SGL Carbon SE · XETR:SGL
SGL Carbon — SGL Group — FY2011 Earnings Presentation
35 slides from SGL Carbon's earnings presentation, Mar 22, 2012
Slide 1: Year End Analyst Meeting
Year End Analyst Meeting Frankfurt March 22, 2012 Presentation Analyst Meeting 2012
Slide 2: 2011 Sales and Earnings Improved in Changed Economic Framework
SGL Group 2011 Sales and Earnings Improved in Changed Economic Framework Business Development Achievements Group Targets for 2011 reached: • Further expansion of global presence • Double-digit growth in sales to €1,540 million • Strengthening of regional concept • EBIT: €160 million • Continuation o
Slide 3: 2011 Strategic Development
SGL Group 2011 Sales and Earnings Improved in Changed Economic Framework Strategic Development • PP: Scheduled expansion of carbon and graphite production facility in Banting (Malaysia) • GMS: Expansion of our isostatic graphite production capacity in Germany and China • CFC: Expansion of CFC activi
Slide 4: Reinstatement of Dividend Payment for FY 2011 proposed to AGM
Dividend Reinstatement of Dividend Payment for FY 2011 proposed to AGM Dividend payment to be reinstated • Annual General Meeting 2011: „We intend to pay a dividend for fiscal year 2011 if no macroeconomic disturbances occur" • 2012: Major growth projects will be completed Creating foundation for
Slide 5: 2011 Financials
2011 Financials Presentation Analyst Meeting 2012
Slide 6: 2011 Results for the Group – Income Statement
SGL Group 2011 Results for the Group – Income Statement in € million 2011 2010 Sales revenue 1,540.2 1,381.8 EBITDA* 231.7 194.8 Operating profit (EBIT)* 160.4 128.4 Result from At-Equity accounted investments -32.6 -11.9 Net financing result -49.2 -43.3 Profit before tax 83.7 73.2 Net profit after
Slide 7: 2011 Results for the Group – Key Balance Sheet and Cash Flow Figures
SGL Group 2011 Results for the Group – Key Balance Sheet and Cash Flow Figures 31.12.2011 31.12.2010 Total assets (in € million) 2,271.3 2,113.3 Equity attributable to the shareholders of the parent company 1,041.1 864.4 (in € million) Equity ratio (in %) 45.8 40.9 Total liquidity (in € million) 241
Slide 8: 2011 Results for Performance Products (PP)
SGL Group 2011 Results for Performance Products (PP) in € million 2011 2010 Sales revenue 845.7 762.6 EBITDA 179.9 177.5 Operating profit (EBIT) 143.3 144.1 Return on sales (in %) 16.9 18.9 • Sales revenue increase: 11%, currency adjusted 13% – driven by continued improvement in graphite electrode v
Slide 9: 2011 Results for Graphite Materials & Systems (GMS)
SGL Group 2011 Results for Graphite Materials & Systems (GMS) in € million 2011 2010 Sales revenue 468.7 395.9 EBITDA 101.6 54.9 Operating profit (EBIT) 84.0 36.9 Return on sales (in %) 17.9 9.3 • Sales revenue increase: 18%, currency adjusted 17% – very high demand from all customer industries, esp
Slide 10: 2011 Results for Carbon Fibers & Composites (CFC)
SGL Group 2011 Results for Carbon Fibers & Composites (CFC) in € million 2011 2010 Sales revenue 220.2 218.5 EBITDA* -5.3 4.8 Operating profit (EBIT)* -16.9 -6.6 Return on sales (in %) -7.7 -3.0 • Sales revenue increase: 1%, currency adjusted 3% – growth negatively impacted by developments in wind e
Slide 11: 2011 Results for Central T&I and Corporate Costs
SGL Group 2011 Results for Central T&I and Corporate Costs in € million 2011 2010 Sales revenue/other revenue 5.6 4.8 Central T&I Costs -12.9 -12.6 Corporate Costs -37.1 -33.4 • Central T&I costs remained at nearly same level as in 2010 • Corporate costs in 2010 included €4.8 million extraordinary g
Slide 12: Financing Structure, Balance Sheet Ratios and Cash on Hand
Financing Structure, Balance Sheet Ratios and Cash on Hand Allow Continuation of Growth Path SGL Group established a solid long term financial structure in May 2007 • €200 million Corporate Bond at EURIBOR plus 125 bps (maturity 2015) • €145.5 million* Convertible Bond at 0.75%, conversion price of
Slide 13: Capital Expenditure by Business Area
Ensuring the Future Capital Expenditure by Business Area Major investment focus in 2011: Capital expenditure and depreciation (in € million) • PP: – Continued build up of new GE + CA €240m Capex (left hand column) production facility in Malaysia Depreciation (right hand column) • GMS: – Isostatic gr
Slide 14: Majority Acquisition of Fisipe
Majority Acquisition of Fisipe – Expansion of precursor production for carbon fiber Presentation Analyst Meeting 2012
Slide 15: Expansion of Precursor Production through Majority Takeover of Fisipe
SGL Group: Expansion of Precursor Production for Carbon Fiber through Majority Takeover of Fisipe • Expansion of own supply of raw materials for carbon fiber production • Strengthening of European precursor production base • Strategic step within precursor multi-sourcing strategy Transaction: • Take
Slide 16: Fisipe - Fibras Sintéticas de Portugal S.A. Facts & Figures
Fisipe - Fibras Sintéticas de Portugal S.A. Facts & Figures Company • Established manufacturer of acrylic fiber specialties in Europe since 1973 • Listed since 1985 (86.2% Negofor, 10.5% single investor, 3.3% free float) • Well developed logistics: Based near Lisbon with direct access to port facili
Slide 17: Backward Integration strengthens Technology Base along the Carbon Fiber Value Chain
SGL Group: Backward Integration strengthens Technology Base along the Carbon Fiber Value Chain Multi-sourcing strategy secures own supply of raw materials Established JVs for raw material supply of industrial carbon fibers (50K) EPG (JV with Lenzing AG) in Kelheim/Germany (SGL share 44%) MSP (
Slide 18: Precursor Raw Material for Carbon Fiber Production
Precursor Raw Material for Carbon Fiber Production Precursor: Most important raw material Cost calculation model for 50K carbon fiber for carbon fibers • Determines material properties of carbon fibers Shipping Overhead 1% Other • Primary factor for carbon fiber 3% 3% manufacturing costs Depreciatio
Slide 19: Overview Carbon Fiber Producers: An Oligopolistic High-tech Market
Overview Carbon Fiber Producers An oligopolistic High-tech Market Established Carbon Fiber Producers by Region North America Europe Asia SGL Group is the only integrated European Carbon Fiber Producer Presentation Analyst Meeting 2012
Slide 20: Expansion along the entire Value Chain
SGL Group Expansion along the entire Value Chain • Global trends trigger dynamic growth of carbon fibers: Energy efficiency Resource conservation Material substitution • Various new industrial applications support strong growth Automotive industry (CFRP passenger cell for BMW i3 and i8) En
Slide 21: The only integrated European Carbon Fiber Producer
SGL Group The only integrated European Carbon Fiber Producer Carbon Fibers & Composite Materials Composite Components Aerospace & Defense • HITCO (100%) Raw Carbon Composite Material Fiber Materials PAN Carbon Prepreg Industrial & Precursor Fiber Preform Energy • SGL Rotec (74.9%) • Fisipe (target •
Slide 22: Outlook
Outlook 2012 Presentation Analyst Meeting 2012
Slide 23: Outlook 2012 strongly dependent on macroeconomic development in H2
SGL Group Outlook 2012 strongly dependent on macroeconomic development in H2 Group • Assuming economic recovery and stabilization in H2, sales and EBIT to grow further • Achievement of targeted minimum Group ROS of 12% difficult due to weaker H1 • Relief from lower net financial costs and loss from
Slide 24: Business Area Outlook and Key Assumptions 2012
SGL Group Business Area Outlook and Key Assumptions 2012 PP GMS CFC • Sales growth driven mainly by • Stable sales compared to record • More than 20% sales growth, GE pricing, ROS comparable to 2011, ROS comfortably ≥ 10% targeting break even but 2011 dependent on wind energy market Graphite Electro
Slide 25: Mid Term Horizon
Mid Term Horizon Presentation Analyst Meeting 2012
Slide 26: Group Sales to increase by more than 10% p.a.
Mid Term Horizon Group Sales to increase by more than 10% p.a.* Advanced Materials targeted to reach ~ 50% of Group sales €m 3000 CFC CFC JV sales GMS ~ € 0.5 bn** 2500 PP CFC ~25% 2000 GMS 1500 ~25% Group sales ~ €2.5 bn 1000 PP ~50% 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 27: Group Sales to increase by more than 10% p.a.
Mid Term Horizon Group Sales to increase by more than 10% p.a.* • PP expected to surpass previous sales peaks because of continued electric steel and aluminum growth • GMS and CFC together may match PP sales (i.e. GMS and CFC together approx. 50% of Group sales) • GMS growth accelerates with alterna
Slide 28: Return on Sales (ROS) target remains at minimum 12%
Mid Term Horizon Return on Sales (ROS) target remains at minimum 12% Group ROS target of ≥ 12% to be achieved again in course of 2013 onwards 20% 15% Target ≥ 12% 10% 5% 2005 2006 2007 2008 2009 2010 2011 2012 2013 • Outlook for 2012, especially for H2, uncertain due to unclear macroeconomic environ
Slide 29: Return on Capital Employed (ROCE) target remains at minimum 17%
Mid Term Horizon Return on Capital Employed (ROCE) target remains at minimum 17% Group ROCE target of ≥ 17% to be reached again by the end of the planning period 30% 120% Target ~80% 25% 100% 20% 80% 15% 60% 10% Target ≥ 17% 40% 5% ROCE (left hand scale) 20% Capital intensity* (right hand scale) 0%
Slide 30: Capex remains high until 2012 – Free Cash Flow positive expected from 2013
Mid Term Horizon Capex remains high until 2012 – Free Cash Flow positive expected from 2013 Capex and depreciation expected to converge, capex/sales ratio to return to historical levels 250 20% Capex 200 Depreciation Capex/Sales 15% 150 €m 10% 100 5% 50 0 0% 2005 2006 2007 2008 2009 2010 2011 • Majo
Slide 31: Mid Term Horizon: Performance Products
Mid Term Horizon Performance Products New state-of-the-art facility in Malaysia on stream; strong cash flow 1400 Sales (left hand scale) Sales to reach 35% ROS (right hand scale) new peak levels 1200 30% 25% 1000 20% €m 800 15% 600 10% 400 5% 200 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2015
Slide 32: Mid Term Horizon: Graphite Materials & Systems
Mid Term Horizon Graphite Materials & Systems Sales growth accelerating; ROS ≥ 10% throughout planning period 700 Sales (left hand scale) Sales growth 20% ROS (right hand scale) ≥ 10% p.a. 18% 600 16% ROS target > 10% 14% 500 12% €m 400 10% 8% 300 6% 4% 200 2% 100 0% 2005 2006 2007 2008 2009 2010 20
Slide 33: Mid Term Horizon: Carbon Fibers & Composites
Mid Term Horizon Carbon Fibers & Composites Sales growth to accelerate 1200 Sales (left hand scale) Additional sales from At-Equity 15% ROS (right hand scale) consolidated JVs in CFC* 1000 10% ROS target > 10% 800 5% €m 600 0% 400 CFC sales growth ≥ 20% p.a. -5% 200 0 -10% 2005 2006 2007 2008 2009 2
Slide 34: Key Messages and Targets on track
Mid Term Horizon Key Messages and Targets on track • New assets leading to significant sales growth more than 10% p.a. • Reaching Group sales of more than €2.5 billion • in addition approximately €500 million from At-Equity accounted JVs in CFC (calculated on 100% ownership) • Sales growth targets r
Slide 35: Important note
Important note: This presentation contains forward looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward looking statements are associated with known and unknown risks and uncertainties, as a consequence of which actu