Semperit Ag Holding · VIE:SEM
Semperit — Q1 2019 Earnings Presentation
35 slides from Semperit's earnings presentation, May 28, 2019
Slide 1: Semperit Group Q1 2019 Investor Presentation
SEMPERIT GROUP Q1 2019 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 28 May 2019 1
Slide 2: Agenda
Agenda Highlights (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 2 Investor Presentation Q1 2019 I 28 May 2019 I Investor Relations
Slide 3: Highlights Q1 2019
Highlights Q1 2019 Revenue decreased by 3.6% to € 212.9m Semperit Group continues to improve – Industrial Sector increased by 0.4% to on EBITDA and EBIT level € € € 141.4m – Increase of profitability for 5th quarter – Medical Sector decreased by 10.7% to in a row € € 71.5m – Three out of four se
Slide 4: Transformation programme continues to make a material impact
Transformation programme continues to make a material impact, Group performance above Q1 2018 on EBITDA / EBIT level On the back of successful transformation programme, encouraging developments Achieve target profitability of 10% EBITDA margin by end of 2020 (run rate 2021) -3.6% Revenue -3.6%
Slide 5: Agenda
Agenda Highlights (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 5 Investor Presentation Q1 2019 I 28 May 2019 I Investor Relations
Slide 6: Revenue development
Revenue development in € m -3.6% Revenue development 220.9 +2.4 +2.4 212.9 Semperflex: mainly higher volume -4.3 -8.5 translates into higher revenue Sempertrans: Revenue decrease Industrial Medical driven by lower volume due to focus Sector Sector on order and product profitability Semperform:
Slide 7: Industrial Sector
Industrial Sector Strong improvement in Industrial Sector: +30.7% EBITDA yoy, € +5.8m 24.5 23.0 18.8 17.9 17.3% EBITDA adj., in € m 15.6 Industrial 15.3% EBITDA margin adj. 13.3% 12.6% Sector 11.6% Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 FY 2018: € 75.2m 7 Investor Presentation Q1 2019 I 28 May 2019 I Investo
Slide 8: Semperflex
Semperflex +1.3% EBITDA yoy, € +0.2m 23.4% 23.8% 22.8% 19.8% 17.4% EBITDA adj., in € m EBITDA margin adj. Semperflex 13.7 14.9 13.9 9.3 10.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 FY 2018: € 48.9m Q1 2019 vs. Q1 2018 Revenue Slight increase in revenue 61 current period Semperflex Revenue Profitability at
Slide 9: Sempertrans
Sempertrans >+100% EBITDA yoy, € +2.3m EBITDA adj., in € m 6.4% 9.0% EBITDA margin adj. Sempertrans 1.4% 2.1% 2.1% 2.7 2.4 0.8 0.7 0.5 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 FY 2018: € 4.4m Q1 2019 vs. Q1 2018 Revenue Quality of order intake continuously improved Sempertrans 30 current period Revenue dec
Slide 10: Semperform
Semperform +72.7% EBITDA yoy, € 3.3m 15.7% 14.4% 12.2% 9.6% 8.9% EBITDA adj., in € m Semperform 7.3 7.9 EBITDA margin adj. 6.2 4.5 3.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 FY 2018: € 21.9m Q1 2019 vs. Q1 2018 Revenue Continuous business development across all Semperform 50 business units in both technolo
Slide 11: Sempermed
Medical Sector / Sempermed segment Decreasing EBITDA yoy, € –2.3m 1.8% EBITDA adj., in € m 1.4 EBITDA margin adj. Medical Sempermed -1.3 -0.9 -0.9 -3.1 Sector -1.7% -1.1% -1.2% -4.2% Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 FY 2018: € –3.9m Q1 2019 vs. Q1 2018 Revenue Revenue decline mainly driven by reducti
Slide 12: Agenda
Agenda Highlights update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 12 Investor Presentation Q1 2019 I 28 May 2019 I Investor Relations
Slide 13: Financials and Profitability Overview
Financials and Profitability Overview Key figures Semperit Group Change in EUR m Q1 2019 Q1 2018 Change in EUR m Revenue 212.9 220.9 -3.6% -8.0 EBITDA 16.5 15.8 +4.6% +0.7 EBITDA margin 7.7% 7.1% +0.6 PP – EBIT 7.8 6.0 +30.8% +1.8 EBIT margin 3.7% 2.7% +1.0 PP – Earnings after tax 3.2 -2.6 – +5.8 1)
Slide 14: Revenue development
Revenue development in € m -3.6% 220.9 +2.4 +2.4 212.9 -4.3 -8.5 Industrial Medical Sector Sector +0.4%1) +4.0% -12.3% +5.2% -10.7%1) Q1 2018 Semperflex Sempertrans Semperform Sempermed Q1 2019 Revenue 61.1m 30.4m 49.9m 71.5m Q1 2019 ► 1) Change in percent for Q1 2019 vs Q1 2018. 14 Investor Present
Slide 15: EBITDA development
EBITDA development in € m +4.6% +3.3 -2.3 +0.2 +2.3 -2.8 16.5 15.8 Q1 2018 Semperflex Sempertrans Semperform Sempermed Corporate Q1 2019 EBITDA Q1 2018 15.8m 13.7m 0.5m 4.5m 1.4m -4.3m EBITDA Q1 2019 13.9m 2.7m 7.9m -0.9m -7.1m 16.5m EBITDA margin Q1 2019 22.8% 9.0% 15.7% -1.2% – 7.7% 15 Investor Pr
Slide 16: Continuous EBITDA improvement since more than one year
Continuous EBITDA improvement since more than one year 2017 EBITDA adj., in € m 2018 EBITDA adj., in € m 2019 EBITDA, in € m EBITDA development +4.6% • Continuous improvements for operating EBITDA for five 17.0 16.5 quarters in a row 15.8 • Second half of the year / 12.9 13.1 third and fourth quarte
Slide 17: Investments by quarter
Investments by quarter FY 2018: overall Capex of € 81m, approx. 50% for Semperflex and mixing FY 2019: overall Capex of € about 40m planned CAPEX per segment in € m € 80.8m € 16.2m 24.5 Semperflex 23.2 Sempertrans 7.9 Semperform 17.6 10.0 Sempermed 15.5 16.2 Corporate 7.4 9.2 5.2 6.4 3.4 1.9 2.7
Slide 18: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 20.9%1) 21.6%1) 20.6%1) 21.0%1) 21.2%1) 180.9 191.0 181.2 184.3 184.8 161.6 165.6 162.8 150.4 150.6 Inventories 125.8 131.8 123.7 112.6 Trade receivables 101.6 -67.7 -78.4 Trade payables -106.5 -106.4 -105.3 31 March 2018 30 June 2018 30
Slide 19: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 31 March 2019 Balance sheet 31/03/2019: € 810m Balance sheet 31/12/2018: € 769m Cash and cash equivalents of € 140m Financial liabilities: Corporate Schuldschein loan of € 229m Fixed 382 336 330 Equit
Slide 20: Financial Policy Framework
Financial Policy Framework Focus on Value Management % € € EBITDA margin Equity ratio of >30% Net debt/EBITDA < 3.5x of 10% at Group level by end of 2020 (run rate 2021) Working Capital Total Capex of about € 40m to revenue < 25%, in FY 2019 focus to stay closer to 20%1) mostly for maint
Slide 21: Agenda
Agenda Restructuring and Transformation update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 21 Investor Presentation Q1 2019 I 28 May 2019 I Investor Relations
Slide 22: Management agenda 2019
Management agenda 2019 Focus on SemperMOVE10 to reach 10% EBITDA margin at Group level by end of 2020 (run rate 2021) Operations initiatives Sales initiatives Procurement, Increase output / Overall Volume growth SG&A initiatives Equipment Effectiveness (OEE) (new markets, new regions) Sustaina
Slide 23: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2019 Agnes Springer, Investor Relations 28.05.2019 Report on Q1 2019 +43 1 79777 - 213 14.08.2019 Half-year financial report 2019 www.semperitgroup.com/en/ir 21.11.2019 Report on Q1-3 2019 Modecenterstrasse 22 1031 Vienna,
Slide 24: Agenda
Agenda Restructuring and Transformation update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 24 Investor Presentation Q1 2019 I 28 May 2019 I Investor Relations
Slide 25: Overview price indices Butadiene
Overview price indices Butadiene Price movements for raw materials1) became highly unpredictable Price indices Butadiene as main raw material for synthetic rubber / latex 550 500 450 400 350 300 ø 2017 ø YTD 250 2019 200 ø 2016 ø 2018 150 100 50 Butadiene Europe Butadiene Korea 1) Selected raw mater
Slide 26: Overview price indices carbon black / wire rod
Overview price indices carbon black / wire rod Significant increase for raw materials1) used in industrial segments Price index carbon black Price index wire rod 375 200.0 350 ø YTD 325 2019 175.0 ø YTD 300 2019 275 ø 2018 ø 2018 150.0 250 ø 2017 ø 2017 225 200 125.0 175 150 ø 2016 100.0 ø 2016 125
Slide 27: Hybrid Capital Line with B & C
Hybrid Capital Line with B & C Overview – Contract between Semperit AG Holding and B & C Holding GmbH (100% subsidiary of B & C Industrieholding GmbH) signed on 12th Dec. 2017, total volume of up to € 150m Unused part 20m 1.75% – Can be drawn in up to three tranches until end of 2019 – Interest ra
Slide 28: Sectors and Group: Q1 2019 vs Q1 2018
Sectors and Group: Q1 2019 vs Q1 2018 1) Industrial Sector Medical Sector Semperit Group in EUR m Q1 2019 Q1 2018 % Q1 2019 Q1 2018 % Q1 2019 Q1 2018 % Revenue 141.4 140.9 +0.4% 71.5 80.0 -10.6% 212.9 220.9 -3.6% EBITDA 24.5 18.8 +30.3% -0.9 1.4 – 16.5 15.8 +4.6% EBITDA margin 17.3% 13.3% +4.0 PP -1
Slide 29: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable FY Q1 Q2 Q3 Q4 FY Q2 FY Q1 Q3 Q4 FY Q1 2016 2017 2017 2017 2017 2017 2018 20151) 2018 2018 2018 2018 2019 in EUR m adj.2) adj.3) adj.3) adj.3) adj.3) adj.3) adj.4) Revenue 914.7 852.4 229.3 232.3 208.4 204.2 874.2 220.9 227.6
Slide 30: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q3 FY FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 2017 2017 20151) 20162) 2017 2017 2017 2018 2018 2018 2018 2018 2019 in EUR m adj. 3) adj. 3) Revenue 203.4 184.9 53.5 53.2 46.8 52.5 206.1 58.8 62.8 53.4 55.1 230.0 61.1 EBITDA 46.1 43.4 11.
Slide 31: Semperform and Sempermed (adj. where applicable)
Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 2017 2017 20151) 20162) 2017 2017 2017 2018 2018 2018 2018 2018 2019 in EUR m adj. 5) adj. 5) Revenue 152.8 173.1 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3 43.7 192
Slide 32: Sectors and Group: FY 2018 vs FY 2017
Sectors and Group: FY 2018 vs FY 2017 Industrial Sector Medical Sector Semperit Group1) in EUR m FY 2018 FY 2017 % FY 2018 FY 2017 % FY 2018 FY 2017 % Revenue 567.0 537.0 +5.6% 311.5 337.1 -7.6% 878.5 874.2 +0.5% EBITDA 71.3 42.9 +66.1% -3.9 77.9 – 46.4 100.2 -53.7% EBITDA margin 12.6% 8.0% +4.6 PP
Slide 33: Key figures 2008-2018
Key figures 2008-2018 Key performance figures 2016 2017 2018 in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153) adj. 4) adj. 5) adj. 6) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 EBITDA margin 13
Slide 34: Product / market position / segment overview, FY 2018
Product / market position / segment overview, FY 2018 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform Sempermed Revenue € 878m € 230m / 26%1) € 145m / 17%1) € 192m / 22%1) € 312m / 35%1) EBITDA adj. € 50m2) € 49m € 4m € 22m € -4m Employees 6,7732) 1,776 / 27%3
Slide 35: Shareholder Structure
Shareholder Structure Shareholder structure Semperit is listed on the Vienna Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54% Primary focus of B & C is pursuing the fou