Alzchem Group Ag · XETR:ACT
Alzchem — Q2 2020 Earnings Presentation
35 slides from Alzchem's earnings presentation, Aug 11, 2020
Slide 1: AlzChem Group AG Q2 2020 Analyst Presentation
AlzChem Group AG Andreas Niedermaier, CEO Dr. Georg Weichselbaumer, CSO August 11, 2020 2020/Q2
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements This presentation contains forward-looking statements about the business, financial condition and earnings performance of the AlzChem Group. These statements are based on assumptions and projections resting upon currently available info
Slide 3: Agenda
AGENDA Analyst Presentation Q2/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 3
Slide 4: Highlights
HIGHLIGHTS Summary of business development Q2/2020 Financial Report Excellent performance in Best performance wthin Creamino® in line with last 10 quarters growth plan COVID-19: Dividend paid as per plan stable production without interruptions 1. virtual Annual General COVID-19: Meeting negligible i
Slide 5: Application: key success factor in Q2
Key success factor in Q2 Only European source with APPLICATION complete backward integration DIAGNOSTICS PHARMA / API MARKET Diagnostic test kits Biopharmaceutical for detection of production process DNA and RNA for manufacturing drugs (e.g. USED IN autoimmune diseases and cancer) 5
Slide 6: COVID-19 effects
COVID-19 Effects AUTOMOTIVE (Airbags) SYSTEM RELEVANCE Creamino® STEEL INDUSTRY (DNA test kits) Bioselect® CREAPURE® (less training) NITRALZ® AGRO 6
Slide 7: Financial Overview Q2/2020
FINANCIAL OVERVIEW Q2/2020 Key figures within guidance Q2 Q2 2019 2020 AlzChem Group yoy % yoy % 2019 2020 1-6 1-6 SALES (in M€) 96.1 102.5 +6.6% 188.2 197.3 +4.8% EBITDA (in M€) 14.6 16.8 +15.0% 27.9 29.1 +4.6% EBITDA margin (in %) 15.2% 16.4% +1.2 pp 14.8% 14.8% -0.0pp Earnings per Share (in €) 0.
Slide 8: Best performance within last quarters
BEST PERFORMANCE WITHIN LAST 10 QUARTERS Business drivers support stronger Q2 SALES EBITDA 102.5 Q2 100.7 2020 99.4 16.8 Q2 96.1 15.9 2020 15.1 14.6 94.5 94.7 13.2 13.6 92.0 92.1 12.3 10.4 88.0 88.4 8.7 8.0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 201
Slide 9: Agenda
AGENDA Analyst Presentation Q2/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 9
Slide 10: Basics & Intermediates Segment
BASICS & INTERMEDIATES SEGMENT Our integrated system DESCRIPTION The "Basics & Intermediates" segment comprises the production of basic and intermediate products that are marketed as independent products for example in agriculture, steel production and the automotive sector and as raw materials for
Slide 11: Basics & Intermediates Segment
BASICS & INTERMEDIATES SEGMENT Steel and automotive weakness offset by pharma and agro SALES +1.1% SALES EBITDA SALES ANALYSIS 41.7 36.9 35.9 35.5 37.8 36.0 38.3 33.0 34.4 DELTA DELTA +1.3% Q2 01 - 06 Volume +0.3% 0.0% 73.3 74.3 Price +0.5% +1.0% Currency +0.4% +0.4% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018
Slide 12: Specialty Chemicals Segment
SPECIALTY CHEMICALS SEGMENT Our growth focus DESCRIPTION The "Specialty Chemicals" segment produces and sells high-quality growth products in the area of specialty chemicals. SELECTED PRODUCTS ALZCHEM GROUP – Q2/2020 FINANCIAL REPORT ANALYST PRESENTATION 12
Slide 13: Specialty Chemicals Segment
SPECIALTY CHEMICALS SEGMENT Further on the forecasted growth path – despite COVID-19 SALES +11.9% SALES EBITDA SALES ANALYSIS 56.8 57.9 49.8 48.9 50.1 51.7 51.0 47.3 52.2 DELTA DELTA +8.2% Q2 01 - 06 Volume +9.9% +7.2% 110.1 101.7 Price +1.3% +0.2% Currency +0.8% +0.7% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -0.
Slide 14: Other & Holding Segment
OTHER & HOLDING SEGMENT Further activities DESCRIPTION The "Other & Holding" segment offers infrastructure and energy supply services at our locations for the chemicals segments and for external customers. The segment also comprises all activities that cannot be allocated to the other segments. ALZC
Slide 15: Other & Holding Segment
OTHER & HOLDING SEGMENT Service sales almost stable with a slight downward trend SALES SALES EBITDA SALES ANALYSIS -3.0% 7.0 6.6 6.6 6.8 6.7 6.5 DELTA DELTA 6.3 6.1 6.4 Q2 01 - 06 Volume -5.5% -4.5% Price +2.5% +2.4% Currency 0.0% 0.0% -2.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2
Slide 16: Balance Sheet
BALANCE SHEET AlzChem Group AG (M€) ASSETS LIABILITIES 354.3 354.3 342.6 342.6 62.7 Equity 61.3 182.2 Other non-current assets 186.3 80.4 Other non-current liabilities 86.1 26.4 Deferred taxes for pension provision 25.7 138.2 Pension provision 134.6 73.5 Inventories 74.6 50.0 Trade receivables 32.5
Slide 17: Cashflow
CASHFLOW Positive free cashflow due to strong cash inflow from ongoing operations Cashflow from ongoing Cashflow from Cashflow from Net increase / decrease operations (Net cashflow) investing activity financing activity in cash and cash equivalents +11.7 -9.6 +2.7 +1.1 +1.0 -1.0 -22.5 +21.0 1-6 1-6
Slide 18: Implementing Operating Targets
IMPLEMENTING OPERATING TARGETS Focus on the key growth drivers IMPLEMENTATION OF THE ESTABLISH FIRST SALES CREAMINO® GROWTH OF LIVADUR® • Increase number of trials worldwide • Training pharmacists • Reinforce technical staff – to train • Push various promotion activities distributors more intensivel
Slide 19: Outlook 2020
OUTLOOK 2020 Outlook confirmed, but expected on the lower end of the guidance SALES EBITDA COMMENTS • Start of the expected Creamino® ramp-up in second half of the year after completion of moderate to ongoing feeding trials strong increase • Reinforcement of custom manufacturing 376.1 moderate • Con
Slide 20: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2020 SEP 21 Baader Investment Conference (virtual) 2020 SEP 22 Berenberg and Goldman Sachs Conference (virtual) 2020 SEP 29 Kapitalmarktkonferenz - Family Office Day, Vienna 2020 NOV 11 Quarterly Statement 3rd Quarter 2020 2020 NOV 16 - 18 Eigenkapitalforum, Germany
Slide 21: Sales
M€ M€ M€ 1,631 ~197 ~29 ~12 EMPLOYEES SALES EBITDA OPERATING CASHFLOW Other and Holding ALZCHEM 6.6% PRODUCTS ARE SOLD Basics WORLDWIDE 37.7% & Intermediates SALES YTD 2020/06 INNOVATION SINCE 55.8% 1908 Specialty Chemicals All financial indicators relating to YTD 2020/06 figures
Slide 22: Thank You
CONTACT THANK YOU VIELEN DANK FÜR Investor Relations T +49 8621 86-2888 IHREYOUR FOR AUFMERKSAMKEIT! ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 23: Agenda
AGENDA Analyst Presentation Q1/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 23
Slide 24: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP (IN T€) 31.12.2019 30.06.2020 Deviation ALZCHEM GROUP (IN T€) 31.12.2019 30.06.2020 Deviation Intangible assets 1,541 1,360 -181 -11.8% Share capital 101,763 101,763 Tangible assets 165,702 162,969 -2,733 -1.6% RETAINED EARNINGS (+) / LOSS (-) 69,294 72,750
Slide 25: Pension Accounting (IFRS)
PENSION ACCOUNTING (IFRS) AlzChem Group (M€) 2.62% 134.6 138.2 +0.5 +0.6 -0.6 +3.1 -26.4 111.7 PENSION SERVICE NET INTEREST PENSION PENSION PENSION DEFERRED PENSION IN FINANCIAL PROVISION COSTS COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31.12.2019 MENTS 30.06.2020 30.06.2020
Slide 26: Income Statement
INCOME STATEMENT AlzChem Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ALZCHEM GROUP (IN T€) Deviation (Q2) Jun. 19 Jun. 20 Dev. YOY 2019 2019 2019 2019 2020 2020 2020 2020 Revenue 92,123 96,120 99,431 88,398 94,740 102,511 6,391 7% 188,244 197,251 9,008 10% Changes in inventories of finished goods and work in prog
Slide 27: Income Statement
INCOME STATEMENT AlzChem Group Q2 Q2 YTD YTD ALZCHEM GROUP (IN T€) Deviation (QoQ) Deviation (YoY) 2019 2020 Jun.2019 Jun.2020 Revenue 96,120 102,511 6,391 6.6% 188,244 197,251 9,008 4.8% Changes in inventories of finished goods and work in progress -321 -3,162 -2,841 885.4% 7,574 -1,010 -8,584 -113
Slide 28: Cash Flow
CASH FLOW AlzChem Group Q2 Q2 1-6 1-6 CASHFLOW (IN M€) 2019 2020 2019 2020 Consolidated earnings before taxes 8,893 9,721 16,659 16,207 Depreciation on fixed and intangible assets 4,302 5,742 8,599 11,324 Decrease in pension provisions -215 -257 -544 -635 Loss (+) / Profit (-) from the sale of non-c
Slide 29: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group 2018 2019 2020 YTD Q2 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Deviation PY (Q2) PY Actual Deviation PY (YOY) SALES T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ % T€ T€ T€ % Basics & Intermediates 34,155 36,926 35,896 32,989 35,465 37,844 41,693 34,405 36,012 38,2
Slide 30: Executive Team
EXECUTIVE TEAM AlzChem Group AG ANDREAS NIEDERMAIER, CEO WITH ALZCHEM SINCE 1999 AREAS OF RESPONSIBILITY Company Strategy, Finance & Controlling, Investor Relations & Communication, IT, Risk Management, HR, Supply Chain Management, Legal/Patents & Trademarks KLAUS ENGLMAIER, COO DR. GEORG WITH ALZCH
Slide 31: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies SUNDSVALL (SE) TROSTBERG (GER) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE Production facilities in Germany (4) and Sweden (1) and HQ in Trostberg (GER) WALDKRAIBURG (GER) ATLANTA (USA) SHANGHAI (CN) 31
Slide 32: Fully Integrated Business Model (Verbund System)
Fully Integrated Business Model (“Verbund” System) Ability to adapt production to satisfy changing end market needs Segment Specialty Chemicals Segment Basics & Intermediates THE “VERBUND” SYSTEM • Fully integrated production network • The output of a production step serves as the basic input for th
Slide 33: Our Products and Markets: Specialty Chemicals
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS A feed additive for broilers and pigs Feed additive Premium brand for creatine monohydrate as a food supplement in sports nutrition Food supplements Dietary supplement with pu
Slide 34: Our Products and Markets: Basics & Intermediates
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS Calcium carbide-based mixtures for hot metal desulphurization Steel industry INTERMEDIATES Fuel for airbags, key production of the intermediate product Automotive BASICS & Pha
Slide 35: Key Share Data
KEY SHARE DATA Share Details as of August 7, 2020 SHAREHOLDER STRUCTURE SHARES OUTSTANDING 10,176,335 LAST CLOSING PRICE EUR 19.70 Free float 26.1% including M&G plc 7.6% LIVIA Corporate MARKET CAPITALIZATION EUR 200.5 m Development SE 37.6% TICKER ACT WKN A2YNT3 for two na GmbH ISIN DE000A2YNT30 15