Ringmetall Se · XETR:HP3A
Ringmetall — Investor Presentation (February 2020)
24 slides from Ringmetall's investor presentation, February 2020
Slide 1: Ringmetall - An All-Round Success Story
RINGMETALL - AN ALL-ROUND SUCCESS STORY Company Presentation February 2020
Slide 2: World Market Leader for Secure Packaging Solutions
WORLD MARKET LEADER FOR SECURE PACKAGING SOLUTIONS Key Takeaways of Equity Story Revenue Split 2019e ○ Producer of industrial packaging and handling solutions ○ Worldwide market leadership of core product in a highly regulated market ○ Strong footprint in specialty goods industries worldwide (esp. C
Slide 3: Stable Management Board Meets Experienced Supervisory Board
STABLE MANAGEMENT BOARD MEETS EXPERIENCED SUPERVISORY BOARD Christoph Petri Klaus F. Jaenecke Spokesperson of the Chairman of the Management Board, Supervisory Board, joined in 2011 joined in 2018 Konstantin Winterstein Markus Wenner Member of the Deputy Chairman of the Management Board, Supervisory
Slide 4: Strong Product Portfolio with Dominant Footprint in Packaging Solutions
STRONG PRODUCT PORTFOLIO WITH DOMINANT FOOTPRINT IN PACKAGING SOLUTIONS INDUSTRIAL HANDLING DRUM CLOSURES ○ restraint systems and accessory (part of INDUSTRIAL PACKAGING) for industrial trucks / forklifts ○ >70% global market share with ○ accessory equipment for agricultural / drum clamping rings fo
Slide 5: Worldwide Production and Global Regional Split (Basis: 2019e)
WORLDWIDE PRODUCTION AND GLOBAL REGIONAL SPLIT (BASIS: 2019e) GER 32 % Europe (Rest) North 41 % America 25 % Asia / Pacific 1% LatAm/ Africa 1% Production Site Sales Region Company Presentation February 2020 5
Slide 6: System Provider for the No. 1 Packaging Unit: The Industrial Drum
SYSTEM PROVIDER FOR THE NO. 1 PACKAGING UNIT: THE INDUSTRIAL DRUM Lid & ○ Single components combine to one Gasket UN-certified drum unit ○ Components cannot be exchanged Clamping without recertification of the drum unit Ring (time & cost intensive) ○ Product safety is by far the most important featu
Slide 7: Industrial Drum Specifications Suitable for All Types of Liquids & Solids
INDUSTRIAL DRUM SPECIFICATIONS SUITABLE FOR ALL TYPES OF LIQUIDS & SOLIDS IBC STEEL DRUM PLASTIC FIBER PAIL DRUM DRUM OPEN TOP / CLOSED TOP FACTORY NEW / RECONDITIONED Ringmetall produces ! 2.500+ different types of clamping rings and 5.000+ different types of inliners Lids and gaskets Company Prese
Slide 8: Strong Market Entrance Barriers Strengthen Our Market Position
STRONG MARKET ENTRANCE BARRIERS STRENGTHEN OUR MARKET POSITION The specificities of the drum industry make it difficult for new competitors to challenge Ringmetall's market position: MACHINERY LOGISTIC COST LEAD TIMES Machinery for ring production is Stacking of rings is highly inefficient, Lead tim
Slide 9: Sustainable Organic Growth - Mega Trends in the Packaging Industry
SUSTAINABLE ORGANIC GROWTH - MEGA TRENDS IN THE PACKAGING INDUSTRY Growth of worldwide ...followed by trend towards population is No.1 industry increasing urbanization growth trigger... Leading to: Higher demand for food / Higher demand for Higher demand for nutrition supplements! fertilizers / chem
Slide 10: Buy & Build Approach Combines with Focus on Production Excellence
BUY & BUILD APPROACH COMBINES WITH FOCUS ON PRODUCTION EXCELLENCE IMPROVE ACQUIRE CONSOLIDATE PERFORM ○ build and optimize ○ generate stable cash ○ pursue professional ○ focus on constantly existing business flows to guarantee M&A approach expanding group ○ improve structures financial flexibility ○
Slide 11: Acquisition of Sorini Rings Manufacturing Inc., USA
ACQUISITION OF SORINI RINGS MANUFACTURING INC., USA ○ Asset Deal ○ Acquisition as of 01.01.2020 ○ Transaction cost of around EUR 50 k fully effective in Q4/2019 ○ Integration into Self Industries / Berger USA ○ Located in Chicago, IL (USA) ○ 37 employees ○ Access to new clients; especially reconditi
Slide 12: 5 Year Comparison Driven by Organic and Inorganic Growth
5 YEAR COMPARISON DRIVEN BY ORGANIC AND INORGANIC GROWTH IFRS, in EUR `000 2018 2017 2016 2015* 2014* Revenues 110,567 102,348 94,294 66,678 65,828 Gross profit 46,125 45,356 41,678 31,209 31,841 EBITDA 10,431 12,041 11,194 5,438 6,965 EBIT 8,280 10,035 9,267 1,372 2,946 Net Income 5,156 7,135 5,701
Slide 13: Key Performance Indicators: Ringmetall in Numbers
KEY PERFORMANCE INDICATORS RINGMETALL IN NUMBERS Target EBITDA Margin Max. Leverage Long-term Average CAPEX 12.5 - 15 % 3 x EBITDA 2.5 - 3 mEUR Target Acquisition Multiple Target Acquisition Size Worldwide Market Share (e) Revenues Rings Inliners 6 - 8 x EBITDA 5 - 25 mEUR > 70 % > 20 % Average Tax
Slide 14: Share Price Development Ringmetall vs. SDAX
SHARE PRICE DEVELOPMENT RINGMETALL vs. SDAX Ticker / ISIN: HP3 / DE0006001902 Shares Outstanding: 29,069,040 Segment: General Standard Market Capitalization: ~ EUR 80 m Daily Turnover: ~ 5.000 shares (12M av.) Free Float: ~ 44 % Company Presentation February 2020 14
Slide 15: Shareholder Structure: High Management Commitment
SHAREHOLDER STRUCTURE HIGH MANAGEMENT COMMITMENT Latest notifications: 08-10/2019 Management Pool + 1.9 % 20.09.2019 Otus Capital > 5.0 % 09.08.2019 Amiral Gestion < 3.0 % 22.05. 2019 Lazard Frères Gestion > 3.0 % Company Presentation February 2020 15
Slide 16: Peer Group Valuation EV / EBITDA (2019e)
PEER GROUP VALUATION (11/2019) EV / EBITDA (2019e) MARKET CAP (mEUR) Company Presentation February 2020 16
Slide 17: Ringmetall 2021 Midterm Growth Potential
RINGMETALL 2021 MIDTERM GROWTH POTENTIAL Reality check 2019: 120 mEUR mid-range revenue 2019 + 5 mEUR organic growth until 2021 200 mEUR 75 mEUR inorganic growth component until 2021 Revenue 2021 inorganic growth is financed via cash and agreed credit facilities at interest levels below cost of equi
Slide 18: Guidance 2019
GUIDANCE 2019 WHEN THE GOING GETS TOUGH... Guidance 2019 International trade conflicts, Brexit fears and turmoil in the automotive industry have put pressure on cyclical key clients of the drum industry and the logistics sector. Following profit warnings from key industries, Ringmetall revised its g
Slide 19: Financials 9M 2019 Key Indicators of Operating Performance
FINANCIALS 9M 2019 KEY INDICATORS OF OPERATING PERFORMANCE IFRS, in EUR `000 9M 2019 9M 2018 ∆ [abs.] ∆ [%] Revenues 91,986 85,820 6,166 7.2 Gross profit 40,355 36,238 4,117 11.4 Gross margin 43.9% 42.2% EBITDA 8,149 8,292 -143 -1.7 EBITDA margin 8.9% 9.7% EBIT 4,639 6,509 -1,870 -28.7 EBIT margin 5
Slide 20: Financials 2018 Profit & Loss Statement
FINANCIALS 2018 PROFIT & LOSS STATEMENT in EUR `000 2018 2017 ∆ [abs.] ∆ [%] Revenues 110,567 102,348 8,219 8.0% Cost of materials -64,937 -57,032 -7,905 13.9% Cost of personnel -21,703 -20,101 -1,602 8.0% Other operating expenses -15,130 -14,060 -1,070 7.6% Other taxes -373 -353 -20 5.7% EBITDA 10,
Slide 21: Financials 2018 Balance Sheets - Assets
FINANCIALS 2018 BALANCE SHEETS - ASSETS IFRS, in EUR ´000 31.12.18 31.12.17 ∆ [abs.] ∆ [%] Non-current Assets 49,289 35,810 13,479 37.6% thereof Intangible assets 582 321 261 81.3% thereof Goodwill 22,599 22,211 388 1.7% thereof Property, plant and equipment 12,515 12,189 326 2.7% thereof Other non-
Slide 22: Financials 2018 Balance Sheets - Liabilities
FINANCIALS 2018 BALANCE SHEETS - LIABILITIES IFRS, in EUR `000 31.12.18 31.12.17 ∆ [abs.] ∆ [%] Equity 48,537 39,102 9,435 24.1% thereof Share capital 29,069 27,685 1,384 5.0% thereof Capital reserve 16,664 12,532 4,132 33.0% thereof Currency translation differences outside P&L -1,361 -2,131 770 -36
Slide 23: Financials 2018 Cash Flow
FINANCIALS 2018 CASH FLOW IFRS, in EUR `000 2018 2017 ∆ [abs.] ∆ [%] Cash & cash equivalents as of 1 Jan 14,844 5,265 9,579 181.9% Cash flow from operations 8,249 10,984 -2,735 24.9% Cash flow from investments -15,191 -5,108 -10,083 197.4% Cash flow from financing -2,050 3,844 -5,894 153.3% Cash & c
Slide 24: Contact
CONTACT Ingo Middelmenne Investor Relations Ringmetall AG Innere Wiener Str. 9 81667 Munich Mobile +49 174 9091190 Fax +49 89 4522098 22 Email middelmenne@ringmetall.de Web www.ringmetall.de DISCLAIMER This presentation contains forward-looking statements based on estimates of the management of Ring