Slide 1: Q1 2017 Earnings Presentation
Q1 2017 Earnings Presentation Uwe Röhrhoff, CEO Rainer Beaujean, CFO April 6, 2017
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. Q1 2017 Highlights 2. Financial Review 3. Outlook 4. Appendix April 2017 Q1 2017 Earnings 3
Slide 4: Adj. EBITDA margin maintained at record level despite expected revenues decline
Adj. EBITDA margin maintained at record level despite expected revenues decline REVENUES Adj. EBITDA Q1 2017 revenues impacted mainly by Q1 2017 Adj. EBITDA margin retained timing effects at high level Reported revenues down 5.4% year-on-year Adj. EBITDA margin of 19.8% in Q1 2017, at EUR 302.8m (FX
Slide 5: Timing effects and business environment uncertainties as main drivers for top line trends
Timing effects and business environment uncertainties as main drivers for top line trends Plastics & Devices Primary Packaging Glass Phasing of tooling revenues significantly Planned furnace repair in Momignies, impacted revenues in Plastics & Devices in Belgium occurred in Q1 Q1 2017 More cautionar
Slide 6: Continuous and rigorous monitoring of all key variables to deliver results
Continuous and rigorous monitoring of all key variables to deliver results GROWTH AND OPERATING LEVERAGE Launch of “Gx Solutions“, a new dedicated organization to better serve the specialty market Additional investments to support the expected growth of our inhaler business in North America COST CON
Slide 7: Agenda
Agenda 1. Q1 2017 Highlights 2. Financial Review 3. Outlook 4. Appendix April 2017 Q1 2017 Earnings 7
Slide 8: Q1 2017 Group Adj. EBITDA margin maintained despite revenues decrease
Q1 2017 Group Adj. EBITDA margin maintained despite revenues decrease Revenues by division GROWTH in % EUR M Q1 2017 Q1 2016 GROWTH IN % FXN1 Total Group 302.8 320.2 -5.4 -6.2 - Of which P&D 164.6 177.6 -7.3 -9.0 - Of which PPG 138.6 142.7 -2.9 -2.5 Adjusted EBITDA by division Q1 2017 Q1 2016 EUR M
Slide 9: Year-on-year comparison slightly distorted by lower revenues and furnace repair costs
Year-on-year comparison slightly distorted by lower revenues and furnace repair costs incurred in Q1 2017 EUR M Q1 2017 Q1 20161 CHANGE in EUR Adjusted EBITDA 59.9 63.5 -3.6 Depreciation -22.7 -21.2 -1.5 Adjusted EBITA 37.2 42.3 -5.1 Total one-off effects -0.1 -1.0 +0.9 Amortization of fair value ad
Slide 10: Solid Operating Cash Flow; Leverage unchanged at 2.6x
Solid Operating Cash Flow; Leverage unchanged at 2.6x EUR M FEB 28, 2017 NOV 30, 2016 CHANGE IN % Total assets 2,373.7 2,374.3 - Equity 789.9 763.3 +3.5% Equity ratio 33.3% 32.1% +120bps Net working capital 222.1 200.3 + 10.9% NWC in % of LTM revenues2 16.4% 14.6% +180bps Average NWC in % of LTM rev
Slide 11: Agenda
Agenda 1. Q1 2017 Highlights 2. Financial Review 3. Outlook 4. Appendix April 2017 Q1 2017 Earnings 11
Slide 12: Current assumptions point FY 2017 FXN revenues target to start at EUR 1.405bn
Current assumptions point FY 2017 FXN revenues target to start at EUR 1.405bn, i.e. the lower end of the range 2017 GUIDANCE REPORTED FY 2016 EXPECTED FY 2017 Revenues EUR 1,375.5m ~ EUR 1.43bn (FXN1 - plus/minus EUR 25m) Lower end of the range as current starting point for the year Adj. EBITDA EU
Slide 13: Looking into 2017 – 2018: Sales targets stay ambitious
Looking into 2017 – 2018: Sales targets stay ambitious; continued focus on lifting Adj. EBITDA margin objective to ~23% in FY 2018 ADDITIONAL OBJECTIVES FOR FY 2018 REPORTED FY 2016 EXPECTED FY 2018 (FXN1) Organic2 sales growth CAGR 2017-2018 2.9% (FY 2016 vs FY 2015) 4% to 5% Adj. EBITDA margin 22.
Slide 14: Navigating temporary lower demand whilst focussing on delivering expected earnings
Navigating temporary lower demand whilst focussing on delivering expected earnings Long term industry fundamentals unchanged despite potential weaknesses in the short term Client centric approach remains a priority in an evolving environment Proactively managing organization and processes to allow d
Slide 15: Agenda
Agenda 1. Q1 2017 Highlights 2. Financial Review 3. Outlook 4. Appendix April 2017 Q1 2017 Earnings 15
Slide 16: Development of net working capital
Development of net working capital FEB 28, 2017 NOV 30, 2016 FEB 29, 2016 EUR M EUR M EUR M Inventories 171.1 155.4 188.3 thereof prepayments made 3.2 3.1 3.0 Trade receivables 215.6 232.1 221.7 Trade payables 128.0 157.0 142.6 Payments received on account 36.6 30.2 38.3 of orders Net working capita
Slide 17: Development of inventories
Development of inventories FEB 28, 2017 NOV 30, 2016 FEB 29, 2016 EUR M EUR M EUR M Raw materials, consumables and supplies 51.4 49.9 52.3 Work in progress 19.3 18.4 24.7 Finished goods and merchandise 97.2 84.0 108.3 Prepayments made on inventories 3.2 3.1 3.0 Inventories 171.1 155.4 188.3 April 20
Slide 18: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted EPS after non-controlling 1.83 1.34 1.95 2.44 2.622 3.08 2.89 3.41 4.22 interests Cash flow from operating activities per 5.26 3.74 5.09 4.13 5.53 4.67 5.04 6.49 5.52 share Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0.
Slide 19: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions Abbreviations and Definitions Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 20: Financial calendar and contact details
Financial calendar and contact details FINANCIAL CALENDAR April 26, 2017 Annual General Meeting 2017 July 13, 2017 Interim Report 2nd Quarter 2017 October 11, 2017 Interim Report 3rd Quarter 2017 CONTACT DETAILS Name Corporate Investor Relations Phone +49 211 6181 257 Fax +49 211 6181 121 E-mail Ger
Slide 21: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.