Georg Fischer AG · SIX:GF
Georg Fischer — Investor Presentation (May 2004)
79 slides from Georg Fischer's investor presentation, May 19, 2004
Slide 1: Adding Quality to People's Lives
Adding Quality to People’s Lives Corporate Presentation 2004
Slide 2: Corporate Presentation 2004 ¦ 2
19.05.2004 Corporate Presentation 2004 ¦ 2
Slide 3: Introduction
Part 1 Introduction 19.05.2004 Corporate Presentation 2004 ¦ 3
Slide 4: Adding Quality to People's Lives
Adding Quality to People’s Lives «People all over the world may expect from Georg Fischer a significant contribution to their quality of life.» Kurt E. Stirnemann CEO Georg Fischer 19.05.2004 Corporate Presentation 2004 ¦ 4
Slide 5: Georg Fischer
Adding Quality to People’s Lives Mobility Precision Comfort We make your trip We bring you We shape your pleasant and safe clean water daily life Georg Fischer 19.05.2004 Corporate Presentation 2004 ¦ 5
Slide 6: Mobility
Mobility We make your trip pleasant and safe. People are increasingly mobile, and they have rising demands for comfort and safety in their vehicles. With its high-quality cast parts made of light metal and iron, GF Automotive makes it possible to build passenger and commercial vehicles both lightwei
Slide 7: Comfort
Comfort We bring you clean water. The reliable supply of clean water is becoming one of the crucial challenges of this century. GF Piping Systems meets this worldwide demand for the supply of drinking water and enables the transport of liquids for industrial purposes. 19.05.2004 Corporate Presentati
Slide 8: Precision
Precision We shape your daily life. Serial production of consumer goods requires extreme precision and advanced manufacturing technologies. The necessary molds and tools are produced with machines and system solutions from GF Machine Tools (Agie Charmilles). 19.05.2004 Corporate Presentation 2004 ¦
Slide 9: Corporate Survey
Part 2 Corporate Survey 19.05.2004 Corporate Presentation 2004 ¦ 9
Slide 10: Focused on three core businesses
Focused on three core businesses Corporate sales 2003: CHF 3.3 billion GF Automotive No. 1 in Europe, technology leader worldwide 49% GF Machine Tools Global leader in EDM, tooling and automation; major HSM supplier. GF Piping Systems 23% One of world‘s leading suppliers of piping systems made of pl
Slide 11: Close to the customer around the globe
Close to the customer around the globe 80% 9% 11% GFAutomotive GF Automotive • • 13000 000employees employees Systems • 13 GFPiping GF PipingSystems • at200 200locations locationsin in30 30countries countries GF Machine Tools •• GF Machine Tools at 19.05.2004 Corporate Presentation 2004 ¦ 11
Slide 12: Technology know-how
Technology know-how GF Automotive GF Piping Systems GF Machine Tools Technologies Electric Light-metal Light -metal Industrial High-speed Iron Distribution Building discharge Tooling & sand & gravity pressure-die systems & milling casting systems technology machining automation dye casting casting a
Slide 13: Key figures Corporation 2003
Title figures: Key and Logo only Corporation 2003 [CHF m] 2003 2002 ∆ Order intake 3 385 3 480 -3% Sales 3 257 3 417 -5% Orders on hand 799 685 +17% EBITDA 282 275 +3% EBIT before special charges 96 80 +20% Special charges -192 EBIT -96 80 Profit -147 -20 Employees 13 247 13 737 -4% 19.05.2004 Corpo
Slide 14: Corporation: Sales
Title and Logo Corporation: only Sales [CHF m] 3903 3848 4000 3417 3500 3239 3257 3000 2500 2000 1500 1000 500 0 1999 2000 2001 2002 2003 Corporation excl. Coperion Coperion 19.05.2004 Corporate Presentation 2004 ¦ 14
Slide 15: Sales breakdown by region
Title and Sales Logo only breakdown by region Year-back figures in brackets Asia/other 11% (10%) Switzerland 4% (5%) America Germany 9% (11%) 44% (42%) Europe 80% (79%) Rest of Europe 25% (24%) Austria 4% (4%) UK 3% (4%) 19.05.2004 Corporate Presentation 2004 ¦ 15
Slide 16: Operating profit: Corporation
Title and Logo Operating only profit: Corporation [CHF m] 500 460 450 400 356 343 350 267 275 282 300 250 200 175 156 150 96 100 80 50 0 1999 2000 2001 2002 2003 1) EBIT EBITDA 1) EBIT before special charges 19.05.2004 Corporate Presentation 2004 ¦ 16
Slide 17: Core Businesses
Part 3 Core Businesses 19.05.2004 Corporate Presentation 2004 ¦ 17
Slide 18: Georg Fischer Corporate Groups
Georg Fischer Corporate Groups CHF (EBIT after special charges in brackets) GF Automotive Sales 1.6 billion | 49% EBIT 61 million (-67 mill.) 6‘400 employees | 48% GF Machine Tools Sales 0.9 billion | 23% EBIT -6 million (-33 mill.) GF Piping Systems 3100 employees | 25% Sales 0.8 billion | 27% EBIT
Slide 19: GF Automotive
GF Automotive Pioneering technological development partner and manufacturer of highly durable cast components and systems in iron and light metal for the automotive industry. 19.05.2004 Corporate Presentation 2004 ¦ 19
Slide 20: GF Automotive – three business areas
GF Automotive – three business areas Sales 2003: CHF 1.6 billion 1 Iron casting | 50% 2 Light-metal pressure-die casting | 30% 3 Light-metal sand & gravity-die casting | 20% 1 2 3 19.05.2004 Corporate Presentation 2004 ¦ 20
Slide 21: GF Automotive – main product groups
GF Automotive – main product groups Chassis Axle / Steering / Brake / Subframe Body/Structure Interior / Exterior Powertrain Engine / Transmission / Aggregate / Drive train 19.05.2004 Corporate Presentation 2004 ¦ 21
Slide 22: Partner of leading brands
Partner of leading brands Selection of customers 19.05.2004 Corporate Presentation 2004 ¦ 22
Slide 23: Unique product and technology offering
Unique product and technology offering Iron casting Aluminum sand casting Aluminum gravity-die cast. Aluminum pressure-die c. Growing trend for more cast components per vehicle Bedplate Engine cross member Transmission Front knuckle housing Porsche Cayenne Control arm Chain case cover Oil pan Wheel
Slide 24: Unique product and technology offering
Unique product and technology offering Iron casting Aluminum sand casting Aluminum gravity-die cast. Aluminum pressure-die c. Retarder housing Clutch housing Gear boc Growing trend for more Transmission housing cast components per vehicle Air spring bellows carrier Transmission control Control arm S
Slide 25: Casting expertise
Casting expertise Segment Shock tower for the aluminium front section of the new 5-Series BMW (E60) Structure Ö Substitution of sheet metal components Material Aluminium Process Pressure die 19.05.2004 Corporate Presentation 2004 ¦ 25
Slide 26: Casting expertise
Casting expertise Segment Steering console for the VW Golf platform Chassis Ö GF supplies this component worldwide to ThyssenKrupp Presta Steertec Steering Material Magnesium Process Pressure die 19.05.2004 Corporate Presentation 2004 ¦ 26
Slide 27: Casting expertise
Casting expertise Segment Engine block for PSA Powertrain ..Engine Material Aluminium Process Pressure die 19.05.2004 Corporate Presentation 2004 ¦ 27
Slide 28: Casting expertise
Casting expertise Seat back-rest for the Mercedes SLK Segment Body Interior Material Magnesium Process Pressure die 19.05.2004 Corporate Presentation 2004 ¦ 28
Slide 29: Casting expertise
Casting expertise Segment Bearing cushion for the BMW NG6 engine , Powertrain the new generation 6-cylinder ..Engine Material Aluminium Process Pressure die 19.05.2004 Corporate Presentation 2004 ¦ 29
Slide 30: Casting expertise
Casting expertise Segment Steering knuckles for the BMW X3 and X5 Chassis Axles Material Iron Process Sand cast 19.05.2004 Corporate Presentation 2004 ¦ 30
Slide 31: Competitive edge through R&D
Competitive edge through R&D Comprehensive materials and process engineering know-how Development partner and resident engineering Computer-aided design, engineering, analysis and simulation Static and dynamic component testing Materials testing and metallurgical analysis 19.05.2004 Corpor
Slide 32: New vehicles with GF Automotive components
New vehicles with GF Automotive components 2003 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter A3 Touran Multivan Golf C-Max StreetKa XJ-Type Meriva Signum Vectra Combi C3 C2 307CC 6 5 X3 Z4 Series Series Avensis Crossfire E CLK V Roadster 19.05.2004 Corporate Presentation 2004 ¦ 32
Slide 33: GF Automotive – in touch with market trends
GF Automotive – in touch with market trends No. 1 in Europe Trend towards lighter vehicles Iron Georg Fischer 1 40% Shift from assembled parts towards integrated cast components Light-metal as a competitive advantage and a growth Light metal Georg Fischer 2 driver 17% Rapidly increasing dema
Slide 34: More GF per vehicle
Strategy GF Automotive More GF per vehicle 19.05.2004 Corporate Presentation 2004 ¦ 34
Slide 35: GF Piping Systems
GF Piping Systems Leading supplier of piping systems in plastic and metal. Application-oriented system solutions and high-quality components for the transportation of water, gas and other liquids in the industrial, utility and domestic installations sectors. Global market presence. 19.05.2004 Corpor
Slide 36: GF Piping Systems – three business areas
GF Piping Systems – three business areas Sales 2003: CHF 0.8 billion 1 Industrial applications, Automation | 50% 2 Building Technology | 25% 3 Water and gas utilities | 25% 1 2 3 19.05.2004 Corporate Presentation 2004 ¦ 36
Slide 37: GF Piping Systems market
GF Piping Systems market We supply the market for water transport and water treatment with integrated systems solutions and comprehensive advice from one source all over the world. Industrial water treatment Drinking water distribution Piping systems for the complete water cycle Water supplies Water
Slide 38: Unique product and technology offering
Unique product and technology offering Industrial Utility Building applications Technology Increasing need for comprehensive piping solutions from a single systems supplier Measuring and control systems Automated valves Double containment piping systems Branch fitting Water distribution Fresh water
Slide 39: Unique product and technology offering
Unique product and technology offering Industrial applications Utlities Building Technology Increasing need for comprehensive piping solutions from a single systems supplier Air conditioning Ballast systems, sea and fresh water Cooling systems Fresh water systems Water distribution Water treatment,
Slide 40: We provide best water quality
We provide best water quality Sensors and instruments for Plastic piping systems with Automated valves industrial process control pipes, fittings and valves 19.05.2004 Corporate Presentation 2004 ¦ 40
Slide 41: We ensure safe distribution of water and gas
We ensure safe distribution of water and gas Jointing Mains Domestic Repairs and technology maintenance 19.05.2004 Corporate Presentation 2004 ¦ 41
Slide 42: Safe supply of high-purity water for microchip industry
We provide the microchip industry with safe supply of high-purity water Pollen: 20µm Contamination leads to PVDF HP, the solution for Infrared, the top jointing faulty products high-purity water applications technology 19.05.2004 Corporate Presentation 2004 ¦ 42
Slide 43: Bacteria-free water circulation for dialysis patients
Bacteria-free water circulation for the safety of dialysis patients No corrosion leads to System solutions for The best fusion technology improved patient health maximum biological safety for lowest biofilm 19.05.2004 Corporate Presentation 2004 ¦ 43
Slide 44: Water distribution - comfort in your home
Water distribution - comfort in your home Innovative jointing for Floor heating Pre-wall systems Flush tanks drinking water systems 19.05.2004 Corporate Presentation 2004 ¦ 44
Slide 45: Competitive edge through R&D
Competitive edge through R&D Rigorous product quality testing Partnering with customers for individual applications Systems meeting highest purity requirements Solutions adapted to different local standards 19.05.2004 Corporate Presentation 2004 ¦ 45
Slide 46: Market trends: Increasing demand for clean water
Market trends: Increasing demand for clean water Two thirds of the world’s population have no access to clean drinking water 30% to 50% water is lost through leakage 50% of waste water is directed untreated into rivers and oceans (90% in developing countries) 19.05.2004 Corporate Presentation
Slide 47: In 2050 water will be scarce all over the world
In 2050 water will be scarce all over the world 67% of world population affected Grave water shortage Water shortage Sufficient water Danger of shortage 19.05.2004 Quelle: Fischer and Heilig, 1997 Corporate Presentation 2004 ¦ 47
Slide 48: Market trends: Plastics replace metal for water transport
Market trends: Plastics replace metal for water transport 19.05.2004 Corporate Presentation 2004 ¦ 48
Slide 49: GF Piping Systems – in touch with market trends
GF Piping Systems – in touch with market trends Growing global need for Market share clean water Industrial Georg Fischer 1 12% Metal and glass piping increasingly replaced by plastic Rising high-purity needs in semi-conductor, life sciences and food industries Utilities Georg Fischer 2 5% L
Slide 50: Grow with the global need for water
Strategy GF Piping Systems Grow with the global need for water 19.05.2004 Corporate Presentation 2004 ¦ 50
Slide 51: Competence in the water business
Competence in the water business “We have extensive experience with water - since 1864” 19.05.2004 Corporate Presentation 2004 ¦ 51
Slide 52: Community Benefit: Clean Water
Community Benefit: Clean Water A unanimous shareholder vote for “1 Swiss franc per share for Clean Water” to celebrate 200 years of GF GF Annual General Meeting, 2002 19.05.2004 Corporate Presentation 2004 ¦ 52
Slide 53: Clean Water projects all over the world
33 Clean Water projects all over the world on 4 continents in 25 countries with local and international NGOs local & GF products 19.05.2004 Corporate Presentation 2004 ¦ 53
Slide 54: GF Machine Tools
GF Machine Tools Leading global system supplier in the tool and mould-making sector, with electric discharge machinery and high-speed milling machines, as well as the related automation systems and peripherals. Extremely precise tools and moulds are a decisive competitive element in the mass product
Slide 55: GF Machine Tools – three business areas
GF Machine Tools – three business areas Sales 2003: CHF 0.9 billion 1 Electric discharge machines (EDM) | 51% 2 Automation, tooling, components & service | 33% 3 High-speed milling (HSM) | 16% 1 2 3 19.05.2004 Corporate Presentation 2004 ¦ 55
Slide 56: GF Machine Tools – main product groups
GF Machine Tools – main product groups High-speed milling machines Electric discharge machines (HSM) (EDM) Automation, tooling, components & service 19.05.2004 Corporate Presentation 2004 ¦ 56
Slide 57: Unique product and technology offering
Unique product and technology offering HSM EDM Automation & tooling Growing need for precision and automation in the tool and mold making industry Automation & tooling Wire-cutting EDM HSM blow molds Automation, tooling & reference systems Service HSM Automation, tooling & workpiece Die-sinking EDM
Slide 58: Unique product and technology offering
Unique product and technology offering HSM EDM Automation & tooling Growing need for precision and automation in the tool and mold making industry Automation & tooling EDM biopsy & arthroscopy instruments EDM implants: plates and screws EDM implants: intervertebral disk HSM evaporation flaps HSM ele
Slide 59: Systems Provider
Systems Provider Service & consumables Electric discharge machining (EDM) Tooling, automation High-speed & system machining software (HSM) and standard milling 19.05.2004 Corporate Presentation 2004 ¦ 59
Slide 60: Up to 450 individual parts per watch
Up to 450 individual parts per watch 19.05.2004 Corporate Presentation 2004 ¦ 60
Slide 61: Key technologies in the watchmaking industry
Key technologies in the watchmaking industry Die-sinking and wire-cut EDM for the production of press tools Æ approx. 200 parts Æ 100 Werkzeuge Milling for the machining of case components 19.05.2004 Corporate Presentation 2004 ¦ 61
Slide 62: Press tool for several precision parts
Press tool for several precision parts 19.05.2004 Corporate Presentation 2004 ¦ 62
Slide 63: HSM
Tool insert HSM 19.05.2004 Corporate Presentation 2004 ¦ 63
Slide 64: Wire-cut EDM
Tool insert Friction spring Detent spring Wire-cut EDM 19.05.2004 Corporate Presentation 2004 ¦ 64
Slide 65: Die-sinking EDM
Tool insert Zeroizer Die-sinking EDM 19.05.2004 Corporate Presentation 2004 ¦ 65
Slide 66: Competitive edge through R&D
Competitive edge through R&D Innovation drives HSM technology Pushing EDM into micro and nano technologies System integration From high-end to entry segments 19.05.2004 Corporate Presentation 2004 ¦ 66
Slide 67: GF Machine Tools – in touch with market trends
GF Machine Tools – in touch with market trends Market share Increased demand for durable consumer goods EDM Agie Charmilles 1 & frequent model changes 40% Rising precision requirements Trend towards miniaturization and micro/ nanotechnology Automation, Agie Charmilles 2 Tooling Growing focus
Slide 68: Expand in the workshop of the world
Strategy GF Machine Tools Expand in the workshop of the world 19.05.2004 Corporate Presentation 2004 ¦ 68
Slide 69: Geared to the future
Teil 4 Geared to the future 19.05.2004 Corporate Presentation 2004 ¦ 69
Slide 70: Serving tomorrow's needs
Serving tomorrow‘s needs Vehicle safety and comfort Safe supply of water and heat globally High-grade mass production of consumer goods 19.05.2004 Corporate Presentation 2004 ¦ 70
Slide 71: Setting tomorrow's standards
Setting tomorrow‘s standards Setting the pace in our core technologies Pioneering new applications Cost-effective and transferable processes 19.05.2004 Corporate Presentation 2004 ¦ 71
Slide 72: Living tomorrow's values
Living tomorrow‘s values Financial transparency and open communication Social and environmental responsibility Sustainable development 19.05.2004 Corporate Presentation 2004 ¦ 72
Slide 73: Enormous potential for GF products in China
Enormous potential for GF products in China No. of vehicles Homes and “Workshop of the expanding infrastructure world” at 20% p.a. for 1 billion people China now largest market for tooling machines (18% of global market) 19.05.2004 Corporate Presentation 2004 ¦ 73
Slide 74: Strong China base ready for expansion
Strong China base ready for expansion All 3 Groups present CHF 220 million sales 1224 employees at 18 locations 9 production sites • GF Automotive • GF Piping Systems • GF Machine Tools 19.05.2004 Corporate Presentation 2004 ¦ 74
Slide 75: Targets for 2004
Targets for 2004 Leverage the potential of an additional CHF 100 million EBIT from the restructuring plan. Achieve an attractive result despite last instalment of structural costs. Lower net debt further. Exploit growth areas in all divisions; first tangible signals from our markets. Drive
Slide 76: Value potential
Value potential Mid-term profitability goals Sales CHF 4 billion • Market recovery • Further progress in operating performance • Organic growth through new applications EBIT margin (ROS) 8% ( «10%) • Through higher contributions RONOA 18% ROE 15% +GF+ Mid-term financing framework Net debt / EBITDA <
Slide 77: Keep an eye on GF
Keep an eye on GF “Georg Fischer is an attractive stock because... ... we are quick to recognize market trends ... we act swiftly and decisively ... we offer technological advantages ... we guarantee quality and integrity” Kurt E. Stirnemann CEO Georg Fischer 19.05.2004 Corporate Presentation 2004 ¦
Slide 78: Precision Mobility Comfort
Adding Quality to People’s Lives Precision Mobility Comfort 19.05.2004 Corporate Presentation 2004 ¦ 78
Slide 79: Disclaimer
Disclaimer This document is for presentation The management of Georg Fischer purposes only and should not be does not accept any liability whatsoever construed as an offer, invitation or with respect to the use of this solicitation to subscribe for, purchase presentation. or sell any investment. Nei