Gurit Holding AG · SIX:GURN
Gurit — H1 2007 Earnings Presentation
17 slides from Gurit's earnings presentation, 2007
Slide 1: Investor Presentation Half-year results 2007
Investor Presentation Half-year results 2007 Strategy update Gurit is constantly enlarging its global footprint Safe harbour statement • Before we may start with the presentations, we need to remind you that the information made available in this conference call may include forward-looking statement
Slide 2: Major developments in 1HY2007
Content • Major developments in HY2007 – Key figures HY2007 – Group-wide development – Development per target market • Update on current growth initiatives • Outlook Major developments in 1HY2007 Strong sales growth continues • 19% sales increase to CHF 224.4 million in 1HY 2007 CHF 9 million one-of
Slide 3: EBIT Development 1HY06-1HY07
EBIT Development 1HY06-1HY07 25 20 7 9 15 10 14.5 8.4 5 4.1 0 1HY2006 Growth Growth- Operational 1HY2007 related one- impacts off costs CHF 9 million one-off costs, certain delays in passing higher raw material costs on to customers and less favorable production mix brings EBIT down to 4.1 million.
Slide 4: Operational impacts in 1HY07
Operational impacts in 1HY07 • Up to 20% higher raw material prices not yet passed on to customers because of complex contractual situation • Lower volumes of materials with higher contribution margins (winter sports, aerospace) led to less favorable product mix and under-utilized capacity • Higher
Slide 5: Gurit (Tianjin) officially inaugurated
Gurit (Tianjin) officially inaugurated • Gurit (Tianjin) officially inaugurated on August 22 • Project concluded withing budget and on time • Fast-track structural foam kitting since April • Qualification work on new prepreg line started in June • Unidirectional prepreg line installed by August • 2
Slide 6: Strengthening the organization / Global presence
Strengthening the organization • Aerospace: Stream-lining operations at Gurit (Zullwil) and Gurit (Kassel) • Civil Engineering: Additional pultrusion line installed at Gurit (Zullwil) • Sports: Thermoplastics at Gurit (Ittigen/Worb) • Non-core business (thermoplastic) transferred to JV GuMa • Sourci
Slide 7: Major developments in HY2007 per target market: Wind Energy
Major developments in HY2007 per target market Wind Energy Gaining market share in Wind Energy • Sales up 39% to CHF 122.6 in 1HY2007 • 27% CAGR underlying market Æ gaining market share • Estimated composite market size CHF 1.5 – 1.4 billion • Improved carbon sourcing situation • Expanding world-wid
Slide 8: Market growth of >25% to continue
Wind Energy Market growth of >25% to continue Annual Wind Power Development in MW Actual 1990-2005 & Forecast 2006-2010 (left) and Cumulative (right) 30,000 150,000 Potential for next 5 years 25,000 125,000 20,000 100,000 Europe Additional 65,000 MW 15,000 75,000 USA 10,000 50,000 Additional 12,000
Slide 9: Wind Energy: Strong position in value-adding chain
Wind Energy Strong position in value-adding chain SEMI-FINISHED RAW MATERIAL PRODUCTS and PARTS SUB-CON- END-USERS • Dow TRACTORS • Owens Corning • Vestas • Zoltek • Tecsis • Gamesa • Formosa • Hexcel • TPI • GE Wind • Mitsubishi • Diab • LM • Suzlon • others • Airex • Enercon •Exel • Siemens • othe
Slide 10: Transportation: Slight sales decline in 1HY07
Wind Energy Complete materials package for blades Gel Coat Prepreg Structural Foam Prepreg Carbon-based Airstream parts Prepreg Transportation Slight sales decline in 1HY07 • 1HY07 sales decline by 2.2% to CHF 31 million • Expected delays in A380 • Change in aerospace product mix • Positive outlook
Slide 11: Transportation: Growth potential
Transportation Growth potential Aerospace • Strong position in aircraft interiors • With new designs moving into secondary aircraft structures • Expansion in North-America and Asia • Market size: CHF 190 million; CAGR 10%, Gurit market share 30% Automotive • Finished car body-parts • Market size: CH
Slide 12: Automotive Advanced Composites Market; Marine, Sport, Civil Engineering
Transportation Automotive Advanced Composites Market With decreasing With growing number of cars per number of cars per <100 series, it becomes series, it becomes more economical to more economical to preduce them in preoduce them in carbon prepreg: <5000 metal: Lower material Lower tool costs <5000
Slide 13: Marine, Sport, Civil Engineering: Strong position in supply chain
Marine, Sport, Civil Engineering Marine: Major achievements 1HY2007 • High profile with IACC, Volvo Ocean Race, Open 60 • Growing penetration in high-end production yachts – Hanse, Seaway, Najad, Nautor Swan, Baltic etc • Strong sales increase in Corecell structural foam • Sales increase in retail b
Slide 14: HY2007 Group Income Statement
Half-year results 2007 HY2007 Group Income Statement In CHF 1000 1HY 2007 % 1HY 2006 % %YoY Net sales 224.4 100 188.0 19.4 Costs of materials 139.0 61.9 102.6 35.5 Personnel expenses 44.7 41.0 Other op. & adm. Exp. 28.6 22.7 Sundry expenses* 0.8 -0.2 Depreciation 7.2 7.4 Total operating expenses 81.
Slide 15: HY2007 Balance Sheet
HY2007 Balance Sheet : Assets In CHF 1000 30.06.2007 31.12. 2006 30.06.2006 Cash and sh-t securities 32 550 44 064 31 068 Accounts receivable 92 971 91 548 76 635 Inventories 63 105 45 474 42 200 CURRENT ASSETS 188 626 181 068 149 903 Fixed assets 139 541 115 160 107 357 Financial assets 3 479 3 300
Slide 16: HY2007 Cash flow Statement; Sales by Target Market
HY2007 Cash flow Statement In CHF 1000 1HY 2007 1HY 2006 CF from operating activities -2 381 18 945 CF from investment activities - 25 211 -8 320 thereof: investments in p.,p.& e. - 25 185 5 522 CF from financing activities 23 972 -9 243 therof: change in bank loans 18 038 3 458 therof: change in tr
Slide 17: Financial Targets 2007 and 2008
HY2007 Net Debt, Net Working Capital In CHF 1000 30.06.2007 31.12.2006 Net debt Cash 32 365 35 580 Short-term Liabilities w/interest -39 839 -36 506 Long-term Liabilities w/ interest -42 517 -23 563 Leasing -43 -224.3 Total net debt -50 033 -24 713 Net working capital Current assets without cash 156