Investors Presentation - September 2021 - Georg Fischer
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September 2021
Investors Presentation
Andreas Müller (CEO), Mads Joergensen (CFO) and Daniel Bösiger (IR)
Pioneering 1802 GF Corporate
industrial GF founded in Schaffhausen
technology 1864 GF Piping Systems
for more than 200 years
First piping systems product
1897 GF Casting Solutions
First automotive part
1921 GF Machining Solutions
First machinery
1802: Johann Conrad Fischer | 1864: Malleable iron fitting | 1897: As of 1900 GF develops wheels made of cast steel for trucks and cars |
1921: GF acquires the Machine Factory Rauschenbach for agricultural machinery
2 September 2021 | Investors Presentation
Today GF stays 54%
at the forefront GF Piping
Systems
of new technologies
23% 23%
GF Casting GF Machining
Solutions Solutions
Sales 2020 CHF 3.184 billion, EBIT before We specialize in developing tailored solutions
one-offs CHF 185 million and 14'118 to meet the needs of our customers
employees We operate in markets with high technology,
Our core strength lies in applying complex processes and certification
state-of-the-art industrial technologies requirements
3 September 2021 | Investors Presentation
Present in 40 countries
A global footprint 83 production sites 113 sales sites 11 R&D centers
with local
services
Americas Europe Asia Pacific
12 32 39
13 43 57
2 7 2
4 September 2021 | Investors Presentation
We have an
impact on
every day life
6 am 7 am 9 am 2 pm 8 pm
5 September 2021 | Investors Presentation
FY 2020 key 3'184 -8.4 185 5.8
financial Sales Organic growth EBIT EBIT margin
figures – in CHF million
4’572
in %
6.5
before one-offs in
CHF million
before one-offs in %
8.4
7.6
three years overview 3’720
3’184
382
281
5.8
185
-4.1
-8.4
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
9.3 230 0.4 40
ROIC FCF bef. Net debt / EBITDA Equity ratio
in % acq./divest. (multiple) in %
in CHF million
22.4 230 0.6 43
147 137 0.4 0.4
12.4 41
9.3 40
2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020
6 September 2021 | Investors Presentation
Strong recovery
in all divisions
per H1 2021
Sales
in CHF million
+20%
+16%
1’835
983
1’528
845
+38%
+11%
459
393
328 355
GF GF Piping Systems GF Casting Solutions GF Machining Solutions
H1 2020 H1 2021 Organic growth
7 September 2021 | Investors Presentation
Significant
increase in
profitability EBIT margin
per H1 2021 in %
13~15%
9~11% 13.0 9~11%
11.1
8~10%
7.7
4.2
2.8 2.3
0.3
-7.6
GF GF Piping Systems GF Casting Solutions GF Machining Solutions
H1 2020 H1 2021 Strategic objectives in 2025 * before one-offs in H1 2020
8 September 2021 | Investors Presentation
Our Vision
GF is a sustainability
and innovation leader
providing superior customer value
9 September 2021 | Investors Presentation
Our strategy is about
profitable growth
with emphasis on resilience and learning
10 September 2021 | Investors PresentationPiping Systems Casting Solutions Machining Solutions
Sales Sales Sales
CHF 2.2 bn CHF 1.1 bn CHF 1.1 bn
Return on sales Return on sales Return on sales 1 Drive profitable growth
13 – 15% 9 – 11% 8 – 10% through intelligent and
sustainable solutions
Return on invested capital Return on invested capital Return on invested capital
20 – 24% 18 – 22% 20 – 24%
2 Increase robustness
through resilient portfolio
and operational excellence
Corporation
Sales
3 Evolve culture
CHF 4.4 – 5.0* bn towards more
performance and learning
Return on sales
9 – 11%
Return on invested capital
20 – 22%
11 September 2021 | Investors PresentationGlobal trends
offer great
opportunities
Urbanization Renewable energy Data centers
Global trends driven by
sustainability needs
Water treatment E-Mobility Digitalization
12 September 2021 | Investors PresentationSustainability is an integral part of our strategy
Product Climate & People
Portfolio Resources & Well-being
of sales with social or absolute CO2 emissions accident rate
70% environmental benefits 12.5% footprint reduction 30% reduction
13 September 2021 | Investors PresentationSustainability is
fully integrated We support our customers' success with innovative, energy-saving solutions
to make the collective global footprint more sustainable
and part of our In our 219 years of history, we have continuously pioneered quality and
standards. Our innovations, not limited to technology, apply also to the way
culture we conduct our business and care for society
GF Piping GF Casting GF Machining
Systems Solutions Solutions
Safe & hygienic Reduction of CO2- Highest machining
transport of water emission through precision leads to more
lightweight design energy-efficient and
& materials safer components
14 September 2021 | Investors PresentationSustainability Focus on energy efficient capex –
investments in electric injection molding machine at GF
Piping Systems in Schaffhausen
(Switzerland)
production
facilities world- New energy efficient LED
wide…
lights installed throughout
the production facility at
GF Harvel, Little Rock (USA)
Employees and product affected by high
and low temperatures > Roof upgrade to
include weather coating to reduce cold/
heat fluctuations at GF LLC, Irvine (USA)
Silver certification under the
LEED rating system to be applied
for by GF Casting Solutions site in
Shenyang North China (China)
15 September 2021 | Investors Presentation… and social responsibility
is at the heart of GF
Safety first!
Employees per region
5%
26%
Europa
14’118 Americas
55%
Asia Employer attractiveness
14% Rest of world
Efforts to enable flexible working
models and support employees in
Accident rate balancing family & work
(per 1'000'000 working hours) Target line
14.3 13.7 13.2 12.6 12.0
Continuous work on modernizing the
11.4
production and working facilities to
create ergonomic and collaborative
spaces
14.0 12.5 10.2 10.4 9.7 7.9
Baseline 2016 2017 2018 2019 2020
16 September 2021 | Investors PresentationOur ESG efforts are clearly
recognized by leading agencies
Rating Agency Rating Scale External recognition
14% 10% 27% 22% 18%
6% 4%
AA
CCC B BB BBB A AA AAA
As of January 2021, Georg Fischer
GF is rated as
received an overall ESG Ranking *)
of 36 out of 350 companies of the number 9 most
36 out of 350 global Machinery Industries and is sustainably
(11th percentile) considered by Sustainalytics to be managed
at medium risk of experiencing companies 2020
material ESG financial impacts by WSJ
*)
out of 5'500 companies
50%
153 companies
C+ 0%
D- D D+ C- C C+ B- B B+ A- A A+
D C C
A- on Climate since
GF is member of SXI Switzerland
B B B 2014
Sustainability 25® since 2014
A- on Water
Powered machinery Europe Global average
17 September 2021 | Investors PresentationGF Piping Systems 18 September 2021 | Investors Presentation
Sustainability GF Piping Systems
drives business
Global drinking water loss per year:
126 billion litres
Neoflow – The Solution of GFPS
for pressure management
NeoFlow Pressure
Regulating Valve 75% reduction in pipe bursts by decreasing excess pressure by 25%
5% reduction of water leakage can save up to 225k mt of CO2 annually
Savings on installation time by up to 40%
19 September 2021 | Investors PresentationGroundbreaking GF Piping Systems
customer solutions
We are a leading supplier of piping systems
1 made of plastics and metal
We focus on system solutions and high-
2 quality components for the safe transport
of water, chemicals and gases
Our product portfolio of fittings, valves, pipes,
3 automation and jointing technologies covers
all applications of the water cycle
20 September 2021 | Investors PresentationOur customers GF Piping Systems
Industry Utility Building Technology
21 September 2021 | Investors PresentationProviding quality to our customers GF Piping Systems
through safe and secure piping systems
WBI Weld Bead Inspection Water treatment
(WBI) Tool (advanced process automation)
22 September 2021 | Investors PresentationGF Casting Solutions 23 September 2021 | Investors Presentation
Increased CO2 regulations drive GF Casting Solutions
demand for lighter components
Lightweight EU CO2 regulations Sustainable
Aluminium Battery for passenger cars logistics through
Housing local for local
Lightweight 100%
Magnesium Cross recyclable
Car Beam Approx. 50% CO2 reduction material
between today and 2030 target
Source: ICCT – Briefing August 2020
24 September 2021 | Investors PresentationDriving future GF Casting Solutions
technologies
We are a technologically pioneering development
partner and manufacturer of cast and additive
1 components for the global automotive industry,
aerospace and energy markets, off-highway vehicles
and for industrial applications
Our highly complex lightweight components are
produced using state-of-the-art manufacturing
2 technologies – from the development to the ready-
to-mount solution
25 September 2021 | Investors PresentationGF Casting Solutions
Share of electrified vehicles will increase GF Casting Solutions
within the next years…
Global Light vehicle production in million units
110
100 10% Electric Vehicles +
3% Plug-in Hybrids
90 6% Full Hybrids
+ +
80
14% Mild Hybrids
70
60
50
40 Internal
66% Combustion
30 Engines
20
10
2017 2019 2021 2023 2025 2027
Source: LMCA Q3 2020
26 September 2021 | Investors PresentationGF Casting Solutions
… and EV cars will significantly reduce GF Casting Solutions
CO2 emissions over lifetime
Life-cycle greenhouse gas emissions of gasoline and battery-electric vehicles Even in countries where the electricity
(gCO2 eq./km) used for charging still comes mostly
from non-renewable sources
250 Vehicle
200 Fuel combustion
Fuel production
150
Battery
-48%
-53%
100 -63% Electricity production
-78%
50
0
Conventional Battery
gasoline electric
Source: ICCT 2020.12.02, https://theicct.org/cards/stack/explaining-electric-vehicles
27 September 2021 | Investors PresentationPartnering with leading manufacturers GF Casting Solutions
worldwide …
Passenger Cars Industrial Applications Aerospace / Industrial Gas Turbines
28 September 2021 | Investors Presentation… with strong expertise in e-drive GF Casting Solutions
solutions and lightweight structural parts
Transmission Housing E-Engine Housing Battery Housing Cross Car Beam
VW MEB Platform Audi E-Tron VW Golf GTE Jaguar I-Pace
Source: VW Source: Audi Source: VW Source: Jaguar
29 September 2021 | Investors PresentationGF Machining Solutions 30 September 2021 | Investors Presentation
Digitalization and miniaturization GF Machining Solutions
increase need for precision
The GEnx is delivering up to
ML-10 Nozzle 15% better specific fuel
ablation consumption than the engine
it replaces
CMC is 2/3 lighter
with 20% higher
temperature
resistance
The GEnx’s emissions are
CMC Ventilation micro- up to 95% below current
holes improve performance regulatory limits, ensuring
and efficiency clean compliance for years
to come
31 September 2021 | Investors PresentationFocus on GF Machining Solutions
digitalization
We are one of the world’s leading providers of
complete solutions to the tool and mold making
1 industry and to manufacturers of precision
components
Our portfolio includes Milling, wire-cutting
2 and die-sinking EDM machines
We offer spindles, Laser texturing, Additive
3 Manufacturing, tooling and automation as well as
digitalization solutions and customer services
Our key customer segments are the aerospace, ICT,
4 medical and traditional mold and die industries
32 September 2021 | Investors PresentationWe offer our customers … GF Machining Solutions
ICT Medical Aerospace
33 September 2021 | Investors Presentation… innovative and advanced GF Machining Solutions
technology solutions
LASER P series
Arthoscopic cutter blades
Complete cell
(CUT P + S3R pallets and robots
Next generation Laser technologies Medtech + rConnect + Smart Wire)
34 September 2021 | Investors PresentationGF at a glance
Strategy focus on profitable growth with emphasis on resilience and learning
through intelligent and sustainable solutions, a resilient portfolio, operational
excellence and evolving culture towards more performance and learning
Products and services addressing demand of global mega trends
global mega trends with direct business impact in all three divisions
Industry-leading technology provider with more than 200 years of industrial
know-how well balanced geographical presence with a Swiss quality brand and
Investment technology with worldwide local production
proposition
Focus on solutions for our customers for their sustainable business
creating value to society and contributing to a sustainable development
Focus on long-term value creation and return on invested capital
value generation for our shareholders and other stakeholders
35 September 2021 | Investors PresentationOur Purpose
Becoming SINCE
better every day 1802
36 September 2021 | Investors PresentationThank you! 37 September 2021 | Investors Presentation
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 GF. The presentation contains forward-looking statements that involve risks and uncertainties. The actual results of GF may differ materially from those anticipated in these forward-looking statements and forecasts as a result of a number of factors. The management of GF does not accept any liability whatsoever with respect to the use of this presentation. 38 September 2021 | Investors Presentation
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