Georg Fischer AG · SIX:GF

Georg Fischer — FY2019 Earnings Presentation

32 slides from Georg Fischer's earnings presentation, Feb 26, 2020

  1. Slide 1: Financial Analysts' Conference 2019 financial year

    Financial Analysts' Conference 2019 financial year Andreas Müller, Mads Joergensen 26.02.2020

  2. Slide 2: Strong performance at GF Piping Systems – economic headwinds impact results

    GF Corporation Strong performance at GF Piping Systems – economic headwinds impact results  Sales declined by 4.1% organically to CHF 3'720 million  Operating result before one-offs came to CHF 281 million and CHF 235 million after one-offs, corresponding EBIT margins stood at 7.6% and 6.3%  Stra

  3. Slide 3: Strategy 2020 – further achievements

    GF Corporation Strategy 2020 – further achievements  New corporate-wide innovation process fully leveraging the Design Thinking methodology  GF Piping Systems’ innovations (Hycleen/COOL- FIT) successfully introduced in key markets  GF Casting Solutions’ first 3D printed aerospace 5G application c

  4. Slide 4: Shift to higher margin business and focus on growing markets

    GF Corporation Shift to higher margin business and focus on growing markets  Accomplished withdrawal from European automotive iron casting  Consolidated milling activities under one roof in Biel/Bienne (Switzerland)  Expansion of the marine segment by acquiring Joint venture in Egypt a supply cha

  5. Slide 5: Strong GF Piping Systems, markets subdued

    GF Corporation Strong GF Piping Systems, markets subdued (Sales in CHF million) 2018 2019 Organic -4% growth Divestment 4′572 633 3′720 +1% -10% 3′939 1′821 1′802 1′687 -8% 633 1′066 972 949 1′054 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 5 Financial Analysts' Conference | 201

  6. Slide 6: Resilient GF Piping Systems maintained high profitability

    GF Corporation Resilient GF Piping Systems maintained high profitability (EBIT margin in %) Strategic objectives Before one-offs 11.9 11.9 10~12% 9~10% 8.4 8~10% 8.3 7.6 7~9% 5.9 5.1 6.3 2.3 -2.5 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 6 Financial Analysts' Conference | 2019

  7. Slide 7: Strategic fundamentals intact

    GF Corporation Strategic fundamentals intact (ROIC in %) Strategic objectives Avrg. 2016-2019 27.2 Before one-offs 27.5 26.1 24.2 22.4 22.1 20~24% 19.3 18.4 16.1 15.5 15.3 18.6 WACC 8% 12.4 13.6 3.2 -4.4 GF GF Piping Systems GF Casting Solutions GF Machining Solutions 7 Financial Analysts' Conferenc

  8. Slide 8: Strong resilience despite market headwinds

    GF Piping Systems Strong resilience despite market headwinds  Sales of CHF 1'802 million, organic growth 1.3%  Currencies affected sales negatively by CHF 45 million  Operating result at CHF 214 million  Strong performance in Europe – Asia, New training and innovation center US suffered from tra

  9. Slide 9: Sustainability drives business

    GF Piping Systems Sustainability drives business New COOL-FIT 4.0 Butterfly valve +12% +4% Cooling segment Water treatment segment 9 Financial Analysts' Conference | 2019 financial year

  10. Slide 10: Focus on innovations for our customers

    GF Piping Systems Focus on innovations for our customers Hycleen 2.0 Virtual reality training Ball Valve 546 Pro 10 Financial Analysts' Conference | 2019 financial year

  11. Slide 11: Performance impacted by global automotive industry transformation

    GF Casting Solutions Performance impacted by global automotive industry transformation  Sales of CHF 949 million, organically -9.7%  Significant drop of automotive production in Germany (-7%)* and China (-8%)*  Operating result dropped to CHF 22 million before one-offs and CHF -24 million after o

  12. Slide 12: Ongoing focus on promising market segments

    GF Casting Solutions Ongoing focus on promising market segments Turbine Rear Vane Cross car beam Aerospace segment +24% +4% Body and structure lightweight components 12 Financial Analysts' Conference | 2019 financial year

  13. Slide 13: New innovated lightweight structural components

    GF Casting Solutions New innovated lightweight structural components Aiways Shocktower Aiways Award at Euroguss 13 Financial Analysts' Conference | 2019 financial year

  14. Slide 14: Strong performance of new technologies – result affected by overall market sentiment

    GF Machining Solutions Strong performance of new technologies – result affected by overall market sentiment  Sales of CHF 972 million, organically -7.5%  Operating result of CHF 57 million  European and Asian markets down; growth in US based on the division's strong position in aerospace and medi

  15. Slide 15: New products for growing market segments

    GF Machining Solutions New products for growing market segments Digital predictive maintenance Aerospace Aerospace segment Medical segment +17% +9% Microlution machine 15 Financial Analysts' Conference | 2019 financial year

  16. Slide 16: Excellence in innovation

    GF Machining Solutions Excellence in innovation Laser technologies CUT P 550 Pro Spark Track EMO Dashboard 16 Financial Analysts' Conference | 2019 financial year

  17. Slide 17: Consolidated financial statements

    Mads Joergensen, CFO Consolidated financial statements 17 Financial Analysts' Conference | 2019 financial year

  18. Slide 18: Sales per division

    GF Corporation Sales per division (CHF million) ∆% organic 2019 2018 growth 1) growth GF Piping Systems 1’802 1’821 -1.0 % 1.3 % GF Casting Solutions 949 1’687 -43.7 % -9.7 % GF Machining Solutions 972 1'066 -8.8 % -7.5 % Corporation 3’720 4’572 -18.6 % -4.1 % Sales H1 1’915 2’396 -20.1 % -5.5 % Sal

  19. Slide 19: Strategic adjustments and currencies impact sales volume

    GF Corporation Strategic adjustments and currencies impact sales volume (CHF million) -633 (-13.8%) 4′572 -633 -219 (-5.5%) +0.8% -2.2% 3′939 30 -88 -4.1% -161 3′720 AC 2018 Divestment AC 2018 adj Acquisition Currency Organic Growth AC 2019 19 Financial Analysts' Conference | 2019 financial year

  20. Slide 20: Strong growth in North America, but challenging in Asia and Europe

    GF Corporation Strong growth in North America, but challenging in Asia and Europe (CHF million) Asia (28%) Europe (47%) -8% -7.4%* Americas (20%) -30% 2′494 1'130 +5% 1'034 +3.0%* 633 (divested) 702 737 1′747 -6% -3.9%* 1′861 2018 2019 Rest of world (5%) 2018 2019 -18% -10.1%* 2018 2019 246 202 2018

  21. Slide 21: Strong adverse negative currency impact on sales and EBIT 2019

    GF Corporation Strong adverse negative currency impact on sales and EBIT 2019 (CHF million) Per division: Sales EBIT Per currency: Sales EBIT EUR -49 -9 USD +18 -5 GF Piping Systems -45 -22 CNY -23 -2 GF Casting Solutions -29 -1 TRY -18 -3 GF Machining Solutions -14 +2 Others -16 -2 Corporation -88

  22. Slide 22: EBIT and margin per division

    GF Corporation EBIT and margin per division EBIT CHF million EBIT margin 2019 2019 2018 2019 2019 2018 before before one-offs one-offs GF Piping Systems 214 217 11.9 % 11.9 % GF Casting Solutions -24 22 86 -2.5 % 2.3 % 5.1 % GF Machining Solutions 57 88 5.9 % 8.3 % Corporation 235 281 382 6.3 % 7.6

  23. Slide 23: One-offs: Cash outflow expected in 2020

    GF Corporation One-offs: Cash outflow expected in 2020 (CHF million) One-offs on EBIT 2019 2020 2021 Total (incl. divestment iron foundry in Herzogenburg) Guidance H1 2019 ~ -48 ~ -17 ~ -65 Update FY 2019 -46 ~ -17 ~ -63 One-offs on cash flow (incl. sale of property in Werdohl) Guidance H1 2019 ~ -6

  24. Slide 24: Income statement

    GF Corporation Income statement (CHF million) 2019 2018 Δ Sales 3’720 4’572 -19 % Gross value added 1’386 1’668 -17 % Personnel expenses -1’012 -1’139 -11 % EBITDA 374 529 -29 % Depreciation, amortization -139 -147 -5 % EBIT before one-offs 281 382 -26 % EBIT 235 382 -38 % Financial result -38 -35 9

  25. Slide 25: Balance sheet: Assets – Liquidity remains strong

    GF Corporation Balance sheet: Assets – Liquidity remains strong (CHF million) 2019 % 2018 % Cash and cash equivalents 530 542 Trade accounts receivable 597 697 Inventories on stock 751 779 Other current assets 121 110 Current assets 1’999 60 2’128 62 Property, plant, and equipment for own use 1’131

  26. Slide 26: Balance sheet: Liabilities and equity – Further increased equity ratio

    GF Corporation Balance sheet: Liabilities and equity – Further increased equity ratio (CHF million) 2019 % 2018 % Current liabilities 1’012 1’124 Non-current liabilities 894 892 Liabilities 1’906 57 2’016 59 Share capital 4 4 Capital reserves 23 26 Treasury shares -7 -9 Retained earnings 1’376 1’361

  27. Slide 27: Free cash flow remains on good level

    GF Corporation Free cash flow remains on good level (CHF million) 2019 2018 EBITDA 374 529 Changes in net working capital -10 -77 Income taxes/interest paid -77 -79 Other changes 31 24 Cash flow from operating activities 318 397 Additions to property, plant, and equipment -178 -234 Cash flow from ac

  28. Slide 28: Key figures at a glance

    GF Corporation Key figures at a glance 2019 2018 Net debt in CHF 232 238 Net debt / EBITDA (multiple) 0.6x 0.4x Equity ratio in % 43 41 ROIC in % 12.4 22.4 ROIC in % before one-offs 15.3 Return on equity in % 12 20 Earnings per share in CHF 42 69 Dividend (proposed) per share in CHF 25 25 Number of

  29. Slide 29: Outlook 2020

    Andreas Müller, CEO Outlook 2020 29 Financial Analysts' Conference | 2019 financial year

  30. Slide 30: Outlook

    GF Corporation Outlook Economic and political uncertainties continue in 2020 Corona-virus impacting Asian business  Focus on operational excellence and innovation remains key  Complementary agility program launched  Definition of strategy cycle 2025 Resilient GF Piping Systems will GF Casting Sol

  31. Slide 31: Thank you

    Thank you

  32. Slide 32: Disclaimer

    Disclaimer This document is for presentation purposes only and should not be construed as an offer, invitation or solicitation to subscribe for, purchase or sell any investment. Neither it nor anything it contains shall form the basis of any contract whatsoever. Opinions expressed herein reflect the

Georg Fischer — FY2019 Earnings Presentation on 6ix