Semperit Ag Holding · VIE:SEM
Semperit — Q3 2023 Earnings Presentation
35 slides from Semperit's earnings presentation, Nov 8, 2023
Slide 1: Semperit Group 1-9 2023 Investor Presentation
SEMPERIT GROUP 1-9 2023 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 8 November 2023
Slide 2: Agenda
Agenda Key Highlights & Strategic Update (p.2) Operational Performance (p.11) Financial Performance (p.14) Outlook (p.24) Appendix (p.28) 2 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 3: Promised and delivered – focus on strategic growth and industrial transformation
Promised and delivered – focus on strategic growth and industrial transformation % Acquisition of Sale of Sempermed Dividend paid Refined strategy Rico Group completed – shareholders to on track – – a transformational benefit from guidance confirmed growth step successful sale of Sempermed 3 Inves
Slide 4: Focus on profitable growth, customer intimacy and technology leadership
Focus on profitable growth, customer intimacy and technology leadership New divisional structure evolves around Semperit’s two main business models – while reducing complexity and enabling to scale up business Cost leadership Leveraging on know-how and Process and product innovation engineered
Slide 5: Developing the company towards 2030
Developing the company towards 2030 Ongoing mid-sized CAPEX projects in automation and digitalisation (e.g. hybrid handrails) Focus on operational efficiency Operational Right sized overheads Excellence Geographic business development into new markets / regions Refined strategy to provide
Slide 6: Strategic focus for Semperit Industrial Applications
Strategic focus for Semperit Industrial Applications HOSES – Cost leadership and enlargement of PROFILES – Focus on Europe and US product range DH5 investment: Capacity expansion in Odry/CZ will Expansion into Europe’s and North America’s strengthen Semperit’s position as one of the global market co
Slide 7: Strategic focus for Semperit Engineered Applications
Strategic focus for Semperit Engineered Applications BELTING – Levering on FORM – Towards a dynamic platform RICO – Platform for organic and existing capacity with profitable niche business inorganic growth Surpassing the expected global Strong focus on growth with new Production extension in Thalhe
Slide 8: ESG targets adapted to the new Group structure
ESG targets adapted to the new Group structure Sale of Sempermed and Rico acquisition imply not only a fundamental change of Group structure but also a review and adjustment of ESG targets EcoVadis platinum award for second year in a row Diversity & Inclusion (D&I) as focus point introduced while al
Slide 9: A selection of current sustainability initiatives (1/2)
A selection of current sustainability initiatives (1/2) DH5 – Focus on sustainability and automation • One of the world’s largest production sites for industrial and hydraulic hoses in the Czech Republic • Operations are set to start in the new production hall in 2025. • CO2-efficient hose productio
Slide 10: A selection of current sustainability initiatives (2/2)
A selection of current sustainability initiatives (2/2) ESG ratings • The EcoVadis assessment considers a wide range of CSR issues grouped into four themes: environment, labour & human rights, ethics and sustainable procurement. • For the second time, the Semperit Group has received the highest plat
Slide 11: Agenda
Agenda Key Highlights & Strategic Update (p.2) Operational Performance (p.11) Financial Performance (p.14) Outlook (p.24) Appendix (p.28) 11 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 12: Semperit Industrial Applications 1-9 2023
Semperit Industrial Applications 1-9 2023 Difficult market environment impacts results EBITDA in EUR m 23.9% 21.5% EBITDA margin 19.6% 19.1% 19.2% 18.0% 16.6% 17.6% 15.4% 12.5% Semperit 10.2% Industrial 30.2 Applications 21.3 24.0 15.5 15.3 14.2 14.3 17.5 17.8 12.6 7.4 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22
Slide 13: Semperit Engineered Applications 1-9 2023
Semperit Engineered Applications 1-9 2023 Positive results mainly driven by conveyor belts EBITDA in EUR m 16.4% 17.1% 18.3% 16.0% 15.1% EBITDA margin 11.3% 10.2% 8.7% Semperit 10.1% 8.2% Engineered 6.1% 15.8 Applications 11.3 12.2 13.1 9.0 8.4 7.5 5.2 5.4 5.2 3.3 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22
Slide 14: Agenda
Agenda Key Highlights & Strategic Update (p.2) Operational Performance (p.11) Financial Performance (p.14) Outlook (p.24) Appendix (p.28) 14 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 15: Financial highlights 1-9 2023
Financial highlights 1-9 2023 Lean management, Financing proactively adjusted and overhead reduction in order to Cash focus more than ever to strategic needs at end of Q1 ensure sound operating leverage Base dividend Balance sheet structure now more at EUR 1.50 paid in May, balanced between equity a
Slide 16: Overview of financial KPIs, 1-9 2022 vs. 1-9 2023 (as reported)
Overview of financial KPIs, 1-9 2022 vs. 1-9 2023 (as reported) 1-9 2022 1-9 2023 Δ 1-9‘22/‘23 Revenues, in EUR m 593.4 547.6 -7.7% EBITDA, in EUR m 79.8 56.8 -28.8% EBITDA margin, in % 13.5 10.4 -3.1PP EBIT, in EUR m 48.5 30.9 -36.3% EBIT margin, in % 8.2 5.6 -2.5PP Earnings after tax, in
Slide 17: Resilient operational performance despite difficult market situation
Resilient operational performance despite difficult market situation Revenues in EUR m Quarterly development of EBITDA (EUR m) and EBITDA margin (%) 1-9’22 - 1-9’23 -7.7% 593.4 547.6 15.8 33.7 13.0 12.1 11.1 11.2 7.5 11.2 25.9 22.9 20.3 20.7 20.8 13.1 1-9’22 1-9’23 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’2
Slide 18: Detail on Last Twelve Month (LTM) view
Detail on Last Twelve Month (LTM) view LTM development of Revenue (EUR m) and EBITDA margin (%) of the Industrial Sector 734.0 739.5 705.0 717.4 695.1 660.3 596.9 556.1 527.4 518.9 507.0 490.1 497.3 478.4 487.0 17.5 16.9 16.7 17.1 16.3 16.5 15.7 15.9 16.0 15.3 14.9 14.7 14.6 14.8 14.7 Q1’20 Q2’20 Q3
Slide 19: Major drivers of operating performance
Major drivers of operating performance in EUR m -29% 39.9 79.8 5.8 69.6 3.6 2.7 56.8 -8.1 -3.4 -6.6 -101.7 -25.1 EBITDA Price Effect Volume Change in Cost of Logistics Personnel exp. Misc. op. EBITDA Cost savings Acquisition EBITDA Sales Effect Sales inventories materials and Rico Rico & 1-9’22 purc
Slide 20: Quarterly CAPEX development 2021-2023
Quarterly CAPEX development 2021-2023 1-9 2023 CAPEX below prior year level as 2022 included commissioning of the P7+ plant in Kamunting (EUR 15m) Rico-Acquisition CAPEX: EUR 145 FY2023 CAPEX Outlook: ~EUR 70m, optimized phasing of capacity expansion (DH5, Odry) – for maintenance and small gro
Slide 21: Free cash flow before strategic growth investment
Free cash flow before strategic growth investment Operating cash flow improved due to working capital Free cash flow before strategic growth investments positive at EUR 111.0m, primarily driven by the proceeds from the sale of the medical business, mainly used for – strategic growth investments
Slide 22: Working Capital overview
Working Capital overview Components of Working Capital in EUR m 22.0% 19.6%1 20.3%1 20.5%1 21.8%1 237.4 198.9 153.1 158.8 155.6 160.4 128.2 125.2 114.7 121.9 Inventories 134.5 88.9 95.9 99.4 100.8 Trade receivables -63.9 -62.2 -58.5 -62.3 Trade payables -96.0 30 Sept ’22 31 Dec ’22 31 March ’23 30 J
Slide 23: Robust balance sheet structure and financial profile
Robust balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 September 2023 Balance sheet 30/09/2023: EUR 986m Cash and cash equivalents at EUR 160m Balance sheet 31/12/2022: EUR 843m New financing of EUR 360m arranged – EUR 15 m already used for Odry D
Slide 24: Agenda
Agenda Key Highlights & Strategic Update (p.2) Operational Performance (p.11) Financial Performance (p.14) Outlook (p.24) Appendix (p.28) 24 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 25: Management agenda
Management agenda Strategy implementation with focus on profitable growth Distinctive industrial focus on two competitive business models Managing the downturn through share of wallet gains and cost programme Simplification, lean management and operational efficiency Setting up future grow
Slide 26: Outlook 2023 (continued operations)
Outlook 2023 (continued operations) 2023: EBITDA at the lower end of the guidance range confirmed at ~EUR 70m 2023: CAPEX expected at ~EUR 70m 26 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 27: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2023 / 2024 Judit Helenyi, Director Investor Relations 08.11.2023 Report on Q1-3 2023 19.03.2024 Publication of 2023 annual financial statements +43 1 79777 - 310 23.04.2024 Annual General Meeting, Vienna www.semperitgroup
Slide 28: Agenda
Agenda Key Highlights & Strategic Update (p.2) Operational Performance (p.11) Financial Performance (p.14) Outlook (p.24) Appendix (p.28) 28 Investor Presentation 1-9 2023 I 8 November 2023 I Investor Relations
Slide 29: Divisions & Group: 1-9 2023 vs 1-9 2022
Divisions & Group: 1-9 2023 vs 1-9 2022 in EUR m INDUSTRIAL APPLICATIONS (SIA) ENGINEERED APPLICATIONS (SEA) SEMPERIT GROUP Q1-9 2023 Q1-9 2022 % Q1-9 2023 Q1-9 2022 % Q1-9 2023 Q1-9 2022 % Revenue 264.5 349.1 -24.2% 254.9 209.2 21.8% 547.6 593.4 -7.7% EBITDA 42.7 75.4 -43.4% 36.4 24.9 46.1% 56.8 79
Slide 30: Semperit Group (continued operations)
Semperit Group (continued operations) SEMPERIT GROUP in EUR m FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2021 2022 2022 2022 2022 2022 2023 2023 2023 Revenue 601,8 181,5 213,3 198,6 186,4 779,8 185,2 189,0 173,4 EBITDA 54,0 20,3 33,7 25,9 20,7 100,5 20,8 22,9 13,1 EBITDA margin 9,0% 11,2% 15,8% 13,0% 11,1% 12,9% 11
Slide 31: Semperit Industrial Applications, Semperit Engineered Applications & Corporate
Semperit Industrial Applications, Semperit Engineered Applications & Corporate in EUR m SEMPERIT INDUSTRIAL APPLICATIONS (SIA) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2021 2022 2022 2022 2022 2022 2023 2023 2023 Revenue 341,9 111,1 126,4 111,6 101,1 450,2 99,4 93 72,2 EBITDA 59,2 21,3 30,2 24 12,6 88 17,5 17,8 7
Slide 32: Surgical Operations 1-9 2023
Surgical Operations 1-9 2023 Weak results driven by low demand and price levels 5.1% EBITDA in EUR m 0.8 -0.2 EBITDA margin -0.4 -1.6% -1.9 -4.0% -2.1 Surgical -3.4 -2.8 Operations -19.1% -20.9% -24.8% -25.3% Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 1-9 2023 vs. 1-9 2022 Revenue Closing Sempermed
Slide 33: Key figures 2012-2022
Key figures 2012-2022 in EUR m KEY PERFORMANCE FIGURES 2012 2013 20141) 20151) 2016 adj.2) 2017 adj.3) 2018 adj.4) 2019 adj.5) 2020 adj.6) 20217) 20227) Revenue 828,6 906,3 858,3 914,7 852,4 874,2 875,5 840,6 927,5 601,8 779,8 EBITDA 108,7 132,5 101,9 96,2 74,7 35,8 50,3 63,8 208,6 54,0 100,5 EBITDA
Slide 34: 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 250 ø 2021 ø 2022 ø 2023 200 150 100 50 0 01 / 2021 01 / 2022 01 / 2023 Butadiene Europe Butadiene Korea 1) Selected raw material
Slide 35: Overview price indices LFO-F-NWE / wire rod
Overview price indices LFO-F-NWE / wire rod Significant increase for raw material1) used in industrial segments Price index LFO-F-NWE Price index wire rod 225 200 ø 2021 ø 2022 ø 2023 ø 2021 ø 2022 ø 2023 200 175 175 150 150 125 125 100 100 75 75 50 50 25 25 01/2021 01/2022 01/2023 01/2021 01/2022 0