Semperit Ag Holding · VIE:SEM

Semperit — Q3 2020 Earnings Presentation

35 slides from Semperit's earnings presentation, Nov 19, 2020

  1. Slide 1: Semperit Group Q1-3 2020 / Q3 2020 Investor Presentation

    SEMPERIT GROUP Q1-3 2020 / Q3 2020 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Gabriele Schallegger, CFO 19 November 2020 1

  2. Slide 2: Agenda

    Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.21) Appendix (p.24) 2 Investor Presentation Q1-3 2020 I 19 August 2020 I Investor Relations

  3. Slide 3: Key Highlights Q1-3'20: corona and restructuring setting the agenda

    Key Highlights Q1-3’20: corona and restructuring setting the agenda  Successful restructuring: Material impact  Revenue up by +0.8% to € 657.2m from transformation and restructuring process – Impact of ongoing economic slowdown – Industrial Sector: resilient margins against – Key driver: significa

  4. Slide 4: Corona impact stress tested and accelerated restructuring process

    Corona impact stress tested and accelerated restructuring process Health • Number of people who had tested positive so far rose to 117 in total by now & • Approximately 20% of all suspected and positive cases occurred during the last four weeks Safety • Production continued smoothly, with special ma

  5. Slide 5: Update on Industrial strategy implementation

    Update on Industrial strategy implementation Focus on industrial rubber strategy in implementation Establishing growth platform, organically and inorganically Separation from the medical segment postponed Planned to be actively pursued after summer 2021 Higher market and customer accelerated Strong

  6. Slide 6: Agenda

    Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.21) Appendix (p.24) 6 Investor Presentation Q1-3 2020 I 19 November 2020 I Investor Relations

  7. Slide 7: Successful restructuring supported by positive corona effect

    Successful restructuring supported by positive corona effect • Ongoing exceptional performance of Medical Sector both at top line and profitability • Industrial Sector: top line under pressure – margins remain resilient • Operational Group EBITDA yoy improvement for 11th consecutive quarter Revenue

  8. Slide 8: Industrial Sector EBITDA Q3'2020

    Industrial Sector EBITDA Q3’2020 Strong and resilient margins on the back of restructuring and efficiency enhancement 28.2 27.1 24.5 23.0 21.3 22.0 19.0 20.5 Industrial 18.8 17.9 17.1 17.7 17.3 15.3 16.1 Sector 14.5 15.6 12.6 13.3 11.6 12.8 10.6 1) Q1 Q2 Q3 Q4 EBITDA ’18 in € m EBITDA ’18 margin EBI

  9. Slide 9: Semperflex Q1-3 2020

    Semperflex Q1-3 2020 Robust EBITDA margin – above Q3’19 level 27.2% 22.8% 24.4% 24.5% 20.0% 19.9% EBITDA in € m 18.1% EBITDA margin Semperflex 13.9 14.5 14.0 10.8 11.4 8.7 9.3 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q1-3 2020 vs. Q1-3 2019  Revenue down due to reduced market demand further to the

  10. Slide 10: Sempertrans Q1-3 2020

    Sempertrans Q1-3 2020 More severe pressure on the business 15.4% 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 7.6% 5.4 5.4% 5.0 1.3 4.6 2.5% 1.4 1.6 2.1 0.8 Q1’19 1) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q1-3 2020 vs. Q1-3 2019  Global mining companies reduced capex significantly Revenue

  11. Slide 11: Semperseal Q1-3 2020

    Semperseal Q1-3 2020 Active focus keeps margins above last year’s level 14.1% 14.7% 13.2% 12.8% 12.0% EBITDA in € m 9.8% Semperseal EBITDA margin 3.9 3.4 3.3 3.2 2.9 2.5 3.0% 0.6 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q1-3 2020 vs. Q1-3 2019  Top line pressure due to reduced market demand – cons

  12. Slide 12: Semperform Q1-3 2020

    Semperform Q1-3 2020 Sustainably high margins – exceeding 2019 level 22.6% 19.6% 18.4% 19.6% 17.7% 17.5% EBITDA in € m Semperform 12.2% EBITDA margin 4.8 5.0 4.0 4.1 3.5 4.0 2.7 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q1-3 2020 vs. Q1-3 2019  Revenue down yoy (-10.2%) due to reduced economic acti

  13. Slide 13: Medical Sector / Sempermed segment Q1-3 2020

    Medical Sector / Sempermed segment Q1-3 2020 EBITDA margin boosted by market dynamics, leveraged by operational efficiency 37.5 EBITDA in € m EBITDA margin Sempermed 19.7 Medical 44.4 6.1 Sector 0.8 2.3 -0.1 18.2 -0.9 0.6 1.8 -0.1 4.8 -1.2 1) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q1-3 2020 vs. Q

  14. Slide 14: Agenda

    Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.21) Appendix (p.24) 14 Investor Presentation Q1-3 2020 I 19 November 2020 I Investor Relations

  15. Slide 15: Revenue development

    Revenue development in € m +0.8% 652.2 62.2 657.2 -29.7 -13.0 -7.5 -7.1 Industrial Medical Sector Sector -13.4% +27.5% -17.0% -12.6% -9.5% -10.2% Q1-3’19 Semperflex Sempertrans Semperseal Semperform Sempermed Q1-3’20 Revenue 145.0m 90.3m 71.5m 62.2m 288.2m Q1-3’20 1) Semperform has been split into S

  16. Slide 16: Corona impact on reported EBITDA: Medical Sector strong – Industrial Sector resilient

    Corona impact on reported EBITDA: Medical Sector strong – Industrial Sector resilient Margin strength against the corona impact in € m +96.1% 118.5 +5.9 +61.6 60.4 -4.5 -4.0 -2.6 +1.7 Q1-3’19 Semperflex Sempertrans Semperseal Semperform Sempermed Corporate Q1-3’20 EBITDA 60.4m 39.3m 12.7m 11.9m 10.8

  17. Slide 17: Financials and profitability overview

    Financials and profitability overview 2) 3) 4) 5) in € m Q1-3 2020 Change Q1-3 2019 Q3 2020 Change Q3 2019 Revenue 657.2 +0.8% 652.2 238.2 +10.8% 214.9 EBITDA adjusted 118.5 >100% 56.4 60.9 >100% 17.3 EBITDA margin adjusted 18.0% +9.4 PP 8.6% 25.6% +17.6 PP 8.0% EBITDA 118.5 +96.1% 60.4 60.9 >100% 2

  18. Slide 18: Working Capital overview

    Working Capital overview Components of Working Capital in € m 19.0%1) 18.5%1) 18.0%1) 19.5%1) 18.5%1) 163.4 148.5 160.4 156.2 155.2 136.0 127.4 120.5 Inventories 122.2 124.2 109.8 94.6 102.9 107.6 108.6 Trade receivables -61.5 -78.5 -74.5 -72.8 Trade payables -82.5 30 Sept 2019 31 Dec 2019 31 March

  19. Slide 19: Free cash flow development and CAPEX

    Free cash flow development and CAPEX Cash Flow Development  Improved results, active WC management and strict CAPEX control  Q1-3’20 FCF increased yoy by 64% CAPEX  Q1-3’20 CAPEX at €17.4m – main focus on maintenance  FY 2020 CAPEX to remain below € 40m 111 83 99 60 50 15 -21 -12 -23 -42 -57 -71

  20. Slide 20: Balance sheet structure and financial profile

    Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 September 2020  Cash and cash equivalents of € 157m Balance sheet 30/9/2020: € 773m Balance sheet 31/12/2019: € 702m  Financial liabilities:  Corporate Schuldschein loan partially repaid in Q1’20 and

  21. Slide 21: Agenda

    Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.21) Appendix (p.24) 21 Investor Presentation Q1-3 2020 I 19 November 2020 I Investor Relations

  22. Slide 22: Outlook 2020 upgraded

    Outlook 2020 upgraded Medical Sector Industrial Sector  Strong focus on business execution  Different pace of recovery is expected – depending  Separation will follow clear strategic rationale on severity of second wave of corona pandemic (market prices, order book, general market  Semperflex: s

  23. Slide 23: Contact and financial calendar

    Contact and financial calendar Investor Relations Semperit Financial Calendar 2021 Judit Helenyi, Director Investor Relations 18.03.2021 Publication of 2020 annual financial statements 27.04.2021 Annual general meeting, Vienna +43 1 79777 - 310 www.semperitgroup.com/en/ir 03.05.2021 Dividend payment

  24. Slide 24: Agenda

    Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan (p.21) Appendix (p.24) 24 Investor Presentation Q1-3 2020 I 19 November 2020 I Investor Relations

  25. Slide 25: Sectors and Group: Q1-3 2020 vs Q1-3 2019

    Sectors and Group: Q1-3 2020 vs Q1-3 20191) Industrial Sector Medical Sector Semperit Group in EUR m Q1-3 2020 Q1-3 2019 % Q1-3 2020 Q1-3 2019 % Q1-3 2020 Q1-3 2019 % Revenue 369.0 426.2 -13.4% 288.2 226.0 27.5% 657.2 652.2 +0.8% EBITDA 65.3 74.7 -12.6% 67.3 5.6 >100% 118.5 60.4 +96.1% EBITDA margin

  26. Slide 26: Semperit Group adj. where applicable

    Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 FY Q2 Q3 Q4 Q2 Q3 Q1 Q3 Q4 FY Q1 Q2 FY Q1 2017 2017 2017 2017 2017 2018 2019 2019 2020 2020 1) 1) 1) 1) 1) 2018 2) 2018 2018 2018 2019 2019 3) 4) 2019 2020 5) 6) in EUR m adj. adj. adj. adj. adj. adj. adj. adj. adj

  27. Slide 27: Semperflex and Sempertrans (adj. where applicable)

    Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q3 Q1 Q2 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2017 2017 2017 2017 2017 2018 1) 1) 1) 1) 1) 2018 2018 2) 2018 2018 2019 2019 2019 2019 2019 2020 2020 2020 in EUR m adj. adj. adj. adj. adj. adj. Revenue 53.5 53.2 46.8 52.5 2

  28. Slide 28: Semperform and Semperseal (adj. where applicable)

    Semperform and Semperseal (adj. where applicable) Semperform (Window and door profiles, Handrails) - before 2020 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020 2020 in EUR m Revenue 47.5 50.7 50.3 43.7 192.2 49.9 50.5 47.8 42.4 190.6 EBITDA 4.5 7.3

  29. Slide 29: Sempermed (adj. where applicable)

    Sempermed (adj. where applicable) Sempermed (Gloves) Q1 Q2 Q3 FY Q3 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 FY Q1 2017 2017 2017 2017 2019 2020 2020 2) 2) 1) 2017 1) 2) 2018 2018 2018 2018 2018 2019 2019 3) 2019 2019 2020 4) 5) in EUR m adj. adj. adj. adj. adj. adj. adj. Revenue 89.2 92.2 78.8 76.9 337.1 8

  30. Slide 30: Key figures 2009-2019

    Key figures 2009-2019 Key performance figures 1) 1) 3) 3) 2016 2017 2018 2019 in EUR m 2009 2010 2011 2012 2013 2014 2015 4) 5) 6) 7) adj. adj. adj. adj. Revenue 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 EBITDA 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 EBIT

  31. Slide 31: CAPEX by quarter

    CAPEX by quarter CAPEX per segment in € m 6.8 6.8 Semperflex 1.3 1.4 5.3 Sempertrans 5.1 0.3 Semperseal 1.4 1.0 1.0 0.8 Semperform 3.7 0.0 Sempermed 1.2 1.6 2.0 Corporate 1.9 2.0 1.0 0.9 0.4 0.1 1.1 0.8 0.3 1.5 1.7 1.3 0.9 1.1 0.0 0.2 0.2 0.0 0.1 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 31 Investor Presentatio

  32. Slide 32: 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 150 ø 2019 ø YTD 2020 100 50 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration purposes onl

  33. Slide 33: 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 YTD ø 2019 ø YTD 2020 2020 125 125 100 100 75 75 50 50 25 25 Fuel Oil 1% Sulphur NWE FOB Cargo Price index wire rod (Germany) 1)

  34. Slide 34: Product / market position / segment overview, FY 2019

    Product / market position / segment overview, FY 2019 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform4) Sempermed Revenue € 841m € 223m / 26%1) € 134m / 16%1) € 191m / 23%1) € 293m / 35%1) EBITDA adj. € 64m2) € 48m € 14m € 26m € 1m Employees 6,9022) 1,672 / 27

  35. Slide 35: 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

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