Alzchem Group Ag · XETR:ACT
Alzchem — FY2018 Earnings Presentation
34 slides from Alzchem's earnings presentation, Mar 29, 2019
Slide 1: AlzChem Group AG Analyst Presentation 2018/10-12
2018 / 10-12 AlzChem Group AG Ulli Seibel, CEO Andreas Niedermaier, CFO March 29, 2019
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements By reviewing this information, you acknowledge that the information may be updated, changed or corrected in the discretion of AlzChem Group AG (hereinafter “the Company”) at any time and should not be relied on for any investment decisi
Slide 3: Agenda
AGENDA Analyst presentation 2018/10-12 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION 3
Slide 4: Highlights: Summary of operative business full year 2018
HIGHLIGHTS Summary of operative business full year 2018 FACTS & NUMBERS FOR CALENDAR YEAR 2018 • Record year in sales and EBITDA • Successful focus on Specialty Chemicals • Well prepared for start of own distribution of Creamino • Major CAPEX projects on time and on budget • Solid sales growth: 375.
Slide 5: Own distribution of Creamino
OWN DISTRIBUTION OF CREAMINO Well prepared for the start EFFECTS ON VOLUME EFFECTS ON MARGIN • Q1 2019: one-time effect expected • Evonik´s wholesale margin to shift to AlzChem that previous distribution partners empty • New production facility gives favorable their warehouses economies of scale • D
Slide 6: Strong position for further growth
STRONG POSITION FOR FURTHER GROWTH IP and patent ownership Integrated production • Owner of Creamino patents • Backwards integrated production • Production know-how • Total quality control • Competence in energy metabolism • Two dedicated plants • Chemical and nutritional R&D • Availability of criti
Slide 7: Progress of construction projects
PROGRESS OF CONSTRUCTION PROJECTS Projects on budget and on time for start in summer 2019 New production facility Production of highly will triple the actual corrosive production capacity chlorinated nitriles with attractive margin Investment secured with long term customer contracts ALZCHEM GROUP –
Slide 8: Financial overview 2018
FINANCIAL OVERVIEW 2018 Result within guidance 2018 ALZCHEM GROUP 2017 2018 yoy % 2017 II 2018 II yoy % 2017 2018 ² yoy % Guidance 2018 Q4 10-12 7-12 7-12 1-12 1-12 SALES (in M€) 81.2 88.0 8.4% 171.1 180.0 5.2% 353.9 375.2 6.0% 364.5 - 378.7 EBITDA (in M€) 1 7.4 8.1 8.6% 17.7 18.4 3.8% 45.7 49.4 8.0
Slide 9: Agenda
AGENDA Analyst presentation 2018/10-12 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION 9
Slide 10: Basics & Intermediates segment
BASICS & INTERMEDIATES SEGMENT Our integrated system DESCRIPTION The "Basics & Intermediates" segment comprises the production of basic and intermediate products that are marketed as independent products - for example in agriculture, steel production and the automotive sector - and as raw materials
Slide 11: Basics & Intermediates segment: financial overview
BASICS & INTERMEDIATES SEGMENT Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS 8.8% -0.6% 10-12 2017 + 8.0% + 0.4% + 0.4% 35,7 37,0 37,8 34,2 36,9 35,9 33,0 vs. Volume Price FX 29,3 30,3 10-12 2018 140,9 140,0 -115.9% 1-12 2017 - 0.1% - 0.2% - 0.3% vs. 5,6 1-12 2018 Volu
Slide 12: Specialty Chemicals segment
SPECIALTY CHEMICALS SEGMENT Our growth focus DESCRIPTION The "Specialty Chemicals" segment produces and sells high-quality growth products in the area of specialty chemicals. SELECTED PRODUCTS ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION 12
Slide 13: Specialty Chemicals segment: financial overview
SPECIALTY CHEMICALS SEGMENT Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS +10.8% 12.8% 10-12 2017 + 7.0% + 3.0% + 0.8% 53,9 56,8 49,8 48,7 47,9 45,1 48,9 vs. 41,2 44,1 10-12 2018 Volume Price FX 209,4 185,7 18.7% 1-12 2017 vs. + 12.8% +1.2% - 1.0% 50,7 1-12 2018 Volume
Slide 14: Other & Holding segment
OTHER & HOLDING SEGMENT Further activities DESCRIPTION The "Other & Holding" segment comprises all other activities that cannot be allocated to the other segments. The segment offers infrastructure and energy supply services at our locations for the chemicals segments and for external customers. ALZ
Slide 15: Other & Holding segment: financial overview
OTHER & HOLDING SEGMENT Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS -9.6% 6,8 6,8 7,0 6,8 6,5 7,0 -5.7% 10-12 2017 - 11.2% + 1.5% ± 0% 6,2 6,3 6,1 vs. 27,4 Volume Price FX 10-12 2018 25,8 1-12 2017 - 7.1% + 1.5% ± 0% vs. Volume Price FX 1-12 2018 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 16: Balance sheet
BALANCE SHEET AlzChem Group (m€) ASSETS LIABILITIES 313.6 313.6 304.5 304.5 280.2 280.2 68.4 Equity 74.0 57.9 149.9 171.0 Non-current-assets 142.7 145.0 164.0 Non-current liabilities 146.3 75.6 Inventories 71.4 78.9 Trade receivables 35.0 52.3 34.4 76.0 85.4 81.2 Current liabilities Other current-as
Slide 17: Cash flow
CASH FLOW Growth CAPEX is the basis for further growth COMMENTS • Higher operating cash flow due to good business performance • Higher investing cash flow primarily due to main projects like Creamino and NITRALZ® ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION 17
Slide 18: Outlook 2019: Sales and earnings growth to continue
OUTLOOK 2019 Sales and earnings growth to continue (m€) SALES Adj. EBITDA COMMENTS 398.9 • Sales growth will be organically driven both by Specialty Chemicals and Basics & 389.9 Intermediates business 375.2 51.9 • Further reduced dependence on Basics & 49.4 Intermediates 46.5 • Raw material markets
Slide 19: Outlook 2019: Underlying assumptions
OUTLOOK 2019 Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed – no economic turmoil (USA, China) • Stability in product registration and energy legislation • US dollar forecast: 1.15 € / US$ Factors to watch • Continued cl
Slide 20: Financial calendar
FINANCIAL CALENDAR Upcoming dates 2019 MAY 10 Quarterly Statement 1st Quarter 2019 2019 MAY 14 General Meeting 2019 2019 MAY 15 Frühjahrskonferenz 2019, Frankfurt 2019 AUG 14 Half-Year Financial Report 2019 2019 NOV 14 Quarterly Statement 3rd Quarter 2019 2019 NOV 25-27 Deutsches Eigenkapitalforum A
Slide 21: Sales
m€ m€ m€ 1,543 ~375 ~49 ~35 EMPLOYEES SALES EBITDA OPERATING CASHFLOW ALZCHEM SPECIALTY PRODUCTS CHEMICALS 56% ARE SOLD WORLDWIDE SALES JAN 1 – DEC 30, 2018 INNOVATION SINCE BASICS & INTERMEDIATES 1908 OTHERS & HOLDING 37% 7% All financial indicators relating to January to December 2018
Slide 22: Thank you for your attention
CONTACT THANK YOU Investor Relations T +49 8621 86-2888 FOR YOUR ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 23: Agenda
AGENDA Analyst presentation 2018/10-12 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION 23
Slide 24: Balance sheet
BALANCE SHEET AlzChem Group ASSETS 31.12.2017 30.06.2018 31.12.2018 EQUITY & LIABILITIES 31.12.2017 30.06.2018 31.12.2018 NON-CURRENT ASSETS EQUITY Intangible assets 1.0 1.0 0.9 SHARE TO THE SHAREHOLDERS 55.7 72.6 67.0 Tangible assets 115.1 123.2 144.3 Non-controlling interests 2.2 1.4 1.4 Investmen
Slide 25: Income statement
INCOME STATEMENT AlzChem Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 YTD 01.01.2017 - 01.04.2017 - 01.07.2017 - 01.10.2017 - 01.01.2018 - 01.04.2018 - 01.07.2018 - 01.10.2018 - ALZCHEM GROUP (IN T€) 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2018 30.06.2018 30.09.2018 31.12.2018 Deviation (Q4) 31.12.2017 3
Slide 26: Cash flow
CASH FLOW AlzChem Group CASHFLOW [m€] 1-6 / 2017 1-6 / 2018 yoy % 7-12 / 2017 7-12 / 2018 yoy % 1-12 / 2017 1-12 / 2018 yoy % OPERATING CASHFLOW 14.0 15.4 10.0% 16.6 19.2 15.7% 30.7 34.7 13.0% INVESTING CASHFLOW -7.4 -15.7 112.2% -17.3 -24.2 39.9% -24.8 -39.9 60.9% FREE CASHFLOW 6.6 -0.3 -104.5% -0.
Slide 27: Segment overview by quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group SALES [m€] Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 7-9 2018 10-12 2018 1-12 2017 1-12 2018 yoy % YTD YTD SPECIALTY CHEMICALS 48.7 47.8 45.1 44.1 53.9 56.8 49.8 48.9 185.7 209.4 12.8% BASICS & INTERMEDIATES 35.7 37.0 37.8 30.3 34.2 36.9 35.9 33.0 140.
Slide 28: Pension accounting (IFRS)
PENSION ACCOUNTING (IFRS) 2.54% in M€ 107.2 110.0 1.1 1.9 -0.7 0.5 -19.5 90.5 PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION IN FINANCIAL PROVISION COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31 Dec, 2017 MENTS 31 Dec, 2018 31 Dec, 2018 EBITDA (PER
Slide 29: Executive Team
Executive Team Experienced management to deliver on the next phase ULLI SEIBEL ANDREAS NIEDERMAIER KLAUS ENGLMAIER CURRENT POSITION CEO (since 2009) CFO (since 2010) COO (since 2016) WITH ALZCHEM SINCE1 2009 1999 1988 DEGREE Industrial Engineering Industrial Engineering Mechanical Engineering • Comp
Slide 30: AlzChem Group locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies TROSTBERG (GER) SUNDSVALL (SE) ATLANTA (USA) SHANGHAI (CN) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE ALZCHEM GROUP – 2018/10-12 ANALYST PRESENTATION WALDKRAIBURG (GER) 30
Slide 31: Fully Integrated Business Model (Verbund-System)
Fully Integrated Business Model (“Verbund”- System) Ability to adapt production to satisfy changing end market needs THE “VERBUND-SYSTEM” • Fully integrated production network • The output of a production step serves as the basic input for the next production step. • Cost benefits • Highly specializ
Slide 32: Specialty Chemicals: our products and markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS A feed additive for broilers and pigs Feed additive Premium brand for creatine monohydrate as a food supplement in sports nutrition Food supplements Alpha lipoic acid for dog
Slide 33: Intermediates: our products and markets
OUR PRODUCTS AND MARKETS Successful with proven and new products in various industries MAIN PRODUCTS DESCRIPTION END-MARKETS Calcium carbide-based mixtures for hot metal desulphurization Steel industry INTERMEDIATES Fuel for airbags, key production of the intermediate product Automotive BASICS & Pha
Slide 34: AlzChem share
ALZCHEM SHARE Share Details 29.03.2019 ISIN / WKN DE000A0AHT46 / A0AHT4 SHAREHOLDER STRUCTURE % LIVIA Corporate Development SE 37.7 TICKER SYMBOL SFP1 HDI Vier CE GmbH 20.4 TYPE AND NUMBER OF 101,763,355 bearer shares SHARES with no par value (par value shares) Four two na GmbH 15.8 STOCK Regulated