Alzchem Group Ag · XETR:ACT
Alzchem — Q2 2019 Earnings Presentation
23 slides from Alzchem's earnings presentation, Aug 14, 2019
Slide 1: Q2/2019 Financial Report AlzChem Group AG
Q2/2019 Financial Report AlzChem Group AG Andreas Niedermaier, CEO Dr. Georg Weichselbaumer, CSO August 14th, 2019
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 Q2/2019 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – Q2/2019 FINANCIAL REPORT ANALYST PRESENTATION 3
Slide 4: Highlights
HIGHLIGHTS Summary of business development Q2/2019 Financial Report FACTS & NUMBERS • Positive market response for the own distribution of Creamino; investment project within budget and schedule • Sales in line with the expected value of the annual forecast • In the Basics & Intermediates segment, c
Slide 5: Progress of Construction Projects: New Creamino production facility
PROGRESS OF CONSTRUCTION PROJECTS New Creamino production facility • Production will start in summer 2019 • Commissioning ceremony will take place in September • Project is on time and on budget • New production facility will triple the actual production capacity from 7,000 to 21,000 tons INVESTMENT
Slide 6: Creamino – the source of creatine for animal nutrition
CREAMINO – the source of creatine for animal nutrition AlzChem – inventor, producer, patent holder HIGHLY EFFICIENT GLOBAL SALES STRUCTURE NEXT STEPS • Strengthen and broaden sales network Small team at AlzChem SALES FORCE • Add countries and applications • Product development • Keep on training and
Slide 7: The dietary supplement with pure creatine – the solution
The dietary supplement with pure creatine – the solution CREATINE HEALTH CLAIM DECLINE IN MUSCLE STRENGTH In 2017 the European Commission has approved an additional health-related Loss of muscle strength with increasing age statement (Health Claim) for creatine: Slow decrease: between the age of 30
Slide 8: Progress of Construction Projects: Nitrile plants extension
PROGRESS OF CONSTRUCTION PROJECTS Extension of the nitrile plants begins with successful production • Production started in July 2019 • Project on time and on budget • Production of highly corrosive chlorinated nitriles with favorable margin • Investment secured with long term customer contracts KNO
Slide 9: Financial Overview Q2/2019 Financial Report
FINANCIAL OVERVIEW Q2/2019 FINANCIAL REPORT Result within guidance Q2 Q2 2018 2019 ALZCHEM GROUP yoy % yoy % 2018 2019 1-6 1-6 SALES (in M€) 100.7 96.1 -4.6% 195.2 188.2 -3.6% EBITDA (in M€) 15.9 14.6 -8.0% 31.0 27.9 -10.1% EBITDA margin (in %) 15.8% 15.2% -0.6 pp 15.9% 14.8% -1.1 pp Earnings per Sh
Slide 10: Agenda
AGENDA Analyst Presentation Q2/2019 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – Q2/2019 FINANCIAL REPORT ANALYST PRESENTATION 10
Slide 11: 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
Slide 12: Basics & Intermediates Segment: Back on the road to success
BASICS & INTERMEDIATES SEGMENT Back on the road to success again (M€) SALES 2.5% SALES EBITDA SALES ANALYSIS 37.0 37.8 36.9 35.9 35.5 37.8 34.2 33.0 30.3 Delta Q2 Delta 1-6 Volume + 0.4% + 0.2% 3.1% Price + 1.5% + 2.2% 71.1 73.3 Currency + 0.6% + 0.7% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2017 2017 2017 2018 2
Slide 13: 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 – Q2/2019 FINANCIAL REPORT ANALYST PRESENTATION 13
Slide 14: Specialty Chemicals Segment: Inverse seasonal effects
SPECIALTY CHEMICALS SEGMENT Inverse seasonal effects due to Creamino and Custom Synthesis Products (M€) SALES -9.0% SALES EBITDA SALES ANALYSIS 53.9 56.8 -8.1% 47.9 45.1 49.8 48.9 50.1 51.7 44.1 Delta Q2 Delta 1-6 110.7 101.7 Volume - 11.7% - 12.2% Price + 1.5% + 2.4% Currency + 1.2% + 1.6% -14.4% Q
Slide 15: Other & Holding Segment
OTHER & HOLDING SEGMENT Further activities DESCRIPTION The "Other & Holding" segment comprises all activities that cannot be allocated to the other segments. The segment offers infrastructure and energy supply services at our locations for the chemicals segments and for external customers. ALZCHEM G
Slide 16: Other & Holding Segment: Stable service business
OTHER & HOLDING SEGMENT Stable service business on prior year level SALES SALES EBITDA SALES ANALYSIS -5.5% 6.8 7.0 6.8 7.0 6.6 6.6 6.5 6.3 6.1 Delta Q2 Delta 1-6 Volume - 6.9% - 3.3% Price + 1.5% + 1.5% Currency ± 0.0% ± 0.0% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 -1.8% 2017 2017 2017 2018 2018 2018 2018 2019
Slide 17: Balance Sheet
BALANCE SHEET AlzChem Group AG (M€) ASSETS COMMENTS 31.12.2018 29.3 34.4 78.9 171.0 313.6 • Seasonal trade receivables increase 30.4 53.6 85.8 190.1 359.8 • Higher non-current-assets due to capex 30.06.2019 projects Other current-assets Trade receivables Inventories Non-current-assets LIABILITIES CO
Slide 18: Cash Flow Half-Year
CASH FLOW HALF-YEAR Expansion CAPEX is the basis for further growth COMMENTS • Lower operating cash flow due to higher NWC – nevertheless, the inventory peak was successfully passed • Investing cash flow above prior year level due to main CAPEX projects Creamino and NITRALZ® • Higher net cash from f
Slide 19: Outlook 2019: Underlying assumptions
OUTLOOK 2019 Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed – no economic turmoil (USA, China) • Stability in product registration and energy legislation • US dollar outlook: 1.15 € / US$ Factors to watch • Continuous cl
Slide 20: Outlook 2019: Sales growth to continue
OUTLOOK 2019 Sales growth to continue (M€) SALES Adj. EBITDA COMMENTS 398.9 • As forecasted in the previous year, the first half of the year was characterized by Creamino´s own 389.9 distribution activities and the postponed range of custom synthesis products 375.2 – not by the current economic situ
Slide 21: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2019 AUG 14 Half-Year Financial Report 2019 2019 SEP 19-20 Roadshow Paris and Madrid 2019 SEP 25 Berenberg European Conference, Munich 2019 SEP 27 Baader Investment Conference, Munich 2019 NOV 14 Quarterly Statement 3rd Quarter 2019 2019 NOV 25-27 Deutsches Eigenkap
Slide 22: Sales
M€ M€ M€ 1,597 EMPLOYEES ~188 SALES ~28 EBITDA ~3 OPERATING CASHFLOW ALZCHEM SPECIALTY PRODUCTS CHEMICALS ARE SOLD 54% WORLDWIDE SALES Half-Year 2019 INNOVATION SINCE BASICS & 1908 INTERMEDIATES 39% OTHERS & HOLDING 7% All financial indicators relating to Half-Year 2019 figures
Slide 23: Thank you for your attention!
CONTACT THANK YOU Investor Relations T +49 8621 86-2888 FOR YOUR ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM