Siegfried Holding Ag · SIX:SFZN
Siegfried — H1 2022 Earnings Presentation
20 slides from Siegfried's earnings presentation, Aug 18, 2022
Slide 1: Siegfried significantly increases sales and profits despite challenging environment
With strong momentum through turbulent times: Siegfried significantly increases sales and profits despite challenging environment Media and analyst conference on half-year 2022
Slide 2: Safe harbor statement
Safe harbor statement This document is solely for use in connection with the Neither this document nor any copy of it may be presentation held by Siegfried Holding AG. It is furnished taken or transmitted into the United States or distributed, to you for your information and you may not reproduce it
Slide 3: All businesses growing
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 3
Slide 4: With strong momentum through turbulent times
With strong momentum through turbulent times In the first half of 2022, Siegfried significantly increases sales and profits despite challenging environment › Strong profitable growth: Net sales up to CHF 586.7m (+25.7% and +29.9% in LC) › Core EBITDA of CHF 130.2m (+61.8%) at an expanded margin of 2
Slide 5: With strong momentum through turbulent times
With strong momentum through turbulent times In the first half of 2022, we continue the implementation of our strategy, geared towards long-term profitable growth › Proactive Management: Mitigation of negative › Investments across the network to support effects from macroeconomic challenges through
Slide 6: All businesses growing
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 6
Slide 7: Significant growth delivered
Significant growth delivered Net sales split H1 2022 CHF million H1 2022 H1 2021 Change Drug Substances 339.5 274.5 +23.7% Drug Products 247.2 192.3 +28.5% Total 586.7 466.9 +25.7% (+29.9% in LC) › Net sales grew by +29.9% in Local Currencies (LC) › Both businesses, DS and DP, significantly contribu
Slide 8: Reconciliation from Swiss GAAP FER to core results
Reconciliation from Swiss GAAP FER to core results CHFm Comments 150 128.0 130.2 Adjustments to Core EBITDA 2.2 Current net interest foreign pension plan (CHF 0.6m) 100 91.4 Restructuring costs (CHF 1.6m) -38.8 0.3 65.2 Adjustments to Core Net profit -26.5 50 Current net interest on foreign pension
Slide 9: Expanding profit margins on all levels
Expanding profit margins on all levels CHFm CHFm 600 586.7 200 466.9 156.4 400 130.2 100 92.3 91.4 80.5 65.2 200 40.4 32.6 19.8% 26.7% 17.3% 22.2% 8.6% 15.6% 7.0% 11.1% 0 0 Net sales Core Gross profit Core EBITDA Core EBIT Core Net profit H1 2021 H1 2022 Margin in % 9
Slide 10: Profitable growth delivered
Profitable growth delivered CHF million H1 2022 H1 2021 Comments Core results Net sales 586.7 466.9 Core Cost of goods sold -430.4 -374.6 › Expansion of Core Gross profit and Core Gross profit margin Core Gross profit 156.4 92.3 Core Marketing and sales costs -9.5 -7.5 › SG&A as a total stable relat
Slide 11: Improvement in operating cash flow before investments in NWC
Improvement in operating cash flow before investments in NWC CHF million H1 2022 H1 2021 Comments Operating cash flow before changes in NWC 128.1 85.7 Change in NWC -51.9 11.2 › Significant increase of Operating cash flow before Operating cash flow 76.3 96.9 changes in Net Working Capital Purchase o
Slide 12: Capital allocation framework: A strong balance sheet provides financial flexibility
Capital allocation framework: A strong balance sheet provides the financial flexibility required to execute our EVOLVE strategy Strong top Invest in organic growth – in line with strategy line growth › Expansion CapEx in capacity and technologies Support › Investments in capabilities and our people
Slide 13: All businesses growing
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 13
Slide 14: Mission accomplished: Successful carve-out and integration of acquired Drug Products sites in Spain
Mission accomplished: Successful carve-out and integration of acquired Drug Products sites in Spain On time In full On budget › Separation and PMI executed as planned › Both sites now fully integrated into › Integration cost within initial budget, despite before Closing our network very complex IT c
Slide 15: Staying focused in order to stay ahead of the wave
Staying focused in order to stay ahead of the wave Covid-19 › Continued focus on the protection of our employees › Uninterrupted operations despite high absenteeism War in the Ukraine › No direct exposure in terms of sales and supply Supply chain disruption › Offer of internal backup options within
Slide 16: We will continue to strengthen our core by continued organic investments and use M&A
We will continue to strengthen our core by continued organic investments and use M&A to enter into adjacencies and beyond Grow existing core Add adjacencies Enter new areas › Enhance value proposition to our › Diversification into new CDMO › Long-term expansion into high growth customers and outgrow
Slide 17: Expanding our capabilities and capacities to support long-term profitable growth
Expanding our capabilities and capacities to support long-term profitable growth Organic investments Portfolio management Mergers & Acquisitions › New large-scale production plant › Allocate high value capacity › Acquire idle capacity with in Minden to margin accretive products attractive business w
Slide 18: Siegfried's ambition: Consistently deliver profitable growth
Siegfried’s ambition: Consistently deliver profitable growth by investing in the global network and executing value adding M&A › Growth of underlying business at least in line with CDMO market › Active portfolio management › Operational and pricing excellence › Investments in global network – adding
Slide 19: All businesses growing
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Strong cash Building Significant Sustainability generation the strongest financing – walking team capacity the talk 19
Slide 20: Full-year Reporting / Annual General Meeting
Full-year Reporting Annual General Meeting 22 February 2023 20 April 2023