Semperit Ag Holding · VIE:SEM
Semperit — Q3 2019 Earnings Presentation
35 slides from Semperit's earnings presentation, Nov 21, 2019
Slide 1: Semperit Group Preliminary Q1-3 2019 / Q3 2019 Investor Presentation
SEMPERIT GROUP PRELIMINARY1) Q1-3 2019 / Q3 2019 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 21st November 2019 1) The figures are preliminary. As the interim Group report as of 30 September 2019 have not been authorized for issue so far (see adhoc announcement on 13 Novembe
Slide 2: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 2 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 3: Update on Sempermed
Update on Sempermed Homework done in operational terms with profits for the second consecutive quarter Stronger price competition in deteriorating market environments and low plant utilization at Sempermed and all other Industrial segments Market predominantly driven through higher level of au
Slide 4: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 4 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 5: Transformation programme shows material impact, with Group EBITDA significantly above last year's levels
Transformation programme shows material impact, with Group EBITDA significantly above last year’s levels Reduced complexity and higher quality of order book clearly supportive … … however, economic downturn and decreasing order books will impact coming quarters Outlook uncertain due to limited
Slide 6: Key topics Q1-3 2019
Key topics Q1-3 2019 Revenue decreased by 2.7% to € 652.2m Semperit Group continues to improve – Industrial Sector down only by 1.5% to at EBITDA level € € 426.2m – SemperMove10 delivers tangible € improvements – Medical Sector: revenue decline € reduced to -4.9% yoy to € 226.0m – Profitability
Slide 7: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 7 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 8: Revenue development Q1-3 2019
Revenue development Q1-3 2019 in € m Revenue development -2.7% 670.3 652.2 -0.3 -6.0 -0.3 Semperflex: Almost unchanged -11.5 despite reduced market demand due to destocking Industrial Medical Sempertrans: Decrease due to Sector Sector lower volumes as a result of focus shift to quality of order
Slide 9: Industrial Sector EBITDA Q1-3 and Q3 2019
Industrial Sector EBITDA Q1-3 and Q3 2019 Strong improvement in Industrial Sector: +25.3% EBITDA yoy, +€ 15.1m Q1-3’19 result already Quarterly development with a clearly positive trend despite seasonal above FY 2018 headwind in Industrial Sector: Q3’19 yoy EBITDA +23.3% or € 4.1m 74.7 28.2 24.5 59.
Slide 10: Semperflex Q1-3 2019
Semperflex Q1-3 2019 Q1-3'18 vs Q1-3’19: +3.4% EBITDA yoy, € +1.3m 23.4% 23.8% 22.8% 24.4% 19.8% 20.1% EBITDA in € m 17.4% EBITDA margin Semperflex 13.7 14.9 13.9 14.5 9.3 10.9 10.8 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018 Revenue almost unchanged despite reduced Revenue m
Slide 11: Sempertrans Q1-3 2019
Sempertrans Q1-3 2019 Q1-3'18 vs Q1-3’19: >100% EBITDA yoy, € +9.1m 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 6.4% 5.4 2.1% 4.6 1.4% 2.1% 2.4 2.7 0.5 0.8 0.7 1) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018 Successful turnaround after closure of Revenue Sempertra
Slide 12: Semperform Q1-3 2019
Semperform Q1-3 2019 Q1-3'18 vs Q1-3’19: +26.3% EBITDA yoy, € +4.7m 15.7% 16.4% 14.4% 13.8% 12.2% EBITDA in € m 9.6% 8.9% EBITDA margin Semperform 7.3 7.9 8.3 6.2 6.6 4.5 3.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018 Revenue stable despite reduced market demand Revenue 148
Slide 13: Medical Sector / Sempermed segment Q1-3 2019
Medical Sector / Sempermed segment Q1-3 2019 Q1-3'18 vs Q1-3’19: >100% EBITDA yoy, € +2.3m 2.3% 1.8% 0.8% EBITDA in € m 1.4 1.8 0.6 EBITDA margin Sempermed -0.9 -0.9 Medical -1.3 -1.1% -3.1 -1.2% Sector -1.7% -4.2% Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018 Revenue Lower rev
Slide 14: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 14 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 15: Top Line Financials and Profitability Overview – Q1-3 2019
Top Line Financials and Profitability Overview – Q1-3 2019 Key figures Semperit Group Q1-3 2019 in EUR m Q1-3 2019 Q1-3 2018 Change Change in EUR m Revenue 652.2 670.3 -2.7% -18.1 1) 45.8 +23.1% +10.6 EBITDA adjusted 56.4 EBITDA margin adjusted 8.6% 6.8% +1.8 PP – EBITDA 56.4 41.9 +34.5% 14.5 EBITDA
Slide 16: Revenue development Q1-3 2019
Revenue development Q1-3 2019 in € m Revenue development H1 2019 -2.7% 670.3 652.2 -0.3 -6.0 -0.3 -11.5 Industrial Medical Sector Sector -1.5%1) -0.2%1) -5.4%1) -0.2%1) -4.9%1) Q1-3 2018 Semperflex Sempertrans Semperform Sempermed Q1-3 2019 Revenue 174.7m 103.3m 148.2m 226.0m Q1-3 2019 ► 1) All perc
Slide 17: EBITDA development Q1-3 2019
EBITDA development Q1-3 2019 in € m +23.1% +9.1 +2.3 56.4 +4.7 -6.8 45.8 +1.3 1) Q1-3 2018 Semperflex Sempertrans1) Semperform Sempermed Corporate Q1-3 2019 adj. EBITDA 45.8m 38.0m 3.6m 18.0m -0.8m -13.0m Q1-3 2018 EBITDA 39.3m 12.7m 22.7m 1.5m -19.8m 56.4m Q1-3 2019 EBITDA margin 22.5% 12.3% 15.3%
Slide 18: SemperMove10 shows material impact: EBITDA improvement for 7th consecutive quarter
Sempermove10 shows material impact: Consistent yoy EBITDA improvement for 7th consecutive quarter +34.5% +23.1% 22.7 56.4 10.1% 17.3 45.8 17.0 41.9 15.8 16.5 7.5% 8.0% 7.7% 13.1 7.1% 5.9% 8.6% 6.8% 4.5 6.3% 2.2% 1) Q1-3 2018 Q1-3 2018 Q1-3 2019 Q1 Q2 1) Q3 Q4 EBITDA margin EBITDA in € m EBITDA margi
Slide 19: CAPEX by quarter
CAPEX by quarter FY 2018: overall CAPEX of € 81m, approx. 50% for Semperflex and mixing As planned CAPEX of € 25.1m implies predominantly maintenance CAPEX FY 2019: overall CAPEX of about € 40m planned CAPEX per segment in € m 23.2 Semperflex Sempertrans 10.0 Semperform 15.6 16.2 Sempermed 5.2
Slide 20: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 20.6%1) 21.0%1) 21.0%1) 20.5%1) 19.0%1) 181.2 184.3 184.8 177.9 163.4 162.8 150.4 150.6 147.1 136.0 Inventories 123.7 101.6 112.6 114.1 109.8 Trade receivables -67.7 -78.4 -83.3 -82.5 Trade payables -105.3 30 Sept 2018 31 Dec 2018 31 Marc
Slide 21: Cash flow development
Cash flow development Improved results, active WC management and strict CAPEX control support cashflow development First positive free cash flow after negative previous years Development of cash flow components1) in € m 83 50 60 34 15 -9 -21 -42 -23 -43 -57 -71 Q1-3 2016 Q1-3 2017 2) Q1-3 2018 Q
Slide 22: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 22 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 23: Management agenda 2019
Management agenda 2019 Safeguard SemperMove10 Address global economic downturn… … and take proactive initiatives Finalise strategic transformation plan Cope with increasing competitive environment in medical sector and develop strategic options 23 Investor Presentation Q1-3 2019 I 21 Novem
Slide 24: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2020 Judit Helenyi, Investor Relations 20.03.2020 Publication of 2019 annual financial statements 21.04.2020 Annual general meeting, Vienna +43 1 79777 - 310 27.04.2020 Dividend payment day www.semperitgroup.com/en/ir Mode
Slide 25: Agenda
Agenda Update on Sempermed (p.3) Highlights (p.5) Operational highlights (p.8) Financial performance (p.15) Management agenda (p.23) Appendix (p.26) 25 Investor Presentation Q1-3 2019 I 21 November 2019 I Investor Relations
Slide 26: Sectors and Group Q1-3 2019 vs Q1-3 2018
Sectors and Group Q1-3 2019 vs Q1-3 2018 Industrial Sector Medical Sector Semperit Group1) in EUR m Q1-3 2019 Q1-3 2018 % Q1-3 2019 Q1-3 2018 % Q1-3 2019 Q1-3 2018 % Revenue 426.2 432.7 -1.5% 226.0 237.5 -4.9% 652.2 670.3 -2.7% EBITDA 74.7 55.8 +34.0% 1.5 -0.8 – 56.4 41.9 +34.5% EBITDA margin 17.5%
Slide 27: Sectors and Group: Q3 2019 vs Q3 2018
Sectors and Group: Q3 2019 vs Q3 2018 Industrial Sector Medical Sector Semperit Group1) in EUR m Q3 2019 Q3 2018 % Q3 2019 Q3 2018 % Q3 2019 Q3 2018 % Revenue 136.7 141.3 -1.5% 78.2 80.4 -2.8% 214.9 221.7 -3.1% EBITDA 22.0 17.9 +34.0% 1.8 -0.9 – 17.3 13.1 +32.1% EBITDA margin 16.1% 12.6% +3.5 PP 2.3
Slide 28: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable FY Q3 Q1 Q2 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2016 2017 1) 2017 adj.2) 2017 adj.2) 2017 adj.2) 2017 adj. 2) 2018 2018 adj. 3) 2018 2018 2018 2019 2019 2019 in EUR m adj. adj. 2) Revenue 852.4 229.3 232.3 208.4 204.2 874.2 220.9 22
Slide 29: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q3 FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 in EUR m adj.2) adj.2) Revenue 184.9 53.5 53.2 46.8 52.5 206.1 58.8 62.8 53.4 55.1 230.0 61.1 59.7 53.8 EBITDA 43.4
Slide 30: Semperform and Sempermed (adj. where applicable)
Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 in EUR m adj. 5) adj. 4) Revenue 173.1 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3 43.7 192
Slide 31: 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 32: 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 ø 2018 350 300 ø 2017 ø YTD 2019 250 ø 2016 200 150 100 50 Butadiene Europe Butadiene Korea 1) Selected raw mater
Slide 33: 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 ø 2018 ø YTD 350 ø YTD 2019 ø 2018 325 2019 175 300 275 ø 2017 ø 2017 150 250 225 ø 2016 ø 2016 200 125 175 150 100 125 100 75 75
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