Slide 1: Presentation of the Results for the First Half of 2011
Zurich, 18 August 2011 Presentation of the Results for the First Half of 2011 Ronald Fehlmann, CEO Markus Portmann, CFO Technology with Passion
Slide 2: Agenda
Half-year Report of the Comet Group Agenda Introduction to the COMET Group Review Operational Results HY1 2011 Financial Results HY1 2011 Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 2
Slide 3: HY 1 in brief
Half-year Report of the Comet Group HY 1 in brief 20% growth in sales (36% in currency-adjusted terms) Strong profitable growth in Systems division EBIT 50% higher at CHF 9.4 million Net income more than doubled at CHF 5.4 million Technology with Passion 18.08.2011 | 3
Slide 4: COMET Group – Key Facts
Half-year Report of the Comet Group COMET Group – Key Facts Employees Ca. 700 Foundation 1948 Main locations Flamatt (CH) Hamburg (DE) Subsidiaries in Germany Denmark China Japan USA SIX Swiss 2002 (COTN) Exchange Acquisitions Philips Industrial X-ray (2002) Feinfocus (2004) YXLON (2007) Stolberg (2
Slide 5: Market leader through leading Core Technologies
Half-year Report of the Comet Group Market leader through leading Core Technologies Medical X-Ray 1965: Vacuum 1975: Industrial 2004: 2007: YXLON X-Ray New: tube capacitor X-Ray tube Feinfocus systems e-beam 1948 1960 1970 1980 1990 2000 2010 COMET tube in COMET tube in Double performance first CT s
Slide 6: Close Proximity to our Customers as Key Success Factor
Half-year Report of the Comet Group Close Proximity to our Customers as Key Success Factor Main locations Subsidiaries Sales & Service locations Technology with Passion 18.08.2011 | 6
Slide 7: Differentiation through Excellence in serving our Customers
Half-year Report of the Comet Group Differentiation through Excellence in serving our Customers LAM Research Supplier Awards AMEC Supplier Award Technology with Passion 18.08.2011 | 7
Slide 8: One Company – Two strong Brands
Half-year Report of the Comet Group One Company – Two strong Brands COMET-YXLON Europe Systems Modules & Components Flamatt, CH Division Division Hamburg, Hattingen Copenhagen, DK Industrial Vacuum COMET-YXLON X-Ray Capacitors North America Stamford, CT San Jose, CA Akron, OH COMET-YXLON Asia Yokoha
Slide 9: Products
Half-year Report of the Comet Group Products Systems division Modules & Components division YXLON X-Ray Systems Industrial X-Ray Vacuum Capacitors Vacuum capacitors and X-ray modules e-beam RF modules End user business (NDT) OEM customers OEM customers Technology with Passion 18.08.2011 | 9
Slide 10: Target Markets
Half-year Report of the Comet Group Target Markets Non destructive testing (OEM & end Security (OEM) user) Automotive Cargo (Luggage Aerospace & pallets) Energy Electronics e-beam (OEM) Plasma excitation (OEM) Food & Pharma Chips packaging LCD flat panel sterilization Thin film solar Technology with
Slide 11: Overview
Half-year Report of the Comet Group Overview Introduction to the COMET Group Review Operational Results HY1 2011 Financial Results HY1 2011 Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 11
Slide 12: HY1 2011 – Strong profitable Growth
Half-year Report of the Comet Group HY1 2011 – Strong profitable Growth Internal External High sales growth in local currencies in all divisions and regions Continued strong Strong profitable demand, especially growth in Systems Sales +20% in automotive division (China) EBITDA +26% Implementation of
Slide 13: COMET Group HY1 2011: Strong profitable Growth vs. prior Year
Half-year Report of the Comet Group COMET Group HY1 2011: Strong profitable Growth vs. prior Year – despite strong Swiss Franc Net sales growth + 20% (in CHF) + 36% (in local currency) Net sales 116.8m CHF EBITDA margin from 12.7% to 13.3% EBITDA 15.5m CHF Free cash flow (in CHF) from -2.2m to 7.2m
Slide 14: Well-balanced Distribution of Net sales by Region
Half-year Report of the Comet Group Well-balanced Distribution of Net sales by Region Strong growth in Europe (+37%) and Asia (+29%) in the first half of 2011. 2010 2011 3% 2% 28% 24% 37% 40% CHF CHF 116.8m 97.2m 37% 30% Europe North America Asia Rest of World Technology with Passion 18.08.2011 | 14
Slide 15: Results by Division HY1 2011
Half-year Report of the Comet Group Results by Division HY1 2011 HY1 2010 HY1 2011 Delta Net sales from CHF to CHF + 4% Modules & 63.8m 66.3m Components EBITDA from CHF to CHF CHF 14.8m 12.3m -2.5m EBITDA from to margin 23.2% 18.5% Net sales from CHF to CHF + 36% 59.6m Systems 43.9m Systems EBITDA f
Slide 16: Development of Market Segments HY1 2011 vs. HY1 2010
Half-year Report of the Comet Group Development of Market Segments HY1 2011 vs. HY1 2010 Non destructive testing Security 62% of Group sales 4% of Group sales Automotive Aerospace NDT Components Cargo (Luggage) Electronics Energy e-beam Plasma excitation 1% of Group sales 33% of Group sales Chips (S
Slide 17: How did we achieve this strong HY1 2011 result?
Half-year Report of the Comet Group How did we achieve this strong HY1 2011 result? Further disciplined Implementation of Strategy a) Investment in the fast-expanding markets in Asia b) New products and further developments c) Improvement of structures and processes Technology with Passion 18.08.201
Slide 18: Further disciplined Implementation of Strategy: Asia
Half-year Report of the Comet Group Further disciplined Implementation of Strategy a) Investment in the fast-expanding markets in Asia Growth of net sales in Asia by 28.6% in HY1 2011, 43.2% in local currencies Strong demand from automotive and electronic industry New customers for X-ray in China th
Slide 19: Further disciplined Implementation of Strategy: New products
Half-year Report of the Comet Group Further disciplined Implementation of Strategy b) New products and further developments Modules & Components Match boxes 49% of total Vacuum Capacitors‘ sales (HY1 2010: 43%) Oerlikon order Increased share of own match box designs New vacuum capacitor in lifetime
Slide 20: Further disciplined Implementation of Strategy: Structures and processes
Half-year Report of the Comet Group Further disciplined Implementation of Strategy c) Improvement of structures and processes Modules & Components Further implementation of lean management projects (e.g. improved production layouts) Buildup of production line for match boxes in San Jose Continuous i
Slide 21: Example Vacuum Capacitors
Half-year Report of the Comet Group Further disciplined Implementation of Strategy c 1) Improvement of structures and processes – Example Vacuum Capacitors Improved production layout Shorter cycle times Fewer products handled at the same time Shorter distances Processes with increased efficiency Imp
Slide 22: Example Industrial X-ray
Half-year Report of the Comet Group Further disciplined Implementation of Strategy c 2) Improvement of structures and processes – Example Industrial X-ray Cost reduction of packaging material by a factor of 25 Until now: Form plastic New: Airbag Technology with Passion 18.08.2011 | 22
Slide 23: Example Systems division
Half-year Report of the Comet Group Further disciplined Implementation of Strategy c 3) Improvement of structures and processes – Example Systems division Lead time of FF standard systems reduced by > 30% Assembly lead time in hours 100 Parameterization 16 90 80 8 Final Test / Q-Check 70 20 60 16 Ch
Slide 24: Overview
Half-year Report of the Comet Group Overview Introduction to the COMET Group Review Operational Results HY1 2011 Financial Results HY1 2011 Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 24
Slide 25: Strong growth in HY1, 2011 compared to PY
Half-year Report of the Comet Group Strong growth in HY1, 2011 compared to PY Organic growth in Net sales (quarterly changes based upon CHF results) 80.0% 67% 60.0% 51% 40.0% 37% 25% 34% 20.0% 7% 9% 0.0% Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 -20.0% -4% -22% -40.0% -
Slide 26: Increase in Net Sales (local Currencies) for all Activities & Regions
Half-year Report of the Comet Group Increase in Net Sales (local Currencies) for all Activities & Regions Net sales in CHF m Growth HY1 '11 HY1 '10 abs. in % LC* in % X-Ray Systems 59.6 43.9 15.7 36% 54% Industrial X-Ray 26.5 28.2 -1.7 -6% 5% Vacuum Capacitors 39.8 35.5 4.3 12% 28% COMET Group 116.8
Slide 27: Strong and profitable growth in HY1
Half-year Report of the Comet Group Strong and profitable growth in HY1 HY Change in thousands of CHF 2011 2010 Absolut in% Incoming Orders 116'280 117'674 -1'394 -1% Net sales 116'754 97'183 19'571 20% Cost of sales -72'556 -58'960 -13'597 Gross profit 44'198 38'223 5'975 Gross profit margin in % 3
Slide 28: Division Systems: Volume driven profitable Growth
Half-year Report of the Comet Group Division Systems: Volume driven profitable Growth Net sales (Increase +36%; +54% in LC*) EBITDA 59.6 60.0 4.0 3.9 50.0 43.9 3.0 40.0 CHF million 2.0 CHF million 30.0 1.0 20.0 0.0 10.0 HY1 2010 HY1 2011 -0.4 0.0 -1.0 HY1 2010 HY1 2011 HY1, 2011: EBITDA Marge 6.5% *
Slide 29: Division M&C: Volume driven Growth in Net Sales
Half-year Report of the Comet Group Division M&C: Volume driven Growth in Net Sales, Profitability impacted by strong CHF Net sales (Increase +4%; +18% in LC*) EBITDA 14.8 66.3 15.0 63.8 60.0 12.3 12.0 45.0 CHF million CHF million 9.0 30.0 6.0 15.0 3.0 0.0 0.0 HY1 2010 HY1 2011 HY1 2010 HY1 2011 * I
Slide 30: Group Net Sales increased by 36% in local Currencies
Half-year Report of the Comet Group Group Net Sales increased by 36% in local Currencies (strong currency effects in both Divisions) 160 150 140 + 23.7 + 1.1 - 8.8 130 - 8.0 116.8 120 + 11.3 110 97.2 + 0.3 CHF million 100 90 80 Volume effect in local Negative currency currencies effect 70 CHF 35.3m
Slide 31: Net Exposure of USD 32m in HY1 2011, natural Hedge for EUR
Half-year Report of the Comet Group Net Exposure of USD 32m in HY1 2011, natural Hedge for EUR 120 EBIT Activities to mitigate the 100 Net Exposure 17 48 USD 32m net exposure include 10 80 Sourcing in USD / EUR, USD Other exchange rate clauses 60 12 40 EUR Increase efficiency 40 CHF (processes, auto
Slide 32: Net Income in HY1 2011 more than doubled
Half-year Report of the Comet Group Net Income in HY1 2011 more than doubled 6.0 5.4 Operating income of CHF 9.4m (PY CHF 6.3m) 4.0 Net financing expenses CHF millions CHF 4.1m (PY CHF 2.1m) 2.1 Income tax expense CHF 2.0 0.0m (PY tax expense of CHF 2.1m) 0.0 HY1 2010 HY1 2011 Technology with Passio
Slide 33: Currency Transaction Losses reduce Net Income for the Period
Half-year Report of the Comet Group Currency Transaction Losses reduce Net Income for the Period Net financing items amounted to an expense of CHF 4.1m (prior year: CHF 2.1m), reflecting the following factors: Interest expenses were CHF 1.5m (PY CHF 1.8m) related mainly to senior debt and mortgage o
Slide 34: Recognition of DTA leads to lower Income Taxes
Half-year Report of the Comet Group Recognition of DTA leads to lower Income Taxes Applying the local tax rates, the EBT of CHF 5.3m would lead to an expected tax expense of CHF 1.5m Total income tax expense reported sums up to CHF 0.0m (PY tax expense of CHF 2.1m). The difference to the expected ta
Slide 35: Sound Balance Sheet Ratios and Decrease of total Assets Amount
Half-year Report of the Comet Group Sound Balance Sheet Ratios and Decrease of total Assets Amount In millions of CHF June 30, 2011 Dec. 31, 2010 Current assets 97.8 46.8% 99.5 46.3% Non-current assets 111.1 53.2% 115.3 53.7% Total assets 208.9 100.0% 214.8 100.0% Liabilities 96.4 46.2% 103.1 48.0%
Slide 36: Improved Working Capital Management
Half-year Report of the Comet Group Improved Working Capital Management Liquidity on a comfortable level Compared to year-end 2010, liquidity decreased by CHF 1.1m related to investments in working capital and fixed assets, repayment of interest-bearing debt and dividend payments Net working capital
Slide 37: Capital Expenditures increased; significant Translation Effects
Half-year Report of the Comet Group Capital Expenditures increased; significant Translation Effects Non-current assets decreased by CHF 4.2m or 4% Tangible and intangible assets decreased by CHF 4.8m Compared to prior year-end property, plant and equipment and intangible assets decreased by CHF 4.8m
Slide 38: Repayment of Debt and improved Equity Ratio
Half-year Report of the Comet Group Repayment of Debt and improved Equity Ratio Current liabilities decreased by CHF 3.2m, mainly driven by: Increase in accrued expenses (bonus, vacation and overtime credits) and provisions Decrease in accounts payable trade and current debt Non-current liabilities
Slide 39: Strong Free Cash Flow related to profitably growing Business
Half-year Report of the Comet Group Strong Free Cash Flow related to profitably growing Business Cash in Operations Investments Free Cash Flow Financing TCHF + 10‘742 TCHF - 3‘515 TCHF = 7‘226 TCHF - 7‘491 TCHF 40 a) Cash as per 1.1.2011 35 b) Net income HY1 2011 + 9‘518 - 4‘154 30 c) Other non-cash
Slide 40: Increase in Equity Ratio, combined with lower Net Debt
Half-year Report of the Comet Group Increase in Equity Ratio, combined with lower Net Debt Net debt vs. Equity Mio. CHF 120.0 80.0% 109.0 111.7 112.5 70.0% 100.0 60.0% 52.0% 53.8% 80.0 49.3% 50.0% 58.3 60.0 40.0% 34.9% 44.4 41.9 30.0% 40.0 28.4% 27.1% 20.0% 20.0 10.0% 0.0 0.0% June 30, 2010 December
Slide 41: Agenda
Half-year Report of the Comet Group Agenda Introduction to the COMET Group Review Operational Results HY1 2011 Financial Results HY1 2011 Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 41
Slide 42: Implementation of Strategy: Forward Integration
Half-year Report of the Comet Group Implementation of Strategy: Forward Integration Acquisition of Stolberg HF Technik AG (signing August 17) Power Supply Unit new RF generator RF plasma chamber RF matching network Vacuum capacitor Technology with Passion 18.08.2011 | 42
Slide 43: Implementation of Strategy on Track
Half-year Report of the Comet Group Implementation of Strategy on Track Important milestone in forward integration to RF Power Supply Units Acquisition of Stolberg HF Technik AG: Recognized expert for demanding RF power generators with profound knowledge and experience Fully fledged production line
Slide 44: Overview
Half-year Report of the Comet Group Overview Introduction to the COMET Group Review Operational Results HY1 2011 Financial Results HY1 2011 Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 44
Slide 45: Outlook: Assumptions for HY2 2011
Half-year Report of the Comet Group Outlook: Assumptions for HY2 2011 Swiss Franc expected to remain strong Increasing competition driven by appreciation of CHF, especially in the US Dollar area Weakening demand, from the semiconductor industry amongst others Technology with Passion 18.08.2011 | 45
Slide 46: Outlook
Outlook Results 2011 Half-yearFY Report 2010 of the Comet Group Outlook In the light of the current economic situation and given the assumptions made, management and Board of Directors expects to end the second half-year with sales and profitability below the strong first half-year figures leading t
Slide 47: COMET 2011: Sales and EBITDA on prior year level in CHF
Half-year Report of the Comet Group COMET 2011: Sales and EBITDA on prior year level in CHF Outlook Net Sales vs. 2010 in LC Modules & Vacuum Integrate Stolberg and offer first RF Power Supply Capacitors Units to solar market Components Start of match box production in San Jose Enhance engineering a
Slide 48: Overview
Half-year Report of the Comet Group Overview Introduction to the COMET Group Review HY1 2011 Operational Results Financial Results Acquisition of Stolberg HF-Technik AG Outlook 2011 Questions & Answers Technology with Passion 18.08.2011 | 48
Slide 49: Disclaimer
Half-year Report of the Comet Group Disclaimer This document contains forward-looking statements about COMET 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 docum
Slide 50: Thank you for your attention.
© 2011 COMET HOLDING AG Thank you for your attention. Technology with Passion COMET HOLDING AG Herrengasse 10, CH-3175 Flamatt T +41 31 744 90 00, F +41 31 744 90 90 Technology with info@comet.ch, Passion www.comet-group.com