Slide 1: Semperit Group Q1-3 2018 Investor Presentation
SEMPERIT GROUP Q1-3 2018 / Q3 2018 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 21 November 2018 1
Slide 2: Agenda
Agenda Restructuring and Transformation update (p.3) Operational Highlights (p.9) Financial performance (p.13) Management agenda (p.26) Appendix (p.29) 2 Investor Presentation Q1-3 2018 I 21 November 2018 I Investor Relations
Slide 3: Restructuring and Transformation update
Restructuring and Transformation update Operating EBITDA shows again an improvement y-o-y, both Q1-3 and Q3 > 600 initiatives to reach 10% EBITDA margin target by end of 2020 Positive impact from restructuring initiatives YTD 2018: – Operational Excellence (World Class Manufacturing) of € 9m –
Slide 4: SemperMOVE10 matrix logic of tracking
Matrix logic of SemperMOVE10 tracking – clear Segment responsibility Sales Operations Procurement Growth Other SG&A Total Sempertrans Sponsor: Management board member Lead: Segment Head Semperform Sponsor: Management ▪ Segment-led Programme (lines) across various Functional board member Lead: Segmen
Slide 5: Restructuring and Transformation update for Industrial Sector
Restructuring and Transformation update for Industrial Sector Operating EBITDA shows an improvement y-o-y (Q1-3) Profitability in Q3 slightly impacted by 23.0 EBITDA margin adj. Semperflex increased competition and claim EBITDA adj., in EURm provision Following transformation programme, flexib
Slide 6: Example for market success: Further expansion at Semperflex
Example for market success: Further expansion at Semperflex Responding to global demand and growing market share • Further expansion in Europe’s largest hose factory in Odry, Czech Republic Overall production capacity of Odry now 100 million meters per year, 2/3 of total segment capacity Investm
Slide 7: Restructuring and Transformation update for Medical Sector
Restructuring and Transformation update for Medical Sector EBITDA margin adj. Focus predominantly on operational EBITDA adj., in EURm efficiency and implementation of restructuring measures, including: Fixing quality issues (product and process) OEE improvements (overall equipment effectivenes
Slide 8: Agenda
Agenda Restructuring and Transformation update (p.3) Operational Highlights (p.9) Financial performance (p.13) Management agenda (p.26) Appendix (p.29) 8 Investor Presentation Q1-3 2018 I 21 November 2018 I Investor Relations
Slide 9: Profitability overview
Profitability overview 23.4% 23.8% 18.6% 19.9% 17.4% Semperflex 13.7 14.9 8.7 10.5 9.3 23.0 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 18.8 17.9 14.4% 15.3% 11.0% 12.2% Semperform 9.6% Industrial 12.5 12.0 13.3% 12.6% 8.5% 7.3 Sector 9.6% 5.2 3.6 4.5 6.2 9.4% Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 6.4
Slide 10: Overview Semperflex and Sempertrans
Overview Semperflex and Sempertrans Q1-3 2018 vs. Q1-3 2017 Revenue Profitability in Q3 slightly impacted by current period 175 increased competition and claim provision Semperflex Revenue Decline in order book due to lower market 154 demand and stock overhang at customers’ previous period EBITD
Slide 11: Overview Semperform and Sempermed
Overview Semperform and Sempermed Q1-3 2018 vs. Q1-3 2017 Revenue Revenue increased, mainly due to 148 Semperform current period price adjustments as a result of raw Revenue 142 materials price increases previous period Increasing costs for raw materials still a EBITDA burden for profitability c
Slide 12: Agenda
Agenda Restructuring and Transformation update (p.3) Operational Highlights (p.9) Financial performance (p.13) Management agenda (p.26) Appendix (p.29) 12 Investor Presentation Q1-3 2018 I 21 November 2018 I Investor Relations
Slide 13: Q1-3 2018 Financials / Profitability Overview
Q1-3 2018 Financials / Profitability Overview Change in in EUR m Q1-3 2018 Q1-3 2017 Change EUR m Revenue 670.3 670.0 +0.0% 0.3 EBITDA adjusted1) 45.8 32.9 +39.1% 12.9 EBITDA margin adjusted 6.8% 4.9% +1.9 PP – EBITDA 41.9 97.8 -57.1% -55.8 EBITDA margin 6.3% 14.6% -8.3 PP – EBIT adjusted1) 17.5 7.9
Slide 14: Revenue development Q1-3 2018
Revenue development Q1-3 2018 in € m +0.0% Revenue development +21.4 -4.6 -22.7 670.0 +6.2 670.3 Semperflex: mainly higher volume translates into higher revenue Sempertrans: Revenue decrease driven by lower volume, mainly impacted by closure of site in France and low Industrial Sector Medical Se
Slide 15: From reported to operating EBITDA / EBIT Q1-3 2018
From reported to operating EBITDA / EBIT Q1-3 2018 No one-off effects in Q3 2018. in € m 45.8 17.5 41.9 +3.9 +7.9 +55.2 Reported Expense for Adj. -45.5 EBITDA closure of EBITDA Reported Impairment Expense for Adj. EBIT Q1-3 2018 Sempertans Q1-3 2018 EBIT Sempermed closure of Q1-3 2018 site in China
Slide 16: Operating EBITDA development Q1-3 2018
Operating EBITDA development Q1-3 2018 in € m +39.1% +0.1 45.8 +6.8 -4.1 +3.0 32.9 +7.1 Q1-3 2017 Semperflex Sempertrans Semperform Sempermed Corporate Q1-3 2018 Operating EBITDA Q1-3 20171) 32.9m 30.9m -3.2m 17.9m 3.3m -16.0m Operating EBITDA 38.0m 3.6m 18.0m -0.8m -13.0m 45.8m Q1-3 20182) Operatin
Slide 17: Q3 2018 Financials / Profitability Overview
Q3 2018 Financials / Profitability Overview Change in in EUR m Q3 2018 Q3 2017 Change EUR m Revenue 221.7 208.4 +6.4% +13.4 EBITDA adjusted1) 13.1 10.4 +25.8% +2.7 EBITDA margin adjusted 5.9% 5.0% +0.9 PP – EBITDA 13.1 0.5 >100% +12.6 EBITDA margin 5.9% 0.2% +5.7 PP – EBIT adjusted1) 4.3 1.7 >100% +
Slide 18: Revenue development Q3 2018
Revenue development Q3 2018 in € m +6.4% Revenue development +6.6 +1.9 +3.3 +1.6 221.8 208.4 Semperflex: Mainly higher volume translates into higher revenue Sempertrans: increase due to improved order quality Industrial Sector Medical Sector Semperform: Increase mainly due to price adjustments
Slide 19: Operating EBITDA development Q3 2018
Operating EBITDA development Q3 2018 in € m +25.8% +1.0 -2.5 13.1 +3.8 -0.2 10.4 +0.6 Q3 2017 Semperflex Sempertrans Semperform Sempermed Corporate Q3 2018 Operating EBITDA Q3 20171) 10.4m 8.7m -1.4m 5.2m 1.6m -3.7m Operating EBITDA 9.3m 2.4m 6.2m -0.9m -3.9m 13.1m Q3 20182) Operating EBITDA 17.4% 6
Slide 20: Operating EBITDA and EBITDA margin by quarter
Operating EBITDA and EBITDA margin by quarter1) EBITDA margin EBITDA development EBITDA, in EURm EBITDA in Q3 2018 higher than in 17.0 Q3 2017 15.8 Q3 in general a weaker quarter due to 13.1 seasonality 10.4 EBITDA margin of 5.9% well below target of ~10% by end of 2020 7.1% 7.5% 5.9% All in
Slide 21: CAPEX Overview
CAPEX Overview CAPEX per Segment in € m 32.9 Semperflex Sempertrans 13.7 24.5 Semperform 19.9 7.9 Sempermed 17.6 Other 2.9 15.5 11.8 4.1 7.4 9.2 6.4 1.5 2.7 1.5 11.7 4.2 6.6 5.1 6.4 2.1 0.6 0.0 0.5 0.1 0.4 1.6 0.1 1.9 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 21 Investor Presentation Q1-3 2018 I 21 No
Slide 22: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 19.3%1) 17.1%1) 20.9%1) 22.2%1) 20.7%1) 180.9 191.0 181.2 168.7 152.4 161.6 165.6 162.8 Inventories 147.1 159.7 117.8 125.8 131.8 123.7 Trade receivables 103.6 -96.2 -110.9 -106.5 -106.4 -105.3 Trade payables 30 Sept 2017 31 Dec 2017 31 M
Slide 23: Net debt significantly reduced
Net debt significantly reduced Balance sheet structure 30 September 2018 Financial Transformation Euro Cash Pool implemented in several Balance sheet total: € 852 m European countries Early repayment of one tranche of a corporate Schuldschein of USD 37m in November 2018 Fixed 359 339 Equity (inc
Slide 24: Financial Policy Framework
Financial Policy Framework Focus on Value Management € € EBITDA margin Equity ratio of >30% Net debt/EBITDA < 3.5x of 10% on Group level by end of 2020 Working Capital Total Capex of € 50-60m to revenue < 25%, for FY 2019 focus to stay closer to 20%1) mostly for maintenance 1) Working ca
Slide 25: Agenda
Agenda Restructuring and Transformation update (p.3) Operational Highlights (p.9) Financial performance (p.13) Management agenda (p.26) Appendix (p.29) 25 Investor Presentation Q1-3 2018 I 21 November 2018 I Investor Relations
Slide 26: Management agenda 2018
Management agenda 2018 Focus on SemperMOVE10 to reach 10% EBITDA margin by end of 2020 through the following initiatives: Operations initiatives Sales initiatives Procurement, Increase output / Overall Volume growth SG&A initiatives Equipment Effectiveness (OEE) (new markets, new regions) Sust
Slide 27: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Group Financial Calendar 2019 Stefan Marin, Head of Investor Relations 22.03.2019 Publication of 2018 annual financial statements +43 1 79777 - 210 08.05.2019 Annual general meeting, Vienna www.semperitgroup.com/en/ir 14.05.2019 Dividend pay
Slide 28: Agenda
Agenda Restructuring and Transformation update (p.3) Operational Highlights (p.11) Financial performance (p.15) Management agenda (p.28) Appendix (p.31) 28 Investor Presentation Q1-3 2018 I 21 November 2018 I Investor Relations
Slide 29: Overview price indices rubber
Overview price indices rubber Price movements for raw materials1) became highly unpredictable Price indices Synthetic rubber Price index Natural Latex rubber 300 300 275 275 250 250 225 225 200 200 ø 2017 175 ø 2017 175 ø YTD 150 150 2018 125 ø YTD 125 2018 ø 2016 100 ø 2016 100 75 75 SBR Europe SBR
Slide 30: Overview price indices carbon black / wire rod
Overview price indices carbon black / wire rod Significant increase for raw materials1) used in industrial segments Price index carbon black Price index wire rod 375 200 350 325 175 300 275 ø YTD 2018 150 ø YTD 250 ø 2017 2018 225 200 125 ø 2017 175 150 ø 2016 100 ø 2016 125 100 75 75 Heavy fuel oil
Slide 31: Hybrid Capital Line with B & C
Hybrid Capital Line with B & C Overview – Contract between Semperit AG Holding and B & C Holding GmbH (100% subsidiary of B & C Industrieholding GmbH) signed on 12th Dec. 2017, Total volume of up to € 150m – Can be drawn in up to three tranches until end of 2018 – Interest rate agreed amounts to 5
Slide 32: Sectors and Group: Q1-3 2018 vs Q1-3 2017
Sectors and Group: Q1-3 2018 vs Q1-3 2017 Industrial Sector Medical Sector Semperit Group1) in EUR m Q1-3 2018 Q1-3 2017 % Q1-3 2018 Q1-3 2017 % Q1-3 2018 Q1-3 2017 % Revenue 432.7 409.8 +5.6% 237.5 260.2 -8.7% 670.3 670.0 +0.0% EBITDA 55.8 31.0 +79.9% -0.8 79.4 – 41.9 97.8 -57.1% EBITDA margin 12.9
Slide 33: Sectors and Group: Q3 2018 vs Q3 2017
Sectors and Group: Q3 2018 vs Q3 2017 Industrial Sector Medical Sector Semperit Group1) in EUR m Q3 2018 Q3 2017 % Q3 2018 Q3 2017 % Q3 2018 Q3 2017 % Revenue 141.3 129.5 +9.1% 80.4 78.8 +2.0% 221.7 208.4 +6.4% EBITDA 17.9 4.6 >100% -0.9 -0.4 >100% 13.1 0.5 >100% EBITDA margin 12.6% 3.6% +9.0 PP -1.
Slide 34: Semperit Group per quarter as reported
Semperit Group per quarter as reported Semperit Group (reported) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 in EUR m 20151) 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 2018 2018 Revenue 914.7 219.5 219.2 208.9 204.8 852.4 229.3 232.3 208.4 204.2 874.2 220.9 227.6 221.7 EBITDA 96.2 26.7 26.
Slide 35: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q2 FY Q1 Q3 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 20151) 2018 2018 in EUR m adj. 2) adj. 2) adj.2) adj. 2) adj. 2) adj. 3) adj.3) adj. 3) adj. 3) adj. 3) adj. 4) Revenue 914.7 219
Slide 36: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 Q3 2017 2017 20151) 20162) 20162) 20162) 20162) 20162) 2017 2017 2017 2018 2018 2018 in EUR m adj. 3) adj. 3) Revenue 203.4 47.8 48.8 43.4 44.9 184.9 53.5 53.2 46.8 52.5 206.1 58.8 62.8 53.4 EBITDA 4
Slide 37: Semperform and Sempermed (adj. where applicable)
Semperform and Sempermed (adj. where applicable) Semperform Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 Q3 2017 2017 20151) 20162) 20162) 20162) 20162) 20162) 2017 2017 2017 2018 2018 2018 in EUR m adj.5) adj. 5) Revenue 152.8 43.2 47.6 44.3 38.1 173.1 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3 EBITDA 24.3
Slide 38: Key figures 2008-2017
Key figures 2008-2017 Key performance figures Adj. Adj. in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153) 20164) 20175) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 EBITDA margin 13.4% 17.5% 16.3% 13.4% 13.1
Slide 39: Shareholder Structure
Shareholder Structure Semperit is listed on the Vienna Shareholder structure Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of B & C Privatstiftung, an Austrian based private foundation / trust < 42% Primary focus of B & C is pursuing the > 54% fou