Monbat Ad · BSESOF:MONB
Monbat Ad — Monbat Group — Investor Day (September 2019)
19 slides from Monbat Ad's investor day presentation, Sep 26, 2019
Slide 1: Investors Day Performance Update
INVESTORS DAY PERFORMANCE UPDATE Monbat Group 26th of September 2019
Slide 2: Agenda
Agenda § YTD August Group Results; § Year End Forecast; § Long term performance expectations – preliminary update of the 5Y Business Plan; § Strategic investment projects – portfolio review; § Status of corporate bond utilization; § Q&A 26 September 2019
Slide 3: Current results: EBITDA bridge year to year
Current results EBITDA (cont.operations) bridge on a Y-t-Y basis Year to Year EBITDA Breach Forecast (2019 vs 2018) th. EUR 25,000 129 253 -166 -1,470 4,382 20,000 18,873 Worst case 19 600 3,291 15,000 12,454 10,000 5,000 0 YE 2018 Normalized* Batteries Division Recylcing Divison - Recylcing Operati
Slide 4: Current results: EBITDA bridge budget vs forecast 2019
Current results EBITDA (cont.operations) bridge b/w budget and forecast 2019 Year to Year EBITDA Breach Forecast (2019 vs 2018) th. EUR 25,000 20,599 2,858 -3,011 -515 -142 -269 20,000 -646 18,873 Worst case 19 600 15,000 10,000 5,000 0 YE 2019 Initial Budget Batteries Division Recylcing Divison - R
Slide 5: Rolling 5Y Business Plan
Rolling 5Y Business Plan Core business – re-gaining the organic growth Measure 2017 Actual 2018 Actual 2019 Updated 2020 2021 2022 2023 CORE BUSINESS - ORGANIC GROWTH Volumes Batteries Pcs 2,567,548 2,866,725 3,194,981 3,711,581 4,027,729 4,345,476 4,487,340 Volume Pieces Growth % 11.65% 11.45% 16.1
Slide 6: Organic growth: key growth drivers
Rolling 5Y Organic growth Key growth drivers 50 16,9m EUR +0,5 1.4 (1.1) (2.0) 40 5.0 1.6 0.4 EBITDA (EURmm) +0,5 1.7 36.7 30 5.2 3.9 20 19,6 10 0 2019 1 2 3 4 5 6 7 8 9 2023 1. Additional group synergies from the acquisition of the recycling plant in Italy – EUR 3.9mm 2. Starter LoB - volume increa
Slide 7: Organic growth: key growth drivers (continued)
Rolling 5Y Organic growth Key growth drivers 50 16,9m EUR +0,5 1.4 (1.1) (2.0) 40 5.0 1.6 0.4 EBITDA (EURmm) +0,5 36.7 5.2 1.7 30 3.9 19,6 20 20.6 10 0 2019 1 2 3 4 5 6 7 8 9 2023 3. Stationary LoB - Volume increase and production 4. Commercial fleet LoB - volume increase and production overheads 5.
Slide 8: Organic growth: years pace setting
Rolling 5Y Organic growth 5 Years pace setting Subject to moderation - Group Annual Budgeting cycle +0,5 +0,5 40 0.8 36.6 It is expected that calibration might take place 4.6 2.8 7.8 (EURmm) 30 only between the periods 2020 and 2021 as part EBITDA 19,6 20 of the Group annual budgeting process. 20.6
Slide 9: Inorganic growth: strategic project domains
Rolling 5Y Inorganic growth Strategic project domains 33m EUR -4 623 92 482 27 500 64 982 287 1 400 63 295 13 200 13 500 36 595 ORGANIC GROWTH Focused diversification STRATEGIC ARENAS Scaling core business via acquisition Product innovation in lithium-ion batteries (PHASE Niche diversification in re
Slide 10: Inorganic growth: strategic projects portfolio
Rolling 5Y Inorganic growth Strategic projects portfolio STRATEGIC INVESTMENT PROJECTS EBITDA CONTRIBUTION Ranking UPSIDE INCURRED BOND NEW TIME to ARENAS PROJECTS Stage POTENTIAL NOTE 2019 2020 2021 2022 2023 INVESTMENT UTILISATION INVESTMENT BENEFIT Value Enterprise *+* Strategic fit contribution
Slide 11: Strategic projects replacement value
Rolling 5Y Organic growth Strategic projects replacement value REPLACEMENT VALUE CURVE - STRATEGIC 2019 2020 2021 2022 2023 PROJECTS ROLLING MASTER PLAN 2019 2 600 9 200 19 600 29 730 33 010 STRATEGIC PROJECTS - EBITDA 70 4 356 15 737 20 887 28 387 VARIENCE TO ROLLING -2 530 -4 844 -3 863 -8 843 -4
Slide 12: Corporate bond utilization
Corporate bond utilization Date 20.07.2018 Amount Raised 28 015 000 20.07.2018 Finance Costs 222 415,06 Net Amount of Proceeds 27 792 585 26.06.2018 Capitalization Monbat Holding GmbH 5 400 000 Capitalization Monbat Italy via Monbat 05.12.2018 Recylcing Bulgaria 8 000 000 25.03.2019 Capitalization M
Slide 13: Appendix
APPENDIX 26 September 2019
Slide 14: Year end 2018 Forecast
Year end 2018 Forecast ALL AMOUNTS IN EUR'000 2019 YEAR END Forecast vs 2018 and 2017 YEAR END ACTUAL Variance abs 2017 Actual 2018 Actual Audited 2019 August Actual + Variance abs (2019 vs Audited Normalized * YE Forecast (2019 vs 2018) Variance % 2017) Variance % BUSINESS SEGMENT - LEAD-ACID BATTE
Slide 15: Year end forecast 2019
Year end forecast– 2019 Guidelines 2019 Year END Estimate - Relatively stable and slightly increasing LME index in Q3 2019. Nevertheless, due to prudency the revised budget has been prepared with LME level of 1,800 EUR per tonne which is also the level of Business LME used in the preparation of the
Slide 16: Performance Steering
PERFORMANCE STEERING Period: August 2019 EBITDA & NET PROFIT YTD August 2019 Business Plan Actuals Y-t-Y Performance Gap to BP 2019 VALUE (EUR) YTD 2018 YTD 2019 YTD 2019 BP Y-t-Y % Gap to BP % August August August (YTD BASIS) Sales 97,543 107,625 103,455 10,082 10.3% 4,170 4.0% Net Profit before ta
Slide 17: EBITDA Battery Division YTD August 2019
EBITDA BATTERY DIVISION YTD August 2019 Business Plan Actuals Y-t-Y Performance Gap to BP 2019 VALUE (EUR) YTD 2018 YTD 2019 Y-t-Y YTD 2019 August % Gap to BP % August August (YTD BASIS) Volumes Battery Division (batteries pcs) 1,689,253 1,982,365 2,071,520 293,112 17.4% (89,155) -4.3% Revenue Batte
Slide 18: Monbat Group performance highlights
Monbat Group performance highlights YTD August 2019 YTD August 2019 PERFORMANCE HIGHLIGHTS COMPOSITION - Positive sales volume variance against PY due to - Overall lower LME YTD August 2019 in comparison to YTD August 2018. battery sales increase with app. 300 K pieces Market Relatively stable index
Slide 19: LME Movement (2016-2019)
LME Movement ( 2016-2019) MONBAT GEaROnUE [Chart Area } Area LME Price Development EUR/ton (2016-2019) 2500 2000 ——— 1500 1000 500 oO Jan Feb Mar Apr May June: July Aug Sep Oct Nov Dec 2019 2018 2017 2016 Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec 2019] 1,742 1,814 1,816 1,732 1,624 1,674 1,7