Gurit Holding Ag · SIX:GURN

Gurit — H1 2019 Earnings Presentation

27 slides from Gurit's earnings presentation, Aug 16, 2019

  1. Slide 1: Gurit 1HY 2019 Results Media and Analyst Conference

    Gurit 1HY 2019 Results Media and Analyst Conference Rudolf Hadorn, CEO Patrick Sparer, CFO a.i. Zurich, August 16, 2019

  2. Slide 2: Introductory statement

    Introductory statement This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such stateme

  3. Slide 3: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions 1HY 2019 Results 16 Aug 2019 3

  4. Slide 4: Wind Energy Demand Outlook

    MARKET TRENDS Wind Energy Demand Outlook Capacity Installed Annually* Wind growth trends 80 70 74 70 69  2019: Strong demand step-up to ca. 70 GW, partly prebuilt 60 50 48  2020: Further increase forecasted to >70 GW 40  2021+: Overall demand situation may further improve; 20 US PTC ends but new

  5. Slide 5: Key Financial Notes

    1HY 2019 Key Financial Notes Net Sales Growth CHF reported FX Adj. FX & Acq. adj. Total 45.8% 48.3% 16.5% Continued Operations 45.4% 47.9% 15.1% Discontinued Operations 56.2% 61.1% 61.1% Operating Profit Margin 1HY 2019 1HY 2018 Total 9.7% 8.2% Continued Operations 12.5% 10.8% Net Profit: CHF 18.2 m

  6. Slide 6: Gurit Sales Growth 1HY 2019 (at constant FX rates)

    1HY 2019 OVER 1HY 2018 Gurit Sales Growth 1HY 2019 (at constant FX rates) 1HY 2019 Results 16 Aug 2019 6

  7. Slide 7: Gurit Strategic Positioning And Investment Programs

    1HY 2019 Gurit Strategic Positioning And Investment Programs  Gurit business focus - 3/4 Renewable Wind Energy, 1/4 Lightweighting (Aero, Marine and Industrial)  2018 Kitting acquisition brings critical size and offers co-location synergies (Materials/Kitting)  Major strategic investment program

  8. Slide 8: Key Notes On Product Offering

    1HY 2019 Key Notes On Product Offering  Synthetic core material operations (PET, SAN) operating at full capacity, readyness of key customers to enter into longer term contracts  PET upstream value chain extension - recycling operations acquisition in Italy closed  Balsaflex™ wood sourcing now als

  9. Slide 9: Development By Business Units

    Development By Business Units 1HY 2019 Results 16 Aug 2019 9

  10. Slide 10: Composite Materials

    RESULTS 1HY 2019 & OUTLOOK Composite Materials Composite Materials: Quarterly Net Sales MCHF 70 Net Sales: CHF 122.2m (1HY 2018: CHF 106.0m) 60 55 56 59.4 60.7 61.5 51  Increase by 15.3% (currency-adjusted: 17.1%) vs. 1HY 2018 50 40  Wind: India still below potential; North America and Europe with

  11. Slide 11: Kitting

    RESULTS 1HY 2019 & OUTLOOK Kitting Kitting: Quarterly Net Sales MCHF 45 40.8 Net Sales: CHF 75.2m 40 34.4 35 28.9 30 Key Business Steps 1HY 2019 25 20  Management of significant growth and material changes in kits (Shortage driven) 15 10  Added Matamoros, Mexico as 7th production site 5 0 0 0 0 Q1

  12. Slide 12: Tooling

    RESULTS 1HY 2019 & OUTLOOK Tooling Tooling: Quarterly Net Sales Net Sales: CHF 67.8m (1HY 2018: CHF 60.2m) MCHF 40 35.5 36.1 35 31.7 29.1 29.3  Increase by 12.6% (currency-adjusted: 14.4%) vs. 1HY 2018 30 24.7 25  Sales to EU/US OEMs supported by Wind market growth 20  23 sets of main moulds made

  13. Slide 13: Aerospace

    RESULTS 1HY 2019 & OUTLOOK Aerospace Aerospace: Quarterly Net Sales MCHF 16 Net Sales: CHF 27.5m (1HY 2018: CHF 25.0m) 14 13.2 12.9 14.3 13.1 11.8 12  European OEM caught-up lower build rates from last year 12 10  US Business with double-digit growth 8 6 4 Key Business Steps 1HY 2019 2  Moderniza

  14. Slide 14: Composite Components

    RESULTS 1HY 2019 & OUTLOOK Composite Components Composite Components: Quarterly Net Sales MCHF 6 5.3 5.4 Net sales: CHF 9.9m (1HY 2018: CHF 6.3m) 5 4.5  Increase by 56.2% (currency-adjusted: 61.1%) due to new and existing 4.0 4 long-term volume programs gaining momentum from a low level last year 3

  15. Slide 15: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions 1HY 2019 Results 16 Aug 2019 15

  16. Slide 16: Net Sales Analysis by Markets

    FINANCIAL RESULTS 1HY 2019 Net Sales Analysis by Markets Net sales in MCHF Total net sales by markets 1HY 2019 1HY 2018 ∆ 1HY 2019 ∆ 1HY 2019 284.7 vs 1HY 2018 vs 1HY 2018 230.1 in MCHF FX adj. 185.3 195.3 175.2 Composite Materials 122.2 106.0 15.3% 17.1% Kitting 75.2 0.0 - - Tooling 67.8 60.2 12.6%

  17. Slide 17: Operating Profit Bridge 1HY 2018 vs. 1HY 2019

    FINANCIAL RESULTS 1HY 2019 Operating Profit Bridge 1HY 2018 vs. 1HY 2019 Continued operations 17

  18. Slide 18: Operating Profit and RONA Development

    FINANCIAL RESULTS 1HY 2019 Operating Profit and RONA Development Operating profit (% Net sales)  Operating profit at 9.7% within the target guidance range of 8 – 10% RONA (incl. Goodwill)  1HY 2019 impacted by: 18.3%  Growth in Wind market (materials and tools) 15.9% 15.4%  Impairment charges of

  19. Slide 19: Income Statement

    FINANCIAL RESULTS 1HY 2019 Income Statement Consolidated Income Statement 1HY 2019 1HY 2018 Variance MCHF % NS MCHF % NS MCHF %-pts Net sales 284.7 100.0% 195.3 100.0% 89.4 0.0% COGS -221.7 -77.9% -154.9 -79.3% -66.8 1.4% Gross profit 63.0 22.1% 40.4 20.7% 22.6 1.4% SG&A -27.5 -9.7% -24.9 -12.8% -2.

  20. Slide 20: Net Working Capital & Capex

    FINANCIAL RESULTS 1HY 2019 Net Working Capital & Capex Net Working Capital Capex 30% 29.0% 250 MCHF MCHF 13 25.0% 11.2 25% 22.0% 200 11 8.9 20% 9 8.0 131.6 150 6.5 126.1 7 15% 104.2 100 5 4.0 10% 3 5% 50 1 0% 0 -1 FY 2017 FY 2018 1HY 2019 1HY 2HY 1HY 2HY 1HY NWC (avg.) in % of annualized Net Sales 2

  21. Slide 21: Balance Sheet

    FINANCIAL RESULTS 1HY 2019 Balance Sheet Consolidated Assets Jun-19 Dec-18 Variance MCHF % MCHF % MCHF %-pts Current Assets 255.9 72% 268.4 73% -12.5 0% Non-current Assets 97.7 28% 101.3 27% -3.6 0% TOTAL ASSETS 353.6 100% 369.7 100% -16.1 0% Consolidated Liabilities and Equity Jun-19 Dec-18 Varianc

  22. Slide 22: Cash Flow

    FINANCIAL RESULTS 1HY 2019 Cash Flow Consolidated Cash Flow 1HY 2019 1HY 2018 Variance MCHF MCHF MCHF EBIT 27.5 15.0 12.5 Depreciation, amortisation, impairment 13.5 5.1 8.4 Change in working capital -2.0 -9.0 7.0 Other cash flow from operating activities -6.9 -2.9 -4.0 Net cash flows from operating

  23. Slide 23: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions 1HY 2019 Results 16 Aug 2019 23

  24. Slide 24: Outlook FY 2019

    Outlook FY 2019 For FY 2019 Gurit expects to achieve above CHF 525 million in Net Sales and an Operating Profit Margin within the upper half of the target range of 8 – 10%. 1HY 2019 Results 16 Aug 2019 24

  25. Slide 25: Summary

    Summary  Strong Wind market growth globally for 2019/2020  Gurit business focus is ¾ Renewable Energy, ¼ Lightweighting  Strong growth and good business results across all metrics in 1HY, 2019  Major footprint and capacity expansion program underway across Gurit  Divestment Automotive yet to co

  26. Slide 26: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions 1HY 2019 Results 16 Aug 2019 26

  27. Slide 27: End of webcast Thank you for your attention

    End of webcast Thank you for your attention Gurit 1HY 2019 Results Zurich, August 16, 2019 www.gurit.com Follow us on Linkedin: Gurit Twitter: Guritgroup

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