Sts Group Ag · XETR:SF3
Sts — Investor Presentation (November 2020)
44 slides from Sts's investor presentation, November 2020
Slide 1: Investor Presentation STS Group AG
Investor Presentation STS Group AG Investor Presentation STS Group AG Status Q3 2020 Personal & third party confidential www.sts.group STS Group © 2020 Slide / 1
Slide 2: Preferred global plastic and composite solution provider
Investor Presentation STS Group AG We are the preferred global plastic and composite solution provider for transportation systems when it comes to design, comfort and efficiency! Personal & third party confidential www.sts.group STS Group © 2020 Slide / 2
Slide 3: STS Group is excellently positioned to tackle the megatrends
Investor Presentation STS Group AG Megatrends STS Group is excellently positioned to tackle the megatrends EMISSION REDUCTION ALTERNATIVE POWERTRAIN DIGITALISATION TRANSPORT GROWTH MARKET IMPACT Personal & third party confidential STS Group is well-positioned to develop new innovative solutions to c
Slide 4: Megatrend – Emission reduction
Investor Presentation STS Group AG Megatrends Megatrend – Emission reduction MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − New regulations for emission − Reduce total weight of the vehicle − Entire exterior trim solutions for reduction in Europe (EURO6) and with lightweight
Slide 5: Megatrend – Alternative powertrain
Investor Presentation STS Group AG Megatrends Megatrend – Alternative powertrain MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Alternative powertrain systems for − Development of new components − Component to cover battery vehicles for eVehicles systems − Advance of eMobili
Slide 6: Megatrend – Digitalization
Investor Presentation STS Group AG Megatrends Megatrend – Digitalization MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Autonomous or semi-autonomous − Development of complex systems, − Spoiler roof for camera systems driving to include radar and camera − Interior trim appli
Slide 7: Megatrend – Transport growth
Investor Presentation STS Group AG Megatrends Megatrend – Transport growth MEGATREND MARKET IMPACT WHAT CAN STS DO? PRODUCT SOLUTIONS (examples) − Growing e-commerce market − Extend customer portfolio and − Smart and efficient system − Increasing logistics activities global footprint to become a lea
Slide 8: STS Group at a glance
Investor Presentation STS Group AG STS Group at a glance Personal & third party confidential www.sts.group STS Group © 2020 Slide / 8
Slide 9: Mathieu Purrey – Management of STS Group AG
Investor Presentation STS Group AG STS Group at a glance Mathieu Purrey – Management of STS Group AG Mathieu Purrey is Chief Executive Officer (CEO) of the STS Group since July 2020. He takes responsibility at STS as sole member of the Management Board and has been nominated until 2023. He knows the
Slide 10: Successful transformation to global system supplier
Investor Presentation STS Group AG STS Group at a glance Successful transformation to global system supplier 2017 Long history to become one of the leading 2015 Acquisition of global composite 2019 global Tier 1 truck suppliers for soft and Greenfield plant in truck business from Plastic hard trim.
Slide 11: Intelligence for interior and exterior excellence
Investor Presentation STS Group AG STS Group at a glance Intelligence for interior and exterior excellence Hood STS designs and provides solutions for a broad variety of interior and exterior systems. So STS is the perfect partner to Front shelf engineer successful heavy and light commercial vehicle
Slide 12: Diversified global customer portfolio
Investor Presentation STS Group AG STS Group at a glance Diversified global customer portfolio STS Group is strategic partner for major MEDIUM HEAVY LIGHT COMMERCIAL LIGHT AGRICULTURE eVEHICLES part of global commercial vehicle OEMs, as COMMERCIAL VEHICLES VEHICLES VEHICLES AND OTHERS well as for th
Slide 13: Long-term project life cycles
Investor Presentation STS Group AG STS Group at a glance Long-term project life cycles STS Group acts within a market with long product cycles, which implies long-lasting 01 04 projects once acquired. Request for Quotation Start of Production (RFQ) (SOP) − After RFQ the procurement process can lead
Slide 14: Unique selling points of the STS Group
Investor Presentation STS Group AG STS Group at a glance Unique selling points of the STS Group COMBINE TECHNOLOGIES Technological know-how for structural, COMBINE TECHNOLOGIES visual and own material HIGH VERTICAL INTEGRATION Vertically integrated production from semi- HIGH VERTICAL INTEGRATION fin
Slide 15: Combine technologies
Investor Presentation STS Group AG STS Group at a glance Combine technologies STS is able to combine different COMPLETE ROOF SPOLER SYSTEM COMPLETELY ASSEMBLED FRONT MODUL technologies − Injection molding technology − Composite component production and to offer complete systems to the customer. Glob
Slide 16: Vertical integration
Investor Presentation STS Group AG STS Group at a glance Vertical integration Vertical integration production process sets Composite components (SMC, BMC, AMC) Injection molded components STS Group apart from their competitors. RAW MATERIAL RAW MATERIAL The high vertical integration and ability to c
Slide 17: Batch-size flexibility
Investor Presentation STS Group AG STS Group at a glance Batch-size flexibility STS Group focuses on medium batch size Total production costs include unit costs plus tooling production with a yearly production of up to 100,000 parts per year, which is mostly attractive Sheet metal forming for SMC co
Slide 18: Global footprint
Investor Presentation STS Group AG STS Group at a glance Global footprint STS Group has operations in 4 continents FRANCE with about 1,600 employees. – St. Désirat / Andance – Précigné STS Group has 8 production plants and 4 – Izernore GERMANY logistic/service plants. – Blainville – Hallbergmoos HQ
Slide 19: STS Group Strategy
Investor Presentation STS Group AG STS Group Strategy Personal & third party confidential www.sts.group STS Group © 2020 Slide / 19
Slide 20: Roadmap to global preferred system supplier with sustainable profit growth
Investor Presentation STS Group AG STS Group strategy Roadmap to global preferred system supplier with sustainable profit growth GROWTH IN CHINA MARKET ENTRY USA ADD-ON ACQUISITIONS China, as the largest automotive market USA is an attractive market being the Continuous market screening for potentia
Slide 21: Growth in China
Investor Presentation STS Group AG STS Group strategy Growth in China POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Largest market worldwide − Double current sales volume in the − All major truck manufacturers are − Local competitors only small local mid-term already STS customers family busine
Slide 22: Fully settled footprint to support aspired growth in China
Investor Presentation STS Group AG STS Group strategy Fully settled footprint to support aspired growth in China STS currently operates 3 production sites located strategically in close proximity to Chinese OEMs in the North and in the South. Thermocompression represents STS’ technology focus in Chi
Slide 23: Market entry USA
Investor Presentation STS Group AG STS Group strategy Market entry USA POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − Third-largest truck market worldwide − Market entry with composite − Projects for American truck OEM − Long-nose trucks with higher value technology acquired per vehicle (+120% m
Slide 24: Major contract allows set up of new plant in the USA
Investor Presentation STS Group AG STS Group strategy Major contract allows set up of new plant in the USA STS got awarded by a major international truck OEM. Scope of the project will be the production of an exterior system made of SMC. The duration of the project will be over ten years, with a lif
Slide 25: New products
Investor Presentation STS Group AG STS Group strategy New products POTENTIAL FOR STS OBJECTIVES THE ROAD TO SUCCESS − eMobility and emission regulation − Supplier for emerging eMobility − Tech-Days with several customers trigger need for new products market − Bundling of group-wide R&D activities −
Slide 26: eVehicle development within the next years
Investor Presentation STS Group AG STS Group strategy eVehicle development within the next years Europe1) China1) Global) 33% 35% 48% ICE2) ICE2) ICE2) 55% 50% HEV2) HEV2) 40% HEV2) 12% 14% 12% BEV2) BEV2) BEV2) 2020 2022 2024 2026 2020 2022 2024 2026 2020 2022 2024 2026 − Total share of HEV (Hybrid
Slide 27: Significant sales potential with battery covers
Investor Presentation STS Group AG STS Group strategy Significant sales potential with battery covers Increase of hybrid- and battery- electric vehicle production in the next years leads Battery Cover Market Europe1) Battery Cover Market China 1) to further sales volume from battery SMC SMC covers.
Slide 28: Financial Highlights
Investor Presentation STS Group AG Financial Highlights HY 2020 Personal & third party confidential www.sts.group STS Group © 2020 Slide / 28
Slide 29: COVID-19 impacted mainly European market
Investor Presentation STS Group AG Financial Highlights 9M 2020 COVID-19 impacted mainly European market Mid March reopening of all Chinese plants with Q3/Q4 customer call offs nearly on high productivity level as before COVID-19 Mid / End of April reopening of all Jan European plants Dec 2020 2020
Slide 30: Development of relevant automotive markets
Investor Presentation STS Group AG Financial Highlights 9M 2020 Development of relevant automotive markets European market heavily impacted by COVID-19 related plant closures of all OEMs in March and MHCV Europe2) (1,000 units1)) Automotive China3) (1,000 units1)) April. +13.5% -18.3% Ramp-up of pro
Slide 31: Q3 2020 - Recovery in Europe and strong growth in China
Investor Presentation STS Group AG Financial Highlights 9M 2020 Q3 2020 - Recovery in Europe and strong growth in China all values Revenues Adj. EBITDA in mEUR 2019 -20.9% Comments: 0.0% 2020 276.3 218.5 14.1 82.5 82.5 4.0 4.1 1.9 Revenues decreased by 20.9% yoy in 9M 2020: STS Group − Sales decli
Slide 32: After heavy COVID-19 impact on Q2 – Q3 on the level of 2019
Investor Presentation STS Group AG Financial Highlights 9M 2020 After heavy COVID-19 impact on Q2 – Q3 on the level of 2019 Revenues (in mEUR) Revenues by segment (in % of total revenues) FY yoy 95.5 98.3 %-change 82.5 86.5 82.5 74.3 61.7 8% -39.3% BU Materials 28% -28.5% BU Acoustics 27% +79.9% BU
Slide 33: Several measures applied to counteract sales drop
Investor Presentation STS Group AG Financial Highlights 9M 2020 Several measures applied to counteract sales drop Adj. EBITDA (in mEUR) EBITDA Adj. EBITDA Adj. EBITDA Margin (in %) 5.8 5.8 4.3 4.3 Q3 19 Q3 20 9M 19 9M 20 4.0 3.5 4.1 3.1 Acoustics 0.4% -0.9% 1.0% -8.4% 1.4 Plastics 6.2% -0.3% 7.5% -3
Slide 34: Focus on liquidity management
Investor Presentation STS Group AG Financial Highlights 9M 2020 Focus on liquidity management Net financial debt and leverage ratio (in mEUR / multiple) Financial debt (in mEUR) 2019 2020 59.2 31/03 30/06 30/09 31/12 31/03 30/06 30/09 56.1 55.6 48.9 Bank loans 16.7 15.5 14.0 12.4 14.1 24.5 39.3 39.1
Slide 35: Net income impacted by top line and one-time effects
Investor Presentation STS Group AG Financial Highlights 9M 2020 Net income impacted by top line and one-time effects Adj. EBITDA / Net Income Bridge 9M 2020 (in mEUR) 1.9 -4.1 -4.9 -6.0 -29.9 -35.3 -25.8 -5.4 Adj. Adj. EBITDA D&A EBIT Interest/ Net Net EBITDA Tax Income Income 9M 2020 9M 2019 Commen
Slide 36: Key Financials
Investor Presentation STS Group AG Financial Highlights 9M 2020 Key Financials in mEUR / % Q3 2019 Q3 2020 var. in % 9M 2019 9M 2020 var. in % Revenues 82.5 82.5 +0.0% 276.3 218.5 -20.9% EBITDA 3.1 -0.2 >-100% 13.2 -4.1 >-100% EBITDA Margin 3.7% -0.2% -3900 bps 4.8% -1.9% -5700 bps Adj. EBITDA 4.0 4
Slide 37: Outlook
Investor Presentation STS Group AG Outlook Personal & third party confidential www.sts.group STS Group © 2020 Slide / 37
Slide 38: STS Group specified outlook for fiscal year 2020
Investor Presentation STS Group AG Outlook STS Group specified outlook for fiscal year 2020 FY 2020 Guidance (November 17, 2020) - increasingly positive development of customer call-offs - China segment will continue its strong growth in Q4 - no further COVID-19 related significant restrictions MARK
Slide 39: Strategy Update – BACK TO BASICS
Investor Presentation STS Group AG Outlook Strategy Update – “BACK TO BASICS” Product portfolio profitability analysis Organizational simplification and reallocation of responsibilities Intensification of R&D activities to offer new innovative Personal & third party confidential products as a busine
Slide 40: Capital Market
Investor Presentation STS Group AG Capital Market Personal & third party confidential www.sts.group STS Group © 2020 Slide / 40
Slide 41: Automotive market development puts pressure on share
Investor Presentation STS Group AG Capital Market Automotive market development puts pressure on share Share information Share price last 12 months (Xetra) 90 Trades in 1,000 pcs. Share price in % 60,00% 80 ISIN DE000A1TNU68 (General Standard) 70 40,00% 20,00% Number of 60 6,500,000 Shares 50 0,00%
Slide 42: STS Group an attractive asset for today and tomorrow
Investor Presentation STS Group AG Capital Market STS Group an attractive asset for today and tomorrow Investment in STS Group with attractive value proposition: Global growth potential − leading market positions, − excellently positioned to tackle the Today … Solid order book … megatrends, − high t
Slide 43: Disclaimer
Investor Presentation STS Group AG Disclaimer This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realized from the proposals described herein. Forward-looking statements may include, in pa
Slide 44: Thank you for your attention!
Investor Presentation STS Group AG Thank you for your attention! Contact us Stefan Hummel Head of Investor Relations & Corporate Strategy ir@sts.group +49 811 124494 12 Personal & third party confidential www.sts.group STS Group © 2020 Slide / 44