Rieter Holding Ag · SIX:RIEN
Rieter — H1 2013 Earnings Presentation
34 slides from Rieter's earnings presentation, Jul 25, 2013
Slide 1: 2013 Half Year Results
2013 Half Year Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Erwin Stoller, Executive Chairman . Gröflin, Joris . . Chief . Financial . . Officer . . . . . . . . . . . . . . . . . . .
Slide 2: Agenda
Agenda 1. Introduction and summary of first half year 2013 2. Financial results first half year 2013 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 Half Year Results 2
Slide 3: HY1 2013: Key messages
HY1 2013: Key messages “Rieter was able to benefit from its strong market position in a recovering environment and continues to focus on the target of successfully concluding the investment program.” Erwin Stoller Executive Chairman 2013 Half Year Results 3
Slide 4: Rieter – Highlights HY1 2013
Rieter – Highlights HY1 2013 Rieter exploits market recovery thanks to strong positioning • Continued market recovery across all regions but to different degrees Market • Turkey dynamic, other Asian countries with good demand, China and India with slight development improvement • China and India sti
Slide 5: Market development
Market development Market recovery continues in first semester 2013 with strong Turkey • The market recovery continued in the first semester of 2013, impacting all major markets, but to different degrees. • In Turkey, government incentive program and strong spinning mill margins led to a strong mark
Slide 6: Rieter – progress investment program 2012 / 2013
Rieter – progress investment program 2012 / 2013 Investment program with good progress – delay in process improvements 2012 2013 2014 Expansion in Asia • Inauguration of first • Completion of plant II stage of second plant in in Changzhou Changzhou (China) • Full additional • Ramp-up of second • Con
Slide 7: Rieter – progress investment program 2012/2013
Rieter – progress investment program 2012/2013 Expansion in Asia – program nearing completion Changzhou Plant II – June 2013 Changzhou Plant II – Plan 2013 Half Year Results 7
Slide 8: Agenda
Agenda 1. Introduction and summary of first half year 2013 2. Financial results first half year 2013 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 Half Year Results 8
Slide 9: Rieter – Financial highlights HY1 2013
Rieter – Financial highlights HY1 2013 Increase in order intake and sales versus second semester 2012 • Order intake at 711.4 million CHF – upswing largely driven by demand from Turkey Order intake • Order backlog around 780 million CHF, parts of it reaching already into 2014 • Sales increase by 19%
Slide 10: Rieter – Financial key figures
Rieter – Financial key figures Order intake upswing in first half year 2013 thanks to strong market position CHF million HY1 2013 HY2 2012 HY1 2012 FY 2012 Orders received (1) 711.4 435.6 404.1 839.7 Sales 478.1 401.2 487.3 888.5 EBITDA 34.3 18.3 47.6 65.9 EBIT (2) 17.1 1.2 31.5 32.7 EBIT margin (of
Slide 11: Orders by business group
Orders by business group Significant increase in order intake with largest share from Turkey • Continued market recovery allows both Business Groups to profit from strong CHF million market position +76% • Turkey with largest share of order intake 800 711 • Growth in China thanks to localized 700 67
Slide 12: Sales by Business Group
Sales by Business Group Sales with increase of 19% versus second semester 2012 • Sales increase by both Business Groups compared to second semester: CHF million • SYS: +20% 800 • PTC: +15% / +9% segment sales 700 • PTC with sales level of HY1 2012 thanks to slight recovery in demand 600 +19% from Ch
Slide 13: Sales development by region
Sales development by region Continued growth in China in first semester 2013 • Sales to China grows in absolute and -9% +31% -31% +4% -5% -22% +103% relative terms (to 24% vs. 18% HY1 CHF million 2012) 139 • Lower sales to main market regions 140 126 Turkey and other Asian countries reflect 120 116
Slide 14: Operating result (EBIT)
Operating result (EBIT) EBIT improvement against second semester 2012 In % of • Increasing sales volume against second sales 6.5% 0.3% 3.6% semester 2012 leads to profitability CHF million improvement 60 • Delivery of in 2012 concluded orders with lower margins in the machine business (SYS) with neg
Slide 15: Net profit
Net profit Net profit margin at 1.0% of sales – EPS of 1.51 CHF in HY1 2013 In % of • Net profit including 0.3 million CHF sales 4.4% 1.0% 1.0% extraordinary gain on sale of CHF million investments (HY1 2012: 4.4 million CHF, HY2 2012: 13.2 million CHF) 40 • Financial result of –7.4 million CHF 35 m
Slide 16: Changes in workforce
Changes in workforce Continued reduction of fix workforce Temporaries • In March, 2013, announced global in % 14.6% 17.2% 18.1% workforce reduction of 5% over the next FTE1) 24 months is ongoing (mainly in Switzerland) 7.000 • Higher sales volume versus second 6.000 5.705 5.675 semester 2012 mainly
Slide 17: Balance sheet
Balance sheet Net liquidity at 63.2 million CHF and equity ratio at 34% • Net liquidity of 63.2 million CHF mainly 30.06. 31.12. 30.06. impacted by negative free cash flow of CHF million 2013 2012 2012 -12.1 million CHF and dividend of -11.6 million CHF paid out in April 2013 Total assets 1092.7 107
Slide 18: Net working capital
Net working capital Demand drives increase of net working capital to 74.9 million CHF • Increase in order intake leads to higher 30.06. 31.12. 30.06. inventories CHF million 2013 2012 2012 • Seasonal increase of trade receivables Inventories 248.4 229.3 208.7 compared to year-end 2012 • Advance paym
Slide 19: Free cash flow
Free cash flow Free cash flow of –12.1 million CHF impacted by high investments HY1 HY1 • Free Cash Flow is driven by low CHF million earnings, continued high investments 2013 2012 and increase in net working capital Net profit 5.0 21.5 • High capital expenditures are mainly driven by investment pro
Slide 20: Agenda
Agenda 1. Introduction and summary of first half year 2013 2. Financial results first half year 2013 3. Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 Half Year Results 20
Slide 21: Summary
Summary Rieter benefits from strong market position in first semester 2013 • Market recovery continued, specifically in Turkey • Strong market position and attractive product program allow significant increase of order intake • Sales with significant increase versus second semester 2012 • Profitabil
Slide 22: Outlook 2013
Outlook 2013 • Rieter’s business activities are broadly based globally. At the present time it is still difficult to forecast the development of demand for textile machinery and components in 2013. Demand depends among other factors on yarn and raw material price developments, currency exchange rate
Slide 23: Agenda 2013
Agenda 2013 HY1 2013 results publication: July 25, 2013 Conference call: 2 p.m. CET Analyst / Investor conference: October 30, 2013 Contact: Investor relations: Media: Joris Gröflin Cornelia Schreier Chief Financial Officer Head Corporate Communications T: +41 52 208 70 18 T: +41 52 208 70 32 invest
Slide 24: Appendix
Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 Half Year Results 24
Slide 25: Key investment highlights of Rieter
Key investment highlights of Rieter Long-term growth industry Experienced Management team Broadest global and Board of systems supplier Directors Rieter Efficient cycle Leading market management and positions value creation Technology and innovation leadership 2013 Half Year Results 25
Slide 26: Guidance over the cycle
Guidance over the cycle Over the cycle Sales Sales growth of > 5% > 9% over the cycle, EBIT margin peak years > 12% > 6 % over the cycle, Net result peak years > 8% RONA peak years > 14% Capex 4 – 5 % of sales Target pay-out ratio of Dividend policy approx. 30% of net result 2013 Half Year Results 2
Slide 27: Operating result (EBIT) by Business Group
Operating result (EBIT) by Business Group All units contributed to improving results HY1 HY2 HY1 FY CHF million 2013 2012 2012 2012 EBIT BG Spun Yarn Systems 13.3 2.6 27.9 30.5 EBIT BG Premium Textile Components 9.6 6.7 9.3 16.0 Elimination of unrealized profits / IAS 19 -1.0 -1.5 -0.2 -1.7 Other un
Slide 28: Order intake development
Order intake development Order intake increase in both Business Groups CHF million 711 15 3 289 404 In local currencies Orders Spun Yarn Premium Currency Orders received Systems Textile translation received HY1 2012 Components effect HY1 2013 Main exchange rates in CHF: HY1 2013: EUR = 1.23 USD = 0.
Slide 29: Sales development
Sales development Sales decrease at similar level in both Business Groups CHF million 487 478 -9 -2 2 In local currencies Sales Spun Yarn Premium Currency Sales HY1 2012 Systems Textile translation HY1 2013 Main exchange rates in CHF: Components effect HY1 2013: EUR = 1.23 USD = 0.94 CNY = 15.13 INR
Slide 30: Capital expenditures
Capital expenditures Capital expenditures mainly driven by investment program • Investment projects in HY1/13 account for most of total capital expenditures CHF million mainly into expansion China and India as well as into process improvements 70 -54% • Maintenance capital expenditure 60 57 (5.3 Mio
Slide 31: Net liquidity
Net liquidity Net liquidity impacted by free cash flow and dividends CHF million 96 12 12 7 63 2 Net liquidity Free cash flow Dividends Own shares Other Net liquidity 31.12.2012 30.06.2013 2013 Half Year Results 31
Slide 32: Values and principles
Values and principles 2013 Half Year Results 32
Slide 33: Disclaimer
Disclaimer Rieter is making great efforts to include accurate and up-to-date information in this document, however we make no representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this document and we disclaim any liability whatsoever
Slide 34: Key data per share
Key data per share Rieter registered shares of 5 CHF nominal value 30.06.2013 31.12.2012 30.06.2012 Bloomberg: RIEN; Reuters: RITZn Shares outstanding excl. own shares 4‘575‘004 4‘621‘425 4‘583‘544 (end of period) Average shares (of period) 4‘617‘076 4‘609‘778 4‘616‘917 Share price (end of period) C