Bystronic AG

Investor Presentation • Feb 29, 2024

Full-year 2023 results

Zurich, February 29, 2024

Alex Waser, 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 Annual Reports 2022 and 2023 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 Annual Reports 2022 and 2023 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 update Alex Waser

Financial review Beat Neukom

Outlook Alex Waser

Q&A Alex Waser Dr. Heinz O. Baumgartner Beat Neukom

CHF 930.1m

Net sales

Net sales down 8.4% – mainly because of the strong Swiss franc

CHF 54.4m EBIT

EBIT margin of 5.8% vs. 4.7% in 2022

CHF 794.0m Order intake

Order intake declines by 21.4% (-15.9% at constant exchange rates)

14.2% RONOA

CHF 12.00 Dividend per class A share

vs. 15.1% in 2022 Proposal to the Annual General Meeting 2024

CHF 348.9m Cash and securities

Solid cash generation leads to higher liquid assets

Europe

Various Open Days and customer journeys instead of exhibitions

China

Successful Competence Days face-to-face with customers

Switzerland

USA

Launch of innovative new machine features, e.g. mixed gas cutting

Americas Sales increased by 60% in last 5 years First local assembly of laser cutting machine in Gold segment

India Opening of new facility and Experience Center

Systems Service Software & solutions • Compact new bending machine to fit in any production hall – new features to automize measurements of bending angles and increased speed Launch of our new ByBend Star 120 Service Talent Development Program 2023 Two waves of software campaigns during 2023 • Investments show impact: strong sales growth of 12%1 with flat number of technicians • Closed 12 projects • Strengthened organization in 3 main hubs – more than 100 employees

	Past Single-machine producer	Today Full-service provider
Automation offering	Limited	Comprehensive
% of sales from service1	17%	26%
Importance of Americas region1	CHF 206 m	CHF 335 m
Software offering	Small	Integrated
Sustainability approach	No	Integrated
Customer proximitiy	Centrally managed	Regionalisation
… but also: Business in China	High-margin	Price pressure

About the customer

• VDL Leegte Metaal in Hapert, Netherlands
• Founded in 1953, operates with 160 employees
• Bystronic customer since 2020
• Specialized in sheet metal processing

About the smart factory

• 37 towers and 2 elevators height of 9.5 metres
• Input stations can process 24 metric tons of material per hour
• Automated Guided Vehicles transport parts between manufacturing process steps
• Factory includes both Bystronic machines as well as machines from competitors

What it means for Bystronic

• Long-term customer relationship
• Proof-of-concept for our software and smart factory solutions

	0

• Reference project for future customers

Agenda

Business update Alex Waser

Financial review Beat Neukom

Outlook Alex Waser

Q&A Alex Waser Dr. Heinz O. Baumgartner Beat Neukom

Strong Swiss franc reduces order intake…

… plus subdued market environment

Geopolitical uncertainties High Inflation Increased interest rates

EMEA: cool-down during 2023

• Order intake slighlty stabilizing in last quarters at constant exchange rates, but down versus previous year
• Still solid performance in markets with leading position

Americas: continued solid performance

• Order intake on level of previous year at constant exchange rates
• Some cool-down in Q4 amidst economic uncertainties

China: challenging market with intensified competition

• Characterized by over-capacities and high price-sensitivity
• Stabilizing order intake in past four quarters at low levels

APAC: different picture from market to market

• Solid performance in more mature markets
• Overall declining orders

in CHF million	2023	2022	Δ in %
Net sales	930.1	1,015.9	(8.4)	Sales decline of CHF 86m, thereof CHF 63m FX related and CHF 23m organic
Other operating income	5.1	5.5	(7.3)
Material expenses + changes in inventories	(404.9) 00	(469.3) 00	(13.7) 00	Improved gross margin from pricing, higher share of service sales and better sourcing conditions
in % of sales	(43.5)%	(46.2)%	-
Personnel expenses	(251.9)	(260.0)	(3.1)	Reduced average number of FTEs by 3%
in % of sales	(27.1)%	(25.6)%	-	Overcompensating inflation adjustments for salaries
Other operating expenses	(203.1)	(222.1)	(8.6)	Strict cost control in sales, marketing and administration; and reduction in line with
in % of sales	(21.8)%	(21.9)%	-	lower sales
Depreciation and amortization	(21.0)	(21.8)	(3.4)
in % of sales	(2.3)%	(2.1)%	-
Operating result (EBIT)	54.4	48.1	13.0
in % of sales	5.8%	4.7%	-
Financial result	0.7	(2.7)	-	Improved interest rates
Result before income taxes	55.1	45.4	21.2
Taxes	(13.1)	(8.9)	-	Unfavorable country mix
Net result	41.9	36.6	14.7

in CHF million	Dec 31, 2023	Dec 31, 2022
Cash and securities	348.8	341.6
Trade receivables	117.5	167.2
Inventories	237.9	287.7
Other current assets	57.3	66.0
Fixed / intangible assets	135.2	145.2
Other non-current assets	127.4	134.9
Total assets	1,024.1	1,142.5
Trade payables	52.2	69.9
Advance payments from customers	95.3	158.7
Other liabilities	146.0	189.7
Total liabilities	293.5	418.3
Total equity	730.6	724.2
Total equity and liabilities	1,024.1	1,142.5

Net Operating Assets (NOA) 1	291.0	288.0

Cash: On last year's level thanks to solid cash flow net of dividend payment

Inventories: successfully reduced finished as well as semi-finished goods

Advance payments:

considerable decline due to lower order intake

As a result, NOA remained stable and RONOA stands at 14.2% (vs. 15.1% in 2022)

Successful working capital management results in improved cash flow

in CHF million	2023	2022
Net result	41.9	36.6
Depreciation and amortization	21.0	21.8
Increase/decrease in:
inventories	30.2	(49.3)
trade receivables	38.1	(41.1)
advance payments from customers	(54.3)	11.0
trade payables	(14.0)	(7.7)
Other items	(9.3)	12.2
Cash flow from operating activities	53.6	(16.5)
Investments in fixed and intangible assets	(19.4)	(23.4)
in % of sales	2.0%	2.3%
Other investments / divestments	(0.2)	(0.7)
Operating free cash flow	34.0	(40.6)

Cash flow development

• Successful focus on working capital management: cash collection and reduced inventory
• As expected, lower advance payments from lower order intake

• Lower than usual capex-to-sales ratio to protect cash flow performance – reinvestment ratio of 0.9x

Equity ratio of 71%2

Liquid assets > CHF 320 million2

Dividend proposal of CHF 12 per share1

• Rewards shareholders for a solid performance in 2023
• In line with our dividend policy: payout of one-third to one-half of net profit – while taking into account the liquidity situation and future requirements

1 For class A registered shares. Dividend of CHF 2.40 for class B registered shares. Subject to approval by the AGM on April 17, 2024 2 After dividend distribution, assuming balance sheet values as of Dec 31, 2023

Agenda

Business update Alex Waser

Financial review Beat Neukom

Outlook Alex Waser

Q&A Alex Waser Dr. Heinz O. Baumgartner Beat Neukom

Key drivers for sales and profitability

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800

1000

1

We are taking measures to structurally improve our profitability while continuing to execute on our strategy

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

To improve our profitability, we launch a cost optimization program

		Details	Timing	Impact 1
Structural	Organization	• Reduce management layers and increase span of control • Reduce overhead • Establish readiness for next economic upswing	• Implemented in 2024
	Efficiency	• Efficiency gains in procurement, new product design and focused sales incentives • Leverage capabilities of our near shore Center of Excellence • Optimize and streamline back-office processes	• Full positive impact by 2025	~ CHF 50 million / -210 FTEs
Volume related	Resources	• Short-term work in production and related functions • Optimize service and installation capacities	2024

Market environment to remain muted

• Cautious investment behaviour from clients
• Order intake on level of previous quarters
• Strong CHF against all major currencies
• Further growth in service business, but at lower rate

Impacts on our operating result

• Negative operating leverage and some wage inflation
• Strict cost optimization program launched to improve profitability
• One-time costs related to cost optimization program

Conclusion

Due to the strength of the Swiss franc and the lower order backlog compared to last year, the company expects to have declining sales with lower profitability.

The group anticipates a weak beginning of the year and improvement over the course of the year.

Questions & Answers

in CHF million	2023	2022	Δ in %	in % at CER1 Δ
Order intake	794.0	1,009.5	(21.4)	(15.9)
Net sales	930.1	1,015.9	(8.4)	(2.3)
Systems business	692.7	788.7	(12.2)	(6.3)
Service business	237.4	227.2	4.5	11.7
Operating result (EBIT)	54.4	48.1	13.0	-
EBIT margin	5.8%	4.7%	-	-
Net result	41.9	36.6	14.7	-
Operating free cash flow	34.0	(40.6)	-	-
RONOA (in %)	14.2%	15.1%	-	-
Average FTE 2	3,573	3,679	(2.9)	-
per share) 3 Dividend (in CHF
Class A registered share	12.00	12.00	-	-

2 full time equivalents

3 proposal to the AGM on April 17, 2024

	Order intake in CHF million			Net sales in CHF million
	2023	2022	in %	in % at CER 1	2023	2022	in %	in % at CER 1
EMEA	368.5	508.8	(27.6)	(22.9)	453.3	500.1	(9.4)	(3.7)
Americas	290.3	308.7	(5.9)	(0.1)	335.1	315.9	6.1	12.4
China	65.4	77.4	(15.6)	(5.9)	63.5	83.3	(23.8)	(15.1)
APAC	69.8	114.7	(39.1)	(33.8)	78.2	116.5	(32.9)	(27.0)
Total	794.0	1,009.5	(21.4)	(15.9)	930.1	1,015.9	(8.4)	(2.3)

Financial calendar

2024
March 5	Full-year results roadshow in Zurich
April 15	3M Trading Update
April 17	Annual General Meeting
June 12	Stifel Swiss Equities Conference
July 19	Half-year results 2024 in Zurich