Georg Fischer AG · SIX:GF

Georg Fischer — FY2021 Earnings Presentation

34 slides from Georg Fischer's earnings presentation, Mar 2, 2022

  1. Slide 1: 2021 Financial Year

    Schaffhausen, 2 March 2022 2021 Financial Year Andreas Müller, CEO | Mads Joergensen, CFO © GF 2021

  2. Slide 2: Strong growth and profitability – focus on sustainability-driven markets

    GF Corporation Strong growth and profitability – focus on sustainability-driven markets  Order intake +28% at CHF 4 billion  Sales increased 17% to CHF 3'722 million, organically by 16%  Operating result (EBIT) of CHF 278 million  EBIT margin stood at 7.5%  Solid free cash flow before acquisiti

  3. Slide 3: Strong organic growth – sales at pre-COVID-19 levels

    GF Corporation Strong organic growth – sales at pre-COVID-19 levels (Sales in CHF million) 6.4% Organic 15.9% 14.3% 3′720 3′722 1′971 3′184 1′802 1′708 15.9% 19.9% 949 972 880 873 752 725 2019 2020 2021 2019 2020 2021 2019 2020 2021 2019 2020 2021 GF GF Piping Systems GF Casting Solutions GF Machini

  4. Slide 4: Performance in all regions above GDP growth

    GF Corporation Performance in all regions above GDP growth COP26 Glasgow USA – Booming economy Europe – Driving sustainability Source: wdr.de China – 'Made in China 2025' GDP growth: GDP growth: GDP growth: 1 2 ~5.7% ~5.2% ~8.1% 3 GF org. growth: GF org. growth: GF org. growth: ~27% ~16% ~10% 1 Sour

  5. Slide 5: GF Piping Systems' EBIT margin at all-time high

    GF Corporation GF Piping Systems' EBIT margin at all-time high (EBIT margin in %) Strategic objectives 2025 13~15% Before one-offs 12.5 11.9 11.3 9~11% 9~11% 8~10% 7.6 7.5 5.8 5.9 5.4 6.3 2.8 5.2 2.3 0.5 -2.0 2019 2020 2021 2019 2020 2021 2019 2020 2021 -2.5 -4.5 GF GF Piping Systems GF Casting Solu

  6. Slide 6: Strong market position results in accelerated growth

    GF Piping Systems Strong market position results in accelerated growth  Sales of CHF 1'971 million (+15.4%), organically +14.3%  Operating result at CHF 247 million, all-time high EBIT margin of 12.5%  All business segments benefit from strong demand in their markets (organic growth: Industry +19

  7. Slide 7: Ongoing expansion in attractive segments and regions

    GF Piping Systems Ongoing expansion in attractive segments and regions Arizona (USA) – new logistic and fabrication hub India – plant expansion completed FGS Brazil – integration well on track Yangzhou (China) – new facility © GF 2021 7 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annu

  8. Slide 8: Strong organic growth in key market segments

    GF Piping Systems Strong organic growth in key market segments +14% +26% +12% Water utility Microelectronics and Data Center Water treatment © GF 2021 8 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  9. Slide 9: Innovation meets sustainability

    GF Piping Systems Innovation meets sustainability GF installation inside the ship First hydrogen-powered cargo ship Source: NPCR PVDF solutions Dogger Bank – offshore wind park Product range – PVC Bio-Attributed © GF 2021 9 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conf

  10. Slide 10: Market position further strengthened – headwinds affected results

    GF Casting Solutions Market position further strengthened – headwinds affected results  Sales of CHF 880 million (+17.1%), organically +15.9%  Lifetime order intake for e-vehicle components amounts to CHF 430 million  Operating result at CHF 5 million, EBIT margin of 0.5%  Chip and labor shortag

  11. Slide 11: Steep price increases for raw materials in 2021

    GF Casting Solutions Steep price increases for raw materials in 2021 Second. Aluminum [EUR/t] Prim. Aluminum [EUR/t] Magnesium [EUR/t] Index WVM Index Index 3'045 2'384 2'254 1'659 7'379 2'006 2020 2021 2020 2021 2020 2021 © GF 2021 11 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annua

  12. Slide 12: Growing demand for e-vehicle components

    GF Casting Solutions Growing demand for e-vehicle components EV market in 2021 (Sales in 1‘000 units) EV market share end of 2021 PHEV (Plugin Hybrid E-vehicle) BEV (Battery E-vehicle) 498k units 500 5% 20% 272k 20% units 400 300 60k 200 units 100 0 J F M A M J J A S O N D J F M A M J J A S O N D J

  13. Slide 13: Focus on innovation and sustainability

    GF Casting Solutions Focus on innovation and sustainability LEED Silver Plant Shenyang (China) Lightweight solutions for a better climate © GF 2021 13 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  14. Slide 14: Good momentum in second half – significant growth and promising results

    GF Machining Solutions Good momentum in second half – significant growth and promising results  Order intake +33% (MedTech, ICT, solutions for e-mobility)  Sales of CHF 873 million (+20.3%), organically +19.9%  Operating result at CHF 47 million, EBIT-margin of 5.4%  Automation and EDM as strong

  15. Slide 15: Customer service strengthened – important pillar for future growth

    GF Machining Solutions Customer service strengthened – important pillar for future growth Customer Service Service offering taken to new heights Digital combined with Service Integration of MACN in France © GF 2021 15 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  16. Slide 16: Strong organic growth in key market segments

    GF Machining Solutions Strong organic growth in key market segments +58% +14% +59% CUT X 350 Marker Band Medical ICT Automotive and e-mobility © GF 2021 16 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  17. Slide 17: Focus on innovation and sustainability

    GF Machining Solutions Focus on innovation and sustainability Digital services Laser S 2500 U CUT X 500 New laser generation Automation EDM next generation © GF 2021 17 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  18. Slide 18: Important steps towards sustainability targets 2025

    GF Corporation Important steps towards sustainability targets 2025 Sales of products with social or CO2e emissions % of newly appointed environmental benefits Scope 1 and 2, 1'000 t woman managers 1 preliminary figure % of total sales 2025 target: 25% 80 300 284 274 70% 70 -21% 30% 250 58% 60% 60 20

  19. Slide 19: Strategy implementation in full swing

    GF Corporation Strategy implementation in full swing Drive profitable growth Increase robustness Evolve culture through intelligent and sustainable solutions through resilient portfolio and operational excellence towards more performance and learning © GF 2021 19 SIX Convention Point, 2 March 2022 |

  20. Slide 20: Consolidated financial statements

    Consolidated financial statements Mads Joergensen, CFO © GF 2021 20 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  21. Slide 21: Sales per division

    GF Corporation Sales per division (CHF million) 2021 2020 ∆% 1) growth organic growth GF Piping Systems 1’971 1’708 +15.4% +14.3% GF Casting Solutions 880 752 +17.1% +15.9% GF Machining Solutions 873 725 +20.3% +19.9% GF Corporation 3’722 3’184 +16.9% +15.9% Sales H1 1’835 1'528 +20.1% +20.0% Sales

  22. Slide 22: Sales development

    GF Corporation Sales development (CHF million) 507 3′722 +11.1% 353 +4.8% 154 +0.9% 28 +0.1% 3′184 3 2020 Acquisitions Currencies Organic growth / 2021 price adjustments © GF 2021 22 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  23. Slide 23: Strong recovery in Americas and Europe, less in Asia

    GF Corporation Strong recovery in Americas and Europe, less in Asia (CHF million) Europe (44%) Asia (31%) +16% 14%* +14% Americas (20%) 11%* 1′654 +24% 1′424 1'139 999 24%* 749 606 2020 2021 Rest of world (5%) 2020 2021 2020 2021 +16% 33%* 180 155 *) Organic growth 2020 2021 © GF 2021 23 SIX Convent

  24. Slide 24: Headwind from currencies in 2021

    GF Corporation Headwind from currencies in 2021 (CHF million) Per division Sales EBIT Per currency Rates Sales EBIT 2021 2020 Change EUR 1.081 1.071 +1.0% +20 -1 USD 0.914 0.938 -2.6% -32 -15 GF Piping Systems -9 -12 CNY 0.142 0.136 +4.4% +45 +6 GF Casting Solutions +9 +2 TRY 0.106 0.135 -21.5% -30

  25. Slide 25: EBIT and EBIT margin per division

    GF Corporation EBIT and EBIT margin per division EBIT CHF million EBIT margin % 2021 2020 2021 2020 before one-offs before one-offs GF Piping Systems 247 193 12.5% 11.3% GF Casting Solutions 5 -15 0.5% -2.0% GF Machining Solutions 47 20 5.4% 2.8% GF Corporation 278 185 7.5% 5.8% EBIT H1 141 64 7.7%

  26. Slide 26: Income statement

    GF Corporation Income statement (CHF million) 2021 2020 ∆ Sales 3’722 3’184 +17% Gross value added 1’407 1’182 +19% Personnel expenses -995 -883 +13% EBITDA 412 299 +38% Depreciation, amortization -134 -133 +1% Operating result (EBIT) before one-offs 278 185 +50% Return on sales (EBIT margin) before

  27. Slide 27: Free cash flow

    GF Corporation Free cash flow (CHF million) 2021 2020 EBITDA 412 299 Changes in net working capital -94 76 Income taxes/interest paid -63 -53 Other changes 33 20 Cash flow from operating activities 288 342 Additions to property, plant, and equipment -135 -137 Cash flow from acquisitions -41 -6 Other

  28. Slide 28: Key figures at a glance

    GF Corporation Key figures at a glance 2021 2020 Net debt in CHF million 54 117 Net debt / EBITDA (multiple) 0.13x 0.39x Equity ratio in % 39.7 40.3 ROIC in % GF Corporation 16.4 9.3 GF Piping Systems 32.1 24.2 GF Casting Solutions 0.3 -5.7 GF Machining Solutions 21.9 7.8 Return on equity in % 14 8

  29. Slide 29: The Board of Directors will propose a 1:20 share split

    GF Corporation The Board of Directors will propose a 1:20 share split to the Annual Shareholders' Meeting 2022 Before split After split 1:20 4'100'898 registered shares 82'017'960 registered shares with a par value of CHF 1.00 with a par value of CHF 0.05 © GF 2021 29 SIX Convention Point, 2 March 2

  30. Slide 30: Outlook

    Outlook Andreas Müller, CEO © GF 2021 30 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  31. Slide 31: Outlook 2022 – well positioned for further growth

    GF Corporation Outlook 2022 – well positioned for further growth  Geopolitical tensions  Supply chain constraints  Promising order book  Strong position in growing key markets  Innovations with positive sustainability impact Sales and profit expected to make a further step towards strategy targ

  32. Slide 32: Q&A

    Q&A © GF 2021 32 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  33. Slide 33: Are you #GoingForward as well?

    Are you #GoingForward as well? Click here! © GF 2021 33 SIX Convention Point, 2 March 2022 | 2021 Financial Year | Annual Media Conference

  34. Slide 34: 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 AG (GF) — FY2021 Earnings Presentation on 6ix