R. Stahl Aktiengesellschaft · XETR:RSL2
R. Stahl Aktiengesellschaft — R. Stahl — Deutsches Eigenkapitalforum 2022
43 slides from R. Stahl Aktiengesellschaft's conference presentation, Nov 29, 2022
Slide 1: Pioneering Our Way Into the Future
PIONEERING OUR WAY INTO THE FUTURE Equity story November 2022
Slide 2: Disclaimer
DISCLAIMER This presentation was prepared by R. STAHL AG and is solely for information purposes. It may not be reproduced, distributed or published without the prior consent of R. STAHL AG. This presentation contains forward-looking statements. Such forward-looking statements are based on certain as
Slide 3: Agenda
AGENDA 1 Company Overview 2 Driving Strategy: EXcellence 2023 3 Business Update 4 Appendix Equity story November 2022 3
Slide 4: R. STAHL has a tradition of more than 140 years
R. STAHL HAS A TRADITION OF MORE THAN 140 YEARS IN PIONEERING MECHANICAL AND ELECTR(ON)ICAL TECHNOLOGIES 1876 Rafael Stahl founded the company 1890 World's first circular loom with electric individual drive Development and production of explosion-protected, 1926 electrical control switches and contr
Slide 5: R. STAHL today – a leading global player in electrical explosion protection
R. STAHL TODAY – A LEADING GLOBAL PLAYER WITH A 100% FOCUS ON ELECTRICAL EXPLOSION PROTECTION Global market shares of relevant competitors1) Market #2 in Europe in explosion protection, #3 worldwide Position Markets & Oil & Gas, Chemicals, Pharma, Food & Beverage, Small Total Market Customers Shipbu
Slide 6: Explosions occur when combustible substances and oxygen meet an ignition source
EXPLOSIONS OCCUR WHEN MIXTURES OF COMBUSTIBLE SUBSTANCES AND OXYGEN MEET AN IGNITION SOURCE Basic principle of explosions 100 vol% 0 vol% Combustible substance Hydrogen • Gases (e.g., natural gas, hydrogen, etc.) • Liquids (e.g., gasoline, alcohol, solvents, etc.) Mixture too rich 74% partial • Disp
Slide 7: Electrical explosion protection is a niche application with high barriers to entry
ELECTRICAL EXPLOSION PROTECTION IS A NICHE APPLICATION WITH HIGH BARRIERS TO ENTRY Global Electric Industry by Application Total market €4.4 tn1) Market characteristics 12% Automation €1.7 tn2) Total market share • Accounts for just ~0.1% of the total Key applications of of electrical 3% Lighting el
Slide 8: We serve process industries handling potentially explosive dusts, liquids and gases
WE SERVE PROCESS INDUSTRIES THAT HANDLE POTENTIALLY EXPLOSIVE DUSTS, LIQUIDS AND GASES World market by industry sectors – IECEx/ATEX 2017-2022 Other CAGR4) (2021-2025e) Oil and gas 2) 16 20 Oil and gas 3.2% Shipbuilding Petrochemical sector 3.1% 5 Chemical industry 3.7% Total Market Food industry 2.
Slide 9: We are experts in all major technologies used in electrical explosion protection
WE ARE EXPERTS IN ALL MAJOR TECHNOLOGIES USED IN ELECTRICAL EXPLOSION PROTECTION Conceptual approach Solution Technology Position R. STAHL • Avoid combustible substances (replacement) not part of electrical explosion protection 1. Prevent formation of explosive • Avoid critical concentration (e. g.
Slide 10: Complete, innovative and market leading portfolio of explosion proof products
R. STAHL OFFERS ITS CUSTOMERS A COMPLETE, INNOVATIVE AND MARKET LEADING PORTFOLIO OF EXPLOSION PROOF PRODUCTS Electromechanical components Light fittings & signaling devices Network & automation solutions Human machine interfaces • Connectors • #1 in LED technology • Field Bus • Displays • Enclosure
Slide 11: Strong market position based on leading products and value adding systems and services
OUR STRONG MARKET POSITION IS BASED ON OUR LEADING PRODUCTS AND VALUE ADDING SYSTEMS AND SERVICES Product offering R. STAHL Components Systems tailor-made orders Services cross-selling potential support for Explosion applications and protection maintenance training and consulting market cross-sellin
Slide 12: Global presence to serve international customers
WE HAVE A GLOBAL PRESENCE TO SERVE OUR INTERNATIONAL CUSTOMERS Production and sales network of R. STAHL Subsidiaries Germany Subsidiaries Central region Subsidiaries R. STAHL Schaltgeräte GmbH R. STAHL Ltd. Electromach B.V. INDUSTRIAS STAHL R. STAHL Tranberg AS Distributors and sales agents Waldenbu
Slide 13: Agenda
AGENDA 1 Company Overview 2 Driving Strategy: EXcellence 2023 3 Business Update 4 Appendix Equity story November 2022 13
Slide 14: Positive development after 2017 interrupted by the COVID-19 crisis
THE POSITIVE DEVELOPMENT AFTER 2017 HAS BEEN INTERRUPTED BY THE COVID-19 CRISIS Development of R. STAHL 2008-2022 Sales Negative profitability development in Accelerating loss of profitability R. STAHL 2020 COVID-19 EBITDA a growing market in a declining market 350 304 309 313 300 291 287 282 268 27
Slide 15: Long-term strategy working in countries with diversified customer structures
OUR LONG-TERM STRATEGY IS WORKING IN COUNTRIES WITH BROADLY DIVERSIFIED CUSTOMER STRUCTURES R. STAHL sales 2021 vs. 2019 by countries Growth rates >0% 0 % to -10 % < -10 % > 100% of all sales losses between 2019 and 2021 arose in countries dominated by the oil, gas and petrochemical business Equity
Slide 16: Efficiency, technology and growth: EXcellence 2023
WHILE WE CONTINUE TO DRIVE EFFICIENCY AT ALL LEVELS FOCUS IS INCREASINGLY ON TECHNOLOGY AND A RETURN TO GROWTH R. STAHL 2020: EXcellence 2023: Consolidation & realignment Growth & strategic development Central group organization Data driven management Complexity reduction EFFICIENCY Portfolio manage
Slide 17: BDM, Listing & FEED: strategically preparing our markets
BDM, LISTING & FEED: STRATEGICALLY PREPARING OUR MARKETS Project Lifecycle EPC/DCS/ OEM EPC/DCS/ OEM Installation & Conceptual Pre-FEED FEED Detailed Operation Maintenance Procurement Commissioning Engineering OEM End-user Time for R. STAHL Technology Spec-In to influence Purchasing Approved Ven
Slide 18: Megatrends drive technologies and growth in our industry
MEGATRENDS DRIVE TECHNOLOGIES AND GROWTH IN OUR INDUSTRY Trends Needs Opportunities for R. STAHL Growing need for energy and food: Population & • Oil expected to reach its peak beyond 2030 • Rising number of people prosperity growth • Growth in chemicals, pharma and food & beverage • Higher standard
Slide 19: Natural gas is the most eco-friendly fossil fuel – LNG to dominate
NATURAL GAS IS THE MOST ECO-FRIENDLY FOSSIL FUEL – AND LNG IS SET TO BECOME THE DOMINATING DELIVERY MECHANISM Climate Reduction of CO2 emissions: Change Near-term: low-carbon fossils Relative CO2 emissions by energy source (at equal combustion energy) 100% 80% 60% 40% 20% 0% Coal Oil Natural gas / L
Slide 20: Global LNG market offers significant growth potential
THE GLOBAL LNG MARKET OFFERS SIGNIFICANT GROWTH POTENTIAL OVER THE NEXT TWO DECADES Projected global LNG demand until 20401) mtpa 2) CAGR 2018-2040 800 Asia Pacific and Europe will account for >85% Global 4.0% of incremental LNG demand 700 Other 5.9% Europe 4.5% 600 Asia Pacific 3.7% 500 400 300 200
Slide 21: Leverage strong position in LNG shipping to outgrow the LNG market
WE AIM TO LEVERAGE OUR STRONG POSITION IN LNG SHIPPING TO OUTGROW THE OVERALL LNG MARKET LNG value chain 1) Fuel for trucks and ships Gas field / Gas processsing LNG LNG loading Open LNG receiving LNG Regas- Gas Power Power-to-gas facilities LNG Liquefaction plant tank terminal transportation termin
Slide 22: Hydrogen's hazardous properties make explosion protection key
DUE TO THE UNIQUE HAZARDOUS PROPERTIES OF HYDROGEN, EXPLOSION PROTECTION IS KEY TO THIS TECHNOLOGY’S SAFETY H2 + e-fuels as sustainable source of energy of the future Climate Reduction of CO2 emissions: Change Long-term: carbon-free energy Safety aspects of hydrogen vs. fossil fuels Value Chain Rati
Slide 23: Example: hydrogen fueling station with safety concept and equipment
EXAMPLE: HYDROGEN FUELING STATION WITH SAFETY CONCEPT AND EQUIPMENT BY R. STAHL Container solution and functional safety concept Service Concept Example illustration of permanent and temporary hazardous areas • Engineering Service Sales potentials • SIL (safety integrity level) verification • Short
Slide 24: New solar park in Waldenburg a building block for hydrogen and sustainability strategy
THE NEW SOLAR PARK IN WALDENBURG WILL BE AN IMPORTANT BUILDING BLOCK IN OUR HYDROGEN AS WELL AS IN OUR SUSTAINABILITY STRATEGY • Investment approx. 4 million €; financing from WürthLeasing; payback approx. 5 years • With the operation of the solar park our global operations will be carbon neutral Eq
Slide 25: Strategy addresses the full potential of digitalization
OUR STRATEGY ADDRESSES THE FULL POTENTIAL THAT DIGITALIZATION OFFERS TO OUR BUSINESS AND CUSTOMERS Margin potential from efficiency gains Growth potential from market trends Digital infrastructure and processes Digital products • Harmonization of IT systems (hardware and software) Extend and complem
Slide 26: Developing key competencies, digitization and automation of processes
WE ARE DRIVING THE DEVELOPMENT OF KEY COMPETENCIES AS WELL AS THE DIGITIZATION AND AUTOMATION OF PROCESSES Investing in key competencies Digitalization of processes Automation of processes Deburring of plastic enclosures Final assembly with digital worker guidance Automated pressure testing of compo
Slide 27: Digitalization: we already have a wide range of digital solutions
DIGITALIZATION: WE ALREADY HAVE A WIDE RANGE OF DIGITAL SOLUTIONS Examples of R. STAHL‘s solutions today Control and visualization of Communication protocols process or integration in existing • Profinet • EthernetIP Asset Management System (AMS) • ModbusTCP • Others Physical layer: Connectivity inf
Slide 28: Digital solutions to control light and heating systems
R. STAHL ALREADY OFFERS DIGITAL SOLUTIONS TO CONTROL LIGHT AND HEATING SYSTEMS Example: X-Connect (R. STAHL Tranberg) • R. STAHL is supplier for Yara Birkeland, the first fully electric and autonomous container ship without emissions • Fully automated control of light and heating systems • Control s
Slide 29: Investment levels in R&D must be increased further
IN ORDER TO ADDRESS MARKET NEEDS, INVESTMENT LEVELS MUST BE INCREASED FURTHER R&D Investments of R. STAHL 2014–2021, as % of sales Industry Benchmark: 9-10% Comments 8.5 • R&D activities strengthened 8.1 despite Covid-19 crisis 6.9 6.8 • Ongoing megatrends will require 6.5 further investments in R&D
Slide 30: Targeted product development while reducing complexity: Orca platform
WE ARE PRESSING AHEAD WITH THE TARGETED DEVELOPMENT OF OUR PRODUCT PORTFOLIO WHILE SIMULTANEOUSLY REDUCING THE COMPLEXITY OF OUR PRODUCTS Automation platform "Orca" Modular platform replaces 3 complete series Covers all in-door applications in our key industries (chemical, pharmaceutical, LNG, hydro
Slide 31: We are setting new standards with our products
WE ARE SETTING NEW STANDARDS WITH OUR PRODUCTS New miniCon connection system Patented locking system for disconnecting and connecting in hazardous areas under load Use for applications from Industry 4.0 (data) to distribution systems (energy) Can be used in extreme environmental conditions from - 60
Slide 32: Agenda
AGENDA 1 Company Overview 2 Driving Strategy: Excellence 2023 3 Business Update 4 Appendix Equity story November 2022 32
Slide 33: Sales in 9M 2022 up almost 10% – strong growth in Americas
SALES IN 9M 2022 UP ALMOST 10% – STRONG GROWTH IN AMERICAS Sales R. STAHL 9M 2022 vs. 9M 2021 by region Regions, €m 9M 2022 9M 2021 Change Americas 12% Germany 54.6 49.1 +11.2% Central Central region1) 87.0 81.3 +7.1% 18% region1) Asia/ 9M 2022: 43% Pacific €202.5m Americas 23.7 16.1 +46.7% Asia/Pac
Slide 34: Improved sales in all regions in Q3
IMPROVED SALES IN ALL REGIONS IN Q3 Sales R. STAHL Q3 2022 vs. Q3 2021 by region Regions, €m Q3 2022 Q3 2021 Change Americas 16% Germany 19.9 18.1 +10.1% Central Central region1) 29.8 24.6 +21.0% Asia/ 46% region1) Q3 2022: Pacific 21% €73.8m Americas 8.7 6.1 +43.5% Asia/Pacific 15.4 13.4 +15.3% 28%
Slide 35: Improved EBIT as result of strong Q3 figures – Goreltex impairment
IMPROVED EBIT AS RESULT OF STRONG Q3 FIGURES – GORELTEX IMPAIRMENT PREVENTS POSITIVE NET INCOME Key data of Income Statement €m 9M 2022 9M 2021 Change Comments Sales 202.5 184.8 +9.6% Total operating performance 209.8 187.9 +11.7% • Impairment of at-equity investment Other operating income / expense
Slide 36: Improved sales and positive financial result boost net profit
IMPROVED SALES AND POSITIVE FINANCIAL RESULT GIVE A STRONG BOOST TO NET PROFIT Key data of Income Statement €m Q3 2022 Q3 2021 Change Comments Sales 73.8 62.1 +18.8% Total operating performance 76.0 63.4 +19.9% • Supply issues as well as high inflation Other operating income / expenses -9.6 -8.5 -13
Slide 37: High working capital requirements led to decrease of free cash flow
ONGOING HIGH WORKING CAPITAL REQUIREMENTS LED TO DECREASE OF FREE CASH FLOW Key data of Cash Flow Statement €m 9M 2022 9M 2021 Change Comments Net profit -1.1 -3.8 -2.8 • Reversal of long-term financial Depreciation and amortization 15.3 12.4 +2.9 investment led to decrease of Other items without ca
Slide 38: Higher working capital requirements result in negative free cash flow
HIGHER WORKING CAPITAL REQUIREMENTS RESULT IN NEGATIVE FREE CASH FLOW Key data of Cash Flow Statement €m Q3 2022 Q3 2021 Change Comments Net profit 5.2 -0.1 +5.3 • Cash flow increase driven by Depreciation and amortization 4.1 4.1 -0.1 improved net income Other items without cash flow impact 0.4 0.2
Slide 39: Positive sales development dampened by shortages of electronic supplies
POSITIVE SALES DEVELOPMENT REMAIN DAMPENED BY SHORTAGES OF ELECTRONIC SUPPLIES Order intake and sales Order intake Sales €m Comments 80 79 • Ongoing strong order 77 75 intake establishes 74 sound base for strong 69 top-line in coming 68 quarters 65 65 65 • Turning orders into 64 63 63 62 62 sales st
Slide 40: Guidance confirmed despite challenging market conditions
GUIDANCE CONFIRMED – DESPITE CHALLENGING MARKET CONDITIONS Guidance FY 2022 Sales expected in the €270m and €275m corridor RISKS EBITDA pre1) between €18m and €21m expected Free cash flow to be a low double digit negative € million amount at year-end • Russia/Ukraine crisis • Ongoing supply chain is
Slide 41: Agenda
AGENDA 1 Company Overview 2 Driving Strategy: Excellence 2023 3 Business Update 4 Appendix Equity story November 2022 41
Slide 42: Issuer, contact and additional information
ISSUER, CONTACT AND ADDITIONAL INFORMATION ISSUER AND CONTACT ADDITIONAL INFORMATION FINANCIAL CALENDAR 2022/2023 R. STAHL AG ISIN DE000A1PHBB5 Nov 28/29 German Equity Forum Am Bahnhof 30 74638 Waldenburg WKN A1PHBB Feb 16 Preliminary figures FY 2022 Germany Deutsche Boerse RSL2 Apr 27 Annual Report
Slide 43: R. STAHL Am Bahnhof 30 74638 Waldenburg, Germany
R. STAHL Am Bahnhof 30 74638 Waldenburg, Germany T +49 7942 943-0 | F +49 7942 943-4333 | r-stahl.com