Cph Group Ag Class A · SIX:CPHN
Cph Group Ag Class A — CPH Chemie + Papier Holding — FY2019 Earnings Presentation
33 slides from Cph Group Ag Class A's earnings presentation, Feb 25, 2020
Slide 1: Annual Results Investors Conference
CPH Chemie + Papier Holding AG Annual Results Investors Conference 25 February 2020 CPH Presentation, Annual Results Investors Conference of 25 February 2020 1
Slide 2: Disclaimer
Disclaimer Investing in the shares of CPH Chemie + Papier Holding AG involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of CPH Chemie + Papier Holding AG . This document contains forward-looking statements w
Slide 3: Agenda
Agenda 1 Introduction Peter Schaub 2 Business developments Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht CPH Presentation, Annual Results Investors Conference of 25 February 2020 3
Slide 4: 2019 in brief
The CPH Group 2019 in brief Another very good set of annual results New profitability highs for Paper and Packaging Economic slowdown and trade dispute dampened second-half sales, especially at Chemistry Group EBIT margin at new record high thanks to cost efficiencies and product mix Furth
Slide 5: Agenda
Agenda 1 Introduction Peter Schaub 2 Business developments Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht CPH Presentation, Annual Results Investors Conference of 25 February 2020 5
Slide 6: Key figures
The CPH Group Key figures in CHF million 2018 2019 ± in CHF ± in % Net sales 533.5 524.7 -8.9 -1.7 EBITDA 83.1 88.0 +4.9 +5.9 in % of net sales 15.6 16.8 EBIT 51.6 56.6 +5.0 +9.6 in % of net sales 9.7 10.8 Net result (including minorities) 42.3 48.5 +6.2 +14.6 in % of net sales 7.9 9.2 Cash flow 69.
Slide 7: Business divisions
The CPH Group Business divisions Divisions Key figures Chemistry Paper Packaging for 2019 Net sales CHF 78.2 million CHF 293.2 million CHF 153.2 million EBITDA CHF 9.5 million CHF 54.5 million CHF 23.7 million Production sites CH / USA / CN / BiH CH CH / DE / USA / BRA / CN Employees 287 376 416 Net
Slide 8: Sales markets and production sites
The CPH Group Sales markets and production sites 14% Switzerland 15% Chemistry 2019 net sales 2019 net sales 62% Rest of Europe 56% Paper by region by division 13% The Americas 29% Packaging 10% Asia 1% Rest of the world CPH Presentation, Annual Results Investors Conference of 25 February 2020 8
Slide 9: "Strategy 2024" approved
The CPH Group “Strategy 2024” approved Higher share of net sales Less exposure to the Swiss Objectives Net sales broadly balanced from outside Europe franc in currency terms among the three divisions Expand Chemistry Expand in markets Expand production capacities Actions and Packaging in growt
Slide 10: Results of strategy in 2019
The CPH Group Results of strategy in 2019 CPH Group Chemistry Paper Packaging 600 90 360 180 500 75 300 150 400 60 240 120 Net 300 45 180 90 sales 200 30 120 60 100 15 60 30 0 0 0 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 in CHF million 120
Slide 11: Focused on sustainability
The CPH Group Focused on sustainability Products Chemistry Paper Packaging Raw materials Aluminium silicate naturally extracted Waste paper and wood are of organic Polyvinylchloride is manufactured from or synthetically manufactured origin oil and salt Recyclable and Cycle Regenerable biodegradable
Slide 12: Divisional results
The CPH Group Divisional results CPH Group Chemistry Paper Packaging in CHF million 2018 2019 2018 2019 ± in % 2018 2019 ± in % 2018 2019 ± in % Net sales 533.5 524.7 79.4 78.2 -1.5 301.1 293.2 -2.6 153.0 153.2 +0.1 EBITDA 83.1 88.0 10.7 9.5 -11.4 50.9 54.5 +7.2 21.6 23.7 +10.1 EBITDA margin in % 15
Slide 13: The Chemistry Division
The Chemistry Division CPH Presentation, Annual Results Investors Conference of 25 February 2020 13
Slide 14: Chemistry Business developments
Chemistry Business developments Net sales EBITDA 90 15 24% 75 12,5 20% 60 10 16% 45 7,5 12% 30 5 8% 15 2,5 4% 0 0 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 in CHF million in CHF million in % of net sales Market environment Business trends Strong first half followed by global economic
Slide 15: The Paper Division
The Paper Division CPH Presentation, Annual Results Investors Conference of 25 February 2020 15
Slide 16: Paper Business developments
Paper Business developments Net sales EBITDA 360 60 24% 300 50 20% 240 40 16% 180 30 12% 120 20 8% 60 10 4% 0 0 0% 2015 2016 2017 2018 2019 -10 -4% in CHF million 2015 2016 2017 2018 2019 in CHF million in % of net sales Market environment Business trends Further 8-12% decline in Europe in demand
Slide 17: Paper Market and pricing trends in Western Europe
Paper Market and pricing trends in Western Europe million tonnes Newsprint million tonnes Magazine paper 10 10 8 8 6 6 Capacity 4 4 Nachfrage 2 2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 CHF / t (45 g/m²) CHF / t (LWC 60 g/m²) 1000 1000
Slide 18: The Packaging Division
The Packaging Division CPH Presentation, Annual Results Investors Conference of 25 February 2020 18
Slide 19: Packaging Business developments
Packaging Business developments Net sales EBITDA 180 30 24% 150 25 20% 120 20 16% 90 15 12% 60 10 8% 30 5 4% 0 0 0% 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 in CHF million in CHF million in % of net sales Market environment Business trends Global health costs rose 5.7% in 2019 Slight ne
Slide 20: Agenda
Agenda 1 Introduction Peter Schaub 2 Business developments Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht CPH Presentation, Annual Results Investors Conference of 25 February 2020 20
Slide 21: Consolidated income statement (I)
The CPH Group Consolidated income statement (I) in CHF million 2018 in % 2019 in % ± in CHF ± in % Net sales 533.5 100 524.7 100 -8.9 -1.7 Changes to semi-finished & finished inventories and other income 13.9 3 15.0 3 Total income 547.4 103 539.7 103 -7.7 -1.4 Cost of materials 269.8 51 260.3 50
Slide 22: Consolidated income statement (II)
The CPH Group Consolidated income statement (II) in CHF million 2018 2019 ± in CHF ± in % EBIT 51.6 56.6 +5.0 +9.6 in % of net sales 9.7 10.8 Financial result -6.0 -5.6 Earnings before taxes and non-operating/ extraordinary items 45.7 51.0 +5.3 +11.6 Non-operating result 0.1 0.8 Extraordinary re
Slide 23: Consolidated balance sheet
The CPH Group Consolidated balance sheet in CHF million (as of 31 December) 2018 in % 2019 in % ± in CHF ± in % Liquid funds 89.0 11 93.1 13 Other current assets 264.3 33 173.5 25 Fixed assets 447.2 56 436.0 62 Total assets 800.5 100 702.7 100 -97.8 -12.2 Current liabilities 220.8 28 95.9 14
Slide 24: Consolidated cash flow statement
The CPH Group Consolidated cash flow statement in CHF million 2018 2019 ± in CHF ± in % Net result (including minorities) 42.3 48.5 +6.2 +14.6 Depreciation, changes in provisions, other 26.7 31.4 Cash flow 69.0 79.9 +10.9 +15.9 Change in net current assets -4.7 -18.9 Cash flow from operating act
Slide 25: Net debt and leverage
The CPH Group Net debt and leverage Leverage Net financial debt for 2019 (in CHF million) 8,0x 93.2 6,6x 5.9 6,0x 4,0x 2,2x 2,2x 2,0x 0,7x 29.5 0,3x 116.8 – Lqd funds + Current Non-crnt Net financial 2015 2016 2017 2018 2019 securities+ financial financial debt Net debt / EBITDA fin rcvbls liabiliti
Slide 26: Proposed reduction in share nominal value
CPH Proposed reduction in share nominal value Distributions 2015 2016 2017 2018 2019 Dividend policy: distribution of 25% to 50% of the net result, with due regard to liquidity and Dividend per share free cash flow (in CHF) 0.60 0.65 0.65 1.801 1.802 Long-term distribution policy Dividend yield
Slide 27: Appropriation of available earnings
CPH Appropriation of available earnings in CHF thousand 2018 2019 Earnings available to the General Meeting 20 173 52 553 Release from capital contribution reserve 10 800 0 Dividend to shareholders -10 800 0 Transfer to voluntary retained earnings -20 173 -52 553 Balance of earnings to be carried fo
Slide 28: The CPH Group increases its earnings strength
The CPH Group increases its earnings strength 12.1% EBITDA margin for Chemistry: margin under pressure 18.6% EBITDA margin for Paper: best in Europe 15.5% EBITDA margin for Packaging: another record high 10.8% EBIT margin for the Group: highest since stock exchange listing CHF 48.4m net result for t
Slide 29: Target financial KPIs
Target financial KPIs Organic net sales growth of over 3% a year EBITDA margin of over 10% Equity ratio of over 50% Liquidity of at least CHF 30-50 million Annual operating investments of CHF 20-25 million CPH Presentation, Annual Results Investors Conference of 25 February 2020 29
Slide 30: Agenda
Agenda 1 Introduction Peter Schaub 2 Business developments Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht CPH Presentation, Annual Results Investors Conference of 25 February 2020 30
Slide 31: Outlook 2020 may well prove challenging
Outlook 2020 may well prove challenging Chemistry Paper Packaging Tense economic climate and market Demand for newsprint and magazine Weak growth in demand for reluctance to invest paper set to fall a further 6-8% pharmaceutical packaging in Deuterated products still in demand Growing over
Slide 32: Thank you for your attention.
Questions Thank you for your attention. CPH Presentation, Annual Results Investors Conference of 25 February 2020 32
Slide 33: Further key dates in 2020
Further key dates in 2020 17 March CPH Chemie + Papier Holding AG Ordinary General Meeting in the KKL, Lucerne 21 July 2020 Half-Year Report (to 30 June) 8 September CPH Group Investors’ Day CPH Presentation, Annual Results Investors Conference of 25 February 2020 33
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