Semperit Ag Holding · VIE:SEM
Semperit — FY2019 Earnings Presentation
36 slides from Semperit's earnings presentation, Mar 20, 2020
Slide 1: Semperit Group FY 2019 Investor Presentation
SEMPERIT GROUP FY 2019 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Petra Preining, CFO 20 March 2020 1
Slide 2: Corona Update - Health and Safety is Key Priority
Corona Update - Health and Safety is Key Priority Currently no Semperit employees are critically ill with Corona (CoViD-19) People Prevention is KEY – physical contact reduced to the minimum Currently no shortage of critical raw materials Procurement Alternative suppliers available Longer
Slide 3: Agenda
Agenda Highlights 2019 and Restructuring & Transformation update (p.3) Operational highlights (p.7) Financial performance (p.14) Management agenda (p.24) Appendix (p.27) 3 Investor Presentation FY 2019 I 20 March 2020 I Investor Relations
Slide 4: Highlights 2019: Adjusted EBITDA +26.8%, reported +46.1%
Highlights 2019: Adjusted EBITDA +26.8%, reported +46.1% Significant improvement both at Revenue down by 4.3% to € 840.6m operating EBITDA and EBIT, despite negative impact of economic cycle € Decline mainly due to economic slowdown € in H2 2019 – Material contribution of transformation and re
Slide 5: Financial Analysis of Restructuring Impact in 2017-2019
Financial Analysis of Restructuring Impact in 2017-2019 2017 2018 2019 Sales 874.2 878.5 0.5% 840.6 –4.3% Adj. EBITDA 35.8 50.3 40.6% 63.8 26.8% Adj EBITDA margin 4.1% 5,7% 1.6 PP 7.6% 1.9 PP Adj EBIT –0.8 15.4 (–) 28.2 83.4% Adj EBIT margin –0.1% 1.7% 1.8 PP 3.4% 1.7 PP Adj
Slide 6: Transformation programme with tangible material impact
Transformation programme with tangible material impact and operational performance significantly up at EBITDA/EBIT level On the back of successful transformation programme, significant improvements +0.5% -4.3% +26.8% Revenue –4.3% for Group 874.2 878.5 63.8 –3.5% for Industrial Sector 840.6 +4
Slide 7: Agenda
Agenda Highlights 2019 and Restructuring & Transformation update (p.3) Operational highlights (p.7) Financial performance (p.14) Management agenda (p.24) Appendix (p.27) 7 Investor Presentation FY 2019 I 20 March 2020 I Investor Relations
Slide 8: Revenue development
Revenue development in € m Revenue development -4.3% 878.5 840.6 Semperflex: Reduced market -7.3 -10.8 -1.6 demand due to destocking -18.2 Sempertrans: Lower volumes as a Industrial Medical result of focus shift to quality of Sector Sector order book and product profitability Semperform: Almos
Slide 9: Industrial Sector adjusted EBITDA 2019 and Q4 2019
Industrial Sector adjusted EBITDA 2019 and Q4 2019 Strong improvement Quarterly development with a clear positive trend in Industrial Sector: while economic headwind had material impact in Q4'19: +16.3% EBITDA yoy, Q4’19 yoy EBITDA-Margin slightly down by 1.0PP +€ 12.3m 87.5 28.2 75.2 24.5 23.0 22.0
Slide 10: Semperflex
Semperflex 2019 2018 vs 2019: -2.0% EBITDA yoy, € -1.0m 23.4% 23.8% 22.8% 24.4% 19.8% 20.1% EBITDA in € m 17.4% 18.1% EBITDA margin Semperflex 13.7 14.9 13.9 14.5 9.3 10.9 10.8 8.7 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 2019 vs. 2018 Revenue slightly down due to reduced market demand as a
Slide 11: Sempertrans
Sempertrans 2019 2018 vs 2019: >100% EBITDA yoy, € +9.1m 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 6.4% 5.4 2.1% 4.6 2.1% 2.7 2.5% 1.4% 2.4 0.5 0.8 0.7 0.8 1) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 2019 vs. 2018 Revenue Successful turnaround after closure of Sempertrans 134
Slide 12: Semperform
Semperform 2019 2018 vs 2019: +18.8% EBITDA yoy, € +4.1m 15.7% 16.4% 14.4% 13.8% 12.2% EBITDA in € m 9.6% 8.9% EBITDA margin Semperform 7.8% 7.3 7.9 8.3 6.2 6.6 4.5 3.9 3.3 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 2019 vs. 2018 Revenue stable despite reduced market demand Revenue 191 Furt
Slide 13: Sempermed
Medical Sector / Sempermed segment 2019 2018 vs 2019: >100% EBITDA yoy, € +5.3m 2.3% 1.8% 0.8% EBITDA in € m 1.4 1.8 -0.1% 0.6 EBITDA margin Sempermed -0.1 -0.9 -0.9 Medical -1.3 -1.1% -3.1 -1.2% Sector -1.7% -4.2% Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q4’19 1) 2019 vs. 2018 Significant operat
Slide 14: Agenda
Agenda Highlights 2019 and Restructuring & Transformation update (p.3) Operational highlights (p.7) Financial performance (p.14) Management agenda (p.24) Appendix (p.27) 14 Investor Presentation FY 2019 I 20 March 2020 I Investor Relations
Slide 15: Financials and Profitability Overview
Financials and Profitability Overview Change in in € m FY 2019 FY 2018 Change EUR m Revenue 840.6 878.5 -4.3% -37.9 1) EBITDA adjusted 63.8 50.3 +26.8% +13.5 EBITDA margin adjusted 7.6% 5.7% +1.9 PP – EBITDA 67.8 46.4 +46.1% +21.4 EBITDA margin 8.1% 5.3% +2.8 PP – 1) EBIT adjusted 28.2 15.4 +83.4% +
Slide 16: Revenue development
Revenue development in € m -4.3% 878.5 840.6 -7.3 -10.8 -1.6 -18.2 Industrial Medical Sector Sector -3.5%1) -5.8% -3.2% -7.4% -0.8% FY 2018 Semperflex Sempertrans Semperform Sempermed FY 2019 Revenue 222.7m 134.0m 190.6m 293.3m FY 2019 ► 1) Change of each segment / sector for FY 2019 vs FY 2018. 16
Slide 17: From reported to adjusted EBITDA / EBIT 2019
From reported to adjusted EBITDA / EBIT 2019 EBITDA EBIT 67.8 28.2 4.0 63.8 48.8 -16.5 4.0 EBITDA 1) One-Off: EBITDA 2) EBIT One-Off: One-Off: EBIT reported Sempermed adjusted reported Sempermed Sempermed adjusted (final) provision (final) (final) provision Impairment (final) reversal reversal (Braz
Slide 18: Adjusted EBITDA development
Adjusted EBITDA development in € m +26.8% +5.3 -4.1 63.8 +4.1 50.3 +9.1 -1.0 FY 2018 Semperflex Sempertrans Semperform Sempermed Corporate FY 2019 Operating EBITDA FY 20181) 50.3m 48.9m 4.4m 21.9m -3.9m -21.0m Operating EBITDA FY 20192) 47.9m 13.5m 26.0m 1.4m -25.1m 63.8m Operating EBITDA margin FY
Slide 19: Sempermove10 shows material impact: EBITDA improvement for 8th consecutive quarter
Sempermove10 shows material impact: Consistent yoy EBITDA improvement for 8th consecutive quarter +26.8% +46.1% 67.8 22.7 63.8 10.1% 50.3 17.0 17.3 46.4 15.8 16.5 7.7% 7.5% 13.1 9.2% 7.1% 5.9% 7.4 3.9% 8.1% 7.6% 5.7% 4.5 5.3% 2.2% 1) 2) 2018 2018 2019 2019 Q1 Q2 1) Q32) Q4 EBITDA margin EBITDA in €
Slide 20: CAPEX by quarter
CAPEX by quarter FY 2018: overall CAPEX of € 81m, approx. 50% for Semperflex and mixing FY 2019: overall CAPEX of € 32m - predominantly maintenance CAPEX per segment in € m 23.2 Semperflex Sempertrans 10.0 Semperform 16.2 Sempermed 5.2 Corporate 3.4 1.9 2.6 6.8 6.5 5.2 1.3 3.7 1.4 1.9 0.0 6.5 0.
Slide 21: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 21.0%1) 21.0%1) 20.5%1) 19.0%1) 18.5%1) 184.8 177.9 184.3 163.4 155.2 150.6 147.1 136.0 150.4 122.2 Inventories 101.6 112.6 114.1 109.8 94.6 Trade receivables -67.7 -78.4 -82.5 -61.5 Trade payables -83.3 31 Dec 2018 31 March 2019 30 June
Slide 22: Free cash flow development
Free cash flow development Improved results, active WC management and strict CAPEX control support cashflow development First positive free cash flow after being negative in the previous years Development of cash flow components1) in € m 90.2 64.1 60.8 39.1 10.2 -25.4 -24.5 -29.4 -66.8 -63.6 -76
Slide 23: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 31 December 2019 Balance sheet 31/12/2019: € 702m Balance sheet 31/12/2018: € 769m Cash and cash equivalents of € 141m Financial liabilities: Corporate Schuldschein loan partially Fixed 275 330 Equity
Slide 24: Agenda
Agenda Highlights 2019 and Restructuring & Transformation update (p.3) Operational highlights (p.7) Financial performance (p.14) Management agenda (p.24) Appendix (p.27) 24 Investor Presentation FY 2019 I 20 March 2020 I Investor Relations
Slide 25: Management agenda 2020
Management agenda 2020 Crisis management and taking necessary actions regarding the corona virus Address global economic downturn and take proactive initiatives Continue to implement SemperMove10 restructuring and transformation programme for profitability Outlook 2020: Significant Topline a
Slide 26: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2020 Judit Helenyi, Director Investor Relations 20.03.2020 Publication of 2019 annual financial statements 20.05.2020 Report on Q1 2020 +43 1 79777 - 310 www.semperitgroup.com/en/ir 22.07.2020 Annual general meeting, Vienn
Slide 27: Agenda
Agenda Highlights 2019 and Restructuring & Transformation update (p.3) Operational highlights (p.7) Financial performance (p.14) Management agenda (p.24) Appendix (p.27) 27 Investor Presentation FY 2019 I 20 March 2020 I Investor Relations
Slide 28: Sectors and Group: FY 2019 vs FY 2018
Sectors and Group: FY 2019 vs FY 2018 1) Industrial Sector Medical Sector Semperit Group in EUR m FY 2019 FY 2018 % FY 2019 FY 2018 % FY 2019 FY 2018 % Revenue 547.2 567.0 -3.5% 293.3 311.5 -5.8% 840.6 878.5 -4.3% EBITDA 87.5 71.3 +22.6% 5.5 -3.9 – 67.8 46.4 +46.1% EBITDA margin 16.0% 12.6% +3.4 PP
Slide 29: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable FY Q1 Q2 Q3 Q4 FY Q2 Q3 Q1 Q3 Q4 FY Q1 Q2 Q4 FY 2016 2017 2017 2017 2017 2017 2018 2019 1) 2) 2) 2) 2) 2) 2018 3) 2018 2018 2018 2019 2019 4) 2019 2019 in EUR m adj. adj. adj. adj. adj. adj. adj. adj. Revenue 852.4 229.3 232.3
Slide 30: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q3 FY Q1 Q2 Q4 FY Q1 Q2 Q3 Q4 FY 2017 2017 2017 2017 2017 2018 20161) 2018 2018 2018 2018 2019 2019 2019 2019 2019 in EUR m adj. 2) adj.2) adj. 2) adj.2) adj.2) adj. 3) Revenue 184.9 53.5 53.2 46.8 52.5 206.1 58.8 6
Slide 31: 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 Q3 Q4 FY 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 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
Slide 32: Key figures 2008-2018
Key figures 2008-2018 Key performance figures 1) 1) 3) 3) 2016 2017 2018 2019 in EUR m 2009 2010 2011 2012 2013 2014 2015 4) 5) 6) 7) adj. adj. adj. adj. Revenue 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 EBITDA 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 EBIT
Slide 33: 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 150 ø 2019 100 ø YTD 2020 50 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration purposes only.
Slide 34: 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 125 115,00 ø 2019 ø YTD ø 2019 ø YTD 2020 2020 100 75 90,00 Fuel Oil 1% Sulphur NWE FOB Cargo Price index wire rod (Germany) 1) Selected raw mate
Slide 35: Product / market position / segment overview, FY 2019
Product / market position / segment overview, FY 2019 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform4) Sempermed Revenue € 841m € 223m / 26%1) € 134m / 16%1) € 191m / 23%1) € 293m / 35%1) EBITDA adj. € 64m2) € 48m € 14m € 26m € 1m Employees 6,9022) 1,672 / 27
Slide 36: 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