Gerresheimer Ag · XETR:GXI
Gerresheimer — Q2 2020 Earnings Presentation
20 slides from Gerresheimer's earnings presentation, Jul 14, 2020
Slide 1: Q2 2020 Earnings Presentation
Q2 2020 Earnings Presentation Dietmar Siemssen, CEO Bernd Metzner, CFO Duesseldorf, July 14, 2020
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or
Slide 3: Agenda
Agenda 1 Operational Update: On Track 2 Financial Update: Growth accelerating 3 Outlook: The Day after Tomorrow 3
Slide 4: On Track: We Deliver on Our Promises
On Track: We Deliver on Our Promises Key Take Aways Q2 2020 Strong performance in Q2: accomplishing growth mode despite Covid-19 Financial highlights in Q2 Revenues of EUR 363m Organically +4.6% in core business1) Adjusted EBITDA of EUR 84m, EBITDA margin 23.2% Strong free cash flow in Q2: EUR 45m r
Slide 5: Reliable Business Partner – Also in Challenging Times
Reliable Business Partner – Also in Challenging Times Covid-19 Update More than Business Continuity 1 Looking beyond Covid-19, we are preparing for the day after tomorrow Long-term tailwind due to global increase in 2 vaccinations as well as higher adherence for healthcare products 3 One-time effect
Slide 6: Promising Growth Prospects in Vials
Promising Growth Prospects in Vials The Vials Story Tailwind from global Covid-19 vaccination possible: Facing the global pandemic: We support any Covid-19 vaccine campaign in close cooperation with our customers Expansion of global vials market translating into possible sales tailwind in 2021/2022
Slide 7: Growth Enablers
Translating Gx Strategy into Profitable Growth Q2 Initiatives to Drive Growth Levers Growth Levers Solid underlying Growth The “right” market growth segments product solutions Strong 1 mindset Robust pharma business Roll-out of investment Gx® Elite Glass: for growth strategy unchanged Commercial
Slide 8: Agenda
Agenda 1 Operational Update: On Track 2 Financial Update: Growth accelerating 3 Outlook: The Day after Tomorrow 8
Slide 9: Q2 2020 – Growth Mode turning in P&L
Q2 2020 – Growth Mode turning in P&L Overview (EUR m) Q2 2020 Q2 2019 YoY Analysis Strong Organic growth of +4.6% in core Revenues 362.9 356.5 +2.6%2) business despite Covid-19 one-time hit in cosmetics business Profitability increase due to strong core Adj. EBITDA 84.2 74.21) +6.9%2) business perfo
Slide 10: Robust Core Business: Growth despite Covid-19
Robust Core Business: Growth despite Covid-19 Q2 2020 Divisions EUR m 200.6 Organic Organic growth 56.0 growth 187.6 +9.0% +16.3% — Centor back on track, strong revenue growth 46.7 (>10%) in all other units P&D — Margin improvement to 27.9% on the back of organic EBITDA growth of 16.3% Q2 2019 Q2 20
Slide 11: Strong Outperformance in Free Cash Flow
Strong Outperformance in Free Cash Flow Cash Flow in Q2 2020 (EUR m) Q2 2020 Q2 2019 Change Analysis Adjusted EBITDA 84.2 74.21) +10.0 Driven by strong core business Change in net working capital 6.1 -16.7 +22.8 Supported by factoring Capex -30.7 -28.4 -2.3 Net interest paid -3.0 -3.2 +0.2 Net taxes
Slide 12: Leverage decreased – Financial Flexibility increased
Leverage decreased – Financial Flexibility increased End of Q2 2020: Financial Status NET FINANCIAL DEBT AND ADJ. EBITDA LEVERAGE NET FINANCIAL DEBT ACCORDING TO CREDIT AGREEMENT IN FORCE1) 1,016.5 976.0 In EUR m Feb 2020 May 2020 3.4x Revolving credit facility 369.6 360.2 3.2x Promissory loans (201
Slide 13: Agenda
Agenda 1 Operational Update: On Track 2 Financial Update: Growth accelerating 3 Outlook: The Day after Tomorrow 13
Slide 14: Accelerating Growth: Outlook 2nd Half 2020
Accelerating Growth Outlook 2nd Half 2020 Running on schedule with mid-single digit growth P&D Production start of Skopje plant in summer 2020 Mid-single digit growth PPG Recovery of cosmetics business Preparing for capacity increase in vials Exploration of further technologies, opportunities and GA
Slide 15: Guidance confirmed
Guidance confirmed At Group level (FXN) FY 2020 Mid-term Mid-single Mid-single Revenue Growth digit growth digit growth Adjusted EBITDA ~21%1 ~ 23% Capex ~ 12% 8 - 10% (% of revenues) 1. Including a positive effect of EUR 9m to EUR 11m from the transition to IFRS 16. 14/07/2020 Q2 2020 Earnings 15
Slide 16: Focus on Growth
Focus on Growth Q2 2020: Core business on track We are prepared for the time after Covid-19 securing additional sales opportunities and implementing lessons learned Gerresheimer long-term profitable growth journey has successfully started 14/07/2020 Q2 2020 Earnings 16
Slide 17: Next Events
Next Events Financial Reporting Capital Markets Day October 13, 2020: December 2020 Publication 3rd Quarter Results Public Event for Investors and Analysts - Details to follow 17
Slide 18: Appendix
GERRESHEIMER Appendix
Slide 19: YoY Revenue & Organic Growth Reconciliation
YoY Revenue & Organic Growth Reconciliation In EUR m organic growth rate +2.6% 0.8 6.1 364.5 0.8 362.9 16.8 356.5 356.0 355.4 1.6 0.5 0.6 +9.0% -0.5% Gx Group Q2 2019 FX Q2 2019 Buenos Q2 2019 P&D PPG GAT Internal Q2 2020 FX Q2 2020 (FXN) Aires (FXN) adj. (FXN) +4.6% +7.1% 7.5 364.6 363.0 8.3 1.6 34
Slide 20: YoY Adj. EBITDA & Organic Growth Reconciliation
YoY Adj. EBITDA & Organic Growth Reconciliation in EUR m organic growth rate 100.4 0.3 100.7 +6.9% 26.2 81.9 84.2 2.9 4.9 79.6 2.3 74.5 7.6 0.5 2.3 +16.3% +8.8% Gx Group Q2 2019 FX Q2 2019 Purchase Q2 2019 P&D PPG GAT HQ, Cons. Q2 2020 IFRS16 Q2 2020 FX Q2 2020 (FXN) Price, (FXN) adj. (FXN) bef. (FX