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Bystronic AG Investor Presentation 2021
848_ip_2021-09-16_d0006389-95fd-497f-9fe4-fad7b57aa9e2.pdf
Investor Presentation
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Bystronic
Competence Center Curling
Investor presentation
UBS Best of Switzerland Conference 2021 – Sept 17, 2021
Investor presentation
© Bystronic | September 2021
Disclaimer
The information in this presentation about the business performance of the Bystronic Group is of a summary nature only. The information published in the Annual Report 2020 of Conzzeta AG, the company that preceded Bystronic AG until the end of April 2021, the half-year report 2021 of Bystronic AG and the information on the website www.bystronic.com prevails.
Although the greatest possible care was taken with the preparation of the presentation, Bystronic takes no responsibility for its completeness or correctness. Unless otherwise specified, the figures are based on the annual report for 2020 of Conzzeta AG, the company that preceded Bystronic AG, and on the half-year report for 2021 of Bystronic AG.
The presentation also contains statements about expected future financial and operational developments which are based on subjective assessments. No assurance can be given that those expectations will be achieved. Any liability for loss or damage arising directly or indirectly from the information in this presentation is expressly excluded.
Investor presentation
© Bystronic | September 2021
Investor presentation
Agenda
Who we are
Alex Waser, Group CEO
Strategy 2025
Alex Waser, Group CEO
H1 2021 highlights
Beat Neukom, Group CFO
Outlook 2021
Alex Waser, Group CEO
Q&A
Alex Waser, Group CEO
Beat Neukom, Group CFO
Appendix
Investor presentation
© Bystronic | September 2021
Who we are
A pioneer in Sheet Metal processing with world-class products, solutions and services
Founded
1986
Best choice.
Net sales FY 2019
935.8
2020: 801.4
CHF million
Employees
3,357
globally
per June 30, 2021
Locations
9
development and production sites, 31 sales and service subsidiaries
Innovation
~50%
sales with products on market for less than three years
Ticker symbol
SIX: BYS
listed since May 3, 2021
From 1994 until April 2021 Bystronic was part of Conzzeta AG. With the transformation of the Group, focusing on the Bystronic sheet metal processing business unit and disposal of all other activities per June 30, 2021, Bystronic is now a pure-play company with a clear and attractive growth strategy for the future.
Investor presentation
© Bystronic | September 2021
Who we are
Our heritage: we pioneered with machines for cutting and bending
Gold segment
Silver segment
Expansion into bronze segment
Production cells
Heritage
- Hardware focus
- Single machine focus
- Incomplete software offerings
- Service as an add on
- Service as "fire fighting"
- Single customer projects
- Limited modularity
- Limited regionalization
- "One size fits all" approach
Investor presentation
© Bystronic | September 2021
Who we are
Our opportunities: new competencies – new skills – new solutions
Opportunities
- Hardware & software focused
- Software based solutions
- Service as a business
- Recurring revenues
- One stop shop
- Global standardization
- Configurable modules
- Regionalization
- Segment focus
Smart factory suite
Integrated material and data flow, efficient handling
10101
00110
11001
KURAG
Investor presentation
© Bystronic | September 2021
Strategy 2025
Innovation leadership with an asset light business model
Our combined offering of
- state of the art equipment,
- leading-edge solutions and
- comprehensive services
enable our clients to become
- more efficient and
- more productive ...
- ...while reducing their environmental footprint
Advanced laser technologies
Future technologies
Efficient bending and robotics
World-class manufacturing
Easy-to-use software
Worldwide serviceability
Investor presentation
© Bystronic | September 2021
Strategy 2025
Accelerating cleantech solutions
Energy efficient lasers
- 40% increase in energy efficiency from C02 lasers → fiber laser technology
Energy saving bending
- Energy-Saver function (Start-Stop)
Nitrogen generation
- Zero-Carbon in-house nitrogen generation incl. PV systems
- Cost reduction & carbon neutral solution
- Supporting clients with green financing
Intelligent software
- Waste reduction
- Nesting optimization
- Optimized workflows
Re-Manufacturing
- Bystronic pre-owend program
- Reuse, reduce, recycle
- Circular economy
Investor presentation
© Bystronic | September 2021
Strategy 2025
Accelerating ESG – delivering on our roadmap for impact
Conducted SDG alignment
Forward-looking
Materiality Matrix aligned
with Strategy 2025
S&P Global
Conducted S&P 500 corporate sustainability assessment / defining ESG KPIs & targets in H2
CDP
DISCLOSURE INSIGHT ACTION
CDP reporting
1st CDP as BYS
1st Bystronic sustainability report for 2021 on track
Investor presentation
© Bystronic | September 2021
Strategy 2025
Our business profile in market context – share of ~12% in served machine market
Established and new competition
- Competitive landscape dynamic and increasingly fragmented, particularly from new players in fiber laser entry level segment
Opportunities in innovative hardware
- Line extensions in cutting & bending; high-performance cutting with more high-tech integration & customization features
Secular trend towards smart factory solutions & services
- Growing focus on systems for enhanced client productivity through E2E automation and solutions that yield more stable revenue streams
Estimated market size (2019; CHF bn)
Investor presentation
© Bystronic | September 2021
Strategy 2025
Focus on attractive market segments with an improved understanding of end markets
Prioritized segments based on accessibility and attractiveness
Own analysis and estimates; note: numbers do not add up to 100% due to overlapping categories
Investor presentation
© Bystronic | September 2021
Strategy 2025
Growth potential in the 2D laser cutting market
2D cutting market segment $>1\mathrm{kW}$ laser power
Investor presentation
© Bystronic | September 2021
Strategy 2025
Our mid term targets until 2025
| Growth | Profitability |
|---|---|
| Over 5% growth in net sales | |
| based on 2019 figures, | |
| CHF 1.3b by 2025 | EBIT margin over 12% |
| Services | Capital Efficiency |
| 26% of net sales | |
| compared to 19% in 2019 | Over 25% return on net operating assets (RONOA) |
Investor presentation
© Bystronic | September 2021
Investor presentation
H1 2021 highlights
Who we are
Alex Waser, Group CEO
Strategy 2025
Alex Waser, Group CEO
H1 2021 highlights
Beat Neukom, Group CFO
Outlook 2021
Alex Waser, Group CEO
Q&A
Alex Waser, Group CEO
Beat Neukom, Group CFO
Appendix
Investor presentation
© Bystronic | September 2021
H1 2021 highlights
Transformation concluded – delivering on our Strategy 2025
Pure play positioning
- Listing May 3, 2021
- SIX:BYS
Transformation concluded
- FoamPartner closed in March
- Mammut closed in June
Avanti
Bystronic
Strategy 2025
Deliver to promise
- Regional structure in place
- Service business growth
- Automation solutions
- Smart Factory Solutions
Investor presentation
© Bystronic | September 2021
H1 2021 highlights
Delivering on strategy execution
KURAG
Bystronic USA
- Brand Experience Center
- Smart Factory
- Local production
Service growth
- Nearly all customers buy Bystronic machines with service package
- Hiring 100 service technicians
- 23% of net sales
Software / Smart Factory
- Acquired software specialist Kurago
- Accelerate launch of Smart Factory Solutions
Investor presentation
© Bystronic | September 2021
H1 2021 highlights
Key figures continuing operations: broad based positive performance
CHF million
| Order intake | Net sales | EBIT |
|---|---|---|
| 549.5 | ||
| +62.8% 1) / +27.6% 2) | 440.7 | |
| +19.2% 1) / +4.4% 2) | 30.3 | |
| margin 6.9% / adj. margin 8.0% |
- Partially driven by catch-up effects due to the pandemic
- Broad based in all regions
- Bystronic USA fully operational
- Resumption of trade fairs in some regions also driving increased customer demand
-
Increased demand for automation
-
Double-digit sales growth in all regions
- Solid development of service business, now at 22.9% of sales (H1 2020: 19.9%)
-
Supply chain constraints posing certain challenges
-
Positive contribution of higher sales volumes
- Transportation constraints
- Higher PEX (service hirings)
- Impacts from higher material costs mitigated by regional set-up and local sourcing
- Adjusted margin excludes one-off costs in connection with the transformation of the Group
1) At constant exchange rates
2) At constant exchange rates vs. H1 2019
Investor presentation
© Bystronic | September 2021
H1 2021 highlights
Strong regional growth for continuing operations
Investor presentation
© Bystronic | September 2021
18
Americas
Order intake +92%
Net sales +19%
Net sales per region
10%
48%
25%
EMEA
American
China
APAC
EMEA
Order intake +53%
Net sales +13%
China
Order intake +62%
Net sales +44%
APAC
Order intake +44%
Net sales +17%
Net sales by product (in CHF million)
4.627
4.627
4.627
4.627
4.627
Machine
Services
H1 2021 highlights
Financial key figures continuing operations & total group
| CHF million | Continuing operations | Total Group | |||
|---|---|---|---|---|---|
| H1 2021 | H1 2020 | Change | H1 2021 | H1 2020 | |
| Order intake | 549.5 | 340.2 | 61.5% | ||
| Increase compared to prior year at constant exchange rates | 62.8% | ||||
| Net sales | 440.7 | 372.5 | 18.3% | 624.3 | 576.2 |
| Increase compared to prior year at constant exchange rates | 19.2% | ||||
| Operating result (EBIT) 1) | 30.3 | 23.4 | 29.6% | -55.2 | 49.9 |
| in % of net sales | 6.9% | 6.3% | -8.8% | 8.7% | |
| Net result | 23.3 | 16.6 | 40.4% | -60.9 | 46.6 |
| in % of net sales | 5.3% | 4.5% | -9.7% | 8.1% | |
| Earnings per class A share, in CHF | 11.19 | 7.45 | 50.2% | -29.50 | 21.96 |
| Operating free cash flow | 19.7 | -24.4 | nm | ||
| CAPEX | 7.7 | 6.8 | 13.2% | ||
| Net operating assets (NOA) | 234.9 | 290.3 | -19.1% | ||
| Return on net operating assets (RONOA) | 20.0% | 12.8% | -720 bp | ||
| Total equity | 804.4 | 834.0 | -3.5% | ||
| Equity ratio (%) | 69.2 | 72.2 | -300 bp | ||
| Number of employees as of reporting date | 3,357 | 3,043 | 10.3% |
1) Total Group H1 2021 including divestment loss of CHF -78.5 million from sale of FoamPartner and in H1 2020 including CHF 48.1 million divestment gain from sale of Schmid Rhyner
Investor presentation
© Bystronic | September 2021
H1 2021 highlights
Strong balance sheet
CHF million
Cash, cash equivalents & securities
Others
Net Operating Assets
Discontinued operations
Net Operating Assets
Continuing operations
| 273.3 | 480.8 |
|---|---|
| 15.0 | |
| 276.4 | 8.4 |
| 80.3 | |
| 231.4 | 234.9 |
FCF from continued operations (+20)
Others incl. discont. operations (-11)
Dividends (-124)
Proceeds from divestments (+323)
No interim dividend in 2021
Deferred payment FoamPartner (20)
Vendor loan Mammut (60)
Earn-out Mammut (0)
Trade receivables (+22)
Inventories (+56)
Advances from customers (-39)
Trade payables (-27)
Accrued expenses (-15)
Investor presentation
© Bystronic | September 2021
Investor presentation
Outlook 2021
Who we are
Alex Waser, Group CEO
Strategy 2025
Alex Waser, Group CEO
H1 2021 highlights
Beat Neukom, Group CFO
Outlook 2021
Alex Waser, Group CEO
Q&A
Alex Waser, Group CEO
Beat Neukom, Group CFO
Appendix
Investor presentation
© Bystronic | September 2021
Outlook 2021
On track to reach our 2025 financial aspiration
Net sales growth
~15%
EBIT margin
8-9%
- Continuation of positive business developments in H2 2021
- Onboarded service technicians trained and will become productive in H2 2021
- Increased demand for automation
- Procurement situation not accentuated
- Stable inflation rates
Investor presentation
© Bystronic | September 2021
Investor presentation
Q&A
Who we are
Alex Waser, Group CEO
Strategy 2025
Alex Waser, Group CEO
H1 2021 highlights
Beat Neukom, Group CFO
Outlook 2021
Alex Waser, Group CEO
Q&A
Alex Waser, Group CEO
Beat Neukom, Group CFO
Appendix
Investor presentation
© Bystronic | September 2021
23
Q&A
We are happy to answer your questions
Q&A
© Bystronic | September 2021 06.08.2021
Appendix
Financial calendar
| 2021/22 | ||
|---|---|---|
| Sept 16, 2021 | Investora conference | Investora |
| Sept 17, 2021 | UBS Best of Switzerland conference | UBS |
| Oct 15, 2021 | Trading update | Bystronic |
| Nov 4, 2021 | ZKB Swiss Equities conference | ZKB |
| Nov 19, 2021 | CS Equity Forum Switzerland | Credit Suisse |
| Nov 30, 2021 | Capital Markets Day | Bystronic |
| March 15, 2022 | Full-year 2021 results | Bystronic |
| April 14, 2022 | Trading update | Bystronic |
| April 26, 2022 | AGM | Bystronic |
Investor presentation
© Bystronic | September 2021
25
Appendix
Bystronic investor relations and media contacts
Beat Neukom
Chief Financial Officer
joined Bystronic in May 2021
Contact:
[email protected]
+41 62 956 40 79
Doris Rudischhauser
Investor Relations Advisor
joined Bystronic in April 2021
as external advisor ad interim
Contact:
[email protected]
+41 79 410 81 88
Patrizia Meier
Investor Relations Officer
joins Bystronic in October 2021
Contact:
[email protected]
+41 62 956 33 95
Michael Präger
Chief Communications & ESG Officer
joined Bystronic in March 2021
Contact:
[email protected]
+41 79 870 01 43
For additional information, please also refer to our website: https://ir.bystronic.com/en/
Investor presentation
© Bystronic | September 2021
Appendix
Group transformation completed - significant impacts on presentation of H1 2021 financial statements
Schmid Rhyner (Feb 28, 2020)
- 2 months in H1 2020
- Significant positive impact on H1 2020 results from divestment gain
FoamPartner (Mar 31, 2021)
- Full Year 2020; 3 months in H1 2021
- Goodwill recycling with a significant negative impact on consolidated results
Mammut (Jun 30, 2021)
- Full Year 2020; 6 months in H1 2021
- Divestment with a break-even impact on H1 2021 results
Cash inflow in H1 2021 of CHF 322.7 million from FoamPartner and Mammut divestments
Deconsolidation of discontinued operations
Investor presentation
© Bystronic | September 2021
Investor presentation
© Bystronic | September 2021
Appendix
H1 2021 operating result (EBIT) for continuing operations increased by 30%
CHF million
H1 2020 EBIT
Discontinued / continuing operations H1 2020 adjusted
Volume and product mix
Personnel expenses
Operating expenses, other operating income & depreciation / amortization
FX translation
Discontinued / continuing operations H1 2021 adjusted
H1 2021 EBIT
28
Appendix
H1 2021 cash flow development: Cash, cash equivalent & securities reached CHF 481 million at June 30, 2021
Investor presentation
© Bystronic | September 2021
29