Slides
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Presentation of 1H 2025 results Heerbrugg | July 17, 2025
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Presentation of 1H 2025 results | July 17, 2025 | Public 2 Today’s speakers Welcome! Jens Breu, CEO Volker Dostmann, CFO
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Presentation of 1H 2025 results | July 17, 2025 | Public Agenda 3 Positioning of SFS Key takeaways Adjustment of production and distribution network Key financials Development of segments Guidance 2025 Organizational further development as of 2026 Q&A Jens Breu Jens Breu Jens Breu Volker Dostmann Volker Dostmann Volker Dostmann Jens Breu Jens Breu & Volker Dostmann 1. 2. 3. 4. 5. 6. 7. 8.
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Presentation of 1H 2025 results | July 17, 2025 | Public Positioning of SFS 4
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Presentation of 1H 2025 results | July 17, 2025 | Public Mission-critical products for selected end markets We are by your side – 24/7 5
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Title of presentation Brand. Logo.L ogo 6 Inventing success together Driving innovation with Value Engineering Value Engineering… in three segments … by Value Creators Engineered Components Fastening Systems Distribution & Logistics
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Presentation of 1H 2025 results | July 17, 2025 | Public Optimizing the product from four parts into one Multi-part fastening system for ATMs Value Proposition Conventional compared to our innovative solution 7 • Time savings • Cost reductions of up to 60% • Enhanced quality • Reduced logistical effort
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Presentation of 1H 2025 results | July 17, 2025 | Public Optimizing the product End-to-end production (metals, plastic, packaging) Metal components only Value Proposition Conventional compared to our innovative solution 8 • 50% shorter throughput time • Reduce cost of procurement and supplier management • Reduction in networking capital for customer
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Presentation of 1H 2025 results | July 17, 2025 | Public Value Proposition Conventional compared to our innovative solution 9 Improving the process by using our sandwich panel concrete fastener MDC/MXC • 50% faster installation • Cost reductions of up to 60% Complex assembly process for sandwich panels on a concrete base, into which profile rails are inserted for fastening
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Presentation of 1H 2025 results | July 17, 2025 | Public 10 Fastening Systems Product, process and digitization solution example Tool Fastener Calculation software
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Presentation of 1H 2025 results | July 17, 2025 | Public Improving the process Immediate and direct access for all employees 24/7 Value Proposition Conventional compared to our innovative solution 11 • Innovative issuing system • Quick and secure • Individual configuration • Payback time <5 years based on average cost savings Counter with hand-out by specific employee
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Presentation of 1H 2025 results | July 17, 2025 | Public 12 Distribution & Logistics Product, process and digitization expertise Smart tool storage Tool consumables Cost improvement • Higher availability of tools and consumables • Reduction of inventory • Inventory control and data for further optimization
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Presentation of 1H 2025 results | July 17, 2025 | Public 13 Global sales and manufacturing platform Customer proximity supported by local presence North America Europe Asia, others 13,700 Value Creators 1 Target 32 Production sites 35 Countries 150 Locations
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Presentation of 1H 2025 results | July 17, 2025 | Public Key takeaways 14
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Presentation of 1H 2025 results | July 17, 2025 | Public 15 • Solid results in a market with global trade policy upheavals and high uncertainty, reflecting the company’s sustained good positioning • SFS generated sales of CHF 1,539.1 million, corresponding to a reduction of –0.4% compared with 1H 2024 • Currency effects reduced growth by –2.3% • On a like-for-like basis, slight organic growth of 1.1% realized • To address the challenging market environment, SFS has started to selectively adjust its production and distribution network. The program will generate one-time costs of approximately CHF 75 million and finish by the end of 2027 • Adjusted operating profit (EBIT) of CHF 168.1 million and adjusted EBIT margin of 11.0% (PY 11.7%) • Including one-time costs of CHF 5.9 million, the reported EBIT margin stays at 10.6% • As of January 1, 2026, the SFS Group will, in a final step, complete the adaptation of its organization, allowing it to sharpen its focus on end markets and customers. • Updated SFS Group guidance for the 2025 financial year Key takeaways Solid performance
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Presentation of 1H 2025 results | July 17, 2025 | Public Adjustment of production and distribution network 16
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Presentation of 1H 2025 results | July 17, 2025 | Public 17 • The changing market environment, particularly in the industrial manufacturing and automotive end markets, presents SFS with challenges • To strengthen focus on core activities and adjust production capacities to market demand, selected sites will be closed and individual business areas carved out • Concentration on fewer strategic production plants and core activities optimizes efficient use of resources and reduces complexity within the production and distribution network • These activities will help to achieve SFS’s defined long-term growth and profitability targets • The SFS Group’s strategy remains unchanged, particularly its local-for-local strategy • Program to be completed by end of 2027: • Expected reduction in sales of about CHF 110m and total program-related one-off costs of approx. CHF 75m • Whereof CHF 30m are balance sheet effects, CHF 35m project cost and CHF 10m loss by sale assets • In total CHF 25m in cash and CHF 50m non-cash • Positive EBIT margin effect of approx. +0.8 percentage points as a result • One-off costs will be reported and EBIT margin adjusted during the time of the program Adjustment of production and distribution network Adaptation to changing market environment
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Presentation of 1H 2025 results | July 17, 2025 | Public 18 Current project overview About 650 full-time jobs affected • Brunn am Gebirge (Austria): activities transferred to Germany in the spring of 2025 • Olpe (Germany): site closure in 2H 2025, business partially relocated to Heerbrugg (Switzerland) • Malaysia & Singapore: Asia-Pacific organization of Hoffmann being moved to distribution partners gradually until fall 2025 • Emmenbrücke (Switzerland): as of June 30, 2025, management buy-out of Allchemet signed, transaction will close by end of 2025 • Turnov (Czech Republic): site closure by 2026, business partially relocated to Heerbrugg (Switzerland) if profitable and if customers agree Core focus Selected sites are closed, and non-core business areas are carved out Streamline operations Focusing on fewer locations increases capacity utilization and reduces complexity Increase profitability These measures support our long-term growth and profitability targets Strategy unchanged Our strategy remains unchanged, particularly the local-for-local approach
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Presentation of 1H 2025 results | July 17, 2025 | Public Key financials 19
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Presentation of 1H 2025 results | July 17, 2025 | Public 20 • EC segment with positive development and organic growth • FS segment negatively impacted by economic environment and weather conditions • Restrained market momentum in D&L segment Sales bridge Organic growth, negative FX effect 1,580 20 1,520 0 1,540 1,560 in CHF million 06/2024 +1.1% 17.5 Organic +0.8% 12.3 Scope -2.3% -35.6 -0.4% 1,539.1 1,544.9 06/2025FX FX rate ØYTD 06/2025 ØYTD 06/2024 EUR/CHF 0.941 0.962 USD/CHF 0.863 0.889 Organic growth1 06/2025 CHF million 06/2025 % 06/2024 % EC segment 28.4 5.2% 4.8% FS segment –2.9 –1.0% –7.7% D&L segment –8.0 –1.2% –0.5% 1 Organic growth 2025 measured on a like-for-like basis considering the new segment composition
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Presentation of 1H 2025 results | July 17, 2025 | Public 21 Sales breakdown by end market and region Growth in EC end markets 21.3% 20.0% 20.8% 20.9% 21.4% 21.0% 31.4% 24.7% 20.8% 20.3% 20.4% 20.6% 19.9% 15.8% 12.8% 13.1% 11.3% 11.9% 11.5% 22.7% 27.4% 27.2% 28.2% 26.4% 7.2% 5.6% 5.7% 6.2% 6.2% 6.3% 8.7% 11.2% 12.5% 12.3% 12.5% 13.8% 0% 20% 40% 60% 80% 100% 2021 2022 2023 2024 06/2024 06/2025 Automotive industry Construction industry Electrical and electronics industry Medical device industry Other industriesIndustrial manufacturing 21.6% 16.5% 13.0% 13.5% 11.8% 12.3% 37.8% 51.4% 59.0% 57.8% 59.5% 57.5% 21.8% 18.5% 16.3% 17.1% 16.9% 18.8% 18.8% 13.6% 11.7% 11.6% 11.8% 11.4% 0% 20% 40% 60% 80% 100% 2021 2022 2023 2024 06/2024 06/2025 Asia, others Europe North America Switzerland
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Presentation of 1H 2025 results | July 17, 2025 | Public 22 298.6 353.2 358.6 350.2 180.8 168.1 21.3% 17.2% 15.8% 15.8%15.7% 12.9% 11.7% 11.6% 15.9% 15.3% 11.7% 11.0% 0 5 10 15 20 25 0 100 200 300 400 500 600 700 800 900 1,000 in CHF million in % of net sales 2021 2022 2023 2024 06/2024 06/2025 • Soft demand and lower capacity utilization impacting profitability of FS and D&L segments • EBIT margin under pressure • EBIT adjusted by non-recurring costs of program to make changes to the production and distribution network in the amount of CHF 5.9 million Operating profitability YTD EBIT margin adjusted below target range EBIT margin adjusted EBITDA margin adjusted Profitability Reported in CHFm Reported % Adjusted in CHFm Adjusted % EBIT 162.2 10.6 168.1 11.0 EBITDA 230.4 15.0 235.2 15.3
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Presentation of 1H 2025 results | July 17, 2025 | Public 23 • Overall EPS –4.7% • EPS decreasing mainly due to lower net income driven by operating profit (EBIT) • Burdened by improvement program to increase profitability (approximately CHF 0.15) Earnings per share (EPS) EPS with negative development 6.51 6.95 6.84 6.21 3.00 2.86 2.20 2.50 2.50 2.50 0.0 0.5 1.0 1.5 2.0 2.5 3.0 0 1 2 3 4 5 6 7 8 9 10 11 12 2021 2022 2023 2024 06/2024 06/2025 EPS in CHF Payout per share in CHF
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Presentation of 1H 2025 results | July 17, 2025 | Public 24 • Seasonal high balances of accounts receivable due to usually higher sales compared to year-end, FX- rate development is diluting the increase effect • Significant decrease in NWC (especially account receivables and inventory) compared to June 2024 triggered by FX-rate development Net working capital FX-impact and usual seasonal influences 109 98 103 111 107 29.9% 26.8% 28.1% 29.2%30.4% 0% 5% 10% 15% 20% 25% 30% 35% 0 30 60 90 120 150 C2C simplified in daysNWC simplified* in % of net sales 2021 27.2%** 2022** 2023 2024 06/2024 06/2025 99** *NWC simplified = AR + Inventory – AP ** Impact of Hoffmann annualized
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Presentation of 1H 2025 results | July 17, 2025 | Public 25 121.4 171.0 174.0 148.9 68.7 53.3 6.4% 6.2% 5.7% 4.9%5.6% 4.3% 4.1% 4.3% 4.5% 3.5%4.2% 4.4% 0% 1% 2% 3% 4% 5% 6% 7% 0 50 100 150 200 250 300 350 400 in CHF million in % of net sales 2021 2022 2023 2024 06/2024 06/2025 • CAPEX below target range of 4–6% of net sales • Substantial reduction in growth-related expenditure due to strict cost management • Non-essential investment projects postponed Capital expenditure Investing – Focus on defined areas of growth CAPEX spending by segment 06/2025 % 06/2024 % EC 70 71 FS 12 12 D&L 13 11 CAPEX in % of net sales D&A in % of net salesIndicative target range
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Presentation of 1H 2025 results | July 17, 2025 | Public 26 203 117 139 226 87 123 49.9% 47.1% 35.5% 53.2% 0% 10% 20% 30% 40% 50% 60% 0 60 120 180 240 300 360 in CHF million in % of EBITDA 2021 26.1% 2022 28.7% 2023 2024 06/2024 06/2025 • Lower NWC changes and CAPEX leading to higher OFCF • Cash conversion (OFCF adj./EBITDA adj.) rate adjusted at 54.2% Operating free cash flow (OFCF) Cash conversion above target range in CHF million 06/2025 06/2024 CF before changes in NWC 189 199 Changes in NWC –13 –43 Cash flow from operations 176 156 CAPEX –53 –69 Operating free cash flow 123 87 Operating FCF Operating FCF/EBITDAIndicative target range
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Presentation of 1H 2025 results | July 17, 2025 | Public 27 279 -478 -445 -335 -456 -317 78.9% 54.0% 59.7% 56.1% 60.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% -600 -400 -200 0 200 400 600 CHF million net cash/debtEquity ratio in % 2021 50.6% 2022 2023 2024 06/2024 06/2025 • Important factor for net debt development: • Improved generation of operating free cash flow • First bond of CHF 250 million settled in June 2025 • Unused credit lines used to refinance bond repayment • Second bond maturity is June 2027 (CHF 150 million) Balance sheet ratios Equity ratio back in target range Indicative target range
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Presentation of 1H 2025 results | July 17, 2025 | Public 28 • Bridge ROCE to ROIC • Impact from goodwill and net cash: –7.2% • Impact from tax effects: –3.3% Return on capital ROCE slightly below 2024 year-end level 26.1% 20.4% 19.4% 11.2% 8.9% 8.4% 15.7% 12.9% 11.7% 11.6% 11.7% 10.6% 20.2% 18.8% 8.7% 0% 5% 10% 15% 20% 25% 30% in % of net sales 2021 24.4%* 9.7%* 2022* 2023 2024 06/2024 8.3% 06/2025 ROCE ROIC EBIT adj. in % of net sales*Impact of Hoffmann annualized ROCE = Adjusted EBIT ann. ∅ Capital Employed (CE) ROIC = Adjusted EBIT ann.−Tax Rate 17.5% Invested Capital (IC) Ø CE = Working capital less cash plus tangible and intangible assets less def. tax and provisions IC = Equity before goodwill offset less net cash/plus net debt
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Presentation of 1H 2025 results | July 17, 2025 | Public Development of segments 29
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Presentation of 1H 2025 results | July 17, 2025 | Public 30 • Sales of CHF 563.1 million, +2.4% vs. 1H 2024, driven by continued ramp-up of growth projects in Heerbrugg (Switzerland) and Nantong (China) plus momentum in HDD and Aircraft applications • However, customer demand in most end markets and applications muted. Low visibility and high uncertainty reducing investment sentiment • Continued positive development in Electronics division in all major application areas • M&I Specials division confirms dynamic result of same period last year • EBIT margin of 13.7% Engineered Components segment Growth trajectory continued
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Presentation of 1H 2025 results | July 17, 2025 | Public 31 • Sales of CHF 297.2 million, +0.6% vs. 1H 2024, like- for-like • Construction end market affected by sluggish demand, especially in Europe, as well as regionally cold and longer winter • Transfer of CH-based “Construction & Wood” business from D&L segment as of January 1, 2025, took place according to plan • EBIT margin of 11.8% below 1H 2024 level due to: • Dilutive effect of “Construction & Wood” business • Amortization of intangibles from FY24 transactions • Expansion of local manufacturing capacity in Exeter (USA) completed as planned, strengthening local-for- local manufacturing capabilities Fastening Systems segment Wellpositioned in local markets
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Presentation of 1H 2025 results | July 17, 2025 | Public 32 • Sales of CHF 678.8 million, –3.0% vs. 1H 2024, like- for-like, European industrial manufacturing end market experiences restrained dynamic and customer sentiment • Warehouse of two European distribution partners integrated into LogisticCity in Nuremburg (Germany), leading to significantly increased capacity utilization • EBIT margin of 8.0% below 1H 2024 level due to: • Reduced market dynamics • Dilutive effect of onboarding warehouse distribution partners Distribution & Logistics segment Prepared for market recovery
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Presentation of 1H 2025 results | July 17, 2025 | Public Guidance 2025 33
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Presentation of 1H 2025 results | July 17, 2025 | Public 34 Guidance reflects current geopolitical and economic environment, paired with low visibility. Updated guidance 2025 FY25 results expected around previous year’s level 2025G (CHF) 2024A (CHF) Gross sales SFS development *(in local currencies, incl. scope effects) Around previous year* 3,039.0 million EBIT margin Adjusted EBIT margin around previous year’s level 11.6%
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Presentation of 1H 2025 results | July 17, 2025 | Public 35 Strategic priorities Focusing on our main strengths and opportunities Strategy execution Mega- trends “Local-for- local” Focus on technology Solid financing
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Presentation of 1H 2025 results | July 17, 2025 | Public Organizational further development as of 2026 36
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Presentation of 1H 2025 results | July 17, 2025 | Public 37 Vision 2030 Prepare the organization for future growth 2.0 Purpose of the project “Step-up”: We want to make our organization ready for future growth by… • simplifying and streamlining the organization • sharpening our focus on end markets • empowering the segment management teams for decentralized decision-making • advancing the organization to the next level → “Step-up”
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Presentation of 1H 2025 results | July 17, 2025 | Public 38 New composition of the Group Executive Board Sharpening focus on strategic decision-making Increased diversity within GEB • Strengthen leadership by ensuring gender diversity and moving beyond an all-male composition Accelerated growth in Asia • Drive expansion in the region • Use potential M&A oppor- tunities – a lever not actively used over the past decade Broader perspective on segments and end markets • Break down silos and promote decision-making across divisions and functions • Enable more holistic and strategic discussions • Foster healthy internal debate Alignment with SEDP (Structured Employee Development Program) • Promote job rotation • Broaden leadership capa- bilities across the organization including at GEB level
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Presentation of 1H 2025 results | July 17, 2025 | Public 39 Organizational changes as of January 2026 Strengthen end market focus in EC segment • The EC segment will no longer have divisions • Segment gets structured into Business Units: Automotive Formed Parts, Automotive Fasteners, Medical, Industrial and Electronics • Urs Langenauer, Head of Division Automotive, will take over as Head of EC Segment • George Poh, Head of Division Electronics, will retire from the Executive Board at the end of 2025 • Walter Kobler, Head of Division Medical & Industrial Specials, will also step down from the Executive Board and will continue as Head of Business Unit Medical until his upcoming retirement end of 2026 Walter KoblerGeorge PohUrs Langenauer
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Presentation of 1H 2025 results | July 17, 2025 | Public 40 Organizational changes as of January 2026 Further development of BUs in growing Asian market • Martin Reichenecker, Head of Segment D&L, assumes overall responsibility for the Asia Region • Iso Raunjak, former Head of Division D&L Switzerland and current Chief Human Resources Officer (CHRO), will take over the D&L segment from Martin Reichenecker • Christina Burri, Head of Corporate Accounting & Reporting, takes over responsibility for Human Resources, Marketing & Corporate Communications and ESG from Iso Raunjak • With that, she will join the Group Executive Board Christina Burri Iso RaunjakMartin Reichenecker
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Presentation of 1H 2025 results | July 17, 2025 | Public 41 Vision 2030 | Asia Region Driving growth in Asia India Nantong Malaysia • Build up of fastener production capability • Localization and further develop- ment of Automotive core technologies • Business development in the area of brakes and restraint systems • Expand division activities for overall growth in China • Go-to-market growth of Medical customers • Establish a leading market position in BSD technology for brake systems • Build up capability for non-HDD customers • Go-to-market growth of Medical customers
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Presentation of 1H 2025 results | July 17, 2025 | Public 42 Group structure Today’s organization
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Presentation of 1H 2025 results | July 17, 2025 | Public 43 Group structure Organization as of January 1, 2026
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Presentation of 1H 2025 results | July 17, 2025 | Public Q&A 44
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Presentation of 1H 2025 results | July 17, 2025 | Public 45 2026 Publication of first results on financial year 2025 Friday, January 23, 2026 Publication of Annual Report 2025 Friday, March 6, 2026 33rd Annual General Meeting Wednesday, April 22, 2026 Agenda Upcoming IR events
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Presentation of 1H 2025 results | July 17, 2025 | Public Thank you for your attention 46