Semperit Ag Holding · VIE:SEM
Semperit — Q1 2023 Earnings Presentation
38 slides from Semperit's earnings presentation, May 10, 2023
Slide 1: Semperit Group Q1 2023 Investor Presentation
SEMPERIT GROUP Q1 2023 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 10 May 2023 1
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance & Strategy (p.13) Outlook (p.24) Appendix (p.28) 2 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 3: Strategic and operational highlights Q1 2023
Strategic and operational highlights Q1 2023 Industrial Sector stable with slight increases – against the backdrop of lower order intake and higher cost levels – effects of inventory adjustments in the markets not yet visible in the results Medical business under responsible stewardship before sale
Slide 4: Rico Group: Excellent strategic fit for Semperit
Rico Group: Excellent strategic fit for Semperit a EUR ~90m turnover company Expanding elastomer competence through RICO Group is a leading global specialist in new material know-how in liquid silicone ~500 the production of liquid silicone-based employees solutions Adding global technology leadersh
Slide 5: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance & Strategy (p.13) Outlook (p.24) Appendix (p.28) 5 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 6: Industrial Sector: Stable results with revenues and EBITDA slightly above PY
Industrial Sector: Stable results with revenues and EBITDA slightly above PY Revenues in EUR m Quarterly development of EBITDA (EURm) and EBITDA margin (%) Q1’21 – Q1’23 +3.2% 41.4 20.7 171.0 176.4 17.4 17.3 14.2 15.9 16.4 32.4 130.1 15.0 15.5 30.6 12.1 26.4 25.0 23.2 20.6 20.7 17.6 Q1’21 Q1’22 Q1’2
Slide 7: Detail on Last Twelve Month (LTM) view of the Industrial Sector
Detail on Last Twelve Month (LTM) view of the Industrial Sector LTM development of Revenue (EURm) and EBITDA margin (%) 734.0 739.5 705.0 660.3 596.9 556.1 527.4 507.0 518.9 490.1 478.4 487.0 497.3 17.1 17.5 16.3 16.5 16.7 15.7 15.9 16.0 15.3 14.7 14.6 14.8 14.7 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q
Slide 8: Semperflex Q1 2023
Semperflex Q1 2023 Customer destocking and lower order intake 29.0% 27.3% EBITDA in EUR m 23.3% 24.5% 22.5% 23.0% EBITDA margin 19.3% 20.4% 18.1% Semperflex 27.3 19.6 21.5 16.7 12.3 13.9 11.2 13.9 13.9 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q1 2023 vs. Q1 2022 Revenue 72 Most of Sem
Slide 9: Semperseal Q1 2023
Semperseal Q1 2023 Impact of economic slowdown in construction business 14.7% EBITDA in EUR m 12.6% EBITDA margin 10.0% Semperseal 7.9% 8.3% 4.2 6.5% 4.1 3.8 5.0% 3.2 2.4 3.0% 2.4 1.6 0.9 -1.2 -4.1% Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q1 2023 vs. Q1 2022 Revenue Tight market with
Slide 10: Sempertrans Q1 2023
Sempertrans Q1 2023 Tangible turnaround 3.7 22.7% EBITDA in EUR m 1.0 EBITDA margin 16.7% 12.8% 17.0% Sempertrans 4.7 9.2% 1.0 0.8 7.3 3.8% 3.3% 0.4 4.5% 5.3 4.9 1.4% 3.7 1.3 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 1 Q4’22 Q1’23 Q1 2023 vs. Q1 2022 Positive developments of project pipeline – Sem
Slide 11: Semperform Q1 2023
Semperform Q1 2023 Results impacted by price increases and changed product mix 18.3% 17.2% EBITDA in EUR m 15.4% 15.2% 13.9% 14.1% EBITDA margin 12.2% Semperform 10.3% 9.9% 5.0 5.0 3.6 4.1 3.1 3.3 3.2 2.8 2.5 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q1 2023 vs. Q1 2022 Revenue Order b
Slide 12: Medical Sector / Sempermed segment Q1 2023
Medical Sector / Sempermed segment Q1 2023 Excess capacity, reduced demand and further inventory clean-up impact volumes 54.6% 57.7% 45.9% EBITDA in EUR m Sempermed EBITDA margin 21.7% 115.3 12.6% 105.3 2.5% 56.9 13.3 23.7 -19.6 -11.4 -11.6 2.2 -21.5% -26.9% -29.3% 1 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2
Slide 13: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance & Strategy (p.13) Outlook (p.24) Appendix (p.28) 13 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 14: Q1 2023 Financial Highlights
Q1 2023 Financial Highlights • Stable top line of continued operations • Results slightly higher despite macro economic headwinds • Margins increasingly under pressure from cost inflation • Positive earnings after tax • Focus on cost control and adjustment of overhead base with a view on • Digitalis
Slide 15: Two new financing arrangements since March 2023
Two new financing arrangements since 31 March 2023 EUR 250m EUR 110m General Corporate Purpose Financing Lighthouse transaction with Czech export credit agency (EGAP) • EUR 150m term loan for acquisition of RICO • DH5 expansion and general corporate • EUR 100m Revolving Credit Facility purposes Cons
Slide 16: Overview of key financial KPIs, Q1 2022 vs. Q1 2023
Overview of key financial KPIs, Q1 2022 vs. Q1 2023 (as reported) Q1 2022 Q1 2023 Δ Q1‘22/‘23 Revenues, in EUR m 181.5 185.2 2.0% EBITDA, in EUR m 20.3 20.8 2.7% EBITDA margin, in % 11.2 11.2 0,0PP EBIT, in EUR m 12.7 13.2 4.2% EBIT margin, in % 7.0 7.1 0.1PP Earnings after tax, in EUR m 1
Slide 17: Revenue: Segment reporting & reconciliation for continued business
Revenue: Segment reporting & reconciliation for continued business -22% 277.0 14.7 2.6 -7.2 -4.7 8.8 224.8 -39.6 216.0 -66.5 185.2 +3.2% -48.2% -9.0% -12.7% +52.0% +9.8% Industrial Sector Medical Sector 1 Q1’22 Semperflex Semperseal Sempertrans Semperform Sempermed Q1’23 Adjustments Continued and Di
Slide 18: Strong performance in Industrial against steep decline in Medical
Strong performance in Industrial against steep decline in Medical in EUR m -68% 1.7 6.1 36.5 -2.9 -0.8 9.0 20.8 -24.9 11.7 0.1 11.8 -4.1 Q1’22 Semperflex Semperseal Sempertrans Semperform Sempermed Corporate Q1’23 Adjustments Continued Discontinued Continued = Segments’ on Group and operations opera
Slide 19: Major drivers of operating performance
Major drivers of operating performance in EUR million +3% 32.6 6.7 0.6 -0.5 -2.8 20.3 -29.0 20.8 -7.0 EBITDA Price Effect Volume Cost of Energy (used Logistics Personnel exp. Misc. EBITDA Sales Effect Sales materials and for production) Q1’22 purchased Q1’23 services (excl. energy) 19 Investor Prese
Slide 20: Quarterly CAPEX development 2021-2023
Quarterly CAPEX development 2021-2023 • Q1 2023 CAPEX slightly below prior-year level • Industrial will receive higher CAPEX • Outlook: FY2023 maintenance CAPEX to remain stable at EUR ~50m and an additional EUR ~50m planned for growth investments (DH5) CAPEX per segment in EUR m FY 2022: EUR 54.5m
Slide 21: Free cash flow development
Free cash flow development Operating cash flow slightly up due to positive impact from working capital management Investment cash flow lower than in previous year Free Cash Flow at EUR 7.1m in EUR m Q1 2022 240 Q1 2023 18 21 -14 -18 7 0 1 Operating cash flow Investment cash flow Free cash flow
Slide 22: Working Capital overview
Working Capital overview Components of Working Capital in EUR m 16.1%1 19.6%1 21.0%1 22.0%1 19.6%1 20.3%1 232.8 222.2 237.4 190.3 203.1 207.3 198.9 153.1 158.8 186.8 128.2 125.2 Inventories 132.6 144.1 134.5 98.8 88.9 95.9 Trade receivables -63.9 -62.2 Trade payables -953 -113.5 -118.6 -96.0 1 1 31
Slide 23: Balance sheet structure and financial profile
Balance sheet structure and financial profile (contd. operations) Balance sheet structure Financial profile as of 31 March 2023 Balance sheet 31/03/2023: EUR 848m Balance sheet 31/12/2022: EUR 843m Cash and cash equivalents at EUR 119m – Strong cash position to fend off inflationary impact and sup
Slide 24: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance & Strategy (p.13) Outlook (p.24) Appendix (p.28) 24 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 25: Management agenda 2023
Management agenda 2023 Operations: • Lower order intake in the wake of slowing demand and customer inventory adjustment • Growing price sensitivity and ongoing cost pressure, notably for personnel and possibly for energy and raw materials • Strict cost control, capacity adjustments and lean processe
Slide 26: Outlook 2023 (continued operations)
Outlook 2023 (continued operations) EBITDA at the lower end of the range of 70–90m EUR confirmed CAPEX ~ 100 m EUR for 50:50 growth and maintenance 26 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 27: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2023 Judit Helenyi, Director Investor Relations 10.05.2023 Report on Q1 2023 10.08.2023 Half-year financial report 2023 +43 1 79777 - 310 www.semperitgroup.com/en/ir 08.11.2023 Report on Q1-3 2023 Am Belvedere 10 1100 Vien
Slide 28: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance & Strategy (p.13) Outlook (p.24) Appendix (p.28) 28 Investor Presentation Q1 2023 I 10 May 2023 I Investor Relations
Slide 29: Sectors and Group: Q1 2023 vs Q1 2022
Sectors and Group: Q1 2023 vs Q1 2022 1) 2) 3) 1 Industrial 1 Sector Medical 1 Sector Semperit Group in EUR m Q1 2023 Q1 2022 % Q1 2023 Q1 2022 % Q1 2023 Q1 2022 % Revenue 176.4 171.0 +3.2% 39.6 106.1 -62.7% 185.2 181.5 +2.0% EBITDA 30.6 26.4 +15.7% -11.6 13.3 >100% 20.8 20.3 +2.7% EBITDA margin 17.
Slide 30: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q1 2022 2022 2022 2021 2021 2021 2021 2021 2022 2022 2023 adj.1) adj.2) 2) in EUR m adj. Revenue 323.1 337.7 265.3 256.1 1,182.2 277.0 293.6 259.0 228.6 1,058.2 185.2 EBITDA 122.2 125.3 76.8 37.5
Slide 31: Semperflex and Semperseal (adj. where applicable)
Semperflex and Semperseal (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 2021 2021 2021 2021 2021 in EUR m Revenue 54.7 59.7 57.7 68.4 240.5 79.8 93.9 78.5 76.6 328.8 72.6 EBITDA 12.3 13.9 11.2 13.9 51.3 19.6 27.3 21.5 13.9 82.2 16.7 EBITDA
Slide 32: Sempertrans and Semperform (adj. where applicable)
Sempertrans and Semperform (adj. where applicable) Sempertrans (Conveyor belts) Q1 Q2 Q3 Q4 FY Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 Q1 2023 adj.1) 1) 2021 2021 2021 2021 2021 adj. in EUR m Revenue 26.9 24.2 28.0 25.3 104.5 28.3 41.5 40.0 42.1 151.9 43.0 EBITDA 1.0 0.8 4.7 0.4 6.8 1.3 5.3 3.7 4.7
Slide 33: Sempermed (adj. where applicable)
Sempermed (adj. where applicable) Sempermed (Gloves) Q1 Q2 Q3 Q4 FY Q3 2022 Q4 2022 Q1 2022 Q2 2022 FY 2022 Q1 2023 2021 2021 2021 2021 2021 adj. 1) adj. 2) in EUR m Revenue 192.9 199.8 124.0 109.4 626.1 106.1 92.3 72.9 -225,4 324.2 39.6 EBITDA 105.3 115.3 56.9 23.7 301.1 13.3 2.3 -19.6 -3,8 -15.4 -
Slide 34: Key figures 2012-2022
Key figures 2012-2022 Key performance figures 2016 2017 2018 2019 2020 7) in EUR m 2012 2013 20141) 20151) 2021 2022 adj.2) adj. 3) adj. 4) adj. 5) adj. 6) Revenue 828.6 906.3 858.3 914,7 852.4 874.2 878.5 840.6 927.6 1 182.2 1 058.2 EBITDA 108.7 132.5 101,. 96,2 74.7 35.8 50.3 63.8 208.6 361.8 90.5
Slide 35: Overview price indices Butadiene
Overview price indices Butadiene Price movements for raw materials1) became highly unpredictable Price indices Butadiene as main raw material for synthetic rubber / latex 250 Ø ø 2021 ø 2022 2023 200 150 100 50 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration p
Slide 36: Overview price indices LFO-F-NWE / wire rod
Overview price indices LFO-F-NWE / wire rod Significant increase for raw material1) used in industrial segments Price index LFO-F-NWE Price index wire rod 225 200 ø 2021 Ø Ø 2023 ø 2021 Ø 2022 2023 200 175 175 150 150 125 125 100 100 75 75 ø 2022 50 50 25 25 Fuel Oil 1% Sulphur NWE FOB Cargo Price i
Slide 37: Product / market position / segment view, FY 2022
Product / market position / segment view, FY 2022 in EUR m Semperit Group 4) Industrial Sector Medical Sector Semperflex Sempertrans Semperform Semperseal Sempermed Revenue 328.8 / 31%1) 151.9 / 14%1) 111.1 / 10%1) 142.1 / 13%1) 324.2 / 30%1) EBITDA 82.2 19.7 15.1 8.3 -15.4 Employees 1,782 / 27%3) 8
Slide 38: Shareholder Structure
Shareholder Structure Shareholder structure Semperit is listed on the Vienna Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54% Primary focus of B & C is pursuing the fou