Monbat Ad · BSESOF:MONB
Monbat Ad — Investor Day (October 2018)
14 slides from Monbat Ad's investor day presentation, Oct 8, 2018
Slide 1: Strategic Investment Projects Portfolio Review
STRATEGIC INVESTMENT PROJECTS PORTFOLIO REVIEW Monbat Group 8th of October 2018
Slide 2: Agenda
Agenda Reasons for the decline of the Assad deal; YTD results and Year End Forecast; Long term performance expectations – update of the 5Y Business Plan; Strategic investment projects – portfolio review; Strategy for corporate bond utilization; Q&A 8 October 2018
Slide 3: Current results: EBITDA bridge year-on-year
Current results EBITDA bridge on a Y-t-Y basis The core business EBITDA is showing a modest Year to Year EBITDA Breach Forecast decrease - 2.8% on a year-to-year basis. respect (k.euro) to the core business 25,000 The biggest driver for the EBITDA decrease on a y-t-y basis comes from the investment
Slide 4: Current results: EBITDA bridge budget vs forecast 2018
Current results EBITDA bridge b/w budget and forecast 2018 BP2018 EBITDA Breach Forecast (k. euro) 30,000 25,500 - 500 -1 700 1 25,000 -1 100 - 400 -1 000 -1 300 - 400 20,000 19,100 15,000 10,000 5,000 0 BP 2018 EAS Recling Italy Recycling Serbia Nigeria Volume Spread Ovebudget Forecast 2018 Decreas
Slide 5: Revised 5Y Business Plan
Revised 5Y Business Plan Core business – organic growth Measure 2017 2018 2019 2020 2021 2022 The diminishing effect of the group CORE BUSINESS - ORGANIC GROWTH synergies coming from recycling Italy Volumes stems from the validated landing Batteries Pcs 2 567 548 2 825 842 3 332 640 3 715 894 3 868
Slide 6: Portfolio of strategic investment projects
STRATEGIC INVESTMENT PROJECTS EBITDA CONTRIBUTION Ranking UPSIDE TIME to ARENAS PROJECTS Stage POTENTIAL Value Enterprise 2019 2020 2021 2022 2023 BENEFIT Strategic fit *+* contribution risks INTEGRATED Recycling Italy Execution HIGH HIGH LOW 5 200 5 200 5 200 5 200 5 200 2 800 AAA ORGANIC GROWTH So
Slide 7: Strategy for corporate bond utilization
Strategy for corporate bond utilization Corporate bond EUR Interim leverage support to allow the best group treasury performance Raised amount 27 800 High selectivity in directing the investments Utilised 5 400 and phased deployment of the projects, leading Scheduled utilisation 5 000 to de-coup
Slide 8: Appendix
APPENDIX 8 October 2018
Slide 9: Cash flow from operations
Cash flow from operations Consolidated Cash Flow Statement, EUR'000 Consolidated Cash Flow Statement 2018F 2019B 2020B 2021B 2022B Operating activities Net income after tax 6 797 17 207 20 906 21 808 22 863 Plus Interest, net 2 287 2 689 2 790 2 815 2 753 Plus Depreciation 7 218 7 471 7 471 7 471 7
Slide 10: Year end 2018 Forecast
Year end 2018 Forecast 2018 YEAR END FORECAST 2018 July Actual + YE 2017 Actual Forecast Variance abs Variance % GUIDELINES - Despite the lack of the positive variance spread between sales and WAC (weighted-average BUSINESS SEGMENT - LEAD-ACID BATTERIES 21 048 20 482 -566 -2,7% cost) of the lead and
Slide 11: Year end forecast 2018 guidelines
Year end forecast– 2018 Guidelines 2018 Year END Estimate - The rolling inventory of lead and lead alloys is exhausted, which limits any options for continuous sales of L&A to third parties, as a mechanism to further boost EBITDA in the recycling division Business - No favourable LME spread as exper
Slide 12: Performance steering by divisions
PERFORMANCE STEERING Period: Q2 2018 EBITDA & NET PROFIT YTD Q2 2018 Plan (YTD May 2018 initial BP + June- Actuals Y-t-Y Performance Gap to Target Performance December 2018 revised BP) VALUE (EUR) YTD 2017 YTD 2017 YTD 2018 YTD 2017 BP Y-t-Y GAP TO FORECAST % % (as of Q2) (as of Q2) (as of Q2) (YTD
Slide 13: Performance steering by divisions: Battery Division
YTD Q2 2018 Performance EBITDA BATTERY DIVISION Plan (YTD May 2018 initial BP + June- Actuals Y-t-Y Performance Gap to Target December 2018 revised BP) VALUE (EUR) YTD 2017 steering by YTD 2017 YTD 2018 YTD 2017 BP Y-t-Y GAP TO FORECAST % % (as of Q2) (as of Q2) (as of Q2) (YTD BASIS) TARGET (as of
Slide 14: Monbat Group performance highlights
Monbat Group performance highlights YTD Q2 2018 HIGHLIGHTS YTD Q2 2018 PERFORMANCE COMPOSITION - Relatively stable market conditions in the battery division due to the lack of - Positive sales volume variance due to abrupt LME lead index movements as experienced in the end of 2016 and battery sales