Gurit Holding Ag · SIX:GURN

Gurit — H1 2018 Earnings Presentation

25 slides from Gurit's earnings presentation, Aug 17, 2018

  1. Slide 1: Gurit 1HY 2018 Results

    Gurit 1HY 2018 Results Rudolf Hadorn, CEO Angelo Quabba, CFO Zurich, August 17, 2018

  2. Slide 2: Forward-looking statements

    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 statements are made on the bas

  3. Slide 3: Gurit 1HY 2018 Business Update

    Gurit 1HY 2018 Business Update

  4. Slide 4: Key Financial Notes 1HY 2018

    Key Financial Notes 1HY 2018  Growth: +11.5% (currency-adjusted: +6.1%) to CHF 195.3m (1HY 2017: CHF 175.2m)  Operating Profit and RoS: CHF 16m (1HY 2017: CHF 21m) and 8.2% operating profit margin (1HY 2017: 12.1%)  Net Profit of CHF 11.2m (1HY 2017: CHF 15.3m)  Equity Ratio solid at 65.8% (1HY

  5. Slide 5: Key Business Notes 1HY 2018

    Key Business Notes 1HY 2018  1HY 2018 solid Group net sales growth, challenged operating margins  11.5% topline growth (currency-adjusted: +6.1%)  Operating profit margin at 8.2% of net sales  Market demand & Gurit performance in BU’s:  Wind Tooling: Strong market, strong Tooling growth with ma

  6. Slide 6: Key Business Notes 1HY 2018

    Key Business Notes 1HY 2018  Product lines  Balsaflex™ Lite and Kerdyn® Green client qualifications started, attractive customer value proposition for the future  Own PVC product line will cease due to divestment, traded PVC with solid demand  Operations  Underutilisation impact on profit margi

  7. Slide 7: Development in Key Markets

    Gurit Development in Key Markets ———=*£*{z~zZz=—EE__==_ | Ll Le

  8. Slide 8: Wind Energy – Market Trends

    Wind Energy – Market Trends  Short-term situation: Capacity Installed Annually*  North America with good growth ahead of 80 63 63 65 production tax credit (PTC) expiration 60 52 55 49 after 2019, industry cuts cost/kWh 40  Europe with lower installations (4.5 GW in 20 1HY 2018 versus 6.1 GW in 1H

  9. Slide 9: Wind Energy Materials – Results & Outlook

    Wind Energy Materials – Results & Outlook Results & Achievements 1HY 2018 Wind Energy: Quarterly Net Sales MCHF 50 Net Sales: CHF 62.1m (1HY 2017: 69.1m) 39,1 36,4 40 36,1 33 31,6 29,7 32,4  Decline by 10.2% (currency-adjusted: -15.1%) vs. 30 27,5 1HY 2017 20  Demand halt in India since April 2017

  10. Slide 10: Tooling – Results & Outlook

    Tooling – Results & Outlook Results & Achievements 1HY 2018 Net Sales: CHF 60.2m (1HY 2017: CHF 35.6m)  Increase by 68.9% (currency-adjusted: 60.5%)  Strong demand from existing and new regional and global customers, market share gains  31 moulds made in 1HY 2018 at 67 meters length and surface o

  11. Slide 11: Aerospace – Results & Outlook

    Aerospace – Results & Outlook Results & Achievements 1HY 2018 Aerospace: Quarterly Net Sales MCHF 20 Net Sales: CHF 25.0m (1HY 2017: 25.5m) 12,7 13,8 13,4 11,3 11,4 10,5 11,5  Slight decrease due to supply chain issues 10,6 10 (engine delivery) at European OEM  A380 build rate reduction impact  U

  12. Slide 12: Other Material Markets – Results & Outlook

    Other Material Markets – Results & Outlook Results & Achievements 1HY 2018 Other Material Markets: Quarterly Net Sales Net sales: CHF 40.7m (1HY 2017: CHF 35.0m)  Increase by 16.1% (currency-adjusted: +12.9%) due MCHF 30 to favorable demand in the global marine industry 17,4 13,4 17,5 17,9 16,7 19

  13. Slide 13: Composite Components – Results & Outlook

    Composite Components – Results & Outlook Results & Achievements 1HY 2018 Net sales: CHF 7.3m (1HY 2017: 9.8m)  Decrease by -25.4% (currency-adjusted: -30.5%) due to volume drop in biggest client program and time gap until the start of 3 new volume programs Operations:  Further industrialization st

  14. Slide 14: Financial Results 1HY 2018

    Gurit Financial Results THY 2018 ———=*£*{z~zZz=—EE__==_ | Ll Le

  15. Slide 15: Net Sales Analysis by Markets

    Net Sales Analysis by Markets Net sales in MCHF  Overall currency-adjusted growth of 6.1% in net sales 182.3 169.7 175.2 185.3 195.3 (2.8% growth exchange rate and M&A adjusted)  Composite Materials solid global demand in Marine and industrial (US and Asia-Pacific) burdened by continued weak wind

  16. Slide 16: Operating Profit and RONA Development

    Operating Profit and RONA Development Operating profit (% Net sales) RONA (incl. Goodwill)  Operating profit at 8.2%, RONA (excl. Goodwill) within the target guidance range of 8-10% 21,1% 18,2%  1HY 2018 impacted by: 17,7% 18,3% 14,4%  Growth in Tooling 14,1% 15,9% 15,4%  Low build rates and low

  17. Slide 17: Operating Profit Bridge 1HY 2017 to 1HY 2018

    Operating Profit Bridge 1HY 2017 to 1HY 2018 Slide 17 Corporate

  18. Slide 18: Income Tax Expense

    Income Tax Expense in MCHF 6 5 4 -0,6 1,5 22% -0,6 20% 3 2 3,2 2,8 1 0 Tax expense Not Other WHT on IC Actual tax at average capitalized effects, dividends expense expected tax losses net rates  Not capitalized tax losses continue to burden overall tax rate  Overall tax rate improved by 5% compare

  19. Slide 19: Income Statement

    Income Statement Consolidated Income Statement 1HY 2018 1HY 2017 Variance MCHF % NS MCHF % NS MCHF %-pts Net sales 195.3 100.0% 175.2 100.0% 20.1 0.0% Cost of goods sold -154.9 -79.3% -130.1 -74.2% -24.8 -5.1% Gross profit 40.4 20.7% 45.1 25.8% -4.7 -5.1% Research and development expense -3.5 -1.8%

  20. Slide 20: Balance Sheet

    Balance Sheet Consolidated Assets Jun 2018 Dec 2017 Variance MCHF % MCHF % MCHF %-pts Cash and cash equivalents 46.6 15% 44.6 15% 2.0 -1% Trade receivables 71.4 23% 72.9 25% -1.5 -2% Inventories 68.6 22% 61.0 21% 7.6 1% Other current assets 34.3 11% 22.7 8% 11.6 3% Deferred income tax assets 4.0 1%

  21. Slide 21: Cash Flow

    Cash Flow Consolidated Cash Flow 1HY 2018 1HY 2017 Variance MCHF MCHF MCHF EBIT 15.0 21.2 -6.2 Depreciation, amortisation, impairment 5.1 5.0 0.2 Change in working capital -9.0 -11.4 2.5 Other cash flow from operating activities -2.9 -3.7 0.8 Net cash flows from operating activities 8.3 11.1 -2.8 Pu

  22. Slide 22: Financial Results 1HY 2018 Conclusion

    Financial Results 1HY 2018 Conclusion

  23. Slide 23: Outlook FY 2018

    Outlook FY 2018  Net Sales  High single-digit revenue growth expected for FY 2018  Operating Profitability  Score at the mid-level of the target range of 8-10% operating profit margin for FY 2018 Slide 23 Corporate

  24. Slide 24: Summary and Outlook

    Summary and Outlook  Positive growth momentum with double digit growth and good outlook  Wind energy cost competitiveness is a chance for future growth and Wind is Gurit’s stronghold  Growth opportunities in Wind India, Civil in MEA and from new product introductions should finally unlock late 20

  25. Slide 25: Thank you.

    Gurit Thank you. ———=*£*{z~zZz=—EE__==_ | Ll Le

Gurit Holding — H1 2018 Earnings Presentation on 6ix