Sts Group Ag · XETR:SF3
Sts — MKK Munich Capital Market Conference 2019
32 slides from Sts's conference presentation, May 2019
Slide 1: MKK May 2019
MKK May 2019
Slide 2: Agenda
Agenda 1. STS at a glance 2. History and Footprint 3. Business Model 4. IPO - Strategic Projects 5. Financial Year 2018 6. Why invest in STS www.sts.group Slide 2
Slide 3: STS at a glance
Investor Presentation Key Facts Key Figures STS at a u Leading global supplier of soft and hard trim parts and glance systems to international commercial vehicle OEMs. 401 mEUR 23.7 mEUR Revenue 2018 Adjusted EBITDA 2018 u Diversified customer base and significant share of business as single source.
Slide 4: History
Investor Presentation all values in mEUR Q1/2019 – Third plant History China Q4/2018 - New headquarters China 2017 - Acquisition of a production site for truck parts in Brazil from Autoneum Group Composites – SMC Plastics 2017 - Acquisition of global truck supplier business from Injection molding Pl
Slide 5: Global Footprint
Investor Presentation France Germany Global St. Désirat § Blainville Hallbergmoos (HQ) § Kandel Précigné § Félines Footprint Izernore § Andance Poland Tournon Międzyrzecz China Wuxi Mexico Qingdao Ramos Shiyan Jiangyin Brazil Italy Bétim Santhiá STS’ global footprint allows proximity to key Desio cu
Slide 6: STS Group's USP
Investor Presentation STS Group’s 1 Technological know-how for structural, USP visual, acoustic, and thermal parts 2 2 Vertically integrated production from HIGH VERTICAL semi-finished goods to complete INTEGRATION systems COMBINE TECHNOLOGIES STS provides a vertical integrated production 4 3 3 Cust
Slide 7: Technology Vertical Integration
Investor Presentation Acoustics Technologies, Composite Injection molding Technology Felt thermoforming, PU foaming, Textile lamination thermocompression: SMC, BMC, AMC Vertical Raw Fiber Glass fiber Pellets (PP, PC, Integration Material Resins Resins ABS, PA, POM) BU Acoustics BU Materials • Cotton
Slide 8: Drivers for potential sales growth and additional profit
Investor Presentation Drivers for Drivers for potential sales growth additional profit Expanding in China: Improving footprint/cost structure in Europe: ü New HQ and R&D center in Wuxi ü New plant in best cost country ü Third plant in Shyian o Optimization of actual footprint o Additional technology
Slide 9: Expanding in China
Investor Presentation Strategic Rationale: Expanding in u China is the world’s biggest market for medium and heavy commercial vehicles (MHCV). u STS will gain market share significantly. based on technology know-how, China quality and customer contact. Bejing u Newly implemented restrictions and reg
Slide 10: Entering the US Market
Investor Presentation Strategic Rationale: Entering the u North America is the world’s third biggest market for medium and heavy commercial vehicles (MHCV). US Market u Great demand for technological progress, such as light-weight plastic based components. u High number of RFQ’s, with high demand fo
Slide 11: Improving Footprint in Europe
Investor Presentation Strategic Rationale: Improving u Europe is the world’s second biggest market for medium and STS - Międzyrzecz Footprint in u heavy commercial vehicles (MHCV). Poland is the best cost country in Europe for Commercial Vehicle Europe u Interior Trim. Several customers are placed i
Slide 12: Product Innovation
Investor Presentation Product Entry to electromobility market with order for battery cover for e-SUV. Innovation u New customer. u Volume: 30,000 per year. u SOP second half 2019. Tech-Days in Jiangyin strengthen cooperation with customers. u 30 participants from 19 OEMs from automotive industry. u
Slide 13: Process Innovation Automation
Investor Presentation Process Fully automated machine loading. u High productivity. Innovation u High quality. Automation Fully automated milling and deburring. u Difficult geometry possible. u High productivity. u High accuracy. www.sts.group STS Group © 2019 Slide 13
Slide 14: Market Development
Investor Presentation Market Trend STS 2018 Comments Market Europe +1% u European MHCV with slight increase in 2018 Development MHCV 658 662 701 u STS Group below market due to planned phase out of truck project within BU Plastics 2017 2018 2019e -1% u European LV market slightly down in 2018 u Acou
Slide 15: Revenues & Adj. EBITDA
Investor Presentation Revenues in mEUR Key Messages: Revenues & 29.4% Adj. EBITDA 401 u Revenue rose by around 29% to 401.2 mEUR 310 (prior year: 310.0 mEUR). u Increase in adjusted EBITDA of around 67% to 23.7 mEUR (prior year: 14.2 mEUR). 2017 2018 u Adjustments (11.9 mEUR) refer to costs for IPO
Slide 16: Revenues & Adj. EBITDA per Business Unit
Investor Presentation Revenues in mEUR Revenues & 23.3 20.0 -4.8 u Revenue decrease of BU Acoustics primarily due to lower volumes of Italian LCV/LV market Adj. EBITDA 60.9 u Growth of BUs Plastics and Materials due to full year per Business 401.2 effect of businesses acquired in 2017 Unit 310.0 -8.
Slide 17: Net Result & Equity
Investor Presentation Net Result y.e. 2018 in mEUR Net Result & 5.9% u EBITDA adjustments for IPO costs and integration of 2017 acquired activities Equity u Depreciation in line with CAPEX, which refers mainly -3.8 3.0% 23.7 to investments for maintenance, new projects and -7.9 11.9 strategic growth
Slide 18: Net Debt & Liquidity
Investor Presentation Net Liquidity Dec. 31, 2018 in mEUR Net Debt u Positive net liquidity position as of Dec 31, 2018 (prior year: -8.7 mEUR) 31.2 & Liquidity u Liquidity situation gives financial flexibility (e.g. for acquisitions) -22.9 8.3 Cash Debts Net Liquidity Solid financial position. Liqu
Slide 19: Share Value
Investor Presentation Share Price Shareholder Data Share Value in t pcs. 180 in € 30 160 Free Float 27.2% 25 140 Mutares AG 64.8% 120 20 100 15 80 60 10 Main First 8.0% 40 5 20 ISIN: Jun 1 8 Jul 18 Jul 18 Aug 18 Sep 18 Oc t 18 Nov 1 8 Dec 18 Jan 1 9 Feb 19 Mar 1 9 0 DE000A1TNU68 Ticker symbol: Date
Slide 20: 2019 & mid-term Guidance
Investor Presentation mid-term 2019 & mid-term 2019e 2023e Guidance u Market environment in the u Attractive future growth automotive industry will perspectives. continue to be challenging Attractive future growth u Revenue expected to remain at u Target revenue ≥ 500 mEUR perspectives. previous yea
Slide 21: Why invest in STS Group?
Investor Presentation Why invest One of the leading global system suppliers for interior and exterior trim Excellent market position in STS parts with focus on commercial vehicles Group? Outstanding visibility Solid order book with approx. 1.9 bnEUR of revenue already contracted until 2022, plus add
Slide 22: Disclaimer
Investor Presentation Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in particular, sta
Slide 23: Thank you for your attention
Thank you for your attention Contact Us Stefan Hummel Head of Investor Relations ir@sts.group
Slide 24: Agenda / Upcoming conferences and publications
Agenda Upcoming conferences / publications… 7/8 May 2019 MKK Munich Capital Market Conference, Munich 1. STS at a glance 15 May 2019 Publication Quarterly Statement (call-date Q1) 2. History and Footprint 17 May 2019 Annual General Meeting 3. Business Model 28 May 2019 MainFirst SMID CAP Event, Fran
Slide 25: STS Group Board
Investor Presentation Executive Board STS Group Board Andreas Becker Dr. Ulrich Hauck Patrick Oschust CEO CFO COO STS Board Member since 2013 STS Board Member since 2019 STS Board Member since 2013 22 Years Industry Experience 20 Years Industry Experience 19 Years Industry Experience Highly experien
Slide 26: Product Portfolio STS Group
Investor Presentation Product Systems Plastics / Injection molding Portfolio Exterior Trim - Storage Compartment Plastics / SMC - Under Bunk Storage STS Group - Roof Spolier Interior Trim for Engine Acoustic / Acoustic Isolation Thermal Isolation: & SMC Covers - Rear/Side Wall - Engine Hoodliner STS
Slide 27: Product Portfolio MHCV, LCV
Investor Presentation Medium and Heavy Commercial Vehicle (MHCV) Light Commercial Vehicle (LCV) Product Headliner NVH Cabin NVH Cabin Rear Wall Portfolio Module Trim Floor Roof Deflector MHCV, LCV Door Panels Exterior Pillar Emblem Trim Support Storage Complete Compartment Front Module STS offers a
Slide 28: Revenues & Adj. EBITDA 1HY vs. 2HY
Investor Presentation Revenues in mEUR Revenues & u Second half year with lower topline than first six months due to lower production in Europe due to Adj. EBITDA holiday season (>10% less working days) 1HY vs. 2HY -12.8 0.4 u Phase out of truck project of BU Plastics 2018 218.2 -15.8 -3.3 -3.7 183.
Slide 29: Key Financials 2018 by BU
Investor Presentation Key Revenue in mEUR Adjusted EBITDA in mEUR Financials BU Acoustics 124.4 BU Acoustics -1.2 2018 by BU 132.6 2.7 198.6 16.7 BU Plastics BU Plastics 137.7 6.4 48.6 7.2 BU China BU China 25.3 4.1 ∑ STS Group ∑ STS Group 40.0 consolidated: 1.9 consolidated: BU Materials 401.2 mEUR
Slide 30: Income Statement
Investor Presentation Income Statement mEUR IFRS FY2018 FY2017 Revenue 401.2 310.0 Inventory changes 5.8 2.5 Other operating income 4.5 55.7 Cost of materials -233.8 -190.6 Personnel expenses -103.9 -75.6 Other operating expenses -61.9 -47.0 EBITDA 11.9 55.0 Revenue FY2017 Depreciation and amortisat
Slide 31: Balance Sheet
Investor Presentation Balance 31 Dec 31 Dec 31 Dec 31 Dec Sheet mEUR IFRS 2018 2017 mEUR IFRS 2018 2017 Intangible assets 25.6 24.6 Total equity 82.4 60.7 Property, plant and equipment 78.7 79.0 Contract liabilities 1.1 0 Contract assets 0.1 0 Trade payables 0.8 0.6 Other financial assets 0.2 0.3 Ot
Slide 32: Cash Flow
Investor Presentation Cash 31 Dec 31 Dec Flow mEUR IFRS 2018 2017 Net Income -4.8 47.0 Change in NWC 1.9 -7.2 Operating NCF 7.1 -8.7 Investing NCF -13.9 -17.2 Financial NCF 22.1 39.2 Net increase/decrease 15.3 13.2 Cash at the beginning of period 15.8 2.6 Financing Cash-flow positive due to capital
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