Feintool International Holding Ag · SIX:FTON
Feintool International — FY2015 Earnings Presentation
43 slides from Feintool International's earnings presentation, Mar 8, 2016
Slide 1: Feintool Group Annual Media Conference Financial Year 2015
Feintool Group Annual Media Conference Financial Year 2015
Slide 2: Agenda
AGENDA The Feintool Group’s strategy Alexander von Witzleben Review of the financial year 2015 Heinz Loosli Financial results Thomas Bögli Outlook Heinz Loosli Questions and answers All Lunch and discussions All Feintool Group Annual Media Conference, 8 March 2016 2
Slide 3: Feintool Group's strategy
Alexander von Witzleben Feintool Group’s strategy
Slide 4: Feintool in the 2015 Financial Year
FEINTOOL IN THE 2015 FINANCIAL YEAR Targets achieved despite difficult conditions Increase in sales Market and competitive environment remains attractive, low oil prices and interest rates are helping to stimulate demand Nominations for extensive programs enable investment in additional growth
Slide 5: Long-term positive development
LONG-TERM POSITIVE DEVELOPMENT (CHF m) 2012 1) 2013 2014 2015 2016E Mid-Term Target Net sales 427.0 435.7 503.4 508.9 530 600 EBITDA 43.0 47.0 62.9 61.4 EBIT 22.0 20.4 35.1 32.9 ~7% 8% Net income 11.4 14.8 24.6 20.1 Net debt 75.3 33.0 9.3 11.1 Equity ratio (as a %) 35.4 46.1 47.5 48.7 Investment 34.
Slide 6: Outlook Segment System Parts of 2013
OUTLOOK SEGMENT SYSTEM PARTS OF 2013 Forecasted goals achieved Forecasts for all 500 Spread to mid term target programs based on 450 Nominated programs customer data 400 350 Existing programs expectations 300 Preferred partner for Sales in CHF m 250 OEM and Tier1 due 200 to strong position in 15
Slide 7: New Authorized Capital
NEW AUTHORIZED CAPITAL Feintool wants to exploit market opportunities Application for authorized capital of 600,000 shares with a nominal value of CHF 10 Corresponds to 13.4% of current share capital Intended use for the short-term exploitation of market opportunities and to ensure growth Fein
Slide 8: Global Car Production
GLOBAL CAR PRODUCTION Global increase forecast Need for mobility is rising 2015-2020: increase in car production of 22% DE, US, JP, CN remain the most important countries for the development and production of high- quality passenger cars Feintool Group Annual Media Conference, March 8, 2016 8
Slide 9: Trends in the Automotive Industry
TRENDS IN THE AUTOMOTIVE INDUSTRY Feintool - attractive partner for implementing relevant trends Feintool Group Annual Media Conference, 8 March 2016 9
Slide 10: Review of Financial Year 2015
Heinz Loosli Review of Financial Year 2015
Slide 11: Market Environment
MARKET ENVIRONMENT Changes benefit Feintool General reluctance to invest amongst SME. A lack of willingness to invest, globality and often difficult succession planning are leading to a concentration on a few providers CO2 reduction and "fuel economy" remain growth drivers OEM are increasingly
Slide 12: Market Position Consolidated
MARKET POSITION CONSOLIDATED Strong position due to specialization Market share Products Europa USA Asien 99% 95% 65% Fineblanking presses No. 1 95% 100% 60% Seat adjusters (technology) No. 1 2% 55% 28% Seat adjusters (parts) No. 1 90% 20% -- Automatic transmission discs (parts)1) No. 1 65% 20% -- F
Slide 13: System Parts Segment
SYSTEM PARTS SEGMENT Leading manufacturer of seat adjuster and drive train components Leading OEM and Tier1 as customers Drive train Seat adjusters BorgWarner Fuji Autotech Daimler Imasen Dynax Johnson Control International Fiat Chrysler Lear GM Magna VW Audi Toyota Boshoku ZF VW Sitech Feintool Gro
Slide 14: Segment System Parts
SEGMENT SYSTEM PARTS Strong position within the leading premium-manufacturers Importance OEM Importance OEM 1 Fiat Chrysler 6 GM 2 VW Audi 7 Honda 3 Daimler 8 Nissan 4 BMW 9 Toyota 5 Ford 10 Renault Direct and indirect supplies Feintool Group Annual Media Conference, 8 March 2016 14
Slide 15: System Parts Segment: Growing stronger than the market
SYSTEM PARTS SEGMENT Growing stronger than the market in 2015 too Germany USA Market Markt 1.7% Markt Market 3.7% Feintool 10.0% Feintool 13.1% Japan China Market -5.5% Markt Market Markt 3.1% Feintool -1.2% Feintool 20.8% Car production; Feintool growth in local currency Source: PWC, internal calcu
Slide 16: Highlights System Parts
HIGHLIGHTS SYSTEM PARTS Dynamic development Focus on specific areas of growth of automobile manufacturers is paying off: Stronger growth than the market Organic growth of 8.2% (in local currency) Establishment and expansion of expertise in related procedures – in-house heat treatment now also
Slide 17: Highlights System Parts Forming
HIGHLIGHTS SYSTEM PARTS FORMING Successful development in forming Ohrdruf, Obertshausen and Nashville focus on cold forming components for the drive train Expansion of the production operation in Ohrdruf for the new generation of VW/Audi dual clutch components Obertshausen nominated for 500,00
Slide 18: Highlights System Parts USA
HIGHLIGHTS SYSTEM PARTS USA New generation of transmissions as growth driver Sales in Nashville doubled within two years Most advanced plant of its kind in the USA Nominations for additional growth received; the necessary capacities will be available from 2017 Cincinnati developed optical in
Slide 19: Highlights System Parts Europe
HIGHLIGHTS SYSTEM PARTS EUROPE Feintool is gaining market share in Europe The Jena location, which specializes in clutch discs continues to grow: seventh production line in operation Investment in quality assurance: first fully- automatic optical inspection system of its kind worldwide for clutc
Slide 20: Highlights System Parts Asia
HIGHLIGHTS SYSTEM PARTS ASIA Asia is in a state of change China: tightening of the political environmental requirements for CO2 emissions. This is promoting the use of modern transmissions, which creates new opportunities OEM and Tier1 are reviewing their product portfolios Initial success wit
Slide 21: Fineblanking Technology Segment
FINEBLANKING TECHNOLOGY SEGMENT Development of our market Market expansion by: expanding the process boundaries more efficient presses developing new areas of application Development of a hydraulic press series for Asian markets completed Significant increase in efficiency in press assem
Slide 22: Highlights Fineblanking Technology
HIGHLIGHTS FINEBLANKING TECHNOLOGY Innovation impresses Fourth industrial revolution: Feintool's response – Feinmonitoring, a new, intelligent service Cooperation with the RWTH Aachen University in researching the expansion of process boundaries The world's fastest parts clearing system for fi
Slide 23: Employees
EMPLOYEES The basis of our success Slight rise in the number of employees in Germany and Switzerland due to acquisition, realignment and expansion of the value chain 75 young people are completing their vocational training in nine professions The US Secretary of Labor and US ambassador Suzi Le
Slide 24: Financial Results
Ab hier Thomas & Team Thomas Bögli Financial Results
Slide 25: Introductory Remark
INTRODUCTORY REMARK Acquisition as basis for further expansion On March 2015 Feintool acquired Gabler Feinschneidtechnik GmbH (Feintool System Parts Oelsnitz GmbH) Net sales of CHF 3.2 m; EBIT of CHF -1.0 m No significant impact on Feintool Group’s result Basis for short-term expansion Seg
Slide 26: Net Sales
NET SALES 4.4% growth in local currency Net Sales Asia Net sales of CHF 508.9 m 17% in % Europe CHF 20.3 m translational currency 51% USA effects could be compensated 32% System Parts segment realizes 86% of Group’s net sales and drives growth CHF 93 m Growth in Europe and USA Feintool Group
Slide 27: EBITDA
EBITDA Swiss manufacturing sites influence EBITDA EBITDA of CHF 61.4 m Asia 15% EBITDA in % EBITDA margin down by 40 basis Europe 42% points to 12.1% USA Impact by Swiss manufacturing 43% sites: EBITDA of Feintool Technologie AG CHF 1.2 m lower than prior year; Feintool System CHF 16 m Parts L
Slide 28: EBIT
EBIT EBIT margin on 6.5% despite currency impact and investment into the future Asia 14% EBIT Europe in % EBIT CHF 32.9 m 37% Translational currency losses amount USA to CHF 2.5 m 49% Weaker Europe partially compensa- ted by stronger US business CHF 11 m Swiss manufacturing sites hit EBIT by
Slide 29: Net Result
NET RESULT Unchanged dividend of CHF 1.50 per share 32.9 35 Net profit CHF 20.1 30 m; profit margin 3.9% 25 -3.7 Board of Directors 20.1 20 proposes unchanged -9.1 dividends from capital reserves CHF 15 10 1.50 per share 5 0 EBIT Financial Taxes Net profit expenses Feintool Group Feintool Group
Slide 30: Fineblanking Technology
FINEBLANKING TECHNOLOGY Expenditures for research and development increased by 10% Net Sales in million CHF 120 Net sales of CHF 87.8 m 100 80 EBIT CHF 4.6 m; EBIT margin 5.2% 60 Net sales internal 40 Net sales third Lower turnover and margin 20 pressure due to the strong Swiss 0 HY 2014 HY 20
Slide 31: System Parts
SYSTEM PARTS EBIT margin on prior year level Net Sales in million CHF Net sales increased to CHF 438.0 m 440 despite negative translational 435 430 currency effect of CHF 20.3 m 425 420 9.1% growth in local currency 415 410 EBIT CHF 35.8 m; EBIT margin 8.2% HY 2014 HY 2015 Investment for fur
Slide 32: Balance Sheet: Total assets unchanged
BALANCE SHEET Total assets unchanged Assets 31.12.2015 31.12.2014 Difference Total assets of in m CHF in m CHF in m CHF CHF 426.9 m Cash and Cash equivalents 31.6 41.7 -10.1 Net working capital increased by Trade and other receivables 83.5 76.8 6.7 Inventories / Net assets of production i.p. 72.
Slide 33: Balance Sheet: Solid balance sheet
BALANCE SHEET Solid balance sheet Liabilities 31.12.2015 in m CHF 31.12.2014 in m CHF Difference in m CHF Equity grow to CHF 207.9 m Interest bearing liabilities 42.6 51.1 -8.5 Other liabilities 176.4 173.4 3.0 Equity ratio of 48.7% Shareholders equity 207.9 202.9 5.0 Net debt of Total liabili
Slide 34: Equity
EQUITY Strong equity ratio of 48.7% in million CHF Successful 230 +20.8 225 operational activities 220 Strong impact from: 215 Currency losses -6.7 207.9 210 +0.8 Revaluation of 202.9 -5.9 pension liabilities 205 -4.0 (IAS 19) 200 195 190 Net Dividends Currency Revaluation 31.12.14 Others 31
Slide 35: Cash Flow
CASH FLOW Acquisition influences cash flow Cash and Cash equivalents & Operational cash flow of CHF 40.1 m, available credit lines inline with development of net result 140 in million CHF Cash used for investments (incl. 120 acquisition) amounts to CHF 29.9 m 100 Liquid funds and confirmed ope
Slide 36: Outlook for 2016
Heinz Loosli Outlook for 2016
Slide 37: Outlook: Key projects
OUTLOOK Key projects Focus on global purchasing optimization Significant expansion of production capacities in forming in Ohrdruf and Nashville Expansion of Oelsnitz in connection with relocations Additional new applications to reduce CO2 emissions in processing Development of the market s
Slide 38: Global Challenges
GLOBAL CHALLENGES Feintool Group Annual Media Conference, March 8, 2016 38
Slide 39: Guidance
GUIDANCE Fundamentally positive business development 2016: 5% sales growth to CHF 530 million, operating profit of about 7% Nominations received show that we will reach our medium-term objective of CHF 600 million in sales and 8% operating margin for 2018 Feintool Group Annual Media Conference,
Slide 40: Investor Relations Calendar
INVESTOR RELATIONS CALENDAR Important dates 4 April 2016 Relaunch of website www.feintool.com 19 April 2016 Results 1st quarter and General Meeting 23 August 2016 Half-year report 2016 25 October 2016 Results 3rd quarter 08 March 2017 Annual Media Conference Financial Year 2016 Feintool Group Annual
Slide 41: Questions and Answers
Feintool Group Questions and Answers
Slide 42: Thank you for your attention
Feintool Group Thank you for your attention
Slide 43: Disclaimer
DISCLAIMER Feintool is confirming 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 t
Feintool International Holding — FY2015 Earnings Presentation on 6ix