Gerresheimer Ag · XETR:GXI
Gerresheimer — Q3 2015 Earnings Presentation
27 slides from Gerresheimer's earnings presentation, Oct 8, 2015
Slide 1: Q3 2015 Results Presentation
Q3 2015 Results Presentation Uwe Röhrhoff, CEO Rainer Beaujean, CFO Duesseldorf, October 8, 2015
Slide 2: Disclaimer
Disclaimer 1. This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development
Slide 3: Q3 2015: markedly higher revenues and profits
Q3 2015: markedly higher revenues and profits Key Group figures in EUR m, EPS in EUR Revenues Adjusted EBITDA Organic FXN: +3.1% Q3 2015 FXN: EUR 66.8m +6.2% +9.5% 323.9 344.0 62.1 68.0 Margin 19.2% 19.8% Category Q3 2014 Q31 2015 Category Q3 2014 Q31 2015 Adjusted EPS Operating Cash Flow +26.9% >10
Slide 4: Review Q3 2015
Review Q3 2015 Uwe Röhrhoff, CEO
Slide 5: Q3 2015: strong financials due to healthy operating developments
Q3 2015: strong financials due to healthy operating developments Plastics & Devices Flattish growth against a tough comp, tooling at normal levels fully in line with expectations Adjusted EBITDA margin higher, driven by positive revenue mix effect Primary Packaging Glass US demand improved, strong g
Slide 6: Financial overview Q3 2015
Financial overview Q3 2015 Rainer Beaujean, CFO
Slide 7: Pickup of organic growth in Q3 2015, enhanced by stronger US-dollar
Pickup of organic growth in Q3 2015, further enhanced by stronger US-dollar – fully in line with expectations Revenues by division Q3 2015 Q3 2014 Growth Organic EUR m EUR m in % growth1 in % Total Group 344.0 323.9 +6.2 +3.1 Plastics & Devices 153.1 153.7 -0.4 -0.2 Primary Packaging Glass 170.5 151
Slide 8: Broad-based EBITDA margin expansion quarter-over-quarter
Broad-based EBITDA margin expansion quarter-over-quarter Adjusted EBITDA1 by division Q3 2015 Q3 2014 EUR m Margin in % EUR m Margin in % Total Group 68.0 19.8 62.1 19.2 Plastics & Devices 31.6 20.6 31.2 20.3 Primary Packaging Glass 38.4 22.5 32.8 21.6 Life Science Research 3.7 14.3 3.1 13.8 1. Earn
Slide 9: Q3 2015: Strong increase in adjusted EPS quarter-over-quarter
Q3 2015: Strong increase in adjusted EPS quarter-over-quarter Q3 2015 Q3 2014 Growth EUR m EUR m in % Adjusted EBITDA1 68.0 62.1 +9.5 Depreciation/amortization -23.4 -26.1 Restructuring/one-offs -8.0 -0.2 Portfolio optimization -0.4 0.0 EBIT 36.2 35.8 +0.9 Net finance expense and -16.0 -16.0 taxes N
Slide 10: Strong balance sheet, improved cash flow metrics
Strong balance sheet, improved cash flow metrics Aug 31, 2015 Aug 31, 2014 Change EUR m EUR m in % Total assets 1,668.8 1,629.8 +2.4 Equity 612.8 584.8 +4.8 Equity ratio 36.7% 35.9% - Net working capital1 254.3 264.6 -3.9 NWC in % of LTM revenues 19.0% 20.6% - Q3 2015 Q3 2014 Change Capex 37.9 22.4
Slide 11: Positive net financial debt development; new structure after refinancing
Positive net financial debt development quarter-on-quarter; simplified new structure in place after refinancing in June 2015 Comparison of debt/cash positions in EUR m Net financial debt 465.6 437.4 Bond 300.0 Fixed annual coupon of 5.0% 300.0 (matures in 2018) Long-term bank debt Revolving bank deb
Slide 12: Financing – Centor deal fully debt financed, quick deleveraging
Financing – Centor deal fully debt financed, quick deleveraging after acquisition Financing structure Credit profile Consideration was financed through drawing of Temporary increase in leverage to appr. 3.0x existing Revolving Credit Facility and a new Quick deleveraging through strong cash flows Br
Slide 13: Guidance FY 2015
Guidance FY 2015 Uwe Röhrhoff, CEO
Slide 14: Events after the balance sheet date
Events after the balance sheet date Centor acquisition closed September 1, 2015 Centor will fully contribute to Gerresheimer´s Q4 2015 Integration activities for Centor fully on track Quick deleveraging intended by reduction of debt associated with the acquisition Group adj. EPS accretion expected b
Slide 15: Reiteration of FY 2015 Guidance
Reiteration of FY 2015 Guidance – Centor acquisition closed on September 1, 2015 Guidance FY 2015 Revenues +1% to +3%; equals approx. EUR 1,300m to EUR 1,330m (organic growth)1 Adjusted EBITDA EUR 255m to EUR 265m (at const. FX)2 Capex 9% to 10% of revenues (at const. FX)2 Q4 2015 Centor contributio
Slide 16: Reiteration of first indication for FY 2016-2018
Reiteration of first indication for FY 2016-2018 including Centor and excluding Glass Tubing First indication for FY 2016-2018 incl. Centor and excl. Glass Tubing (Acquisition of Centor was closed on September 1, 2015; Assumption: disposal of Glass Tubing Business will be closed by end of Financial
Slide 17: Key takeaways: Increased fundamental business momentum
Key takeaways: Increased fundamental business momentum Strong Q3 2015 Organic revenue growth in Q3 2015 at 3.1%, Q1-Q3 2015 at 0.9% Increased profitability: adjusted EBITDA margin up to 19.8% (Q3 2014: 19.2%) Higher returns quarter-over-quarter: adjusted EPS +26.9% Operating cash flow markedly up Q4
Slide 18: Questions & Answers
Questions & Answers
Slide 19: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.
Slide 20: Backup
GERRESHEIMER Backup
Slide 21: Development of net working capital
Development of net working capital1 Aug 31, 2015 Aug 31, 2014 EUR m EUR m Inventories 202.5 197.1 thereof prepayments made 6.5 7.1 Trade receivables 202.1 208.7 Trade payables 114.6 99.5 Payments received on account 35.7 41.7 of orders Net working capital 254.3 264.6 in % of LTM revenues 19.0 20.6 1
Slide 22: Development of inventories
Development of inventories Aug 31, 2015 Aug 31, 2014 EUR m EUR m Raw materials, consumables 50.7 54.6 and supplies Work in progress 23.5 23.8 Finished goods and 104.1 111.6 merchandise Prepayments made on 6.5 7.1 inventories Inventories 184.9 197.1 22
Slide 23: Q1-Q3 2015 revenue development
Q1-Q3 2015 revenue development Revenues by division Q1-Q3 2015 Q1-Q3 2014 Growth Organic EUR m EUR m in % growth1 in % Total Group 1,002.2 956.8 +4.7 +0.9 Plastics & Devices 459.3 449.5 +2.2 +1.7 Primary Packaging Glass 483.7 455.9 +6.1 +0.5 Life Science Research 74.9 64.7 +15.8 -1.5 1. Organic grow
Slide 24: Q1-Q3 2015 EBITDA and margin development
Q1-Q3 2015 EBITDA and margin development Adjusted EBITDA1 by division Q1-Q3 2015 Q1-Q3 2014 EUR m Margin in % EUR m Margin in % Total Group 191.0 19.1 174.8 18.3 Plastics & Devices 93.4 20.3 85.2 19.0 Primary Packaging Glass 103.1 21.3 95.2 20.9 Life Science Research 10.3 13.7 8.6 13.4 1. Earnings b
Slide 25: Q1-Q3 2015 earnings figures development
Q1-Q3 2015 earnings figures development Q1-Q3 2015 Q1-Q3 2014 Growth EUR m EUR m in % Adjusted EBITDA1 191.0 174.8 +9.3 Depreciation/amortization -74.8 -79.0 Restructuring/one-offs -14.2 -0.5 Portfolio optimization -1.3 0.0 EBIT 100.7 95.3 +5.6 Net finance expense and -45.5 -44.4 taxes Net income 55
Slide 26: Gerresheimer's current financing structure
Gerresheimer’s current financing structure 1. EUR 300m bond issued in May 2011, matures in May 2018 2. Revolving credit facility, initiated in June 2015, matures in June 2020 EUR 450m FX rate flexibility: can be drawn in euro and US-dollar Backed by an international bank consortium consisting of 9 m
Slide 27: Financial calendar and contact details
Financial calendar and contact details October 8, 2015 Interim Report 3rd Quarter 2015 R February 11, 2016 Annual Report Financial Year 2015 April 13, 2016 Interim Report 1st Quarter 2016 April 28, 2016 Annual General Meeting 2016 July 7, 2016 Interim Report 2nd Quarter 2016 October 6, 2016 Interim