Semperit Ag Holding · VIE:SEM
Semperit — H1 2019 Earnings Presentation
38 slides from Semperit's earnings presentation, Aug 14, 2019
Slide 1: Semperit Group H1 2019/Q2 2019 Investor Presentation
SEMPERIT GROUP H1 2019/Q2 2019 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 14 August 2019 1
Slide 2: Agenda
Agenda Highlights (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 2 Investor Presentation H1 2019 I 14 August 2019 I Investor Relations
Slide 3: Transformation programme gathering pace, with Group performance strongly above H1 2018
Transformation programme gathering pace, with Group performance strongly above H1 2018 at both EBITDA / EBIT level Reduced complexity and higher quality of order book Target profitability of 10% EBITDA margin by end of 2020 (run rate 2021) -2.5% +35.5% +19.5% Revenue –2.5% for Group 448.5 437.
Slide 4: Highlights H1 2019
Highlights H1 2019 Revenue decreased by 2.5% to € 437.3m Semperit Group continues to improve – Industrial Sector almost flat (-0.7% to at EBITDA and EBIT level € € 289.5m) – Profitability significantly increased in € H1’19 and Q2’19 – Medical Sector declined by 5.9% to € € 147.8m – Increase of y
Slide 5: Agenda
Agenda Highlights (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 5 Investor Presentation H1 2019 I 14 August 2019 I Investor Relations
Slide 6: Revenue development H1 2019
Revenue development H1 2019 in € m -2.5% Revenue development 448.5 +2.2 437.3 -0.6 -3.5 Semperflex: Revenue at similar -9.3 level as H1'18 despite reduced market demand and economic uncertainty. Industrial Medical Sector Sector Sempertrans: Revenue decrease due to shift of focus from maximum pro
Slide 7: Industrial Sector H1 and Q2 2019
Industrial Sector H1 and Q2 2019 Strong improvement in Industrial Sector: +26.2% EBITDA yoy, € 10.9m Strong improvement in Industrial Sector: +22.5% EBITDA yoy, € 5.2m 52.7 28.2 41.8 24.5 23.0 19.0% Industrial Sector 17.9 15.6 17.3% 15.3% EBITDA in € m 18.2 EBITDA margin 12.6% 11.6% 14.3 1) H1’18 H1
Slide 8: Semperflex H1 2019
Semperflex H1 2019 H1'18 vs H1’19: -0.8% EBITDA yoy, € -0.2m 23.4% 23.8% 22.8% 24.4% 19.8% EBITDA in € m 17.4% EBITDA margin Semperflex 13.7 14.9 13.9 14.5 9.3 10.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 H1 2019 vs. H1 2018 Revenue and profitability at similar level as Revenue H1’18 121 current perio
Slide 9: Sempertrans H1 2019
Sempertrans H1 2019 H1'18 vs H1’19: >100% EBITDA yoy, € 6.8m 14.2% EBITDA in € m 9.0% EBITDA margin Sempertrans 6.4% 5.4 2.1% 1.4% 2.1% 2.4 2.7 0.5 0.8 0.7 1) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 H1 2019 vs. H1 2018 Successful turnaround continuing after challenging closure of Sempertrans sites Rev
Slide 10: Semperform H1 2019
Semperform H1 2019 H1'18 vs H1’19: +36.1% EBITDA yoy, € 4.3m 15.7% 16.4% 14.4% 12.2% EBITDA in € m 9.6% 8.9% EBITDA margin Semperform 7.3 7.9 8.3 6.2 4.5 3.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 H1 2019 vs. H1 2018 Solid order book and capacity utilisation Revenue 100 against the backdrop of an inc
Slide 11: Medical Sector / Sempermed segment H1 2019
Medical Sector / Sempermed segment H1 2019 H1'18 vs H1’19: >100% EBITDA yoy, € -0.4m 1.8% 0.8% EBITDA in € m 1.4 0.6 EBITDA margin Sempermed -0.9 -0.9 -1.3 Medical -1.1% -3.1 -1.2% Sector -1.7% -4.2% Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 H1 2019 vs. H1 2018 Revenue decline mainly driven by lower Rev
Slide 12: Agenda
Agenda Highlights update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 12 Investor Presentation H1 2019 I 14 August 2019 I Investor Relations
Slide 13: Financials and Profitability Overview
Financials and Profitability Overview Key figures Semperit Group H1 2019 in EUR m H1 2019 H1 2018 Change Change in EUR m Revenue 437.3 448.5 -2.5% -11.2 EBITDA adjusted1) 39.1 32.7 +19.5% +6.4 EBITDA margin adjusted 9.0% 7.3% +1.7 PP – EBITDA 39.1 28.9 +35.5% 10.3 EBITDA margin 9.0% 6.4% +2.6 PP – E
Slide 14: Revenue development H1 2019
Revenue development H1 2019 in € m Revenue development H1 2019 -2.5% 448.5 +2.2 437.3 -0.6 -3.5 -9.3 Industrial Medical Sector Sector -0.7%1) -0.6% -4.8% +2.2% -5.9%1) H1 2018 Semperflex Sempertrans Semperform Sempermed H1 2019 Revenue 68.2m 147.8m 120.9m 100.4m H1 2019 ► 1) All percentage numbers i
Slide 15: EBITDA development H1 2019
EBITDA development H1 2019 in € m +19.5% +6.8 -0.4 39.1 +4.3 -4.1 32.7 -0.2 1) H1 2018 Semperflex Sempertrans Semperform Sempermed Corporate H1 2019 adj. EBITDA H1 2018 32.7m 28.7m 1.3m 11.8m 0.1m -9.1m EBITDA H1 2019 28.4m 8.1m 16.1m -0.3m -13.2m 39.1m EBITDA margin H1 2019 23.5% 11.9% 16.0% -0.2%
Slide 16: Consistent yoy EBITDA improvement for 6th consecutive quarter
Consistent yoy EBITDA improvement for 6th consecutive quarter EBITDA margin EBITDA margin EBITDA, in EURm EBITDA in € m +35.5% +19.5% 39.1 22.7 32.7 28.9 17.0 16.5 13.1 10.1% 7.5% 7.7% 9.0% 5.9% 7.3% 4.5 6.4% 2.2% 1) 1) Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 H1 2018 H1 2018 H1 2019 • Continuous imp
Slide 17: Investments by quarter
Investments by quarter FY 2018: overall Capex of € 81m, approx. 50% for Semperflex and mixing FY 2019: overall Capex of € about 40m planned CAPEX per segment in € m 23.2 Semperflex Sempertrans 17.5 Semperform 10.0 15.6 16.2 Sempermed Corporate 9.2 5.2 6.4 3.4 1.9 2.6 4.2 6.6 6.5 5.2 1.9 2.1 6.5
Slide 18: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 21.6%1) 20.6%1) 21.0%1) 21.0%1) 20.5%1) 191.0 181.2 184.3 184.8 177.9 165.6 162.8 150.4 150.6 147.1 Inventories 131.8 123.7 112.6 114.1 Trade receivables 101.6 -67.7 -78.4 -83.3 Trade payables -106.4 -105.3 30 June 2018 30 Sept 2018 31 De
Slide 19: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 June 2019 Balance sheet 30/06/2019: € 815m Balance sheet 31/12/2018: € 769m Cash and cash equivalents of € 155m Financial liabilities: Corporate Schuldschein loan of € 226m Fixed 373 340 330 Equity
Slide 20: Financial Policy Framework
Financial Policy Framework Focus on Value Management € € EBITDA margin Equity ratio of >30% Net debt/EBITDA < 3.5x of 10% at Group level by end of 2020 (run rate 2021) Working Capital Total Capex of about € 40m to revenue < 25%, in FY 2019 focus to stay closer to 20%1) mostly for mainten
Slide 21: Agenda
Agenda Restructuring and Transformation update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 21 Investor Presentation H1 2019 I 14 August 2019 I Investor Relations
Slide 22: Management agenda 2019
Management agenda 2019 Focus on SemperMOVE10 to reach 10% EBITDA margin at Group level by end of 2020 (run rate 2021) Operations initiatives Sales initiatives Procurement, Increase output / Overall Volume growth SG&A initiatives Equipment Effectiveness (OEE) (new markets, new regions) Sustaina
Slide 23: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2019 14.08.2019 Half-year financial report 2019 Agnes Springer, Investor Relations 21.11.2019 Report Q1-3 2019 +43 1 79777 - 213 www.semperitgroup.com/en/ir Modecenterstrasse 22 1031 Vienna, Austria Disclaimer The informat
Slide 24: Agenda
Agenda Restructuring and Transformation update (p.3) Operational highlights (p.6) Financial performance (p.13) Management agenda (p.22) Appendix (p.25) 24 Investor Presentation H1 2019 I 14 August 2019 I Investor Relations
Slide 25: Financials and Profitability Overview Q2 2019 vs. Q2 2018
Financials and Profitability Overview Q2 2019 vs. Q2 2018 Key figures Semperit Group Q2 2019 in EUR m Q2 2019 Q2 2018 Change Change in EUR m Revenue 224.4 227.6 -1.4% -3.3 EBITDA adjusted1) 22.7 17.0 +33.4% +5.7 EBITDA margin adjusted 10.1% 7.5% +2.6 PP EBITDA 22.7 13.1 +72.7% 9.5 EBITDA margin 10.1
Slide 26: From reported to operating EBITDA / EBIT H1 2018
From reported to operating EBITDA / EBIT H1 2018 in EUR m 32.8 28.9 +3.9 13.2 +7.9 +55.2 Reported Expense for Adj. -49.8 EBITDA closure of EBITDA Reported Impairment Expense for Adj. EBIT H1 2018 Sempertans H1 2018 EBIT Sempermed closure of H1 2018 site in China H1 2018 Sempertans site in China 26 I
Slide 27: Overview price indices Butadiene
Overview price indices Butadiene Price movements for raw materials1) became highly unpredictable Price indices Butadiene as main raw material for synthetic rubber / latex 550 500 450 400 350 300 ø 2017 ø YTD 250 2019 200 ø 2016 ø 2018 150 100 50 Butadiene Europe Butadiene Korea 1) Selected raw mater
Slide 28: Overview price indices carbon black / wire rod
Overview price indices carbon black / wire rod Significant increase for raw materials1) used in industrial segments Price index carbon black Price index wire rod 375 200 350 ø YTD 325 2019 175 ø YTD 300 2019 275 ø 2018 ø 2018 150 250 ø 2017 ø 2017 225 200 125 175 150 ø 2016 100 ø 2016 125 100 75 75
Slide 29: Hybrid Capital Line with B & C
Hybrid Capital Line with B & C Overview – Contract between Semperit AG Holding and B & C Holding GmbH (100% subsidiary of B & C Industrieholding GmbH) signed on 12th Dec. 2017, total volume of up to € 150m Unused part 20m 1.75% – Can be drawn in up to three tranches until end of 2019 – Interest ra
Slide 30: Sectors and Group: H1 2019 vs H1 2018
Sectors and Group: H1 2019 vs H1 2018 Industrial Sector Medical Sector Semperit Group1) Change Change Change in EUR m H1 2019 H1 2018 % H1 2019 H1 2018 % H1 2019 H1 2018 % in EUR m in EUR m in EUR m Revenue 289.5 291.4 -0.7% -1.9 147.8 157.1 -5.9% -9.3 437.3 448.5 -2.5% -11.2 EBITDA 52.7 37.9 +39.0%
Slide 31: Sectors and Group: Q2 2019 vs Q2 2018
Sectors and Group: Q2 2019 vs Q2 2018 Industrial Sector Medical Sector Semperit Group1) Q2 Q2 Change Q2 Q2 Change Q2 Q2 Change in EUR m % % % 2019 2018 in EUR m 2019 2018 in EUR m 2019 2018 in EUR m Revenue 148.0 150.5 -1.7% -2.5 76.4 77.1 -0.9% -0.7 224.4 227.6 -1.4% -3.2 EBITDA 28.2 19.1 +47.2% 9.
Slide 32: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable FY Q1 Q2 Q3 Q4 FY Q2 Q1 Q3 Q4 FY Q1 Q2 2016 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 in EUR m adj.1) adj. 2) adj. 2) adj. 2) adj.2) adj.2) adj. 3) Revenue 852.4 229.3 232.3 208.4 204.2 874.2 220.9 227.6 221.
Slide 33: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q3 FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 in EUR m adj.2) adj.2) Revenue 184.9 53.5 53.2 46.8 52.5 206.1 58.8 62.8 53.4 55.1 230.0 61.1 59.7 EBITDA 43.4 11.7 10.5 8.7
Slide 34: Semperform and Sempermed (adj. where applicable)
Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 in EUR m adj.4) adj.4) Revenue 173.1 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3 43.7 192.2 49.9 50
Slide 35: Sectors and Group: FY 2018 vs FY 2017
Sectors and Group: FY 2018 vs FY 2017 Industrial Sector Medical Sector Semperit Group1) in EUR m FY 2018 FY 2017 % FY 2018 FY 2017 % FY 2018 FY 2017 % Revenue 567.0 537.0 +5.6% 311.5 337.1 -7.6% 878.5 874.2 +0.5% EBITDA 71.3 42.9 +66.1% -3.9 77.9 – 46.4 100.2 -53.7% EBITDA margin 12.6% 8.0% +4.6 PP
Slide 36: Key figures 2008-2018
Key figures 2008-2018 Key performance figures 2016 2017 2018 in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153) adj. 4) adj. 5) adj. 6) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 EBITDA margin 13
Slide 37: Product / market position / segment overview, FY 2018
Product / market position / segment overview, FY 2018 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform Sempermed Revenue € 878m € 230m / 26%1) € 145m / 17%1) € 192m / 22%1) € 312m / 35%1) EBITDA adj. € 50m2) € 49m € 4m € 22m € -4m Employees 6,7732) 1,776 / 27%3
Slide 38: Shareholder Structure
Shareholder Structure Shareholder structure Semperit is listed on the Vienna Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54% Primary focus of B & C is pursuing the fou