Feintool International Holding AG · SIX:FTON
Feintool International — H1 2021 Earnings Presentation
40 slides from Feintool International's earnings presentation, Aug 19, 2021
Slide 1: Feintool Group Half-yearly media report
Feintool Group Half-yearly media report, August 19, 2021
Slide 2: Agenda
AGENDA Welcome & market environment Knut Zimmer, CEO Review Knut Zimmer Financial results Samuel Künzli, CFO Strategy Knut Zimmer Outlook Knut Zimmer Questions and answers All Guest presentation: “Race to zero” Thomas Sauter-Servaes Tour of the square e-mobility showroom Peter Schmid
Slide 3: Market environment
Market environment
Slide 4: Automotive industry recovery
MARKET ENVIRONMENT Automotive industry recovery From an economic point of view, the COVID-19 pandemic seems to be over, but some uncertainties are likely to remain for some time The market has recovered at different rates in different regions, but globally stays below 2019 levels Electric cars
Slide 5: Additional political decisions
MARKET ENVIRONMENT Additional political decisions According to the EU Commission, by 2035, all new cars must be emission-free US government wants half of all new cars sold in the US to be electric by 2030 China is subsidizing electrification, but remains technology-agnostic Feintool half-yearl
Slide 6: Trend towards electric mobility varies geographically
RELEVANT TRENDS Trend towards electric mobility varies geographically Number of vehicles produced up to 3.5 t total Number of vehicles produced up to 3.5 t total Number of vehicles produced up to 3.5 t total weight, Europe, in millions weight, North America, in millions weight, China, in millions 16
Slide 7: Review
EXTRA LAYOUTS Review
Slide 8: Back on track for growth
REVIEW Back on track for growth Feintool has a solid position in the first half of 2021 thanks to a revitalized market environment All of the group’s regions recorded double-digit growth compared with the previous year New vehicle registrations rose by 27 percent in Europe and Asia as well as
Slide 9: Positive business performance at the plants
REVIEW Positive business performance at the plants System Parts was able to increase sales significantly to CHF 285 Mio. compared to the same period last year, equal to an increase of 45 percent Steel and semiconductor industries have become major sources of uncertainty Steel prices nearly dou
Slide 10: Transformation through electrification
PREPARED FOR THE MOBILITY OF TOMORROW Transformation through electrification Feintool is investing heavily in the technologies that deliver performance and safety in electric vehicles We continue to record a growing number of orders electric mobility sector Further progress in establishing ele
Slide 11: Market success across the board
PREPARED FOR THE MOBILITY OF TOMORROW Market success across the board Feintool has received further nominations for formed parts in the hybrid drive system sector Nomination received for numerous fineblanked parts such as electrical contacts in EVs We are deeply involved in the development of
Slide 12: Successful bipolar plate prototype production for fuel cells
PREPARED FOR THE MOBILITY OF TOMORROW Successful bipolar plate prototype production for fuel cells is on-going Agreement signed which complements Feintool in the secondary processes of laser welding, leak testing, and automation Partnership initially includes a “shop-in-shop” concept in the grow
Slide 13: Order-income risen despite continued invest reluctance
PREPARED FOR THE MOBILITY OF TOMORROW Order-income risen despite continued invest reluctance The most powerful version of the FB one generation of presses has been met with a very positive response from the market Feintool has sold further presses Service calls had to be postponed due to COVID
Slide 14: Use of a business unit's synergies awarded
STANDARDIZATION AND DIGITIZATION Use of a business unit’s synergies awarded System Parts Europe receives the Lean Production Award “Business Unit Transformation – Learning Organization” Jury evaluated specific characteristics of efficient lean management methods and audited them with respect to
Slide 15: Optimized production thanks to Artificial Intelligence
STANDARDIZATION AND DIGITIZATION Optimized production thanks to Artificial Intelligence (AI) In the SPAICER project, scientists and experts use artificial Bild Feinmonitoring intelligence to develop new solutions for better protection from machine disruptions Feintool System Parts Jena is a part
Slide 16: Contribution to sustainable development
SUSTAINABILITY Contribution to sustainable development Transparently communicating achievements in economics, environment, and social affairs, and making it possible allows a comparison with other organizations worldwide Protecting natural resources, offering healthy and fair working conditions,
Slide 17: Fewer emissions through targeted measures
SUSTAINABILITY: FACTS AND FIGURES Fewer emissions through targeted measures Greenhouse gas emissions of 40 000 tons of CO2 equivalent (tCO2e), decrease of 15% 1 400 tCO2e reduction thanks to various environmental projects 30% of energy comes from renewable energy sources, a rise of 12% compare
Slide 18: Financial results
Financial results ee
Slide 19: The half-year results include three one-off effects
PRELIMINARY NOTE The half-year results include three one-off effects Feintool received a loan of USD 8.4 million in the USA in 2020 under the PPP program. In the first half of 2021, the government assured the company that this loan would not have to be repaid. This resulted in other operating inco
Slide 20: Sales rose in local currency by 42.8% to CHF 302.6 million
NET SALES Sales rose in local currency by 42.8% to CHF 302.6 million The first half of 2020, which is used as the comparative period Sales in % for the consolidated statement of comprehensive income for the 13% first half of 2021, was heavily impacted by the COVID-19 Asia pandemic. 59% 28% USA Eur
Slide 21: EBITDA margin increased
EBITDA EBITDA margin (before one-off effects) increased to 14.8 percent EBITDA increased to CHF 44.7 million in m CHF EBITDA The high workload resulted in a clearly higher EBITDA compared 60 40 to first half of 2020 20 The figure is only slightly below the EBITDA generated in the 0 second half
Slide 22: Satisfying operating earnings with 6.3% EBIT margin
EBIT Satisfying operating earnings with 6.3% EBIT margin Operating earnings recovered strongly to CHF 19.2 million in m CHF EBIT Depreciation and amortization increased slightly to CHF 25.5 30 20 million in the reporting period due to significant capital 10 0 expenditures in previous years (10)
Slide 23: Strong positive net income
GROUP RESULT Strong positive net income The positive operating earnings resulted in net income of CHF 13.2 million Financial costs increased to CHF 3.0 million due to higher financing costs The group’s tax rate stands at 29% Feintool half-yearly report, August 19, 2021 22
Slide 24: System Parts segment: Sales up by over 40%
SYSTEM PARTS SEGMENT Sales up by over 40% Sales increased by approximately CHF 90 million to CHF 285.3 in CHF million Net sales million 300 All regions contributed to growth 200 100 Increase in Europe stood at 34.5% 0 Increase in the USA was strongest at 56.7% 1 HY 2020 1 HY 2020 Increase
Slide 25: Fineblanking Technology segment: Decline in capital goods market continued
FINEBLANKING TECHNOLOGY SEGMENT Decline in capital goods market continued in CHF million Sales decreased in local currency by 7.3% to CHF 21.1 million 30 In addition to press and tool sales only picking up very slowly, 20 Net sales - travel restrictions had a particularly negative impact on the
Slide 26: Total assets increased as a result of rise in current assets
BALANCE SHEET Total assets increased as a result of rise in current assets Assets 30.06.2021 31.12.2020 Difference Total assets increased to in m CHF in m CHF in m CHF CHF 712.4 million Cash and cash equivalents 66.2 61.3 4.9 Trade and other receivables 94.0 84.4 9.6 Increase in inventories due
Slide 27: Stable balance sheet and healthy shareholder's equity
BALANCE SHEET Stable balance sheet and healthy shareholder’s equity Liabilities 30.06.2021 31.12.2020 Difference Shareholder’s equity in m CHF in m CHF in m CHF increased to CHF 326.6 Financial liabilities 197.7 208.2 -10.5 million as a result of the Other liabilities 188.1 175.0 13.2 operating ea
Slide 28: Shareholder's equity now stands at CHF 326.6 million
SHAREHOLDER’S EQUITY Shareholder’s equity now stands at CHF 326.6 million in CHF million Net income of CHF 13.2 million, currency effects of CHF 14.1 million and IAS 19 revaluation of CHF 5.3 million had a strong positive impact on net income Other items totaling CHF 0.2 million are of minor sig
Slide 29: Cash flow from operating activities increased significantly
CASH FLOW Cash flow from operating activities increased significantly to CHF 31.3 million in CHF million Capital expenditures slightly higher than in the previous year The increase in net working capital driven by steel prices and steel volumes Cash and cash equivalents and available confirmed
Slide 30: Number of employees stable compared to the end of 2020
EMPLOYEES Number of employees stable compared to the end of 2020 Feintool has a total of 2 545 employees (calculated as full-time equivalents as of the reporting date of June 30, 2021) Only employees in the Fineblanking Technology segment are still on short-time schedules Feintool effectively
Slide 31: Outlook
Outlook
Slide 32: Global market outlook: Vehicles sold
GLOBAL MARKET OUTLOOK Vehicles sold (million) IHS forecast (from May 2021) Bloomberg forecast (from June 2021) Until 2027: Trend towards BEV and HEV within the period from 2020 to 2027 Market share From 2028 onwards: Increase in all-electric drives at the expense of drives with internal combustion e
Slide 33: Growing with the market by offering the right products and technologies
EXPLOITING OUR TECHNOLOGY POTENTIAL Growing with the market by offering the right products and technologies Exploit transformation potential for Feintool Secure additional components in e-vehicles: E-motor Battery Fuel cell Prepare new product launches in acquired customer projects from
Slide 34: Feintool products for every vehicle drive concept
FEINTOOL’S PRODUCT RANGE Feintool products for every vehicle drive concept ICEs Hybrids BEVs FCEVs Clutch plates, cover Clutch plates Clutch plates Seat elements plates Seat elements Seat elements Fineblanking Seat elements Lining plate for brakes Lining plate for brakes Lining p
Slide 35: Application-agnostic technology solutions
STRATEGY Application-agnostic technology solutions Expand the limits of fineblanking, forming, and electrolamination stamping technologies for the mobile solutions of tomorrow as a company driving innovation in these fields Follow customers into new markets in line with the concept of a strong,
Slide 36: Outlook: Operational measures
OUTLOOK Operational measures Market position Innovations Organization and efficiency Expand activities in the field Ramp up activities in fuel Cash flow optimization and of electric drives and hybrids cells/bipolar plates investment limits where Accompany Japanese Fineblanking appropriate
Slide 37: Guidance: Sales increase in line with market
GUIDANCE Sales increase in line with market and much higher profitability compared 2020 The recovery seen in the first half of 2021 is expected to continue into the second half of the year. At the same time, however, uncertainties in the global supply chains will continue to persist The semicond
Slide 38: We would be glad to answer your questions
We would be glad to answer your questions
Slide 39: Thank you for your attention
Feintool Group Thank you for your attention
Slide 40: Disclaimer
DISCLAIMER Feintool confirms its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims any liability whatsoever for the us
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