Komax Holding AG · SIX:KOMN
Komax — H1 2018 Earnings Presentation
37 slides from Komax's earnings presentation, Aug 21, 2018
Slide 1: 2018 Half-Year Results and Outlook
2018 HALF-YEAR RESULTS AND OUTLOOK 21 August 2018 21 August 2018 / 2018 half-year results and outlook / 1
Slide 2: 1st half of 2018 in brief
1st half of 2018 in brief Market leadership further expanded Increased market shares Significant increase in order intake and revenues Increased profitability Good product mix Productivity gain Positive contribution from currency effects High level of investment in research & developme
Slide 3: Order intake up 14.0%
Order intake up 14.0% Increased market shares Broad product portfolio across the entire value chain in CHF million is paying off 300 256.0 224.4 200 100 0 Order intake H1 2017 H1 2018 21 August 2018 / 2018 half-year results and outlook / 3
Slide 4: Revenue growth of 21.7%
Revenue growth of 21.7% Breakdown of revenue growth Organic growth: +15.4% in CHF million Acquisition-related growth: +2.7% 300 Foreign currency impact: +3.6% Revenues 10.8% higher than in 2nd half of 2017 236.9 (CHF 213.8 million) 200 194.7 Book-to-bill ratio still high: 1.08 Large or
Slide 5: EBIT up 40.4%
EBIT up 40.4% Factors contributing to the rise in EBIT: Product mix in CHF million Higher productivity 40 20% Positive foreign-currency impact (+1.3 ppts) 35.7 Work done in 2nd half of 2017 15.1% Sale of a building in Portugal no longer required for 30 15% 25.4 operations (EBIT contribut
Slide 6: Agenda
AGENDA 1 2018 half-year results: operational and financial performance 2 2017–2021 strategy: focus on core market 3 Outlook 2018 4 Questions 21 August 2018 / 2018 half-year results and outlook / 6
Slide 7: Strong growth in all regions
Strong growth in all regions Revenues by region Change from previous year 0% 10% 20% 30% 40% 50% 2% 15% Europe (incl. Switzerland) 9.3% Switzerland 31.2% Asia/Pacific Europe 19% 33.7% North/South America 45% Asia/Pacific 44.4% Africa North/South America Africa 21.7% Total 19% Resources situation i
Slide 8: R&D investments up 23.4%
R&D investments up 23.4% Further strengthening of innovative capacity Planned annual R&D spending: 8%–9% in CHF million Technological shift in automotive industry (electro- 25 10% mobility, autonomous driving, etc.) creating 8.6% 8.7% opportunities for further unique selling propositions 20 8%
Slide 9: Sharp rise in EBIT
Sharp rise in EBIT in CHF million 25.0 –9.8 –0.4 –4.5 35.7 25.4 Personnel expenses Gross profit margin in % of revenues 246.2 H1 2018: 62.8% H1 2018: 32.7% (product mix) Personnel expenses - Higher volumes Gross profit margin in % of revenues - Higher variable H1 2017: 63.6% H1 2017: 34.8% costs EBI
Slide 10: Positive currency effect
Positive currency effect Revenues by currency 115 110 105 11% 100 12% EUR 95 USD 48% CNY 90 13% CHF 85 12.15 02.16 04.16 06.16 08.16 10.16 12.16 02.17 04.17 06.17 08.17 10.17 12.17 02.18 04.18 06.18 Others 16% EUR (Basis: 1.09) USD (Basis: 1.00) CNY (Basis: 0.1539) Biggest changes in revenues by c
Slide 11: 52.0% increase in Group profit after taxes (EAT)
52.0% increase in Group profit after taxes (EAT) Financial result (CHF –2.3 million) due in large part to losses on emerging-market currencies in CHF million (e.g. Brazil, Turkey) 35 Taxe rate in % of EBT: 16.2% Tax rate expected over medium term: approx. 19% 30 28.3 25 20 18.6 15 10 5 0 EAT H
Slide 12: Free cash flow despite high level of investments
Free cash flow despite high level of investments 5.6 28.3 in CHF million –19.9 –9.9 –2.5 59.3 60.9 Dividends Free cash flow CHF 4.1 million (H1 2017: CHF –0.2 million) CHF –24.9 million 246.2 Increase in Increase in cash flow from operating activities financial liabilities from CHF 12.5 million (H1
Slide 13: Investment volume remains high
Investment volume remains high Gross investment Net investment (excl. acquisition and sale of companies): (excl. acquisition and sale of companies) CHF 8.5 million (H1 2017: CHF 9.1 million) Tangible assets (CHF 7.5 million) 13% Intangible assets (CHF 1.0 million) 6% Decrease in granted loan
Slide 14: Gradual expansion of capacity until end of 2019
Gradual expansion of capacity until end of 2019 Komax, Dierikon (CH) Komax SLE, Grafenau (DE) Kabatec, Burghaun (DE) Sharp jump in CAPEX due to high investment volumes for capacity expansion Total CAPEX 2018: approx. CHF 55 million (H1 2018: CHF 16.7 million) 2019: approx. CHF 60 million Kom
Slide 15: Strong financial base
Strong financial base Continued high equity ratio Net debt of CHF 31.2 million in CHF million (31.12.2017: CHF 10.5 million) 480 80% Retained earnings of CHF 240.0 million 436.2 420 414.5 70% (31.12.2017: CHF 233.2 million) 62.3% 360 60.1% 60% 300 50% 258.2 261.9 240 40% 180 30% 120 20% Total
Slide 16: RONCE rises sharply from already high level
RONCE rises sharply from already high level RONCE: 28.1% (H1 2017: 23.6%) Strategic target 2017–2021: RONCE average 25% in CHF million Robust management of net working capital (NWC) 300 272.2 Ongoing improvement and acceleration of internal processes 250 226.8 Stringent accounts receivable
Slide 17: Agenda
AGENDA 1 2018 half-year results: operational and financial performance 2 2017–2021 strategy: focus on core market 3 Outlook 2018 4 Questions 21 August 2018 / 2018 half-year results and outlook / 17
Slide 18: Global Megatrends
Global Megatrends 21 August 2018 / 2018 half-year results and outlook / 18
Slide 19: Increasing electrification
Increasing electrification 21 August 2018 / 2018 half-year results and outlook / 19
Slide 20: Constant rise in pressure to automate
Constant rise in pressure to automate Annual market growth of approx. 4%–6% Growth drivers in addition: 2%–3% CAGR Increasing vehicle production over 5 years (approx. 2%–3%) Pressure to automate (approx. 2%–3%) Rising number of wires in vehicles Complexity of vehicle power supply systems
Slide 21: Strategic priorities
Strategic priorities Solutions along the value chain Solutions along the Innovative production Increase in global reach Development of non- value chain concepts automotive markets 21 August 2018 / 2018 half-year results and outlook / 21
Slide 22: Komax offers solutions for every stage of customers' value chain
Komax offers solutions for every stage of customers’ value chain Proportion of time spent per wire harness Cutting, crimping, 9% block loading, etc. 20% Pre-assembly, taping 9% Routing 9% Attaching clips, etc. 25% Testing 28% Packaging 21 August 2018 / 2018 half-year results and outlook / 22
Slide 23: Strategic priorities
Strategic priorities Innovative production concepts Solutions along the Innovative production Increase in global reach Development of non- value chain concepts automotive markets 21 August 2018 / 2018 half-year results and outlook / 23
Slide 24: Electro-mobility
Electro-mobility Center of competence at Komax Thonauer in Budakeszi (Hungary) 21 August 2018 / 2018 half-year results and outlook / 24
Slide 25: Development of electro-mobility
Development of electro-mobility sharp increase by 2025 100% 90% 80% 70% Internal cumbustion engine (ICE) Internal cumbustion engine (ICE) Stop/Start 60% Mild hybrid (MHEV) 50% Full hybrid (HEV) 40% Plug-in hybrid (PHEV) 30% Battery electric vehicle (BEV) 20% 10% 0% 2017 2018 2019 2020 2021 2022 2023
Slide 26: Autonomous driving
Autonomous driving Center of competence at Komax SLE in Grafenau (Germany) 21 August 2018 / 2018 half-year results and outlook / 26
Slide 27: Strategic priorities
Strategic priorities Increase in global reach Solutions along the Innovative production Increase in global reach Development of non- value chain concepts automotive markets 21 August 2018 / 2018 half-year results and outlook / 27
Slide 28: Global production: vehicles and wire harnesses
Global production: vehicles and wire harnesses Vehicle production Wire harness production 21 August 2018 / 2018 half-year results and outlook / 28
Slide 29: Strategic priorities
Strategic priorities Development of non-automotive markets Solutions along the Innovative production Increase in global reach Development of non- value chain concepts automotive markets 21 August 2018 / 2018 half-year results and outlook / 29
Slide 30: Development of non-automotive markets
Development of non-automotive markets Aerospace Telecom & Datacom Industrial Safety Multimedia Small batches Lightweight construction Connected cars Electro-mobility Reduction of emissions Autonomous driving Integrated production / industry 4.0 Selective and complementary build-up
Slide 31: Advantages of Komax
Advantages of Komax 21 August 2018 / 2018 half-year results and outlook / 31
Slide 32: Agenda
AGENDA 1 2018 half-year results: operational and financial performance 2 2017–2021 strategy: focus on core market 3 Outlook 2018 4 Questions 21 August 2018 / 2018 half-year results and outlook / 32
Slide 33: 2017-2021 strategy
2017–2021 strategy ambitious targets, attractive dividend policy 2021 2021 2017–2021 2017–2021 CHF CHF 500–600 80–100 Avg. 25% 50–60% million million of EAT Revenues EBIT RONCE Payout 21 August 2018 / 2018 half-year results and outlook / 33
Slide 34: Outlook
Outlook In the first half of 2018, the Komax Group consolidated its leading market position and started the second half of the year well with a high order backlog. From today’s perspective, Komax sees the market dynamics and the trend towards automation continuing. Komax thus expect to post in the s
Slide 35: Contact / Financial calendar
Contact / Financial calendar Contact Financial calendar Roger Müller Investors Day 26 October 2018 Industriestrasse 6 6036 Dierikon Preliminary information on Switzerland 2018 financial year 22 January 2019 Phone +41 41 455 06 16 Annual media and analyst [email protected] conference on th
Slide 36: Disclaimer
Disclaimer This presentation contains forward-looking statements in relation to Komax which are based on current assumptions and expectations. Unforeseeable events and developments could cause actual results to differ materially from those anticipated. Examples include: changes in the economic and l
Slide 37: Questions?
QUESTIONS? 21 August 2018 / 2018 half-year results and outlook / 37