Covestro AG · VIE:1COV
Covestro — Q1 2016 Earnings Presentation
16 slides from Covestro's earnings presentation, Apr 25, 2016
Slide 1: Strong start into the year – Financial Highlights Q1 2016
Strong start into the year Financial Highlights Q1 2016 covestro.com │ April 25, 2016 │ Q1 2016 Investor Conference Call
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain forward-looking statements based on current assumptions and forecasts made by Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situati
Slide 3: Key Highlights
Key Highlights Strong start into the year Dynamic core volume growth of 8.5% Y/Y Adj. EBITDA increase of 22% Y/Y Net income increase of 58% Y/Y FY 2016 guidance confirmed Successful refinancing of debt 3 │ April 25, 2016 │ Q1 2016 Investor Conference Call
Slide 4: Q1 2016 – Sales per Region
Q1 2016 – Sales per Region Dynamic volume growth in all regions Solid development in Q1 2016 Highlights in € million / Vol.: Core Volumes Y/Y EMLA China • Strong volume growth in Europe partly 447 diminished by double-digit decline in Vol. +13.3% Latin America • Mild winter helped construction indus
Slide 5: Q1 2016 – Sales Bridge
Q1 2016 – Sales Bridge Dynamic volume growth Sales Bridge Highlights in € million Dynamic volume development • Core volume growth (in kt) of 8.5% Y/Y +161 -320 3,054 • Sales volumes (in €) expansion of 5.3% Volume -21 2,875 Y/Y diminished by stable by-product Price FX sales (non-core) Price decline
Slide 6: Q1 2016 – Adj. EBITDA Bridge
Q1 2016 – Adj. EBITDA Bridge Positive volume leverage Adj. EBITDA Bridge Highlights in € million Pricing Power Positive volume leverage €22m +341 -1 508 • Driven by MDI, TDI and PC +67 -320 Others (incl. insurance income of €30m) Slightly improving cash margin 416 +5 FX Volume • Positive pricing pow
Slide 7: Q1 2016 – Group Results
Q1 2016 – Group Results Continued margin expansion Net Sales and Core Volume Growth Q1 2016 Highlights in € million / changes Y/Y +6.7% +8.5% • Dynamic core volume growth mainly +1.7% -0.6% +3.0% driven by underlying demand improvements but also helped by low prior year basis, mild winter and compet
Slide 8: Q1 2016 – Results of PUR Segment
Q1 2016 – Results of PUR Segment Polyurethanes – Solid development Net Sales and Core Volume Growth Q1 2016 Highlights in € million / changes Y/Y • Core volume growth of 10.4% Y/Y mainly +10.4% driven by TDI and MDI, whereas Polyols +5.8% +4.6% -0.4% increased only low-single digit -2.7% • Selling p
Slide 9: Q1 2016 – Results of PCS Segment
Q1 2016 – Results of PCS Segment Polycarbonates – Strong results Net Sales and Core Volume Growth Q1 2016 Highlights in € million / changes Y/Y +9.1% +8.5% • Globally dynamic demand from +5.4% +5.4% automotive and construction; solid growth +0.5% in electrical, especially in APAC; on purpose lower v
Slide 10: Q1 2016 – Results of CAS Segment
Q1 2016 – Results of CAS Segment Coatings, Adhesives, Specialties – Record margin Net Sales and Core Volume Growth Q1 2016 Highlights in € million / changes Y/Y +6.3% +6.5% • Phase out of trading product burdened -2.4% core volume growth; underlying business -2.8% -0.2% of CAS delivered a low single
Slide 11: Q1 2016 – Free Operating Cash Flow
Q1 2016 – Free Operating Cash Flow On track to deliver Free Operating Cash Flow Q1 2016 Highlights in € million Seasonally low FOCF • Slightly declining FOCF due to higher working capital and cash out for income 964 taxes • Working capital to sales ratio showed usual seasonal increase to 17.8% (12-
Slide 12: Q1 2016 – Financial Debt
Q1 2016 – Financial Debt Baa2 rating (Moody’s) with stable outlook Financial Debt Development in € million 3,963 1,876 1,031 3,118 810 2,087 500 Pension Bayer Debt 500 Cash (Jun-16) provisions Bond I 500 (Mar 2018; 0.6% + Euribor) Bond II 808 (Oct 2021; Bond III 1.0%) (Sep 2024; 1.75%) Total Debt Ne
Slide 13: Guidance 2016
Guidance 2016 Committed to deliver Sales and Earnings Forecast 2015 Forecast Core Volume Growth +2.7% Mid-single-digit increase Free Operating Cash Flow €964m At high level, above the average of recent years ROCE +9.5% Premium on cost of capital Basic Assumptions • Our guidance is based on current e
Slide 14: Q1 2016 – Summary
Q1 2016 – Summary Covestro fully on track Strong organic growth in a focused portfolio despite a challenging market environment Solid earnings and cash flow generation supported by a stable demand/supply balance and a focus on profitability Robust financial profile with an investment grade rating (B
Slide 15: Upcoming IR Events
Upcoming IR Events Find more information on investor.covestro.com Reporting Dates • July 26, 2016: Half-Year Financial Report 2016 • October 25, 2016: Q3 2016 Interim Report • February 20, 2017: Annual Report 2016 Annual Dates • May 3, 2016: Annual Stockholders' Meeting, Cologne • May 4, 2016: Plann
Slide 16: Questions & Answers
Questions & Answers covestro.com │ April 25, 2016 │ Q1 2016 Investor Conference Call