Alzchem Group Ag · XETR:ACT
Alzchem — Q1 2018/2019 Earnings Presentation
35 slides from Alzchem's earnings presentation, Nov 12, 2018
Slide 1: AlzChem Group AG 2018/2019 Q1 - July 1 to September 30, 2018
AlzChem Group AG 2018/2019 Q1 - July 1 to September 30, 2018 Ulli Seibel, CEO Andreas Niedermaier, CFO Nov 12, 2018
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements By reviewing this information, you acknowledge that the information may be updated, changed or corrected in the discretion of AlzChem Group AG (hereinafter “the Company”) at any time and should not be relied on for any investment decisi
Slide 3: Agenda
AGENDA Analyst presentation July – September 2018 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION 3
Slide 4: Highlights
HIGHLIGHTS Summary of operative business July to September 2018 • Growth focus on specialty chemicals • Well prepared for start of own distribution of Creamino®1 • Successful progress in construction of major projects • Solid sales growth: 7-9 ‘18: +2% (1-9 ‘18: + 5.3 %) • Stable EBITDA : 7-9 ‘18: +
Slide 5: Direct distribution of Creamino
Direct distribution of Creamino® Well prepared for the start STATUS OF THE NEW SALES ORGANISATION EFFECTS ON VOLUME • Sales division “Animal Nutrition” established • Q1 2019: one-time effect expected that previous distribution partners empty their warehouses • Sales staff, nutritionists and applicat
Slide 6: Construction of new Creamino production facility
Construction of new Creamino® production facility Project on time and in budget • Project is on time and on budget • Start of production: Summer 2019 • New production facility will triple the actual production capacity from 7,000 to 21,000 tons ALZCHEM GROUP – July - September 2018 – ANALYST PRESENT
Slide 7: Progress of construction projects
Progress of construction projects Nitriles • Project is on time and on budget • Start of production in Summer 2019 • Production of highly corrosive chlorinated nitriles with attractive margin • Investment secured with long term customer contracts ALZCHEM GROUP – July - September 2018 – ANALYST PRESE
Slide 8: Financial overview July – September 2018
FINANCIAL OVERVIEW July – September 2018 Result on track to full year guidance COMMENTS • Solid sales growth, driven by Specialty Chemicals • Stable EBITDA • 7-9 result on track to full year 2018 guidance, as well as in line with guidance 12 months rolling forecast 07.2018 – 06.2019 • YTD EBITDA mar
Slide 9: Agenda
AGENDA Analyst presentation July – September 2018 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION 9
Slide 10: Segment Basics & Intermediates
SEGMENT BASICS & INTERMEDIATES AlzChem’s Basics & Intermediates segment comprises the production of intermediate products which are either used for the production of its Specialty Chemicals products or sold externally, e.g., desulfurization blends for the metallurgy industry (sold under the brand na
Slide 11: Segment Basics & Intermediates financial overview
SEGMENT BASICS & INTERMEDIATES Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS -5.2% -3.2% 7-9 2017 - 4.8% - 0.5% + 0.1% 35.5 35.7 37.0 37.8 34.2 36.9 35.9 vs. Volume Price FX 29.3 30.3 7-9 2018 110.5 107.0 -79.1% 1-9 2017 - 2.0% - 0.5% - 0.7% vs. 6.5 1-9 2018 Volume Pri
Slide 12: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS AlzChem’s Specialty Chemicals segment comprises the production and distribution of higher-value products, e.g., a nutritional feed additive for the feed industry (Creamino®), a dietary supplement for the nutrition market (Creapure®), highly purified guanidine hydrochlorid
Slide 13: Segment Specialty Chemicals financial overview
SEGMENT SPECIALTY CHEMICALS Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS +10.5% 13.4% 7-9 2017 + 11.7% - 1.4% + 0.2% 53.9 56.8 49.8 vs. 48.7 47.9 45.1 44.1 Volume Price FX 41.2 160.5 7-9 2018 35.7 141.6 19.4% 1-9 2017 vs. + 13.4% + 1.4% - 1.5% 38.3 1-9 2018 Volume Pri
Slide 14: Segment Other & Holding
SEGMENT OTHER & HOLDING AlzChem’s Other & Holding segment comprises AlzChem’s holding and other activities which are not accounted for in the Specialty Chemicals or Basics & Intermediates segment. The majority of net sales in this segment are attributable to services including the operation of the C
Slide 15: Segment Other & Holding financial overview
SEGMENT OTHER & HOLDING Segment analysis – financial overview (m€) SALES SALES EBITDA SALES ANALYSIS -11.1% 6.8 6.8 7.0 6.8 6.5 7.0 -4.6% 7-9 2017 - 12,5% + 1.4% ± 0% 5.8 6.2 6.3 vs. 20.6 Volume Price FX 7-9 2018 19.7 243.2% 1-9 2017 - 5.8% + 1.5% ± 0% vs. 1.0 Volume Price FX 1-9 2018 Q3 Q4 Q1 Q2 Q3
Slide 16: Balance Sheet AlzChem Group
BALANCE SHEET AlzChem Group (m€) ASSETS LIABILITIES 304.5 308.0 304.5 308.0 280.2 280.2 74.0 78.3 Equity 57.9 149.9 155.0 Non-Current-Assets 142.7 146.3 145.0 154.8 Non-Current-Liabilities 75.6 75.1 Inventories 71.4 Trade receivables 35.0 52.3 50.7 85.4 76.0 75.0 Current-Liabilities other Current-As
Slide 17: Cash Flow
CASH FLOW Growth CAPEX is the basis for further growth COMMENTS • Lower operating Cash Flow due to increased inventory, accounts receivable and accounts payable • higher investing cash flow mainly due to investments in Creamino® and NITRALZ® ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATI
Slide 18: Outlook 2018
OUTLOOK 2018 Sales and earnings growth continue – 7-9 confirms forecast (m€) SALES EBITDA COMMENTS 378.7 • sales growth will be driven primarily by specialty chemicals, mainly through 364.5 Creamino®, Creapure® and Custom 353.9 Synthesis 54.0 • Further reduced dependence on Basics & Intermediates 49
Slide 19: Outlook 07/18-06/19
OUTLOOK 07/18-06/19 Sales and earnings growth continue (m€) SALES EBITDA COMMENTS 380.6 • sales growth will be driven primarily by specialty chemicals, mainly through 366.4 370.6 Creamino®, Creapure® and Custom Synthesis 53.0 • Further reduced dependence on Basics & Intermediates 48.7 48.1 • EBITDA
Slide 20: Outlook: Underlying assumptions
OUTLOOK Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed - no economic turmoil (USA, China) • Stability in product registration and energy legislation • US-Dollar 2018 Forecast: 1.15 € / US$ Factors to watch • High volatil
Slide 21: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2018 NOV 12 Q1 FIGURES 2018 (7-9) 2018 NOV 22 2nd GENERAL MEETING 2018 NOV 26- 2018 Deutsches Eigenkapitalforum Frankfurt NOV 28 2018 DEC 6 Berenberg European Conference 2018, London ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION 21
Slide 22: AlzChem key figures 9 months 2018
Mio € Mio € Mio € 1,542 EMPLOYEES ~287 SALES ~41 EBITDA ~ 18 OPERATING CASHFLOW ALZCHEM PRODUCTS SPECIALTY CHEMICALS ARE SOLD 56% BASICS & WORLDWIDE INTERMEDIATES SALES 37% JANUARY 1 – SEPTBEMBER 30, 2018 INNOVATION SINCE 1908 OTHERS & HOLDING 7% All financial indicators 9 months 2018
Slide 23: Thank you for your attention
CONTACT THANK YOU Investor Relations T +49 8621 86-2888 FOR YOUR ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 24: Agenda
AGENDA Analyst presentation July – September 2018 EXECUTIVE SUMMARY BUSINESS AND FINANCIAL DETAILS BACK-UP ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION 24
Slide 25: Balance Sheet AlzChem Group
BALANCE SHEET AlzChem Group Deviation 30.09.2018 vs. Deviation 30.09.2018 vs. ALZCHEM GROUP (IN T€) 31.12.2017 30.06.2018 30.09.2018 ALZCHEM GROUP (IN T€) 31.12.2017 30.06.2018 30.09.2018 30.086.2018 30.086.2018 Share capital 101,763 101,763 101,763 Intangible assets 1,009 991 884 -107 -10.8% RETAIN
Slide 26: Income Statement
INCOME STATEMENT AlzChem Group ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION 26
Slide 27: Cash Flow
CASH FLOW AlzChem Group CASHFLOW [m€] Q3 / 2017 7-9 / 2018 yoy % 1-9 / 2017 1-9 / 2018 yoy % OPERATING CASHFLOW 10.6 2.9 -72.6% 24.6 18.3 -25.6% INVESTING CASHFLOW -4.7 -8.9 89.4% -12.1 -24.6 103.3% FREE CASHFLOW 5.9 -6.0 -201.7% 12.5 -6.3 -150.4% RAISING / REPAYMENT FROM LOANS -0.4 9.0 2350.0% -3.2
Slide 28: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group SALES [m€] Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 7-9 2018 Q4 2018 1-9 2017 1-9 2018 yoy % YTD YTD SPECIALTY CHEMICALS 48.7 47.8 45.1 44.1 53.9 56.8 49.8 141.6 160.5 13.4% BASICS & INTERMEDIATES 35.7 37.0 37.8 30.3 34.2 36.9 35.9 110.5 107.0 -3.2% O
Slide 29: Pension Accounting (IFRS)
PENSION ACCOUNTING (IFRS) 0.56% in M€ 107.2 107.8 0.8 1.4 -0.5 -1.1 -19.1 88.7 PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION IN FINANCIAL PROVISION COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31 Dec, 2017 MENTS 30 Sep, 2018 30 Sep, 2018 EBITDA (PE
Slide 30: Executive Team
Executive Team Experienced management to deliver on the next phase ULLI SEIBEL ANDREAS NIEDERMAIER KLAUS ENGLMAIER CURRENT POSITION CEO (since 2009) CFO (since 2010) COO (since 2016) AGE 43 49 58 WITH ALZCHEM SINCE1 2009 1999 1988 DEGREE Industrial Engineering Industrial Engineering Mechanical Engin
Slide 31: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies TROSTBERG (GER) SUNDSVALL (SE) ATLANTA (USA) SHANGHAI (CN) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE ALZCHEM GROUP – July - September 2018 – ANALYST PRESENTATION WALDKRAIBURG (GER) 31
Slide 32: Fully Integrated Business Model (Verbund System)
Fully Integrated Business Model (“Verbund”- System) Ability to adapt production to satisfy changing end market needs THE “VERBUND”-SYSTEM • Fully integrated production circle • Output from one production step serves as base input for the next production step • Highly specialized system that is diffi
Slide 33: Introduction to Group Segments: Specialty Chemicals
INTRODUCTION TO GROUP SEGMENTS Overview of Specialty Chemicals products KEY PRODUCTS DESCRIPTION END MARKETS Creamino® A nutritional additive for broilers and pigs Feed additive Premium brand for creatine monohydrate used as supplements in sports nutrition Dietary supplements Pet feed additive Alpha
Slide 34: Introduction to Group Segments (Cont'd)
INTRODUCTION TO GROUP SEGMENTS (CONT’D) Overview of B&I products and O&H services KEY PRODUCTS DESCRIPTION END MARKETS Calcium carbide-based process chemical for hot metal desulfurization Steel industry INTERMEDIATES Airbags Gas generant for air bags, key production intermediate Agrochemicals BASICS
Slide 35: Stock
STOCK Share Details 11.11.2018 ISIN / WKN DE000A0AHT46 / A0AHT4 SHAREHOLDER STRUCTURE % LIVIA Corporate Development SE 37.7 TICKER SYMBOL SFP1 HDI Vier CE GmbH 20.4 TYPE AND NUMBER OF 101,763,355 bearer shares SHARES with no par value (par value shares) Four two na GmbH 15.8 STOCK Regulated Market (