Bystronic AG

Investor Presentation • Jul 21, 2023

July 21, 2023

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 Half-Year Report 2023 and the Annual Report 2022 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 Report 2023 and the Annual Report 2022 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 Beat Neukom

CHF 468.3 m Net sales

Net sales growth of 3.3%, 9.7% at constant exchange rates

CHF 25.3 m EBIT

EBIT margin of 5.4% vs. 2.3% in H1 2022

CHF 420.9 m Order intake

Order intake declined by 21.5%, -16.3% at constant exchange rates

12.5% RONOA

Return on Net Operating Assets vs. 6.6% in H1 2022

CHF -34.4 m Operating free cash flow

CHF 283.2 m Net cash

vs CHF -52.5 m in H1 2022 Strong balance sheet with equity ratio of 64.5%

First half of 2023 in a nutshell

Competence Days China, Tianjin

Competence Center Automation, Shanghai

Supply chain constraints easing

Trend towards automated systems for mid- and entry-level segments and Smart Factory solutions

Profitablity more than doubled from H1 2022

Continued investment and growth of service business

Medium-term growth drivers intact

We made significant progress on our strategic pillars

Systems

• New product innovation in Silver portfolio
• Expanded entry-level segment with additional products
• Increased global market reach with DNE products

Software & solutions

• Growing demand for BySoft Software Suite
• Go-live of smart factory projects
• Up to 50 smart factory projects annually

Service

• 360° Customer Advisor available for all Bystronic product lines
• Continued high service contract coverage for new installations
• 20 additional service technicians hired while revenue per technician increased

Strong sales growth due to realization of high order backlog

EMEA

• Normalization of order backlog
• Customer investment behavior cautious

Americas

• Benefiting from a re-shoring surge
• Grown in relevance and represents more then 1/3 of total Bystronic net sales

China

• Fact-to-face Customer activities reinitiated
• Despite the easing of COVID-related restrictions, customers across all sectors adopted a restrained approach

APAC

• Lower volumes from government investment and stimulus support programs
• Australia developed positively within the region

Agenda

Business update Alex Waser

Financial review Beat Neukom

Outlook Alex Waser

Q&A Alex Waser Beat Neukom

in CHF million	H1 2023	H1 2022	Δ in %	in % at CER1 Δ
Order intake	420.9	536.1	(21.5%)	(16.3%)
Order backlog	354.1	515.2
Net sales	468.3	453.2	3.3%	9.7%
Systems business	345.5	343.1	0.7%	6.8%
Service business	122.9	110.1	11.7%	18.7%
Operating result (EBIT)	25.3	10.5	> 100%
EBIT margin	5.4%	2.3%
Net result	19.8	7.0	> 100%
Operating free cash flow	(34.4)	(52.5)
RONOA (in %)	12.5%	6.6%

Order intake

in CHF million

sequential

	H1 2022	H2 2022	H1 2023	H1'23 vs H2'22
EMEA	261.0	247.8	198.4
Americas	168.4	140.2	145.7
China	42.9	34.5	33.5
Asia Pacific	63.8	50.9	43.3
Total	536.1	473.4	420.9

y-o-y

• Overall softening in order intake of a high base in H1 2022
• EMEA impacted by weaker economic development
• Continued solid demand in Americas with sequential increase H1'23 vs H2'22. Order intake +50% vs pre-COVID 2019 levels
• Restrained customer behavior in China but stable at lower levels
• Normalizing from buoyant levels in H1'22. APAC prior year benefited from government investment programs
• Significant unfavorable FX impact represents 24% of absolute y-o-y decline

High order backlog at end of H1 2023 of CHF 354 million

Lower order intake in the systems business expected for 2023

Growing demand in service and software

in CHF million	H1 2023	H1 2022	H2 2022	Δ in %
Net sales	468.3	453.2	562.7	3.3%
Other operating income	1.8	2.2	3.2	-
Material expenses + changes in inventories	(198.7) 00	(197.3)	(272.0)	0.7%	Material quote improvement of 1.1ppts vs H1'22 and 5.9ppts vs H2'22 from price increases, favorable mix
in % of sales	(42.4%)	(43.5%)	(48.3%)		and raw material costs
Personnel expenses	(131.1)	(132.9)	(127.1)	(1.3)%	Salary inflation offset by 4% headcount reductions while at the same time further investment in service
in % of sales	(28.0%)	(29.3%)	(22.6%)		organization
Depreciation and amortization	(10.2)	(10.2)	(11.6)	-
in % of sales	(2.2%)	(2.2%)	(2.1%)
Other operating expenses	(104.8)	(104.6)	(117.6)	0.2%	Reduction of fixed operating expenses offset by
in % of sales	(22.4%)	(23.1%)	(20.9%)		increase of volume related expenses
Operating result (EBIT)	25.3	10.5	37.6	141.1%
in % of sales	5.4%	2.3%	6.7%
Financial result	(0.1)	(1.9)	(0.8)	-
Result before income taxes	25.2	8.6	36.8	192.1%
Taxes	(5.5)	(1.7)	(7.2)	-
Net result	19.8	7.0	29.6	183.8%

in CHF million	H1 2023	H1 2022
Net result	19.8	7.0
Depreciation and amortization	10.2	10.2
Change in net working capital	(57.3)	(61.6)
Cash flow from operating activities	(27.4)	(44.4)
Capital expenditures (capex)	(6.7)	(8.2)
in % of sales	1.4%	1.8%
Other investments / divestments	(0.4)	0.1
Operating free cash flow	(34.4)	(52.5)

Cash flow development

• Increase in inventories to work down high order backlog and build-up of safety stock
• Softening in order intake led to reduction of Advance payments from customers
• Accrued income from large solution projects increased
• Lower than usual capex-to-sales ratio due to timing of projects

Agenda

Business update Alex Waser

Financial review Beat Neukom

Outlook Alex Waser

Q&A Alex Waser Beat Neukom

Bystronic is well positioned for further growth based on its solid market position and strong portfolio of systems, service and solutions.

In light of the economic slowdown, for the full year 2023, Bystronic continues to anticipate a decline in order intake in the systems business, a growing service business and a higher operating result (EBIT) with a slight decline in overall sales

The group is confident to reach its medium-term targets based on its strong market position and the industry's intact growth drivers.

Questions & Answers

	Order intake in CHF million				Net sales in CHF million
	H1 2023	H1 2022	in %	in % at CER 1	H1 2023	H1 2022	in %	in % at CER 1
EMEA	198.4	261.0	(24.0%)	(18.1%)	235.8	222.3	6.1%	14.0%
Americas	145.7	168.4	(13.5%)	(10.5%)	164.5	131.4	25.2%	28.8%
China	33.5	42.9	(22.0%)	(14.2%)	34.5	50.6	(31.8%)	(25.0%)
APAC	43.3	63.8	(32.1%)	(25.9%)	33.5	48.9	(31.4%)	(25.4%)
Total	420.9	536.1	(21.5%)	(16.3%)	468.3	453.2	3.3%	9.7%

Financial calendar

2023
September 13	Investora conference in Zurich
September 18	Baader Investment conference in Munich
October 13	9M Trading Update
November 2	ZKB Swiss Equity und Real Estate Conference in Zurich
November 14-16	Credit Suisse Equity Forum Switzerland in Zurich
2024
February 29	2023 Full-year results in Zurich
April 15	3M Trading Update
April 17	Annual General Meeting in Zurich