2000 Semi Annual Pres En

7/28/2019 2000 Semi Annual Pres En

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Rieter Group

Rieter Group

Presentation

by

Dr. Hans Rudolf WidmerChief Financial Officer

August 25, 2000

1st Half Year 2000:

Results

Semi-annual report 25.8.2000 / HRW-ip


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1st Half Year 2000 Achievements

Rieter Group

Rieter Group

Net profit up 57% and EPS up 56% driven

by extraordinary textile machinery market

recovery and by strong operating

performance and cash flow

Voting right limitations abolished

Both core activities strengthened through

acquisitions

Sales 1'416 20

Net profit 82.6 57

EPS (in CHF) 17.33 56

1-6

2000

Change

in %mio CHF


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Rieter Group

Period orders doubled due to explosiverecovery of textile machinery markets

and competitive machinery product portfolio

EBIT margin of 8.9% based on rigorouscost improvement and price discipline

in 1999

ICBT acquisition strengthens product

portfolio as system supplier and opens

entry into non-woven

Rieter Textile Systems

Orders 613 106Sales 469 31

EBIT 41.2 497

- in % co 8.9

1-62000

Changein %mio CHF


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Rieter Group

Above market growth sales increase

of 15% driven by growing US and European

markets and by Latin American recovery

EBIT of 7.4% benefiting from volume

effects and productivity gains

Pioneering Rieter Ultra Light, winnerof the Pace Award, continues to drive

North American and European order

flow for years 2002 onwards

Position as full service supplier strengthened

by acquisition of majority stake in Idea,

a well known Italian car engineering and

designing company with sales of 50 mio CHF

Rieter Automotive Systems

Sales 941 15EBIT 68.5 23

- in % co 7.4

1-62000

Changein %mio CHF


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Sales by Division

Rieter Group

1st Half Year Sales

Textile

Systems469

Automotive

Systems941

33%

67%

Textile

Systems358

Automotive

Systems816

Other Business

Activities10

30%

69%

+31%

+15%

Other BusinessActivities

6

2000: 1'416 mio CHF+20%

1999: 1'184 mio CHF


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1st Half Year 2000: 19.6% Sales IncreaseSupported by Both Core Activities

Rieter Group

1'000

1'100

1'200

1'300

1'400

1'500

mio CHF

1'184

1'416

48.1

75.7

57.7 5.049.3

-3.8


1st half year

1999

1st half year

2000

AutomotiveSystems

TextileSystems

acquisition

ICBT

currency effects

AutomotiveSystems

TextileSystems

other

+19.6%+19.6%

+4%

+6.4%

+4.9% +0.4%

+4.2% -0.3%


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Sales Trending Upwards Since Mid-Year 1999

Rieter Group

* includes 2 months sales ICBT

500

750

1'000

1'250

1'500

98 (1-6) 98 (7-

12)

99 (1-6) 99 (7-

12)

2000

(1-6)

+19.6%+19.6%

19981-6

19987-12

19991-6

19997-12

20001-6

mio CHF

1'3641'279 1'251

1'416*

+11.5% -9.5% -13.2% -2.1% +19.6%

sales growthin %

vs.

correspondingpre-year

semester

1'184


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Rieter Textile Systems: Market Development

Rieter Group

1st Half Year Sales

2000: 469 mio CHF

Africa/other17

Asia 189

28%

40%

17%

11%North

America

81

Europe132

Latin America

49 4%

+35%(vs. 1999)

Half Year Orders

1-6/2000:

RegionalImportanceof Orders

Western Europe2

China3

South East Asia4

Nafta5

339 297 345

613528

482423

0

200

400

600

800

1997 1997 1998 1998 1999 1999 2000

mio CHF

432 432

1-6 7-12 1-6 7-12 1-6 7-12 1-6

Turkey1


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1st Half Year 2000: Strong Sales Growth andEfficient Cost Management

Rieter Group

Sales Operating Costs

664.2613.5

667.8

49.9%

53.4%

48.0%

0

200

400

600

800

1998 1999 2000

45%

50%

55%

60%

Cost ratio(in % of co)

Operating costs

(mio CHF)

48.0%

1-6 1-6 1-6


515358

469

841

816

941

0

250

500

750

1'000

1'250

1'500

1998 1999 2000

1'364

1'184

1'416

AutomotiveSystems

TextileSystems

mio CHF +19.6%+19.6%

other

1-6 1-6 1-6

(employee costs, operating costs, depreciation)


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1st Half Year 2000

Rieter Group

Material Costs

569.6

475.7

618.3

42.8%

41.4%0

100

200

300

400

500

600

700

1998 1999 2000

40%

43%

45%

48%

50%in % of comio CHF

44.5%

1-6 1-6 1-6

Corporate

output 100 100

Materialcosts 44.5 41.4 310

Operatingcosts 48.0 53.4 +540

Operatingprofit(EBIT) 7.5% 5.2% +230

1-62000

1-61999in %

Changein BasisPoints

Source of EBIT Growth


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1st Half Year 2000: Group EBIT Up 76% Supportedby Strong Textile Division EBIT Performance

Rieter GroupSemi-annual report 25.8.2000 / HRW-ip

Textile

Systems

Automotive

Systems

59.3

104.3

6.9

41.2

-3.155.5 -5.4

68.5

0

25

50

75

100

125

1-6 I/99 I/00 I/99 I/00 I/99 I/00 I/99

mio CHF

8.9% 2.0%

7.4% 7.0%

7.5% 5.2%

Group EBITGroup

+497%+497%

+76%+76%+23%+23%

1-6/00 1-6/99 1-6/00 1-6/99 1-6/00 1-6/99 1-6/00 1-6/99


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1st Half Year 2000: Cash Flow and Net ProfitRebound to 1998 Levels

Rieter Group

135.1

107.2

142.4

10.2%

9.3%

5.9%

0

25

50

75

100

125

150

175

1998 1999 2000

5.0%

7.5%

10.0%

12.5%

15.0%

in % of comio CHF

10.2%

Cash flow

82.6

52.7

83.2

5.9%

4.6%

6.3%

0

20

40

60

80

100

1998 1999 2000

4%

5%

6%

7%

8%

in % of comio CHF

5.9%

Net Profit

1-6 1-6 1-6 1-6 1-6 1-6


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Global PresenceEmployees by Countries

Rieter Group

1st Half Year

4%

12%

9%

13%

15%

8%

20%

5%

4%3% 7%

4%

12%

9%

13%

15%

8%

20%

5%

4%3% 7%

Switzerland

1'790

Germany1'505

Czech Rep.1'112

France

1'420GreatBritain

476

Italy

966

USA2'491

Brazil561

Canada424

India348

Others804

2000: 11'897*

(as at June 30)

6%9%

9%

13%

17%

8%

22%

4%3%

3% 6%

6%9%

9%

13%

17%

8%

22%

4%3%

3% 6%

Switzerland

1'958

Germany1'495

Czech Rep.1'092

France

1'040GreatBritain

646

Italy

962

USA2'368

Brazil517

Canada

383

India351

Others687

China86

France295

USA33

ICBT: 414(included)*

1999: 11'499

(as at June 30)


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Key Performance Data: Healthy Growth of1st Half Year Results

Rieter Group

January-June 2000 January-June 1999Change

in %

Sales 1'416 1'184 20

EBIT 104.3 59.3 76

Net profit 82.6 52.7 57

Minorities -9.7 -5.4 80

Total assets 2'381.9 2'156.2 11

Equity 878.8 825.7 6

Number of employees 11'897 11'499 3

mio CHF

1 2000: includes 2 months of ICBT acquisition

1

2

2 Approx. 200 mio assets from ICBT


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Changein %


Key Data Per Share are up also

Rieter Group

2000 1999

Shares issued withdividend rights (per June 30) 4'205'526 4'205'526

Average shares (of period) 4'205'526 4'258'238 -1.2

Earnings per share 2 17.33 11.11 56

Cash flow per share 31.55 23.90 32

Share price (high/low) 571/461 472/395

1

1 Adjusted for share split 2 for 1 in June, 2000.

2 Not included 348'900 1 potential shares ex convertible bond issue, due October 2002.

Rieter registered shares

of 10 CHF nominal value

Bloomberg: RIEN, Reuters: RITZn

11

CHF

CHF

CHF


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Price Chart; Rieter Registered Shares

Rieter Group

0

100

200

300

400

500

600

700

1995 1996 1997 1998

CHF

1999 2000

Aug. 24, 2000:

597Aug. 24, 2000:

597

2000 Semi Annual Pres En

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