gf corporation investor presentation · gf corporation income statement chf million 31 investor...
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Investor Presentation April 2018
GF Corporation
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Investor Presentation | April 2018 2
GF Corporation
An industrial solution provider
36% CHF 1´482 million
24% CHF 992 million
40% CHF 1´678 million
GF Piping Systems GF Casting Solutions GF Machining Solutions
We offer three times premium expertise and service to match our customers’ needs:
Total sales in 2017: CHF 4´150 million
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Sales up 11% at CHF 4’150 million
Operating result increased 13% to CHF 352 million (CHF 311 million in 2016)
Earnings per share reach CHF 62 (CHF 53 in 2016)
Free cash flow (before acquisitions/divestments) at CHF 204 million
Dividend increase to CHF 23 per share (CHF 20 in the previous year)
Investor Presentation | April 2018 3
GF Corporation
Growth well above target
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Investor Presentation | April 2018 4
GF Corporation
All three divisions grew sales significantly
2.9
5.4
1.1 1.6
10.8 12.3
11.0
8.3
GF GF Piping Systems GF Casting Solutions GF Machining Solutions
2016 2017
3 ~ 5%
Strategy Objectives in % (Sales growth in %)
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Investor Presentation | April 2018 5
GF Corporation
All three divisions in the strategic target range
8 ~ 9%
6 ~ 8% 6 ~ 8%
10 ~ 12%
Strategy Objectives in %
8.3
10.8
7.5 6.8
8.5
11.3
6.3
8.3
GF GF Piping Systems GF Casting Solutions GF Machining Solutions
2016 2017
(EBIT margin in %)
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Investor Presentation | April 2018 6
GF Corporation
All three divisions again generate substantial value
ROIC Objectives in %
19.3 20.6 23.1
18.3 20.3
22.9 19.5
24.1
GF GF Piping Systems GF Casting Solutions GF Machining Solutions
2016 2017
WACC 7.5%
18 ~ 22%
(ROIC in %)
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Widen presence in growth markets, optimize productivity in Europe
Shift divisions’ portfolio to higher margin businesses
Drive sales proficiency and innovation excellence
7
GF Corporation
Strategy 2020 – Profitable expansion
Annual Growth 3-5%
ROS 8-9%
ROIC 18-22%
Objectives
Investor Presentation | April 2018
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GF Piping Systems
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Complete systems for the safe
transport of liquids and gases
Pipes, fittings, valves, automation,
jointing technologies, measurement & control
For industry, utility and building
technology
9
6´764 employees
> 60 companies worldwide
1´678 million (CHF) sales
Figures for 2017
Investor Presentation | April 2018
GF Piping Systems
Overview
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GF Piping Systems
Partnering with our customers …
Utility Building Technology Industry
Investor Presentation | April 2018
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GF Piping Systems
… to conserve water and avoid contamination …
… through safe and secure piping
systems.
Investor Presentation | April 2018
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Investor Presentation | April 2018 12
GF Piping Systems
Urecon acquisition as springboard for cooling in North America
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GF Casting Solutions
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Production of lightweight cast
components and systems
Made out of ductile iron, aluminum
and magnesium
For the global automotive industry
and other industrial applications
14
5´738 employees
19 companies worldwide
1´482 million (CHF) sales
Figures for 2017
Investor Presentation | April 2018
GF Casting Solutions
Overview
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GF Casting Solutions
Partnering with car/truck manufacturers worldwide …
Investor Presentation | April 2018
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GF Casting Solutions
… to address the emission challenge …
… through weight reduction.
Investor Presentation | April 2018
up to - 45 %
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Investor Presentation | April 2018 17
GF Casting Solutions
High tempo expansion in light metal castings
High order book at new US plant GF Linamar
Acquisition in Romania as base for Eastern Europe
New mold production center in China
Picture not approved.
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Investor Presentation | April 2018 18
GF Linamar Joint Venture
GF Casting Solutions
Ramp up of new production facility in North Carolina
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GF Machining Solutions
Investor Presentation | April 2018 19
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Machines and automation solutions
for high precision manufacturing technologies
EDM, milling and laser texturing
For information and communication
technology, aerospace and
aeronautics, medical, dental etc.
20
3´255 employees
36 companies worldwide
992 million (CHF) sales
Figures for 2017
Investor Presentation | April 2018
GF Machining Solutions
Overview
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GF Machining Solutions
We offer our customers …
ICT Medical Aviation
Investor Presentation | April 2018
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GF Machining Solutions
… solutions to their automated …
Investor Presentation | April 2018
… and connected precision needs...
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GF Machining Solutions
… through digital transformation.
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Outlook 2018
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Strong momentum at GF Piping Systems
Acquisitions/new capacities to support GF Casting Solutions growth
High backlog at GF Machining Solutions
Further performance increase expected in line with our 2020 strategic goals
ROIC 18-22%
ROS 8-9%
Sales Growth 3-5%
Investor Presentation | April 2018 25
GF Corporation
Outlook 2018
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Investor Presentation | April 2018 26
GF Corporation
Connected products ready for the market
Servicing machines with rConnect Hycleen Automation System
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GF Casting Solutions
Acquisition GF Precicast
Investor Presentation | April 2018
Precicast (Switzerland), investment casting specialist, signing 1/2018
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Thank you
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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.
Investor Presentation | April 2018 29
Disclaimer
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Backup Financials
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GF Corporation
Income statement
CHF million
Investor Presentation | April 2018 31
2017 2016
Sales 4’150 3’744 11 %
Gross value added 1’539 1’421 8 %
Personnel expenses -1’048 -978 7 %
EBITDA 491 443 11 %
Depreciation, amortization -139 -132 5 %
EBIT 352 311 13 %
Financial result -31 -31 -
Ordinary result 321 280 15 %
Non-operating result 1 1 -
Profit before taxes 322 281 15 %
Income taxes -64 -56 14 %
Net profit 258 225 15 %
thereof own interests 252 216 17 %
thereof non-controlling interests 6 9 -33 %
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GF Corporation
Key figures at a glance
Investor Presentation | April 2018 32
2017 2016
Net debt in CHF 183 214
Net debt / EBITDA (multiple) 0.4x 0.5x
ROIC in % 20.3 19.3
Return on Equity in % 20.1 19.3
Earnings per share in CHF 62 53
Dividend per share in CHF 23 20
Number of employees (incl. trainees) 15’835 14’808
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Backup Business Overview - Divisions
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GF Piping Systems
Business Overview
Industry Market Trend: Position: Market leader int. Major competitors: Simona, Aliaxis, Spears, Watts Water, Sekisui, Asahi Yukizai
Utility Market Trend: Position: World #1 for PE electrofusion fittings Major competitors: Aliaxis, Mexichem (Wavin), Agru
Building Technology Market Trend: Position: Switzerland #1, Leading in selected markets
Major competitors: Geberit, Uponor, Aalberts Ind, Rehau
Investor Presentation | April 2018
40%
34%
26% Utility
Industry
Building Technology
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GF Casting Solutions
Business Overview
Light Metal Castings Market Trend: Position: Europe Top 3 Major competitors: Nemak, Ryobi, Martinrea, DGS, KSM Castings, Handtmann, Magna BDW
Iron Castings Market Trend: Position: Europe #1 Major competitors: Hitachi Metals, Fagor Ederlan, SLR, Walter Hundhausen, MeiTa, Halberg, Busch Hungaria
Investor Presentation | April 2018
64%
30%
6% Passenger Cars
Trucks
Industrial Applications
58%
42%
Iron Castings
Light Metal Castings
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GF Machining Solutions
Business Overview
EDM Market Trend: Position: Top 3 Major competitors: Sodick, Fanuc, Mitsubishi, Makino
Milling Market Trend: Position: HSM Top 5 Major competitors: Makino, Hermle, DMG Mori, Röders, Exeron
Automation/Tooling/Laser Market Trend: Position: World #1 Major competitors:
Erowa, Hirschmann, F-Tool,
Zimmer & Kreim, Fastems
Customer Services Market Trend: Position: #1 Coated Wire Sales
Investor Presentation | April 2018
32%
30%
27%
11% Milling
EDM
Customer Services
Automation/Tooling/Laser
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