Alzchem Group Ag · XETR:ACT
Alzchem — Q1 2020 Earnings Presentation
37 slides from Alzchem's earnings presentation, May 12, 2020
Slide 1: AlzChem Group AG Q1 2020
AlzChem Group AG Andreas Niedermaier, CEO Dr. Georg Weichselbaumer, CSO May 12, 2020 2020/Q1
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 Q1/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 3
Slide 4: Highlights
HIGHLIGHTS Summary of business development Q1/2020 Financial Report FACTS & DATA • Despite COVID-19: Production, sales and earnings are stable due to diversified product portfolios and compensation possibilities • The expected very strong Creamino® growth was implemented in Q1 • BioSelect®-Products
Slide 5: Cashflow
CASHFLOW Positive free cashflow due to strong cash inflow from ongoing operations Cashflow from ongoing Cashflow from Cashflow from Net increase / decrease operations (Net cashflow) investing activity financing activity in cash and cash equivalents +8.5 -4.8 +4.6 -2.7 +1.0 -2.0 +18.9 -12.3 1-3 1-3 1
Slide 6: Requirements for successful trials
Time required for new acquisition approx. 15 months for chicken (other species longer) REQUIREMENTS FOR SUCCESSFUL TRIALS 3 MONTHS Test in a production plant • Well mixed feed • Two comparable stables (size, temperature, conditions, 3 MONTHS Evaluation and interpretation of the results animals, dise
Slide 7: Creatine has many functions in the body
Creatine has many functions in the body 7
Slide 8: Creatine learnings – Immune-support
Creatine learnings – Immune-support Creatine provides energy for macrophages INFECTION RESISTANCE Creatine improves lipid membrane density CELL WALL STRENGTH Creatine improves stress resistance MORTALITY REDUCTION Creatine maintains intestinal homeostasis GUT CELL STRENGTH 8
Slide 9: Corona changes
CORONA CHANGES Measures SEPARATION OF INCREASING THE PANDEMIC PLAN HYGIENE MEASURES REDESIGN OF WORK PLACES WORKPLACES (SPIT PROTECTION, ETC.) SEPARATION OF TRUCK DRIVERS STRESS TEST SECURING LAYERING SYSTEMS SUPPLY CHAINS DEVELOPMENT OF CANCELLATION EVENTS CORONA CRISIS SCENARIA CONTINUOUS CHANGES
Slide 10: COVID-19 effects
COVID-19 Effects AUTOMOTIVE (Airbags) SYSTEM RELEVANCE Creamino® STEEL INDUSTRY (DNA test kits) Bioselect® CREAPURE® (less training) NITRALZ® AGRO 10
Slide 11: Financial Overview Q1/2020
FINANCIAL OVERVIEW Q1/2020 Result within guidance Q1 Q1 2019 2020 AlzChem Group yoy % yoy % 2019 2020 1-3 1-3 SALES (in M€) 92.1 94.7 +2.8% 92.1 94.7 +2.8% EBITDA (in M€) 13.2 12.3 -6.9% 13.2 12.3 -6.9% EBITDA margin (in %) 14.4% 13.0% -1.4pp 14.4% 13.0% -1.4pp Earnings per Share (in €) 0.54 0.43 -2
Slide 12: Agenda
AGENDA Analyst Presentation Q1/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 12
Slide 13: 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 for
Slide 14: Basics & Intermediates Segment
BASICS & INTERMEDIATES SEGMENT Commissioning NITRALZ® supports success (M€) SALES +1.5% SALES EBITDA SALES ANALYSIS 41.7 36.9 35.9 35.5 37.8 36.0 34.2 33.0 34.4 DELTA DELTA +1.5% Q1 01 - 03 Volume -0.1% -0.1% 35.5 36.0 Price +1.3% +1.3% Currency +0.3% +0.3% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018 2018
Slide 15: 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 – Q1/2020 FINANCIAL REPORT ANALYST PRESENTATION 15
Slide 16: Specialty Chemicals Segment
SPECIALTY CHEMICALS SEGMENT Increasing Creamino® volumes with slight price pressure SALES SALES EBITDA SALES ANALYSIS +4.3% 53.9 56.8 49.8 48.9 50.1 51.7 51.0 47.3 52.2 DELTA DELTA +4.3% Q1 01 - 03 Volume +3.5% +3.5% 52.2 50.1 Price 0.0% 0.0% Currency +0.7% +0.7% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2018
Slide 17: 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 18: Other & Holding Segment
OTHER & HOLDING SEGMENT Solid growth of service sales SALES SALES EBITDA SALES ANALYSIS -1.0% 7.0 6.6 6.6 6.8 6.7 6.5 DELTA DELTA 6.5 6.3 6.1 Q1 01 - 03 Volume -2.7% -2.7% Price +1.7% +1.7% Currency 0.0% 0.0% -1.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 6.6 6.5 2018 2018 2018 2018 2019 2019 2019 2019 2020 -11.2
Slide 19: Balance Sheet – Equity back to 23.9%
BALANCE SHEET AlzChem Group AG (M€) – Equity back to 23,9 % ASSETS LIABILITIES 342.6 338.9 342.6 338.9 61.3 81.1 Equity 186.3 183.0 Other non-current assets 86.1 82.9 Other non-current liabilities 25.7 19.7 Deferred taxes for pension provision 134.6 113.6 Pension provision 74.6 74.5 Inventories 39.3
Slide 20: Implementing operating targets
IMPLEMENTING OPERATING TARGETS Focus on the key growth drivers IMPLEMENTATION OF THE ESTABLISH FIRST SALES CREAMINO® GROWTH OF LIVADUR® • Increase number of trials worldwide • Training pharmacists • Reinforce technical staff – to train • Push various promotion activities distributors more intensivel
Slide 21: Outlook 2020
OUTLOOK 2020 Moderate to strong increase sales and EBITDA forecast (M€) SALES EBITDA COMMENTS • Start of the expected Creamino growth in second half of the year after further successful feeding moderate to trials strong increase • Reinforcement of custom manufacturing 376.1 moderate • Further growth
Slide 22: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2020 MAY 19 Annual General Meeting 2020 – Virtual 2020 AUG 11 Half-Year Financial Report 2020 2020 SEP 22 Berenberg and Goldman Sachs Conference, Munich 2020 NOV 11 Quarterly Statement 3rd Quarter 2020 2020 NOV 16 - 18 Eigenkapitalforum, Germany 2020 NOV 30 Berenber
Slide 23: Sales
M€ M€ M€ 1,627 ~95 ~12 ~8 EMPLOYEES SALES EBITDA OPERATING CASHFLOW Other and Holding ALZCHEM 6.9% PRODUCTS ARE SOLD Basics WORLDWIDE 38.0% & Intermediates SALES YTD 2020/03 INNOVATION SINCE 55.1% 1908 Specialty Chemicals All financial indicators relating to YTD 2020/03 figures
Slide 24: Thank you
CONTACT THANK YOU VIELEN DANK FÜR Investor Relations T +49 8621 86-2888 IHREYOUR FOR AUFMERKSAMKEIT! ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 25: Agenda
AGENDA Analyst Presentation Q1/2020 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP 25
Slide 26: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP (IN T€) 31.12.2019 31.03.2020 Deviation ALZCHEM GROUP (IN T€) 31.12.2019 31.03.2020 Deviation Intangible assets 1,541 1,410 -131 -8.5% Share capital 101,763 101,763 0 0.0% Tangible assets 165,702 163,564 -2,137 -1.3% RETAINED EARNINGS (+) / LOSS (-) 69,294 7
Slide 27: Pension Accounting (IFRS)
PENSION ACCOUNTING (IFRS) AlzChem Group (M€) -15.59% 134.6 0.3 0.3 -0.4 -21.2 113.6 -19.7 93.9 PENSION SERVICE NET INTEREST PENSION PENSION PENSION DEFERRED PENSION IN FINANCIAL PROVISION COSTS COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31.12.2019 MENTS 31.03.2020 31.03.2020
Slide 28: Income Statement
INCOME STATEMENT AlzChem Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 ALZCHEM GROUP (IN T€) Deviation (Q1) Mrz. 19 Mrz. 20 Dev. YOY 2019 2019 2019 2019 2020 2020 2020 2020 Revenue 92,123 96,120 99,431 88,398 94,740 2,616 3% 92,123 94,740 2,616 3% Changes in inventories of finished goods
Slide 29: Income Statement
INCOME STATEMENT AlzChem Group Q1 Q1 YTD YTD ALZCHEM GROUP (IN T€) Deviation (QoQ) Deviation (YoY) 2019 2020 Mrz.2019 Mrz.2020 Revenue 92,123 94,740 2,616 2.8% 92,123 94,740 2,616 2.8% Changes in inventories of finished goods and work in progress 7,895 2,152 -5,743 -72.7% 7,895 2,152 -5,743 -72.7% O
Slide 30: Cash Flow
CASH FLOW AlzChem Group Q1 Q1 1-3 1-3 CASHFLOW (IN M€) 2019 2020 2019 2020 Consolidated earnings before taxes 7,766 6,485 7,766 6,485 Depreciation on fixed and intangible assets 4,297 5,582 4,297 5,582 Decrease in pension provisions -328 -378 -328 -378 Loss (+) / Profit (-) from the sale of non-curr
Slide 31: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group 2018 2019 2020 YTD Q1 2020 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Deviation PY (Q1) PY Actual Deviation PY (YOY) SALES T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ T€ % T€ T€ T€ % Basics & Intermediates 34,155 36,926 35,896 32,989 35,465 37,844 41,693 34,405 36,012 546
Slide 32: Executive Team
EXECUTIVE TEAM AlzChem Group AG ANDREAS NIEDERMAIER, CEO WITH ALZCHEM SINCE 1999 AREAS OF RESPONSIBILITY Finance & Controlling, Company Strategy, Investor Relations & Communication, IT, Risk Management, HR, Supply Chain Management, Legal/Patents & Trademarks KLAUS ENGLMAIER, COO DR. GEORG WITH ALZCH
Slide 33: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies SUNDSVALL (SE) TROSTBERG (GER) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE Production facilities in Germany (4) and Sweden (1) and HQ in Trostberg (GER) WALDKRAIBURG (GER) ATLANTA (USA) SHANGHAI (CN) 33
Slide 34: Fully Integrated Business Model (Verbund System)
Fully Integrated Business Model (“Verbund” System) Ability to adapt production to satisfy changing end market needs Segment Specialty Chemicals Segment Basics & Intermediates THE “VERBUND” SYSTEM • Fully integrated production network • The output of a production step serves as the basic input for th
Slide 35: Specialty Chemicals: Our Products and Markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS A feed additive for broilers and pigs Feed additive Premium brand for creatine monohydrate as a food supplement in sports nutrition Food supplements Dietary supplement with pu
Slide 36: Basics & Intermediates: Our Products and Markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS Calcium carbide-based mixtures for hot metal desulphurization Steel industry INTERMEDIATES Fuel for airbags, key production of the intermediate product Automotive BASICS & Pha
Slide 37: Key Share Data
KEY SHARE DATA Share Details as of May 8, 2020 SHAREHOLDER STRUCTURE SHARES OUTSTANDING 10,176,335 LAST CLOSING PRICE EUR 17.10 Free float [2020-05-08] 26.1% including M&G plc 7.6% LIVIA Corporate MARKET CAPITALIZATION EUR 174m Development SE 37.6% TICKER ACT WKN A2YNT3 for two na GmbH ISIN DE000A2Y