2016 orders received & sales - rieter - rieter orders received & sales rieter group – key...
TRANSCRIPT
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. . . . . . . . . . . . . . . . . . . . . . . . . Dr. Norbert Klapper, Group CEO
Joris Gröflin, Group CFO
2016 Orders Received & Sales Analysts Presentation, February 1, 2017
2016 Orders received & sales
Rieter Group – key messages
2
Financial year 2016
• Order intake grows by 13% thanks to a good first half year
• Sales of CHF 945 million following a stronger second half year ‒ full year
below previous year as expected
• EBIT margin of 6% and net profit of 4.5% of sales expected for 2016
• Reorganization of the Ingolstadt site
2016 Orders received & sales 3
Agenda
1. Orders received & sales 2016 Joris Gröflin
2. Profit outlook 2016 Dr. Norbert Klapper
3. Strategic focus Dr. Norbert Klapper
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2016 Orders received & sales 4
Sales by business group
mCHF
Sales at 945 million CHF following a stronger second half year
195 200
140 142
702603
1.100
1.000
900
800
700
600
500
400
300
200
100
0
-9%
2016
945
2015
1.037
Components After Sales Machines & Systems
71 71
257346
91109
1.000
500
1.100
400
900
300
200
100
0
600
700
800
+16%
HY2 2016
508
HY1 2016
437
mCHF
2016 Orders received & sales 5
Change in sales and currency impact
Sales impacted mostly by volume and price
mCHF Machines &
Systems After Sales Components
Rieter
Group
Sales 2015 702.3 139.8 194.7 1‘036.8
Volume and price -75.2 1.2 2.9 -71.1
Currency translation -6.2 0.6 2.4 -3.2
Divestments -17.5 -17.5
Sales 2016 603.4 141.6 200.0 945.0
2016 Orders received & sales 6
Sales development by region
Growth in China and India ‒ solid demand from Asian countries
*) Not including China, India and Turkey
140 187
20187
324 286
182142
119144
60
400
300
200
100
0
900
800
700
600
500
1.000
1.100
Asian
countries*
41 Europe
Africa
2015
1’037
2016
945
43
27
Turkey
China
Americas
India
• Asian countries with sales of 286.3 million CHF
(-12% against 2015)
• China sales of 186.5 million CHF (+33% against
2015) of which 53% to Xinjiang province
• Indian sales of 182.1 million CHF (+28% over
previous year’s level)
• Turkey with 119.4 million CHF sales (-17% against
2015)
• Americas at 86.6 million CHF (-57% against 2015
after delivery of large orders booked in 2014)
• Africa with 43.2 million CHF (+62% against 2015)
• Europe with 40.9 million CHF sales (-32% lower
than 2015 mainly due to divestment of Schaltag)
• Share of sales to Asia at 82% (2015: 72%)
mCHF
2016 Orders received & sales 7
Orders by business group
553
Increase of orders in 2016 by 13%
222
• Order intake amounted to 905.2 million CHF (2015:
801.6 million CHF)
• Strong demand in the first half year (510.7 million
CHF) and mixed dynamics in the individual
countries and product categories in the second half
year (394.5 million CHF)
• Business Group Machines & Systems received
591.6 million CHF orders (+29% vs. 2015). Lower
demand in the second half year driven by political
uncertainties in main markets Turkey and India
• Business Group After Sales with 135.2 million CHF
orders (+7% vs. 2015). Growth achieved in spare
parts, services and installation of new machines
• Business Group Components with 178.4 million
CHF orders (-18% vs. 2015). Compared to
exceptionally strong 2015, lower demand recorded
from customers in China and India
• Order backlog at year-end at around 440 million
CHF
218 178
126135
458592
1.100
1.000
900
800
700
600
500
400
300
200
100
0
+13%
2016
905
2015
802
Components
After Sales
Machines & Systems
mCHF
2016 Orders received & sales 8
Agenda
1. Orders received and sales 2016 Joris Gröflin
2. Profit outlook 2016 Dr. Norbert Klapper
3. Strategic focus Dr. Norbert Klapper
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2016 Orders received & sales
Profit outlook 2016
9
• Rieter expects to achieve an EBIT margin of 6% and net profit of 4.5% of sales
in the 2016 financial year.
• Rieter’s full annual financial statements for 2016 and the annual report will be
published on March 14, 2017, at the results press conference and presentation
to analysts in Winterthur.
• The Annual General Meeting will be held on April 5, 2017.
2016 Orders received & sales 10
Agenda
1. Orders received and sales 2016 Joris Gröflin
2. Profit outlook 2016 Dr. Norbert Klapper
3. Strategic focus Dr. Norbert Klapper
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2016 Orders received & sales 11
Strategic focus – mid-term targets
Sales Sales Sales growth above market Sales growth above market
~10% ~10%
~14% ~14%
Target pay-out ratio of at least
40% of net profits
Target pay-out ratio of at least
40% of net profits
EBIT margin1) EBIT margin1)
RONA2) RONA2)
Dividend policy Dividend policy
1) At sales of ~1.3 CHF bn 2) RONA is calculated as net result before interest costs and write-off of financial assets divided by net assets excl. financial debt
2016 Orders received & sales
Reorganization of Ingolstadt site, Germany
12
• At the lngolstadt site, Rieter intends to focus on the development of machines and the provision of
technical support for the after-sales business. Production shall be transferred to Rieter's Usti site in the
Czech Republic. By this means, Rieter intends to increase its competitiveness and conclude the
reorganization of production, which is a consequence of the capacity build-up in China and India.
• Spare parts logistics shall be awarded to a service provider within the framework of a European
solution. With this step, Rieter aims to achieve a significant reduction in delivery times and create the
conditions for further growth. Order processing for spare parts shall be concentrated at the Winterthur
site.
• The development of machines and technical support for the after-sales business, which remain in
Ingolstadt, are to be housed in a new building, which will provide optimal support for the development
work and cooperation between the two areas.
• The concept envisages the reduction of around 220 jobs at the Ingolstadt site. At the end of December
2016, Rieter had 360 employees in Ingolstadt.
• Once the measures are complete at all affected sites, a cost reduction of CHF 15-20 million is
expected from 2019. Rieter anticipates that one-off expenditure in the mid-double-digit million range
will be required for implementation purposes over the next two years.
• The consultation process with the employees' representatives will begin shortly. Rieter will provide
information about the outcome at the appropriate time.
2016 Orders received & sales
Disclaimer
13
Rieter is making great efforts to include accurate and up-to-date information in this document,
however we make no representations or warranties, expressed or implied, as to the accuracy or
completeness of the information provided in this document and we disclaim any liability
whatsoever for the use of it.
The information provided in this document is not intended nor may be construed as an offer or
solicitation for the purchase or disposal, trading or any transaction in any Rieter securities.
Investors must not rely on this information for investment decisions.
All statements in this report which do not reflect historical facts are forecasts for the future which
offer no guarantee whatsoever with respect to future performance; they embody risks and
uncertainties which include – but are not confined to – future global economic conditions,
exchange rates, legal provisions, market conditions, activities by competitors and other factors
outside the company's control.
The 2016 figures have not yet been audited.
2016 Orders received & sales 14
Appendix
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2016 Orders received & sales 15
Values and principles
2016 Orders received & sales 16
Key data per share
Rieter registered shares of 5 CHF nominal value
Bloomberg: RIEN SW; Thompson Reuters: RIEN.S 31.12.2016 30.06.2016 31.12.2015
Shares outstanding excl. own shares
(end of period) 4‘515‘015 4‘518‘063 4‘511‘075
Average shares (of period) 4‘515‘861 4‘515‘519 4‘550‘650
Share price (end of period) CHF 177.10 199.40 188.00
Market capitalization
(end of period) mCHF 800 901 848
2016 Orders received & sales 17
Orders by business group and half-year
553
Strong first half year in 2016
222
mCHF
98 120 96 82
6561
7164
226232
343
248
0
50
100
150
200
250
300
350
400
450
500
550
600
HY2 2016
413
HY1 2015
388 394
HY1 2016
511
HY2 2015
Components
After Sales
Machines & Systems
2016 Orders received & sales 18
Sales development by region and half-year
Growth in India and Turkey in second half year 2016
*) Not including China, India and Turkey
mCHF
177147
6278
10581
7270
82101
8262
88
38
109
91
41
134152
32
45
41
150
350
400
450
600
300
250
500
550
200
0
50
100
554
Asian
countries*
483
HY1 2015 HY2 2015
11
China
508
Americas
Turkey
437
Europe
HY1 2016
Africa
India
HY2 2016
16
25
15 5
20