Schouw & Co A/s · OMXCOP:SCHO

Schouw & Co A/s — Non-Deal Roadshow (November 2014)

38 slides from Schouw & Co A/s's roadshow presentation, Nov 18, 2014

  1. Slide 1: Schouw & Co. Investor Presentation November 2014

    Schouw & Co. Investor Presentation November 2014 VP Business Development, Strategy and IR Kasper Okkels

  2. Slide 2: Introduction: Schouw & Co. at a glance

    PRESENTATION CONTENTS THE PORTFOLIO  General introduction to Schouw & Co.  A short update on the portfolio BIOMAR  Special emphasis on BioMar The World’s third largest 8.7bn manufacturer of quality feed for industrialised fish farming  2014 Q3 as appendix FIBERTEX PERSONAL CARE The World’s fifth

  3. Slide 3: M&A activity

    Merger Fibertex Xergi Provimi EV: 660m EV: 675m 100% 100% (BioMar) Innowo EV: 100m 85% (FPC) NWS Martin BioMar Tharreau EV: 150m EV: 300m 100% (FIN) EV: 500m EV: 1.800m 60+40% 68%+32% 100% (FIN) Merger Grene/Kramp M&A activity 2000 2002 2004 2006 2008 2010 2012 2014 Hydro- Grene power Industri- serv

  4. Slide 4: Years of strong growth and profitable development

    2005 2007 2011 2012 2014 2015- 9 years of strong growth Acquisition Acquisition Expansion JV in JV in Growth and and profitable of BioMar of Provimi in Myre Costa Rica Turkey acquisitions development 2002 2003 2004 2011 EUR +300m 2011 13 years of Acquisition Green-field in Acquisition Acquisition in

  5. Slide 5: Conglomerate value creation

    1 Focused business operation 2 Transform the businesses benchmark level minimum secure ambitious plans  Delivering solid performance and  Bolt-on acquisitions growth every year  Structural and strategic initiatives  Optimal capital management  Development of products and  Secure ongoing innova

  6. Slide 6: The Schouw agenda

    The Schouw agenda Develop big and strong businesses Leading companies do perform better Expand in growth markets A global outlook is key Constantly increase capacity Balancing profit and growth Maintain focus on innovation Secure #1 positions Think long-term Ensuring high return on capital Attract t

  7. Slide 7: Ownership

    TWO MAIN LONG-TERM SHAREHOLDERS STRONG HISTORICAL YIELD 300 Danish and Danish active family-owned 250 foreign (18%) Givesco+EE business fund with activities institutional and 32% within bakery, industrial 200 Net 132 retail investors equipment, food/chocolate by Q3 45% and hardware. 150 0 0 100 115

  8. Slide 8: Significant shareholder value created

    Total Shareholder Return Historical share price development with dividends reinvested Significant shareholder value created over the last 20 years Data by March 2014 8 18.11.2014 Investor presentation Q3 2014

  9. Slide 9: Strong unique position after 2013

    Growth in revenue and attractive profit Significant reduction of net interest-bearing debt Strong unique position after Sale of Martin Professional  2013 to Harman Industries A focused strategy has created a strong foundation for further Combination of growth Grene and Kramp Sale of shares in Vesta

  10. Slide 10: BioMar

    BioMar

  11. Slide 11: BioMar Geography

    NORTH SEA AMERICAS CONTINENTAL EUROPE Geography Atlantic salmon, trout Atlantic salmon, coho, Sea bass, sea bream, portion trout, tilapia trout, eel, a.o. Market size c. 1.7m t Market size c. 1.2m t Market size c. 0.7m t Market growth* 5-6% Market growth* 6-7% Market growth 0-2% 2013 ANNUAL REPORT M

  12. Slide 12: BioMar's strategy

    ELEMENTS DIRECTION AND PRIORITIES Grow organically in line with existing markets BioMar’s Organisationally and geographically Establish units (incl. production) strategy in 2-4 new geographies before 2017, to the extent possible focusing on a limited number of species (< 5) Strengthen global capabil

  13. Slide 13: Ambitions from 2012 strategy plan

    Volume (1000 tons) 1.800 1.600  Sales of approx. 1.7 m tons in 2017  Approx. half through organic growth 1.400  The other half in new markets (acquisitions/JV’s/green fields)  5-6% EBIT margin  ROIC > 15% Ambitions 1.200 from 2012 1.000 strategy plan 800 600 400 200 0 2002 2003 2004 2005 2006 2

  14. Slide 14: Mega-trend driven demand

    GLOBAL POPULATION GROWTH AQUACULTURE 101 Population, billion SALMON IS  High content of vitamins and healthy HEALTHY fatty acids (Omega 3)  Low feed conversion ratio EFFECTIVE  1 kg feed gives almost 1 kg fish Mega-trend Asia GROWTH  Fish adapts to temperature  High yield (few bones and fins) d

  15. Slide 15: BioMar growth potential

    EXISTING MARKETS  Continued growth in salmon markets 2010 2030 2050  Adequate capacity in medium term  Continental market expected to remain flat 1.0m 3.0m 5.0m  Earnings improvements due to scale, logistics and R&D farmed salmon and trout in Norway  Maintaining market shares requires capex Bio

  16. Slide 16: The other businesses in the portfolio

    The other businesses in the portfolio

  17. Slide 17: Fibertex Personal Care

    HIGHLIGHTS THE BUSINESS MODEL  Global top 5 producer of nonwovens for hygiene  Growing and staying market (no alternatives)  A regional industry ∙ customers and suppliers  Supplies fabrics used in baby diapers, feminine hygiene and incontinence care products  Simple supply chain ∙ from PP to ro

  18. Slide 18: Spunmelt is a regional industry

    ASIA Market size c. 300k t Market growth c. 10-12% FPC market share c. 15% Customers P&G, SCA, KC, Unicharm,Daio, Spunmelt is Henang, DSG, a.o. Competitors Toray, PGI, Asahi, Mitsui, a regional AMERICAS Market size c. 400k t Universial, Avgol industry Market growth NA c. 0-2% LatAM c. 10% FPC market

  19. Slide 19: Fibertex Nonwovens

    HIGHLIGHTS AUTOMOTIVE  European top 2 supplier of  About ⅓ of revenue  industrial nonwovens  Market leader after  Huge versatility in product French 2011 acquisition Hood insulation Trunk carpets applications  Significant pipeline 10kt capacity  Needle punching and  Substitutes existing spun

  20. Slide 20: Hydra-Grene

    HIGHLIGHTS THE DANISH INDUSTRIAL BUSINESS  Leading Danish supplier of hydraulic components  Aftermarket customers (~25% of revenue)  Both premium and low-cost items at stock  Specialised trade and engineering business  Predominantly distributed through dealers  Strong R&D resources taking acti

  21. Slide 21: Kramp

    HIGHLIGHTS  Leading European supplier of spare parts and accessories for the agricultural sector  #1 in BeNeLux, Germany, Poland and Nordic countries  9 central warehouses covering 22 European countries  Combination of Kramp and Grene  Grene wholly owned by Schouw & Co. since 1988  20% ownersh

  22. Slide 22: A strong investment case

    A strong investment case BioMar • Blue revolution, huge growth potential in existing and new markets • Strong long-term position in a non-GDP cyclical fast growing market • Significant growth opportunities in feed for non-salmon species Fibertex Personal Care Kramp • Demand for hygiene products • Ag

  23. Slide 23: Strategic long-term ambitions

    BIOMAR HYDRA-GRENE  Growth in existing and new markets  Reduce fluctuations and  Beyond the limits: Sustain  cross utilise  expand increase profitability in wind  Volume ambition 1.7m tons, 5% EBIT margin  Building new segments  Salmon is less than 5% of global fish farming  Maintain ROIC >

  24. Slide 24: Growth potential

    ORGANIC ACQUISITIVE Limited growth in the short Several potential candidates, term, but significant long- primarily in Asia. Profitability BIOMAR term potential in salmon and attractiveness a feed. question. FIBERTEX The Asian market is growing Limited number of obvious Growth PERSONAL CARE minimum

  25. Slide 25: Highlights from 2014 Q3

    Highlights from 2014 Q3 Investor presentation

  26. Slide 26: Schouw & Co. 2014 Q3

     A satisfactory 3rd quarter  High season for Group earnings  Good operation and high efficiency  Continued favorable demand in all businesses  Sales declined 2% to DKK 3.6bn  BioMar flat volume, others increase in volume  Falling raw material prices affect BioMar sales negatively Schouw & Co.

  27. Slide 27: Schouw & Co. 2014 Q3 key figures

    Q3 YTD LTM 2013 2014 2013 D 2014 2013 D Revenue 3,618 3,703 -2% 8,682 8,666 0% 11,661 11,645 EBITDA 360 333 8% 775 692 12% 1,121 1,039 EBITDA% 9.9% 9.0% 11% 8.9% 8.0% 12% 9.6% 8.9% EBIT 270 246 10% 509 428 19% 766 685 Schouw & Co. EBIT% 7.5% 6.6% 12% 5.9% 4.9% 19% 6.6% 5.9% 2014 Q3 Profit before tax

  28. Slide 28: BioMar 2014 Q3

     Revenue at DKK 2,788m  Volume at 2013 level with 323,000 tons  Falling raw material prices affect sales negatively  EBIT increases by 6% to DKK 187m  Increase in gross profit  Strong focus on margin management in all areas  Good efficiency in production and logistics BioMar  Market conditio

  29. Slide 29: BioMar 2014 Q3 key figures

    Q3 YTD LTM 2013 2014 2013 D 2014 2013 D Revenue 2,788 2,940 -5% 6,218 6,361 -2% 8,559 8,702 EBITDA 223 213 5% 405 348 16% 595 538 EBITDA% 8.0% 7.2% 10% 6.5% 5.5% 19% 7.0% 6.2% EBIT 187 177 6% 299 240 25% 454 394 BioMar EBIT% 6.7% 6.0% 12% 4.8% 3.8% 28% 5.3% 4.5% 2014 Q3 Profit before tax Cash Flow f

  30. Slide 30: Fibertex Personal Care 2014 Q3

     Revenue increases by 20% to DKK 455m  Increased volume especially in Malaysia  Stable outlook in Europe (but significant growth in the quarter)  EBIT increases by 18% to DKK 48m  Effect from increased volume Fibertex  Commissioning of the new line of MAL completed Personal Care  Continued op

  31. Slide 31: Fibertex Personal Care 2014 Q3 key figures

    Q3 YTD LTM 2013 2014 2013 D 2014 2013 D Revenue 455 376 21% 1,302 1,179 10% 1,677 1,554 EBITDA 81 71 15% 217 218 0% 288 288 Fibertex EBITDA% EBIT 17.8% 48 18.8% 40 -5% 19% 16.7% 120 18.5% 124 -10% -3% 17.2% 160 18.6% 164 Personal Care EBIT% 10.5% 10.7% -2% 9.2% 10.5% -12% 9.5% 10.6% 2014 Q3 Profit b

  32. Slide 32: Fibertex Nonwovens 2014 Q3

     Revenue rises 4% to DKK 247m  Positive growth in several segments  Auto industry in very good development  Doubling EBIT to DKK 20m  Significant effect of increased volume and continued high production efficiency Fibertex  Multi-site planning and integration between European factories  Incre

  33. Slide 33: Fibertex Nonwovens 2014 Q3 key figures

    Q3 YTD LTM 2013 2014 2013 D 2014 2013 D Revenue 247 237 4% 786 715 10% 1,004 933 EBITDA 36 26 38% 100 79 27% 124 102 Fibertex EBITDA% EBIT 14.6% 20 11.0% 10 32% 96% 12.8% 53 11.1% 30 16% 77% 12.3% 60 10.9% 37 Nonwovens EBIT% 8.2% 4.4% 88% 6.8% 4.2% 61% 6.0% 4.0% 2014 Q3 Profit before tax Cash Flow f

  34. Slide 34: Hydra-Grene 2014 Q3

    Revenue increases by 16% to DKK 147m  Revenue from wind industry significantly higher / US positive  OEM segment at 2013 level EBIT of DKK 18m against 17m last year  Increased volume gives good capacity utilization  Negative effects from implementing new ERP system Hydra-Grene 2014 Q3 Growth

  35. Slide 35: Hydra-Grene 2014 Q3 key figures

    Q3 YTD LTM 2013 2014 2013 D 2014 2013 D Revenue 147 127 16% 428 362 18% 545 480 EBITDA 23 21 10% 63 49 28% 78 64 EBITDA% 15.3% 16.2% -5% 14.8% 13.6% 8% 14.3% 13.4% EBIT 18 17 4% 50 40 26% 56 46 Hydra-Grene EBIT% 12.3% 13.7% -10% 11.6% 10.9% 6% 10.3% 9.6% 2014 Q3 Profit before tax Cash Flow from oper

  36. Slide 36: Kramp 2014 Q3

     The large associate, 20% ownership stake  Merger between Grene and Kramp  European #1 position  Revenue of DKK 1.3bn in the quarter  Solid growth in all major markets  Market position has been strengthened Kramp  EBIT increases 10% to DKK 137m  High efficiency in logistics 2014 Q3  Synergi

  37. Slide 37: Outlook

    EBIT (DKK million) After Q3 After Q2 After Q1 Original 2013 BioMar 380-410 350-400 325-400 325-400 394 Fibertex Personal Care 155-165 150-170 150-170 150-170 164 Fibertex Nonwovens 60 45-55 35-45 35-45 37 Hydra-Grene 55-60 50-60 50-60 50-60 46 Others* (20-25) (20-25) (15-25) (15-25) 43 Total EBIT 62

  38. Slide 38: Contact

    Contact Investor Relations Kasper Okkels CEO/President Jens Bjerg Sørensen +45 86 11 22 22  schouw@schouw.dk

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