Schouw & Co A/s · OMXCOP:SCHO

Schouw & Co A/s — H1 2015 Earnings Presentation

39 slides from Schouw & Co A/s's earnings presentation, Aug 31, 2015

  1. Slide 1: Schouw & Co. 2015 first half investor presentation

    Schouw & Co. 2015 first half Investor presentation AUGUST/SEPTEMBER 2015 CEO JENS BJERG SØRENSEN IR KASPER OKKELS

  2. Slide 2: 2015 H1 at a glance: Continued progress

    Interim Report 2015H1 31.08.2015 2 2015 H1 at a glance: Continued progress revenue return on invested capital NIBD/EBITDA 5.9bn Growth 16% // 2014H1: 5.1bn 17.0% ROIC incl. goodwill 14.1% 0.1x Small increase in NIBD y/y Impact from volatile raw material prices Progress in all companies except BioMar

  3. Slide 3: Key figures

    Interim Report 2015H1 31.08.2015 3 Key figures Revenue and income 2015H1 2014H1 2014FY 380 Schouw & Co. share price Revenue 5,888 5,064 11,784 C20 CAP indexed to Schouw & Co. EBITDA 494 415 1,070 360 MidCap indexed to Schouw & Co. - margin 8.4% 8.2% 9.1% EBIT 303 239 708 340 - margin Profit after ta

  4. Slide 4: BioMar

    Interim Report 2015H1 31.08.2015 4 BioMar Volume flat compared to 2014H1 Revenue  Same total y/y volume in both Q1 and Q2 LTM  21% revenue increase due to higher raw material prices  Increase in Norwegian volumes (final deliveries, contract base)  Decrease in Chilean volumes (declining market, s

  5. Slide 5: BioMar 2015-H1 financials

    Interim Report 2015H1 31.08.2015 5 BioMar 2015-H1 financials Q2 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 2,230 1,837 21% 4,139 3,430 21% 9,161 8,451 EBITDA 115 114 1% 201 183 10% 592 574 EBITDA% 5.1% 6.2% -17% 4.9% 5.3% -9% 6.5% 6.8% EBIT 78 79 -1% 127 112 13% 449 434 EBIT% 3.5% 4.3% -18% 3.1% 3

  6. Slide 6: Fibertex Personal Care

    Interim Report 2015H1 31.08.2015 6 Fibertex Personal Care Small decline in revenue and volume Revenue  Volume growth in Denmark but decline in Malaysia LTM  Lower raw material prices affects revenue negatively  Positive effect from consolidation of Innowo Print  Strong cash flow from operations

  7. Slide 7: Fibertex Personal Care 2015-H1 financials

    Interim Report 2015H1 31.08.2015 7 Fibertex Personal Care 2015-H1 financials Q2 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 404 421 -4% 832 847 -2% 1,772 1,787 EBITDA 70 66 5% 169 136 24% 340 308 EBITDA% 17.3% 15.8% 10% 20.3% 16.1% 26% 19.2% 17.2% EBIT 34 34 0% 98 73 35% 197 171 EBIT% 8.5% 8.1% 4%

  8. Slide 8: Fibertex Nonwovens

    Interim Report 2015H1 31.08.2015 8 Fibertex Nonwovens Another strong quarter Revenue  Growth in auto and high-value segments LTM  Substantial progress in EBIT and gross margin  Effect from acquisitions, forex, scale and transformed business model  One-off gain of DKK 3m following acquisition of

  9. Slide 9: Fibertex Nonwovens 2015-H1 financials

    Interim Report 2015H1 31.08.2015 9 Fibertex Nonwovens 2015-H1 financials Q2 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 328 267 23% 634 539 18% 1,143 1,048 EBITDA 44 31 40% 89 64 38% 153 128 EBITDA% 13.4% 11.8% 14% 14.1% 12.0% 18% 13.4% 12.2% EBIT 25 16 59% 52 33 58% 81 62 EBIT% 7.6% 5.9% 29% 8.2%

  10. Slide 10: Hydra-Grene

    Interim Report 2015H1 31.08.2015 10 Hydra-Grene Strong H1 and high activity in wind Revenue  ~45% of revenue comes from wind segment LTM  Very strong wind sales to USA  Significant effect from good utilisation of capacity  Danish OEM market on par with 2014H1  Offshore oil/gas remains small com

  11. Slide 11: Hydra-Grene 2015-H1 financials

    Interim Report 2015H1 31.08.2015 11 Hydra-Grene 2015-H1 financials Q2 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 151 147 2% 299 281 7% 584 566 EBITDA 23 22 4% 43 41 5% 80 78 EBITDA% 15.2% 14.9% 2% 14.2% 14.5% -2% 13.7% 13.8% EBIT 19 18 9% 35 32 11% 64 60 EBIT% 12.6% 11.9% 6% 11.8% 11.3% 5% 10.9% 1

  12. Slide 12: Kramp

    Interim Report 2015H1 31.08.2015 12 Kramp Strong development in H1  Revenue up 4.6% and EBIT 17% driven by the big markets in PL, FR, NL  EBIT margin of 11.7% in Q2  Robust business model: high share of wearables and repair parts  Agro customers facing difficulties in selected markets Harvesting

  13. Slide 13: Kramp 2015-H1 financials

    Interim Report 2015H1 31.08.2015 13 Kramp 2015-H1 financials Q2 YTD LTM 2014 2015 2014 D 2015 2014 D Revenue 1,439 1,360 6% 2,693 2,576 5% 5,023 4,905 EBITDA 201 179 13% 345 287 16% 576 529 EBITDA% 14.0% 13.1% 6% 12.8% 11.5% 11% 11.5% 10.8% EBIT 169 150 12% 281 241 17% 445 405 EBIT% 11.7% 11.0% 6% 1

  14. Slide 14: Other activities

    Interim Report 2015H1 31.08.2015 14 Other activities Xergi Incuba Invest  Significant progress in 2015  Small profit (as in 2014H1)  Revenue up to DKK 235m (2014H1: 86m)  EBIT margin about 8% (2014H1: loss) Properties  Maintaining high activity level also in 2015  HQ at Chr. Filtenborgs Plads

  15. Slide 15: 2015 guidance

    Interim Report 2015H1 31.08.2015 15 2015 guidance REVENUE 2015 F 2015 F 2014 EBIT 2015 F 2015 F 2014 DKK million after Q2 original actual DKK million after Q2 original actual BioMar c. 9,000 c. 8,500 8,451 BioMar 375-425 360-410 434 Fibertex Personal Care c. 1,700 c. 1,700 1,787 Fibertex Personal Ca

  16. Slide 16: Strategic goals

    Interim Report 2015H1 31.08.2015 16 Strategic goals Growth Substantial growth every year Profit Benchmark level profitability Return ROIC > 15%, but dependent on level of risk Leverage Comfort zone for NIBD is 1-2 times EBITDA Payout Constant/increasing dividends and share buybacks Portfolio A ’hand

  17. Slide 17: Appendix

    Appendix Selected introductory presentation material

  18. Slide 18: M&A activity

    Interim Report 2015H1 31.08.2015 18 M&A activity Merger Fibertex Xergi Provimi EV: 660m EV: 675m 100% 100% (BioMar) Innowo EV: 100m 85% (FPC) NWS Deal flow is not a target Martin BioMar Tharreau EV: 150m EV: 300m 100% (FIN) Fibertex EV: 500m EV: 1.800m 60+40% 100% (FIN) South Africa 68%+32% Merger +

  19. Slide 19: The Schouw agenda

    Interim Report 2015H1 31.08.2015 19 The Schouw agenda Develop big and strong businesses Leading companies do perform better Expand in growth markets A global outlook is key Constantly increase capacity Balancing profit and growth Maintain focus on innovation Secure #1 positions Think long-term Ensur

  20. Slide 20: Conglomerate value creation

    Interim Report 2015H1 31.08.2015 20 Conglomerate value creation FOCUSED OPERATIONS TRANSFORMATION Business level Delivering solid performance and growth Structural and strategic initiatives Tight/optimal capital allocation Development of products and services Ongoing efficiency Geographical expansio

  21. Slide 21: 10 years of strong growth and profitable development

    Interim Report 2015H1 31.08.2015 21 2005 2007 2011 2012 2014 2015- 10 years of Acquisition Acquisition Expansion JV in JV in Growth and strong growth of BioMar of Provimi in Myre Costa Rica Turkey acquisitions and profitable development 2002 2003 2004 2011 EUR +300m 2011 14 years of Acquisition Gree

  22. Slide 22: Our mantra

    Interim Report 2015H1 31.08.2015 22 Our mantra Businesses owned by Schouw & Co. should …secure and maintain a leading position …develop after our active ownership model …have a long-term growth strategy …take part in value-creating consolidations …generate ROIC above 15% …have visible values and a s

  23. Slide 23: Investment guidelines (for platform investment)

    Interim Report 2015H1 31.08.2015 23 Investment guidelines (for platform investment)  We have a long-term investment Area Criteria strategy and is open to attractive B2B, preference for process industry and acquisitions and appropriate Industry logistics/distribution divestments of companies Revenue

  24. Slide 24: Ownership

    Interim Report 2015H1 31.08.2015 24 Ownership Two main long-term shareholders Increase in share price and trading volume 400 12.000 Danish (27%) and foreign (18%) Danish active family-owned institutional and business fund with activities 350 Givesco+EE within bakery, industrial 10.000 retail investo

  25. Slide 25: Strategic highlights in the businesses

    Interim Report 2015H1 31.08.2015 25 Strategic highlights in the businesses BioMar Fibertex Nonwovens Continued growth in existing markets Integration and consolidation of investments Improving profitability in Norway Continuing transition from volume to value-add Limiting risk throughout the value c

  26. Slide 26: Capital structure

    Interim Report 2015H1 31.08.2015 26 Capital structure It is not a target to remain debt-free Dividend policy  Investments in our businesses (capex and bolt-on acquisitions) will likely be the main use of liquidity  Comfort zone for NIBD is 1-2 times EBITDA Schouw & Co. aims to pay stable or In 201

  27. Slide 27: BioMar

    schouw-+ce

  28. Slide 28: Fish farming/feed geography

    Interim Report 2015H1 31.08.2015 28 Fish farming/feed geography NORTH SEA AMERICAS CONTINENTAL EUROPE ASIA Atlantic salmon, trout Atlantic salmon, coho, Sea bass, sea bream, portion Shrimp, tilapia, catfish, trout, tilapia trout, eel, a.o. pangasius, etc. Market size ~2.0m t Market size ~1.4m t Mark

  29. Slide 29: BioMar's strategy

    Interim Report 2015H1 31.08.2015 29 BioMar’s strategy ELEMENTS DIRECTION AND PRIORITIES Grow organically in line with existing markets Organisationally and geographically Establish units (incl. production) in 2-4 new geographies before 2017, to the extent possible focusing on a limited number of spe

  30. Slide 30: Ambitions from 2012 strategy plan

    Interim Report 2015H1 31.08.2015 30 Ambitions from 2012 strategy plan Volume (1000 tons) 1.800  Sales of approx. 1.7 m tons in 2017 1.600  Approx. half through organic growth 1.400  The other half in new markets (acquisitions/JV’s/green fields)  5-6% EBIT margin 1.200  ROIC > 15% 1.000 800 600

  31. Slide 31: Mega-trend driven demand

    Interim Report 2015H1 31.08.2015 31 Mega-trend driven demand GLOBAL POPULATION GROWTH AQUACULTURE BENEFITS 2014 FINANCIALS 10 Salmon is  High content of vitamins and Revenue 8,451m Population, billion 8 healthy healthy fatty acids (Omega 3) EBITDA 574m - margin 6.8% 6  Low feed conversion ratio EB

  32. Slide 32: BioMar growth potential

    Interim Report 2015H1 31.08.2015 32 BioMar growth potential Existing markets New markets  Continued growth in salmon markets  Huge ‘world’ outside existing BioMar markets  Adequate capacity in medium term  BioMar can add superior feed performance  Continental market expected to remain flat  St

  33. Slide 33: The other businesses in the portfolio

    The other businesses in the portfolio

  34. Slide 34: Fibertex Personal Care

    Interim Report 2015H1 31.08.2015 34 Fibertex Personal Care HIGHLIGHTS THE BUSINESS MODEL 2014 FINANCIALS  Global top 5 producer of nonwovens for hygiene  Growing and staying market (no alternatives) Revenue 1,788m  A regional industry ∙ customers and suppliers EBITDA 308m  Supplies fabrics used

  35. Slide 35: Spunmelt is a regional industry

    Interim Report 2015H1 31.08.2015 35 Spunmelt is a regional industry ASIA Market size c. 300k t Market growth c. 10-12% FPC market share c. 15% Customers P&G, SCA, KC, Unicharm,Daio, Henang, DSG, a.o. Competitors Toray, PGI, Asahi, Mitsui, Universial, Avgol AMERICAS Market size c. 400k t Market growt

  36. Slide 36: Fibertex Nonwovens

    Interim Report 2015H1 31.08.2015 36 Fibertex Nonwovens HIGHLIGHTS AUTO 2014 FINANCIALS  European top supplier of industrial nonwovens  About ⅓ of revenue  Revenue 1,048m  Huge versatility in product applications  Market leader after French Hood insulation Trunk carpets EBITDA 128m 2011 acquisit

  37. Slide 37: Hydra-Grene

    Interim Report 2015H1 31.08.2015 37 Hydra-Grene HIGHLIGHTS THE DANISH INDUSTRIAL BUSINESS 2014 FINANCIALS  Leading Danish supplier of hydraulic components  Aftermarket customers (~25% of total revenue) Revenue 566m  Both premium and low-cost items at stock EBITDA 78m  Specialised trade and engin

  38. Slide 38: Kramp

    Interim Report 2015H1 31.08.2015 38 Kramp Leading European supplier of spare parts and accessories for the agricultural sector  #1 in BeNeLux, Germany, Poland and Nordic countries  9 central warehouses covering 22 European countries Combination of Kramp and Grene  Grene wholly owned by Schouw & C

  39. Slide 39: Contact

    Contact Investor Relations CEO/President Kasper Okkels Jens Bjerg Sørensen ir.@.schouw.dk schouw @ schouw.dk +45 87 34 58 24 +45 86 11 22 22

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