SGL Carbon SE · XETR:SGL
SGL Carbon — SGL Group — FY2010 Earnings Presentation
27 slides from SGL Carbon's earnings presentation, Mar 17, 2011
Slide 1: Year End Analyst Meeting
Year End Analyst Meeting Frankfurt March 17, 2011 Investor Relations Presentation Page 1
Slide 2: 2010 Back on Growth Track: Business Development
SGL Group 2010 Back on Growth Track Business Development Measures • Results for fiscal year 2010 better than initially • Further expansion of global presence expected • Reorganization into eight Business Units • Guidance increased twice in 2010 • Strengthening of regional concept • Sales: €1,382 mil
Slide 3: 2010 Back on Growth Track: Strategic Development
SGL Group 2010 Back on Growth Track Strategic Development • PP: Further expansion of carbon and graphite production facility in Banting (Malaysia) • GMS: Decision to triple global isostatic graphite capacity • CFC: Expansion of CFC activities - JV with the BMW Group: Construction of a carbon fiber p
Slide 4: 2010 Financials
2010 Financials Investor Relations Presentation Page 4
Slide 5: 2010 Results for the Group – Income Statement
SGL Group 2010 Results for the Group – Income Statement in € million 2010 2009 Sales 1,381.8 1,225.8 EBITDA 194.8 171.6 Profit from operations (EBIT) 128.4 111.0* Result from equity accounted investments -11.9 -9.9 Net financing result -40.8 -45.2 Profit before tax 75.7 -18.1 Net profit after minori
Slide 6: 2010 Results for the Group – Key Balance Sheet and Cash Flow Figures
SGL Group 2010 Results for the Group – Key Balance Sheet and Cash Flow Figures 31.12.2010 31.12.2009 Total assets (in € million) 2,113.3 1,891.0 Total equity (in € million) 864.4 749.4 Equity ratio (in %) 40.9 39.6 Total liquidity (in € million) 284.7 302.3 Net debt (in € million) 410.5 367.9 Gearin
Slide 7: 2010 Results for Performance Products (PP)
SGL Group 2010 Results for Performance Products (PP) in € million 2010 2009 Sales 762.6 641.6 EBITDA 177.5 180.5 Profit from operations (EBIT) 144.1 151.9 Return on sales (in %) 18.9 23.7 • Sales increase: 19%, currency adjusted 15% – strongly increased graphite electrodes sales driven by rising uti
Slide 8: 2010 Results for Graphite Materials & Systems (GMS)
SGL Group 2010 Results for Graphite Materials & Systems (GMS) in € million 2010 2009 Sales 395.9 364.5 EBITDA 54.9 45.2 Profit from operations (EBIT) 36.9 28.0 Return on sales (in %) 9.3 7.7 2009 figures include one-time invoicing of a large order in Q2/2009 • Sales increase: 9%, currency adjusted 6
Slide 9: 2010 Results for Carbon Fibers & Composites (CFC)
SGL Group 2010 Results for Carbon Fibers & Composites (CFC) in € million 2010 2009 Sales 218.5 208.0 EBITDA 4.8 -12.0 Profit from operations (EBIT) -6.6 -22.9* Return on sales (in %) -3.0 -11.0* • Sales increase: 5%, currency adjusted 3% – due to higher volumes in carbon fibers, composite materials
Slide 10: 2010 Results for Central T&I and Corporate Costs
SGL Group 2010 Results for Central T&I and Corporate Costs in € million 2010 2009 Other sales 4.8 11.7* Central T&I Costs -12.6 -12.0 Brake Discs (EBIT) - -8.7 Corporate Costs -33.4 -25.3 • Brakes disc business transferred to JV with Brembo since May 28, 2009. Accordingly, these activities no longer
Slide 11: 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) • €200 million Convertible Bond at 0.75%, conversion price of €36
Slide 12: Ensuring the future: Capital expenditure by Business Area
Ensuring the future Capital expenditure by Business Area Major investment focus in 2010: Capital expenditure [in € million] • PP: – Continued build up of new GE + €240m CA production facility in Malaysia – Maintenance, ESHA investments particularly in Spain and Poland 111 • GMS: €154m – Initial cape
Slide 13: Outlook 2011
Outlook 2011 Investor Relations Presentation Page 13
Slide 14: Outlook 2011: Double digit sales and EBIT growth
SGL Group Outlook 2011: Double digit sales and EBIT growth Group • Sales to rise at least 10% • EBIT grows to €150-165 million resulting in Group ROS of 10-11% • Net financial costs up on 2010 (including results from at-equity consolidated companies) • Tax rate approx. 30% Capex, Balance Sheet, Cash
Slide 15: Business Area Outlook and Key Assumptions 2011
SGL Group Business Area Outlook and Key Assumptions 2011 PP GMS CFC • Volume and sales growth, • More than 10% sales growth, • More than 20% sales growth, ROS comparable to 2010, i.e. ROS ≥ 10% positive EBIT slightly below 20% Graphite Electrodes Graphite Specialties Carbon Fibers/ • GE volumes to g
Slide 16: Mid term targets 2011-2015
Mid term targets 2011-2015 Investor Relations Presentation Page 16
Slide 17: Group sales to increase by more than 10% p.a. reaching €2.5 bn in 2015
2011 – 2015 Group sales to increase by more than 10% p.a. reaching €2.5 bn in 2015* Advanced Materials targeted to reach ~ 50% of Group sales by 2015 €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 2
Slide 18: Group sales to increase by more than 10% p.a. reaching €2.5 bn in 2015
2011 – 2015 Group sales to increase by more than 10% p.a. reaching €2.5 bn in 2015* • PP expected to surpass previous sales peaks because of continued steel and aluminum growth • GMS and CFC together may match PP sales by 2015 (i.e. GMS and CFC together approx. 50% of Group sales) • GMS growth accel
Slide 19: Return on sales (ROS) target remains at minimum 12%
2011 – 2015 Return on sales (ROS) target remains at minimum 12% Group ROS target of ≥ 12% to be achieved again from 2012 onwards 20% 15% Target ≥ 12% 10% 5% 2005 2006 2007 2008 2009 2010 2011 2012 • All business areas expected to be profitable from 2011 onwards • New assets coming on stream contribu
Slide 20: Return on capital employed (ROCE) target remains at minimum 17%
2011 – 2015 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% 0% 20
Slide 21: Capex remains high until 2012 – free cash flow positive expected from 2013
2011 – 2015 Capex remains high until 2012 – free cash flow positive expected from 2013 Capex and depreciation expected to converge 250 Capex Depreciation 200 150 €m 100 50 0 2005 2006 2007 2008 2009 2010 2015 • Major investments on schedule • Capex requirements up to €150 million p.a. in 2011 and 20
Slide 22: Performance Products
2011 – 2015 Performance Products New state-of-the-art facility 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 ROS target > 20% 15% 600 10% 400 5% 200 0% 2005 2006 2007 2008 2009 2010 2011 2012 2015 • Inv
Slide 23: Graphite Materials & Systems
2011 – 2015 Graphite Materials & Systems Sales growth accelerating; ROS ≥ 10% throughout planning period 700 Sales (left hand scale) Sales growth 16% ROS (right hand scale) ≥ 10% p.a. 14% 600 12% 500 ROS target > 10% 10% €m 400 8% 6% 300 4% 200 2% 100 0% 2005 2006 2007 2008 2009 2010 2011 2015 • Acc
Slide 24: Carbon Fibers & Composites
2011 – 2015 Carbon Fibers & Composites Sales growth accelerating; profitable in 2011; 10% ROS by end 2013 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 CFC sales growth ≥ 20% p.a. 0% 400 -5% 20
Slide 25: Key messages and 2015 targets
2011 – 2015 Key messages and 2015 targets • New assets leading to significant sales growth more than 10% p.a. • reaching Group sales of €2.5 billion by 2015 • plus approximately €500 million from at-equity consolidated JVs in CFC (calculated on 100% ownership) • Sales growth targets raised • CFC fro
Slide 26: Q&A
Q&A Investor Relations Presentation Page 26
Slide 27: 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