Semperit Ag Holding · VIE:SEM
Semperit — H1 2024 Earnings Presentation
31 slides from Semperit's earnings presentation, Aug 13, 2024
Slide 1: Semperit Group H1 2024 Investor Presentation
SEMPERIT GROUP H1 2024 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 13 August 2024
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.8) Outlook (p.17) Appendix (p.25) 2 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 3: Highlights H1 2024
Highlights H1 2024 EBITDA increased by 7.9% to EUR 47.3m in H1‘24 despite challenging market environment, EBITDA margin improved to 13.7% (+1.4 PP) Cost reduction program at EUR 14.4m substantially exceeding original target of EUR 10m Exit from gloves business fully completed – surgical operations h
Slide 4: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.8) Outlook (p.17) Appendix (p.25) 4 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 5: SIA with improved margin, SEA with positive impact from recent acquisition
SIA with improved margin, SEA with positive impact from recent acquisition Semperit Industrial Applications Semperit Engineered Applications H1’24 H1’24 H1’23 H1’23 44% 46% 46% 45% 54% 55% 56% 54% Starting Q1 2024, Surgical Operations have been part of the discontinued operations and are not include
Slide 6: Semperit Industrial Applications H1 2024
Semperit Industrial Applications H1 2024 Reduction of overhead costs to improve future operative leverage EBITDA in EUR m EBITDA margin 23.9% 21.5% 21.9% 19.1% 19.2% 18.5% 17.6% Semperit 12.5% 10.2% Industrial 30.2 Applications 21.3 24.0 6.3% 17.5 17.8 13.8 17.2 12.6 7.4 4.2 Q1’22 Q2’22 Q3’22 Q4’22
Slide 7: Semperit Engineered Applications H1 2024
Semperit Engineered Applications H1 2024 Growth in top line, but pressure on EBITDA – YoY impact from change in consolidation range 17.0% EBITDA in EUR m 16.4% 18.3% 2.3 EBITDA margin 17.1% 15.1% 12.7% 15.2% 11.3% 12.4% Semperit 8.7% 4.1 Engineered 15.8 15.4 12.2 13.1 14.0 Applications 11.3 11.3 8.4
Slide 8: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.8) Outlook (p.17) Appendix (p.25) 8 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 9: Financial highlights H1 2024
Financial highlights H1 2024 Continuing strong Structural cost Strategic digitalization Closing sale of the Strong balance focus on free cash adjustments to project „oneERP“ and Medical business sheet structure flow for growth recalibrate operating operational and focus on core and significant cash
Slide 10: Overview of financial KPIs H1 2024 and H1 2023
Overview of financial KPIs H1 2024 and H1 2023 H1 2024 H1 2023 Δ Revenues Revenues down mainly due to economic in EUR m 345.5 355.7 -2.9% headwinds and reduced demand in cyclical businesses EBITDA in EUR m 47.3 43.8 +7.9% Improvements in EBITDA and margin on the back of strict cost reduction EBI
Slide 11: Detail on Last Twelve Month (LTM) view – cost reduction stabilizes margins
Detail on Last Twelve Month (LTM) view – cost reduction stabilizes margins LTM Industrial Revenue (EUR m) and operational EBITDA margin (%) 734.0 739.5 717.4 705.0 695.1 681.8 681.4 660.3 671.6 596.9 556.1 527.4 507.0 518.9 490.1 478.4 487.0 497.3 17.1 17.5 17.4 16.5 16.7 16.9 16.8 15.9 16.0 16.3 15
Slide 12: EBITDA development: cost reduction and Rico drive positive results
EBITDA development: cost reduction and Rico drive positive results in EUR m +8% 7.5 47.3 43.8 5.8 6.1 3.5 Cost reduction: 37.7 ~EUR 10m run rate H1’23: EUR 1.1m -26.4 H1’24: EUR 8.6m FY’23: EUR 5.8m ∑: EUR 14.4m -30.8 EBITDA Price Effect Sales Volume Cost of materials Personnel exp. Consulting exp.,
Slide 13: Working Capital overview
Working Capital overview Components of Working Capital1 in EUR m 20.5% 21.8% 15.9% 18.7% 17.7% 155.6 160.4 127.7 134.8 120.9 114.7 121.9 110.8 106.6 108.4 Inventories 99.4 100.8 86.1 86.7 70.7 Trade receivables -58.5 -62.3 -69.2 -58.5 -58.2 Trade payables 30 June ’23 30 Sept ’23 31 Dec ’23 31 March
Slide 14: Free cash flow, CAPEX and net financial debt
Free cash flow, CAPEX and net financial debt Free cash flow significantly increased to EUR 23.6m (H1’23: EUR 1.8m) Total CAPEX increased to EUR 38.1m (from EUR 21.9m in H1’23) – with growth CAPEX at EUR 16.7m Net financial debt / EBITDA multiple stable at very solid 1.6x EUR 100m unused cred
Slide 15: Robust balance sheet structure and financial profile
Robust balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 June 2024 Balance sheet 30/06/2024: EUR 930m Cash and cash equivalents at EUR 124.0m Balance sheet 31/12/2023: EUR 938m Financial liabilities at EUR 242.4m, increase (6%) due to financing of c
Slide 16: Capital allocation and usage of cash
Capital allocation and usage of cash Free cash flow Normal Investments € Growth Investments € Shareholder Return % MAINTENANCE GROWTH CAPEX & DIGITALIZATION M&A DIVIDENDS CAPEX Strategic growth project: Commitment to maintaining expansion of the hydraulic Attractive and enhancing our hose production
Slide 17: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.4) Financial Performance (p.8) Outlook (p.17) Appendix (p.25) 17 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 18: Market Outlook 2024
Market Outlook 2024 Current cyclical downturn impacts commodity business (SIA) more due to weak construction and yellow goods industries (construction and agriculture) Diversified markets with different dynamics for SEA – thus more resilient and stable with focus on technology and industrial sol
Slide 19: Management agenda
Management agenda Relentless pursuit of industrial strategy with profitable growth, customer intimacy and technological leadership Distinctive industrial focus on two competitive business models Managing the downturn through costs, share-of-wallet gains and capacity adjustments Complexity re
Slide 20: Guidance 2024
Guidance 2024 2024: EBITDA expected at ~EUR 80m 2024: CAPEX expected at ~EUR 70m 40% growth – 60% maintenance and small growth projects 20 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 21: Mid-term Targets for 2026 – Outperforming the Market
Mid-term Targets for 2026 – Outperforming the Market Committed to strong organic growth, operating leverage and cost optimization attractive niche markets, high level cost leadership driving Cyclical upside of customization, Form (handrails, volumes, hoses and profiles mountain applications) standar
Slide 22: Financial targets for 2026 – continuation of profitable growth
Financial targets for 2026 – continuation of profitable growth in EUR m ~120 ~10 EBITDA ~14 Target 78 ~18 6 Revenue ~ 120m 72 Target > 900m Like-for-like 2023 Cyclical upside Structural growth & new Own control, operating Target 2026 business leverage Lfl-adjustment 2023 for Surgical Operations, rev
Slide 23: Five reasons to invest in Semperit
Investment Proposition Five reasons to invest in Semperit 1 Leading global market position in elastomer applications with strong industrial base 2 Relentless focus on innovation and technology, 3 Resilient business model driven by operating leverage and cost leadership 4 Strong balance sheet and cas
Slide 24: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2024 Judit Helenyi, Director Investor Relations 13.08.2024 Half-year financial report 2024 07.11.2024 Report on 1-9 2024 +43 1 79777 - 310 www.semperitgroup.com/en/ir Am Belvedere 10 1100 Vienna, Austria DISCLAIMER The inf
Slide 25: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.4) Financial Performance (p.8) Outlook (p.17) Appendix (p.25) 25 Investor Presentation HY1 2024 I 13 August 2024 I Investor Relations
Slide 26: Divisions & Group
Divisions & Group: in EUR m INDUSTRIAL APPLICATIONS (SIA) ENGINEERED APPLICATIONS (SEA) SEMPERIT GROUP 1 2 1 2 1 H1 2024 H1 2023 % H1 2024 H1 2023 % H1 2024 H1 2023 % Revenue 152.8 192.3 -20.6% 192.8 163.4 18.0% 345.5 355.7 -2.9% EBITDA 31.0 35.3 -12.1% 26.7 28.9 -7.6% 47.3 43.8 7.9% EBITDA margin 2
Slide 27: Semperit Group (continued operations)
Semperit Group (continued operations) in EUR m SEMPERIT GROUP FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 2024 Revenue 601.8 181.5 213.3 198.6 186.4 779.8 185.2 189.0 173.4 173.4 721.1 176.0 169.5 EBITDA 54.0 20.3 33.7 25.9 20.7 100.5 20.8 22.9
Slide 28: Semperit Industrial Applications, Semperit Engineered Applications & Corporate
Semperit Industrial Applications, Semperit Engineered Applications & Corporate in EUR m SEMPERIT INDUSTRIAL APPLICATIONS (SIA) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 2024 Revenue 341.9 111.1 126.4 111.6 101.1 450.2 99.4 93.0 72.2 66.2 330.8
Slide 29: Key figures 2012-2023
Key figures 2012-2023 KEY PERFORMANCE FIGURES in EUR m 1 1 2 3 4 5 6 2012 2013 2014 2015 2016 adj. 2017 adj. 2018 adj. 2019 adj. 2020 adj. 2021 7 2022 adj.7 2023 adj.8 Revenue 828.6 906.3 858.3 914.7 852.4 874.2 875.5 840.6 927.5 601.8 779.8 721.1 EBITDA 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 20
Slide 30: Overview price indices LFO-F-NEW / Butadiene
Overview price indices LFO-F-NEW / Butadiene Significant increase for raw material1 used in industrial segments Price indices Butadiene as main raw material for Price indices Butadiene as main raw material for synthetic rubber / latex synthetic rubber / latex 250 250 ø 2021 ø 2022 ø 2023 ø 2024 ø 20
Slide 31: ESG targets in line with new Group structure
ESG targets in line with new Group structure ESG Ratings: EcoVadis platinum award for second year in a row CDP -Climate Change improved to C (after C-), first rating for Forest (C) Diversity & Inclusion (D&I) as focus point introduced while also applying new targets More ambitious goal set for suppl