0.1x 70 1.4 Strong increase in Net debt / EBITDA Mio. CHF 60 1.2 EBITDA allows to 63.3 50 1.0 47.7 finance ongoing 40 0.8 30 36.0 39.8 35.7 0.6 investments in 0.4 growing business 20 0.4 10 0.1 0.2 0.1 2.3 4.4 As a result net debt to 0 0.0
Slide 42: Distribution to shareholders from distributable paid-in capital increased
Financial Results Distribution to shareholders from distributable paid-in capital increased vs. prior year1 1.6 70% 1.4 60% 1.2 50% 1.0 in CHF 40% 0.8 30% 0.6 0.4 20% 0.2 10% 0.0 0% 2013 2014 2015 2016 2017* Dividend Pay-out ratio in % * The Board of Directors proposes to distribute CHF 1.50 per sha
Slide 43: Agenda
Agenda 1 Comet Group at a Glance R. Lenggenhager 2 Review 2017 R. Lenggenhager Group and Business Segments 3 Financial Results M. Portmann 4 Outlook for 2018 R. Lenggenhager 5 Questions & Answers All Technology with Passion FY Results 2017 | March 15, 2018 43
Slide 44: Executive Committee strengthened with P. Hafner and S. Haferl
Outlook for 2018 Executive Committee strengthened with P. Hafner and S. Haferl, CEO to take a.i. lead of ebeam business CEO R. Lenggenhager CIO CFO E. Dubuis M. Portmann CHRO Communications P. Hafner I. Najorka COO T. Polzer Plasma Control Plasma Control ebeam X-RaySystems X-Ray Systems X-Ray X-Ray
Slide 45: Continuing, value-generating growth expected
Outlook for 2018 Continuing, value-generating growth expected Net sales in Mio. CHF ROCE in % 460-490 17-20 FX: 1.15 EUR/CHF, 0.93 USD/CHF EBITDA margin of 14-16% Technology with Passion FY Results 2017 | March 15, 2018 45
Slide 46: Segment perspective
Outlook for 2018 Segment perspective Group Sales Profitability (EBITDA margin) Growth in matchboxes and vacuum Accelerated development of innovative PCT capacitors in semiconductor market RF power platform to realize design-in and enter this new market from 2020 onwards Growth especially in new
Slide 47: Comet Group is confident it will already achieve its 2020 targets in 2019
Summary Comet Group is confident it will already achieve its 2020 targets in 2019 Comet is rounding out its successful growth engine model with four new levers to gear up for coming needs. Comet to continuously generate value-added despite investments in new applications, capacity and technology Tec
Slide 48: Financial calendar for the Comet Group
Financial calendar for the Comet Group April 26, 2018 Annual shareholder meeting in Berne August 16, 2018 Publication of 2018 half-year report November 13, 2018 Investor Day For more details on our business performance and financial results, please see our annual report at http://www.comet-group.com
Slide 49: Disclaimer
Disclaimer This document contains forward-looking statements about the Comet Group 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 of pos
Slide 50: Thank you for your interest!
Thank you for your interest! Technology with Passion FY Results 2017 | March 15, 2018 50