08.09.2011 Investor Presentation 1 - Georg Fischer Ltd · PDF fileGF > Maggi Energy efficient products: New membrane valve, ... The presentation contains forward-looking statements

Investor Presentation 108.09.2011

Georg FischerInvestor Presentation

Welcome


Agenda

Outlook and Corporate strategy

Business overview

Consolidated financial statements and financing


GF Piping Systems

34%CHF 1 176 million

GF Automotive

45%CHF 1 552 million

GF AgieCharmilles

21%CHF 721 million

GF - a diversified industrial solutions provider

in % of Corporate sales 2010: CHF 3 447 million


Americas +19%

Asia & Australia +25%

Corporation +24%

Europe +25%

China +27%

Strong sales momentum in the 1st semester 2011 …

Europe

million CHF

Europe

Asia & Australia

China: 12% (12%)

Americas71%(71%)

10%(11%)

19%(18%)


… leading to a leap in performance

� Sales increase of 10% (in LC 24%)

� All 3 Corporate Groups with

double digit growth in LC

� EBIT increased 78% to

CHF 130 million

� EBIT margin of 7.0%

� ROIC lifted to 14.6%.1)

5,000

4,000

3,000

2,000

1,000

0

H1/2011

1,861

2010

3,447

2009

2,906

2008

4,465

2007

4,497

-58

227

326

-100

0

100

200

300

400

H1/2011

130

2010

180

200920082007

million CHF

million CHF

1) Before special charges.


Oasis of the seas

the biggest cruise liner in the world

GF Piping Systems


GF Piping Systems

Business overview

Market Trend:

Position: World #1

Major competitors: Simona, Aliaxis, AGRU

� Market Trend:

Position: Switzerland #1, Leading in selected markets

Major competitors: Aliaxis, Uponor, Geberit, Wavin

Market Trend:

Position: World #1

Major competitors: Aliaxis, Wavin, Uponor

� �

We produce and distribute plastic piping systems for the

safe transport of water, gas and other media worldwide

Building Technology 25%

Utility 34%Industry 41%


� Sales up by 4% (in LC 17%)

� Strong growth in industrial

applications worldwide

GF Piping Systems

Top performance achieved in the 1st Semester 2011


607

1,500

1,000

500

0

H1/20112010

1,176

2009

1,066

2008

1,224

2007

1,096

137122126

0

50

100

150

H1/2011

80

20102009

80

20082007 1)

million CHF

million CHF

� EBIT margin up by 2 percentage

points to 13.2%

� ROIC 20% (against 8.4% WACC)


Domestic Applications

Industrial Applications

ExtractionWater Treatment

Reclamation& Recycling

Water Distribution

GF Piping Systems

Underlying water needs…


New buildings and renovation

Building Services,

Plumbing & Heating

New networks and substitution of metals by plastics

Water & Gas

Distribution

Recycling, Desalination,

Contamination prevention

Water treatment

GF Piping Systems

… support growth


GF Automotive


GF Automotive

Business overview

Market Trend:

Position: Europe # 1

Major competitors: Componenta, Fagor Ederlan, Teksid, INFUN, GMH

� Market Trend:

Position: Europe Top 3

Major competitors: Nemak, Honsel, Montupet, KSM, Kolbenschmidt

�

We develop and produce cast components made of iron,

aluminium and magnesium for the automotive industry

Iron casting 57% Light metal casting 43%



� Truck business on a strong

recovery path

GF Automotive

Plant load clearly increased in the 1st Semester 2011


1)

2,500

2,000

1,500

1,000

500

0

H1/2011

865

2010

1,552

2009

1,261

2008

2,161

2007

2,223

44

-60

132

-100

-50

0

50

100

150

H1/20112010

37

20092008

78

20071)

million CHF

million CHF

� EBIT doubled to CHF 44 million

� EBIT margin doubled to 5.1%

� ROIC increased from 6.6% to

13.4%


million heavy trucks

> 6 tons

GF Automotive

Production in units - market in Europe

1.2

1.0

2007

0.6

0.4

0.2

0.0

24

23

21

20

19

18

17

16

15

14

2006 201120102009200820052004

0.8

2003200220012000

1.6

1.4

0

CAGR 1.4%

Source: J.D. Power (Trucks: Q2/11 – Cars: Q2/11)

CAGR 4.5 %

million passenger cars &

small trucks < 6 tons

22

car truck


� Specialist of chassis and structure parts in magnesium / aluminum

� Light weight solutions in iron castings

through own material development

GF Automotive

Light weight core competence well suited to …


Stringent CO2 emission rules

+

high fuel costs

drives weight reduction needs

Passenger car

Trucks

GF Automotive

… weight reduction needs of customer


GF AgieCharmilles


GF AgieCharmilles

Business overview

Market Trend:

Position: World #1

Major competitors: Sodick, Fanuc, Mitsubishi, Makino

Market Trend:

Position: HSM Top 5

Major competitors: Makino, Hermle, DMG,Röders, Mori Seiki

� Market Trend:

Position: World #1

Major competitors: smaller players in each segment: such as Thermo, bedra, Welo

� Market Trend:

Position: Captive market

��

We provide machines and system solutions to the tool and mold

making industry and to manufacturers of precision parts worldwide

Automation / Tooling 7%

EDM 40% Milling 20% CustomerServices 33%


GF AgieCharmilles

Sharp jump in orders in the 1st semester 2011


721578

1,500

1,000

500

0

H1/2011

389

201020092008

1,080

2007

1,179

12

-81-100

-50

0

50

100

H1/20112010

22

20092008

34

2007

76

1)

million CHF

million CHF


� High backlog for 2nd semester

2011

� Strong growth worldwide,

specially in Europe

� Clearly in the profit zone -

EBIT of CHF 12 million

� EBIT margin of 3.1%

� ROIC 8.9% (against 8.3% WACC)

1)


GF AgieCharmilles

Business Confidence Indicator (Eurozone) confirms

clear upturn

Business Confidence with 6 month time lag

Machine Tool Orders 12 month moving average

MT orders (100=2005)

2001 2002 2003 2004 2007 2008 2009 2010 201120062005

Source: OECD + national associations / USP Consulting + Swissmem


GF AgieCharmilles

China by far the major market

The top 10 machine tool consuming countries

Machine tool consumption mio USD

0

5'000

10'000

15'000

20'000

25'000

30'000

Chi

na

Ger

man

y

Japa

n

Korea

Italy

USA

Indi

a

Brazi

l *

Rus

sia

Mex

ico

2005 2006 2007 2008 2009 (rev) 2010 (est)

mio USD

Source: Gardner Report 2011


EDM

Electric Discharge Machining

HSM

High Speed Milling

GF AgieCharmilles

Core EDM and HSM expertise well suited to …


Increased demand for medical and aeronautic parts boosts 5-axis machining (HSM)

Medical

Miniaturization in the electronics industry drives need for high precision machining

Electronics / ICT

GF AgieCharmilles

… rising high precision needs

Source pictures: shutterstock


Georg Fischer Corporation

We apply sustainability in our own facilities…

Examples of environmental targets� Improve energy efficiency in production at

least 10% by end 2015� Reduce CO2 emission from production at

least 20% by end 2015� Increase material efficiency in production

at least 10% by weight by end 2015

Implementation� Energy efficiency: New sand casting,

Mettmann

� Reduce CO2 emissions: Heat recovery in Singen

GF > Maggi

� Energy efficient products: New membrane valve,

light weight construction,

efficient machines / gene-

rators



… and contribute to our customers environmental

needs through our offering

Water and energy conservation

Vehicle weight reduction

High precision manufacturing


Agenda

Business overview





Income statement

-14-76-65Depreciation, amortization

31149195EBITDA

--1Result of investment properties

--19-19Financial result

1244192Net profit

54-13-20Income taxes

7873130EBIT

-1-460-456Personnel expenses

7609651Gross value added

101 6911 861Sales

∆

in %

1st Sem.

2010

1st Sem.2011

million CHF



Currency impacts by Corporate Groups

-28-51EBIT Corporation

-67-24GF AgieCharmilles

-16-52GF AgieCharmilles

-15-8GF Automotive

-19-19GF Piping Systems

-14-243Sales Corporation

-15-116GF Automotive

-13-75GF Piping Systems

in %in million CHF

1st Sem. 2011



Free cash flow

6166Other non-interest-bearing liabilities

-21-40Income taxes / interest paid

-6-54Free cash flow

-35-41Cash flow from investing activities

-35-41Additions to property, plant and equipment

29-13Cash flow from operating activities

-388Other changes

-12-13Other accounts receivable

-110-229Changes in net working capital

149195EBITDA

1st Sem.

2010

1st Sem.2011

million CHF



Key figures

1710∆ Sales in %

3639Equity ratio in %

7.214.6ROIC in %

716Return on equity in %

272285Sales per employee [thousand CHF]

12 42313 220Number of employees (incl. trainees)

921Earnings / loss per share (EPS)

2.44.9Net profit in % of sales

4.37.0Return on Sales (EBIT margin) in %

2324∆ Sales in LC in % (organic growth)

1st Sem.

2010

1st Sem. 2011


Agenda

Business overview





Outlook 2011 and Targets 2012

� Result in the 2nd semester 2011 in the same broad range as in the 1st semester 2011

� Targets for 2012 confirmed (ROS 8%, ROIC 15%)

Assuming stabilized exchange rates



Strategy 2015: focus on performance and cyclicity reduction



Disclaimer

This document is for presentation

purposes only and should not be

construed as an offer, invitation or

solicitation to subscribe for, purchase

or sell any investment. Neither it nor

anything it contains shall form the

basis of any contract whatsoever.

Opinions expressed herein reflect the

current judgement of the management

of Georg Fischer. The presentation

contains forward-looking statements

that involve risks and uncertainties. The

actual results of Georg Fischer may

differ materially from those anticipated

in these forward-looking statements

and forecasts as a result of a number

of factors.

The management of Georg Fischer

does not accept any liability whatsoever

with respect to the use of this

presentation.

Documents

08.09.2011 Investor Presentation 1 - Georg Fischer Ltd · PDF fileGF > Maggi Energy efficient products: New membrane valve, ... The presentation contains forward-looking statements