Semperit Ag Holding · VIE:SEM

Semperit — Investor Presentation (March 2019)

42 slides from Semperit's investor presentation, Mar 22, 2019

  1. Slide 1: Semperit Group FY 2018 Investor Presentation

    SEMPERIT GROUP FY 2018 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 22 March 2019 1

  2. Slide 2: Highlights 2018: Operating EBITDA +41%

    Highlights 2018: Operating EBITDA +41%  Revenue increased by 0.5% to € 878.5m  Semperit Group bottomed out on operating EBITDA and EBIT level € € – 3 out of 4 segments profitabel € – Significant increase of profitability  Reported EBITDA € 46.4m,  Significant net loss of € 80m, operating EBITDA

  3. Slide 3: Agenda

    Agenda Restructuring and Transformation update (p.4) Operational highlights (p.11) Financial performance (p.18) Management agenda (p.29) Appendix (p.32) 3 Investor Presentation FY 2018 I 22 March 2019 I Investor Relations

  4. Slide 4: Transformation programme making a material impact, Group performance bottomed out

    Transformation programme making a material impact, Group performance bottomed out on operating EBITDA / EBIT level  On the back of successful transformation programme, encouraging developments  Achieve target profitability by end of 2020 (run rate 2021)  Revenue +0.5% for Group +0.5% +40.6%  +6%

  5. Slide 5: >30 transformation projects to enhance competitiveness

    >30 transformation projects to enhance competitiveness … Operations Processes & Growth Profitability Excellence Steering ▪ Enhance ▪ Centrally ▪ Continuation of steered Supply the successful ▪ Implementation customer of Finance intimacy for Chain SemperMove10 Transformation organic growth Excellence

  6. Slide 6: >700 transformation initiatives as part of SemperMOVE10

    … translate in >700 transformation initiatives as part of SemperMOVE10 Operations Sales Procurement, SG&A  Increase output / Overall  Volume growth  Sustainable customer/supplier Equipment Effectiveness (OEE) (new markets, new regions) relationship  Production footprint  Customer benefits/value

  7. Slide 7: Operations

    Operations Reduction of production complexity 1 production site closure in 4 fully consolidated entities In total 3 production sites Germany in 2019, less in 2017/18 to now 44 less in 2017/18 to now 14 no further closings planned Overview production sites France: Sempertrans site closed. China: Semp

  8. Slide 8: Sales

    Sales Sales transformation initiatives target three core topics Topics Levers Examples 1 Growth ▪ Strategic focus on new markets, regions, and ▪ Strategic cooperation with key customer segments. customers (Semperflex) 2 ▪ Optimisation of customer and product portfolio, ▪ Track belts for snow cats Po

  9. Slide 9: Procurement

    Procurement  Overview – From autumn 2017 to now  > 300 procurement initiatives  > Low double digit savings potential (up to 2021)  Single-digit savings achieved in 2018  Single-digit additional savings planned for 2019  Permanent tracking of all initiatives by corporate controlling  Examples

  10. Slide 10: Agenda

    Agenda Restructuring and Transformation update (p.4) Operational highlights (p.11) Financial performance (p.18) Management agenda (p.29) Appendix (p.32) 10 Investor Presentation FY 2018 I 22 March 2019 I Investor Relations

  11. Slide 11: Revenue development

    Revenue development in € m +0.5% Revenue development +24.0 +7.2 878.5 874.2  Semperflex: mainly higher volume -1.2 -25.7 translates into higher revenue  Sempertrans: Revenue decrease Industrial Medical driven by lower volume, mainly Sector Sector impacted by closure of site in France and low produ

  12. Slide 12: Industrial Sector

    Industrial Sector Strong improvement in Industrial Sector: +30.6% operating EBITDA yoy, € +17.6m € 57.6m € 75.2m 23.0 Industrial 18.8 17.2 17.9 Sector 15.9 15.6 15.3% 12.5 12.0 13.3% 12.6% 12.3% 11.6% 11.4% 9.6% 9.4% Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 EBITDA adj., in € m EBITDA margin a

  13. Slide 13: Semperflex

    Semperflex FY 2018 vs. FY 2017 +18.2% operating EBITDA yoy, € +7.5m € 41.4m € 48.9m EBITDA adj., in € m 23.4% 23.8% EBITDA margin adj. 21.8% 19.8% 18.6% 19.9% 19.8% Semperflex 17.4% 13.7 14.9 11.7 10.5 10.5 10.9 8.7 9.3 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Revenue  Strong increase in rev

  14. Slide 14: Sempertrans

    Sempertrans FY 2018 vs. FY 2017 Turnaround at operating EBITDA yoy, € +9.7m € –5.3m € 4.4m EBITDA adj., in € m 6.4% EBITDA margin adj. Sempertrans 1.4% 1.4% 2.1% 2.4 2.1% 0.5 0.8 0.7 0.6 -1.4 -2.4 -2.1 -3.9% -6.4% -6.6% Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Revenue Sempertrans 145  Turnar

  15. Slide 15: Semperform

    Semperform FY 2018 vs. FY 2017 +1.7% operating EBITDA yoy, € +0.4m € 21.5m € 21.9m EBITDA adj., in € m 15.5% 14.4% EBITDA margin adj. 12.2% Semperform 10.9% 11.0% 8.5% 9.6% 8.9% 7.8 7.3 5.2 6.2 5.0 4.5 3.9 3.6 Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’18 Revenue 192  Continuous business developm

  16. Slide 16: Sempermed

    Medical Sector / Sempermed segment FY 2018 vs. FY 2017 Decreasing operating EBITDA yoy, € –5.7m € 1.8m € –3.9m EBITDA adj., in € m 1.9% 2.0% 1.8% EBITDA margin adj. Sempermed 0.0% 1.7 1.6 Medical 0.0 1.4 -0.9 Sector -1.5 -1.3 -1.1% -3.1 -2.0% -1.7% -4.2% Q1’17 Q2’17 Q3’17 Q4’17 Q1’18 Q2’18 Q3’18 Q4’

  17. Slide 17: Agenda

    Agenda Restructuring and Transformation update (p.4) Operational highlights (p.11) Financial performance (p.18) Management agenda (p.29) Appendix (p.32) 17 Investor Presentation FY 2018 I 22 March 2019 I Investor Relations

  18. Slide 18: Financials and Profitability Overview

    Financials and Profitability Overview Change in in € m FY 2018 FY 2017 Change EUR m Revenue 878.5 874.2 +0.5% 4.3 EBITDA adjusted1) 50.3 35.8 +40.6% 14.5 EBITDA margin adjusted 5.7% 4.1% +1.6 PP – EBITDA 46.4 100.2 -53.7% -53.8 EBITDA margin 5.3% 11.5% -6.2 PP – EBIT adjusted1) 15.4 -0.8 – 16.2 EBIT

  19. Slide 19: Revenue development

    Revenue development in € m +0.5% +24.0 +7.2 878.5 874.2 -1.2 -25.7 Industrial Medical Sector Sector +5.6%1) +11.6% -0.8% +3.9% -7.6% FY 2017 Semperflex Sempertrans Semperform Sempermed FY 2018 Revenue 230.0m 144.8m 192.2m 311.5m FY 2018 ► 1) Change of each segment / sector for FY 2018 vs FY 2017. 19

  20. Slide 20: From reported to operating EBITDA / EBIT

    From reported to operating EBITDA / EBIT EBITDA: small one-off effect from the closure of the Sempertrans production site in China EBIT: heavily impacted by impairment at Sempermed segment in € m 50.3 46.4 +3.9 15.4 +7.8 +55.2 Reported Expense for Adj. EBITDA closure of EBITDA FY 2018 Sempertans FY

  21. Slide 21: Operating EBITDA development

    Operating EBITDA development in € m +40.6% +0.4 50.3 -5.7 +2.6 +9.7 35.8 +7.5 FY 2017 Semperflex Sempertrans Semperform Sempermed Corporate FY 2018 Operating EBITDA FY 20171) 35.8m 41.4m -5.3m 21.5m 1.8m -23.6m Operating EBITDA FY 20182) 48.9m 4.4m 21.9m -3.9m -21.0m 50.3m Operating EBITDA margin FY

  22. Slide 22: Operating EBITDA and EBITDA margin by quarter

    Operating EBITDA and EBITDA margin by quarter +40.6% yoy, € +14.5m Operating EBITDA development € 35.8m € 50.3m  Strong increase in EBITDA 17.0  EBITDA margin of 5.7% for FY 2018 well 15.8 below target of ~10% by end of 2020 (run 12.9 13.1 rate 2021) 10.4 9.6 7.1% 7.5%  All industrial segments po

  23. Slide 23: Operating EBITDA by quarter 2018 vs. 2017

    Operating EBITDA by quarter 2018 vs. 2017 2017 EBITDA adj., in € m 2018 EBITDA adj., in € m Operating EBITDA development +31.4% • Continuous improvements for +64.5% operating EBITDA for 4 17.0 quarters in a row 15.8 +25.8% • Third and fourth quarter in 12.9 13.1 general weaker due to seasonality 10.

  24. Slide 24: Investments (Capex) by year

    Investments (Capex) by year • Capex in FY 2017 and FY 2018 higher as outdated production capacity was replaced as well as increase of production capacity • Planned Capex for FY 2019: about € 40m, half the volume of FY 2018 Other Other 1.0% Sempermed 1.0% 16.0% Sempermed 34.0% Semperflex Semperflex 4

  25. Slide 25: Working Capital Overview

    Working Capital Overview Components of Working Capital in € m 17.4%1) 20.9%1) 21.6%1) 20.6%1) 21.0%1) 180.9 191.0 181.2 152.4 184.3 161.6 165.6 162.8 159.7 150.4 Inventories 125.8 131.8 123.7 103.6 101.6 Trade receivables -67.7 Trade payables -110.9 -106.5 -106.4 -105.3 31 Dec 2017 31 March 2018 30

  26. Slide 26: Balance sheet structure and financial profile

    Balance sheet structure and financial profile Balance sheet structure Financial Transformation Balance sheet 2018: € 769m  Euro Cash Pool implemented in several Balance sheet 2017: € 853m European countries  Early repayment of one tranche of a corporate Schuldschein of USD 37m in November 2018 280

  27. Slide 27: Financial Policy Framework

    Financial Policy Framework Focus on Value Management % € €  EBITDA margin  Equity ratio of >30%  Net debt/EBITDA < 3.5x of 10% at Group level level by end of 2020 (run rate 2021)  Working Capital  Total Capex of about € 40m to revenue < 25%, in FY 2019 focus to stay closer to 20%1)  mostly for

  28. Slide 28: Agenda

    Agenda Restructuring and Transformation update (p.4) Operational highlights (p.11) Financial performance (p.18) Management agenda (p.29) Appendix (p.32) 28 Investor Presentation FY 2018 I 22 March 2019 I Investor Relations

  29. Slide 29: Management agenda 2019

    Management agenda 2019 Focus on SemperMOVE10 to reach 10% EBITDA margin at Group level by end of 2020 (run rate 2021) Operations initiatives Sales initiatives Procurement,  Increase output / Overall  Volume growth SG&A initiatives Equipment Effectiveness (OEE) (new markets, new regions)  Sustaina

  30. Slide 30: Contact and financial calendar

    Contact and financial calendar Investor Relations Semperit 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 payment d

  31. Slide 31: Agenda

    Agenda Restructuring and Transformation update (p.4) Operational highlights (p.11) Financial performance (p.18) Management agenda (p.29) Appendix (p.32) 31 Investor Presentation FY 2018 I 22 March 2019 I Investor Relations

  32. Slide 32: 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 2018 150 Ø 2018 150 125 125 ø 2016 100 ø 2016 ø YTD 100 ø YTD 2019 2019 75 75

  33. Slide 33: 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 ø YTD 325 2019 175 ø YTD 300 2019 275 ø 2018 ø 2018 150 250 ø 2017 ø 2017 225 200 125 175 150 ø 2016 100 ø 2016 125 100 75 75

  34. Slide 34: 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 Unused part 20m 1.75% – Can be drawn in up to three tranches until end of 2019 – Interest ra

  35. Slide 35: Sectors and Group: FY 2018 vs FY 2017

    Sectors and Group: FY 2018 vs FY 2017 Industrial Sector Medical Sector Semperit Group1) in EUR m FY 2018 FY 2017 % FY 2018 FY 2017 % FY 2018 FY 2017 % Revenue 567.0 537.0 +5.6% 311.5 337.1 -7.6% 878.5 874.2 +0.5% EBITDA 71.3 42.9 +66.1% -3.9 77.9 – 46.4 100.2 -53.7% EBITDA margin 12.6% 8.0% +4.6 PP

  36. Slide 36: 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 Q4 FY 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 20151) 2018 2018 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 91

  37. Slide 37: Semperflex and Sempertrans (adj. where applicable)

    Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY 2017 2017 20151) 20162) 20162) 20162) 20162) 20162) 2017 2017 2017 2018 2018 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 5

  38. Slide 38: Semperform and Sempermed (adj. where applicable)

    Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY 2017 2017 20151) 20162) 20162) 20162) 20162) 20162) 2017 2017 2017 2018 2018 2018 2018 2018 in EUR m adj.5) adj.5) Revenue 152.8 43.2 47.6 44.3 38.1 173.1

  39. Slide 39: Key figures 2008-2018

    Key figures 2008-2018 Key performance figures 2016 2017 2018 in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153) adj. 4) adj. 5) adj. 6) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 EBITDA margin 13

  40. Slide 40: Investments by quarter

    Investments by quarter  FY 2017: overall Capex of € 75m, approx. 40% for Semperpflex, >30% Sempermed Semperflex  FY 2018: overall Capex of € 81m, approx. 50% for Semperflex and mixing Sempertrans  FY 2019: overall Capex of € about 40m planned Semperform Sempermed CAPEX per segment Corporate in €

  41. Slide 41: 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

  42. Slide 42: Product / market position / segment overview, FY 2018

    Product / market position / segment overview, FY 2018 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform Sempermed Revenue € 878m € 230m / 26%1) € 145m / 17%1) € 192m / 22%1) € 312m / 35%1) EBITDA adj.2) € 50m € 49m € 4m € 22m € -4m Employees 2) 6,773 1,776 / 27%

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