Presentation of the Business Year 2004

Presentation of the Business Year 2004

Presentation of the
Business Year 2004
Hartmut Reuter
Chief Executive Officer
BMK 2005
30/3/05 / GPFC-rg
1
Rieter Group
Agenda
The Year 2004
Hartmut Reuter
Financial results 2004
Urs Leinhäuser
Strategy and Outlook 2005
Hartmut Reuter
BMK 2005
30/3/05 / GPFC-rg
2
Rieter Group
Successful business year 2004
"All the main key figures at the Rieter Group at
the close of the 2004 financial year were higher
than in 2003."
Hartmut Reuter,
CEO Rieter Group
BMK 2005
30/3/05 / GPFC-rg
3
Rieter Group
Highlights of the Rieter Group in 2004
Increase in sales, EBIT and net profit
Very good EBIT margin of Textile Systems maintained
EBIT of Automotive Systems improved
Group financially stable
High Free Cash flow, very good development of liquidity
Higher dividend proposed
Presence in Asia expanded in both divisions
Full consolidation of Magee Rieter and Suessen
per January 2005
BMK 2005
30/3/05 / GPFC-rg
4
Rieter Group
Sales by division
Sales
Textile
Systems
1'176 CHF million
(-4.3%)
CHF million
3250
3000
3'118
3'173
37%
2750
63%
2500
Automotive
Systems
1'979 CHF million
(+5.5%)
2250
2003
BMK 2005
2004
30/3/05 / GPFC-rg
5
Rieter Group
Sales development in local currencies
CHF million
3600
Ø + 4.5%
3300
3000
2700
2400
2000
Sales
BMK 2005
2001
2002
2003
2004
Sales adjusted for currency effects (exchange rates 2000)
30/3/05 / GPFC-rg
6
Rieter Group
Sales 2004 by most important countries
CHF million
(rank 2003)
1.
(1) USA
529
2.
(3) France
309
3.
(4) China
251
4.
(5) Germany
225
5.
(6) Italy
222
6.
(2) Turkey
210
7.
(7) Great Britain
191
8.
(9) Canada
146
9. (10) Sweden
118
10.
(8) Spain
11 Industrialized countries and
9 Emerging countries
3'173
30/3/05 / GPFC-rg
47% (47%)
28% (25%)
21% (22%)
In 20 countries
90% of total sales
115
Total
BMK 2005
Sales Europe:
Sales EU:
Sales Nafta:
7
Rieter Group
EBIT and net profit
EBIT
Net profit
CHF million
CHF million
250
150
210.5
202.4
200
120
150
90
100
6.8%
CO
6.9%
CO
116.0
3.9%
CO
4.5%
CO
2003
2004
60
50
30
0
0
2003
137.8
2004
CO = Corporate output
BMK 2005
30/3/05 / GPFC-rg
8
Rieter Group
Net liquidity
2004:
CHF million
Free cash flow +202 CHF million
250
200
150
-34.9
Dividend
–34 CHF million
Transactions
own shares
+75 CHF million
Other
–3 CHF million
218
100
2003:
50
+ 13 CHF million
Free cash flow +86 CHF million
0
-35
-22
-50
2002
BMK 2005
+ 240 CHF million
2003
30/3/05 / GPFC-rg
2004
9
Dividend
–35 CHF million
Transactions
own shares
–57 CHF million
Other
+19 CHF million
Rieter Group
Number of employees by countries
(rank 2003)
1.
(1) USA
2'403
2.
(2) Switzerland
1'788
3.
(3) France
1'647
4.
(4) Czech Republic
1'633
5.
(5) Germany
1'373
6.
(6) Italy
1'182
7.
(8) Brazil
648
8.
(7) Great Britain
607
9.
(9) Canada
432
10. (12) China
400
11. (11) India
301
12. (10) Spain
299
Total
BMK 2005
low-cost
countries
25%
75%
high-cost countries
2004
13'557
30/3/05 / GPFC-rg
10
Rieter Group
Expansion of global presence
2004:
13'557 employees
1993:
7'934 employees
North
America
2%
Africa
Asia
Latin
America
6%
5%
North
America
Asia
21%
55%
13%
98%
Western
Europe
Eastern
Europe
Western
Europe
BMK 2005
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11
Rieter Group
Rieter's presence in China
9 plants with 400 employees
1 production site each for Textile and Automotive
Sales increase 2000 to 2004:
Shanghai
CHF million
300
253
251
2003
2004
250
182
200
136
150
100
67
50
Textile Systems
Automotive Systems
BMK 2005
30/3/05 / GPFC-rg
0
2000
12
2001
2002
Rieter Group
Rieter in China – Sales development
Textile Systems
Automotive Systems
CHF million
CHF million
233
250
33
175
200
32
136
150
100
40
218
20
24
16
67
7
8
50
0
0
0
2000
BMK 2005
2001
2002
2003
30/3/05 / GPFC-rg
2001
2004
13
2002
2003
2004
Rieter Group
Rieter in India
Chandigarh
Delhi
Mumbai
Pune
Coimbatore
BMK 2005
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14
Rieter Group
Textile Systems 2004
The leading systems supplier in the spinning process
BMK 2005
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15
Rieter Group
Market – shippings of staple fiber machinery
9'000
in 1'000 ITMF spindle equivalents
8'000
7'000
6'000
5'000
4'000
3'000
2'000
1'000
0
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
Chinese producers included since 2000
Source: ITMF - International Textile Machinery Shipment Statistics 1980-2003, Rieter Estimate 2004
BMK 2005
30/3/05 / GPFC-rg
16
Rieter Group
Textile Systems: Orders received
CHF million
1'250
1'091
1'132
1'114
1'078
CHF million
750
Ø 550
613
955
1'000
600
619
544
519
534
472
750
450
500
300
250
150
0
0
2000
BMK 2005
2001
2002
2003
30/3/05 / GPFC-rg
2004
1st HY 2nd HY 1st HY 2nd HY 1st HY 2nd HY
2002
2002 2003
2003 2004
2004
17
Rieter Group
Textile Systems: Sales
Sales
by geographical region
CHF million
America
(–9.4%)
1500
1200
1'090
1'239
1'108
1'228
1'176
Europe/Africa
(–30.4%)
10%
900
20%
600
70%
300
0
2000
BMK 2005
2001
2002
2003
30/3/05 / GPFC-rg
2004
Asia (incl. Turkey)
(+8.4%)
18
Rieter Group
Textile Systems: EBIT
CHF million
150
122.7
125
100
97.9
94.3
8.5%
CO
8.9%
CO
114.1
89.1
75
50
8.5%
CO
10.6%
CO
10.2%
CO
25
CO = Corporate
output
0
2000
BMK 2005
2001
30/3/05 / GPFC-rg
2002
2003
19
2004
Rieter Group
Rieter as Systems Supplier
Staple fiber spinning mill, Brennet/Germany 2004
BMK 2005
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20
Rieter Group
Innovation: Staple fiber machines
R40: Longest rotor spinning machine with 360 positions
BMK 2005
30/3/05 / GPFC-rg
21
Rieter Group
Innovation: Staple and chemical fiber machines
K44: Longest compact
spinning machine with 1200
positions
Tire Cord Cabling CP
Expansion of application range: Micro
polyester fibers and mixed fibers
New generation of cabling machines
for carpet yarn and tire cord
BMK 2005
30/3/05 / GPFC-rg
22
Rieter Group
Automotive Systems 2004
Leading supplier of integrated acoustic systems
BMK 2005
30/3/05 / GPFC-rg
23
Rieter Group
Global car production 61.1 m (+ 4.8%)
vehicles in million
change in % to previous year
35
30
–0.7%
25
20
–0.1%
–0.1%
15
10
5
0
79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04
Western Europe
Nafta
Source: DRI World Car Industry Forecast, March 2004
BMK 2005
30/3/05 / GPFC-rg
24
Rieter Group
Production volumes 2004 in main markets
World production of vehicles
(light vehicles)
2003: 58.3 m units
–0.1%
W. Europe
+1.7%
E. Europe
2004: 61.1 m units (+4.8%)
–0.7%
+24.3%
16.4 16.4
3.1
15.9 15.7
3.8
NAFTA
10.0 10.2
3.8
+12.2%
3.0
Japan
4.3
China
3.1
3.3
3.6
S. Korea +6.3 %
1.9
+31.2%
2.4
Rest of Asia
Latinamerica
+21.6%
Source: Global Insight
March 2005
BMK 2005
30/3/05 / GPFC-rg
25
Rieter Group
Automotive Systems: Sales
Sales
by geographical region
CHF million
Asia
(+50.9%)
2'250
3%
America
(–1.2%)
1'979
2'000
1'825
1'900
1'848
1'876
33%
1'750
1'500
64%
1'250
1'000
2000
BMK 2005
2001
2002
30/3/05 / GPFC-rg
2003
Europe/Africa
(+7.8%)
2004
26
Rieter Group
Automotive Systems: Sales increase
CHF million
2400
Ø +5.6%
2200
2000
1800
1600
1400
2000
Sales
BMK 2005
2001
2002
2003
2004
Sales adjusted for currency effects (exchange rates 2000)
30/3/05 / GPFC-rg
27
Rieter Group
Automotive Systems: EBIT
CHF million
125
107.2
102.0
109.6
98.3
100
84.6
75
6.0%
CO
5.5%
CO
6.1%
CO
4.6%
CO
5.1%
CO
+16.2%
50
25
CO = Corporate
output
0
2000
BMK 2005
30/3/05 / GPFC-rg
2001
2002
28
2003
2004
Rieter Group
"Roadmap to Profitable Growth"
Increase of productivity
Reduction of procurement costs
Decrease in the use of raw material
Reduction of fixed costs
Extension of low-cost locations
BMK 2005
30/3/05 / GPFC-rg
29
Rieter Group
Sales per customer group
Daimler- VW Group
Chrysler
6%
BMW
Group
Fiat
Renault
5%
Toyota
Honda
9%
6%
7%
8%
Sales 2004:
1'979 CHF million
Other
4% Japanese OEMs
11%
GM
4%
11%
PSA
14%
10%
Ford Group
Light trucks
BMK 2005
30/3/05 / GPFC-rg
30
Rieter Group
New models with Rieter components
Citroen C4
Chrysler 300
Toyota Corolla
VW Golf
Mercedes M Class
Scania R580
BMK 2005
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31
Rieter Group
Rieter components for the Mini Cabrio ...
... from several European locations
Sound Insulation
Inner Dash
(UK)
Sound Insulation
Bonnet Liner
(Spain)
Main Floor Carpet
(UK)
Sound Insulation
Trunk
(UK)
Side Trunk Trim
(Poland)
BMK 2005
Tr
Cr unk
(P oss Tr
ola m im
nd em
be
)
r
Under Engine Shield
(Switzerland)
Filler Piece
Main Floor Carpet
(UK)
30/3/05 / GPFC-rg
Filler Piece
Trunk
(UK)
Side
Trunk Trim
(Poland)
Sound Insulation
Trunk
(UK)
32
Loadfloor
(Poland)
Filler Piece
Trunk
(UK)
Rieter Group
Underfloor components & systems
Underfloor components with integrated acoustic and heat
damping functions also improve aerodynamics.
Mercedes A-Class
VW Polo
Audi Allroad quattro
BMK 2005
30/3/05 / GPFC-rg
33
Rieter Group
Innovation: Abaca fibers for the car industry
Abaca plant
BMK 2005
Fiber harvest
30/3/05 / GPFC-rg
34
Abaca fibers at Rieter‘s
production site
Rieter Group
Winner of the JEC Award
Underfloor shield of the new Mercedes A-Class,
reinforced with the natural fiber Abaca
JEC = Journals and Exhibitions on Composites
BMK 2005
30/3/05 / GPFC-rg
35
Rieter Group
Summary 2004
Operative performance of Textile Systems very good,
Automotive Systems with growth and improved EBIT
Both divisions well-positioned; innovative potential as
base for internal growth
Rieter Group in excellent financial shape, ready for the
expansion of its business
F
BMK 2005
30/3/05 / GPFC-rg
36
Rieter Group
Share price development 2004/2005
CHF
CHF
400
400
Rieter
SPI (Base adjusted)
380
380
360
360
340
340
320
320
300
300
280
280
05.01.2004
24.03.2005
24.03.05
05.01.04
BMK 2005
30/3/05 / GPFC-rg
37
Rieter Group
Strategy and Outlook 2005
Hartmut Reuter
Chief Executive Officer
BMK 2005
30/3/05 / GPFC-rg
38
Rieter Group
Group: Strategy and Outlook for 2005
Basic condition
Successful dual strategy with the two pillars
Automotive Systems und Textile Systems to be
continued
Strong balance sheet and strong cash flow allow
for strategic expansion of both divisions and
payback of excess liquidity to shareholders
BMK 2005
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39
Rieter Group
Strategy Textile Systems
Basic condition
Market leader for staple fiber machines and systems
as well as according technology components
Potential for expansion with man-made fibers
Broader product range for nonwovens market
Successful cost management in cyclic markets
BMK 2005
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40
Rieter Group
Strategic steps Textile Systems (1)
Expansion of presence in Asia
Doubling of production capacity in Changzhou/China
(today around 300 employees)
Use of the production capacities at the Suessen plant in
Pune/India (around 350 employees)
Expansion of the local sales, service and engineering capacities
BMK 2005
30/3/05 / GPFC-rg
41
Rieter Group
Strategic steps Textile Systems (2)
Strenghtening of market position for technology components
Full integration of Suessen
Organic growth based on innovation and expansion of customer group
External growth possible
BMK 2005
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42
Rieter Group
Strategic steps Textile Systems (3)
Strengthening of the nonwovens machinery business
New technologies developed (spunbond/meltblown)
Systems supply with partners successully carried out
Test installation in development center
in Montbonnot/France
BMK 2005
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Typical application in the medical
industry
43
Rieter Group
Strategy Automotive Systems
Basic conditions
Acknowledged as technology leader for acoustic and heat
management in motor vehicles
Market for acoustic and heat management grows faster than
the overall automotive production
Good market position in Europe, North and South America and
successful partnership with Nittoku/Japan
Potential in the growth markets Eastern Europe and Asia,
especially China
Good operative performance in very many business units,
potential for improvement identified (Roadmap)
BMK 2005
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44
Rieter Group
Strategic steps Automotive Systems (1)
Product innovations for internal growth
Injected Fiber
Process (IFP)
Better interior acoustics thanks
to Rieter Ultra Light ECO+
Underfloor parts reinforced
with natural fibers (Abaca)
BMK 2005
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45
Rieter Group
Strategic steps Automotive Systems (2)
Integration Magee Rieter
Full integration of Magee Rieter opens up
growth and cost reduction potential in Northern America
Potential for external growth
Industry consolidation in Europa/Germany not yet
finished
Potential for external growth
BMK 2005
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46
Rieter Group
Strategic steps Automotive Systems (3)
Expansion in the growth markets in Asia
JV with Nittoku in China and Thailand for Japanese customers
Branch office of Idea Institute in China
Delivery to Chinese and European producers in China under discussion
BMK 2005
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47
Rieter Group
Rieter Group: Values and Principles
TEMPEL
BMK 2005
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Rieter Group
Disclaimer
Rieter is making great efforts to include accurate and up-to-date information in this document,
however we make no representations or warranties, expressed or implied, as to the accuracy or
completeness of the information provided in this document and we disclaim 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 Rieter securities.
Investors must not rely on this information for investment decisions.
All statements in this report which do not reflect historical facts are statements related to the
future which offer 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.
BMK 2005
30/3/05
© 2005,
Rieter/ GPFC-rg
Holding Ltd., All rights reserved
49
Rieter Group