Gurit Holding AG · SIX:GURN

Gurit — H1 2020 Earnings Presentation

33 slides from Gurit's earnings presentation, Aug 17, 2020

  1. Slide 1: Gurit 1HY 2020 Results Media and Analyst Conference

    Gurit 1HY 2020 Results Media and Analyst Conference August 17, 2020 WITH PASSION FOR A SUSTAINABLE FUTURE

  2. Slide 2: Gurit 1HY 2020 Results

    Gurit 1HY 2020 Results Media and Analyst Conference (webcast) August 17, 2020 at 09:00 AM CET Zurich, August 17, 2020 Rudolf Hadorn, CEO Philippe Wirth, CFO WITH PASSION FOR A SUSTAINABLE FUTURE

  3. Slide 3: Introductory statement

    Introductory statement This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances. Such stateme

  4. Slide 4: With passion for a sustainable future

    With passion for a sustainable future 7 lergy and fightweightiniy. le area ‘aystom partner for wind energy customers globally, with focus on the wind turbine blade. With our unique offerings and in- depth understanding of the value chain we help to increase wind energy competitiveness and promote it

  5. Slide 5: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of Webcast; Questions Gurit 1HY2020 Results 17 August 2020 5

  6. Slide 6: Market Outlook Wind, Aerospace and Marine & Industry

    1HY 2020 Market Outlook Wind, Aerospace and Marine & Industry  Wind market environment  Strong wind energy demand during 2020 COVID; classified as a strategic economic sector  Expect S-slope demand curve for new installations up to 2030  2021 expect a record year of new wind turbine generator (W

  7. Slide 7: Global Power Generation

    Global Power Generation * Source: Wood Mackenzie June 2020 Gurit 1HY2020 Results 17 August 2020 7

  8. Slide 8: Wind Energy Demand Outlook

    Wind Energy Demand Outlook GW Wind power capacity installed annually* 100 90 Wind growth trends and major 90 84 changes 80 77 77 77  2020: increase forecasted to 71 70 71 GW (incl. COVID delays) 70 66 65 62  2021+: overall demand situation 60 may improve; 50 50  US PTC ends 2020 but offshore like

  9. Slide 9: Gurit Organisational Development 2020 YTD Management Appointments

    Gurit Organisational Development 2020 YTD Management Appointments Mitja Schulz Dr. Ernst Lutz appointed as appointed as CEO of Gurit Group GM Wind Materials on 17 August 2020 effective 1 September 2020 Lance Hill Andreas Kipker internally promoted to GM of internally promoted to new Marine and Indus

  10. Slide 10: Progress on Strategic Programs

    Progress on Strategic Programs Health and Safety first program Sustainability Targeting a 50% reduction in accident rate Footprint assessment H2 2020, then setting (LTAR) from 2019 to 2022. Gurit is on track with pace to carbon neutrality. the program YTD 2020. Gurit 1HY2020 Results 17 August 2020 1

  11. Slide 11: Gurit Business Strategy Update

    1HY 2020 VS 1HY 2019 Gurit Business Strategy Update WIND ENERGY VS. LIGHTWEIGHTING REGIONAL SALES (continued operations) 2020 2020 2019 2019 EMEA AMER APAC ROW EMPLOYEES (Full Time Equivalents FTE) 30.06.2020 31.12.2019 Gurit 1HY2020 Results 17 August 2020 11

  12. Slide 12: Key Financial Notes 1HY 2020/2019

    Key Financial Notes 1HY 2020/2019 Net Sales Growth (1HY20/1HY19) CHF reported FX Adj. Total -0.5% 5.7% Continued business 2.3% 8.7% Operating Profit Margin 1HY 2020 1HY 2019 Total 11.1% 9.7% Continued business 11.2% 12.5% Gurit 1HY2020 Results 17 August 2020 12

  13. Slide 13: Gurit Strategic Investment Programs: PET

    1HY 2020 Gurit Strategic Investment Programs: PET  Market trend: PET share in WTG blades expected to rise: 2020: PET share ca. 30% 2023: PET share ca. 70%  Gurit ambition: PET market share 30-40%  PET capacity ramp-up:  China extruder #3 completed H1/2020  Mexico extruder #1 installing, Q4/2020

  14. Slide 14: Gurit Strategic Investment Programs: Kitting

    1HY 2020 Gurit Strategic Investment Programs: Kitting  Kitting capacity increase for growth  Gurit ambition: Kitting market share 30-40%  Technology: Next generation kitting lines deployment as of 2021  Capacity ramp-up:  Mexico: Kitting expansion in 2020  North India: Plant set-up (Q4/2020 -

  15. Slide 15: Gurit strategic investment programs: Footprint expansion

    Gurit strategic investment programs: Footprint expansion  China (2020-2021) Added extrusion capacity in Tianjin (2020), adding kitting capacity in China (2021)  India (2020-2022) North: New kitting site South: Co-located new tooling / extrusion / kitting site  Mexico (2020) Co-location of kitting

  16. Slide 16: Development by Business Unit

    Development by Business Unit Gurit 1HY2020 Results 17 August 2020 16

  17. Slide 17: Composite Materials

    RESULTS 1HY 2020 & OUTLOOK Composite Materials Composite Materials: Quarterly Net Sales MCHF 80 Net Sales: CHF 134.1 m (1HY 2019: CHF 122.2m) 70 61.5 63.2 64.1 66.2 67.9 60.7 60  Increase by 9.7% (at constant rates: 16.4%) vs. 1HY 2019 50 Solid growth in Wind materials market. Balsa cost/prices boo

  18. Slide 18: Kitting

    RESULTS 1HY 2020 & OUTLOOK Kitting Kitting: Quarterly Net Sales Net Sales: CHF 110.5 (1HY 2019: CHF 75.2) MCHF 70 60 63.6 62.4 51.9 48.1  Dynamic sales growth of 47.0% (currency-adjusted: 57.1%) 50 40.8 vs. 1HY 2019; also fuelled by material cost/price increases (e.g. Balsa) 40 34.4 30 20 Key Busin

  19. Slide 19: Tooling

    RESULTS 1HY 2020 & OUTLOOK Tooling Tooling: Quarterly Net Sales Net Sales: CHF 45.8m (1HY 2019: CHF 67.8m) MCHF 40 36.1 35 31.7  Decrease by -32.4% (currency-adjusted: -27.8%) vs. 1HY 2019 30 26.3 25 22.5 Compares to a very strong previous year and impacted by COVID-19 19.5 20 15.8 15 Key Business

  20. Slide 20: Aerospace

    RESULTS 1HY 2020 & OUTLOOK Aerospace Aerospace: Quarterly Net Sales MCHF 16 Net Sales: CHF 18.2 (1HY 2019: CHF 27.5m) 14 14.3 13.1 13.8 13.4 12.2  Decrease by -33.7% (currency-adjusted: -31.3%) vs. 1HY 2019 12 10 Global decline in passenger traffic due to COVID-19 8 Thus declining orders for new ai

  21. Slide 21: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions Gurit 1HY2020 Results 17 August 2020 21

  22. Slide 22: H1 2020 Financial Results

    H1 2020 Financial Results Philippe Wirth CFO WITH PASSION FOR A SUSTAINABLE FUTURE

  23. Slide 23: Net Sales by Segment

    Net Sales by Segment Materials Kitting Tooling Aerospace Group (Continued Operation) mCHF -31.3% mCHF +16.4% +57.1% -27.8% mCHF mCHF mCHF 300 140 140 140 140 120 120 120 250 120 100 100 100 100 200 80 80 80 80 150 60 60 60 60 100 40 40 40 40 20 20 50 20 20 - - - - - H1 H2 H1 H2 H1 H1 H2 H1 H2 H1 H1

  24. Slide 24: 1HY 2020 Operating Results

    1HY 2020 Operating Results Continued operation CHF million 2020 2019 Sales 281.1 274.9  Strong sales growth +8.7% at constant currency Growth +8.7%  Organic sales growth +8.1% at constant currency  Gross Profit 2.4%-pts below prior year Gross profit 59.8 65.0  Tooling shift to lower margins sale

  25. Slide 25: Operating Profit Bridge 2020 vs. 2019

    Operating Profit Bridge 2020 vs. 2019 (Continued business) mCHF Gurit 1HY2020 Results 17 August 2020 25

  26. Slide 26: Cash Flow

    Cash Flow Trade net working capital CAPEX Free cash flow mCHF mCHF mCHF 30 30 30% 28.1% 250 25.5% 25 25 25% 22.2% 21.7 200 19.3% 20 20 20% 136.4 127.7 150 15 13.9 15% 109.5 15 101.2 11.2 11.8 100 8.9 10 10 10% 7.1 5% 50 5 4.0 5 1.5 0% 0 0 0 2017 2018 2019 H1 2020 H1 2017 H1 2018 H1 2019 H1 2020 H1 2

  27. Slide 27: June 2020 Balance Sheet

    June 2020 Balance Sheet June June CHF million 2020 2019 Net debt 51.5 71.3  Net debt reduction CHF 20m compared to prior year Change -19.8  Strengthening of Swiss Franc reduces equity by Equity ratio 38.5% 37.8% CHF 12m Change +0.7%-pts  Equity ratio reduction due to currency -0.5%-pts Gross debt

  28. Slide 28: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of webcast; Questions Gurit 1HY2020 Results 17 August 2020 28

  29. Slide 29: Outlook and Summary

    Outlook and Summary Rudolf Hadorn CEO WITH PASSION FOR A SUSTAINABLE FUTURE

  30. Slide 30: Business Results Guidance FY 2020

    Business Results Guidance FY 2020 For FY 2020 Gurit expects:  Net sales between CHF 550-600 million  Operating profit margin in the range of 9-11% Gurit 1HY2020 Results 17 August 2020 30

  31. Slide 31: Summary

    Summary  Team Gurit showed passion, managed COVID impact in an outstanding way  Top management nominations made and organisational changes implemented  Strong business results achieved in 1HY 2020 Gurit overall and in Wind BU’s  Aerospace BU hit hard by COVID – cost measures taken, recovery to t

  32. Slide 32: Agenda

    Agenda 1 Business Update 2 Financial Results 3 Outlook and Summary 4 End of Webcast Q&A session for Analysts & Journalists via dial-in conference call Gurit 1HY2020 Results 17 August 2020 32

  33. Slide 33: End of webcast Thank you for your attention

    End of webcast Thank you for your attention Gurit 1HY 2020 Results Zurich, August 17, 2020 WITH PASSION FOR A SUSTAINABLE FUTURE www.gurit.com Follow us on Linkedin: Gurit Twitter: Guritgroup Facebook: @GuritGroup

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