Alzchem Group Ag · XETR:ACT
Alzchem — Q3 2020 Earnings Presentation
34 slides from Alzchem's earnings presentation, Nov 11, 2020
Slide 1: AlzChem Group AG Q3 2020
AlzChem Group AG Andreas Niedermaier, CEO Dr. Georg Weichselbaumer, CSO November 11, 2020 2020/Q3
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements This presentation contains forward-looking statements about the business, financial condition and earnings performance of the AlzChem Group. These statements are based on assumptions and projections resting upon currently available info
Slide 3: Agenda
AGENDA Analyst Presentation Q3/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP AG – Q3/2020 FINANCIAL REPORT ANALYST PRESENTATION 3
Slide 4: Highlights
HIGHLIGHTS Summary of business development Q3/2020 Financial Report Stable growth in Lower commodity prices NITRALZ® business support earnings COVID-19: Positive development in stable production without Perlka® business interruptions Bioselect® products key Slow recovery of steel and contributor in
Slide 5: Decision to add one more line to the nitrile production unit
Decision to add one more line to the nitrile production unit BASIC CHEMICALS The additional investment will create profitable growth for the segment In 2017, AlzChem decided to invest 7.2 million € (Step I.) into a first ~12 m€ expansion of the NITRALZ® production plant in Trostberg (DE). INVESTMENT
Slide 6: NITRALZ raw materials for a variety of end markets
Raw materials for a variety of end markets (pharma, agro, biocides, pigments) PRODUCTION ADVANTAGE NITRALZ® APPLICATIONS • Proprietary process > 50 years experience • Sustainable, continuous, solvent free green process • Reliable supply from the sole manufacturer outside of Agrochemicals Industrial
Slide 7: Financial Overview Q3/2020
FINANCIAL OVERVIEW Q3/2020 Key figures Q3 Q3 2019 2020 AlzChem Group yoy % yoy % 2019 2020 1-9 1-9 SALES (in M€) 99.4 81.4 -18.2% 287.7 278.6 -3.1% EBITDA (in M€) 13.6 12.0 -11.6% 41.4 41.1 -0.7% EBITDA margin (in %) 13.6% 14.7% +1.1 pp 14.4% 14.8% +0.4 pp Earnings per Share (in €) 0.49 0.37 -24.9%
Slide 8: Agenda
AGENDA Analyst Presentation Q3/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 8
Slide 9: 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 for
Slide 10: Basics & Intermediates Segment: steel and automotive weakness
BASICS & INTERMEDIATES SEGMENT Steel and automotive weakness not fully offset by NITRALZ® and agro SALES -22.5% SALES EBITDA SALES ANALYSIS 41.7 35.9 35.5 37.8 36.0 38.3 33.0 34.4 32.3 DELTA DELTA -7.3% Q3 01 - 09 Volume -21.1% -7.4% 115.0 106.6 Price -1.0% 0.0% Currency -0.4% +0.1% Q3 Q4 Q1 Q2 Q3 Q
Slide 11: 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 AG – Q3/2020 FINANCIAL REPORT ANALYST PRESENTATION 11
Slide 12: Specialty Chemicals Segment: COVID-19 impact
SPECIALTY CHEMICALS SEGMENT COVID-19 affects more than the automotive part of the business SALES -15.6% SALES EBITDA SALES ANALYSIS 57.9 49.8 48.9 50.1 51.7 51.0 47.3 52.2 DELTA DELTA 43.0 +0.2% Q3 01 - 09 Volume -15.5% -1.1% 152.7 153.0 Price +1.1% +1.3% Currency -1.2% +0.1% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 13: Other & Holding Segment
OTHER & HOLDING SEGMENT Further activities DESCRIPTION The "Other & Holding" segment offers infrastructure and energy supply services at our locations for the chemicals segments and for external customers. The segment also comprises all activities that cannot be allocated to the other segments. ALZC
Slide 14: Other & Holding Segment: service sales
OTHER & HOLDING SEGMENT Service sales largely stable with a slight downward trend SALES SALES EBITDA SALES ANALYSIS -10.7% 6.6 6.6 6.8 6.7 6.5 6.4 DELTA DELTA 6.3 6.1 6.1 Q3 01 - 09 Volume -13.2% -7.4% Price +2.4% +2.4% Currency 0.0% 0.0% -5.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2018 2019 2019 2019 201
Slide 15: Balance Sheet
BALANCE SHEET AlzChem Group AG (M€) ASSETS LIABILITIES 342.6 342.5 342.6 342.5 61.3 64.0 Equity 186.3 182.9 Other non-current assets 86.1 77.6 Other non-current liabilities 25.7 27.2 Deferred taxes for pension provision 134.6 141.5 Pension provision 74.6 73.6 Inventories 32.1 Trade receivables 32.5
Slide 16: Cashflow
CASHFLOW Positive free cashflow due to strong cash inflow from ongoing operations Cashflow from ongoing Cashflow from Cashflow from Net increase / decrease operations (Net cashflow) investing activity financing activity in cash and cash equivalents +33,8 +25,6 -16.0 -32.2 -14.1 +3,6 +3.6 -3,0 1-9 1-
Slide 17: Implementing Operating Targets
IMPLEMENTING OPERATING TARGETS Focus on the key growth drivers IMPLEMENTATION OF THE ESTABLISH FIRST SALES CREAMINO® GROWTH OF LIVADUR® • Increase number of trials worldwide • Pharmacy sales very low • Oversupply and weak demand in food • Push various promotion activities chain (radio spots, podcast
Slide 18: Outlook 2020
OUTLOOK 2020 Outlook adjustment for sales and EBITDA to stable to moderately lower slightly to sharply SALES rising EBITDA COMMENTS stable to slightly • Sales are expected to be stable to slightly lower 376.1 lower (original forecast: slightly rising to sharply rising) stable to • EBITDA is expected
Slide 19: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2020 NOV 17 Deutsches Eigenkapitalforum (virtual) 2020 NOV 30 Berenberg European Conference Pennyhill, London 2020 DEC 8/9 MKK – Münchner Kapitalmarkt Konferenz 2021 MAR 19 Annual Report 2020 2021 MAY 6 Quarterly Statement 1st Quarter 2021 2021 MAY 12 Annual General
Slide 20: AlzChem at a glance: sales and EBITDA
M€ M€ M€ 1,630 ~279 ~41 ~34 EMPLOYEES SALES EBITDA OPERATING (PY 1,587) (PY ~288) (PY ~41) CASHFLOW (PY ~26) Other and Holding ALZCHEM 6,8% PRODUCTS ARE SOLD Basics WORLDWIDE 38.3% & Intermediates SALES YTD 2020/09 INNOVATION SINCE 54.9% 1908 Specialty Chemicals All financial indicators relating to
Slide 21: Thank You / Contact
CONTACT THANK YOU VIELEN DANK FÜR Investor Relations T +49 8621 86-2888 IHREYOUR FOR AUFMERKSAMKEIT! ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 22: Agenda
AGENDA Analyst Presentation Q3/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP AG – Q3/2020 FINANCIAL REPORT ANALYST PRESENTATION 22
Slide 23: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP (IN T€) 31.12.2019 30.09.2020 Deviation ALZCHEM GROUP (IN T€) 31.12.2019 30.09.2020 Deviation Intangible assets 1,541 1,311 -230 -14.9% Share capital 101.763 101.763 Tangible assets 165,702 164,475 -1,227 -0.7% RETAINED EARNINGS (+) / LOSS (-) 69.294 76.512
Slide 24: Pension Accounting (IFRS)
PENSION ACCOUNTING (IFRS) AlzChem Group (M€) 5.13% 141.5 134.6 +6.1 +0.8 +0.9 -0.9 -27.2 114.3 PENSION SERVICE NET INTEREST PENSION PENSION PENSION DEFERRED PENSION IN FINANCIAL PROVISION COSTS COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31.12.2019 MENTS 30.09.2020 30.09.2020
Slide 25: Income Statement
INCOME STATEMENT AlzChem Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD YTD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ALZCHEM GROUP (IN T€) Deviation (Q3) Sep. 19 Sep. 20 Dev. YOY 2019 2019 2019 2019 2020 2020 2020 2020 Revenue 92,123 96,120 99,431 88,398 94,740 102,511 81,373 -18,058 -18% 287,674 278,624 -9,050 -10% Increase (+)
Slide 26: Income Statement
INCOME STATEMENT AlzChem Group Q3 Q3 YTD YTD ALZCHEM GROUP (IN T€) Deviation (QoQ) Deviation (YoY) 2019 2020 Sep.2019 Sep.2020 Revenue 99,431 81,373 -18,058 -18.2% 287,674 278,624 -9,050 -3.1% Increase (+) / Decrease (-) in inventories of finished goods and work in progress -11,883 3,295 15,178 -127
Slide 27: Cash Flow
CASH FLOW AlzChem Group Q3 Q3 1-9 1-9 CASHFLOW (IN M€) 2019 2020 2019 2020 Consolidated earnings before taxes 6,292 5,347 22,951 21,554 Depreciation on fixed and intangible assets 4,964 5,669 13,563 16,992 Decrease in pension provisions -227 -266 -770 -901 Loss (+) / Profit (-) from the sale of non-
Slide 28: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group 2018 2019 2020 YTD Q3 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Deviation PY (Q3) PY Actual Deviation PY (YOY) SALES T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ % T€ T€ T€ % Basics & Intermediates 34.155 36.926 35.896 32.989 35.465 37.844 41.693 34.405 36.012 38.2
Slide 29: Executive Team
EXECUTIVE TEAM AlzChem Group AG ANDREAS NIEDERMAIER, CEO WITH ALZCHEM SINCE 1999 AREAS OF RESPONSIBILITY Company Strategy, Finance & Controlling, Investor Relations & Communication, IT, Risk Management, HR, Supply Chain Management, Legal/Patents & Trademarks KLAUS ENGLMAIER, COO DR. GEORG WITH ALZCH
Slide 30: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies SUNDSVALL (SE) TROSTBERG (GER) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE Production facilities in Germany (4) and Sweden (1) and HQ in Trostberg (GER) WALDKRAIBURG (GER) ATLANTA (USA) SHANGHAI (CN) 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 Segment Specialty Chemicals Segment Basics & Intermediates BENEFITS OF “VERBUND” • Full control of product quality and specifications • Lower costs • Higher financial predictability •
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 Dietary supplement with pu
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: Key Share Data
KEY SHARE DATA Share Details as of November 9, 2020 SHAREHOLDER STRUCTURE SHARES OUTSTANDING 10,176,335 LAST CLOSING PRICE EUR 18.80 Free float 26.1% including M&G plc 7.6% LIVIA Corporate MARKET CAPITALIZATION EUR 191.3 m Development SE 37.6% TICKER ACT WKN A2YNT3 for two na GmbH ISIN DE000A2YNT30