Alzchem Group Ag · XETR:ACT
Alzchem — Q4 2017 Earnings Presentation
37 slides from Alzchem's earnings presentation, Mar 26, 2018
Slide 1: 2017 / Q4 AlzChem Group AG
2017/ Q4 AlzChem Group AG Ulli Seibel, CEO Andreas Niedermaier, CFO March 26, 2018
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 2017 / Q4 – Analyst presentation EXECUTIVE SUMMARY 2017 / Q4 BUSINESS AND FINANCIAL DETAILS 2017 / Q4 BACK-UP ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 3 / 23
Slide 4: Financial Highlights 2017
FINANCIAL HIGHLIGHTS 2017 Strategic and operational targets for 2017 achieved IPO successfully implemented STRATEGIC Investment CreAMINO® initiated TARGETS Growth focus on specialty chemicals Creapure® – new online approach Strong sales growth (8.2%) FINANCIAL Attractive operating cash flow TARGETS
Slide 5: CreAMINO
CREAMINO® Product & investement details FEED ADDITIVE CreAMINO® is a feed additive that - after being absorbed in the animals’ TURNS TO CREATINE bodies - is processed into the endogenous substance creatine +3 TO +5 POINTS CreAMINO® leads to an improved feed conversion rate, that allows farm FCR GROW
Slide 6: NITRALZ
NITRALZ® Investement details BASIC CHEMICALS The investment will strengthen the division in the long term ~7.2 m€ INVESTMENT In December 2017 a 7.2 million investment decision for expansion NITRALZ® production plant in Trostberg (GER) was made ADDITIONAL DEMAND Plant expansion in special equipment a
Slide 7: Creapure brand relaunch
Creapure® Brandrelaunch BASIC CONCEPT Focus on end customer information New brand ambassadors concept Added value through customers shop integration WEBSITE www.creapure.com Social Media Events Exhibitions and Sportevents (B2C) ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 7 / 23
Slide 8: Financial Overview
FINANCIAL OVERVIEW Financial targets delivered ALZCHEM GROUP [m€] Q4 / 2016 Q4 / 2017 yoy % 1-12 / 2016 1-12 / 2017 yoy % SALES 76.7 81.2 5.8% 327.2 353.9 8.2% 1 EBITDA 9.0 7.4 -17.7% 38.6 45.7 18.3% 1 EBITDA margin 11.8% 9.1% 11.8% 12.9% 1.1 pp adjusted EBITDA 9.0 8.5 -5.6% 44.9 47.7 6.2% adjusted
Slide 9: Agenda
AGENDA 2017 / Q4 – Analyst presentation EXECUTIVE SUMMARY 2017 / Q4 BUSINESS AND FINANCIAL DETAILS 2017 / Q4 BACK-UP ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 9 / 23
Slide 10: Segment Basics & Intermediates
SEGMENT BASICS & INTERMEDIATES AlzChem’s Basics & Intermediates segment comprises the production of intermediate products which are either used for the production of its Specialty Chemicals products or sold externally, e.g., desulfurization blends for the metallurgy industry (sold under the brand na
Slide 11: Segment Basics & Intermediates
SEGMENT BASICS & INTERMEDIATES Segment analysis – financial overview SALES +3.4% EBITDA SALES EBITDA SALES ANALYSIS Q4/2016 +5% 33.8 35.0 35.5 35.7 37.0 37.8 +5.4% vs. +0% -2% 29.3 30.3 Q4/2017 Volume Price FX 140.9 133.6 -19.7% YTD 2016 +5% +1% -1% vs. 7.0 YTD 2017 Volume Price FX Q1 Q2 Q3 Q4 Q1 Q2
Slide 12: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS AlzChem’s Specialty Chemicals segment comprises the production and distribution of higher-value products, e.g., a nutritional feed additive for the feed industry (CreAMINO ® 1), a dietary supplement for the nutrition market (Creapure ®), highly purified guanidine hydrochl
Slide 13: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS Segment analysis – financial overview SALES +7.0% SALES EBITDA EBITDA SALES ANALYSIS Q4/2016 +8% 42.6 49.7 48.7 47.9 45.1 44.1 +9.7% vs. +0% -1% 41.2 35.7 Q4/2017 Volume Price FX 185.7 169.2 +8.8% YTD 2016 +12% -2% -0% vs. 42.7 YTD 2017 Volume Price FX Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 14: Segment Other & Holding
SEGMENT OTHER & HOLDING AlzChem’s Other & Holding segment comprises AlzChem’s holding and other activities which are not accounted for in the Specialty Chemicals or Basics & Intermediates segment. The majority of net sales in this segment are attributable to services offered to external customers ma
Slide 15: Segment Other & Holding
SEGMENT OTHER & HOLDING Segment analysis – financial overview SALES +9.0% EBITDA SALES EBITDA SALES ANALYSIS Q4/2016 +8% 6.5 6.2 6.8 6.8 7.0 6.8 +12.0% vs. +1% ±0% 5.9 5.8 Q4/2017 Volume Price FX 27.4 24.4 YTD 2016 +11% +1% ±0% +64.3% vs. YTD 2017 Volume Price FX Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 20
Slide 16: Balance Sheet
BALANCE SHEET AlzChem Group COMMENTS 280.2 280.2 263.9 263.9 • Increased fixed assets, as a significant 57.9 part of non-current assets, by € 10.3 53.5 Equity (21%) million and supports strategic growth (20%) 142.7 non-current 134.3 (51%) assets (51%) • Inventories, e. g. of CreAMINO®, were increase
Slide 17: Cash Flow
CASH FLOW Growth CAPEX is the basis for further growth COMMENTS • Investing Cash Flow exceeds previous year level mainly to due cash-out for CreAMINO® project in Q4/2017 • YTD: usage of credit lines due to high pay out ratio of dividend, growth CAPEX and strategic inventory increase ALZCHEM GROUP –
Slide 18: Pension Accounting
PENSION ACCOUNTING Cash-out for pension payments only 0.6 m€ +2% 104.9 107.2 1.2 1.8 -0.6 -0.1 -19.5 87.7 IN FINANCIAL PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION STATEMENT PROVISION COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY 31 Dec, 2016 EBITDA MENTS 31
Slide 19: Outlook 2018
OUTLOOK 2018 Sales and earnings growth continue SALES EBITDA COMMENTS 378.7 • sales growth will be driven primarily by +7% specialty chemicals, mainly through 364.5 CreAMINO®, Creapure® and Custom 353.9 +3% Synthesis 54.0 • Further reduced dependence on Basics & +18% Intermediates 49.0 +7% • EBITDA
Slide 20: Outlook 2018 Underlying assumptions
OUTLOOK 2018 Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed - no economic turmoil (USA, China) • Stability in registration and energy legislation Factors to watch • Headwind from weaker US-Dollar (2018 Forecast: 1.20 € /
Slide 21: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2018 MAR 26 ANNUAL REPORT 2017 2018 MAY 15 Q1 FIGURES 2018 (Jan. – Mar.) 2018 MAY 23 1st GENERAL MEETING 2018 FINANCIALS REPORT 2018 SEPT 24 SHORT FINANCIAL YEAR 2018 (Jan. - June) 2018 NOV 12 Q1 FIGURES 2018 (July - Sept.) 2018 NOV 2nd GENERAL MEETING 2018 2018 DEC
Slide 22: Worldwide Q4 2017
m€ m€ m€ 1,491 EMPLOYEES ~354SALES ~46 EBITDA ~31 OPERATING average CASHFLOW ALZCHEM PRODUCTS SPECIALTY ARE SOLD CHEMICALS BASICS & 52% INTERMEDIATES WORLDWIDE 40% SALES Q4 2017 YTD INNOVATION SINCE 1908 OTHERS & HOLDING 8% All financial indicators as of 31.12.2017
Slide 23: 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 24: Agenda
AGENDA 2017 / Q4 – Analyst presentation EXECUTIVE SUMMARY 2017 / Q4 BUSINESS AND FINANCIAL DETAILS 2017 / Q4 BACK-UP ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 24 / 23
Slide 25: Q4 Profit & Loss
Q4 PROFIT & LOSS AlzChem Group ALZCHEM GROUP [m€] Q4 / 2016 Q4 / 2017 Delta COMMENTS Revenue 76.7 81.2 4.5 5.8% Changes in inventories of finished goods and work in progress 7.3 2.7 -4.6 -62.8% • Solid volume growth in all segments Other income 2.6 4.0 1.4 52.8% Raw materials and consumables used -3
Slide 26: 1-12 Profit & Loss
1-12 PROFIT & LOSS AlzChem Group ALZCHEM GROUP [m€] 1-12 / 2016 1-12 / 2017 Delta COMMENTS Revenue 327.2 353.9 26.7 8.2% Changes in inventories of finished goods and work in progress 5.1 1.8 -3.3 -65.1% • Due to strong sales in the Specialty Other income 11.3 11.6 0.3 2.6% Chemicals segment, yoy sal
Slide 27: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 27 / 23
Slide 28: Cash Flow
CASH FLOW AlzChem Group CASHFLOW (IN M€) Q4 / 2016 Q4 / 2017 yoy % 1-12 / 2016 1-12 / 2017 yoy % OPERATING CASHFLOW 4.8 6.1 27.1% 33.1 30.7 -7.3% INVESTING CASHFLOW -6.3 -12.7 101.6% -18.5 -24.8 34.1% FREE CASHFLOW -1.5 -6.6 340.0% 14.6 5.9 -59.6% RAISING / REPAYMENT FROM LOANS -1.4 -1.6 14.3% -4.7
Slide 29: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group Q4 2016 Q4 2017 SALES [m€] Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 yoy % YTD YTD SPECIALTY CHEMICALS 42.6 49.7 35.7 41.2 48.7 47.8 45.1 44.1 169.2 185.7 9.7% BASICS & INTERMEDIATES 33.8 35.0 35.5 29.3 35.7 37.0 37.8 30.3 133.6 140.9 5
Slide 30: Executive Team
Executive Team Experienced management to deliver on the next phase KLAUS ENGLMAIER ULLI SEIBEL ANDREAS NIEDERMAIER CURRENT POSITION COO (since 2016) CEO (since 2009) CFO (since 2010) AGE 56 42 48 WITH ALZCHEM SINCE1 1988 2009 1999 DEGREE Mechanical Engineering Industrial Engineering Industrial Engin
Slide 31: 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 – Q4 – ANALYST PRESENTATION WALDKRAIBURG (GER) 31 / 23
Slide 32: Fully integrated business model (verbund system)
Fully integrated business model (“verbund” system) Flexibility to adapt production to meet changing end market needs THE “VERBUND”-SYSTEM • Fully integrated production circle • Output from one production step serves as base input for the next production step • Transport cost advantage as compared to
Slide 33: Overview of Specialty Chemicals products
INTRODUCTION TO GROUP SEGMENTS Overview of Specialty Chemicals products KEY PRODUCTS DESCRIPTION END MARKETS (1) A nutritional additive for broilers and pigs Feed additive Premium brand for creatine monohydrate used as supplements in sports nutrition Dietary supplements Pet feed additive Alpha-lipoi
Slide 34: Overview of B&I products and O&H services
INTRODUCTION TO GROUP SEGMENTS (CONT’D) Overview of B&I products and O&H services KEY PRODUCTS DESCRIPTION END MARKETS Calcium carbide-based process chemical for hot metal desulfurization Steel industry INTERMEDIATES Airbags Gas generant for air bags, key production intermediate Agrochemicals BASICS
Slide 35: Stock: Share details
STOCK Share details OWNERSHIP STRUCTURE % ISIN / WKN DE000A0AHT46 / A0AHT4 LIVIA Corporate Development SE 47.70 TICKER SYMBOL SFP1 HDI Vier CE GmbH 26.38 TYPE AND NUMBER OF 101,763,355 value (bearer shares) SHARES four two na GmbH 19.79 TRADING SEGMENT Regulated Market (Prime Standard) Jan Ulli Seib
Slide 36: Q4 Financial Highlights
Q4 FINANCIAL HIGHLIGHTS Top line growth continues in Q4 • Strong growth in sales, driven by Specialty Chemicals • Moderate sales growth within Basics & Intermediates • Management of raw materials volatility is becoming more and more important ALZCHEM GROUP – Q4 – ANALYST PRESENTATION 36 / 23
Slide 37: Sales by Region
SALES BY REGION ASIA/PACIFIC intensive marketing strategy pays back GERMANY EMEA ASIA / PACIFIC NORTH AMERICA SOUTH AMERICA Q4 / Q4 / Q4 / Q4 / Q4 / Q4 / Q4 / Q4 / Q4 / Q4 / yoy % yoy % yoy % yoy % yoy % 2016 2017 2016 2017 2016 2017 2016 2017 2016 2017 29.7 33.8 13.8% 27.0 27.7 2.6% 8.9 9.1 2.2% 10