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Financial Year 2024 Media and analyst conference – 27 February 2025 Feintool International Holding AG
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AGENDA THURSDAY, 27. FEBRUARY 2025 Feintool media and analyst conference – 27. February 2025 1 08.30 Reception and Coffee 09.00 Welcome Year in Review Financial Results Outlook 10.00 Questions & Answers 10.30 – 11.30 Apéro and Networking Karin Labhart, CCO Torsten Greiner, CEO Thomas Erne, CFO Torsten Greiner, CEO All All
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YEAR IN REVIEW Feintool media and analyst conference – 27. February 2025 2
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DIFFICULT SITUATION IN EUROPE (SWISS AND GERMAN MEDIA) Feintool media and analyst conference – 27. February 2025 3
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THE FEINTOOL YEAR 2024 Good business in Asia: high profitability; expansion into India; Japan and China as growth drivers Record sales in the US with good profitability; capacity expansion European markets under significant pressure; consolidation started Due to weak development in Europe, sales fell to CHF 720 million (-15.1%) Operating EBIT excluding one-off effects was slightly negative (CHF -2.2 million), including restructuring costs at CHF -49.3 million Feintool media and analyst conference – 27. February 2025 4 Cost reduction in Europe, growth future business The expanded forming plant in Nashville, USA.
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EUROPE Feintool is seeing a strong impact from the ongoing uncertainty regarding e-motors In addition, there is a continuing baisse in industrial business Result: sharp decrease in sales in Europe Immediate action with cost reduction programs Sustainable improvement of competitiveness; European manufacturing footprint is continuously reviewed and strategically adapted. Two restructuring projects launched Feintool media and analyst conference – 27. February 2025 5 Very challenging situation, cost reduction initiated Our state-of-the-art plant for e-motor cores in Tokod (HU).
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Feintool media and analyst conference – 27. February 2025 6 THE FUTURE OF LYSS (CH) AND MOST (CZ) Feintool Service Parts (Lyss) Competence Center Hydrogen (Lyss) High-volume production to be relocated from Lyss to Most by 2025 Competence Center Fineblanking (Lyss) incl. toolmaking Headquarters remain in Lyss Target 2026
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Feintool media and analyst conference – 27. February 2025 7 THE FUTURE OF EUROPEAN MANUFACTURING OF E-MOTOR CORES Feintool Jessen specialized Focus on industrial applications Feintool Vaihingen expansion Management of Business Unit Competence Center R&D, Engineering, Toolmaking Highly automated automotive production Feintool Tokod (HU) expansion Higher utilization and profitability High competitiveness Feintool Sachsenheim closing Relocation of production and systems to Tokod and Vaihingen We are planning to keep 250 of 450 jobs in the region Target 2027
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SYSTEM PARTS USA Feintool media and analyst conference – 27. February 2025 8 Feintool USA secured new orders and gained market share Several new programs are planned to start production in 2025 Production of new orders ensured by the expansion of Nashville plant North America offers lucrative market opportunities thanks to strong demand for high-volume parts for combustion and hybrid drives Record sales with good profitability; market share increase New Head of Business Unit USA: Rick Bachman
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SYSTEM PARTS ASIA Strong business performance, excellent profitability India expansion with new plant in Pune progressing, groundbreaking done, SOP early 2026 Successful year in Japan: new high-volume order for seat adjuster components received thanks to very good customer relationships, Tokoname plant being expanded In China, the rollout of the production of stators and rotors for electric motors continued. Major order for ready-to-install bipolar plates for fuel cells started production Feintool media and analyst conference – 27. February 2025 9 Expansion to India, Strong business in Japan and China
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Feintool media and analyst conference – 27. February 2025 10 FINANCIAL RESULTS
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Feintool media and analyst conference – 27. February 2025 11 SALES Europe's weak demand has a significant impact on sales 0 100 200 300 400 500 600 700 800 900 Sales 2023 IFRS 14,6 System Parts US 0,1 System Parts Asia -143,9 System Parts Europe 1,1 Finance/IC Sales 2024 IFRS 847,7 719,6 in mio. CHF Growth 0.2% ex FX 4.6% Growth 8.1% ex FX 10.0% Growth -24.8% ex FX -23.3% Growth -15.1% ex FX -13.3%
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SALES BY APPLICATION 2024 Feintool media and analyst conference – 27. February 2025 12 The area of stamping motor core (main drives) contributes 10% of Group sales The decrease in demand for electric vehicles is reflected in lower call-offs The share of non-automotive sales is 16% 10% 2% 13% 3% 53% 19% Stamping automotive main drive (incl. hybrid) Stamping automotive (not main drive) Stamping non-automotive (industry) Fineblanking/Forming non-automotive (industry) Fineblanking/Forming automotive - ICE (incl. hybrid) Fineblanking/Forming automotive - Non-ICE
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EBITDA - RECONCILIATION 2023 TO 2024 (EXCLUDING ONE-OFF EFFECTS) The EBITDA margin is 7.2% due to sales in mio. CHF Margin 9.9% Margin 10.4% Margin 18.4% Margin 7.0% Margin 7.2% 13 0 10 20 30 40 50 60 70 80 90 EBITDA 2023 IFRS -2,5 System Parts US -1,2 System Parts Asia -25,1 System Parts Europa -3,5 Finance/IC EBITDA 2024 84,0 51,9 Feintool media and analyst conference – 27. February 2025
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EBIT - RECONCILIATION 2023 TO 2024 (EXCLUDING ONE-OFF EFFECTS) The sharp drop in sales could not be fully compensated -5 0 5 10 15 20 25 30 EBIT 2023 IFRS -2,5 System Parts US -0,9 System Parts Asia -25,1 System Parts Europe -3,6 Finance/IC EBIT 2024 29,9 -2,2 in mio. CHF Margin 3.5% Margin 5.2% Margin 9.2% Margin -1.1% Margin -0.3% 14Feintool media and analyst conference – 27. February 2025
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GROUP RESULT 2024 Feintool media and analyst conference – 27. February 2025 15 The restructuring measures in Switzerland and Germany had a negative impact of MCHF 47.1 on the result The expected cost savings after implementation of the measures amount to 20-25 mCHF per year The one-off effects are an investment in the future of Feintool in mio. CHF -60 -55 -50 -45 -40 -35 -30 -25 -20 -15 -10 -5 0 EBIT -47,1 one-off effects -49,3 EBIT IFRS -7,9 Financial result 12,5 Tax Net profit -2,2 -44,7
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BALANCE SHEET Feintool media and analyst conference – 27. February 2025 16 Total assets increased slightly to CHF 810.7 million (December 31, 2023: CHF 807.9 million) Total assets remain at a similar level to the previous year 31.12.2024 31.12.2023 Difference in m CHF in m CHF in m CHF Cash and cash equivalents 77.1 82.2 -5.1 Trade and other receivables 103.6 101.0 2.6 Inventories and net contract assets 106.7 114.1 -7.4 Prepaid expenses and accrued income 5.4 4.8 0.6 Total current assets 292.7 302.1 -9.3 Property, plant and equipment 365.0 361.3 3.7 Other non-current assets 152.9 144.5 8.4 Total non-current assets 517.9 505.8 12.2 Total Assets 810.7 807.9 2.8 Assets
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BALANCE SHEET Equity decreased to CHF 451.6 million. Equity ratio still solid at 55.7 Net debt increased to CHF 42.7 million Continued solid balance sheet and healthy equity 17Feintool media and analyst conference – 27. February 2025 31.12.2024 31.12.2023 Difference in m CHF in m CHF in m CHF Financial liabilities 119.7 106.4 13.3 Other liabilities 239.4 213.3 26.1 Shareholder's equity 451.6 488.2 -36.6 Total Liabilities 810.7 807.9 2.8 Equity ratio 55.7% 60.4% -4.7% Net debt 42.7 24.2 18.5 Liabilities
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EQUITY Positive impact from currency effects (MCHF 17.6) and negative impact from the consolidated loss of CHF 44.7 million. Solid equity ratio of around 55.7% in Mio. CHF 430 440 450 460 470 480 490 420 0 10 20 IAS 19 -44,7 0,0 Others 31.12.2024Dividend -5,0 31.12.2023 17,6 FX -4,5 488,2 451,6 Net income 18Feintool media and analyst conference – 27. February 2025
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CASH FLOW Positive free cash flow due to optimized net working capital and reduced capital expenditures Cash and available credit lines of CHF 214.5 million confirmed Feintool media and analyst conference – 27. February 2025 19 A positive cash flow was generated despite a sharp decline in sales in Mio. CHF 0 10 20 30 40 50 60 70 op. CF before NWC 17,8 Change NWC -55,9 CF Invest FCF 42,5 4,4
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OUTLOOK Feintool media and analyst conference – 27. February 2025 20
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Feintool media and analyst conference – 27. February 2025 21 ALL ELECTRIC VEHICLES - MARKET SHARE 2030 Feintool assumes market share of 36% which is the mid range of the forecasts As of July 2024, GlobalData February 2025 Average of forecasts: 40% Feintool assumption: 36%
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Precision components for automotive and industry markets Industrial Motors Linear motors Servo motors Drive motors Air movement Wind and Hydro Energy Pumps Air blowers Ventilation Axial/radial ventilators Wind turbines Hydro-energy turbines Centrifugal pumps Water pumps Dry pumps Heat pumps Automotive Industrial WIDE-RANGING PRODUCT PORTFOLIO Renewable energy Feintool media and analyst conference – 27. February 2025 22
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GLOBAL CAR PRODUCTION Feintool media and analyst conference – 27. February 2025 Growth in car production, recovery of pre-pandemic level in 2026: CAGR +1,5 % (2024-2030) Trend towards all electric vehicles decreased but continuously ongoing: CAGR +18 % (2024-2030) More than one in three vehicles produced worldwide might be all electric in 2030 Continuous growth, transformation slowed down 2023: 76 Mio. vehicles with ICE Number of vehicles produced up to 3.5 t total weight, worldwide Source: GlobalData February 2025 CAGR +1,5% 23 Internal combustion engine (ICE) Hybrid (ICE + EM) All electric drive (battery, fuel cell) Quantity (Mio.)
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MARKET FORECAST AS OF FEBRUARY 2025 - REGIONAL SITUATIONS Trend towards BEVs slowing down in the midterm, but still continuing. Largest global share of e-vehicles expected in 2030 (approx. 10 million BEV) Hybrids will gain a dominant market share by 2028 Currently pressure on OEMs to increase BEV sales (CO2 fleet targets, penalties) EU regulations could be changed (CO2 limits, penalties, “2035 ban on combustion engines”) Trend towards BEVs stable. World's highest production volume for e-vehicles in 2030 (13 million BEVs) Hybrids will have a relevant market share Differences in the market between urban and rural regions No major changes expected from the government Technological change will happen, but much more slowly than in Europe and China. One in three cars could be all electric by 2030 (5 million BEVs per year) Growing market share of hybrids, many new models Regulatory changes by the new US government will have a significant impact on the share of BEVs (not fully taken into account in the current market forecast). Feintool media and analyst conference – 27. February 2025 53% 28% 19% 44% 25% 31% 24 34% 29% 37% Nur ICE Hybride BEV/FCEV (fully electric) Vehicles < 3,5t
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OUTLOOK WIND TURBINES - GLOBAL Rising demand for wind turbines driven by the expansion of renewable energy generation (replacement of fossil energy sources, CO2 targets in accordance with the Paris Climate Agreement) Increasing expansion of wind energy both offshore and onshore In addition to expansion: growing demand for replacement of existing older wind turbines (repowering) Feintool media and analyst conference – 27. February 2025 Source: GlobalData December 2024 Increasing demand for wind turbine generators 25 CAGR +9% Capacity of newly installed wind energy turbines [GW]
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MARKET FORECAST FOR FUEL CELLS & ELECTROLYZERS - GLOBAL Different market trends for bipolar plates Attractive market potential for FEINforming for production of bipolar plates CAGR +73 % (2025 – 2030) Electrolyzer market with stronger growth (mid- to longterm) compared to fuel cell market Assessment for electrolyzers: 1/3 of the market is accessible for Feintool/SITEC (due to plate size etc.) 1 Technologies: Proton Exchange Membrane (PEM) and Solid Oxide (SO) 2 Middle scenario: 230 GW of installed electrolyzer capacity in 2030 (IEA, Oct. 2024) Bipolar plates for fuel cells1 Bipolar plates for electrolyzers1 Sum CAGR +73% Feintool media and analyst conference – 27. February 2025 26 Market volume2 BPP (billion €/a)
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OUTLOOK Feintool media and analyst conference – 27. February 2025 27 Feintool leverages its attractive portfolio for profitable growth Feintool is well prepared for conventional/hybrid drivetrains and for all electric drives as well Due to the technology portfolio and to the global footprint, Feintool is able to adapt to dynamic changes in the markets and to make use of opportunities Sales in mio. CHF >1.000 720
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FOCUS 2025 Decisive consolidation in Europe Restructuring of the European production of rotors and stators for e-motors Specialization European locations Lyss and Most Increase market share in China and Japan, market entry in India Further expanding strategically strong position in the USA Global growth and efficiency program “Level- up 2026!” Feintool media and analyst conference – 27. February 2025 28 Increase efficiency and expand market share globally
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Feintool media and analyst conference – 27. February 2025 29 OUTLOOK 2025 AND MEDIUM-TERM TARGETS Feintool expects business to continue to develop positively in North America and Asia in 2025. Due to the continued low visibility in Europe, Feintool is not giving any guidance for 2025 The medium-term outlook for our target markets for all core technologies remains positive The launched restructuring programs in Europe will be realized in the period from 2025 to 2026. This will enable Feintool to considerably and sustainably increase its profitability. The Group is confident that it will achieve its medium-term target of an EBIT margin of over 6 %
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We look forward to your questions Feintool International Holding AG
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DISCLAIMER Feintool is confirming its best efforts to present accurate and up-to-date information in this document. Feintool gives no representation or warranty, expressed or implied, as to the accuracy or completeness of the information provided herein and disclaims 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 Feintool shares or other securities. Feintool is reiterating that any forward-looking statement in this report offers no guarantee with regard to future performance; they are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal provisions, market conditions, activities by competitors and other factors outside the company's control. 31Feintool media and analyst conference – 27. February 2025