Gurit 1HY 2014 Results

Friday, August 22, 2014

CorporateSlide 2

This presentation may include forward-looking statements that reflect the intentions, beliefs or current expectations and projections of Gurit Holding AG about the future results of operations, financial condition, liquidity, performance and similar circumstances.

Such statements are made on the basis of assumptions and expectations which may prove to be erroneous, although Gurit Holding AG believes them to be reasonable at this time.

Corporate

Key Messages Business Result 1HY 2014

Strong sales development in all businesses and markets, thanks to recovery in the global wind energy market, but also high demand in some segments of the marine market. Component business continues to grow at double-digit rates.

Profitability continues to recover with an operating profit of CHF 7.7 million or 4.6% of net sales, and CHF 7.1 million net profit after a loss of CHF 2.4 million for the same period last year.

CAPEX limited with CHF 4.3 million, partially for some factory extensions in Automotive and Tooling, and for Gurit (Hungary).

Net cash flow from operating activities negative CHF 1.8 million due to increased NWC, driven by higher sales and some inventory build-up.

Balance sheet remains very solid with an equity ratio of 67%.

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CorporateSlide 4

Further Key Notes on Business Results 1HY 2014

Net sales 1HY 2014vs 1HY 2013

Earnings

Cost and Expenses

Cash flow andBalance Sheet

Group CHF 167.0 million; +28.8%CM Wind Energy CHF 66.8 million; +22.8% CM Other CHF 62.0 million; +13.4% Tooling CHF 25.2 million; +136.3%Automotive CHF 9.1 million; +31.7%Eng. Structures (ES) CHF 4.0 million; +29.8%

Operating profit CHF 7.7 million, up from CHF 0.6 million in 1HY 2013

Operating profit margin at 4.6%, up from 0.5% in 1HY 2013

Profit for the period of CHF 7.1 million after CHF -2.4 million in 1HY 2013

Improved loading, particularly in Tooling and carbon prepreg manufacturingRamp-up inefficiencies in AutomotiveSome reduced operational issues in Gurit Composite Materials Select increases in SG&A to strengthen the organisation in Sales, HR and IT

Capex contained (PPE, Intangibles): CHF 4.3 million or 2.6% of net sales

Operating Cash flow CHF -1.8 million; after + CHF 1.7 million a year ago

Still solid equity ratio of 67% (71% at the end of December 2013)

Corporate

0

5

10

15

20

25

30

35

40

1HY 2011 2HY 2011 1HY 2012 2HY 2012 1HY 2013 2HY 2013 1HY 2014

Tooling Automotive Engineered Structures

0

20

40

60

80

100

120

140

1HY 2011 2HY 2011 1HY 2012 2HY 2012 1HY 2013 2HY 2013 1 HY 2014

Wind Energy Aerospace Industrial & Marine

Net Sales Development by Target Markets

Slide 5

Gurit Composite Materials

Wind Energy sales continue to recover steadily

Aerospace sales with single-digit growth

Further double-digit growing sales in Marine and Industrial applications

Gurit Systems and Engineering

Strong sales recovery which started in Tolling in 2HY 2013 continues with large deliveries into Europe and China

Continuously strong growth in Automotive and Engineered Structures

MCHF

MCHF

Corporate

Strategy Deployment 2014 – Key Points

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• Automotive exterior panel press application for bigger series progressed, first pressed parts delivered to first customer

• Increased sales effort and successful qualifications for new offerings for existing and new composite materials markets (e.g. visual carbon prepreg for automotive, balistic protection material, etc.)

• Won first qualifications for new PVC offering and started to address the PVC logistics issues in Europe

• Selected for a material qualification programme by Boeing

• New operations in Hungary went live with first successfull deliveries of bus components

Development by Target Markets

Wind Energy

Wind Energy

Slide 8

Wind Energy

Wind Energy – Strategy and Achievements

0

10

20

30

40

50

60

70

80

90

2007 2008 2009 2010 2011 2012 2013

Number of Gurit Customers

America

Asia / Pacific

Europe

Strategy Core materials: move from #3 to #2

position with 25-35% market share Carbon prepregs: maintain leading

position with shares >60% Optimize factory loadings and increase

efficiency Develop further cost-efficient, enabling

technologies to help reduce cost of KWH

Recent achievements Maintained leadership position in carbon

fibre prepregs SparPregTM, VelinoxTM and AirstreamTM

technology for cost-efficient, low-void, thick laminates at ambient temperatures

Extended Balsa wood offering to new customers, doubled run rate of sales

* Source: GWEC

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0

10

20

30

40

50

60

70

2011 2012 2013 2014 2015 2016 2017

GW installed annually*

America

Asia / Pacific

EMEA

Wind Energy

Wind Energy – Results and Outlook

010203040506070

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2

CHFm Wind Energy: Quarterly Net Sales

Slide 10

Market environment 2014 USA – Continued at good pace following the

recovery during the second half of 2013 Asia – marked improvement, still some price

pressure and bad payment conditions requiring containment measures

Europe – stable in soft market, steady customer demand, apart from glass prepreg

Sales 1HY 2014 Net sales of CHF 66.8 million, up 22.8% vs.

1HY 2013, and 6.0% vs. 2HY 2013Outlook Asia: Strong rebound 2014 but tough terms

(prices, payment terms) US: Good momentum due to PCT reaching

out to 2014 for started projects and expected to be extended for 2015

Momentum to come from extended core material offering

0

50

100

150

200

250

2009 2010 2011 2012 2013

CHFm Wind Energy: Annual Net Sales

Aerospace

Aerospace

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Aerospace

Aerospace – Strategy and Achievements

Strategy Maintain leading position in aircraft interiors

and certain structural applications at Airbus Develop position in Boeing and others Attack structural material market for

business and regional jets as well as for nacelles

Focus on next-generation, cost-out materials

Recent achievements Cost-out efforts on aerospace materials Intensive customer care, new sales leads

in traditional and new geographic areas Selected for a production qualification

program by Boeing Upgrading the product offering and

innovations

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0

100

200

300

400

500

600

2012 2016

CHFm Industry Growth Potential –

Accessible Market

0

50

100

150

200

250

Boeing interiors andsecond. struct.*

Nacelles Structural materialBusiness and regional jets

CHFm

Size of new Aero market opportunities

* Also included in current accessible market

Aerospace

Aerospace – Results and Outlook

Market environment Steady Aerospace market with

growing build rates for some programs Some cost-out pressures creating

new offering opportunities, as well

Sales 1HY 2014 Net sales of CHF 24.5 million

Up 4.1% vs 1HY 2013 and 4.4% vs 2HY 2013

Outlook Gain market share in mid size OEMs Qualification in Boeing with significant

mid-term sales potential

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9.5

10

10.5

11

11.5

12

12.5

13

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2

CHFm Aerospace: Quarterly Net Sales

0

20

40

60

80

2009 2010 2011 2012 2013

CHFm Aerospace: Annual Net Sales

Industrial & Marine

Industrial & Marine

Slide 14

Industrial & Marine

Industrial & Marine –Strategy and Achievements

Strategy Marine Penetrate all geographies and segments

Mediterranean, Middle East and Far East All boat sectors incl. commercial, military

and production vessels

Strategy Industrial Penetrate the ballistic protection prepreg market

with existing and slightly adapted products. Use distribution model and full material offering tactically for new industrial applications

Sell existing and slightly adapted prepreg, and formulated systems into Automotive markets for structural and visual carbon applications

Recent achievements Significant amount of superyacht projects won Increased proximity to ballistic protection and

automotive customers

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0

50

100

150

2010 2014

Marine Growth Potential

Asia / Pacific

North America

Europe

CHFm

0

50

100

150

200

250

Civil constructionapplications

Other industrial (e.g. Medical,Ballistic , LNG Carriers,

Consumer electronics etc..)

Automotive: Materials forbody panels, clear carbon,

structural parts

CHFmMinimum size of new Industrial

market opportunities

Industrial & Marine

Industrial & Marine –Results and Outlook

Market environment Marine business recovering gradually with

more momentum in superyacht and race boats, regionally in Europe and UAE

Addressable Automotive composite material market growing strongly

Sales 1HY 2014 Net sales of CHF 37.5 million

Up 20.5% vs. 1HY 2013 and 18.1% vs. 2HY 2013, in particular due to large deliveries to the superyacht segment

Outlook Development of sales into new markets in

particular ballistic protection and Automotive

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05

10152025

Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2

Industrial and Marine: Quarterly Net SalesCHFm

*: Excluding engineering sales

0

10

20

30

40

50

60

70

2009 2010 2011* 2012* 2013*

Industrial and Marine: Annual Net SalesCHFm

Tooling

Tooling

Slide 17

Tooling

Tooling – Strategy and Achievements

Strategy Asia: Leader in affordable, quickly available

quality moulds for wind turbine blades Internationally: High quality, custom tailored,

affordable, quick and higher-volume mould-making and outsourcing partner of choice

Penetrate residual European and American client base during 2014/2015 also for multi-megawatt projects (Blade length >70 m)

Widen scope of Tooling beyond Wind Energy Transportation racks and fixtures Marine: Plugs, moulds for spars and hulls

Recent achievements Taken full benefit from recovered wind energy

market Improved production efficiency Won significant new customers in Europe Improved mould heating and cooling systems

with new modules for high-end customers

Source: Gurit / Market research estimates

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Tooling

0

10

20

30

40

50

2009 2010 2011 2012 2013

CHFm Tooling: Annual Net Sales

0

5

10

15

Q1 2012Q2 Q3 Q4 Q1 2013Q2 Q3 Q4 Q1 2014Q2

CHFm Tooling: Quarterly Net Sales

Tooling – Results and Outlook

Market environment Continuous strong demand for new moulds in

all regions Trend to longer, special moulds in small series,

but also increased needs for repetitive orders for large series of moulds

Trend to outsource mould manufacturing continues at OEMs

Sales 1HY 2014 Net sales of CHF 25.2 million

Up 136.3% vs. 1HY 2013 Factory fully loaded

Outlook Good market conditions with strong demand

should continue to prevail High production efficiency should continue to

ensure a strong operating profit contribution from this activity

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Pre-acquisition

Automotive

Automotive

Slide 20

Automotive

Automotive – Strategy and Achievements

Strategy Automotive Pursue the two strategic avenues:

Further grow client/project base for complex, smaller series, class-A, lightweight exterior car body panels

Launch press mould technology, class-A, up to 200oC temperature resistant, less complex, higher volume exterior panels using the CBS material matrix. Complete industrialization of press manufacturing process

Recent achievements Production site expansion in UK completed Transfer of first automotive parts to Hungary initiated First pressed visual carbon roof delivered to customer Press curing cycle time significantly reduced to around 7

minutes

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0

20

40

60

80

100

120

Car body panels up to 25'000 upa

CHFmSize of new Automotive press technology

parts market

Automotive

0

5

10

15

20

2009 2010 2011 2012 2013

CHFm Automotive: Annual Net Sales

Automotive – Results and Outlook

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0

1

2

3

4

5

Q1 2012Q2 Q3 Q4Q1 2013Q2 Q3 Q4Q1 2014Q2

CHFm Automotive: Quarterly Net Sales

Market environment Increasing interest of the automotive

market for composite material solutions

Sales 1HY 2014 Net sales of CHF 9.1 million

Up +31.7% vs. 1HY 2013 thanks to larger series and increased customer base

Outlook Improve efficiency of hand layup

production process Further reduce end to end press

technology production costs Finalize and validate industrialization

concept for preforming and post press finishing of panels

Corporate

Engineered Structures

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Corporate

Engineered Structures –Strategy and Achievements

Strategy Establish Gurit early in new applications in

existing and newly emerging or converting industries

Leverage leading composites engineering, prototyping, tooling and manufacturing capabilities

Assess new industry trends and approach key players in concise manner

Address new markets outside traditional Gurit target markets

Recent achievements Large follow up orders for double decker

commuter buses Set up of an Hungarian manufacturing base as

a lower cost hub for manufacturing of composite components

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Corporate

Engineered Structures –Results and Outlook

Market environment Hardly any existing market data Engineering for marine, construction and

new special projects Promote Gurit as expert of complex, big,

lightweight structures

Sales 1HY 2014 Net sales of CHF 4.0 million

Up +29.8% vs. 1HY 2013 Growth mainly due to increased

component sales

Outlook Volume growth thanks to additional

component sales

0

1

2

3

Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 Q4 Q1 2014 Q2

Eng. Structures: Quarterly Net SalesCHFm

Slide 25

01234567

2011 2012 2013

CHFm Eng. Structures: Semi‐annual Net Sales

Financial Results 1HY 2014

Corporate

Net Sales Analysis by Market

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1HY 2012 2HY 2012 1HY 2013 2HY 2013 1HY 2014

Materials Systems & Engineering

195.6 155.4 129.7 151.5 167.0

Gurit Composite Materials sales continue to recover. Still solid growth in Gurit Composite Systems and Engineering.

• Gurit Composite Materials sales confirm the recovery started in summer 2013, driven by some strong demand in Marine and the recovering Wind Energy market.

• Continuous high double-digit growth in Gurit Composite Systems and Engineering thanks to strong demand in Tooling, extended series of car body parts and growth in the bus components business.

Net sales in CHFm

∆ 1HY 2014 vs 1HY 2013

∆ 1HY 2014 vs 1HY 2013

FX adj.Composite Materials 128.8 109.1 18.1% 19.2%CompositeSystems and Engineering

38.2 20.6 85.5% 86.6%

Total Net Sales 167.0 129.7 28.8% 29.9%

1HY 2013Net salesin CHFm

1HY 2014

Corporate

Operating Profit and EBIT Development

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Operating profit margin of 4.6% during 1HY 2014

17.2

-4.5 0.6

5.9

7.7

17.2

-3.3 0.6

5.9

9.8

1HY 2012 2HY 2012 1HY 2013 2HY 2013 1 HY 2014

Operating profit (CHFm) EBIT (CHFm)

9.0%

-4.6%

-1.3%

3.4%

5.1%

8.8%

-2.9% 0.5%

3.9%4.6%

1HY2012

2HY2012

1HY2013

2HY2013

1HY2014

RONA (incl. Goodwill) Operating profit (% Net sales)

• Operating profit and profit margin continue to rise thanks to

• increased volumes• loading and efficiency gains,

particularly in Tooling • some tailwind from

procurement

• EBIT favorably impacted by CHF 2.1 million gain on real estate sale

• No significant change in the asset basis of the Company, hence Rona follows essentially the Operating profit development.

Corporate

Operating Profit Bridge 1HY 2013 to 1HY 2014

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A largely volume driven, significant recovery of the operating profit

Corporate

2.4 2.5

0.70.4

0.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Tax expense atthe average taxrate of 25%

Non tax‐effectedlosses

Tax rate mix Other effects Actual incometax expense

Exchange Result and Tax

Slide 30

Stable exchange result and improved tax ratio

0.9

-1.6

0-0.8

0.3

1HY 2012 2HY 2012 1HY 2013 2HY 2013 1HY 2014

Closely monitored and hedged balance sheet exposures keep exchange result small

Improved income tax rate thanks to higher profits in low income tax jurisdictions and reduced non tax effected losses

Exchange result (in CHFm)

Income tax expense (in CHFm)

Corporate

Net Result 1HY 2014

Slide 31

Profit recovery started in summer 2013 continues

CHFm % NS CHFm % NSNet sales 167.0 100.0% 129.7 100.0%Gross margin 81.9 49.0% 60.5 46.7%Operating expenses -74.3 -44.5% -60.7 -46.8%Operating profit before one-offs 7.6 4.5% -0.2 -0.2%One-off items 0.1 0.1% 0.8 0.6%Operating profit 7.7 4.6% 0.6 0.5%Non-operating & extraordinary result 2.1 1.2% 0.0 0.0%EBIT 9.8 5.8% 0.6 0.5%Interest income and expenses -0.3 -0.2% -0.3 -0.2%Exchange gains and losses 0.3 0.2% 0.0 0.0%Other financial income and expenses -0.1 -0.1% -0.1 -0.1%Taxes -2.5 -1.5% -2.5 -1.9%Net result 7.1 4.3% -2.4 -1.8%

Earnings per bearer share

Consolidated P&L 1HY 2014 1HY 2013

CHF 15.19 CHF -5.05

Corporate

1.7

-1.8

1HY 2013 1HY 2014

Cash flow from operating activitiesin CHFm

Cash Flow

Slide 32

Increasing net working capital following sales recovery reduces the cash flow

6.4

-0.9

Dec 2013 June 2014

Net cash in CHFm

1HY 2014 1HY 2013

CHFm CHFmEBIT 9.8 0.6Depreciation, amortisation, impairment 4.5 5.3Change in working capital -10.6 -4.6Other cash flow from operating activities -5.5 0.4Net cash flows from operating activities -1.8 1.7Purchase of PPE and Intangibles -4.3 -2.8Proceeds from sale of PPE 2.2 0.0Change in borrowings 5.7 -9.6Distribution to shareholders -3.5 -7.0Acquisition of subsidiaries 0.0 0.2Repayments of loans receivable 0.0 0.4Purchase of treasury shares -0.2 -0.2CHANGE IN CASH AND CASH EQUIVALENTS -1.9 -17.3

Consolidated Cash Flow

Corporate

Balance Sheet

Slide 33

Strong equity ratio of 67% despite increased net working capital

• The net working capital increase required some additional borrowing

• No significant changes in payment terms granted to customers

• Stable fixed assets as investments did not exceed depreciation

• Slightly reduced, but still solid equity ratio of 67%

CHFm % CHFm %Cash and cash equivalents 21.7 9% 23.1 10%Trade receivables 77.5 32% 63.0 28%Inventories 47.7 20% 37.5 17%Other current assets 17.6 7% 21.1 10%Deferred income tax assets 1.5 1% 1.0 0%Property, plant and equipment 70.0 29% 70.3 32%Intangible assets 5.4 2% 5.3 2%Other non-current assets 0.2 0% 0.9 0%TOTAL ASSETS 241.6 100% 222.1 100%

CHFm % CHFm %Borrowings 22.6 9% 16.7 8%Trade payables 28.0 12% 19.4 9%Other current liabilities 22.5 9% 23.7 11%Deferred income tax liabilities 0.7 0% 0.8 0%Provisions 6.1 3% 4.1 2%Equity 161.7 67% 157.3 71%TOTAL LIABILITIES AND EQUITY 241.6 100% 222.1 100%

Consolidated Assets Jun 2014 Dec 2013

Consolidated Liabilities and Equity Jun 2014 Dec 2013

Outlook

Corporate

Outlook

Gurit expects similar business conditions for the remainder of 2014 and an operating profit margin around the level achieved in the first half year.

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