1HY 2016 Results Presentation & Business Update August 12, 2016 - - PowerPoint PPT Presentation

▶
1hy 2016 results presentation amp business update
SMART_READER_LITE
LIVE PREVIEW

1HY 2016 Results Presentation & Business Update August 12, 2016 - - PowerPoint PPT Presentation

Aug 05, 2023 322 likes •552 views

1HY 2016 Results Presentation & Business Update August 12, 2016 Disclaimer The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and

slide-1
SLIDE 1

1HY 2016 Results Presentation & Business Update

August 12, 2016

slide-2
SLIDE 2

The information in this presentation about the business performance of the Conzzeta Group is of a summary nature only. The information in the Annual Report and half-year report of Conzzeta AG and on the website www.conzzeta.com prevails. Although the greatest possible care was taken with the preparation of the presentation, Conzzeta takes no responsibility for its completeness or correctness. Unless otherwise specified, the figures are based on the annual results for 2015 and half-year results for 2016. The presentation also contains statements about expected future financial and

  • perational developments which are based on subjective assessments. Any liability for

loss or damage arising directly or indirectly from the information in this presentation is expressly excluded.

Disclaimer

Page1 12th August 2016 / 20161HY Results Presentation

slide-3
SLIDE 3

Content

  • Financial results 1HY 2016
  • Business update
  • Outlook FY 2016
  • Appendix

Page 2 12th August 2016 / 20161HY Results Presentation

slide-4
SLIDE 4

Conzzeta results 1HY 2016

1) Comparable, i.e. at constant foreign exchange rates and considering change in scope.

Muted start into 2016

  • Below-average order book at YE 2015
  • Macroeconomic uncertainties

Stable Group result of CHF 20.9 (PY CHF 21.2)

  • Group profit margin stable at 3.8%

Higher order entry across segments

  • Investment goods +14.2%

Operating performance amidst challenging environment

  • Net revenue CHF 524.6 million; -3.8%1)
  • Operating result (EBIT) CHF 26.2 million; -18.1%1)

Dedicated efforts to accelerate growth and efficiency

  • Approx. 50% of cost increase in 1HY 2016 directly related to specific initiatives

Page 3 12th August 2016 / 20161HY Results Presentation

slide-5
SLIDE 5

(in CHF m)

1HY16 1HY15 ∆ Net revenue 524.6 543.7

  • 3.5%

Operating result (EBIT)

EBIT margin

26.2

4.8%

36.5

6.6%

  • 28.4%

Group result 20.9 21.2

  • 1.7%

Net operating assets 430.0 413.3* +4.0% Balance sheet 1227.3 1221.7* +0.5% Equity ratio (%) 77.8 78.6*

  • 0.8ppts

Free cash flow 126.1

  • 121.9
  • 1HY16 key figures

Comparable: -18.1%1) Driven by higher order backlog for 2HY16 Reclassifications of cash deposits; operating free cash flow broadly stable at CHF 9.5 million

Page 4

Comparable: -3.8%1)

1) Comparable, i.e. at constant foreign exchange rates and considering change in scope. * December 2015. 12th August 2016 / 20161HY Results Presentation

slide-6
SLIDE 6

Continuing activities

(in CHF m)

1HY16 1HY15

∆ %

Net revenue 524.6 534.3

  • 1.8

Total revenue 544.9 544.2

+0.1

EBIT 26.2 4.8% 31.5 5.8%

  • 16.8

Group result 20.9 3.8% 17.8 3.3%

+17.4

Change in scope of consolidation and continuing operations

Page 5

Spin-off of Real Estate business (PLAZZA) as of June 26, 2015

  • Net revenue of CHF 9.4 million and EBIT of CHF 5.0 million

Further acquisitions with net revenue impact of CHF 3.6 million

  • Bergschule Uri, Switzerland, as of June 1, 2015
  • Hydra Sponge in Washington, Missouri USA, as of January 5, 2016

Page 5 12th August 2016 / 20161HY Results Presentation

slide-7
SLIDE 7

1HY15 1HY16 Volume and price Change in scope

Development of Net revenue

(in CHF m)

FX translation

Page 6 12th August 2016 / 20161HY Results Presentation

544 525

+ 8

  • 21
  • 6
  • 3.8%
  • 1.1%

1.4%

  • 30000.0%
  • 25000.0%
  • 20000.0%
  • 15000.0%
  • 10000.0%
  • 5000.0%

0.0% 500 505 510 515 520 525 530 535 540 545 550

slide-8
SLIDE 8

1HY15 1HY16 Volume and product mix Personnel expenses

Development of Operating result

(in CHF m)

Change in Scope & FX translation

Page 7

OpEx & depreciation

  • Approx. 50% of cost increase

directly linked to specific growth and efficiency initiatives

Page 7 12th August 2016 / 20161HY Results Presentation

37 26

+ 1

  • 5
  • 3
  • 4
slide-9
SLIDE 9

411 509

+ 23 + 130

  • 7
  • 6
  • 13
  • 28
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21
  • 21

(in CHF m)

Page 8

Operating free cash flow CHF 9.5 m Free cash flow CHF 126.1 m Dec15 Operating cash flow Change in NWC Operating investments Acquisitions Divestments Change in securities Dividend / fx translation Jun16

Cash position driven by reclassification of cash deposits

Page 8 12th August 2016 / 20161HY Results Presentation

slide-10
SLIDE 10

Content

  • Financial results 1HY 2016
  • Business update
  • Outlook FY 2016
  • Appendix

Page 9 12th August 2016 / 20161HY Results Presentation

slide-11
SLIDE 11

Sheet Metal Processing Moderate start into 2016

  • Comparable net sales -4.5%
  • Below-average order backlog combined

with moderate markets in early 2016

  • Improved momentum towards mid 2016

with strong order entry

Business trends

  • Growth in Asia; net sales in US and

European markets below strong PY

  • Solid order backlog for 2HY16
  • Growth and efficiency initiatives – 1HY16

average FTEs 1’729, up 73 or 4.4%

Successful product portfolio

  • Fiber laser >80% of laser sales
  • Xpert 40 press brake with high demand
  • >50% of net sales with products

introduced within last three years CHF m 1HY16 1HY15 ∆ Net revenue 256.8 265.7

  • 3.4%

Operating result (EBIT) 17.7 26.8

  • 33.8%

EBIT margin 6.5% 9.5%

  • 3.0ppts

Net operating assets 187.8 159.3 +17.9%

ByStar Fiber

Page 10 12th August 2016 / 20161HY Results Presentation

slide-12
SLIDE 12

Swift transaction

  • Announced March 30 – closed July 14
  • 520 employees (end of July 2016)
  • CHF ~51 m revenue (FY 2015)

Complementary market positions

  • Bystronic top 3 globally at high end;

Top Line and Performance Line

  • DNE Laser top 3 in China; market leader

at low end with fast growth in mid-range

Bystronic acquisition of DNE Laser, Shenzhen, China

Top Line

Trend towards integrated solutions (Industry 4.0) Demand across industry sectors and geographies for cost- effective equipment

Value accretive growth strategy

  • Bystronic with full product range and

strengthened global footprint

  • Broadened market potential by serving

middle and entry level client segments

  • Two brand strategy

Global Performance Line

Page 11 12th August 2016 / 20161HY Results Presentation

slide-13
SLIDE 13

Sporting Goods Consistent challenges

  • Comparable net sales -0.1%
  • DACH region with subdued weather

conditions and competitive pressure

Business trends

  • International growth in target markets,

partly offset by decline in DACH region

  • Growth in hardware broadly offset by

decline in apparel

  • Launch of online shop and optimization
  • f retail network

Initiatives

  • Outsourcing of rope production (mid 2016)
  • New B2C sales organization
  • Start implementation of strategic plan
  • Multichannel management & digitalization;

Internationalization; Customer Centricity

CHF m 1HY16 1HY15 ∆ Net revenue 101.4 99.3 +2.1% Operating result (EBIT)

  • 4.5
  • 5.9

+23.3% EBIT margin

  • 4.5%
  • 6.0% +1.5ppts

Net operating assets 109.9 129.8

  • 15.3%

Page 12 12th August 2016 / 20161HY Results Presentation

slide-14
SLIDE 14

Chemical Specialties Growth in Asia and the US

  • Comparable net sales +2.7%
  • Favorable margin development from

cost, product mix and fx trends

  • Flat revenue trend in Europe

FoamPartner

  • Growth in technical foams, particularly

with acoustic solutions; qualification at Boeing supplier list

  • Weak demand in comfort products
  • Strategy alignment ongoing

Schmid Rhyner

  • Repositioning towards packaging industry,
  • incl. access to flexible packaging market
  • Decline in commercial printing largely
  • ffset by growth with Low Migration and

Touch & Feel for packaging products CHF m 1HY16 1HY15 ∆ Net revenue 111.0 103.4 +7.3% Operating result (EBIT) 12.5 8.9 +40.2% EBIT margin 11.3% 8.6% +2.7ppts Net operating assets 114.0 110.7 +3.0%

Seite 13 12th August 2016 / 20161HY Results Presentation

slide-15
SLIDE 15

Glass Processing Weaker results in automotive glass

  • Comparable net sales -16.9%
  • Exceptionally strong PY in automotive
  • Growth and solid order entry in

architectural glass across regions

Business trends

  • Solid order book for 2HY16
  • Increasing requirements in regard to

energy efficiency and noise reduction

  • Automotive glass with elevated volatility

Initiatives

  • Comprehensive review concluded
  • Need for further efficiency measures to

strengthen cost position

  • Innovation drive to complement high-end

solutions with quality mid-range products CHF m 1HY16 1HY15 ∆ Net revenue 55.2 64.8

  • 14.8%

Operating result (EBIT) 2.1 5.0

  • 58.0%

EBIT margin 3.6% 8.3%

  • 4.7ppts

Net operating assets 21.3 27.2

  • 21.7%

Page 14 12th August 2016 / 20161HY Results Presentation

slide-16
SLIDE 16

Content

  • Financial results 1HY 2016
  • Business update
  • Outlook FY 2016
  • Appendix

Page 15 12th August 2016 / 20161HY Results Presentation

slide-17
SLIDE 17

Conzzeta outlook for 2016

  • Conzzeta with innovative product portfolio & financial strength
  • Consistent execution of group strategy with long-term perspective
  • Drive internationalization and growth outside DACH region
  • Uncertain macroeconomic outlook
  • Europe stable growth at low level
  • Moderate growth in the US
  • Volatility in developing regions
  • 2HY16 will reflect
  • First-time consolidation of DNE Laser
  • Costs from optimization and cost efficiency measures

Within current environment, we expect moderate organic growth for 2016 and profitability at EBIT level comparable with 2015; in addition FY numbers will include the first-time consolidation of DNE Laser and any restructuring costs

Page 16 12th August 2016 / 20161HY Results Presentation

slide-18
SLIDE 18

Content

  • Financial results 1HY 2016
  • Business update
  • Outlook FY 2016
  • Appendix

Page 17 12th August 2016 / 20161HY Results Presentation

slide-19
SLIDE 19

Balance sheet

(in CHF m)

1HY16 1HY15 Cash, cash equivalents and securities 509.0 487.8 Receivables 173.7 179.1 Prepaid expenses and accrued income 16.9 16.2 Inventories 249.8 254.8 Property, plant and equipment 200.9 202.0 Financial assets 68.4 51.0 Intangible assets 8.6 8.3 Short-term liabilities 228.7 242.2 Long-term liabilities 43.2 46.7 Shareholders’ equity 955.4 910.3 Total assets 1227.3 1199.2

Page 18 12th August 2016 / 20161HY Results Presentation

slide-20
SLIDE 20

(in CHF m)

1HY16 1HY15 ∆ Net revenue 524.6 543.7

  • 3.5%

∆ Inventory and own work capitalized 20.3 9.9 Total revenue 544.9 553.6

  • 1.6%

Cost of materials

  • 258.6
  • 264.1

Personnel expenses

  • 148.2
  • 141.5

Other operating expenses

  • 98.9
  • 96.7

Depreciation

  • 13.0
  • 14.8

Operating result (EBIT) 26.2 36.5

  • 28.4%

Financial result 1.6

  • 4.3

Result from unconsolidated investment 0.1

  • Extraordinary result

0.0

  • 0.6

Taxes

  • 7.0
  • 10.4

Group profit 20.9 21.2

  • 1.7%

Consolidated income statement

Page 19 12th August 2016 / 20161HY Results Presentation

slide-21
SLIDE 21

(in CHF m)

1HY16 1HY15 ∆ Cash flow from operating activities before change in net working capital 23.0 33.8

  • 10.8

Change in net working capital

  • 7.4
  • 17.7

Cash flow from operating activities 15.6 16.1

  • 0.5

Net investments in property, plant and equipment and intangible assets

  • 8.8
  • 8.8

Net investments in financial assets without securities 2.7 2.3 Operating free cash flow 9.5 9.6

  • 0.1

Change in securities 130.0

  • 126.0

Change in operating activities

  • 13.4
  • 5.6

Free cash flow 126.1

  • 121.9

248.1

Cash flow statement

Page 20 12th August 2016 / 20161HY Results Presentation

slide-22
SLIDE 22

Konzernleitungs-Sitzung vom 9. November 2011 - Robert Suter Seite 21

Conzzeta AG Giesshuebelstrasse 45 CH-8045 Zurich www.conzzeta.com Phone +41 44 468 24 44 investor@conzzeta.com

Page 21 12th August 2016 / 20161HY Results Presentation