Schouw & Co A/s · OMXCOP:SCHO

Schouw & Co A/s — Nordea Markets, Aalborg 2015

31 slides from Schouw & Co A/s's conference presentation, Nov 20, 2015

  1. Slide 1: Introduction to Schouw & Co.

    Introduction to Schouw & Co. Nordea Markets, Aalborg 20 NOVEMBER 2015 VP BUSINESS DEVELOPMENT, STRATEGY & IR KASPER OKKELS

  2. Slide 2: Agenda

    Nordea Markets Aalborg 20.11.2015 2 Agenda Schouw & Co. Our businesses Questions and How we think and Strategic opportunities/ discussions manage the challenges and 2015 Q3 conglomerate update

  3. Slide 3: Schouw & Co. at a glance

    Nordea Markets Aalborg 20.11.2015 3 Schouw & Co. at a glance 140 years of history  125 years in packaging BIOMAR World’s third largest manufacturer of quality feed for 8.5bn industrialised fish farming 25 years as a conglomerate  5 big businesses today FIBERTEX PERSONAL CARE Since 1954 listed on t

  4. Slide 4: We build a portfolio of leading Danish industrial businesses and develop them

    Nordea Markets Aalborg 20.11.2015 4 No divestments of We build a portfolio of core businesses leading Danish industrial Even bigger and businesses and develop stronger businesses them through value- Further develop creating, active and the portfolio long-term ownership Open to value-creating ownersh

  5. Slide 5: Strategic development

    Nordea Markets Aalborg 20.11.2015 5 Strategic development Bigger and stronger Bigger and stronger Consolidating the Diversification portfolio businesses conglomerate Revenue DKK billion 12.3 11.6 11.7 7.4 2.2 0.3 1988 2001 2006 2013 2014 2015

  6. Slide 6: The Schouw agenda

    Nordea Markets Aalborg 20.11.2015 6 The Schouw agenda Develop big and strong businesses Leading companies do perform better Expand in growth markets A global outlook is key Ongoing capex Balancing profit and growth Maintain focus on innovation Secure #1 positions Think long-term Ensuring high return

  7. Slide 7: 10 years of strong growth and profitable development

    Nordea Markets Aalborg 20.11.2015 7 2005 2007 2011 2012 2014 2015 10 years of Acquisition Acquisition Expansion JV in JV in JV in strong growth of BioMar of Provimi in Myre Costa Rica Turkey China and profitable development 2004 14 years of 2002 2003 2011 EUR +300m 2011 Acquisition Acquisition Green

  8. Slide 8: Ownership

    Nordea Markets Aalborg 20.11.2015 8 Ownership Two long-term shareholders Increase in share price and trading volume 450 12.000 Danish (29%) and foreign (15%) Danish active family-owned 400 institutional and business fund with activities Givesco+EE within bakery, industrial 10.000 retail investors 32

  9. Slide 9: Total shareholder return

    Nordea Markets Aalborg 20.11.2015 9 Total shareholder return yearly IRR, dividends reinvested, local currency, end date 18.11.2015 13:30 Since 1990 15.0% SCHO Since 2000 (25.9 years) (15.9 years) 17.2% SCHO 13.2% B.H. 7.7% B.H. 10.2% GE 3.3% APMM 8.4% APMM -0.7% GE Since 2010 Since 2015 46.8% GE (5.

  10. Slide 10: Strategic goals

    Nordea Markets Aalborg 20.11.2015 10 Strategic goals Growth Substantial growth every year Profit Benchmark level profitability Return ROIC > 15%, but dependent on level of risk Leverage Comfort zone for NIBD is 1-2 times EBITDA Payout Constant/increasing dividends and share buybacks Portfolio A ’han

  11. Slide 11: Third quarter of 2015

    schouwW-+co Third quarter of 2015

  12. Slide 12: 2015 Q3 at a glance: Continued progress

    Nordea Markets Aalborg 20.11.2015 12 2015 Q3 at a glance: Continued progress revenue return on invested capital NIBD/EBITDA 3.6bn Same level as 2014 Q3 17.0% ROIC incl. goodwill 14.0% -0.2x Debt lowered more than DKK 350m Impact from FX and raw material prices Only Fibertex Nonwovens below 15% Very

  13. Slide 13: Key figures

    Nordea Markets Aalborg 20.11.2015 13 Key figures Q3 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 3,599 3,618 -1% 9,487 8,682 9% 12,589 11,784 EBITDA 363 360 1% 856 775 10% 1,151 1,070 EBITDA% 10.1% 9.9% 1% 9.0% 8.9% 1% 9.1% 9.1% EBIT 269 270 0% 572 509 12% 770 708 EBIT% 7.5% 7.5% 0% 6.0% 5.9% 3% 6.1

  14. Slide 14: Our businesses

    Our businesses Strategic highlights and 2015 Q3 update

  15. Slide 15: BioMar grows by mega-trend driven demand

    Nordea Markets Aalborg 20.11.2015 15 BioMar grows by mega-trend driven demand GLOBAL POPULATION GROWTH AQUACULTURE BENEFITS 10 Population, billion Salmon is  High content of vitamins and The only healthy healthy fatty acids (Omega 3) 8 sustainable way 6  Low feed conversion ratio to increase the A

  16. Slide 16: BioMar geography

    Nordea Markets Aalborg 20.11.2015 16 BioMar geography NORTH SEA AMERICAS CONTINENTAL EUROPE ASIA Atlantic salmon, trout Atlantic salmon, coho, Sea bass, sea bream, portion Shrimp, tilapia, catfish, trout, tilapia trout, eel, a.o. pangasius, etc. Market size ~2.0m t Market size ~1.4m t Market size ~0

  17. Slide 17: BioMar 2015 Q3

    Nordea Markets Aalborg 20.11.2015 17 BioMar 2015 Q3 FINANCIAL HIGHLIGHTS 2015 Q3 UPDATE Flat revenue but decrease in volume Q3 last-twelve-months  Total volume down 7% - only in salmon markets 2015 2014 D 2015 2014 D  Effect from sea lice in Norway  Lower volume in Chile due to financial distress

  18. Slide 18: Fibertex Personal Care

    Nordea Markets Aalborg 20.11.2015 18 Fibertex Personal Care Spunbond for hygiene Differentiation important  Rolls of fabrics used in baby diapers,  Innowo Print (leading in direct femcare and adult incontinence nonwoven print) 100% owned  Global #5 with ~15% market share  Internationalisation of

  19. Slide 19: Fibertex Personal Care 2015 Q3

    Nordea Markets Aalborg 20.11.2015 19 Fibertex Personal Care 2015 Q3 FINANCIAL HIGHLIGHTS 2015 Q3 UPDATE Revenue flat Q3 last-twelve-months  Small volume decline YTD but increase in Q3 2015 2014 D 2015 2014 D  Volume YTD Malaysia down but Q3 above 2014 Revenue 465 455 2.1% 1,782 1,677 6.3%  Effect

  20. Slide 20: Fibertex Nonwovens

    Nordea Markets Aalborg 20.11.2015 20 Fibertex Nonwovens Leading in Europe in Executing turnaround industrial nonwovens and growth plans Hood insulation Trunk carpets  Many product applications  Technological and market 2004  Needle punching and driven profitable growth spunlacing technology  Not

  21. Slide 21: Fibertex Nonwovens 2015 Q3

    Nordea Markets Aalborg 20.11.2015 21 Fibertex Nonwovens 2015 Q3 FINANCIAL HIGHLIGHTS 2015 Q3 UPDATE Revenue up by 19% Q3 last-twelve-months  Effect from acquisitions in USA and consolidation of South Africa 2015 2014 D 2015 2014 D  Solid growth in auto and high-value segments  Soft demand for geo

  22. Slide 22: Hydra-Grene

    Nordea Markets Aalborg 20.11.2015 22 Hydra-Grene Hydraulic components and solutions  Wind turbine manufacturers largest customer group  OEM and aftermarket in Denmark  Offshore oil and gas small but growing Increase in sales to wind turbine industry  Sub-supplier margins are under pressure  Low

  23. Slide 23: Hydra-Grene 2015 Q3

    Nordea Markets Aalborg 20.11.2015 23 Hydra-Grene 2015 Q3 FINANCIAL HIGHLIGHTS 2015 Q3 UPDATE Q3 revenue at 2014 level, LTM 7% growth Q3 last-twelve-months  Wind turbine segment growing, almost 45% of revenue 2015 2014 D 2015 2014 D  Danish OEM and industry stable Revenue 148 147 0.5% 585 545 7.3%

  24. Slide 24: Hydra-Grene acquires Specma

    Nordea Markets Aalborg 20.11.2015 24 Hydra-Grene acquires Specma Specma at a glance  A leading Nordic hydraulics and fluid conveyance application provider with strong geographical presence  Two business areas Global and Nordic  Global Division, about ¾ of sales, serves primarily large OEMs on the

  25. Slide 25: Strong strategic rationale in acquiring Specma

    Nordea Markets Aalborg 20.11.2015 25 Strong strategic rationale in acquiring Specma Nordic Global Strategic rationale Specma  Unique match between Hydra products and competences  Highly complementing customer segments  Broad geographical presence  Reduction of Hydra’s exposure to the wind turbin

  26. Slide 26: Kramp

    Nordea Markets Aalborg 20.11.2015 26 Kramp Leading European supplier of spare parts and accessories for the agricultural sector  #1 in BeNeLux, Germany, Poland and Nordic countries  9 central warehouses covering 22 European countries  20% ownership in Kramp from Grene merger in 2013 Strategic age

  27. Slide 27: Kramp 2015 Q3

    Nordea Markets Aalborg 20.11.2015 27 Kramp 2015 Q3 FINANCIAL HIGHLIGHTS 2015 Q3 UPDATE Revenue up by 5% Q3 last-twelve-months  The established and big markets drives growth 2015 2014 D 2015 2014 D  Solid effect from partnerships with OEMs Revenue 1,359 1,300 4.6% 5,082 4,817 5.5% EBITDA 183 165 10

  28. Slide 28: Xergi

    Nordea Markets Aalborg 20.11.2015 28 Xergi STRATEGIC UPDATE FINANCIALS Turnkey biogas plants Revenue Operating profit  European leading manufacturer of large-scale turn-key biogas plants  Leading in technology  Main markets in Denmark, UK and France  50/50 joint venture with Danish nature/enviro

  29. Slide 29: 2015 outlook

    Nordea Markets Aalborg 20.11.2015 29 2015 outlook REVENUE 2015 F 2015 F 2014 EBIT 2015 F 2015 F 2014 DKK million after Q3 original actual DKK million after Q3 original actual BioMar c. 8,750 c. 8,500 8,451 BioMar 390-420 360-410 434 Fibertex Personal Care c. 1,800 c. 1,700 1,787 Fibertex Personal Ca

  30. Slide 30: Summing up

    Nordea Markets Aalborg 20.11.2015 30 Summing up STRATEGIC GOALS A STRONG PORTFOLIO Growth Substantial growth every year BioMar blue revolution | non-GDP cyclical | growth in existing/new markets Profit Benchmark level profitability Fibertex Personal Care demand for hygiene | double-digit growth in A

  31. Slide 31: Contact

    Contact Investor Relations CEO/President Kasper Okkels Jens Bjerg Sørensen ir.@.schouw.dk schouw @ schouw.dk +45 87 34 58 24 +45 86 11 22 22

Schouw & — Nordea Markets, Aalborg 2015 on 6ix