Slide 1: Q3 2017 Earnings Presentation
Q3 2017 Earnings Presentation Christian Fischer, CEO Rainer Beaujean, CFO October 11, 2017
Slide 2: Disclaimer
Disclaimer 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 or
Slide 3: Agenda
Agenda 1. CEO Change 2. Q3 2017 Highlights 3. Financial Review 4. Outlook 5. Appendix Q3 2017 Earnings 3
Slide 4: Preliminary remarks - Christian Fischer
Preliminary remarks - Christian Fischer Introduction & Background Transition well underway First take-aways Q3 2017 Earnings 4
Slide 5: Agenda
Agenda 1. CEO Change 2. Q3 2017 Highlights 3. Financial Review 4. Outlook 5. Appendix Q3 2017 Earnings 5
Slide 6: A challenging quarter revenue-wise, whilst stringent cost control supported margin stability
A challenging quarter revenue-wise, whilst stringent cost control and operational efficiencies supported margin stability Q3 revenues down 5.4% year-on-year at EUR 331.5m Down 4.3% organically Some of the unfavorable customer dynamics which impacted revenues in the first half of 2017 have lingered i
Slide 7: Customer dynamics within Inhalation Devices and Primary Packaging Glass US as main impact on Q3 2017 sales
Customer dynamics within Inhalation Devices and Primary Packaging Glass US as main impact on Q3 2017 sales EVOLUTION OF REVENUES AND ADJ. EBITDA MARGIN IN Q3 17 VS Q3 16 WHAT WE KNOW: % Adj. EBITDA Margin 23.2% 23.4% 27.9% 28.7% 20.6% 20.1% 350.4 331.5 We have not seen any structural changes 195.2 1
Slide 8: Agenda
Agenda 1. CEO Change 2. Q3 2017 Highlights 3. Financial Review 4. Outlook 5. Appendix Q3 2017 Earnings 8
Slide 9: Lower adjusted EBITA as main adjusted EPS driver
Lower adjusted EBITA(1) as main adjusted EPS(1) driver CHANGE EUR M Q3 2017 Q3 20161 in EUR M Adjusted EBITDA 77.6 81.2 -3.6 Depreciation -22.4 -21.7 -0.7 Adjusted EBITA 55.2 59.5 -4.3 Total one-off effects -0.8 0.1 -0.9 Amortization of fair value adjustments -8.1 -8.9 +0.8 Result of operations (EBI
Slide 10: EBITDA Leverage at 2.6x, unchanged versus November 30, 2016
EBITDA Leverage at 2.6x, unchanged versus November 30, 2016 and better as expected. Lower Net Debt year-on-year EUR M AUGUST 31, 2017 NOVEMBER 30, 2016 CHANGE IN % Total assets 2,255.9 2,374.3 -5.0% Equity 750.7 763.3 -1.7% Equity ratio 33.3% 32.1% +120bps Net working capital 223.9 200.3 + 11.8% NWC
Slide 11: Issue of EUR 250 million new promissory loan successfully completed
Issue of EUR 250 million new promissory loan successfully completed as of September 27, 2017 Net Debt Summary Existing structure as of August 31, 2017 IN EUR M FY 2016 August 31, 2017 August 31, 2017 Schuldschein: Fixed/variable interest rates, currently between 0.75% and 2.04%; PRO FORMA (maturity
Slide 12: Agenda
Agenda 1. CEO Change 2. Q3 2017 Highlights 3. Financial Review 4. Outlook 5. Appendix Q3 2017 Earnings 12
Slide 13: Drivers of Q4 2017 outperformance versus Q4 2016
Drivers of Q4 2017 outperformance versus Q4 2016 IDENTIFIED DRIVERS Q4 2017 P&D IDENTIFIED DRIVERS Q4 2017 PPG Large uptick in volumes, e.g. Peachtree project Moderate growth expectation in the US and European Pharma sales Bulk of tooling revenues to be generated in Q4 Improved performance in Emergi
Slide 14: Modelling 2017
Modelling 2017 CURRENT RISK SCENARIO FY 2017 Metrics 2017 LAST GUIDANCE FY 2017 ESTIMATED DELTA Revenues ~ EUR 1.4bn (FXN)1 ~ EUR -30m (FXN)1 Adj. EBITDA ~ EUR 320m (FXN)1 ~ EUR -10m (FXN)1 Adj. EPS (after non-controlling interests) ~ EUR 4.25 (FXN)1 ~ EUR -0.17 (FXN)1 Capex (% sales, FXN)1 ~ 8% UNC
Slide 15: Syringe offering for specialty pharma market opportunity further bolstered in July 2017
Syringe offering for specialty pharma market opportunity further bolstered in July 2017, through the addition of safety devices Glass product portfolio systematically upgraded Elite & Valor RTU Vials & cartridges Syringes product range continuously enhanced Gx Baked-on Metal-free glass Plastic COP T
Slide 16: Agenda
Agenda 1. CEO Change 2. Q3 2017 Highlights 3. Financial Review 4. Outlook 5. Appendix Q3 2017 Earnings 16
Slide 17: P&D margins improved at a high level, PPG margins impacted by lower production output
P&D margins improved at a high level, PPG margins impacted by lower production output during the quarter Revenues by division Organic EUR M Q3 2017 Q3 2016 GROWTH IN % Growth in % Total Group 331.5 350.4 -5.4 -4.3 - Of which P&D 184.1 195.2 -5.7 -4.9 - Of which PPG 147.8 155.2 -4.7 -3.2 Adjusted EBI
Slide 18: Development of net working capital
Development of net working capital AUG 31, 2017 NOV 30, 2016 AUG 31, 2016 EUR M EUR M EUR M 3 Inventories 163.5 155.4 188.0 thereof prepayments made 5.1 3.1 4.6 Trade receivables 221.6 232.1 238.4 Trade payables 119.1 157.0 136.3 Payments received on account 42.1 30.2 46.4 of orders Net working capi
Slide 19: Development of inventories
Development of inventories AUG 31, 2017 NOV 30, 2016 AUG 31, 2016 EUR M EUR M EUR M 1 Raw materials, consumables and supplies 51.5 49.9 56.1 Work in progress 20.5 18.4 22.8 Finished goods and merchandise 86.4 84.0 104.5 Prepayments made on inventories 5.1 3.1 4.6 Inventories 163.5 155.4 188.0 1. Inc
Slide 20: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted EPS after 1.83 1.34 1.95 2.44 2.621 3.08 2.89 3.41 4.072 non-controlling interests Cash flow from operating 5.26 3.74 5.09 4.13 5.53 4.67 5.04 6.49 5.52 activities per share Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0
Slide 21: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions Abbreviations and Definitions Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 22: Financial calendar and contact details
Financial calendar and contact details FINANCIAL CALENDAR February 22, 2018 Annual Report Financial Year 2017 April 12, 2018 Interim Report 1st Quarter 2018 April 25, 2018 Annual General Meeting 2018 July 12, 2018 Interim Report 2nd Quarter 2018 October 11, 2018 Interim Report 3rd Quarter 2018 CONTA
Slide 23: 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.