Orion S.a. · NYSE:OEC
Orion — Orion Engineered Carbons — Q2 2015 Earnings Presentation
17 slides from Orion's earnings presentation, Aug 7, 2015
Slide 1: Q2 2015 Earnings Call
Q2 2015 Earnings Call August 7, 2015
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to our financial condition, results of operations and business. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known
Slide 3: Q2 2015 Highlights
Q2 2015 Highlights Adjusted EBITDA of €56.0 million and Adjusted EPS of €0.33 Adjusted EBITDA increased by €3.9 million, or 3.7%, to €109.9 million in the first six months of 2015 Cash increased by €15.5 million before dividend payment in the second quarter of 2015 Volumes increased to 260.5 kmt com
Slide 4: Q2 2015 Operating Results
Q2 2015 Operating Results Stronger margins drive improved performance Q2 2015 Performance Q2 2015 Q2 2014 Y-o-Y Comparison Volume (kmt) 260.5 255.9 1.8% Revenue €282.3m €341.3m -17.3% Contribution Margin €115.2m €109.0m 5.7% Contribution Margin / ton €442.2 €426.0 3.8% Adjusted EBITDA €56.0m €56.0m
Slide 5: First Half 2015 Operating Results
First Half 2015 Operating Results Strong First Half Performance H1 2015 Performance H1 2015 H1 2014 Y-o-Y Comparison Volume (kmt) 513.4 505.2 1.6% Revenue €572.8m €671.8m -14.7% Contribution Margin €225.0m €210.1m 7.1% Contribution Margin / ton €438.2 €415.9 5.4% Adjusted EBITDA €109.9m €106.0m 3.7%
Slide 6: Specialty Carbon Black Segment Results
Specialty Carbon Black Segment Results Volume growth and stronger margins drive improved performance Q2 2015 Performance Q2 2015 Q2 2014 Y-o-Y Comparison Volume (kmt) 54.7 52.5 4.2% Revenue €96.4m €103.6m -6.9% Gross Profit €40.3m €35.9m 12.3% Gross Profit / ton €736.1 €683.2 7.7% Adjusted EBITDA €3
Slide 7: Rubber Carbon Black Segment Results
Rubber Carbon Black Segment Results Continued efficiency improvements and growth offset by feedstock costs Q2 2015 Performance Q2 2015 Q2 2014 Y-o-Y Comparison Volume (kmt) 205.8 203.4 1.2% Revenue €185.9m €237.7m -21.8% Gross Profit €45.1m €43.9m 2.8% Gross Profit / ton €219.1 €215.7 1.6% Adjusted
Slide 8: Balance Sheet & Cash Flow Update
Balance Sheet & Cash Flow Update Solid free cash flow generation and strengthening balance sheet 3 months ended Cash inflows from operations of €47.2 million In € million June 30, 2015 Capital expenditures at €17.5 million for improvements and Net Income 14.6 maintenance projects comfortably covered
Slide 9: Regional GDP is largely developing as expected except for a worsening economy in Brazil
Regional GDP is largely developing as expected except for a worsening economy in Brazil 2015/Q2: Real 2015 GDP growth expectation by region - IMF North America Europe + 2.4% + 1.8% Slight revision of North American economic Recovery in the EU is continuing as growth in 2015, but still healthy expect
Slide 10: NAFTA and Asia markets develop positively, Europe sees a turnaround while South America continues to decline
NAFTA and Asia markets develop positively, Europe sees a turnaround while South America continues to decline 2015/Q2: Data on Tire Demand and Auto Build - 2015 Outlook North America Europe Automotive Passenger / LT Tire Automotive Passenger / LT Tire OEM Replacement OEM Replacement + 3.4% + 3% +0% +
Slide 11: Maintain 2015 Full Year Outlook
Maintain 2015 Full Year Outlook 2015 Full Year Adjusted EBITDA guidance remains €210 million to €225 million, towards midpoint if unfavorable feedstock costs persist Key Assumptions: Volume growth in line with current regional expectations Reasonable stability in oil prices and exchange rates based
Slide 12: Appendix
Appendix
Slide 13: OEC Frequently Asked Questions
OEC Frequently Asked Questions Q: What was the overall impact on Adjusted EBITDA of foreign exchange impacts, feedstock windfall changes and negative feedstock cost developments in Q2 2015? A: Favorable foreign exchange impacts in the second quarter of 2015 compared to the quarter a year earlier pri
Slide 14: OEC Frequently Asked Questions
OEC Frequently Asked Questions Q: Can you give an update on the intended transfer of QECC (currently controlled by Evonik) to Orion? A: We believe Evonik has the continuous obligation to effect the transfer of QECC to Orion. Negotiations with Evonik are currently on going. In the event Evonik ultima
Slide 15: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€million unless otherwise stated) Three Months Ended June 30, 2014 2015 Revenue 341 283 Variable costs (1) -232 -168 Contribution Margin 109 115 Sales volume (in kmt) 256 260 Contribution Margin per Metric Ton 426
Slide 16: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€million unless otherwise stated) Six Months Ended June 30, 2014 2015 Revenue 672 573 Variable costs (1) -462 -348 Contribution Margin 210 225 Sales volume (in kmt) 505 513 Contribution Margin per Metric Ton 416 4
Slide 17: Investor Relations Contact Details
Investor Relations Contact Details: Diana Downey +1 832-445-3865 Investor-relations@orioncarbons.com
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