Sp Group A/s · OMXCOP:SPG
Sp Group A/s — H1 2024 Earnings Presentation
56 slides from Sp Group A/s's earnings presentation, Aug 23, 2024
Slide 1: First Half Year of 2024
FIRST HALF YEAR OF 2024 Presentation by CEO Frank Gad 23 August 2024 First half year of 2024 – 23 August 2024 / SP Group 1
Slide 2: Group Management
GROUP MANAGEMENT Frank Gad Søren Ulstrup Lars Bering Tilde Kejlhof CEO Executive Vice President Executive Vice President CFO MSc Economics & Business Plastic engineer MSc Engineering and B Com. Master of Economics Administration Residence: Holte in Supply Chain Residence: Odense Residence: Frederiks
Slide 3: Management Change per 1 September 2024
MANAGEMENT CHANGE PER 1 SEPTEMBER 2024 • Frank Gad will resign as CEO • Lars Bering has been appointed CEO • Tilde Kejlhof, CFO, joins the executive board From 1 September 2024, the Executive Board consists of: Lars Bering Søren Ulstrup Tilde Kejlhof CEO Executive Vice President CFO First half year
Slide 4: Why Now?
WHY NOW? • Frank Gad turns 64 in September, and has been CEO of SP Group for 20 years • SP Group is back on the growth track and the economy is healthy • Lars Bering is ready to take over • The team: Lars, Søren and Tilde have worked well together in the last 4 years in the Group Management • SP Gro
Slide 5: Group Management from 1 September 2024
GROUP MANAGEMENT FROM 1 SEPTEMBER 2024 Lars Bering Søren Ulstrup Tilde Kejlhof CEO Executive Vice President CFO MSc Engineering and B Com. Plastic engineer Master of Economics in Supply Chain Residence: Holte Residence: Odense Residence: Silkeborg Year of birth: 1966 Year of birth: 1978 Year of birt
Slide 6: SP Group in Brief
SP GROUP IN BRIEF Headquarters in Denmark Products are marketed and sold in established in 98 countries 1972 Subsidiaries in Average number of employees decreased in 2023 from 2,485 to 12 countries on 2,351 committed 3 continents employees First half year of 2024 – 23 August 2024 / SP Group 6
Slide 7: SP Group – An Overview
SP GROUP – AN OVERVIEW • Manufacturer of moulded plastic and composite components and performs coatings on plastic and metal components • Supplier of customer-specific solutions for a wide range of industries • Strong international niche positions – also for our own brands • Increased sales from own
Slide 8: Highlights First Half Year of 2024
HIGHLIGHTS FIRST HALF YEAR OF 2024 First half year of 2024 – 23 August 2024 / SP Group 8
Slide 9: Highlights H1 2024 / 1
HIGHLIGHTS H1 2024 / 1 In H1 2024, revenue In H1 2024, revenue from own brands increased by 8.4% to increased by 38.4% to DKK 1,485.1m DKK 438.8m In H1 2024, EBITDA In H1 2024, the EBITDA margin increased by 31.2% to increased by 3.5 percentage points to DKK 302.1m 20.3% First half year of 2024 – 23
Slide 10: Highlights H1 2024 / 2
HIGHLIGHTS H1 2024 / 2 In H1 2024, Profit before tax increased In H1 2024, EPS, diluted, increased by by 63.5% to DKK 176.4m 63.7% to DKK 11.33 DKKm DKK 180 12 135 9 90 6 45 3 0 0 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 End June 2024, net interest-bearing debt
Slide 11: Financial Results 2023 and First Half Year of 2024
FINANCIAL RESULTS 2023 AND FIRST HALF YEAR OF 2024 First half year of 2024 – 23 August 2024 / SP Group 11
Slide 12: Group Financial Highlights 2023
GROUP FINANCIAL HIGHLIGHTS 2023 DKKm 2023 2022 2021 2020 2019 2018 2017 Revenue 2,606.3 2,656.3 2,480.9 2,178.2 2,012.9 1,965.0 1,884.1 EBITDA 441.0 478.4 422.9 356.4 307.5 285.6 275.0 EBIT 241.2 296.1 269.1 214.8 177.8 195.9 193.5 Profit before tax 201.1 268.5 257.8 193.8 175.4 200.1 175.7 Equity 1
Slide 13: Revenue 2010 – H1 2024
REVENUE 2010 – H1 2024 DKKm 3.000 2.800 2.600 2.400 2.200 2.000 2023: -1.9% 1.800 1.600 1.400 1.200 1.000 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 13
Slide 14: EBITDA 2010 – H1 2024
EBITDA 2010 – H1 2024 DKKm 550 525 500 475 450 425 400 375 2023: -7.8% 350 325 300 275 250 225 200 175 150 125 100 75 50 25 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 14
Slide 15: EBITDA Margin 2010 – H1 2024
EBITDA MARGIN 2010 – H1 2024 % 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 15
Slide 16: EBT 2010 – H1 2024
EBT 2010 – H1 2024 DKKm 300 275 250 225 200 175 2023: -25.1% 150 125 100 75 50 25 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 16
Slide 17: NIBD/EBITDA 2010 – H1 2024
NIBD/EBITDA 2010 – H1 2024 8 7 6 5 4 3 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 17
Slide 18: Group Financial Highlights H1 2024
GROUP FINANCIAL HIGHLIGHTS H1 2024 DKKm Q2 2024 Q2 2023 H1 2024 H1 2023 Growth 2023 Revenue 762.2 662.8 1,485.1 1,370.1 8.4% 2,606.3 EBITDA 153.7 102.6 302.1 230.3 31.2% 441.0 EBIT 103.9 51.4 202.5 129.5 56.3% 241.2 Profit before tax 91.6 39.5 176.4 107.9 63.5% 201.1 Equtiy 1,576.0 1,396.2 12.9% 1,4
Slide 19: Revenue from Own Brands
REVENUE FROM OWN BRANDS • Ergonomics, animal housing ventilation, guidewires, medical packaging and industrial standard components 450 400 350 300 DKKm 250 200 150 100 50 0 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 First half year of 2024 – 23 August 2024 / SP Group 19
Slide 20: Revenue Split by Product Area
REVENUE SPLIT BY PRODUCT AREA Revenue cleantech industries in DKKm Revenue healthcare products in DKKm 600 600 500 500 400 400 300 300 200 200 100 100 0 0 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 Revenue other demanding industries in DKKm Revenue food-related i
Slide 21: Market Dynamics
MARKET DYNAMICS Growth by customer group H1 2024 12M 2023 Healthcare 34.9% -3.3% Cleantech 5.5% 8.0% Food related 6.5% -12.9% Automotive -30.1% -5.4% Other demanding industries -17.7% -4.8% Hereof own brands 38.4% -12.0% First half year of 2024 – 23 August 2024 / SP Group 21
Slide 22: Revenue by Customer Groups in H1 2024
REVENUE BY CUSTOMER GROUPS IN H1 2024 29% CLEANTECH Our Purpose = Value Creation for our 40% 12% Customers HEALTHCARE FOOD-RELATED (Medico, Ergonomics) 15% 4% OTHERS AUTOMOTIVE At 31 December 2023: • A total of more than 1,000 customers • The largest customer accounts for 12.6% (2022: under 10%) • T
Slide 23: SP Group's Global Presence
SP GROUP’S GLOBAL PRESENCE Sale and production • Denmark (14) • Poland (6) • China (2) 29% • USA (2) • Latvia (1) • Slovakia (2) 49% • Sweden (1) • Finland (2) 14% 8% Opening soon • Thailand (1) Sale and distribution • Netherlands (1) • Sweden (3) • Canada (1) • Norway (1) Percentage distribution is
Slide 24: Acquisitions Since 2014
ACQUISITIONS SINCE 2014 Our strategy has been to make acquisitions, when we can create additional value by applying our capabilities This is especially true when the acquisition’s capabilities can improve our existing business or Skumplast create new platforms for growth and new technologies First h
Slide 25: Internationalisation
INTERNATIONALISATION H1 2005 2010 2015 2020 2021 2022 2023 2024 2024E Share of sales outside 37% 46% 54% 69% 72% 72% 71% 75% ~75% Denmark Share of employees outside 23% 50% 64% 72% 74% 72% 71% 70% ~75% Denmark (avg) Number of factories outside 2 6 12 17 17 18 17 17 18 Denmark Total number of factori
Slide 26: Share Price Performance
SHARE PRICE PERFORMANCE Share price performance from 1 January to 31 July 2024 450 400 Index 1.1.2016=74.7 350 300 250 200 150 100 50 16 2016 17 2017 18 2018 19 2019 20 2020 21 2021 22 2022 23 2023 24 2024 SP Group A/S OMX Copenhagen 20 (Rebased) STOXX Europe 600 / Industrials - IND (Rebased) Source
Slide 27: Shareholders
SHAREHOLDERS December 2015: Development shareholders from 2015 to August 2024 886 shareholders 4,200 -6% 3,930 27% 3,300 August 2024: 15% 3,066 8% 2,670 3,930 shareholders 2,200 7% 2,350 14% 1,944 13% 47% 1,319 Or up by 344% in 886 49% the period 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024/Aug
Slide 28: Market Conditions
MARKET CONDITIONS Demand factors Value creation at SP Group • Customers demand better and • Instead of using wood, metal and glass cheaper products we substitute with plastics and composite • Manufacturing globally; with a powerful team, the right equipment and the right technology • Customers focus
Slide 29: Outlook for 2024
Plastics drive innovation, improve quality of life, facilitate resource efficiency and climate protection OUTLOOK FOR 2024 © Vattenfall – Kriegers Flak First half year of 2024 – 23 August 2024 / SP Group 29
Slide 30: Outlook for 2024
OUTLOOK FOR 2024 • The global economy is still fragile and marked by political and economic uncertainty • No growth in Europe • New products and solutions, new customers and growth among a number of our existing customers are expected to contribute to growth and earnings • Due to inflation, higher i
Slide 31: Sustainability in Everything We Do
SUSTAINABILITY IN EVERYTHING WE DO • Ambition of achieving zero environmental impact from operations By 2030 • Entire global production to be Entire global powered by renewable energy production powered in 2030 by renewable energy • Becoming carbon neutral in Scope 1 and 2 emissions by 2030 • Suppor
Slide 32: UN Global Compact and UN Sustainable Development Goals
UN GLOBAL COMPACT AND UN SUSTAINABLE DEVELOPMENT GOALS • SP Moulding became a signatory to the UN Global Compact in January 2012 • SP Group became a signatory to the UN Global Compact in December 2020 • SP Group are working actively with the UN Sustainable Development Goals – read more in our Annual
Slide 33: Plastic Waste in Our Environment and Our Oceans
PLASTIC WASTE IN OUR ENVIRONMENT AND OUR OCEANS Waste left in our environment and in our oceans constitutes a serious problem for all living beings on this planet SP Group does NOT produce: • Plastic bags • Plastic cutlery • Plastic straws • Disposable plastic bottles or caps • Plastics have no plac
Slide 34: Household Waste Can Be Recycled into New Fencing
HOUSEHOLD WASTE CAN BE RECYCLED INTO NEW FENCING First half year of 2024 – 23 August 2024 / SP Group 34
Slide 35: Used Mats for Recycling
USED MATS FOR RECYCLING In 2023, Ergomat Sustainability Mats became a reality. These mats contain between 65% and 100% recycled material Ergomat has set up a recycling program where used mats are collected from customers and then granulated and processed into new mats. Through the recycling program,
Slide 36: Pallet Lids and Windhoods Produced in Recycled Plastics
PALLET LIDS AND WINDHOODS PRODUCED IN RECYCLED PLASTICS TPI Windhood produced in 90% Nycopac’s pallet lid recycled plastics (regrind) produced in 100% – 10% virgin plastics are recycled plastics (regrind) needed for UV protection First half year of 2024 – 23 August 2024 / SP Group 36
Slide 37: Wood Fibres Substituting Plastics: Beautiful Unique Design
WOOD FIBRES SUBSTITUTING PLASTICS: BEAUTIFUL UNIQUE DESIGN The Muuto chair is made from up to 25% wood fibres and 75% recycled plastics – each chair is unique Produced by SP Moulding First half year of 2024 – 23 August 2024 / SP Group 37
Slide 38: Nycopac Sleeve System
NYCOPAC SLEEVE SYSTEM Nycopac Sleeve System – foldable pallet containers for many industries Great advantages for the user are obtained in return handling, durability, easiness to fold and unfold and low weight. All included components are 100% reusable and recyclable Produced in a cooperation betwe
Slide 39: SP Group: A Part of the Solution, Not a Part of the Problem
SP GROUP: A PART OF THE SOLUTION, NOT A PART OF THE PROBLEM SP Group produces technical plastic solutions that contribute to solving the challenges of the future: • Cleantech: Insulation, generating renewable energy, reducing energy consumption, flue gas cleaning, energy meters and water purificatio
Slide 40: Q&A Session
Q&A SESSION First half year of 2024 – 23 August 2024 / SP Group 40
Slide 41: Appendix
APPENDIX First half year of 2024 – 23 August 2024 / SP Group 41
Slide 42: Surface Solutions
SURFACE SOLUTIONS • Accoat develops and produces environmentally- friendly technical solutions involving fluoroplastics (Teflon®), PTFE and other pure materials for industrial and medical purposes • Accoat applies plastic coatings on products and production plants in a number of industries. Articles
Slide 43: Coatings
SURFACE SOLUTIONS COATINGS 2023 in highlights • New tasks in the food industry • More tasks in the medical device industry • The aftermath of the Corona pandemic, continued war in Ukraine, interest rate hikes and global turmoil have had an impact on the level of activity • Some of the company’s cust
Slide 44: Plastic Solutions
PLASTIC SOLUTIONS Plastic businesses include: • Injection Moulding and Blow Moulding: SP Moulding, Sander Tech, Coreplast, Ulstrup Plast, Neptun Plast, SP Medical, MedicoPack and Meditec • Polyurethane (PUR) and Composite: Ergomat, Tinby, TPI Polytechniek, Bröderna Bourghardt and MM Composite • Vacu
Slide 45: 3D Printing and Machining Operations / 1
PLASTIC SOLUTIONS 3D PRINTING AND MACHINING OPERATIONS / 1 • DAVINCI 3D A/S, Bovil ApS and Kodaň Plast s.r.o. • DAVINCI 3D is specialised within advanced Additive Manufacturing (3D print) and can 3D print subjects in many colours and in varying hardness • Bovil is specialised in CNC processing of te
Slide 46: 3D Printing and Machining Operations / 2
PLASTIC SOLUTIONS 3D PRINTING AND MACHINING OPERATIONS / 2 2023 in highlights • New customers • High activity • DAVINCI 3D has performed well • Invested in new machines • Bovil has grown steadily since the takeover • Has launched a number of large investments • Kodaň Plast has accelerated its handso
Slide 47: Injection Moulding & Blow Moulding / 1
PLASTIC SOLUTIONS INJECTION MOULDING & BLOW MOULDING / 1 • SP Moulding, Sander Tech, Coreplast, Meditec and Ulstrup Plast are leading manufacturers of injection- moulded plastic precision components for a wide range of industrial entities • SP Moulding (Suzhou) in China, SP Moulding in Poland and Ul
Slide 48: Injection Moulding & Blow Moulding / 2
PLASTIC SOLUTIONS INJECTION MOULDING & BLOW MOULDING / 2 2023 in highlights • Global progress • Many new tasks • New factory in the USA in 2024 • Despite challenges we succeeded in securing many new projects • SP Moulding, Sander Tech, Ulstrup Plast and Coreplast saw a healthy intake of a number of
Slide 49: Polyurethane & Composite / 1
PLASTIC SOLUTIONS POLYURETHANE & COMPOSITE / 1 • Ergomat, Tinby, TPI Polytechniek, Bröderna Bourghardt and MM Composite • Locations: Søndersø (DK), Nørre Aaby (DK), Ejby (DK), Sieradz (PL), ‘s-Hertogenbosch (NL), Helsingborg (SE), Kungsbacka (SE), Cleveland (USA), Mount Pleasant (USA), Montreal (CAN
Slide 50: Polyurethane & Composite / 2
PLASTIC SOLUTIONS POLYURETHANE & COMPOSITE / 2 2023 in highlights • Higher activities • New products • Expansion in the Netherlands, Poland, USA, China and Latvia • Ergomat had a quiet year in 2023 and noted a decline in the primary markets • Tinby expanded its capacity to support global growth • TP
Slide 51: Vacuum Forming, Rotational Moulding and Extrusion / 1
PLASTIC SOLUTIONS VACUUM FORMING, ROTATIONAL MOULDING AND EXTRUSION / 1 • Gibo Plast, Dan-Hill-Plast and PlexxOpido develop, design and manufature thermo-formed, extruded and rotational-moulded plastic components • The components are i.a. used in refrigerators and freezers, buses and cars (automotiv
Slide 52: Vacuum Forming, Rotational Moulding and Extrusion / 2
PLASTIC SOLUTIONS VACUUM FORMING, ROTATIONAL MOULDING AND EXTRUSION / 2 2023 in highlights • More new tasks for heavy vehicles • Strong sale of own products for the maritime industry • Expansion of the production in Poland • Gibo Plast: Good activity. Managed to win a number of new projects • Worked
Slide 53: SP Group's Value Creation
SP GROUP’S VALUE CREATION = 0-100% regrind (recycled plastics) First half year of 2024 – 23 August 2024 / SP Group 53
Slide 54: ESG-Data / 1
ESG-DATA / 1 ESG Category Indicator Entity 2019 2020 2021 2022 2023 E Raw materials Virgin plastics Kg 15,978,078 15,347,852 16,764,678 15,522,512 15,031,343 Regenerated materials Kg 412,941 1,465,875 2,609,507 2,774,306 2,419,097 Glass fibre Kg 9,730,540 9,937,401 6,860,301 3,428,861 7,136,414 Coat
Slide 55: ESG-Data / 2
ESG-DATA / 2 ESG Category Indicator Entity 2019 2020 2021 2022 2023 S Working hours Working hours Hours 3,528,715 3,700,898 3,991,107 3,996,388 3,712,963 (permanently employed) Working hours (temporarily employed) Hours 118,235 196,892 226,044 234,042 271,100 Working hours incurred (total) Hours 3,6
Slide 56: Further information
Further information: Frank Gad, CEO SP Group A/S, Snavevej 6-10, DK-5471 Søndersø Phone: +45 7023 2379 / +45 3042 1460 E-mail: fg@sp-group.dk www.sp-group.dk First half year of 2024 – 23 August 2024 / SP Group 56