Bystronic AG

Investor Presentation • Jul 19, 2024

Half-year 2024 results

Zurich, July 19, 2024

Domenico Iacovelli, CEO Beat Neukom, CFO

The information in this presentation relating to the business performance of the Bystronic Group is of a summary nature only. The information published in the Half-Year Reports 2023 and 2024 of Bystronic AG, and the information on the website www.bystronic.com prevails.

Although the greatest possible care was taken during the preparation of this presentation, Bystronic accepts no responsibility for its completeness or correctness. Unless otherwise specified, the figures are based on the Half-Year Reports 2023 and 2024 of Bystronic AG.

This presentation also contains forward-looking statements, which are subject to uncertainty and risks. Actual future results may differ materially from those expressed in or implied by these statements. Some of these uncertainties and risks relate to factors that are beyond Bystronic's ability to control or predict precisely, such as, in particular, future market conditions, currency fluctuations, or the behavior of other market participants, suppliers, and transport companies as well as potential impacts due to the war in Ukraine and the associated sanctions as well as any countermeasures. Readers are cautioned not to put undue reliance on forward-looking statements, since these relate only to the date of this communication. Bystronic disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or any other factors.

Agenda

Business review and first impressions Domenico Iacovelli

Financial review Beat Neukom

Outlook Domenico Iacovelli

Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner Beat Neukom

Welcome and introduction

About

Was a member of the Executive Committee at listed ANDRITZ group

Joined Bystronic in June 2024 and took over the responsibility as CEO as of July 2024

First impressions

Onboarding

• Joined on June 1 and in charge as CEO since July 1
• Visited all regions and main sites USA, China, Italy, Germany, Switzerland
• Met key customers and stakeholders

Highlights

• Bystronic spirit
• Highly innovative machines, high-tech business with large market potential
• End-to-end solutions provider with machines, service and software

Focus areas

Customers – reversal of order intake trend and strengthen market position

People – get to know our teams and strengthen key positions

Solutions – strengthen and optimize endto-end business approach

Operations - review of organizational structures and optimization potential

CHF 304.7m Order intake

Order intake declines by 27.6% (-24.5% at constant exchange rates)

CHF 330.9m

Net sales

Net sales down 29.3% (-26.3% at constant exchange rates)

CHF -23.0m EBIT

Loss due to low sales volumes - EBIT of CHF 25.3m last year

-15.2% RONOA

CHF -26.9m Operating free cash flow vs. 12.5% in H1 2023 vs. CHF -34.4m in H1 2023 Strong balance sheet with

CHF 303.7m Cash and securities

equity ratio of 70.0%

Customers in various industries are cautious…

• Many sector with declining demand
• Customers are not operating at full capacity and consequently are cautious to invest in new equipment
• Customers tend to wait for lower interest rates and therefore better financing conditions.
• Other than expected no signs for a recovery yet

… even in often more stable sectors such as agriculture

• Agriculture as a key end market for our business, especially in the Americas
• As many OEMs are not operating at full capacity, they increasingly insource parts of the production – to the disadvantage of many job shops
• Low corn price reflects trend for declining market

We have to strengthen our exposure to other fast-growing end-markets

Source: Ag Economy Barometer from Purdue University

Systems

Service

Software & solutions

• Strengthen our portfolio in the lower silver segment with the launch of the new ByCut Eco and Nova
• Strengthen project execution capabilities in our solutions business and reduce project deviations
• Lower utilization of customer machines leads to lower demand and customers delay service due to economic uncertainty
• Sales from slightly below previous year

Launch of our new ByCut Eco

34% of sales from service business

• Increased demand for complex automation solutions
• Software business to open up new markets such as Australia and United States

Strengthen end-to-end solutions

Agenda

Business review and first impressions Domenico Iacovelli

Financial review Beat Neukom

Outlook Domenico Iacovelli

Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner Beat Neukom

Continued weak market environment in all regions

Regions

• EMEA: weak development across market – but some sequential improvements quarter-over-quarter
• Americas: weaker Q2 in light of increasing uncertainties, also ahead of US elections and high interest rates
• China: continued weak momentum and highly-competitive
• APAC: slowing demand in key markets such as Korea

Actions taken

• Some pricing flexibility offered and dedicated marketing campaigns
• Close support and monitoring of sales activities
• Preparation for the upcoming launch of our new ByCut Eco and Nova

© Bystronic | Half-Year Results 2024 10

• Further analysis of the overall organizational structure

in CHF million	H1 2024	H1 2023
Net sales	330.9	468.3	Sales decline of 29% - due to weak demand and normalized level of backlog
Other operating income	2.2	1.8
Material expenses + changes in inventories	(134.9)	(198.7)	Improved gross margin from segment mix impact (service vs machines) and
in % of sales	(40.8%)	(42.4%)	favorable material expenses, offset by unfavorable mix within laser segment
Personnel expenses	(122.9)	(131.1)	Further reduction of FTEs; ~300 (8%) compared to end of June 2023,
in % of sales	(37.1%)	(28.0%)	across all functions in the organization
Other operating expenses	(88.1)	(104.8)
in % of sales	(26.6%)	(22.4%)	16% reduction of operating expenses; variable and structural reductions
Depreciation and amortization	(10.2)	(10.2)
in % of sales	(3.1%)	(2.2%)
Operating result (EBIT)	(23.0)	25.3	Cost saving initiatives not able to compensate for large negative operating
in % of sales	(6.9%)	5.4%	leverage. Substantially lower sales and overcapacity in production.
Financial result	1.9	(0.1)	Improved interest rates
Result before income taxes	(21.0)	25.2
Taxes	0.2	(5.5)
Net result	(20.8)	19.8

		Details	Measures taken
Structural		• Reduce management layers and increase span of control	Optimized leadership structures in EMEA and APAC
	Organization	• Reduce overhead	Reduced FTEs in various admin functions
		• Establish readiness for next economic upswing	Ongoing
		• Efficiency gains in procurement, new product design and focused sales incentives	Lower than expected gains due to lower procurement volumes
	Efficiency	• Leverage capabilities of our near-shore Center of Excellence	Further transfer tasks to CoE and
		• Optimize and streamline back-office processes	standardize processes
Volume related		• Short-term work in production and related functions	Continued short-term work in Switzerland
	Resources	• Optimize service and installation capacities	Optimization of service capacity

in CHF million	June 30, 2024	Dec 31, 2023
Cash and securities	303.7	348.8
Trade receivables	110.5	117.5
Inventories	244.4	237.9
Other current assets	58.2	57.3
Fixed / intangible assets	134.2	135.2
Other non-current assets	129.1	127.4
Total assets	980.1	1,024.1
Trade payables	39.6	52.2
Advance payments from customers	102.5	95.3
Other liabilities	152.4	146.0
Total liabilities	294.5	293.5
Total equity	685.6	730.6
Total equity and liabilities	980.1	1,024.1

Net Operating Assets (NOA) 1	308.7	291.0

Cash: Lower liquidity due to negative operating free cash flow and dividend payment

Inventories: some build-up due to higher semi-finished products and some systems close to completion

Advance payments:

2nd or 3rd payment received from projects closer to hand-over

As a result, NOA slightly higher

RONOA negative with -15.2% due to loss (vs. 12.5% in H1 2023)

Operating free cash flow impacted by negative net result

in CHF million	H1 2024	H1 2023
Net result	(20.8)	19.8
Depreciation and amortization	10.2	10.2
Increase/decrease in:
inventories	3.3	(23.0)
trade receivables	11.7	(3.8)
advance payments from customers	2.6	(11.5)
trade payables	(12.1)	(3.3)
Other items	(14.5)	(15.8)
Cash flow from operating activities	(19.6)	(27.4)
Investments in fixed and intangible assets	(7.3)	(6.7)
in % of sales	2.2%	1.4%
Other investments / divestments	0.1	(0.3)
Operating free cash flow	(26.9)	(34.4)

Cash flow development

• Negative cash flow performance due to insufficient sales to cover cost base
• Net working capital at the same level as of Dec 31, 2023
• CapEx / depreciation ratio of 58%

Agenda

Business review and first impressions Domenico Iacovelli

Beat Neukom

Financial review Beat Neukom

Outlook Domenico Iacovelli

Q&A Domenico Iacovelli Dr. Heinz O. Baumgartner

Remarks

• No signs of market recovery: continued weak demand expected, especially in key sectors such as agriculture
• Focus on measures to move closer to customers, become more efficient and improve customer experience
• Focus on reducing the project deterioration in our new era of end-to-end solutions
• Further implementation of cost optimization program and identification of additional savings potential

Outlook 2024

Market conditions remain challenging, and Bystronic does not expect recovery in the second half of 2024. As a result, the Group expects order intake and sales below previous year levels and accordingly, a significant loss for full year 2024.

Questions & Answers

in CHF million	H1 2024	H1 2023	Δ in %	Δ in % at CER1
Order intake	304.7	420.9	(27.6)	(24.5)
Order backlog	238.5	354.1	(32.7)	(32.3)
Net sales	330.9	468.3	(29.3)	(26.3)
Systems business	220.0	345.5	(36.3)	(33.7)
Service business	110.8	122.9	(9.8)	(5.5)
Operating result (EBIT)	(23.0)	25.3	-	-
EBIT margin	(6.9%)	5.4%	-	-
Net result	(20.8)	19.8	-	-
Operating free cash flow	(26.9)	(34.4)	-	-
RONOA (in %)	(15.2%)	12.5%	-	-
Average FTEs 2	3,353	3,629	(7.6)	-

	Order intake in CHF million				Net sales in CHF million
	H1 2024	H1 2023	in %	in % at CER 1	H1 2024	H1 2023	in %	in % at CER 1
EMEA	151.6	198.4	(23.6)	(20.7)	150.8	235.8	(36.0)	(33.4)
Americas	110.3	145.7	(24.3)	(21.6)	131.4	164.5	(20.1)	(17.3)
China	25.1	33.5	(25.1)	(19.3)	27.9	34.5	(19.2)	(12.8)
APAC	17.7	43.3	(59.1)	(56.1)	20.7	33.5	(38.1)	(34.0)
Total	304.7	420.9	(27.6)	(24.5)	330.9	468.3	(29.3)	(26.3)

Financial calendar

2024
August 15	Roadshow ZKB Zurich
September 18	Investora conference in Zurich
November 3	ZKB Swiss Equities Conference in Zurich