Cph Group Ag Class A · SIX:CPHN
Cph Group Ag Class A — CPH Chemie + Papier Holding — FY2023 Earnings Presentation
39 slides from Cph Group Ag Class A's earnings presentation, Feb 20, 2024
Slide 1: Media and Investors' Conference
CPH Chemie + Papier Holding AG Media and Investors’ Conference 20 February 2024 CPH Media and Investors’ Conference of 20 February 2024 1
Slide 2: Disclaimer
Disclaimer Investing in the shares of CPH Chemie + Papier Holding AG involves risks. Prospective investors are urged to consult their investment advisors and tax advisors prior to investing in CPH Chemie + Papier Holding AG shares. This document contains forward-looking statements which involve risk
Slide 3: Agenda
Agenda 1 Introduction Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Gerold Brütsch 4 Sustainability Gerold Brütsch 5 Outlook Peter Schildknecht CPH Media and Investors’ Conference of 20 February 2024 3
Slide 4: 2023 in brief
The CPH Group 2023 in brief ▪ Second-best business year in the Group’s history ▪ Strong earnings in Chemistry and Packaging; Paper with a solid EBIT result ▪ Net result for the year of CHF 79 million ▪ Investments in expanding Chemistry and Packaging production capacities ▪ CHF 100 million corporate
Slide 5: Agenda
Agenda 1 Introduction Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Gerold Brütsch 4 Sustainability Gerold Brütsch 5 Outlook Peter Schildknecht CPH Media and Investors’ Conference of 20 February 2024 5
Slide 6: The CPH Group 2023 at a glance
The CPH Group 2023 at a glance 624 16.3 83 Net sales EBITDA margin EBIT in CHF millions in % in CHF millions 79 1195 72.9 Net result Employees Equity ratio in CHF millions in FTEs in % CPH is an internationally active and diversified industrial group that is headquartered in Switzerland and was foun
Slide 7: Key figures
The CPH Group Key figures Net sales 750 in CHF millions 2023 2022 ± ± in % 600 Net sales 624 725 -101 -14.0% 450 EBITDA 102 131 -29 -22.2% 300 EBITDA margin 16.3% 18.1% 150 EBIT 83 112 -29 -26.4% EBIT margin 13.3% 15.5% 0 2019 2020 2021 2022 2023 Net result 79 101 -22 -21.8% CHF millions Earnings pe
Slide 8: Business divisions
The CPH Group Business divisions Chemistry Paper Packaging Key figures for 2023 in 124 22 262 37 237 43 CHF millions Net sales EBITDA Net sales CHF 78.2 Mio. EBITDA Net sales EBITDA CHF 9.5 Mio. 287 Strategy Differentiation Cost leadership Differentiation Market 3 1 3 position Number 3 worldwide Num
Slide 9: Strategy implementation
The CPH Group Strategy implementation Balance the shares Raise the share Reduce dependence Objectives of net sales among of total net sales on the Swiss franc the three divisions from outside Europe CHF 78.2 Mio. in currency terms CHF 9.5 Mio. 287 Expand Chemistry and Expand markets Expand capacitie
Slide 10: Business and operating locations
The CPH Group Business and operating locations Müllheim Gröbenzell Zvornik Utzenstorf Perlen Rüti Donghai Whippany Suzhou Shanghai Louisville Vadodara From 2024 Singapore Anápolis CPH Media and Investors’ Conference of 20 February 2024 10
Slide 11: Business development 2015-2023
The CPH Group Business development 2015-2023 CPH Group Chemistry Paper Packaging 750 150 500 250 Net sales 600 120 400 200 in CHF millions 450 90 300 150 300 60 200 100 150 30 100 50 0 0 0 0 150 25% 25 25% 100 25% 48 25% EBITDA 120 20% 20 20% 80 20% 40 20% in CHF millions 32 90 15% 15 15% 60 15% 15%
Slide 12: Income statement
The CPH Group Income statement CPH Group Chemistry Paper Packaging in CHF millions 2023 2022 ± in % 2023 2022 ± in % 2023 2022 ± in % 2023 2022 ± in % Net sales 624 725 -14.0% 124 110 +12.6% 262 384 -31.7% 237 231 +2.9% EBITDA 102 131 -22.2% 22 19 +15.2% 37 81 -54.3% 43 31 +38.7% EBITDA margin 16.3%
Slide 13: The Chemistry Division
The Chemistry Division CPH Media and Investors’ Conference of 20 February 2024 13
Slide 14: Chemistry: Market entry in India
Chemistry Market entry in India ▪ CPH Group entering the Indian market ▪ Acquisition of Sorbead India and Swambe Zvornik Donghai Chemicals, a distributor of molecular Rüti sieves and packaging materials and a Louisville manufacturer of chromatography gels Vadodara From 2024 ▪ Supplements the product
Slide 15: Chemistry: Business development
Chemistry Business development Net sales Market environment 140 ◼ Demand for molecular sieves still high in the 120 natural gas and ethanol industries 100 ◼ Deuterated compounds in demand in the 80 pharmaceutical sector, and for laboratory analyses 60 and use in OLED displays 40 ◼ Customer investmen
Slide 16: The Paper Division
The Paper Division CPH Media and Investors’ Conference of 20 February 2024 16
Slide 17: Perlen paper factory marks 150th anniversary
Paper Perlen paper factory marks 150th anniversary CPH Media and Investors’ Conference of 20 February 2024 17
Slide 18: Paper: Market and price trends in Western Europe
Paper Market and price trends in Western Europe Newsprint Magazine paper in million tonnes in million tonnes 10 10 8 8 6 6 Capacity 4 4 Demand 2 2 0 0 Source: PPPC Indexed (basis: 2010 = 100, in CHF) Indexed (basis: 2010 = 100, in CHF) 110 110 100 100 90 90 80 Prices 80 70 70 60 60 CPH Media and Inv
Slide 19: Paper: Business development
Paper Business development Net sales Market environment 400 ◼ Steep decline of more than 20% in European demand for publication paper 300 ◼ Predatory competition intensified through further increase in overcapacities 200 ◼ Structural change continues 100 ◼ Higher energy prices but lower recovered pa
Slide 20: The Packaging Division
The Packaging Division CPH Media and Investors’ Conference of 20 February 2024 20
Slide 21: Packaging: Innovations and investments reap rewards
Packaging Innovations and investments reap rewards ▪ PVC is the most thoroughly researched synthetic material for pharmaceutical packagings ▪ The new PERLALUX monoblister is Perlen Packaging’s first response to the growing demand for recyclable packaging solutions ▪ Development trials are under way
Slide 22: Packaging: Business development
Packaging Business development Net sales Market environment 250 ◼ High order volumes at the end of the prior year ensured 200 strong production plannability and high capacity utilization in 2023 150 ◼ Procurement prices declined 100 ◼ Energy costs up on 2022 levels 50 ◼ Customers reducing previously
Slide 23: Strategic success factors
The CPH Group Strategic success factors Leading market position Own production facilities in Europe, in relevant sales markets Asia and North and South America Diversification into multiple Consistent long-term leadership markets and business models through a stable management team Focus on markets
Slide 24: Agenda
Agenda 1 Introduction Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Gerold Brütsch 4 Sustainability Gerold Brütsch 5 Outlook Peter Schildknecht CPH Media and Investors’ Conference of 20 February 2024 24
Slide 25: Consolidated income statement (I)
2023 financial results Consolidated income statement (I) in CHF millions 2023 % 2022 % ± ±% Net sales 1 624 100.0 725 100.0 -101 -14.0% Other operating income 13 2.2 21 2.9 Change in inventories -8 -1.3 19 2.6 Cost of materials -303 -48.6 -397 -54.7 Cost of energy -66 -10.6 -73 -10.1 Gross profit 2
Slide 26: Consolidated income statement (II)
2023 financial results Consolidated income statement (II) in CHF millions 2023 % 2022 % ± ±% Operating result EBIT 83 13.3 112 15.5 -29 -26.4% Financial result 1 -3 -0.5 -4 -0.6 Non-operating result 2 12 1.9 -8 -1.1 Result before income taxes 92 14.7 100 13.8 -8 -8.2% Income taxes 3 -13 -2.0 1 0.1 N
Slide 27: Consolidated balance sheet
2023 financial results Consolidated balance sheet in CHF millions 31.12.2023 % 31.12.2022 % ± ±% Cash and cash equivalents 108 18.0 144 21.6 Trade receivables 1 71 11.9 94 14.1 Inventories 1 102 17.1 113 17.0 Other current assets 25 4.1 31 4.7 Fixed assets 292 48.9 284 42.6 Total assets 598 100.0 66
Slide 28: Consolidated cash flow statement
2023 financial results Consolidated cash flow statement in CHF millions 2023 % 2022 % ± ±% Net result 79 86.0 101 148.6 -22 -21.8% Non-cash items 11 12.3 28 41.8 Cash flow 90 98.3 129 190.4 -39 -30.2% Change in net working capital 20 21.3 -31 -46.8 Cash flow from operating activities 1 110 119.6 98
Slide 29: Information for shareholders
The CPH Group Information for shareholders Market capitalization at 31.12.2023 Share price development 2019-2023 in CHF millions 120 100 510 80 60 40 20 6 000 000 registered shares of CHF 0.20 nominal value 0 2019 2020 2021 2022 2023 in CHF CPHN SPIX adjusted Dividend policy and dividends Shareholde
Slide 30: Sound value with further growth potential
The CPH Group Sound value with further growth potential Group net sales at constant currency 10.4% below prior year owing to lower demand for paper Group EBITDA of CHF 102 million thanks to strong earnings in Chemistry and Packaging EBITDA margin for Chemistry of 17.8% through further business growt
Slide 31: Agenda
Agenda 1 Introduction Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Gerold Brütsch 4 Sustainability Gerold Brütsch 5 Outlook Peter Schildknecht CPH Media and Investors’ Conference of 20 February 2024 31
Slide 32: Implementing sustainability strategy: Environment
The CPH Group Implementing sustainability strategy E Environment ▪ Carbon intensity reduced by 89% since 2014 to 17 tonnes per CHF million of net sales; CO2 emissions per tonne of paper production are one quarter of those of peer group ▪ Circular economy: 415 500 tonnes of external waste used for pr
Slide 33: Implementing sustainability strategy: Social
The CPH Group Implementing sustainability strategy S Social ▪ High Engagement Index of 76% ▪ Many long-serving employees (16% of workforce with over 20 years of service) ▪ 52 apprentices in 10 professions underline social commitment ▪ Highly diverse workforce with employees from 46 nations ▪ Employe
Slide 34: Implementing sustainability strategy: Governance
The CPH Group Implementing sustainability strategy G Governance ▪ Business ethics a top priority; code of conduct and anti-corruption policy ▪ Sustainable long-term value creation anchored in the Articles of Incorporation as a corporate purpose (by the 2023 AGM) ▪ Stable shareholder base, with 34% h
Slide 35: Effective climate protection measures
Sustainability Effective climate protection measures CO2 emissions1 Steam from renewable sources (right scale) (left scale) Use of fossil energy sources (right scale) CO2 in tonnes GWh 90 000 540 80 000 480 70 000 420 60 000 360 50 000 300 40 000 240 30 000 180 20 000 120 10 000 60 0 0 2013 2014 201
Slide 36: Agenda
Agenda 1 Introduction Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Gerold Brütsch 4 Sustainability Gerold Brütsch 5 Outlook Peter Schildknecht CPH Media and Investors’ Conference of 20 February 2024 36
Slide 37: Outlook for 2024: Still many uncertainties
Outlook for 2024 Still many uncertainties CPH Group Chemistry Paper Packaging ◼ Still sizeable ◼ Economic outlook ◼ Demand for graphic ◼ Global blister pack uncertainties in the uncertain paper products still market expected to markets declining in Europe grow by an annual 3- ◼ Costs of raw material
Slide 38: Thank you for your attention
Questions Thank you for your attention CPH Media and Investors’ Conference of 20 February 2024 38
Slide 39: Key dates and contacts
Key dates 20 March 2024 CPH Chemie + Papier Holding AG Annual General Meeting in Lucerne 11 June 2024 CPH Group Investors’ Day in Perlen 18 July 2024 2024 Half-Year Report (to 30 June) 25 February 2025 Media and Investors’ Conference and publication of the 2024 Annual Report Contacts CPH Chemie + Pa
CPH Chemie + Papier Holding — FY2023 Earnings Presentation on 6ix