Cph Group Ag Class A · SIX:CPHN

Cph Group Ag Class A — CPH Chemie + Papier Holding — Investor Day (June 2021)

29 slides from Cph Group Ag Class A's investor day presentation, Jun 14, 2021

  1. Slide 1: Investors' Day 2021

    CPH Chemie + Papier Holding AG Investors’ Day 2021 Monday 14 June 2021 in Perlen CPH presentation, Investors’ Day, 14 June 2021 in Perlen

  2. Slide 2: Disclaimer

    Disclaimer Investing in the shares of CPH Chemie + Papier Holding AG involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of CPH Chemie + Papier Holding AG . This document contains forward-looking statements w

  3. Slide 3: Agenda

    CPH Chemie + Papier Holding AG Agenda 10:00 CPH Group strategy and business development (Dr. Peter Schildknecht, CEO and Richard Unterhuber, CFO) 10:30 The Packaging Division: strategy, business development and Brazil (Wolfgang Grimm, Head of Packaging) 11:00 Q&A 11:30 Aperitif at the “Perle” restau

  4. Slide 4: The business divisions in 2020

    CPH strategy and business development The business divisions in 2020 Chemistry Paper Packaging Key figures for 2020 in 73.3 9.5 209.6 17.4 CHF 78.2 Mio. 162.3 27.8 CHF million Net sales EBITDA Net sales EBITDA CHF 9.5 Mio. Net sales EBITDA 287 Net sales by region 1% Switzerland 19% Switzerlad 5% Swi

  5. Slide 5: Strategy implementation

    CPH strategy and business development Strategy implementation Goals Balance proportions Raise proportion Reduce exposure of net sales among of net sales from to the Swiss franc CHF 78.2 Mio. the business divisions outside Europe CHF 9.5 Mio. in currency terms 287 Actions Further expand Chemistry Exp

  6. Slide 6: Strategy implementation: geographical presence in 2013

    CPH strategy and business development Strategy implementation: geographical presence in 2013 Müllheim Munich Uetikon Perlen Whippany Louisville CPH presentation, Investors’ Day, 14 June 2021 in Perlen 6

  7. Slide 7: Strategy implementation: 13 own production sites on 4 continents

    CPH strategy and business development Strategy implementation: 13 own production sites on 4 continents 6 Müllheim 2 Gröbenzell Zvornik 4 Utzenstorf Perlen Rüti Lianyungang Whippany Suzhou Shanghai Louisville 1 Singapore Anápolis 11% Switzerland 2020 net sales 62% Rest of Europe by region 15% The Ame

  8. Slide 8: Strategy implementation: divisional business development

    CPH strategy and business development Strategy implementation: divisional business development CPH Group Chemistry Paper Packaging 600 90 360 180 500 75 300 150 400 60 240 120 Net sales in 300 45 180 90 CHF million 200 30 120 60 100 15 60 30 0 0 0 0 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018

  9. Slide 9: The CPH Group net sales and EBIT 2009-2020

    CPH strategy and business development The CPH Group in CHF +/- 0% 1% p.a. million1)  2008 banking/financial crisis and 600 534 525 15% 2009 economic crisis 482 488 481 492 500 470 445 430 382 420 435 10%  Swiss franc appreciated by around 40% 400 10.8% 9.7% against the euro between 2009 and 300 5%

  10. Slide 10: CPH: impact on EBIT of EUR/CHF exchange rate trends

    CPH strategy and business development CPH: impact on EBIT of EUR/CHF exchange rate trends Currency impact (transaction) 1.60 EUR/CHF per 1 € cent on EBITDA in CHF 2009: -1.6 million -1.85 million 2012: -2.1 million -25% 2014: -1.8 million -31% 2015: -1.6 million 2020: -1.4 million 1.20 EUR/CHF -8% R

  11. Slide 11: CPH: EUR/CHF trends and purchasing power parity (PPP)

    CPH strategy and business development CPH: EUR/CHF trends and purchasing power parity (PPP) Currency impact (transaction) per 1 € cent on EBITDA in CHF: 2007: -1.6 million 2009: -1.6 million 2012: -2.1 million 2014: -1.8 million 2015: -1.6 million 2020: -1.4 million Difference in currency vs. purcha

  12. Slide 12: The CPH Group EBIT and currency impact

    CPH strategy and business development The CPH Group in CHF million1) 60 56.6 15% 2009 to 2015: 51.6 40 10%  Earnings improvements through 3.3% 24.7 10.8% structural adjustments and productivity 20 1.2% 16.0 9.7% 5% 5.3 5.9 2.9 increases were more than nullified by 5.5% 0 0% appreciation of the Swis

  13. Slide 13: Paper: net sales and EBIT

    CPH strategy and business development Paper in CHF million -1% p.a. -3% p.a. 400 293 15%  Swiss franc appreciated by around 40% 314 314 314 301 against the euro between 2009 and 306 300 261 264 10% 4.0% 248 246 11.8% 2015 (from 1.50 EUR/CHF to 1.05 218 10.0% 210 5% EUR/CHF); pressure on sales and 2

  14. Slide 14: Paper: Western European newsprint supply/demand trends

    CPH strategy and business development Paper: Western European newsprint supply/demand trends Newsprint demand development 10 000 Up to 2001: 9 000  Growth in demand 8 000 in thousand tonnes 2001 to 2008: 7 000  Stagnant demand 6 000 2009: recession and 2009 to date 5 000  Structural decline in de

  15. Slide 15: Paper: predatory competition in W. European newsprint market

    CPH strategy and business development Paper: predatory competition in W. European newsprint market Key features of the paper market:  Little scope for product differentiation (commodity)  Geographically limited markets (logistics)  High fixed costs (depreciation)  Volume market (economies of sca

  16. Slide 16: Paper: EBIT and market features

    CPH strategy and business development Paper in CHF Key features of the paper market: million  Geographically limited markets 40 30.1 34.7 15%  Little scope for product differentiation 30 10%  High fixed costs (depreciation) 20 13.7 12.5  Volume market (economies of scale) 11.8% 5% 10 5.2% 10.0%

  17. Slide 17: Chemistry: net sales and EBIT

    CPH strategy and business development Chemistry in CHF 3% p.a. -2% p.a. million*  Swiss franc appreciated by around 40% 100 79 10% 75 78 73 against the euro between 2009 and 80 72 67 69 5% 2015 (from 1.50 EUR/CHF to 1.05 62 62 63 7.7% 59 60 6.3% 60 5.1% 5.6% EUR/CHF); pressure on sales and 2.3% 0%

  18. Slide 18: Chemistry: internationalization (production and sales)

    CPH strategy and business development Chemistry: internationalization (production and sales) 2009 2020 CPH presentation, Investors’ Day, 14 June 2021 in Perlen 18

  19. Slide 19: Chemistry: sales and distribution partners in 2020

    CPH strategy and business development Chemistry: sales and distribution partners in 2020 Rüti Tokyo Louisville Shanghai Bahrain Medical oxygen (direct) Industrial gas (direct) Singapore Chemical & energy São Paulo Technical desiccants Specialty zeolites Gels Deutero (NMR) -> laboratory equipment dis

  20. Slide 20: Chemistry: EBIT and benchmark

    CPH strategy and business development Chemistry in CHF Benchmark million * 6.1 4.4 4,6  Zeochem 3.8 5 1.6 7.7% 5% EBITDA margin: 12.9% (2020) 5.6% 6.3% 5.1% -3.6% 0.0% -3.6% -2.9%  Chemistry companies CHF 80-100 million 0 0% -6.6% 2.3% EBITDA margin: 11.5% (2019) 0,0 -9.1% -2.2 -2.2 -1.8 -5% -5 -1

  21. Slide 21: Packaging: net sales and EBIT

    CPH strategy and business development Packaging in CHF million 8% p.a.  Swiss franc appreciated by around 40% 200 20% against the euro between 2009 and 2015 2% p.a. 162 153 153 (from 1.50 EUR/CHF to 1.05 EUR/CHF); 150 130 15% 116 118 119 pressure on sales and earnings 98 102 106 107 110 100 13.3% 1

  22. Slide 22: Packaging: production and distribution partners in 2020

    CPH strategy and business development Packaging: production and distribution partners in 2020 Worldwide - 5 production sites (blue, top) and - 11 slitting and distribution partners (grey, bottom/right) CPH presentation, Investors’ Day, 14 June 2021 in Perlen 22

  23. Slide 23: Packaging: internationalization (sales/representatives 2020)

    CPH strategy and business development Packaging: internationalization (sales/representatives 2020) Sales presence in 85 countries through - global key account management and - 20 regional sales managers Sales via local agents in over 40 countries Pins with flags: production sites CPH presentation, I

  24. Slide 24: Packaging: profitability development

    CPH strategy and business development Packaging in CHF million Profitability development 25 14%  Substantial increases in EBIT and 21.6 EBIT margin from breakeven 12% 20 17.3 10% (2009/2010) to currently 13.3% (2020) 15.4 15 13.3% 8% 9.0 9.6 10.1% 11.3% 6% 10 3.6%  Consistent focus on the pharmace

  25. Slide 25: CPH: enterprise value

    CPH strategy and business development CPH: enterprise value Enterprise value development 2009-2020 Paper Paper • Structural decline in demand Share price trends • Predatory competition CPH Chemie + Papier Holding AG Chemistry Chemistry Average price: CHF 62.20 per share (2010-2020) • Successful turn

  26. Slide 26: Summary

    CPH strategy and business development Summary All three of CPH’s business divisions achieve profitability margins that are among the best in their markets. Chemistry and Packaging (differentiation strategy)  Internationalization:  Establishment and consolidation of an international distribution or

  27. Slide 27: CPH: dividend policy

    CPH strategy and business development CPH: dividend policy Distributions 2016 2017 2018 2019 2020 Distribution per share (in CHF) 0.65 0.65 1.801 1.802 1.803 Distribution yield (in %, as of 31.12) 1.6 1.2 2.2 2.3 2.5 1 Including special dividend of CHF 0.50 2 Nominal value reduction 3 Of which CHF 0

  28. Slide 28: CPH: target financial KPIs

    CPH strategy and business development CPH: target financial KPIs  Organic net sales growth of over 3% a year  EBITDA margin of over 12%  Equity ratio of over 50%  Liquidity of at least CHF 30-50 million  Annual operating investments of CHF 20-25 million CPH presentation, Investors’ Day, 14 June

  29. Slide 29: The CPH share: an attractive investment case

    CPH strategy and business development The CPH share: an attractive investment case  Leading competitive positions in three industrial sectors with three distinct brands  Cost leader in the predatory newsprint and magazine paper market and Switzerland’s biggest recovered paper recycler  Expansion

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