Semperit Ag Holding · VIE:SEM
Semperit — FY2023 Earnings Presentation
41 slides from Semperit's earnings presentation, Mar 19, 2024
Slide 1: Semperit Group FY 2023 Investor Presentation
SEMPERIT GROUP FY 2023 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 19 March 2024
Slide 2: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.11) Financial Performance (p.16) Outlook (p.27) Appendix (p.33) 2 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 3: Leading industrial elastomer specialist with diversified product portfolio
Leading industrial elastomer specialist with diversified product portfolio Semperit is a global pioneer in the production of high-quality elastomer applications for industrial clients with a 200 years’ history. We are constantly expanding our global footprint – with technologically sophisticated inn
Slide 4: Vision, mission and megatrends
OUR VISION: Addressing global challenges through sophisticated elastomer applications IMPORTANT MEGATRENDS Climate change | Demographics | Urbanisation | Mobility | Electrification Leading market position Technological edge Resilient business model Strong industrial platform Among the world's leadin
Slide 5: Strategic focus: profitable growth, customer intimacy and technology leadership
Strategic focus: profitable growth, customer intimacy and technology leadership New divisional structure evolves around Semperit’s two main business models and serves as ideal platform for focused organic and inorganic growth – while reducing complexity and enabling to scale up business Cost leade
Slide 6: Strategic focus for Semperit Industrial Applications
Strategic focus for Semperit Industrial Applications HOSES – Cost leadership and enlargement of PROFILES – Focus on Europe and US product range DH5 investment: Capacity expansion in Odry/CZ will Strengthening our position in the European construction strengthen Semperit’s position as one of the glob
Slide 7: Strategic focus for Semperit Engineered Applications
Strategic focus for Semperit Engineered Applications BELTING – Levering on FORM – Profitable niches and RICO – Platform for organic and existing capacity optimized margins inorganic growth Surpassing the expected global Strong focus on growth with new Expansion in Thalheim (Austria) market growth by
Slide 8: 2023: Semperit delivered as promised
2023: Semperit delivered as promised Setting the stage for a new growth platform Acquisition of Rico Group – a transformational growth step Refined strategy on track – guidance met against headwinds Sale of Sempermed completed Dividend paid – shareholders have benefited % from successful sale of S
Slide 9: Liquid Silicone Rubber (LSR) – strengthening of technological leadership
Liquid Silicone Rubber (LSR) – strengthening of technological leadership and levering on substantial market growth Capacity extension at Rico in Thalheim underpins our technological lead in injection molding tools and automation Acquisition of Rico allows complementary offering with high performan
Slide 10: Hoses – EUR 100m investment in Europe's largest hose production
Hoses – EUR 100m investment in Europe‘s largest hose production Growth investment to strengthen our position and competitiveness as one of the top global players for hoses Capacity extension by 24 million meters p.a. plus 3.6 million meters (relocation) up to 135 million meters p.a. in Odry resp.
Slide 11: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.11) Financial Performance (p.16) Outlook (p.27) Appendix (p.33) 11 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 12: Divisional developments of revenues along two very different success factors
Divisional developments of revenues along two very different success factors Divisional structure evolves around Semperit’s two main business models Semperit Industrial Applications Semperit Engineered Applications 46% 36% 48% 57% 2022 7% 2023 6% Surgical Operations 12 Investor Presentation FY 2023
Slide 13: Semperit Industrial Applications 2023
Semperit Industrial Applications 2023 High cyclicality of commodity business EBITDA in EUR m 23.9% 21.5% EBITDA margin 19.6% 19.1% 19.2% 18.0% 16.6% 17.6% 15.4% 12.5% Semperit 10.2% Industrial 30.2 Applications 21.3 24.0 6.3% 15.5 15.3 14.2 14.3 17.5 17.8 12.6 4.2 7.4 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q
Slide 14: Semperit Engineered Applications 2023
Semperit Engineered Applications 2023 Tailwinds from mining, lower raw materials prices and RICO contribution EBITDA in EUR m 16.4% 17.1% 18.3% 17.0% 16.0% 15.1% EBITDA margin 12.7% 2.3 11.3% 10.2% 8.7% Semperit 10.1% 4.1 Engineered 6.1% 15.8 12.2 13.1 14.0 Applications 11.3 9.0 8.4 7.5 5.2 5.4 5.2
Slide 15: ESG achievements 2023
ESG achievements 2023 Key focus points in 2023 Performance 2023 15% • Competitive ESG rating year: -9% -10% 10% -11% 10% -5% − EcoVadis Platinum 5% 5% Energy Waste -1% 0% 0% 0% 2021 2022 2023 2021 2022 2023 30% -13% 15% -21% -18% 20% -8% 10% − CDP Climate C, Forest C, -4% 10% -4% 5% Emissions Water
Slide 16: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.11) Financial Performance (p.16) Outlook (p.27) Appendix (p.33) 16 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 17: Financial highlights 2023
Financial highlights 2023 New financial Lean management Main focus on Strong balance sheet Base dividend at arrangements since and structural cost free cashflow for structure EUR 1.50 per share Q1’2023 based on savings to support growth investments, and additional strategic priorities of operating l
Slide 18: Overview of financial KPIs 2021-2023
Overview of financial KPIs 2021-2023 2021 2022 2023 Δ 2022/2023 Revenues, in EUR m 1,182.2 779.8 721.1 -7.5% EBITDA, in EUR m 361.8 100.5 71.8 -28.5% EBITDA margin, in % 30.6 12.9 10.0 -2.9PP EBIT, in EUR m 315.0 62.1 34.6 -44.3% EBIT margin, in % 26.6 8.0 4.8 -3.2PP Earnings after tax from continue
Slide 19: Detail on Last Twelve Month (LTM) view
Detail on Last Twelve Month (LTM) view Industrial Sector – development of LTM Revenue (EUR m) and EBITDA margin (%) 734.0 739.5 717.4 705.0 695.1 660.3 681.8 596.9 556.1 527.4 507.0 518.9 490.1 478.4 487.0 497.3 17.1 17.5 16.7 16.9 16.3 16.5 15.7 15.9 16.0 15.3 14.7 14.9 14.7 14.6 14.8 14.3 Q1’20 Q2
Slide 20: Major drivers of operating performance – EBITDA bridge
Major drivers of operating performance – main building blocks of EBITDA-bridge in EUR m -29% 32.6 100.5 7.8 5.8 81.7 90.7 7.6 71.8 -10.0 -4.6 -9.9 -128.5 -20.1 EBITDA Price Effect Volume Change in Cost of Logistics Personnel Misc. op. EBITDA Cost savings adj. One-off rep. Sales Effect Sales inventor
Slide 21: Working Capital overview
Working Capital overview Components of Working Capital1 in EUR m 19.6% 20.3% 20.5% 21.8% 15.9% 153.1 158.8 155.6 160.4 127.7 128.2 125.2 114.7 121.9 110.8 Inventories 88.9 95.9 99.4 100.8 86.1 Trade receivables -63.9 -62.2 -58.5 -62.3 -69.2 Trade payables 31 Dec ’22 31 March ’23 30 June ’23 30 Sept
Slide 22: CAPEX development 2021-2023
CAPEX development 2021-2023 Maintenance and small growth projects Growth Rico Acquisition 2023 36.2 19.4 164.8 EUR 184.2m 2023 strategic growth CAPEX at EUR 184.2m: 20221 54.5 EUR 164.8m for Rico acquisition EUR 19.4m 20211 47.9 for organic growth − by optimizing the phasing of capacity expansion DH
Slide 23: Free cash flow before strategic growth investment
Free cash flow before strategic growth investment in EUR m 2023 66.2 85.3 -4.7 0.9 111.5 -36.2 26.3 Operating Net interests Other investment cash flow Maintenance and Free cash flow before Proceeds from Free cash flow after cash flow small growth projects sale of businesses sale of businesses sale o
Slide 24: Financial Net Debt Development 2023
Financial Net Debt Development 2023 Improved operating cash flow generation on the back of proactive working capital management Proceeds from company disposals are major driving force of higher FCF in 2023 Higher FCF were used for acquisition of Rico Group, strategic growth investments (DH5, R
Slide 25: Robust balance sheet structure and financial profile
Robust balance sheet structure and financial profile Balance sheet structure Financial profile as of 31 December 2023 Balance sheet 31/12/2023: EUR 938m Cash and cash equivalents at EUR 113m Balance sheet 31/12/2022: EUR 843m New financing of EUR 360m arranged – EUR 33m already used for Odry DH5
Slide 26: Capital allocation and usage of cash
Capital allocation and usage of cash Free Cashflow Normal Investments € Growth Investments € Shareholder Return % MAINTENANCE GROWTH CAPEX & M&A DIVIDENDS CAPEX DIGITALIZATION Commitment to maintaining Strategic growth project Acquisition of the Attractive and enhancing our expansion of the hydrauli
Slide 27: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.11) Financial Performance (p.16) Outlook (p.27) Appendix (p.33) 27 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 28: Market Outlook 2024
Market Outlook 2024 Current cyclical downturn impacts commodity business (SIA) harder due to weak construction- and yellow goods industries Diversified markets with different dynamics for SEA – thus more resilient and stable with focus on technology and industrial solutions (e.g. mountain applic
Slide 29: Management agenda
Management agenda Focus on industrial strategy with profitable growth, customer intimacy and technological leadership Distinctive industrial focus on two competitive business models Managing the downturn through share of wallet gains and cost programme Simplification, lean management and ope
Slide 30: Guidance 2024
Guidance 2024 2024: EBITDA expected at ~EUR 80m 2024: CAPEX expected at ~EUR 70m 40% growth – 60% maintenance and small growth projects Dividend proposal to the AGM ~EUR 0.50 per share 30 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 31: Five reasons to invest in Semperit
Investment Proposition Five reasons to invest in Semperit 1 Leading market position in elastomer applications with strong industrial base 2 Relentless focus on innovation and technology 3 Resilient business model driven by operating leverage and cost leadership 4 Strong balance sheet and cash genera
Slide 32: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2024 Judit Helenyi, Director Investor Relations 19.03.2024 Publication of 2023 annual financial statements 23.04.2024 Annual General Meeting, Vienna +43 1 79777 - 310 15.05.2024 Report on 1-3 2024 www.semperitgroup.com/en/
Slide 33: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.11) Financial Performance (p.16) Outlook (p.27) Appendix (p.33) 33 Investor Presentation FY 2023 I 19 March 2024 I Investor Relations
Slide 34: Divisions & Group: 2023 vs 2022
Divisions & Group: 2023 vs 2022 in EUR m INDUSTRIAL APPLICATIONS (SIA) ENGINEERED APPLICATIONS (SEA) SEMPERIT GROUP 1 2 1 2 1 2023 2022 % 2023 2022 % 2023 2022 % Revenue 330.8 450.2 -26.5% 351.0 283.8 23.7% 721.1 779.8 -7.5% EBITDA 46.9 88.0 -46.8% 50.5 37.2 35.8% 71.8 100.5 -28.5% EBITDA margin 14.
Slide 35: Semperit Group (continued operations)
Semperit Group (continued operations) in EUR m SEMPERIT GROUP FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Revenue 601.8 181.5 213.3 198.6 186.4 779.8 185.2 189.0 173.4 173.4 721.1 EBITDA 54.0 20.3 33.7 25.9 20.7 100.5 20.8 22.9 13.1 15.0 71.8 EBITDA margin
Slide 36: Semperit Industrial Applications, Semperit Engineered Applications & Corporate
Semperit Industrial Applications, Semperit Engineered Applications & Corporate in EUR m SEMPERIT INDUSTRIAL APPLICATIONS (SIA) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Revenue 341.9 111.1 126.4 111.6 101.1 450.2 99.4 93.0 72.2 66.2 330.8 EBITDA 59.2 21.
Slide 37: Surgical Operations
Surgical Operations Weak results driven by low demand and price levels EBITDA in EUR m 5.6% EBITDA margin 0.8 0.6 -0.4 5.1% -0.2 -1.9 Surgical -4.0% -2.1 -1.6% -3.4 -2.8 Operations -20.9% -19.1% -24.8% -25.3% Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 2023 vs. 2022 Revenue Closing Sempermed s
Slide 38: Key figures 2012-2023
Key figures 2012-2023 in EUR m KEY PERFORMANCE FIGURES 2012 2013 2014 1 2015 1 2016 adj.2 2017 adj.3 2018 adj.4 2019 adj.5 2020 adj.6 2021 7 2022 adj.7 2023 adj.8 Revenue 828.6 906.3 858.3 914.7 852.4 874.2 875.5 840.6 927.5 601.8 779.8 721.1 EBITDA 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 208.6 5
Slide 39: 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 250 ø 2021 ø 2022 ø 2023 ø 2024 200 150 100 50 0 01 / 2021 01 / 2022 01 / 2023 01 / 2024 Butadiene Europe Butadiene Korea 1) Sele
Slide 40: Overview price indices LFO-F-NWE / wire rod
Overview price indices LFO-F-NWE / wire rod Significant increase for raw material1) used in industrial segments Price index LFO-F-NWE Price index wire rod 225 200 ø ø 2021 ø 2022 ø 2023 ø ø 2021 ø 2022 ø 2023 2024 2024 200 175 175 150 150 125 125 100 100 75 75 50 50 25 25 01/2021 01/2022 01/2023 01/
Slide 41: ESG targets adapted to the new Group structure
ESG targets adapted to the new Group structure ESG Ratings: EcoVadis platinum award for second year in a row CDP -Climate Change improved to C (after C-), first rating for Forest (C) Diversity & Inclusion (D&I) as focus point introduced while also applying new targets More ambitious goal set for sup