Semperit Ag Holding · VIE:SEM
Semperit — H1 2021 Earnings Presentation
39 slides from Semperit's earnings presentation, Aug 19, 2021
Slide 1: Semperit Group H1 2021 Investor Presentation
SEMPERIT GROUP H1 2021 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Petra Preining, CFO 19 August 2021 1
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance (p.13) Strategy and Outlook (p.22) Appendix (p.29) 2 Investor Presentation H1 2021 I 19 August 2021 I Investor Relations
Slide 3: Strategic and operational highlights
Strategic and operational highlights Record Group sales and earnings Most outstanding operational performance since start of the new millennium Successful restructuring Operational excellence programme has led to resilience and growth recovery during Corona pandemic Strong order book of the Industri
Slide 4: Best quarter and first half year of the new millennium
Best quarter and first half year of the new millennium • Outstanding performance of Medical Sector extended into Q2'21 • Industrial Sector: revenue up with resilient margins – mostly commodity headwinds • Operating Group EBITDA yoy improvement for 14th consecutive quarter REVENUE 58% Record top-li
Slide 5: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance (p.13) Strategy and Outlook (p.22) Appendix (p.29) 5 Investor Presentation H1 2021 I 19 August 2021 I Investor Relations
Slide 6: Industrial Sector: top-line growth but margin pressure
Industrial Sector: top-line growth but margin pressure Industrial Sector resilient against inflationary and other headwinds that, so far, only could partially be shared with customers Revenues Quarterly development of EBITDA H1’19 – H1’21 2019-2021 289.5 21.3 268.1 19.1 17.1 15.9 249.2 17.3 16.1 14.
Slide 7: Industrial Sector: raw materials headwinds
Industrial Sector: raw materials headwinds • High market demand for raw materials resulted in significantly higher material costs • Resilient operational efficiency kept margins nearly stable: EBITDA margins if adjusted for material and purchased services’ price increases would have been significant
Slide 8: Semperflex H1 2021
Semperflex H1 2021 EBITDA and margin close to strong 2019 levels 24.4% 27.2% 24.5% 22.8% 19.9% 22.5% 23.3% EBITDA in € m 20.0% 15.9% 18.1% EBITDA margin Semperflex 13.9 14.5 14.0 13.9 10.8 11.4 12.3 8.7 9.3 7.2 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 H1 2021 vs. H1 2020 Revenue
Slide 9: Sempertrans H1 2021
Sempertrans H1 2021 Ongoing corona-related disruption and price pressure impacting the business 14.2% 15.4% 13.1% EBITDA in € m 9.0% 7.6% EBITDA margin Sempertrans 5.4 5.4% 4.6 5.0 1.3 2.5% 3.8% 3.3% 1.6 2.1 0.0% 1.4 0.8 1.0 0.8 0.0 1) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 H1 2
Slide 10: Semperseal H1 2021
Semperseal H1 2021 Strongly growing construction market 14.1% 14.7% 14.7% 13.2% 12.8% 12.0% EBITDA in € m 9.8% 7.9% 7.5% Semperseal EBITDA margin 3.9 3.0% 4.2 3.4 3.3 3.2 2.9 2.5 2.4 1.7 0.6 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 H1 2021 vs. H1 2020 Market share increase conti
Slide 11: Semperform H1 2021
Semperform H1 2021 Improving order book supports top-line recovery but ongoing margin pressure 22.6% 19.6% 18.4% 17.5% 19.6% 17.7% EBITDA in € m 12.2% 12.9% 15.4% 15.2% Semperform EBITDA margin 4.8 5.0 4.0 4.1 3.5 4.0 3.6 2.7 2.5 3.1 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 H1 202
Slide 12: Medical Sector / Sempermed segment H1 2021
Medical Sector / Sempermed segment H1 2021 Record growth in revenue and operating profit continues 54.6% 57.7% 51.6% 37.5% EBITDA in € m EBITDA margin Sempermed 19.7% 115.3 105.3 83.0 0.8% 2.3% -0.1% 6.1% 44.4 -1.2% 4.8 18.2 -0.9 0.6 1.8 -0.1 Q1’19 Q2’19 Q3’19 Q4’19 1) Q1’20 Q2’20 Q3’20 Q4’20 Q1’21
Slide 13: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance (p.13) Strategy and Outlook (p.22) Appendix (p.29) 13 Investor Presentation H1 2021 I 19 August 2021 I Investor Relations
Slide 14: Financials highlights: all KPIs build foundation for future growth
Financials highlights: all KPIs build foundation for future growth Highest results of the new millennium Resilient operations against inflationary cost pressure and supply chain constraints Net cash and high liquidity Previous net debt turned around to positive net cash Capital allocation focus Grow
Slide 15: Revenue development
Revenue development in € m +58% 223.0 660.8 16.1 12.0 418.9 -10.8 1.7 +7.6% +131.4% +16.3% -17.5% +25.4% +4.0% Medical Industrial Sector Sector H1 2020 Semperflex Sempertrans Semperseal Semperform Sempermed H1 2021 Revenue 114.4m 51.1m 59.0m 43.4m 392.7m H1 2021 % change of each segment / sector ref
Slide 16: Top line growth translates into higher reported EBITDA
Top line growth translates into higher reported EBITDA Medical Sector strong - Industrial Sector resilient in € m +330% 197.6 -4.2 247.5 57.6 2.9 0.2 -4.8 -1.8 H1 2020 Semperflex Sempertrans Semperseal Semperform Sempermed Corporate H1 2021 EBITDA 57.6 23.3 6.6 6.4 8.4 23.0 -10.2 H1 2020 EBITDA 26.2
Slide 17: Overview of key financial KPIs, H1'19-H1'21
Overview of key financial KPIs, H1’19-H1'21 H1'19 H1'20 H1'21 EBITDA, in € m 39.1 57.6 247.5 EBITDA margin, in % 9.0 13.7 37.5 EBIT, in € m 20.9 112.2 224.6 EBIT margin, in % 4.8 26.8 34.0 Earnings after tax, in € m 5.8 101.7 173.9 Free Cashflow, in € m 39.8 47.1 166.9 CAPEX, in € m 21.4 11.9 18.8 1
Slide 18: CAPEX by quarter
CAPEX by quarter • CAPEX increased against 2020 low level • Sempermed maintenance investments for capacity replacement • Industry starts to invest in growth CAPEX • Outlook 2021: planned to be twice as high as low benchmark in 2020 CAPEX per segment in € m 10.2 9.2 Semperflex 2.6 8.6 1.3 Sempertrans
Slide 19: Free cash flow development
Free cash flow development Further improved results but headwinds from raw materials and shipping costs Operating CF driven by strong performance but also impacted by working capital requirements Investment CF includes money market funds shares (€ 50m) Free CF (adjusted for investments in mo
Slide 20: Working Capital overview
Working Capital overview Components of Working Capital in € m 19.5%1) 18.5%1) 17.5%1) 21.4%1) 17.5%1) 225.4 204.7 160.4 156.2 162.8 173.1 165.6 Inventories 127.4 120.5 141.1 134.0 128.9 Trade receivables 107.6 108.6 99.3 -74.5 -72.8 -77.7 -81.7 -89.8 Trade payables 30 June 2020 30 Sept 2020 31 Dec 2
Slide 21: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 June 2021 Balance sheet 30/06/2021: € 935m Balance sheet 31/12/2020: € 764m Cash, cash equivalents and money market funds shares totalling € 245m Non-current 419 364 457 335 Equity (incl. hybrid capita
Slide 22: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance (p.13) Strategy and Outlook (p.22) Appendix (p.29) 22 Investor Presentation H1 2021 I 19 August 2021 I Investor Relations
Slide 23: Recap on industrial strategy
Recap on industrial strategy Semperit Industry aims for >EUR 1 bn sales and overall EBITDA margin >13% with a balanced and sustainable portfolio despite volatile industry environment Based on an integrated and transparently developed Semperit portfolio review a set of strategic actions has been deri
Slide 24: Defined capital allocation priorities
Defined capital allocation priorities Capital allocation policy Growth 1) Strategic M&A 2) Growth CAPEX 3) Dividend policy1) • Strategic Objective: • Selective investments within • Target of around 50% pay-out Strengthen strategic and core industrial segments ratio based on earnings after tax compet
Slide 25: Focus on strategic M&A to strengthen Semperit's Industrial Sector
Focus on strategic M&A to strengthen and further develop Semperit’s Industrial Sector Context Following a successful restructuring and performance improvement, shift of focus to strategic growth of Semperit’s Industrial Sector Strong balance sheet with net cash position allows for growth through
Slide 26: Growth CAPEX measures to strengthen industrial sector
Growth CAPEX measures to strengthen industrial sector • Invest into existing industrial segments to strengthen market position • Focus on regional expansion beyond Europe (focus on US and Asia) • Focus on innovation and digitalisation of product portfolio Selective growth capex initiatives • Invest
Slide 27: Outlook and strategic focus areas
Outlook and strategic focus areas Outlook confirmed: EBITDA guidance of roughly €395m, despite headwinds from raw materials’ price increases and extremely high logistics costs Focus on strategic growth of Semperit’s Industrial Sector supported by strong balance sheet and cash generation capacity Sha
Slide 28: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2021 Judit Helenyi, Director Investor Relations 17.11.2021 Report on Q1-3 2021 +43 1 79777 - 310 www.semperitgroup.com/en/ir Modecenterstrasse 22 1031 Vienna, Austria Disclaimer The information provided in this presentatio
Slide 29: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.5) Financial Performance (p.13) Strategy and Outlook (p.22) Appendix (p.29) 29 Investor Presentation H1 2021 I 19 August 2021 I Investor Relations
Slide 30: Sectors and Group: H1 2021 vs H1 2020
Sectors and Group: H1 2021 vs H1 2020 Industrial Sector 1) Medical Sector 2) Semperit Group 3) in EUR m H1 2021 H1 2020 % H1 2021 H1 2020 % H1 2021 H1 2020 % Revenue 268.1 249.2 +7.6% 392.7 169.7 >100% 660.8 418.9 +57.7% EBITDA 41.3 44.8 -7.7% 220.5 23.0 >100% 247.5 57.6 >100% EBITDA margin 15.4% 18
Slide 31: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 2020 2020 2018 2019 2019 2019 adj. 2019 adj.2) 1) 2019 2020 2020 adj.3) 4) 2020 adj. 5) 2021 2021 in EUR m adj. adj. Revenue 878.5 212.9 224.4 214.9 188.3 840.6 199.1 219.8 238.2 270.5 92
Slide 32: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 in EUR m Revenue 230.0 61.1 59.7 53.8 48.0 222.7 46.8 51.5 46.6 45.0 189.9 54.7 59.7 EBITDA 48.9 13.9 14.5 10.8 8.7 47.9 9.3 1
Slide 33: Semperform and Semperseal (adj. where applicable)
Semperform and Semperseal (adj. where applicable) Semperform (Window and door profiles, Handrails) - before 2020 FY Q1 Q2 Q3 Q4 FY 2018 2019 2019 2019 2019 2019 in EUR m Revenue 192.2 49.9 50.5 47.8 42.4 190.6 EBITDA 21.9 7.9 8.3 6.6 3.3 26.0 EBITDA margin 11.4% 15.7% 16.4% 13.8% 7.8% 13.6% EBIT 13.
Slide 34: Sempermed (adj. where applicable)
Sempermed (adj. where applicable) Sempermed (Gloves) Q3 Q2 Q3 FY FY Q1 Q2 Q4 FY Q1 Q4 Q1 Q2 2019 2) 2020 2020 5) 2020 2018 2019 2019 1) 2019 2019 2020 3) 4) 2020 6) 2021 2021 in EUR m adj. adj. adj. adj. Revenue 311.5 71.5 76.4 78.2 67.3 293.3 77.5 92.2 118.4 161.1 449.2 192.9 199.8 EBITDA -3.9 -0.9
Slide 35: Key figures 2010-2020
Key figures 2010-2020 Key performance figures 2016 2017 2018 2019 2020 in EUR m 20101) 20111) 2012 2013 20144) 20154) adj. 4) adj. 4) adj. 5) adj. 6) adj. 7) Revenue 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 927.6 EBITDA 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 208.6
Slide 36: 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 2019 ø 2020 200 150 100 50 ø YTD 2021 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustrati
Slide 37: 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 150 150 ø 2019 ø 2020 ø 2019 ø 2020 125 125 100 100 75 75 50 50 ø YTD Ø YTD 2021 2021 25 25 Fuel Oil 1% Sulphur NWE FOB Cargo Price index wire ro
Slide 38: Product / market position / segment overview, FY 2020
Product / market position / segment overview, FY 2020 in EUR m Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform4) Semperseal4) Sempermed Revenue 927.6 189.9 / 20%1) 113.1 / 12%1) 81.8 / 9%1) 93.6 / 10%1) 449.2 / 48%1) EBITDA 208.62) 41.9 8.7 15.0 11.0 150.4 Emp
Slide 39: 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