Alzchem Group Ag · XETR:ACT
Alzchem — Q1 2019 Earnings Presentation
34 slides from Alzchem's earnings presentation, May 10, 2019
Slide 1: 2019/Q1 AlzChem Group AG
2019/Q1 AlzChem Group AG Ulli Seibel, CEO Andreas Niedermaier, CFO May 10, 2019
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements By reviewing this information, you acknowledge that the information may be updated, changed or corrected in the discretion of AlzChem Group AG (hereinafter “the Company”) at any time and should not be relied on for any investment decisi
Slide 3: Agenda
AGENDA Analyst presentation 2019 / Q1 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 3
Slide 4: Highlights
HIGHLIGHTS Summary of operative business Q1 / 2019 FACTS & NUMBERS FOR Q1 / 2019 • Growth focus on Specialty Chemicals • Successful start of own distribution of Creamino • High raw material costs in the Basics & Intermediates Segment passed on to customers • Major CAPEX projects in time and on budge
Slide 5: Progress of Construction Projects
PROGRESS OF CONSTRUCTION PROJECTS Projects on budget and in time for start in summer 2019 New production facility Production of highly will triple the actual corrosive production capacity chlorinated nitriles with attractive margin Investment secured with long term customer contracts ALZCHEM GROUP –
Slide 6: Own Distribution of Creamino
OWN DISTRIBUTION OF CREAMINO Creamino - the source of creatine for animal nutrition DIFFERENT MARKETING APPROACH CREAMINO IN USE ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 6
Slide 7: The dietary supplement with pure creatine
The dietary supplement with pure creatine HEALTH BENEFITS • Strengthens the muscular system • Acts against the natural age-related reduction of muscle mass • Leads to maximum filled creatine levels in your cells within four weeks • Free of animal ingredients, gluten, lactose and sugar CREATINE HEALT
Slide 8: Financial Overview Q1 / 2019
FINANCIAL OVERVIEW Q1 / 2019 Result within guidance Q1 / 2019 COMMENTS • Q1/2019 sales and accordingly EBITDA below previous year • Nevertheless EBITDA exceeds the budgeted figures in Q1 • Due to inventory sell out by our former distributor at Creamino, we sold less product to the market. As guided,
Slide 9: Agenda
AGENDA Analyst presentation 2019 / Q1 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 9
Slide 10: Basics & Intermediates Segment
BASICS & INTERMEDIATES SEGMENT Our integrated system DESCRIPTION The "Basics & Intermediates" segment comprises the production of basic and intermediate products that are marketed as independent products - for example in agriculture, steel production and the automotive sector - and as raw materials
Slide 11: Basics & Intermediates Segment: Financial Overview
BASICS & INTERMEDIATES SEGMENT Segment analysis – financial overview (M€) SALES 3.8% SALES ANALYSIS 35.7 37.0 37.8 36.9 35.9 35.5 34.2 33.0 30.3 Q1 2018 + 0.1% + 3.1% + 0.6% vs. Volume Price FX Q1 2019 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 COMMENTS • Q1/2019 sales 3
Slide 12: Specialty Chemicals Segment
SPECIALTY CHEMICALS SEGMENT Our growth focus DESCRIPTION The "Specialty Chemicals" segment produces and sells high-quality growth products in the area of specialty chemicals. SELECTED PRODUCTS ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 12
Slide 13: Specialty Chemicals Segment: Financial Overview
SPECIALTY CHEMICALS SEGMENT Segment analysis – financial overview (M€) SALES -7.1% SALES ANALYSIS 53.9 56.8 48.7 47.9 49.8 48.9 50.1 45.1 44.1 Q1 2018 - 11.6% + 2.3% + 2.2% vs. Q1 2019 Volume Price FX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 COMMENTS • Sales remain sig
Slide 14: Other & Holding Segment
OTHER & HOLDING SEGMENT Further activities DESCRIPTION The "Other & Holding" segment comprises all other activities that cannot be allocated to the other segments. The segment offers infrastructure and energy supply services at our locations for the chemicals segments and for external customers. ALZ
Slide 15: Other & Holding Segment: Financial Overview
OTHER & HOLDING SEGMENT Segment analysis – financial overview (M€) SALES SALES ANALYSIS 2.2% 6.8 6.8 7.0 6.8 7.0 6.6 6.5 6.3 6.1 Q1 2018 + 0.7% + 1.5% + 0.0% vs. Q1 2019 Volume Price FX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 2018 2018 2018 2019 COMMENTS • Sales 2.2% above prior year qua
Slide 16: Balance Sheet AlzChem Group
BALANCE SHEET AlzChem Group (M€) ASSETS LIABILITIES 347.6 347.6 313.6 313.6 67.7 Equity 280.2 280.2 68.4 182.2 57.9 171.0 Non-current-assets 142.7 203.1 Non-current liabilities 164.0 146.3 86.8 Inventories 71.4 78.9 Trade receivables 35.0 34.4 46.9 76.0 81.2 76.8 Current liabilities Other current-as
Slide 17: Cash Flow
CASH FLOW Growth CAPEX is the basis for further growth COMMENTS • Operating cash flow strained with higher NWC – inventory reduction project started • Higher investing cash flow primarily due to main projects like Creamino and NITRALZ® ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 17
Slide 18: Outlook 2019
OUTLOOK 2019 Sales and earnings growth to continue (M€) SALES Adj. EBITDA COMMENTS 398.9 • Sales growth will be organically driven both by Specialty Chemicals and Basics & 389.9 Intermediates business 375.2 51.9 • Raw material markets expected to settle at 49.4 a high level (previous year: increase
Slide 19: Outlook 2019: Underlying Assumptions
OUTLOOK 2019 Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed – no economic turmoil (USA, China) • Stability in product registration and energy legislation • US dollar forecast: 1.15 € / US$ Factors to watch • Continuous c
Slide 20: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2019 MAY 10 Quarterly Statement 1st Quarter 2019 2019 MAY 14 General Meeting 2019 2019 MAY 15 Frühjahrskonferenz 2019, Frankfurt 2019 AUG 14 Half-Year Financial Report 2019 2019 SEP 25 Berenberg European Conference 2019 SEP 27 Baader Investment Konferenz 2019 NOV 14
Slide 21: Sales
M€ M€ M€ 1,584 ~92 ~13 ~(2) EMPLOYEES SALES EBITDA OPERATING CASHFLOW ALZCHEM SPECIALTY PRODUCTS CHEMICALS 54% ARE SOLD WORLDWIDE SALES Q1 / 2019 INNOVATION SINCE BASICS & INTERMEDIATES 1908 39% OTHERS & HOLDING 7% All financial indicators relating to Q1 2019 figures
Slide 22: Thank You for Your Attention
CONTACT THANK YOU Investor Relations T +49 8621 86-2888 FOR YOUR ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 23: Agenda
AGENDA Analyst presentation 2018/10-12 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 23
Slide 24: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 24
Slide 25: Income Statement
INCOME STATEMENT AlzChem Group ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 25
Slide 26: Cash Flow
CASH FLOW AlzChem Group ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 26
Slide 27: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION 27
Slide 28: Pension Accounting (IFRS)
PENSION ACCOUNTING (IFRS) 8.54% in M€ 119.3 110.0 8.9 0.3 0.5 -0.3 -22.0 97.4 PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION IN FINANCIAL PROVISION COSTS PAYMENTS REMEASURE- PROVISION 31 TAX ASSETS LIABILITY 31 STATEMENT 31 Dec, 2018 MENTS March, 2019 March, 2019 EBITDA
Slide 29: Executive Team
Executive Team Experienced management to deliver on the next phase ULLI SEIBEL ANDREAS NIEDERMAIER KLAUS ENGLMAIER CURRENT POSITION CEO (since 2009) CFO (since 2010) COO (since 2016) WITH ALZCHEM SINCE1 2009 1999 1988 DEGREE Industrial Engineering Industrial Engineering Mechanical Engineering • Comp
Slide 30: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies TROSTBERG (GER) SUNDSVALL (SE) ATLANTA (USA) SHANGHAI (CN) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE ALZCHEM GROUP – 2019 / Q1 ANALYST PRESENTATION WALDKRAIBURG (GER) 30
Slide 31: Fully Integrated Business Model (Verbund System)
Fully Integrated Business Model (“Verbund”- System) Ability to adapt production to satisfy changing end market needs THE “VERBUND-SYSTEM” • Fully integrated production network • The output of a production step serves as the basic input for the next production step. • Cost benefits • Highly specializ
Slide 32: Specialty Chemicals: Our Products and Markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS A feed additive for broilers and pigs Feed additive Premium brand for creatine monohydrate as a food supplement in sports nutrition Food supplements Alpha lipoic acid for dog
Slide 33: Basics & Intermediates: Our Products and Markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS Calcium carbide-based mixtures for hot metal desulphurization Steel industry INTERMEDIATES Fuel for airbags, key production of the intermediate product Automotive BASICS & Pha
Slide 34: AlzChem Share
ALZCHEM SHARE Share Details 29.03.2019 ISIN / WKN DE000A0AHT46 / A0AHT4 SHAREHOLDER STRUCTURE % LIVIA Corporate Development SE 37.7 TICKER SYMBOL SFP1 HDI Vier CE GmbH 20.4 TYPE AND NUMBER OF 101,763,355 bearer shares SHARES with no par value (par value shares) Four two na GmbH 15.8 STOCK Regulated