Gerresheimer Ag · XETR:GXI
Gerresheimer — Q3 2018 Earnings Presentation
24 slides from Gerresheimer's earnings presentation, Oct 11, 2018
Slide 1: Q3 2018 Earnings Presentation
Q3 2018 Earnings Presentation Rainer Beaujean, Speaker of the Management Board and CFO October 11, 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or
Slide 3: Agenda
Agenda 1. Q3 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix Q3 2018 Earnings 3
Slide 4: Continuing to lay the groundwork for our new Advanced Technologies Division (GAT)
Continuing to lay the groundwork for our new Advanced Technologies Division (GAT) Plastics & Devices Primary Packaging Glass Advanced Technologies (P&D) (PPG) (GAT) Dedicated to developing and producing intelligent drug delivery systems and value added devices Contract Design Manufacturing for the e
Slide 5: Strong revenues performance in Q3 2018 as expected; network charges and macro factors impact profitability
Strong revenues performance in Q3 2018 as expected; network charges and macro factors impact profitability Strict monitoring of all business and macro drivers Q3 2018 Financials Markets & Macro Operations Strong revenues increase YoY Weaknesses in particular of Brazilian Sensile Medical integration
Slide 6: Micro Pump for Parkinson's treatment from Sensile Medical received European CE declaration of conformity
Micro Pump for Parkinson’s treatment from Sensile Medical received European CE declaration of conformity Global market Selected Lead & Design phase Registration with drug Approved by drug Customer Therapeutic area size, in EUR, Supplier Feasibility (if disclosed) including value partners examples au
Slide 7: Key operational focus in the short and mid term spans across all Divisions and regions
Key operational focus in the short and mid term spans across all Divisions and regions Horsovsky Tyn, new Inhalation contract SOME EXAMPLES Bünde, Syringes Emerging markets Brazil, China and India Chicago Upcoming furnace overhaul and upgrade in Q4 18 Immediate capacity expansion groundwork required
Slide 8: Agenda
Agenda 1. Q3 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix Q3 2018 Earnings 8
Slide 9: Organic revenues growth of 7.8% in Q3 2018 or 3.5% for the first nine months of 2018
Organic revenues growth of 7.8% in Q3 2018 or 3.5% for the first nine months of 2018 FXN1 growth YoY: +8.8% EUR m Organic growth YoY: +7.8% FXN1 14.5 0.2 360.9 + 3.5 364.4 11.2 335.0 Q3 2017 Revenues FXN Δ P&D Δ PPG Δ Internal Sales Q3 2018 Revenues FXN Δ GAT Q3 2018 FXN excl. GAT P&D Q3 2018 perfor
Slide 10: FXN Adj. EBITDA slightly up year-on-year excluding GAT and network charges
FXN Adj. EBITDA slightly up year-on-year excluding GAT and network charges EUR m FXN1 2.1 79.5 78.2 76.1 (0.6) (0.2) (1.4) (2.0) Q3 2017 Δ P&D Δ PPG Δ HQ Q3 2018 Network Δ GAT Q3 2018 Adjusted EBITDA Adjusted EBITDA charges related Adjusted EBITDA FXN FXN excl. to PPG FXN network charges and GAT P&D
Slide 11: FX-Impact of EUR 14.2m on Q3 2018 Revenues and EUR 3.0m on Adjusted EBITDA
FX-Impact of EUR 14.2m on Q3 2018 Revenues and EUR 3.0m on Adjusted EBITDA Group Q3 2018 review EUR M Q3 2018 Q3 2017 Change in % Revenues 353.7 331.5 +6.7% - of which FX effect -10.7 -3.5 N.A. Adj. EBITDA 73.71 77.6 -4.9% - of which FX effect -2.4 -0.6 N.A. - Adj. EBITDA margin % 20.91 23.4 -250bps
Slide 12: Adjusted net income after non-controlling interest slightly better year-on-year
Adjusted net income after non-controlling interest slightly better year-on-year EUR m 35 13.5 32.0 31.3 30 26.3 (0.5) 25 3.9 19.0 20 (0.7) 1.8 (3.9) 15 10 (5.0) (3.4) 5 0 Net Income Q3 Adj. EBITDA Depreciation Total one - off Amortization Net finance Income taxes Net Income Q3 Total one-off Adjusted
Slide 13: Net debt and leverage impacted by acquisition of Sensile Medical
Net debt and leverage impacted by acquisition of Sensile Medical EUR M AUG 31, 2018 NOV 30, 2017 AUG 31, 2017 CHANGE IN %2 Total assets 2,651.1 2,444.1 2,255.9 +8.5% Equity 824.6 789.5 750.7 +4.4% Equity ratio 31.1% 32.3% 33.3% -120bps Net working capital 233.7 185.7 223.9 +25.9% NWC in % of LTM rev
Slide 14: Agenda
Agenda 1. Q3 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix Q3 2018 Earnings 14
Slide 15: 2018 Outlook
2018 Outlook FY 2018 FY 2017 EXCL. SENSILE MEDICAL GROUP METRICS GROUP METRICS Revenues (FXN1) Approx. EUR 1.38bn to EUR 1.4bn EUR 1,348.3m Adj. EBITDA (FXN1) Approx. EUR 305m to EUR 315m EUR 307.23 Depending on the degree of advancement reached with our Inhalation growth project and on macro factor
Slide 16: Looking ahead
Looking ahead Systematic execution of strategic priorities: Foundation of the Advanced Technologies Division underpins ambition to bring intelligent drug delivery systems and value added devices for the entire Gerresheimer Group, under an innovation umbrella Clear identification of operational chall
Slide 17: Agenda
Agenda 1. Q3 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix Q3 2018 Earnings 17
Slide 18: Development of net working capital
Development of net working capital AUG 31, 2018 NOV 30, 2017 AUG 31, 2017 EUR M EUR M EUR M Inventories 176.3 148.4 163.5 thereof prepayments made 5.4 2.1 5.1 Trade receivables 245.3 242.7 221.6 Trade payables 152.1 176.3 119.1 Payments received 35.8 29.1 42.1 Net working capital 233.7 185.7 223.9 A
Slide 19: Development of inventories
Development of inventories AUG 31, 2018 NOV 30, 2017 AUG 31, 2017 EUR M EUR M EUR M Raw materials, consumables and supplies 57.8 49.9 51.5 Work in progress 18.0 15.0 20.5 Finished goods and merchandise 95.1 81.4 86.4 Prepayments made 5.4 2.1 5.1 Inventories 176.3 148.4 163.5 Q3 2018 Earnings 19
Slide 20: Technical guidance: EPS
Technical guidance: EPS ESTIMATED IMPLICATIONS ON MODELLING TOPIC STATUS QUO FOR FY 2018 and FY 2019 + Revaluation of deferred tax assets US tax reform, the Tax Cuts and Jobs Act passed on December 22, 2017 Triggered a.o. immediate revaluation of Positive one-off effect for the financial year 2018 o
Slide 21: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0.85 1.05 1.10 Dividend yield 1.5% – 1.8% 1.9% 1.7% 1.4% 1.7% 1.2% 1.5% 1.6% Payout ratio 22% – 26% 25% 25%1 23% 26% 25% 25% 27% Share price high 38.20 27.05 29.85 36.62 41.34 50.
Slide 22: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions ABBREVIATIONS AND DEFINITIONS Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 23: Financial calendar and contact details
Financial calendar and contact details PRELIMINARY FINANCIAL CALENDAR February 14, 2019 Annual Report Financial Year 2018 April 11, 2019 Interim Report 1st Quarter 2019 July 11, 2019 Interim Report 2nd Quarter 2019 October 10, 2019 Interim Report 3rd Quarter 2019 CONTACT DETAILS Name Corporate Inves
Slide 24: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.