Cph Group Ag Class A · SIX:CPHN
Cph Group Ag Class A — CPH Chemie + Papier Holding — FY2017 Earnings Presentation
37 slides from Cph Group Ag Class A's earnings presentation, Feb 20, 2018
Slide 1: Annual Results Media Conference
CPH Chemie + Papier Holding AG Annual Results Media Conference 20 February 2018 1
Slide 2: Programme
Programme 1 Introductory remarks Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht 2
Slide 3: The CPH Group 2017 in brief
The CPH Group 2017 in brief Sales increased in all three business divisions Positive consolidated EBIT result Net result benefited from non-recurring items Paper Division now Switzerland’s biggest recovered paper recycler Chemistry builds new Zvornik plant and acquires Armar Packaging ex
Slide 4: Programme
Programme 1 Introductory remarks Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht 4
Slide 5: Key figures
The CPH Group Key figures in CHF million 2016 2017 ± in CHF ± in % Net sales 434.8 469.8 35.0 8.0% 36.9 33.8 EBITDA -3.1 -8.6% 8.5% 7.2% 5.9 2.9 EBIT -3.0 -50.8% 1.4% 0.6% -7.7 16.2 Net result (including minorities) 23.9 n.a. -1.8% 3.4% Cash flow 28.3 14.5 -13.8 -48.8% Free cash flow 1.9 12.9 10.9 5
Slide 6: Business divisions
The CPH Group Business divisions Chemistry Paper Packaging Americas Europe Asia Europe Asia Americas Europe Asia 0 20 40 60 80 100 0 20 40 60 80 100 0 20 40 60 80 100 Net sales in 2017 CHF 75.5m Net sales in 2017 CHF 264.1m Net sales in 2017 CHF 130.2m Production CH/USA/CN/BIH Production CH Producti
Slide 7: Sales markets and operating sites
The CPH Group Sales markets and operating sites 78% Europe 2017 net sales 2017 net sales 16% Chemistry by region 12% The Americas by division 56% Paper 9% Asia 28% Packaging 1% Rest of the world 7
Slide 8: Highlights of 2017
The CPH Group Highlights of 2017 February March April Weir refurbishment project in First ground broken for Work begins on providing utilities Perlen to obtain new local hydro Zeochem‘s new Zvornik for the Chemistry Division’s former power licence. production plant. Fullerfeld site in Canton Aargau.
Slide 9: Highlights of 2017
The CPH Group Highlights of 2017 August September September Zeochem USA expands its production The new BLISTair single-dose The CPH Group presents at capacities for molecular sieves for disposable powder inhaler wins Investora in Zurich. oxygen purification purposes. three innovation awards October
Slide 10: Divisional income statements
The CPH Group Divisional income statements CPH Group Chemistry Paper Packaging in CHF million 2016 2017 2016 2017 ± in % 2016 2017 ± in % 2016 2017 ± in % Net sales 434.8 469.8 69.3 75.5 8.8 246.2 264.1 7.3 119.3 130.2 9.2 EBITDA 36.9 33.8 5.6 7.3 29.2 15.5 9.1 -41.4 14.4 15.5 7.7 EBITDA margin in %
Slide 11: The Chemistry Division
The Chemistry Division 11
Slide 12: Chemistry Business realignment in 2017
Chemistry Business realignment in 2017 Uetikon Louisville Fertilizer production Molecular Lianyungang terminated; other Standard sieves production transferred molecular sieves to USA/CH/CN/BIH Zvornik Molecular sieve powders Chromatography gels Special zeolites 12
Slide 13: The new Zvornik production plant
Chemistry The new Zvornik production plant New production facility in Bosnia-Herzegovina adjacent to main supplier Alumina Planned and built in a record 19 months Plant and equipment for manufacturing molecular sieve powders, chromatography gels and special zeolites relocated from Uetikon to Z
Slide 14: Chemistry Business realignment in 2018
Chemistry Business realignment in 2018 Rüti Divisional management Deuterated products Louisville High-performance gels Molecular Lianyungang sieves Standard molecular sieves Zvornik Molecular sieve powders Chromatography gels Special zeolites 14
Slide 15: Chemistry Business development
Chemistry Business development Net sales EBITDA 80 10 20% 8 16% 60 6 12% 40 4 8% 20 2 4% 0 0% 0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CHF million CHF million % of net sales Market environment Projects Strong demand for silicate chemistry products for Construction and service entry of
Slide 16: The Paper Division
The Paper Division 16
Slide 17: Paper Efficiency enhancement measures
Paper Efficiency enhancement measures Procurement Production Sales Water Recovered paper Logistics Own sources Former Utzenstorf volumes Transport Market and sorting facility The PM7: Europe’s most advanced paper machine Productivity 2009-2017 Electricity Heat Production volume in tonnes +74% Libera
Slide 18: Market leader in Switzerland's recovered paper market
Paper Market leader in Switzerland’s recovered paper market Contracts with recovered paper suppliers and customers of Papierfabrik Utzenstorf taken over when the company ceased production and distribution at the end of 2017 Perlen Papier now processes around 500 000 tonnes of recovered paper a y
Slide 19: Paper Business development
Paper Business development Net sales EBITDA 350 40 20.0% 300 30 15.0% 250 200 20 10.0% 150 10 5.0% 100 50 0 0.0% 0 -10 -5.0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CHF million CHF million % of net sales Market environment Projects Demand in Europe for publication paper Recovered paper
Slide 20: The Packaging Division
The Packaging Division 20
Slide 21: PERLAMED BLISTair earns distinctions
Packaging PERLAMEDTM BLISTair earns distinctions The CPhI Pharma Award First disposable single-dose powder inhaler consists of two thermoformed barrier films The German Packaging Award Can help tap new coated film markets Lower production costs than for multi-use devices Four innovation awar
Slide 22: Majority holding in Sekoya
Packaging Majority holding in Sekoya Perlen Packaging expanding into Latin America 60% equity holding acquired in Sekoya Indústria e Comércio Ltda of Brazil Sekoya was founded in 2012 and has about a dozen employees Sekoya is a long-standing distribution partner of Perlen Packaging and maint
Slide 23: Packaging Business development
Packaging Business development Net sales EBITDA 150 20 20.0% 120 16 16.0% 90 12 12.0% 60 8 8.0% 30 4 4.0% 0 0 0.0% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 CHF millipn CHF million % of net sales Market environment Projects Europe’s pharmaceuticals markets saw Transfer of work commission
Slide 24: Programme
Programme 1 Introductory remarks Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht 24
Slide 25: Consolidated income statement (I)
The CPH Group Consolidated income statement (I) in CHF million 2016 in % 2017 in % ± in CHF ± in % Net sales 434.8 100 469.8 100 35.0 8.0% Changes to semi-finished and finished inventories, other operating income and goods and services on own account 19.5 4 -6.6 -1 Total income 454.3 104 463.2 99 8.
Slide 26: Consolidated income statement (II)
The CPH Group Consolidated income statement (II) in CHF million 2016 2017 ± in CHF ± in % Earnings before interest and taxes (EBIT) 5.9 2.9 3.0 -50.8% in % of net sales 1.4% 0.6% Financial result -5.1 -6.6 Earnings before taxes and non-operating/extraordinary items 0.8 -3.7 -4.5 n.a. Non-operating r
Slide 27: Consolidated balance sheet
The CPH Group Consolidated balance sheet in CHF million (as of 31 December) 2016 in % 2017 in % ± in CHF ± in % Liquid funds 70.3 10 80.1 11 9.8 Other current assets 151.8 23 162.2 24 10.4 Fixed assets 450.3 67 455.3 65 5.0 Total assets 672.4 100 697.6 100 25.2 3.7% Current liabilities 92.4 14 105.4
Slide 28: Additional balance sheet information
The CPH Group Additional balance sheet information in CHF million Operational net working capital in 2017 Net financial debt in 2017 59.2 80.2 9.8 77.8 69.5 73.1 67.5 143.5 Receivables Inventories Payables ONWC Lqd funds + Shrt-tm fin. Long-tm fin. Net financial securities + liabilities liabilities
Slide 29: Cash flow statement
The CPH Group Cash flow statement in CHF million 2016 2017 ± in CHF ± in % Net result for the year (including minorities) -7.7 16.2 23.9 n.a. Depreciation, changes in provisions, other 36.0 -1.7 Cash flow 28.3 14.5 -13.8 -48.8% Change in net working capital -6.4 17.7 Cash flow from operating activit
Slide 30: Recommended dividend distribution
CPH Recommended dividend distribution Dividends distributed 2017 share price trends 2013 2014 2015 2016 2017 Dividend per share 0.65 0.65 0.60 0.65 0.65 (in CHF) Dividend yield 1.1% 1.2% 1.9% 1.6% 1.2% (as of 31.12) Consistent dividend policy Payment from tax-exempt capital contribution reserve
Slide 31: Appropriation of available earnings
CPH Appropriation of available earnings in CHF thousand 2016 2017 Earnings available to the Ordinary General Meeting -8 371 7 084 Release from capital contribution reserve 3 900 3 900 Dividend to shareholders -3 900 -3 900 Release from voluntary retained earnings 8 371 0 Balance of earnings to be ca
Slide 32: Financial strengths
The CPH Group Financial strengths Consistent pursuit of strategy is steadily further improving the Group’s financial balance Above-average (organic) growth in all three divisions Chemistry: realignment showing financial benefits; operational improvements of several million francs Paper: mid-
Slide 33: Financial strengths
The CPH Group Financial strengths Strong consolidated balance sheet (equity ratio 56.8%, target at least 50%) CHF 17.4 million improvement in net working capital; free cash flow of CHF 12.9 million Liquid funds of CHF 80.1 million Net debt further reduced; net debt ratio (factor 2.2) showing
Slide 34: Programme
Programme 1 Introductory remarks Peter Schaub 2 Business development Peter Schildknecht 3 Financial results Richard Unterhuber 4 Outlook Peter Schildknecht 34
Slide 35: Optimistic for 2018
The CPH Group Optimistic for 2018 Chemistry Paper Packaging Conclude strategic Newsprint prices raised Growing pharmaceuticals repositioning Recovered paper sourced markets Move into new Rüti site within Switzerland Expand Asian production Integrate Armar Higher sales and a positive
Slide 36: Thank you for your attention!
Thank you for your attention! 36
Slide 37: Investors' agenda for 2018
The CPH Group Investors’ agenda for 2018 14 March Ordinary General Meeting of CPH Chemie + Papier Holding AG in the KKL, Lucerne 26 May CPH Group 200th anniversary celebration in Uetikon 20 July 2018 Half-Year Report (to 30 June) 13 September Investors’ Meeting in Perlen 37
CPH Chemie + Papier Holding — FY2017 Earnings Presentation on 6ix