Semperit Ag Holding · VIE:SEM
Semperit — Q3 2022 Earnings Presentation
35 slides from Semperit's earnings presentation, Nov 16, 2022
Slide 1: Semperit Group Q1-3 2022 Investor Presentation
SEMPERIT GROUP Q1-3 2022 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO Kristian Brok, COO 16 November 2022 1
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance & Strategy (p.12) Outlook (p.22) Appendix (p.25) 2 Investor Presentation Q1-3 2022 I 16 November 2022 I Investor Relations
Slide 3: Operational highlights Q1-3 2022
Operational highlights Q1-3 2022 Top-line growth in all four Industrial segments offset by steep decline in Medical Industrial Sector with strong comparables despite first signs of economic downturn (weakening order intake, cost inflation) Prices in Medical Sector decline further due to excess inven
Slide 4: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance & Strategy (p.12) Outlook (p.22) Appendix (p.25) 4 Investor Presentation Q1-3 2022 I 16 November 2022 I Investor Relations
Slide 5: Strong Industrial Sector performance
Strong Industrial Sector performance Revenues in EUR m Quarterly development of EBITDA (EURm) and EBITDA margin (%) Q1-3’19 –Q1-3’22 +31.0% +36.4% 41.4 20.7 558.4 17.4 21.3 19.1 17.3 16.1 17.1 15.9 16.4 15.5 32.4 426.2 14.5 15.0 409.4 28.2 27.1 12.1 26.4 369.0 24.5 10.5 10.3 22.0 23.2 20.5 20.6 20.7
Slide 6: Semperflex Q1-3 2022
Semperflex Q1-3 2022 High performance level during the first nine months 29.0% 24.4% 27.2% 27.3% 24.5% 24.5% 22.8% 19.9% 22.5% 23.3% EBITDA in EUR m 20.0% 18.1% 19.3% 20.4% EBITDA margin 15.9% Semperflex 27.3 19.6 21.5 13.9 14.5 14.0 11.4 12.3 13.9 11.2 13.9 10.8 8.7 9.3 7.2 Q1’19 Q2’19 Q3’19 Q4’19
Slide 7: Sempertrans Q1-3 2022
Sempertrans Q1-3 2022 Strong operating performance on the back of late-cycle tailwinds, notably in the mining industry 14.2% 16.7% 15.4% 12.8% 13.1% EBITDA in EUR m EBITDA margin Sempertrans 9.0% 7.6% 9.2% 5.4 3.3% 3.7 5.3 4.6 5.4% 5.0 1.3 3.8% 4.5% 3.7 2.5% 1.6 2.1 0.0% 1.4% 1.4 0.8 1.0 0.8 1.0 1.3
Slide 8: Semperseal Q1-3 2022
Semperseal Q1-3 2022 Stronger signs of economic downturn due to weak construction industry 14.1% 14.7% 14.7% EBITDA in EUR m 13.2% 10.0% 12.8% 12.6% EBITDA margin 12.0% 8.3% 9.8% Semperseal 7.5% 7.9% 4.2 6.5% 3.9 4.1 3.8 3.4 3.0% 3.3 3.2 3.2 2.5 2.9 3.0% 2.4 2.4 1.7 0.6 0.9 Q1’19 Q2’19 Q3’19 Q4’19 Q
Slide 9: Semperform Q1-3 2022
Semperform Q1-3 2022 Results driven by cyclicality and product mix 22.6% 18.3% EBITDA in EUR m 19.6% 18.4% 17.5% 19.6% 17.7% 13.9% EBITDA margin Semperform 12.2% 12.9%15.4% 15.2% 14.1% 12.2% 10.3% 4.8 5.0 5.0 4.0 4.1 4.0 3.6 4.1 3.5 3.1 3.3 3.2 2.7 2.5 2.5 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q3’20 Q
Slide 10: Medical Sector / Sempermed segment Q1-3 2022
Medical Sector / Sempermed segment Q1-3 2022 Weak volumes and prices back to pre-corona level 57.7% 51.6% 54.6% 37.5% 45.9% EBITDA in EUR m 19.7% 21.7% EBITDA margin Sempermed 0.8% 2.3% -0.1% 6.1% 105.3 115.3 12.6% 2.5% -1.2% 83.0 44.4 56.9 18.2 23.7 13.3 -0.9 0.6 1.8 -0.1 4.8 2.2 -26.9% 1 -19.6 Q1’
Slide 11: Medical Sector – Next steps towards separation
Medical Sector – Next steps towards separation EBITDA development (EUR m) 277 44 Sharp sales price decline for protective 289 gloves brought special cycle to abrupt end Low demand due to overstocked markets 67 Higher inflation led to cost pressure aggravated by provisions (EUR 11m 6 25 e.g. ga
Slide 12: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance & Strategy (p.12) Outlook (p.22) Appendix (p.25) 12 Investor Presentation Q1-3 2022 I 16 November 2022 I Investor Relations
Slide 13: Key CFO Agenda Items
Key CFO Agenda Items Proactive working capital management at structurally higher level going forward Special attention to managing & the economic downturn Disciplined cash management and efficient capital allocation Strict cost control Investments to further enhance in digitalisation and efficiency
Slide 14: Revenue development
Revenue development in EUR m -10% 21.9 16.3 30.7 80.1 926.1 829.6 -245.4 +36.4% -47.5% +46.6% +38.7% +24.0% +24.4% Industrial Sector Medical Sector Q1-3 2021 Semperflex Sempertrans Semperseal Semperform Sempermed Q1-3 2022 Revenue 252.2m 109.8m 113.3m 83.0m 271.2m Q1-3 2022 % change of each segment
Slide 15: Strong performance in Industrial against steep decline in Medical
Strong performance in Industrial against steep decline in Medical in EUR m -74% 30.9 3.8 2.4 324.3 -1.2 7.2 85.9 -281.4 Q1-3 2021 Semperflex Sempertrans Semperseal Semperform Sempermed Corporate Q1-3 2022 EBITDA 324.3 37.4 6.5 10.7 9.9 277.4 -17.7 Q1-3 2021 EBITDA 68.3 10.3 9.5 12.3 -4.0 -10.5 85.9
Slide 16: Major drivers of operating performance
Major drivers of operating performance -74% 324.3 Total Sales Effect: EUR -96.5m 55.8 -36.1 -152.2 -34.5 thereof: -34.0 Industry -11.3 85.9 Price Volume -14.8 EUR +137.0m EUR +12.0m -11.3 Medical Price Volume EUR -289.2m EUR +43.8m EBITDA Price Effect Volume Change in Cost of Energy (used Logistics
Slide 17: Overview of key financial KPIs, Q1-3 2019 – Q1-3 2022
Overview of key financial KPIs, Q1-3 2019 – Q1-3 2022 Q1-3 2019 Q1-3 2020 Q1-3 2021 Q1-3 2022 Δ 19 vs. 22 EBITDA, in EUR m 60.4 118.5 324.3 85.9 42.2% EBITDA margin, in % 9.3 18.0 35.0 10.3 1.0PP EBIT, in EUR m -13.7 159.5 290.0 -9.0 34.3% EBIT margin, in % -2.1 24.3 31.3 -1.1 1.0PP Earnings
Slide 18: Free cash flow development
Free cash flow development Operating cash flow significantly reduced after steep decline in Medical Sector Pre-tax operating cash flow impacted by continuing inventory build-up Growing Capex resulted in higher investment cash flow 265 233 240 121 110 70 111 -20 30 20 -32 -12 -48 -40 Q1-3’20 Q1
Slide 19: Quarterly CAPEX development 2021-2022
Quarterly CAPEX development 2021-2022 • Industrial continues to receive higher Capex, notably Semperflex and Semperseal • Stable maintenance Capex for Sempermed being in the process of separation • FY2022 Capex will exceed prior-year level CAPEX per segment in EUR m 41.8 31.2 16.8 17.1 Semperflex 2.
Slide 20: Working Capital overview
Working Capital overview Components of Working Capital in EUR m 17.0%1 16.1%1 19.6%1 21.0%1 22.0%1 232.8 222.2 237.4 209.5 190.3 203.1 207.3 198.9 Inventories 177.2 186.8 132.6 144.1 134.5 Trade receivables 111.3 98.8 -78.9 -95.3 -96.0 Trade payables -113.5 -118.6 30 Sept 2021 31 Dec 2021 31 March 2
Slide 21: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 September 2022 Balance sheet 30/09/2022: EUR 841m Balance sheet 31/12/2021: EUR 959m Cash and cash equivalents at EUR 144m – strong buffer to weather economic headwinds and keep M&A optionality Non-cur
Slide 22: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance & Strategy (p.12) Outlook (p.22) Appendix (p.25) 22 Investor Presentation Q1-3 2022 I 16 November 2022 I Investor Relations
Slide 23: Management agenda
Management agenda Status Quo Strong results in Industrial Sector Q1-3’22 against the backdrop of: likely Economic downturn Sempermed impacted by and consumer Seasonality deteriorations changed market dynamics sentiment Potential supply Energy crisis in Europe, Geopolitical crises constraints and red
Slide 24: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2022 / 2023 Judit Helenyi, Director Investor Relations 16.11.2022 Report on Q1-3 2022 22.03.2023 Publication of 2022 annual financial statements +43 1 79777 - 310 www.semperitgroup.com/en/ir 25.04.2023 Annual General Meeti
Slide 25: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance & Strategy (p.12) Outlook (p.22) Appendix (p.25) 25 Investor Presentation Q1-3 2022 I 16 November 2022 I Investor Relations
Slide 26: Sectors and Group: Q1-3 2022 vs Q1-3 2021
Sectors and Group: Q1-3 2022 vs Q1-3 2021 1) 2) 3) Industrial Sector Medical Sector Semperit Group in EUR m Q1-3 20221 Q1-3 2021 % Q1-3 2022 Q1-3 2021 % Q1-3 20221 Q1-3 2021 % Revenue 558.4 409.4 +36.4% 271.2 516.7 -47.5% 829.6 926.1 -10.4% EBITDA 100.4 64.5 +55.6% -4.0 277.4 n.a. 85.9 324.3 -73.5%
Slide 27: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q3 FY Q3 FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 1) 2020 2020 2022 2019 2020 2020 adj. 2020 adj. 2021 2021 2021 2021 2021 2022 2022 in EUR m adj.2) adj.3) adj.4) Revenue 840.6 199.1 219.8 238.2 270.5 927.6 323.1 337.7 265.3 256.1 1,1
Slide 28: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2022 Q2 2022 Q3 2022 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 in EUR m Revenue 61.1 59.7 53.8 48.0 222.7 46.8 51.5 46.6 45.0 189.9 54.7 59.7 57.7 68
Slide 29: Semperform and Semperseal (adj. where applicable)
Semperform and Semperseal (adj. where applicable) Semperform (Window and door profiles, Handrails) - before 2020 FY Q1 Q2 Q3 FY Q1 Q2 Q3 Q4 FY 2017 2018 2018 2018 2018 2019 2019 2019 2019 2019 in EUR m adj. Revenue 185.0 47.5 50.7 50.3 192.2 49.9 50.5 47.8 42.4 190.6 EBITDA 21.5 4.5 7.3 6.2 21.9 7.9
Slide 30: Sempermed (adj. where applicable)
Sempermed (adj. where applicable) Sempermed (Gloves) Q3 Q2 Q3 FY Q1 Q2 Q4 FY Q1 Q4 Q1 Q2 Q3 Q4 FY Q3 2022 2019 2) 2020 2020 5) 2020 Q1 2022 Q2 2022 7) 2019 2019 2019 2019 2020 2020 2021 2021 2021 2021 2021 adj. in EUR m adj.1) adj.3) adj. 4) adj.6) Revenue 71.5 76.4 78.2 67.3 293.3 77.5 92.2 118.4 1
Slide 31: Key figures 2011-2021
Key figures 2011-2021 Key performance figures 2016 2017 2018 2019 2020 in EUR m 20111) 2012 2013 2014 3) 20153) 2021 adj.4) adj.5) adj.6) adj.7) adj.8) Revenue 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 927.6 1,182.2 EBITDA 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 208.6 361.8 EBIT
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 250 Ø YTD ø 2019 ø 2020 2022 200 150 100 50 ø 2021 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for ill
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 225 200 ø 2019 ø 2020 ø 2021 200 ø 2019 ø 2020 ø 2021 175 175 150 150 125 125 100 100 75 75 Ø YTD Ø YTD 2022 50 2022 50 25 25 Fuel Oil 1% Sulphur
Slide 34: Product / market position / segment overview, FY 2021
Product / market position / segment overview, FY 2021 in EUR m Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform Semperseal Sempermed Revenue 1.182.2 240.5 / 20%1) 104.5 / 9%1) 90.6 / 8%1) 120.5 / 10%1) 626.1 / 53%1) EBITDA 361.82) 51.3 6.8 12.4 11.6 301.1 Emplo
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