SWISSLOG 2014 FULL-YEAR RESULT

Transcription

1 Photo: Norman A. Müller SWISSLOG 2014 FULL-YEAR RESULT P. Hettich, Delegate of the Board of Directors Ch. Mäder, CFO 5 March 2015

2 Disclaimer This document contains certain forward-looking statements, recognizable by the use of words such as "expects", "anticipates", "future" or similar expressions or by discussion of strategies, plans or intentions, etc. Various factors, known and unknown risks and imponderabilities, many of which are beyond our control, may cause actual developments and results to differ substantially in the future from those reflected in forward-looking statements contained in this document. Against the background of such uncertainties, readers should not rely on forward-looking statements. Swisslog assumes no responsibility to update forward-looking statements or to adapt them to future events or developments. Page 2 / 5 March 2015 / 2014 Full-Year Result

3 Table of Content 1. Overview 2. Highlights of Healthcare Solutions 3. Highlights of Warehouse & Distribution Solutions Financials 5. Conclusion and Outlook Page 3 / 5 March 2015 / 2014 Full-Year Result

4 Overview Peter Hettich Delegate of the Board of Directors Page 4 / 5 March 2015 / 2014 Full-Year Result

5 Overview of Swisslog Overview Swisslog designs, develops and delivers best-in-class automation solutions for forward-thinking hospitals, warehouses and distribution centers Founded in 1900 with Headquarters in Buchs/Aarau, Switzerland employees, net sales MCHF 670 (2014) Healthcare Solutions (HCS) Warehouse & Distribution Solutions (WDS) 30 offices in over 20 countries in Europe, North America, Asia/Pacific and Middle East Customers in over 50 countries Transportation of goods & materials throughout healthcare facilities Packaging, storage, dispensing and inventory management of medication Design: Logistic Consulting / System Design Develop: Project Implementation / System Integration Deliver: Operation Support / Maintenance & Modernization KUKA majority owner with 94.1% shareholding Page 5 / 5 March 2015 / 2014 Full-Year Result

6 2014 Overview Business Activities Overview Overall unchanged positive drivers towards higher automation in hospitals, warehouses and distribution centers Ongoing sharpening of business strategies in both divisions with commitment to enlarge the product offering and to build more USP s Demanding business environment in main markets: - HCS North America due to reluctance to invest in hospital infrastructure (larger hospitals mainly) - Europe in general KUKA owns 94.1% of shares of Swisslog Holding AG Page 6 / 5 March 2015 / 2014 Full-Year Result

7 2014 Overview Financial Activities Overview Strong order intake: +4.9% (in constant currencies +7.4%) Increased order intake margin Strong order backlog: +15.9% (in constant currencies +12.7%) Growth in New Business and in Customer Service Increased net sales: +5.8% (in constant currencies +7.5%) Strong increase in New Business Reduced EBIT: -6.8% (in constant currencies -2.9%) Investments in business structures (higher fix costs) Lower net result: -63.0% (in constant currencies -57.1%) Extraordinary expenses related to transaction with KUKA of MCHF 4.4 on EBIT level Higher currency exchange losses (temporary valuations) Page 7 / 5 March 2015 / 2014 Full-Year Result

8 Highlights of Healthcare Solutions Peter Hettich Delegate of the Board of Directors Page 8 / 5 March 2015 / 2014 Full-Year Result

9 2014 Overview Highlights of Healthcare Solutions Stable development in Europe North America with stable order intake but further reduction in net sales Further growth in Asia Negative development of AMTS* in Europe and North America. Further reduced volumes in core business (tube systems) Solid development of ADMS** Strengthening of own offering: AMTS: New station and new carriers, new AGV ADMS: Inpatient and outpatient solutions, MedPortal software * Automated Materials Transport Systems ** Automated Drug Management Systems Page 9 / 5 March 2015 / 2014 Full-Year Result

10 Segments and Regions Development 2014 / 2013 Healthcare Solutions Highlights of Healthcare Solutions Segments Order intake Net sales Regions Order intake Net sales Obamacare with negative impact on tube systems in AMTS ADMS with return to growth AMTS* Europe CS stable on a high level ADMS** North America Customer Service Asia/ Pacific * Automated Materials Transport Systems ** Automated Drug Management Systems Page 10 / 5 March 2015 / 2014 Full-Year Result

11 High Ratio of Customer Service as Profitable Recurring Business Highlights of Healthcare Solutions Net sales in 2014 (in MCHF) 32% Customer Service* Customer Service business gains on importance due to growing installed base Installed base at around hospitals with increasing share of ADMS 100% = 205 Customer Service is of less cyclical nature 68% New Business Split in 2013: New Business 71% and Customer Service 29% * Systems operation, software support, preventive/reactive maintenance and spare parts Page 11 / 5 March 2015 / 2014 Full-Year Result

12 Important Orders in 2014 Healthcare Solutions Highlights of Healthcare Solutions Order value > MCHF 1.0 AMTS Leading Hospital Group, Germany Universitätsklinikum Jena, Germany Barnes Jewish Hospital South, USA Cook Children s Health Care System, USA Parkland Memorial Hospital, USA 1 Bendigo Hospital, Australia New Children Hospital, Australia Jiangsu Province Hospital, China Zhenjgjia Shengzhou Hospital, China ADMS Lozenetz Hospital, Bulgaria Liège Hospital, France Humber River, Canada Leading Hospital Group, USA Southeast Louisiana Veterans Health Care System, USA New Children Hospital, Australia The First Affiliated Hospital, Sun Yat-sen University, China Leading Hospital Group, Qatar 1 Extension contract Page 12 / 5 March 2015 / 2014 Full-Year Result

13 Strategic Thrusts Highlights of Healthcare Solutions STRATEGIC THRUSTS Strengthen position in material handling solutions Develop medication management solutions inpatient Develop medication management solutions outpatient Strengthen position in customer service Investment in solution and product management Investment in solution and product management Investment in solution and product management Investment in solution and product management Software platform Software platform Software integration Software platform KEY INITIATIVES Positioning of product lines by market Differentiation through product featuring (Global PTS) Capitalize on TransCar3 (AGV) Adaptation of pharmacy automation to market requirements (PillPick) Supply chain management in hospitals Vision dockside to bedside Extend local China organization to support business growth Leverage outpatient solution to other markets Differentiate through additional features Automation Academy Network Operating Center (NOC) Infrastructure modernization (new station / new Xpress) Page 13 / 5 March 2015 / 2014 Full-Year Result

14 Highlights of Warehouse & Distribution Solutions Peter Hettich Delegate of the Board of Directors Page 14 / 5 March 2015 / 2014 Full-Year Result

15 2014 Overview Highlights of Warehouse & Distribution Solutions Very strong order intake and order backlog Significant increase of Customer Service order intake Fix cost increase due to additional sales resources (North America and APAC) and investment in global SAP solution Increase of standardization through further strengthening of specific end customer market segments (focus) and implementation of solution management Continued focus and investments in software and controls Good progress in SAP rollout Page 15 / 5 March 2015 / 2014 Full-Year Result

16 Segments and Regions Development 2014 / 2013 Warehouse & Distribution Solutions Highlights of Warehouse & Distribution Solutions Segments Regions Customer Service with very strong Order intake Net sales Order intake Net sales order intake but not (yet) increased net sales New Business Customer Service Europe North America Asia/ Pacific Further increase of order intake in North America despite an already high level in previous year Further growth in APAC Page 16 / 5 March 2015 / 2014 Full-Year Result

17 High Ratio of Customer Service as Profitable Recurring Business Net sales in 2014 (in MCHF) Highlights of Warehouse & Distribution Solutions Customer Service business with over-proportional share on total profitability 63% New Business 100% = % Customer Service* Customer Service is of lesscyclical nature Installed base around distribution centers and warehouses Global network for Customer Service established Split in 2013: New Business 56% and Customer Service 44% * Retrofit projects, systems operation, software support, preventive/reactive maintenance and spare parts Page 17 / 5 March 2015 / 2014 Full-Year Result

18 Important Orders in 2014 Warehouse & Distribution Solutions Order value in MCHF Order value Food & Beverage Retail Pharma Other Highlights of Warehouse & Distribution Solutions > 20 Varner, Sweden SCA, Netherlands 1 Banking industry, South East Asia < 20 Norbert Dentressangle, Netherlands Unil, Norway Food Manufacturer, UK Coffee Producer, USA Inghams Chicken, Australia CP Food, China Food Manufacturer, Singapore Rusta, Sweden Schenker Logistics, Sweden Competec Brack, Switzerland Cosmetic products distributor, USA Catch of the day, Australia IKEA Distributor China, China Shilla Duty Free Shop, Korea 1 Order received in 2013, but only recorded after receipt of building permission in 2014 B. Braun Melsungen, Germany Janssen, Italy Baxter, USA Medline, USA SBE, Italy Tire Manufacturer, Sweden Riwisa, Switzerland Trisa, Switzerland Winterhalter+Fenner, Switzerland Automotive Company, UK Federal Mogul, USA CT Department of Transportation, USA PT Djarum Tobacco, Indonesia Shanghai Cigarette Factory, China Page 18 / 5 March 2015 / 2014 Full-Year Result

19 Strategic Thrusts Highlights of Warehouse & Distribution Solutions STRATEGIC THRUSTS Industry segment growth Product innovations Customer Service growth Geographic expansion Business optimization KEY INITIATIVES E-Commerce Focus (CarryPick, AutoStore, Tornado etc.) 3PL/4PL solution cooperation Industry segment strategies, Marketing and Solution Management Extended WM6 functionalities Controls harmonization Light goods innovations Crane innovations (Vectura/Tornado) Value added partner-ships Further leverage installed base and conversion via enhanced account management System operations blueprint Spare parts sales portal and better geographic coverage Product lifecycle Management NA light goods market expansion EMEA expansion: Middle East APAC expansion: Korea, Hong Kong and others APAC local value add expansion SAP Roll-Out Procurement Software governance Closed loop learning in projects CoPQ reduction program Organizational excellence programs Page 19 / 5 March 2015 / 2014 Full-Year Result

20 2014 Financials Christian Mäder CFO Page 20 / 5 March 2015 / 2014 Full-Year Result

21 Key Financials Swisslog Group in MCHF Change in % Order intake % 7.4% Order backlog % 12.7% CHF LOC 2014 Financials Increased order intake in New Business and Customer Service Increased and very strong order backlog Improved net sales Net sales % 7.5% EBITDA % -2.9% EBIT % -2.9% EBIT margin 2.9% 1 3.2% Net result % -57.1% Slightly reduced operating results due to lower margins (mix) and increased fix costs Reduced net result due to onetime expenses related to KUKA transaction Increased FTEs in line with business growth (mainly Customer Service) Employees (FTE) % 1 Before transaction expenses KUKA Page 21 / 5 March 2015 / 2014 Full-Year Result

22 Key Figures Development Swisslog Group 2014 Financials Order intake (in MCHF) Net sales (in MCHF) HCS WDS HCS WDS EBIT (in MCHF) EBIT margin (%) Before restructuring expenses from Score! 2 Before transaction expenses KUKA Page 22 / 5 March 2015 / 2014 Full-Year Result

23 Geographical Net Sales Distribution 2014 Financials Net sales in 2014 (in MCHF) and regional split Share in % Asia/Pacific North America Europe HCS with strongest pillar in North America WDS main pillar in Europe Growth in Asia due to expansion of footprint 49 Swisslog Group 23 Healthcare Solutions 61 Warehouse & Distribution Solutions Regional split in 2013: Asia/Pacific 17%; North America 32% and Europe 51% Page 23 / 5 March 2015 / 2014 Full-Year Result

24 Key Financials Healthcare Solutions in MCHF Change in % CHF LOC Order intake % 1.1% Order backlog % 7.6% 2014 Financials Stable order intake but positive book to bill ratio development Significantly increased order backlog Reduced operating results due to lower net sales in North America Net sales % -1.7% EBITDA % -8.3% EBIT % -14.6% EBIT margin 6.5% 1 7.4% Employees (FTE) % 1 Before transaction expenses KUKA Page 24 / 5 March 2015 / 2014 Full-Year Result

25 Key Figures Development Healthcare Solutions 2014 Financials Order intake (in MCHF) Net sales (in MCHF) EBIT (in MCHF) EBIT margin (%) Before restructuring expenses from Score! 2 Before transaction expenses KUKA Page 25 / 5 March 2015 / 2014 Full-Year Result

26 Key Financials Warehouse & Distribution Solutions in MCHF Change in % Order intake % 10.2% Order backlog % 15.0% Net sales % 12.1% EBITDA % 19.4% EBIT % 29.2% CHF LOC 2014 Financials Increased order intake in Customer Service Strong order backlog Improved net sales due to strong order backlog beginning of the year Improved operating results due to increased net sales Increase of FTEs in line with business growth (mainly Customer Service) EBIT margin 3.0% 1 2.7% Employees (FTE) % 1 Before transaction expenses KUKA Page 26 / 5 March 2015 / 2014 Full-Year Result

27 Key Figures Development Warehouse & Distribution Solutions 2014 Financials Order intake (in MCHF) Net sales (in MCHF) EBIT (in MCHF) EBIT margin (%) Before restructuring expenses from Score! 2 Before transaction expenses KUKA Page 27 / 5 March 2015 / 2014 Full-Year Result

28 EBIT Change Effects Swisslog Group 2014 Financials in MCHF % 2.9% EBIT Volume Margin Fix costs Volume Margin Fix costs HQ EBIT HCS WDS 1 Before transaction expenses KUKA Page 28 / 5 March 2015 / 2014 Full-Year Result

29 Below EBIT Line Swisslog Group in MCHF Change in % EBIT % -2.9% Transaction expenses EBIT after transaction expenses Financial income Financial expenses Net financial result Share of loss of an associate CHF LOC % -23.9% Financials Transaction expenses KUKA contain mainly: - M&A expenses - Early termination of share plan Negative net financial result due to (temporary) currency exchange losses Stable tax expenses due to unchanged operational results (before transaction expenses) Reduced net result Income taxes Net result % -57.1% Page 29 / 5 March 2015 / 2014 Full-Year Result

30 Consolidated Balance Sheet Swisslog Group in MCHF in % Non-current assets excluding goodwill % Goodwill % Non-current assets % Inventories, receivables and other current assets % Cash % Current assets % TOTAL assets % Equity % 2014 Financials Higher non-current assets due to increase of own offering Increased current assets due to higher net sales Reduced equity due to higher pension liabilities Stable and solid net working capital and net cash Non-current liabilities % Provisions % Financial liabilities % Other current liabilities % Current liabilities % TOTAL equity and liabilities % Net working capital Net cash Page 30 / 5 March 2015 / 2014 Full-Year Result

31 Consolidated Cash Flow Statement Swisslog Group in MCHF Cash flow before working capital changes Cash flow from working capital changes Net cash flow from operating activities Financials Stable operating cash flow before and after working capital changes Increased investing activities Increased cash flow from financing activities due to higher debt Net cash flow from investing activities Net cash flow from financing activities Currency translation differences Net change in cash Cash at beginning of period Cash at end of period Page 31 / 5 March 2015 / 2014 Full-Year Result

32 Operating Cash Flow and Margin Development Swisslog Group 2014 Financials in MCHF Reduced operating cash flow (before working capital changes) due to lower operational results Significant volatility in working capital due to changes in advance payments Different working capital models in HCS and WDS +3.4% +3.8% +3.1% 2.2% +2.1% Working capital changes: Net change: Page 32 / 5 March 2015 / 2014 Full-Year Result

33 CAPEX and CAPEX in % of Net Sales 2014 Financials (in MCHF) Higher CAPEX to support innovation and to increase own value add as well as to improve and standardize processes Major CAPEX 2014 Global SAP Software and controls WDS Software HCS ADMS product portfolio HCS Replacements 2.1% 2.3% 2.3% 2.5% 1.6% Page 33 / 5 March 2015 / 2014 Full-Year Result

34 Conclusion and Outlook Peter Hettich Delegate of the Board of Directors Page 34 / 5 March 2015 / 2014 Full-Year Result

35 Conclusion and Outlook Swisslog Group Conclusion and Outlook Conclusion Positive development of order intake, order backlog and net sales Operational results (EBITDA, EBIT) as expected Reduced net result due to transaction expenses Outlook 2015 (based on current currency levels and barring unforeseen events) Continuation of focused strategy Leverage on joint opportunities with KUKA Negative translation effects on results, due to devaluation of currencies against CHF Mid-term target Best-in-class products and services EBIT margin target of around 5% in stable business environment Page 35 / 5 March 2015 / 2014 Full-Year Result

36 Calendar Conclusion and Outlook 26 March 2015: Annual General Meeting 5 May 2015: First quarter result 5 August 2015: Half-year result 11 November 2015: Third quarter result Page 36 / 5 March 2015 / 2014 Full-Year Result

37 Reto Sidler Head Corporate Communications Tel Page 37 / 5 March 2015 / 2014 Full-Year Result