Slide 1: Annual Results 2023
Annual Results 2023 Dr. Suzanne Thoma | Executive Chairwoman Thomas Zickler | CFO SULZER CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer 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 uncertainties. These forward-looking statements are subject to change base
Slide 3: Results 2023
Results 2023 Good market development & first results of Sulzer Excellence initiatives lead to: Sales growth in all three divisions and across regions FCF > 300mCHF: highest in at least 10 years ROCE 17.7%: highest in at least 10 years 11.1% profitability: highest in at least 10 years 3 SULZER CONFID
Slide 4: Results 2023
Results 2023 Sales (mCHF) EBITA (mCHF) ROCE 3’281.7 365.6 17.7% Order Intake (mCHF) FCF (mCHF) ONCF (mCHF) 3’580.3 301.3 373.9 4 SULZER CONFIDENTIAL
Slide 5: Significant improvements across all key figures
Significant improvements across all key figures Comparison 2023 to 2022 Sales* EBITA* ROCE +13.2% +25.3% +300 bps Order Intake* FCF ONCF +13.9% +46.1% +161.5% * in constant currencies adjusted for acquisition / disposal effects 5 SULZER CONFIDENTIAL
Slide 6: Guidance and result 2023
Order Intake up: extraordinarily large project order in H1 2023 Guidance and result 2023 Order Intake Sales EBITA Margin +13.9% +13.2% 11.1% Result 2023 Guidance 07/2023 up 10–14% up 11–13% around 11% Guidance 02/2023 up 3–6% up 7–9% above 10% 6 SULZER CONFIDENTIAL
Slide 7: Sulzer accelerates value creation
Sulzer accelerates value creation 10-year development of ROCE 17.7% 14.7% 11.7% 9.0% 7.0% 7.0% 5.8% 5.4% 4.8% -2.9% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 7 SULZER CONFIDENTIAL
Slide 8: Dividend proposal CHF 3.75 per share
Dividend proposal CHF 3.75 per share 8 SULZER CONFIDENTIAL
Slide 9: Financials
Financials Click to add 2023 title Thomas Zickler | CFO 9 SULZER CONFIDENTIAL
Slide 10: Order intake & sales on higher end or above 2023 guidance
Order intake & sales on higher end or above 2023 guidance Order intake | In CHF millions Sales | In CHF millions ▪ Order intake Driven by all three divisions +13.9% +13.2% 3,580 ▪ Order intake margin plus 40bps 3,282 3’425 ▪ Sales 3’180 Double-digit growth in all three divisions ▪ Significant curren
Slide 11: Order Intake Outlook Q1 2024
Order Intake Outlook Q1 2024 Order intake | In CHF millions +31.2% 1’064 ▪ CAGR 2022 – 2024 Q1 above market +14.1% ▪ Growth in Q1 for the last two years has 859 been notably above the market 750 ▪ Order intake will remain higher than 2022 levels, even though we expect a slow development 2024 compare
Slide 12: Highest profitability and ROCE in at least 10 years
Highest profitability and ROCE in at least 10 years Operational Profit | In CHFm ROCE | In CHFm 11.1% 17.7% ▪ Operational profitability 366 Overcompensated for spin-off of profitable 10.0% 14.7% medmix business in 2021 318 ▪ ROCE increase Driven by strong sales, higher margin and better net working
Slide 13: Good market momentum + excellence initiatives = better margins
Good market momentum + excellence initiatives = better margins Flow Equipment Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Flow Equipment +11.2% +10.9% 1’467 1’389 1’354 Op Profitability ▪ Order intake 1’419 Large individual orders in H1 in Energy BU 1’323 +140bps 8.0% 6.6% ▪
Slide 14: Strong Order Intake growth thanks to strong Americas markets
Strong Order Intake growth thanks to strong Americas markets Services Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Services +19.8% 1’271 +14.5% Op Profitability ▪ Orders 1’155 +60bps AME is leading the strong growth, followed by EMEA 1’171 and APAC 1’117 14.8% 14.2% ▪ Sales Al
Slide 15: Large orders in emerging technologies
Large orders in emerging technologies Chemtech Order intake Sales Operational Profit | In CHFm | In CHFm | In CHFm Chemtech +10.5% 842 +15.5% Op Profitability ▪ Orders 835 773 +150bps Large orders in bioplastics, biofuels and process 740 technologies in H1 12.3% 10.8% ▪ Sales Solid execution and str
Slide 16: Highest EBIT and Net Income in 10 years
Highest EBIT and Net Income in 10 years EBIT | In CHF millions Net Income | In CHF millions +35.5% Comparison without one-off effects 2022 330 ▪ EBIT increase driven by higher volumes and better margins across the Divisions 2591 +54.2% 230 ▪ Net Income additionally supported by lower effective tax r
Slide 17: Highest Free Cash Flow in at least 10 years
Highest Free Cash Flow in at least 10 years Free Cash Flow | In CHFm Net Working Capital | In CHFm +46.1% ▪ Positive operating net cash flow in all -12.5% 747 Divisions supported by strong collections 301 654 ▪ NWC decreased to 19.9% as percentage of sales (2022: 23.5%) 2061 ▪ Improved NWC because o
Slide 18: Further strengthened Balance Sheet
Further strengthened Balance Sheet In CHF millions 1’196 975 332 2 2 ▪ Debt reduced by bond repayment of CHF 290 million 365 864 ▪ Net debt to EBITDA at 1.2x because of lower net debt and 610 higher EBITDA Cash & Equivalents 2023 2022 (in CHFm) Dec 2023 Dec 2022 Net debt 5371 5671 Debt Net debt / EB
Slide 19: Highest Dividend in at least 10 years – proposal: CHF 3.75 per share
Highest Dividend in at least 10 years – proposal: CHF 3.75 per share No dividend development over the last 9 years 3.75 ▪ Dividend proposal underlines 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 3.50 resilience of Sulzer and value creation ▪ Dividend payout ratio of 49.2% of core net income in 2023 with
Slide 20: Sulzer Strategy & Outlook
Sulzer Click 2028 to add – title Strategy & Outlook Dr. Suzanne Thoma | Executive Chairwoman 20 SULZER CONFIDENTIAL
Slide 21: Sulzer focus: large, essential, structurally growing markets
Sulzer focus: large, essential, structurally growing markets Energy security and transition Natural resources processing Process industries performance and and recycling sustainability Market growth rates from 3% to 5% 21 SULZER CONFIDENTIAL
Slide 22: What do we do in these essential markets?
What do we do in these essential markets? Contribute to energy availability Provide equipment and Enable the process industries to and security, pollution reduction, technology packages to access, meet increasing demand as well as decarbonization of the energy system use, transport and recycle natur
Slide 23: Markets, capabilities, development perspectives connect our divisions
Markets, capabilities, development perspectives connect our divisions Flow Equipment Services From a fragmented product portfolio towards integrated packages solving customer problems Chemtech 23 SULZER CONFIDENTIAL
Slide 24: Products, services and technologies to be positioned more strongly towards creating customer value
Products, services and technologies to be positioned more strongly towards creating customer value ▪ Specialized equipment and technology packages for critical, high performance Flow Equipment application ▪ Energy efficiency and recovery technology and life time extension through retrofit infrastruc
Slide 25: Organic growth in structurally growing markets
Organic growth in structurally growing markets Flow Equipment ▪ Focus on essential markets with structural growth ▪ From a critical equipment supplier to a package solution provider: increase value creation with integrated solutions, e.g. ▪ End-to-end process plants for carbon capture Services ▪ Equ
Slide 26: What drives our markets
What drives our markets Population growth and emerging markets Installed base effect: existing infrastructure industrialization upkeep and modernization Scarcity of water and food in certain regions Rising global spending on infrastructure, sustainability and advanced technologies Technological acce
Slide 27: Sulzer's tailored solutions reduce emissions & increase efficiency
Sulzer’s tailored solutions reduce emissions & increase efficiency Pushing a legacy turbine to new efficiencies Rejuvenation of water treatment plant In China, Sulzer developed a gas turbine solution for a In Bahrain, Sulzer performs large-scale refurbishment of one powerplant to reduce emissions (N
Slide 28: Sulzer 2028
Sulzer 2028 Organic Growth above average Sulzer Excellence along the of structurally growing markets value chain 28 SULZER CONFIDENTIAL
Slide 29: Building blocks of strategy Sulzer 2028
2 building blocks of strategy Sulzer 2028 capture true potential Organic Growth > 60 initiatives in 3 divisions Sulzer today Top industrial Excellence along company the value chain > 40 initiatives in group & 3 divisions 29 SULZER CONFIDENTIAL
Slide 30: Sulzer: Higher quality and future-proof business
A top industrial company that truly creates value for stakeholders Sulzer: Higher quality and future-proof business Strong in execution and Focused and resilient business Entrepreneurial spirit in a Sulzer Excellence along the portfolio resilient set-up entire value chain 30 SULZER CONFIDENTIAL
Slide 31: Outlook 2024
Outlook 2024 Operational Profitability Sales Order intake ~12% +6% to 9% +2% to 5% These forward-looking statements are subject to change based on known or unknown risks and various other factors, which could cause the actual results or performance to differ materially from the statements made herei
Slide 32: Sulzer at core is a successful and valuable company
Sulzer at core is a successful and valuable company 2023 results ▪ Good customer momentum in growing markets ▪ Sales growth in all three divisions and across geographies ▪ First results of Sales and Commercial Excellence initiatives ▪ First results of Sulzer Excellence initiatives ▪ Disciplined Net
Slide 33: On path to top industrial company
On path to top industrial company ▪ Sulzer serves essential markets to contribute to a prosperous economy and a sustainable global society ▪ Sulzer strives to be a top industrial company with a high quality and future proof business Sulzer’s strategy is founded in ▪ Organic Growth and higher value c
Slide 34: Thank you for your attention
Click to add title Thank you for your attention SULZER CONFIDENTIAL
Slide 35: Q&A session
Click to add title Q&A session SULZER CONFIDENTIAL