GEORG FISCHER AG Mid-Year Report 2023
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GF Corporation | 2 |
Financial and ESG key figures
as of 30 June 2023
Americas | Asia |
19%
9%
22% | ||||||||||||||||||||||||||
396 | 552 | |||||||||||||||||||||||||
72% | ||||||||||||||||||||||||||
60% | ||||||||||||||||||||||||||
(20%) | Europe | (28%) | ||||||||||||||||||||||||
23% | 18% | |||||||||||||||||||||||||
913 | ||||||||||||||||||||||||||
40% | Rest of the world | |||||||||||||||||||||||||
(47%) |
Sales per region | 37% |
in CHF million |
GF Piping Systems
GF Casting Solutions
GF Machining Solutions
% = Share of sales
18%
1% | |
100 | 81% |
(5%) |
Gross value added per region | Employees per region | ||||
in CHF million | |||||
36% | Switzerland | 23% | Switzerland | ||
21% | Rest of Europe | 23% | Rest of Europe | ||
793 | 16% | Americas | 15'464 | 22% | China |
15% | China | 15% | Americas | ||
9% | Germany | 8% | Germany | ||
3% | Rest of Asia | 5% | Rest of the world | ||
0% | Rest of the world | 4% | Rest of Asia |
GF uses certain key figures to measure its performance that are not defined by Swiss GAAP FER. Therefore, comparability with similar figures presented by other companies may be limited. Learn more about the key figures at www.georgfischer.com/en/investors/alternative-performance-measures.html
GF Corporation | 3 |
Financial and ESG key figures as of 30 June
GF Corporation | GF Piping Systems | GF Casting Solutions | GF Machining Solutions | |||||
CHF million | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 |
Order intake | 1'925 | 2'209 | 986 | 1'246 | 480 | 488 | 461 | 478 |
Orders on hand | 860 | 973 | 339 | 456 | 286 | 260 | 236 | 259 |
Sales | 1'961 | 1'971 | 1'065 | 1'094 | 471 | 449 | 426 | 431 |
Sales growth % | -0.5 | 7.4 | -2.6 | 11.3 | 5.0 | -2.3 | -1.0 | 9.7 |
Organic growth % | 7.5 | 11.1 | 4.2 | 14.0 | 20.0 | 5.4 | 3.7 | 10.7 |
EBITDA | 239 | 240 | 166 | 183 | 55 | 40 | 27 | 24 |
EBITDA margin % | 12.2 | 12.2 | 15.6 | 16.7 | 11.7 | 8.9 | 6.4 | 5.7 |
EBIT | 184 | 179 | 141 | 158 | 35 | 14 | 20 | 17 |
Return on sales (EBIT margin) % | 9.4 | 9.1 | 13.2 | 14.4 | 7.5 | 3.2 | 4.7 | 4.0 |
Net profit shareholders GF | 123 | 125 | ||||||
Basic earnings per share in CHF | 1.50 | 1.53 | ||||||
Free cash flow before | ||||||||
acquisitions/divestments | -66 | -98 | ||||||
Invested capital (IC) | 1'448 | 1'399 | 779 | 795 | 349 | 345 | 250 | 214 |
Return on invested capital (ROIC) % | 21.7 | 19.8 | 30.2 | 35.6 | 18.6 | 5.7 | 15.7 | 16.0 |
Net debt | 108 | 52 | ||||||
Number of employees | 15'464 | 14'957 | 8'191 | 7'981 | 3'695 | 3'504 | 3'408 | 3'327 |
Product Portfolio | Climate & Resources |
Sales with social or | Renewable energy |
environmental benefits | incl. certified green electricity, in % |
as % of total sales | 34% |
70% | ||||||
58% | 60% | 63% | 25% | |||
22% | ||||||
H1 | H1 | H1 | H1 | H1 | H1 | |
2021 | 2022 | 2023 | Target 2025 | 2021 | 2022 | 2023 |
People & Well-being
Diversity and inclusion
Newly appointed women managers, in %
23
Breakdown of products by | CO2e emissions | Accident rate |
identified benefits | scope 1 and 2, in 1'000 tonnes | as lost time injury frequency rate (LTIFR) |
per 1 million working hours | ||
in CHF million | ||
165 | 154 | |||||||||||||
Target line | 11.1 | Target line | ||||||||||||
10.7 | ||||||||||||||
10.1 | ||||||||||||||
1'936 | 116 | 7.8 | ||||||||||||
99 | ||||||||||||||
31% | Mitigating climate change | |||||||||||||
16% | Conserving water | |||||||||||||
8% | Promoting safety | |||||||||||||
6% | Ensuring health | |||||||||||||
1% | Delivering education | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 | H1 |
1% | Sustainable buildings | Base- | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Base- | 2021 | 2022 | 2023 | 2024 | 2025 |
37% | No direct or substantial impacts | line | line | |||||||||||
The performance indicators include the entire product portfolio and at least 90% of scope 1 and 2 GHG emissions.
GF Corporation | 4 |
Good performance in challenging times, reflecting GF's strong position for long-term growth and value generation
Dear shareholders,
In the first half of this year, GF's business continued to perform well, despite heavy currency headwinds and geopolitical tensions. Sales of sustainable products and solutions, underpinned by long-term megatrends such as urbanization, energy efficiency and high demand for clean drinking water, continue to sustain performance and profitability.
GF's solid financial position and global footprint, as well as the successful implementation of its Strategy 2025, are positioning the company well to weather expected recessionary trends in the global construction industry, subdued gas utilities in Europe and weaker ICT markets in Asia.
GF continues to actively drive innovation and sustainability. In April, it inaugurated two production sites in Shenyang and Yangzhou (both in China) that combine state-of-the-art production technology and the highest environmental standards in the production of lightweight car components and inno vative piping systems. In Switzerland, GF officially unveiled its completely refurbished headquarters in Schaffhausen in June, featuring a modern, open space office, high sustainability standards and plenty of room for collaboration and innovation.
Through its Clean Water Foundation and longstanding partner Water Mission, GF was also able to quickly mobilize financial and material aid in early 2023 for survivors of a devastating earthquake in Turkey, helping increase access to clean water.
Corporate results
Sales amounted to CHF 1'961 million (2022: CHF 1'971 million), slightly below the previous year's level. This represents solid organic growth of 7.5%, supported by strong global demand for sustainable solutions. Negative currency effects had
a substantial impact of CHF 123 million, partially offset by price adjustments.
The operating result (EBIT) rose to CHF 184 mil- lion, with a corresponding EBIT margin of 9.4%. In the first half of 2022, these were CHF 179 million and 9.1%, respectively. Net profit attributable to GF shareholders amounted to CHF 123 million, com- pared with CHF 125 million in the first half of 2022. Free cash flow came in at minus CHF 131 million (2022: minus CHF 37 million). Before acquisitions/ divestments, the free cash flow was minus CHF 66 million (2022: minus CHF 98 million).
All three divisions were able to generate value in the first half of the year. The shift toward less cyclical businesses makes GF Casting Solutions and GF Machining Solutions in particular more resilient.
GF Corporation | 5 |
GF continues to jointly report financial and non- financial KPIs, underscoring the importance of
a holistic business approach to both financial success and sustainability. GF is on track to reach its ESG targets for the year, including total sales with social and environmental benefits, a reduction in CO2 emissions, a reduction in waste and water intensity, as well as its targets for diversity and inclusion. In April 2023, GF was again included in "the top 100 companies globally" in the third edition of Europe's Climate Leaders - a listing by the Financial Times of the companies that are leading the way in tackling the negative impacts of climate change.
GF Piping Systems
The division's presence in growth markets and segments, such as high-end microelectronics production, and process automation for water reclamation and treatment, contributed to sales of CHF 1'065 million in the first half of 2023 (2022: CHF 1'094 million). Organically, sales rose 4.2%. The operating profit came in at CHF 141 million (2022: CHF 158 million), for an EBIT margin of 13.2% (2022: 14.4%). Recessionary trends worldwide are affecting GF Piping Systems' performance in its Building Technology and Utilities (Gas) business segments.
In June, GF Piping Systems announced it has earned Intel's EPIC Distinguished Supplier Award, a mile stone that highlights the division's customer focus and commitment to excellence, and rewards a consistent level of strong performance.
With its state-of-the-art manufacturing layout for the production of process automation applica- tions, its clean room for pre-fabrication and the modern training center, the newly inaugurated site in Yangzhou (China) is ready to meet the increasing customer demand for sustainable solutions.
In April, GF inaugurated two production sites in China that combine state-of-the-art production technology and the highest environmental standards.
GF Casting Solutions
Growth in sustainable mobility reached an all- time high, with 86% of high-pressure die casting lifetime order intake related to e-vehicles. Sales reached CHF 471 million (2022: CHF 449 million), an organic increase of 20.0%, due in part to strong demand for e-vehicles. Operating profit increased substantially to CHF 35 million (2022: CHF 14 million), for an EBIT margin of 7.5% compared with 3.2% in 2022. The division is increasingly recognized for its innovation strength and capabilities to produce mega castings, which are a key differentiator in the production and assembly of e-vehicles. The ramp-up of the factory in Shen- yang (China) is also progressing according to plan.
Yves Serra, Chairman of the Board of Directors, and Andreas Müller, CEO
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Georg Fischer AG published this content on 19 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2023 07:41:04 UTC.
