Slide 1: Schouw & Co. 2017 Q1 Investor presentation
Schouw & Co. 2017 Q1 Investor presentation MAY 2017 CEO JENS BJERG SØRENSEN | IR KASPER OKKELS
Slide 2: Agenda
Agenda 2017 Q1 interim report Schouw & Co. introduction Businesses in the portfolio
Slide 3: Schouw & Co. 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 3 Schouw & Co. 2017Q1 ▪ A good quarter as expected Revenue DKKm ▪ Revenue up 29% (organic 20%) and EBIT up 13% (3% organic) +29% Financial ▪ GPV not consolidated in 2016Q1 3.584 2.776 ▪ Very satisfactory increase in ROIC, now 20.0%/16.6% excl/incl goodwill ▪
Slide 4: BioMar 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 4 BioMar 2017Q1 ▪ Revenue increases 30% to DKK 2bn driven by 24% increase in volume Revenue DKKm ▪ EBIT more than doubles from DKK 22m to 51m +30% Financial ▪ Strong development in the salmon division, continued effect from 1.997 margin management and increa
Slide 5: Fibertex Personal Care 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 5 Fibertex Personal Care 2017Q1 ▪ Revenue increases 3% to DKK 473m despite lower volumes Revenue DKKm ▪ EBIT of DKK 55m and lower than LY as expected +3% Financial ▪ Higher raw material prices increases revenue but decreases EBIT; total 458 473 deviation of
Slide 6: Fibertex Nonwovens 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 6 Fibertex Nonwovens 2017Q1 ▪ Revenue increases 13% to DKK 382m with sales up in all markets, Revenue DKKm including US and South Africa, and solid demand in auto +13% Financial ▪ EBIT up by 7m to DKK 30m following higher activity and product mix 338 382 ▪ S
Slide 7: HydraSpecma 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 7 HydraSpecma 2017Q1 ▪ Revenue up 5% to DKK 476m and EBIT increases to DKK 35m Revenue DKKm ▪ Progress in most countries as well as OEM and aftermarket +5% Financial ▪ Effect from higher activity and synergies secures ROIC above 15% 453 476 ▪ NWC at same lev
Slide 8: GPV 2017Q1
Schouw & Co. Q1 Interim Report 08.05.2017 8 GPV 2017Q1 ▪ Develops as expected with solid progress in revenue to DKK 261m Revenue DKKm ▪ EBIT at 2016 level; effect from Mexico startup and BHE acquisition +25% Financial ▪ Good activity and high order intake 261 209 ▪ No material PPA effect in GPV in 2
Slide 9: Outlook
Schouw & Co. Q1 Interim Report 08.05.2017 9 Outlook 2017 2016 ▪ Borg Automotive new leg from 2017Q2 DKK million outlook actual ▪ Pre-PPA EBIT (9 month) DKK 110-130m Borg BioMar 510-550 581 Auto- ▪ Borg contributes with DKK ~800m in revenue Fibertex Personal Care motive 230-260 246 Fibertex Nonwovens
Slide 10: Agenda
Agenda 2017 Q1 interim report Schouw & Co. introduction Businesses in the portfolio
Slide 11: Schouw & Co. at a glance
Schouw & Co. Q1 Interim Report 08.05.2017 11 Schouw & Co. at a glance HISTORY 139 125 29 years of years in years as a company history packaging conglomerate FINANCIALS 14.4 1,038 20.2 billion DKK million DKK % ROIC revenue (2016) EBIT (2016) ex. goodwill (2016) FOOTPRINT ~ 6,000 23 1 employees acros
Slide 12: Our value proposition
Schouw & Co. Q1 Interim Report 08.05.2017 12 Our value proposition 1 Diversified portfolio 2 Leading B2B businesses MISSION 3 Active ownership We build a portfolio of 4 Long-term ownership leading Danish industrial businesses and develop them through value-creating, 5 ROIC focused active and long-te
Slide 13: Vision
VISION We strive to be among the best in creating value in a proper and trustworthy manner
Slide 14: Modus Operandi
Modus Operandi DIVERSIFIED PORTFOLIO ACTIVE AND DEVELOPING PROFITABLE EFFICIENT OWNERSHIP GROWTH USE OF CAPITAL ACTIVE STRATEGIC OWNERSHIP ELEMENTS MODEL FINANCIAL VERSATILITY OPENNESS FUTURE-PROOFING
Slide 15: Strategic goals
Strategic goals GROWTH PROFIT RETURN GEARING PAYOUT PORTFOLIO Significant Benchmark ROIC > 15% Investment Constant or 5-7 big growth every level (dependent on risk) grade capital increasing and strong year profitability structure dividends businesses
Slide 16: 10 years of solid development
Schouw & Co. Q1 Interim Report 08.05.2017 16 10 years of solid development Revenue (DKK bn) ROIC ex goodwill FTEs +9.4pp +6.5% +1.7% 14.4 20% 4,108 12.5 12.6 18% 3,743 11.9 11.8 17% 3,541 11.6 16% 3,334 3,166 3,287 15% 9.8 9.5 14% 2,873 8.2 8.4 2,382 11% 10% 2,052 2,139 8% 6% 07 08 09 10 11 12 13 14
Slide 17: Ownership
Schouw & Co. Q1 Interim Report 08.05.2017 17 Ownership Givesco Main shareholder for more than 40 years; controlled by the Eskildsen 28% family 15% Hornsylds Legat Trust whose sole purpose is to own 50% shares in Schouw & Co. 7% Treasury shares Shares owned by Schouw & Co. Institutions and retail Dan
Slide 18: Schouw & Co.'s role in the wind turbine industry
Schouw & Co. Q1 Interim Report 08.05.2017 18 Schouw & Co.’s role in the wind turbine industry DKK 40m invested A merger creates Combining NEG Micon in Micon NEG Micon and Vestas ▪ Subsequent add-on investments ▪ All meetings at Schouw & Co. ▪ Schouw & Co. plays a very ▪ 92% ownership by 1997 ▪ Schou
Slide 19: 30 years of active ownership
Schouw & Co. Q1 Interim Report 08.05.2017 19 30 years of active ownership 2010 Hydra in China + India 2015 Acquisition of Specma 2016 Acquisition of Etola 1988 Schouw & Co. buys Grene 2009 Demerger 1990s Internationalisation of Grene 1995 Focus on industry 2013 Merging Grene with and Hydra Dutch pee
Slide 20: The transformation of Fibertex
Schouw & Co. Q1 Interim Report 08.05.2017 20 The transformation of Fibertex 2001 2002-2009 2010 2011- Fibertex, then Green-field Fibertex de- Continued expansion in Asia partly owned by expansion in Malaysia merged into two 5 lines in Malaysia – 8 lines total EAC, was seeking a for hygiene
Slide 21: Exercising best ownership
Schouw & Co. Q1 Interim Report 08.05.2017 21 Exercising best ownership In Out Borg acquired at DKK 1.15bn Kramp shares sold for DKK 1.0bn (EV/EBITDA 6.8x) (EV/EBITDA 11.0x) “Automotive “ We like the prospects for “We argue that the divestment The acquisition of Borg is earnings continued growth in B
Slide 22: The strategic journey
Schouw & Co. Q1 Interim Report 08.05.2017 22 The strategic journey Bigger and Bigger and stronger Consolidating the Go Diversification stronger portfolio businesses conglomerate Strong +16 Revenue DKK billion 14.4 12.5 11.6 11.7 7.4 2.2 0.3 1988 2001 2006 2013 2014 2015 2016 2017
Slide 23: M&A activity
Schouw & Co. Q1 Interim Report 08.05.2017 23 M&A activity Acquisitions Mergers Divestments Merger Fibertex Xergi Provimi EV: 660m EV: 675m Specma 100% 100% (BioMar) Innowo EV: 650m Borg EV: 100m 85% (FPC) 100% EV: 1,150m 85% NWS Martin BioMar Tharreau EV: 150m 100% (FIN) EV: 500m EV: 1.800m EV: 300m
Slide 24: Diversified portfolio
Diversified portfolio Investment criteria INDUSTRY SIZE GEOGRAPHY OWNERSHIP B2B with preferences for pro- Minimum revenue, or HQ in Denmark, but Preferences for 100% cessing industry & logistics potential of, DKK 1bn internationally focused (minimum majority share) LEADING POSITION MANAGMENT NEW OWN
Slide 25: Results are created by people
Results are created by people
Slide 26: Agenda
Agenda 2017 Q1 interim report Schouw & Co. introduction Businesses in the portfolio
Slide 27: Results are created by people
Schouw & Co. Q1 Interim Report 08.05.2017 27 RESULTS ARE CREATED BY PEOPLE
Slide 28: BioMar: World's 3rd largest fish feed producer
Schouw & Co. Q1 Interim Report 08.05.2017 28 BioMar: World’s 3rd largest fish feed producer Volume Sales EBIT Employees Growth ~1 million DKK DKK around 1.9% CAGR tonnes ~9.4bn 510-550m 900 2012-2016 Salmon EMEA Emerging ▪The World’s third largest producer of quality FTU Feed Tial Unit feed for indu
Slide 29: BioMar: Strong position and growth outlook
Schouw & Co. Q1 Interim Report 08.05.2017 29 BioMar: Strong position and growth outlook Volume (kton) Revenue (DKKbn) EBIT (DKKm) Aquaculture is a growth industry BioMar is well positioned FINANCIAL DEVELOPMENT -0.4% +1.9% VALUE PROPOSITION • Increasing global population increases • BioMar is global
Slide 30: BioMar: Huge 'world' outside salmon
Schouw & Co. Q1 Interim Report 08.05.2017 30 BioMar: Huge ‘world’ outside salmon AQUACULTURE FEED MARKET FORECAST All high-value species are growing, however at a lower pace ‘Must haves’ Differentiators +4.1% KEY SUCCESS FACTORS Technical quality of the pellet Growth performance +8.2% 7.8 Reliabilit
Slide 31: Fibertex Personal Care: Global spunbond manufacturer
Schouw & Co. Q1 Interim Report 08.05.2017 31 Fibertex Personal Care: Global spunbond manufacturer Volume Sales EBIT Employees Growth ~110,000 DKK DKK around 5.3% CAGR tonnes ~2.0bn 230-260m 600 2012-2016 Spunbond Print ▪The World’s #5 manufacturer of spunbond nonwoven fabrics for hygiene application
Slide 32: Fibertex Personal Care: Strong growth in Asia
Schouw & Co. Q1 Interim Report 08.05.2017 32 Fibertex Personal Care: Strong growth in Asia ASIA IS THE FASTEST GROWING REGION1 Top 3 market participants in Asia and Europe Spunbond hygiene categories HIGH CUSTOMER CONCENTRATION1 Baby Femcare Incontinence Rest 29% Rest ~10% 58% 12% ~70% ~20% ~70% CAG
Slide 33: Fibertex Nonwovens: Leading in industrial nonwovens
Schouw & Co. Q1 Interim Report 08.05.2017 33 Fibertex Nonwovens: Leading in industrial nonwovens Volume Sales EBIT Employees Growth ~55,000 DKK DKK around 9.6% CAGR tonnes ~1.4bn 80-100m 1,100 2012-2016 Needlepunch Spunlace Fibre spinning ▪Leading European manufacturer of nonwovens for various indus
Slide 34: Fibertex Nonwovens: Solid progress and traction
Schouw & Co. Q1 Interim Report 08.05.2017 34 Fibertex Nonwovens: Solid progress and traction NEEDLEPUNCH TECHNOLOGY1 Automotive Wipes Industrial Construction Advanced products BUSINESS SEGMENTS Needlepunch ▪ Motor ▪ Technical & ▪ Bedding ▪ Geotextiles ▪ Medico products insulation cosmetic ▪ Furnitur
Slide 35: HydraSpecma: Leading Nordic hydraulic business
Schouw & Co. Q1 Interim Report 08.05.2017 35 HydraSpecma: Leading Nordic hydraulic business Volume Sales EBIT Employees Growth ~4.5 million DKK DKK around 34.9% CAGR hoses ~1.8bn 100-120m 1,100 2012-2016 Hydra Specma ▪The leading hydraulic company in Scandinavia ▪Partly solving complex hydraulic sol
Slide 36: Hydra/Specma: Combining two hydraulic businesses
Schouw & Co. Q1 Interim Report 08.05.2017 36 Hydra/Specma: Combining two hydraulic businesses HYDRA-GRENE PRIOR TO ACQUISITION ▪ Small but highly profitable Strong in Denmark ▪ Revenue of DKK ~550m and +10% EBIT Specma acquired early 2016 Strategic rationale ACQUISITION OF SPECMA and in wind ▪ Two s
Slide 37: Borg: Europe's largest auto remanufacturer
Schouw & Co. Q1 Interim Report 08.05.2017 37 Borg: Europe’s largest auto remanufacturer Volume Sales1 EBIT Employees Growth ~2 million DKK DKK around ~11% CAGR cores ~1.0bn 150-160m 1,400 2012-2016 Production Sales ▪Europe’s leading remanufacturer to the automotive industry ▪Remanufactures mechanica
Slide 38: Borg: European autoreman set to grow
Schouw & Co. Q1 Interim Report 08.05.2017 38 Borg: European autoreman set to grow 1 EUR billion Forecast 2.3% annual car park EUROPEAN AUTO REMAN MARKET Growing carpark & new sales growth towards 2020 ~8% 11.6 REMANUFACTURING DRIVERS 10.8 2 +1 year in average 10.1 Longer vehicle lifetime 9.4 lifetim
Slide 39: GPV: International electronics and mechanics
Schouw & Co. Q1 Interim Report 08.05.2017 39 GPV: International electronics and mechanics Volume Sales EBIT Employees Growth ~10 million DKK DKK around 5.1% CAGR1 finished goods ~1.0bn 50-60m 1,100 2012-2016 Electronics Mechanics ▪The leading Danish EMS producer with significant presence in low-cost
Slide 40: GPV: Increased use of electronics drives growth
Schouw & Co. Q1 Interim Report 08.05.2017 40 GPV: Increased use of electronics drives growth Significant growth ambition +1.500 Industry growth drivers Customer segments INDUSTRY AND CUSTOMERS GROWTH AGENDA ▪ Global EMS market is EUR +500bn ▪ Cleantech (e.g. intelligent pumps, with estimated CAGR of
Slide 41: Strong position in global growth industries
Schouw & Co. Q1 Interim Report 08.05.2017 41 Strong position in global growth industries Global GDP growth (2015-20) ~3.5% Fish feed Hygiene Industrial Hydraulics Auto EMS nonwovens nonwovens reman Volume (m tonnes) Volume (m tonnes) Volume (m tonnes) Value (USD bn) Value (EUR bn) Value (USD bn) ~4%
Slide 42: Contact
Contact Investor Relations CEO/President Kasper Okkels Jens Bjerg Sørensen ir.@.schouw.dk +45 86 11 22 22