Phoenix Mecano AG · SIX:PMN
Phoenix Mecano — FY2023 Earnings Presentation
32 slides from Phoenix Mecano's earnings presentation, Apr 23, 2024
Slide 1: Annual Results 2023 and Q1 2024
ANNUAL RESULTS 2023 AND Q1 2024 Phoenix Mecano Group 23 April 2024 Annual results media conference
Slide 2: Agenda
Introduction AGENDA 11:00 Highlights 2023 and Update on SustainabilityDr Rochus Kobler 11:10 Business Performance 2023 and Q1 2024 René Schäffeler 11:35 Strategic Focus and Outlook Dr Rochus Kobler 11:45 Q&A Phoenix Mecano, Annual results media conference, 23 April 2024 2
Slide 3: A Global Technology Group with Leading Positions in Profitable Markets of the Future
A GLOBAL TECHNOLOGY GROUP WITH LEADING POSITIONS IN PROFITABLE MARKETS OF THE FUTURE
Slide 4: Highlights 2023
Introduction HIGHLIGHTS 2023
Slide 5: Highlights 2023
Introduction HIGHLIGHTS 2023 • Steady sales despite disposals • Divestment of Rugged Computing business area • Clear improvement in margins and cash flows • Successful turnaround of DewertOkin Technology Group • Opening of new industrial park in Jiaxing Phoenix Mecano, Annual results media conferenc
Slide 6: DewertOkin Industrial Park
@44 DEWERT OKIN Fal eile siiinl | GV DEWERT, OKIN INDUSTRIAL PARK
Slide 7: Update on Sustainability
SUSTAINABILITY UPDATE ON SUSTAINABILITY
Slide 8: Target: Halving Emissions by 2030, Net Zero by 2050
TARGET: HALVING EMISSIONS BY 2030, REACH NET ZERO BY 2050 (SCOPE 1 AND 2) 100% t CO2eq per EUR 1 million sales 35 34 100% 32 - 25% – 50% - 50% - 75% – 98% Rest to be compensated 2021 2023 2030 2050 by negative emissions technology to reach net- zero Phoenix Mecano, Annual results media conference, 2
Slide 9: Sustainability Highlights
Sustainability SUSTAINABILITY HIGHLIGHTS • CO2 emissions reduced year-on-year by 7% in absolute terms and by 5% relative to sales • CO2 savings across the Group partially offset by insourcing of production processes at new industrial park in Jiaxing. Without this effect, CO2 emissions relative to sa
Slide 10: Solar Power Plant at Jiaxing Industrial Park
Sustainability SOLAR POWER PLANT AT JIAXING INDUSTRIAL PARK • Online since January 2024 • Production 2.2 GWh / year • Solar power generation covers 1/3 of site's total electricity use • CO2 savings: 1300 t / year • Payback time: 4.1 years Phoenix Mecano, Annual results media conference, 23 April 202
Slide 11: Business Performance 2023
Current Financials BUSINESS PERFOMANCE 2023
Slide 12: Consolidated Results
Business Performance 2023 CONSOLIDATED RESULTS • Recovery in furniture sector bolsters incoming orders • Organic sales growth • Another record operating result and operating cash flow • Net liquidity EUR million 2022 2023 +/- Gross sales 792.9 783.1 -1.2% Operating result before one-off effects 53.6
Slide 13: Incoming Orders and Gross Sales
Business Performance 2023 INCOMING ORDERS AND GROSS SALES EUR million Book-to-bill ratio: 888.9 2023: 99.8% 900 2022: 101.4% 850 766.0 804.1 800 816.9 781.5 792.9 783.1 750 691.6 700 Incoming 687.4 680.0 orders 650 Gross sales 600 2019 2020 2021 2022 2023 Phoenix Mecano, Annual results media confere
Slide 14: Operating Cash Flow and Capital Expenditure
Business Performance 2023 OPERATING CASH FLOW AND CAPITAL EXPENDITURE EUR million Variance to 2022 | in % 96 84 78.0 85.3 66.2 Operating 72 Operating cash flow cash flow (EBITDA) 60 + 9.5% 48.2 48.8 47.2 48 40.4 36 29.6 26.1 27.8 Capital Capital expenditure 24 expenditure - 14.4% 12 0 2019 2020 2021
Slide 15: Equity Ratio and Gearing
Business Performance 2023 EQUITY RATIO AND GEARING in % 70 Net Liquidity 31.12.23: Equity in % 61.3 EUR 3.3 million of total assets 60 50 44.5 47.3 44.5 39.3 40 34.5 40.5 33.6 30 32.1 20 Net indebtness/ in % of equity 10 0 2019 2020 2021 2022 2023 Phoenix Mecano, Annual results media conference, 23
Slide 16: Proposed Dividend
Business Performance 2023 PROPOSED DIVIDEND The Board of Directors proposes to the Annual General Meeting on 24 May 2024: • to increase the ordinary dividend from CHF 16.50 to CHF 18.00 per share • to distribute a special dividend of CHF 12.00 Total distribution CHF 30.00 per share corresponds to a
Slide 17: DewertOkin Technology Group
Business Performance 2023 DEWERTOKIN TECHNOLOGY GROUP • Thanks to an upturn in demand in the furniture market, the sharp slump of the previous year was partially offset by an increase in incoming orders (up 23.2%) and sales • Growth in sales and cost reductions led to a significant improvement in th
Slide 18: Industrial Components
Business Performance 2023 INDUSTRIAL COMPONENTS • In a challenging market environment, the division was able to maintain its organic sales (+0,8 %) and operating results • The disposal of the Rugged Computing business area means that the division can focus on its core business EUR million 2022 2023
Slide 19: Enclosure Systems
Business Performance 2023 ENCLOSURE SYSTEMS • The division defied the downturn in industrial demand and is focusing on growth areas such as system integration and renewable energies • The key financials were only slightly down on the previous year and significantly above those of prior years EUR mil
Slide 20: Q1 2024
Current Financials Q1 2024
Slide 21: Consolidated Results
Q1 2024 CONSOLIDATED RESULTS • Group sales declined partly due to divestment of Rugged Computing business area • DOT Group confirmed turnaround with continued growth while Industrial Components and Enclosure Systems divisions felt the lower demand of industrial customers and could not compensate in
Slide 22: DewertOkin Technology Group
Q1 2024 DEWERTOKIN TECHNOLOGY GROUP • Important export business picked up in Asian markets • Sluggish demand in Europe and in Chinese domestic market EUR million Q1 2023 Q1 2024 +/- Gross sales 79.3 84.1 +6.0% Operating result 0.2 2.4 +904.1% in % of sales 0.3% 2.9% +2.6pp Phoenix Mecano, Annual res
Slide 23: Industrial Components
Q1 2024 INDUSTRIAL COMPONENTS • Restrained order intake in the Automation Modules and Electrotechnical Components business areas • Continued high demand from energy infrastructure sector EUR million Q1 2023 Q1 2024 +/- Gross sales 65.0 46.9 -27.8% Operating result 5.8 3.4 -40.8% in % of sales 8.9% 7
Slide 24: Enclosure Systems
Q1 2024 ENCLOSURE SYSTEMS • Declining sales due to weak industrial economy • Dynamic order intakes for explosion-proof enclosures and industrial PCs EUR million Q1 2023 Q1 2024 +/- Gross sales 64.6 57.5 -11.0% Operating result 10.6 8.1 -23.5% in % of sales 16.4% 14.1% -2.3pp Phoenix Mecano, Annual r
Slide 25: Our Strategic Focus
Business Strategy OUR STRATEGIC FOCUS
Slide 26: Our Strategic Focus
Business Strategy OUR STRATEGIC FOCUS 1 Leading positions in two growth areas •Streamlining 2 Three clearly focused divisions Portfolio 3 Proven customer-centric business model •Focus on Profitability 4 Growth aspirations and profitability targets 5 DewertOkin Technology Group with potential for add
Slide 27: Balanced Portfolio: Three Clearly Focused Divisions – Two Growth Areas
Business Strategy BALANCED PORTFOLIO THREE CLEARLY FOCUSED DIVISIONS – TWO GROWTH AREAS GROWTH AREAS Industrial Solutions Smart Furniture FOCUSED Industrial Enclosure DIVISIONS with DewertOkin Technology Group Components Systems LEADING 29% of sales 29% of sales 42% of sales POSITIONS DRIVING • Indu
Slide 28: Growth Aspirations and Profitability Targets
Business Strategy GROWTH ASPIRATIONS AND PROFITABILITY TARGETS Group-level Strategic mid-term targets 2026 Growth • Organic 4–6% • Total 6–10% Profitable Growth Returns to shareholders Profitability Return on Capital • EBIT-Margin 8–12% • ROCE > 15% Phoenix Mecano, Annual results media conference, 2
Slide 29: Our Strategic Focus: Divested Business
Business Strategy OUR STRATEGIC FOCUS Divested Business 1000 Gross Sales Continued Business 816.9 792.9 783.1 •Streamlining 800 47.0 50.1 18.5 Portfolio 600 400 769.9 742.8 764.6 •Focus on 200 0 Profitability 2021 2022 2023 2021 2022 2023 EBIT 44.3 53.6 62.1 EBIT margin 5.4% 6.8% 7.9% Phoenix Mecano
Slide 30: Outlook
») OUTLOOK = é o —o 4)
Slide 31: Outlook
OUTLOOK • Demand for industrial products in Europe, particularly in Germany, is currently declining • Decline partially compensated by order backlogs and structural demand driven by megatrends • First signs of economic recovery and Phoenix Mecano expects upturn to continue • Visibility is low and nu
Slide 32: Phoenix Mecano
PHOENIX MECANO