Gerresheimer Ag · XETR:GXI
Gerresheimer — Debt Investor Presentation (August 2017)
28 slides from Gerresheimer's debt investor presentation, Aug 23, 2017
Slide 1: Schuldscheindarlehen (Promissory Loan) Investor Presentation
Schuldscheindarlehen (Promissory Loan) Gerresheimer AG Investor Presentation August 23, 2017
Slide 2: Disclaimer
Disclaimer 1. This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development
Slide 3: Agenda
Agenda 1. At a glance 2. Q2 2017 earnings review 3. Appendix Financials 3
Slide 4: A leading international manufacturer for the global pharma and healthcare industry
A leading international manufacturer for the global pharma and healthcare industry Pharmaceutical packaging solutions made out of glass and plastics Primary packaging products and medical devices for storage, dosage and safe administration of drugs as well as packaging for the cosmetics industry Aug
Slide 5: Solid heritage, stringent concentration on core businesses
Solid heritage, stringent concentration on core businesses Foundation by F. Heye in Saturation of the F&B markets Leading global partner to the pharma Duesseldorf-Gerresheim and healthcare industry End of 19th Mid of 20th End of 20th 1864 1999 - Today century century century Gerresheimer is the worl
Slide 6: Strong business foundations, efficient and lean organisation with a strong track record
Strong business foundations, efficient and lean organisation with a strong track record Solid financial profile Leading market positions in Well invested assets & Homogenous business attractive niche markets factories, solid customer portfolio with clear basis strategic focus Delivering to Revenues
Slide 7: Management changes effective as of August 31, 2017
Management changes effective as of August 31, 2017 Uwe Röhrhoff (CEO) until August 31 Dr. Christian Fischer (CEO) from September 1 onwards Primary Packaging Glass Division Strategy & Planning Worked at BASF since 1993, lastly as President, Performance Communication & Marketing Chemicals and before t
Slide 8: Leading market positions in attractive niche markets
Leading market positions in attractive niche markets PRIMARY DIVISION PLASTICS & DEVICES PACKAGING GLASS Ampoules, Plastic Inhalation Diabetes Syringe MG Pharma PRODUCT Packaging1 (DPI)2 Diagnostics3 Pens Systems (Type I) Vials, Cartridges EUROPE #1 #1 #2 #2 #2 #2 #3 NORTH AMERICA #1 #1 #2 #1 #1 EME
Slide 9: We provide solutions across all key product categories
We provide solutions across all key product categories DIVISION PLASTICS & DEVICES PRIMARY PACKAGING GLASS OTC Liquids Plastic Inhalation Diabetes Syringe MG Pharma and Syrups TG PRODUCT Packaging (DPI)2 Diagnostics3 Pens Systems (Type I) (Type II & Injectables III) Gerresheimer Scho
Slide 10: 15.5bn products produced every year – nearly 500 per second
Scale underpins leading market position and operating leverage 15.5bn products produced every year – nearly 500 per second SYRINGES PLASTIC BOTTLES PHARMA GLASS COSMETICS (INCL. CENTOR) BOTTLES ~ 400m pieces ~ 5.5bn pcs ~ 2.5bn pcs ~ 1bn pcs INJECTION VIALS AMPOULES INHALERS CARTRIDGES ~ 3bn pcs ~ 2
Slide 11: Ability to deliver solid earnings growth due to our robust business model
Ability to deliver solid earnings growth due to our robust business model despite fluctuations in revenues growth Revenues growth ex. LSR1 Adj. EBITDA ex. LSR1 Adj. EPS1,2 ex. LSR % yoy (EUR m) (EUR ) CAGR 2011-2016 6.4% CAGR 2011-2016 8.3% CAGR 2011-2016 11.2% 11.5% 308 4.07 7.2% 207 6.2% 2.39 5.4%
Slide 12: Long term growth drivers underpinned by megatrends in pharma and healthcare
Long term growth drivers such as globalization and population increase underpinned by megatrends in pharma and healthcare HEALTHCARE SYSTEMS PHAMERGING GENERICS SELF MEDICATION MARKETS Seizing opportunity to participate in any market trends RISE OF CHRONIC NEW MEDICINES INCREASING REGULATORY DISEASE
Slide 13: Targeted market approach
Targeted market approach Large pharma companies Generics producers Small and medium Specialty and Biotech Continuing to Segmenting companies Customer synchronise our Landscape strategy to meet Understanding specific clients QUALITY Zero defects requirements the needs of our Productivity and supply c
Slide 14: Agenda
Agenda 1. At a glance 2. Q2 2017 earnings review 3. Appendix Financials 14
Slide 15: Soft performance in Q2 2017, as previously communicated
Soft performance in Q2 2017, as previously communicated Q2 revenues down 2.2% year-on-year at EUR 339.5m Revenues decrease in line with Q1 business trends, albeit at a softer pace Down 3.7% organic Adj. EBITDA margin of 22.3% in Q2 2017 against 23.2% in Q2 2016 Margin in Plastics & Devices maintaine
Slide 16: Demand fluctuations & shifts into H2 as main drivers behind revenues decrease in Q2 2017
Demand fluctuations & shifts into H2 as main drivers behind revenues decrease in Q2 2017 Evolution of Revenues and Adj. EBITDA margin in Q2 17 vs Q2 16 % EBITDA Margin 23.2% 22.3% 27.0% 27.0% 22.7% 20.4% 347.3 339.5 193.2 185.8 154.3 153.7 Q2 16 Q2 17 Q2 16 Q2 17 Q2 16 Q2 17 Group P&D PPG P&D Q2 201
Slide 17: Improved visibility for remainder of the year
Improved visibility for remainder of the year IDENTIFIED DRIVERS H2 2017 P&D IDENTIFIED DRIVERS H2 2017 PPG Revenues shifts in Devices from H1 into H2 Normalizing of US demand to drive sales growth in H2 Strong tooling pipeline to drive higher sales Europe and cosmetics with further solid Primary pa
Slide 18: The short and longer term view: Driving earnings and cash growth
The short and longer term view: Driving earnings and cash growth, while top line targets remain ambitious 2017 GUIDANCE REPORTED FY 2016 EXPECTED FY 2017 PRECISION POST Q2 ~ EUR 1.43bn (FXN1 - plus/minus EUR 25m) Revenues EUR 1,375.5m ~ EUR 1.4bn (FXN1) Starting at lower end of the range Adj. EBIT
Slide 19: Addressing specialty pharma market opportunity
Addressing specialty pharma market opportunity Glass product portfolio systematically upgraded Elite & Valor RTU Vials & cartridges New value proposition for Biotech & new organisation Growing niche market Gx solutions set up in H1 2017 Emergence of new actors requiring Spanning across all divisions
Slide 20: Clear focus on execution for the mid and long term
Clear focus on execution for the mid and long term Ongoing strict monitoring of order book, product Strong and stable business model with proven track ramp up and contract execution record Dedicated management of operations to balance Well established company, founded in 1864 key drivers of margin p
Slide 21: Agenda
Agenda 1. At a glance 2. Q2 2017 earnings review 3. Appendix Financials 21
Slide 22: Lower adjusted EBITA as main adjusted EPS driver
Lower adjusted EBITA(1) as main adjusted EPS(1) driver EUR M Q2 2017 Q2 20161 CHANGE in EUR Adjusted EBITDA 75.8 80.7 -4.9 Depreciation -22.8 -21.4 -1.4 Adjusted EBITA 53.0 59.3 -6.3 Total one-off effects -0.5 -0.1 -0.4 Amortization of fair value adjustments -8.6 -8.9 +0.3 Result from operations (EB
Slide 23: Increase in net debt reflects dividend and interest payments, leverage at 2.7x
Increase in net debt reflects dividend and interest payments, leverage at 2.7x EUR M MAY 31, 2017 NOV 30, 2016 CHANGE IN % Total assets 2,289.3 2,374.3 -3.6% Equity 752.0 763.3 -1.5% Equity ratio 32.9% 32.1% +80bps Net working capital 230.4 200.3 + 15.0% NWC in % of LTM revenues2 17.1% 14.6% +250bps
Slide 24: P&D margins maintained at a high level, PPG margins impacted by lower production output
P&D margins maintained at a high level, PPG margins impacted by lower production output during the quarter Revenues by division Organic EUR M Q2 2017 Q2 2016 GROWTH IN % Growth in % Total Group 339.5 347.3 -2.2 -3.7 - Of which P&D 185.8 193.2 -3.8 -5.9 - Of which PPG 153.7 154.3 -0.4 -1.1 Adjusted E
Slide 25: Development of net working capital
Development of net working capital MAY 31, 2017 NOV 30, 2016 MAY 31, 2016 EUR M EUR M EUR M 3 Inventories 172.5 155.4 190.4 thereof prepayments made 2.5 3.1 3.7 Trade receivables 222.9 232.1 229.6 Trade payables 126.7 157.0 148.6 Payments received on account 38.3 30.2 40.7 of orders Net working capi
Slide 26: Development of inventories
Development of inventories MAY 31, 2017 NOV 30, 2016 MAY 31, 2016 EUR M EUR M EUR M(1) Raw materials, consumables and supplies 51.0 49.9 53.4 Work in progress 20.1 18.4 24.6 Finished goods and merchandise 98.9 84.0 108.7 Prepayments made on inventories 2.5 3.1 3.7 Inventories 172.5 155.4 190.4 1. In
Slide 27: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted EPS after non-controlling 1.83 1.34 1.95 2.44 2.621 3.08 2.89 3.41 4.072 interests Cash flow from operating activities per 5.26 3.74 5.09 4.13 5.53 4.67 5.04 6.49 5.52 share Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0
Slide 28: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions Abbreviations and Definitions Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
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