Alzchem Group Ag · XETR:ACT
Alzchem — Q3 2017 Earnings Presentation
32 slides from Alzchem's earnings presentation, Nov 14, 2017
Slide 1: Q3 Analyst Presentation
Q3 ANALYST PRESENTATION Ulli Seibel, CEO Andreas Niedermaier, CFO November 14, 2017
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 Q3 2017 – Analyst presentation EXECUTIVE SUMMARY Q3 2017 BUSINESS AND FINANCIAL DETAILS Q3 2017 BACK-UP ALZCHEM GROUP - Q3 – ANALYST PRESENTATION 3 / 21
Slide 4: Q3 Financial Highlights
Q3 FINANCIAL HIGHLIGHTS Top line growth continues in Q3 • 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 • Strong cash flow from operating business • Investment d
Slide 5: Q3 Financial Overview
Q3 FINANCIAL OVERVIEW A strong quater in a dynamic environment ALZCHEM AG w/o Softmatic [M€] Q3 / 2016 Q3 / 2017 yoy % 1-9 / 2016 1-9 / 2017 yoy % SALES 77.0 89.9 16.7% 250.5 272.7 8.9% EBITDA 1 5.3 10.3 95.6% 29.6 38.2 29.2% EBITDA margin 1 6.9% 11.5% 4.6 pp 11.8% 14.0% 2.2 pp adjusted EBITDA 11.5
Slide 6: Agenda
AGENDA Q3 2017 – Analyst presentation EXECUTIVE SUMMARY Q3 2017 BUSINESS AND FINANCIAL DETAILS Q3 2017 BACK-UP ALZCHEM GROUP - Q3 – ANALYST PRESENTATION 6 / 21
Slide 7: Q3 Sales by Region
Q3 SALES BY REGION ASIA/PACIFIC strategy pays back GERMANY EMEA ASIA / PACIFIC NORTH AMERICA SOUTH AMERICA Q3 / Q3 / Q3 / Q3 / Q3 / Q3 / Q3 / Q3 / Q3 / Q3 / yoy % yoy % yoy % yoy % yoy % 2016 2017 2016 2017 2016 2017 2016 2017 2016 2016 34.7 42.0 21.0% 25.2 28.6 13.5% 8.1 11.0 35.8% 7.9 6.7 -15.2% 1
Slide 8: Segment Basic & Intermediates
SEGMENT BASIC & 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 nam
Slide 9: Segment Basic & Intermediates
SEGMENT BASIC & INTERMEDIATES Segment analysis – financial overview SALES SALES EBITDA EBITDA SALES ANALYSIS Q3 2016 vs. Q3 2017 6.7% SALES 35.5 35.7 37.0 37.8 +5% +2% 33.8 35.0 6.0% -1% 29.3 Volume Price FX 110.5 104.3 36.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 6.5 COMMENTS 2016 2016 2016 2016 2017 2017 2017 • Sal
Slide 10: 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 11: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS Segment analysis – financial overview SALES 26.2% SALES EBITDA EBITDA SALES ANALYSIS Q3 2016 vs. Q3 2017 49.7 48.7 47.9 10.7% +30% -3% 42.6 41.2 45.1 -1% 35.7 Volume Price 141.7 FX 128.0 7.2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 29.9 32.1 COMMENTS 2016 2016 2016 2016 2017 2017 2017 • Sub
Slide 12: 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 including the operation of the C
Slide 13: Segment Other & Holding
SEGMENT OTHER & HOLDING Segment analysis – financial overview SALES 21.6% SALES EBITDA EBITDA SALES ANALYSIS Q3 2016 vs. Q3 2017 6.5 6.8 6.8 7.0 13.0% +20% +1% 5.9 5.8 6.2 ±0% Volume Price FX 20.6 18.2 -249.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 0.5 COMMENTS 2016 2016 2016 2016 2017 2017 2017 • Sales increase foll
Slide 14: Balance Sheet
BALANCE SHEET AlzChem AG w/o Softmatic AG ASSETS 31.12.2016 30.09.2017 yoy % EQUITY & LIABILITIES 31.12.2016 30.09.2017 yoy % NON-CURRENT ASSETS EQUITY Intangible assets 0.8 0.8 SHARE TO THE SHAREHOLDERS OF ALZCHEM AG 53.3 55.7 4.5% Tangible assets 104.8 106.4 1.5% Non-controlling interests 0.1 2.2
Slide 15: Q3 Cash Flow
Q3 CASH FLOW AlzChem AG w/o Softmatic AG CASHFLOW (IN M€) Q3 / 2016 Q3 / 2017 yoy % 1-9 / 2016 1-9 / 2017 yoy % OPERATING CASHFLOW 15.3 10.6 -30.7% 28.3 24.6 -13.1% - INVESTING CASHFLOW -5.3 -4.7 -11.3% -12.2 -12.1 -0.8% FREE CASHFLOW 10.0 5.9 -41.0% 16.1 12.5 -22.4% RAISING / REPAYMENT FROM LOANS -
Slide 16: Balance Sheet KPI
BALANCE SHEET KPI AlzChem AG w/o Softmatic AG MAIN BALANCE SHEET KPI 31.12.2016 30.09.2017 yoy COMMENTS TOTAL ASSETS 263.9 272.9 9.0 • Equity ratio increased slightly EQUITY (INCL. NON-CONTROLLING INTEREST) 53.5 57.9 4.4 • Positive effects by high EBITDA and reduction of EQUITY RATIO (%) 20.3% 21.2%
Slide 17: Pension Accounting
PENSION ACCOUNTING Only 0.5 m€ cashout from pensions -4% 0.5 1.4 104.9 0.9 5.7 101.1 IN FINANCIAL PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION STATEMENT PROVISION EBITDA COSTS PAYMENTS REMEASURE- PROVISION 31 Dec, 2016 (PERSONELL FINANCIAL MENTS 30 Sep, 2017 EXPENSES) RESULT BALANCE SH
Slide 18: CreAMINO® ~50 m€
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 19: Effects of First-Time Consolidation
EFFECTS OF FIRST-TIME CONSOLIDATION What would have been the effects if first-time consolidation would have been in Q3 P&L effect is only expected at 0.01 m€: • 1.07 m€ Capitalized transaction costs • 1.06 m€ other operating expenses Balance sheet extension by 2.6 m€ • 2.6 m€ cash from capital incre
Slide 20: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2017 NOV 14 Q3 FIGURES 2017 2017 DEC 31 END OF FISCAL YEAR 2017 FIGURES 2017 AVAILABLE 2018 MAR ANALYST CONFERENCE 2018 MAY Q1 FIGURES 2018 2018 MAY GENERAL MEETING 2018 2018 SEP HALF YEAR FIGURES 2018 2018 NOV Q3 FIGURES 2018 ALZCHEM GROUP - Q3 – ANALYST PRESENTATI
Slide 21: 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 22: Agenda
AGENDA Q3 2017 – Analyst presentation EXECUTIVE SUMMARY Q3 2017 BUSINESS AND FINANCIAL DETAILS Q3 2017 BACK-UP ALZCHEM GROUP - Q3 – ANALYST PRESENTATION 22 / 21
Slide 23: Q3 Profit & Loss
Q3 PROFIT & LOSS AlzChem AG w/o Softmatic AG ALZCHEM AG w/o Softmatic AG [T€] Q3 / 2016 Q3 / 2017 Delta COMMENTS Revenue 77.0 89.9 12.9 16.8% Changes in inventories of finished goods and work in progress 0.7 -2.5 -3.2 -445.4% • Strong volume growth in all Other income 3.0 2.3 -0.7 -21.4% segments Ra
Slide 24: 1-9 Profit & Loss
1-9 PROFIT & LOSS AlzChem AG w/o Softmatic AG ALZCHEM AG w/o Softmatic AG [T€] 1-9 / 2016 1-9 / 2017 DELTA COMMENTS Revenue 250.5 272.7 22.3 8.9% Changes in inventories of finished goods and work in progress -2.3 -1.0 1.3 -57.5% • Due to strong sales in the Specialty Other income 8.7 7.6 -1.1 -12.7%
Slide 25: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem AG w/o Softmatic AG Q3 2016 Q3 2017 SALES (IN M€) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 yoy % YTD YTD SPECIALTY CHEMICALS 42.6 49.7 35.7 41.2 48.7 47.9 45.1 128.0 141.7 10.7% BASICS & INTERMEDIATES 33.8 35.0 35.5 29.3 35.7 37.0 37.8 104.3 110.5 6
Slide 26: 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 27: 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 - Q3 – ANALYST PRESENTATION WALDKRAIBURG (GER) 27 / 21
Slide 28: Worldwide Q3 2017
Mio € Mio € Mio € 1,523 EMPLOEES ~273SALES ~41 Adjusted EBITDA ~25 OPERATING adjusted for operational CASHFLOW IPO project costs ALZCHEM PRODUCTS SPECIALTY ARE SOLD CHEMICALS BASICS & 51.9% INTERMEDIATES WORLDWIDE 40.5% SALES Q3 2017 YTD INNOVATION SINCE 1908 OTHERS & HOLDING 7.6% All financial indi
Slide 29: 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 30: Introduction to Group Segments: Specialty Chemicals
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 31: Introduction to Group Segments (Cont'd)
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 32: Stock: Share Details
STOCK Share details SHAREHOLDER STRUCTURE % ISIN / WKN DE000A0AHT46 / A0AHT4 LIVIA Corporate Development SE 47.70 TICKER SYMBOL SFP1 HDI Preminger GmbH 26.38 TYPE AND NUMBER OF 101.763.355 bearer shares SHARES with no par value (par value shares) Edelweiß Holding GmbH 19.79 STOCK Regulierter Markt (