Skan Group Ag · SIX:SKAN
Skan — H1 2022 Earnings Presentation
22 slides from Skan's earnings presentation, Aug 23, 2022
Slide 1: Presentation of the HY 2022 Financial Results
SKAN Group AG Presentation of the HY 2022 Financial Results 23 August 2022
Slide 2: Disclaimer
SKAN Disclaimer THIS PRESENTATION AND ITS CONTENTS ARE CONFIDENTIAL AND ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, CANADA, AUSTRALIA, JAPAN OR ANY JURISDICTION WHERE SUCH DISTRIBUTION IS UNLAWFUL. Th
Slide 3: Agenda
SKAN Agenda 1. Overview of HY 2022 Thomas Huber (CEO) 2. 3. 4. 23 August 2022 SKAN Group AG Presentation of the HY 2022 Financial Results 3
Slide 4: Highlights of the first half year
SKAN Highlights of the first half year Record-high order intake in the first half of 2022 in both business segments. Order Intake Net Sales This confirms the continuation of market growth and our leading positioning as in CHF million in CHF million high value isolator supplier. Double digit net sale
Slide 5: Good operational progress despite macroeconomics
SKAN Good operational progress despite macroeconomics Organization was able to manage a double-digit organic growth despite the current macroeconomic environment. Significantly reduced impact in supply chain delays by changes in the manufacturing process, increased power in procurement as well as ra
Slide 6: Agenda
SKAN Agenda 1. 2. Financial Results HY 2022 Burim Maraj (CFO) 3. 4. 23 August 2022 SKAN Group AG Presentation of the HY 2022 Financial Results 6
Slide 7: Strong order intake momentum
SKAN Strong order intake momentum Order intake Order intake by regions Comments (CHFm) (CHFm) Order intake grew by +67.9% y-o-y 1.5x 2.2x Strong order intake momentum translating into a strong book-to-bill ratio, 7.6 reflecting favorable market momentum 263.3 The growth is significantly impacted by
Slide 8: Stable growth in net sales and record order backlog
SKAN Stable growth in net sales and record order backlog Net sales Order backlog Comments (CHFm) (CHFm) Net sales grew by +18.5% y-o-y 367.4 Both segments contributed to the growth rate, where S&C grew on a faster pace with 20% compared to 17.9% for E&S In a regional perspective, the European 120.9
Slide 9: Cost management and margin development
SKAN Cost management and margin development Expenses EBITDA Comments (CHFm) (CHFm and margin in %) +96 +90 EBITDA margin decreased to 8.8% which Y-o-Y is mainly driven by the non- linearity of -13.1% project sales & margin recognition, higher 102.0 120.9 material & logistic cost, personnel and other
Slide 10: Segment Equipment & Solutions (E&S)
SKAN Segment Equipment & Solutions (E&S) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) Order intake growth in E&S 204.5 5.3% primarily driven by customized 340.5 75.0% 74.6% 9.1% long-term projects. Positive impact on order intake Y-o-Y Y-
Slide 11: Segment Services & Consumables (S&C)
SKAN Segment Services & Consumables (S&C) Order intake Net sales EBITDA Comments (CHFm) (CHFm and as of % of total net sales) (CHFm and margin in %) The relatively low growth in 21.6 19.2% order intake is attributable to the 26.9 25.0% 25.4% 24.7% fact that commissioning at customers was delayed and
Slide 12: Negative NWC due to significant order intake growth
SKAN Negative NWC due to significant order intake growth Cash flow Net-working-capital (NWC) Comments (CHFm) (CHFm and in %) High operating cash flow compared to first half 2021 mainly impacted by the -0.15 significant increase in advance payments 170.0 -12.0 -31.7 from customers driven by the high
Slide 13: Strong balance sheet & finance structure
SKAN Strong balance sheet & finance structure Balance sheet as of 30th June 2022 Comments (CHFm) Strong net cash position of 369.4 369.4 CHF 106.5m as of 30th June 2022 and is thus very well positioned to finance future growth In order to avoid negative interest rates, Other current assets(1) Other
Slide 14: Strong value creation of project business in HY2
SKAN Strong value creation of project business in HY2 General value creation structure Net sales evolution of projects Comments (in % per project milestone) (in % of the project phase) Net sales growth and profit recognition is EBIT realisation Value creation Cash-In ~40% of the planned net ~60% of
Slide 15: Agenda
SKAN Agenda 1. 2. 3. Outlook 2022 Thomas Huber (CEO) 4. 23 August 2022 SKAN Group AG Presentation of the HY 2022 Financial Results 15
Slide 16: Market and business outlook
SKAN Market and business outlook General development of market trends: Market growth expected to remain high in the coming years. Development of the (bio)pharmaceutical industry and shift towards the superior isolator technology as main drivers. In HY2 we expect to continue to increase market share
Slide 17: SKAN resilient to current crisis
SKAN SKAN resilient to current crisis No major impact by current “international crisis” on SKAN: Ukraine SKAN has no direct material exposure to Ukraine, Russia or Belarus, and is not impacted by sanctions or potential loss of markets. Although the global impact on energy cost will impact the price
Slide 18: Group's growth strategy
SKAN Group’s growth strategy SKAN Objectives: Continue growth track-record Increase recurring revenue base Expand profitability 1 2 Expand addressable market 3 Increase exposure to after- 4 Accelerate digital Fortify market leadership towards integrated process market services & transformation syste
Slide 19: Guidance
SKAN Guidance Metric 2022 Targets (1) Mid-Term Outlook Group net revenue growth Mid- to upper teens Mid- to upper teens Segment net revenue growth(2) E&S S&C E&S S&C Gradually increase profitability level to upper EBITDA margin 13 - 15% teens in the mid-term. Potential for further increase beyond mi
Slide 20: Questions and discussions
SKAN Agenda 1. 2. 3. 4. Questions and discussions 23 August 2022 SKAN Group AG Presentation of the HY 2022 Financial Results 20
Slide 21: Together always one step ahead!
SKAN Together always one step ahead! 21
Slide 22: Abbreviations and Definitions
SKAN Abbreviations and Definitions Alternative Financial Performance Measures (APM) EBITDA: Operating result (EBIT) plus depreciation, amortisation. Net working capital (NWC): Total current assets (excluding cash and cash equivalents) minus trade payables, advance payments from EBITDA margin: EBITDA