Strategy

Conzzeta is a diversified Swiss group of companies. About 5,000 employees at more than 60 locations worldwide work in the Sheet Metal Processing, Chemical Specialties and Outdoor segments. In December 2019, Conzzeta announced a focused growth strategy for the Sheet Metal Processing segment and its plan to sell all other activities.

Transformation of the Conzzeta Group

Having already completed the sale of the Glass Processing segment on April 1, 2019, Conzzeta announced its intention on August 9, 2019, to accelerate the development of the potential inherent in the remaining business portfolio, taking into account all options, and to decentralize management. This culminated in the announcement on December 9, 2019, to focus the Group on the Sheet Metal Processing segment (Bystronic) and to gradually sell the other activities, market conditions permitting. Already on December 20, 2019, it was announced that a binding agreement had been entered into to sell the Schmid Rhyner business unit, part of the Chemical Specialties segment, which was completed at the end of February 2020. On November 10, 2020, Conzzeta then announced the conclusion of a binding agreement to sell the FoamPartner business unit. The transaction is expected to be completed by the end of the first quarter of 2021, subject to regulatory approval. The sale of the Mammut business unit (Outdoor segment) is also in progress and is currently expected towards the middle of 2021, subject to market conditions.

Bystronic’s “Strategy 2025” and financial targets

The decision to focus on becoming a technology-oriented industrial company is aimed at concentrating Conzzeta on its own strengths and accelerating the development of the potential created in recent years. With a net revenue share of 62% in 2020, Bystronic was responsible for the Group’s entire adjusted operating result. The company is a leading global supplier of high-quality solutions for sheet metal processing. It covers the automation and integration of the entire material and data flow of the cutting and bending process chain. The portfolio includes laser cutting systems, press brakes as well as automation and software solutions, which play a central role in the global trend towards “smart factories”. Comprehensive services complete the portfolio. Conzzeta’s largest business unit by far has increased revenue at an annual average growth rate of 7.1% since the beginning of 2016, despite the slowdown in the industry since 2019 and the pandemic-related disruptions in 2020.

With around 3,000 employees worldwide, the company is well set up, operating in numerous markets with an efficient and effective local sales and service organization. Among other things, it has opened up additional market and earnings potential with innovative digital solutions. With its “Strategy 2025”, which was presented at a virtual Capital Markets Day on November 10, 2020, Bystronic intends to grow profitably and at an accelerated rate, with improved customer proximity and new technical solutions and services.

Bystronic also aims to gain market share with its first-class sheet metal processing solutions. The strategy’s objectives also include,

• to continue to position itself as an innovation leader;
• to support customers, in particular with digital smart factory solutions, in improving their productivity across the entire manufacturing process;
• to further refine the offering in a segment-oriented manner with a view to customer groups in certain end markets;
• to deepen market development globally with a regionally differentiated approach;
• to strengthen and rapidly develop the business with solutions and downstream services.

The newly launched products and solutions were presented to customers at regional Competence Days in the second half of 2020, and in part also at the Capital Markets Day. With the implementation of its strategy, Bystronic aims to achieve the following financial targets by 2025:

• compound annual growth rate (CAGR) of more than 5% from 2019, with additional potential from complementary acquisitions;
• industry-leading profitability with an EBIT margin of over 12%;
• return on net operating assets of over 25%, thanks to the capital-efficient business model.

Bystronic’s “Strategy 2025”

Further steps in the transformation process and outlook

Conzzeta’s transformation has not only involved focusing of the business portfolio, but also adapting elements of corporate governance and changing the name from Conzzeta to Bystronic. With this in mind, during the transition year of 2020 various foundations were laid and preparations were made for organizational changes that will be implemented over the course of 2021. This includes defining the Group roles that will be required at Bystronic in the future, taking into account Conzzeta’s available experience. A new management structure with a regional focus has been developed for Bystronic. With the sale of the discontinued businesses, the current management structure for a Group with very different business activities is no longer required, which is why the Executive Committee has announced that it will resign at the Annual General Meeting on April 21, 2021. From April 22 onwards, Bystronic’s Executive Committee, as newly appointed by the Board of Directors, will have operational responsibility. The change of name is also on the agenda for the General Meeting. Subject to approval by the general meeting, the company’s listed registered shares will be traded on SIX Swiss Stock Exchange under the ticker symbol BYS from the beginning of May 2021. Finally, with the Half-Year Report 2021, external reporting will also be adjusted and changed to align with reporting within Bystronic’s new management structure.

Priorities, targets, performance