Semperit Ag Holding · VIE:SEM

Semperit — Q1-3 2019 Earnings Presentation

36 slides from Semperit's earnings presentation, Dec 19, 2019

  1. Slide 1: Semperit Group Q1-3 2019 Investor Presentation

    SEMPERIT GROUP Q1-3 2019 / Q3 2019 INVESTOR PRESENTATION 1

  2. Slide 2: Agenda

    Agenda Highlights (p.2) Operational highlights (p.5) Financial performance (p.12) Management agenda (p.23) Appendix (p.26) 2 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  3. Slide 3: Transformation programme shows material impact, with Group EBITDA significantly above last year's levels

    Transformation programme shows material impact, with Group EBITDA significantly above last year’s levels  Reduced complexity and higher quality of order book clearly supportive …  … however, economic downturn and decreasing order books will impact coming quarters  Outlook uncertain due to limited

  4. Slide 4: Key topics Q1-3 2019

    Key topics Q1-3 2019  Revenue decreased by 2.7% to € 652.2m  Semperit Group continues to improve at – Industrial Sector down only by 1.5% to EBITDA level € 426.2m – SemperMove10 delivers tangible – Medical Sector: revenue decline reduced improvements to -4.9% yoy to € 226.0m – Profitability level

  5. Slide 5: Agenda

    Agenda Highlights (p.2) Operational highlights (p.5) Financial performance (p.12) Management agenda (p.23) Appendix (p.26) 5 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  6. Slide 6: Revenue development Q1-3 2019

    Revenue development Q1-3 2019 in € m Revenue development -2.7% 670.3 652.2 -0.3 -6.0 -0.3  Semperflex: Almost unchanged -11.5 despite reduced market demand due to destocking Industrial Medical  Sempertrans: Decrease due to Sector Sector lower volumes as a result of focus shift to quality of order

  7. Slide 7: Industrial Sector EBITDA Q1-3 and Q3 2019

    Industrial Sector EBITDA Q1-3 and Q3 2019 Strong improvement in Industrial Sector: +25.3% EBITDA yoy, +€ 15.1m Q1-3’19 result already Quarterly development with a clearly positive trend despite seasonal above FY 2018 headwind in Industrial Sector: Q3’19 yoy EBITDA +23.3% or € 4.1m 74.7 28.2 24.5 59.

  8. Slide 8: Semperflex Q1-3 2019

    Semperflex Q1-3 2019 Q1-3'18 vs Q1-3’19: +3.4% EBITDA yoy, € +1.3m 23.4% 23.8% 22.8% 24.4% 19.8% 20.1% EBITDA in € m 17.4% EBITDA margin Semperflex 13.7 14.9 13.9 14.5 9.3 10.9 10.8 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018  Revenue almost unchanged despite reduced Revenue m

  9. Slide 9: Sempertrans Q1-3 2019

    Sempertrans Q1-3 2019 Q1-3'18 vs Q1-3’19: >100% EBITDA yoy, € +9.1m 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 6.4% 5.4 2.1% 4.6 1.4% 2.1% 2.4 2.7 0.5 0.8 0.7 1) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018  Successful turnaround after closure of Revenue Sempertra

  10. Slide 10: Semperform Q1-3 2019

    Semperform Q1-3 2019 Q1-3'18 vs Q1-3’19: +26.3% EBITDA yoy, € +4.7m 15.7% 16.4% 14.4% 13.8% 12.2% EBITDA in € m 9.6% 8.9% EBITDA margin Semperform 7.3 7.9 8.3 6.2 6.6 4.5 3.9 Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018  Revenue stable despite reduced market demand Revenue 148

  11. Slide 11: Medical Sector / Sempermed segment Q1-3 2019

    Medical Sector / Sempermed segment Q1-3 2019 Q1-3'18 vs Q1-3’19: >100% EBITDA yoy, € +2.3m 2.3% 1.8% 0.8% EBITDA in € m 1.4 1.8 0.6 EBITDA margin Sempermed -0.9 -0.9 Medical -1.3 -1.1% -3.1 -1.2% Sector -1.7% -4.2% 1) Q1’18 Q2’18 Q3’18 Q4’18 Q1’19 Q2’19 Q3’19 Q1-3 2019 vs. Q1-3 2018 Revenue  Lower

  12. Slide 12: Agenda

    Agenda Highlights (p.2) Operational highlights (p.5) Financial performance (p.12) Management agenda (p.23) Appendix (p.26) 12 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  13. Slide 13: Top Line Financials and Profitability Overview – Q1-3 2019

    Top Line Financials and Profitability Overview – Q1-3 2019 in EUR m Q1-3 20191) Q1-3 20182) Change Change in EUR m Revenue 652.2 670.3 -2.7% -18.1 EBITDA adjusted 56.4 45.8 +23.1% +10.6 EBITDA margin adjusted 8.6% 6.8% +1.8 PP – EBITDA 60.4 41.9 +44.1% +18.5 EBITDA margin 9.3% 6.3% +3.0 PP – EBIT ad

  14. Slide 14: Revenue development Q1-3 2019 / H1 2019

    Revenue development Q1-3 2019 in € m Revenue development H1 2019 -2.7% 670.3 652.2 -0.3 -6.0 -0.3 -11.5 Industrial Medical Sector Sector -1.5%1) -0.2%1) -5.4%1) -0.2%1) -4.9%1) Q1-3 2018 Semperflex Sempertrans Semperform Sempermed Q1-3 2019 Revenue 174.7m 103.3m 148.2m 226.0m Q1-3 2019 ► 1) All perc

  15. Slide 15: From reported to operating EBITDA / EBIT Q1-3 2019

    From reported to operating EBITDA / EBIT Q1-3 2019 EBITDA EBIT 56.4 29.0 4.0 52.4 46.8 -13.7 4.0 EBITDA 1) One-Off: EBITDA EBIT One-Off: One-Off: EBIT reported Sempermed adjusted reported Sempermed Sempermed adjusted (final) provision (final) (final) provision Impairment (final) reversal reversal (B

  16. Slide 16: Adjusted EBITDA development Q1-3 2019

    Adjusted EBITDA development Q1-3 2019 in € m +23.1% +9.1 +2.3 56.4 +4.7 -6.8 45.8 +1.3 1) 2) Q1-3 2018 Semperflex Sempertrans1) Semperform Sempermed Corporate Q1-3 2019 adj. EBITDA 45.8m 38.0m 3.6m 18.0m -0.8m -13.0m Q1-3 2018 adj. EBITDA 39.3m 12.7m 22.7m 1.5m -19.8m 56.4m Q1-3 2019 adj. EBITDA 22.

  17. Slide 17: Sempermove10 shows material impact: EBITDA improvement for 7th consecutive quarter

    Sempermove10 shows material impact: Consistent yoy EBITDA improvement for 7th consecutive quarter +23.1% +44.1% 22.7 60.4 56.4 10.1% 17.3 17.0 45.8 15.8 16.5 41.9 8.0% 7.7% 7.5% 13.1 7.1% 5.9% 9.3% 8.6% 6.8% 4.5 6.3% 2.2% 1) 2) Q1-3 2018 Q1-3 2018 Q1-3 2019 Q1-3 2019 Q1 Q2 1) Q32) Q4 EBITDA margin E

  18. Slide 18: CAPEX by quarter

    CAPEX by quarter  FY 2018: overall CAPEX of € 81m, approx. 50% for Semperflex and mixing  As planned CAPEX of € 25.1m implies predominantly maintenance CAPEX  FY 2019: overall CAPEX of about € 40m planned CAPEX per segment in € m 23.2 Semperflex Sempertrans 10.0 Semperform 15.6 16.2 Sempermed 5.2

  19. Slide 19: Working Capital Overview

    Working Capital Overview Components of Working Capital in € m 20.6%1) 21.0%1) 21.0%1) 20.5%1) 19.0%1) 181.2 184.3 184.8 177.9 163.4 162.8 150.4 150.6 147.1 136.0 Inventories 123.7 101.6 112.6 114.1 109.8 Trade receivables -67.7 -78.4 -83.3 -82.5 Trade payables -105.3 30 Sept 2018 31 Dec 2018 31 Marc

  20. Slide 20: Free cash flow development

    Free cash flow development  Improved results, active WC management and strict CAPEX control support cashflow development  First positive free cash flow after negative previous years Development of cash flow components1) in € m 83 50 60 34 15 -9 -21 -42 -23 -43 -57 -71 Q1-3 2016 Q1-3 2017 2) Q1-3 2

  21. Slide 21: Balance sheet structure and financial profile

    Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 September 2019 Balance sheet 30/09/2019: € 750m Balance sheet 31/12/2018: € 769m  Cash and cash equivalents of € 160m  Financial liabilities:  Corporate Schuldschein loan of € 225m Fixed 319 285 330 E

  22. Slide 22: Financial Policy Framework

    Financial Policy Framework Focus on Value Management % € €  EBITDA margin  Equity ratio of >30%  Net debt/EBITDA < 3.5x of 10% at Group level by end of 2020 (run rate 2021)  Working Capital  Total Capex of about € 40m to revenue < 25%, in FY 2019 focus to stay closer to 20%1)  mostly for maint

  23. Slide 23: Agenda

    Agenda Highlights (p.2) Operational highlights (p.5) Financial performance (p.12) Management agenda (p.23) Appendix (p.26) 23 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  24. Slide 24: Management agenda 2019

    Management agenda 2019  Safeguard SemperMove10  Address global economic downturn…  … and take proactive initiatives  Finalise strategic transformation plan  Develop strategic options for Sempermed 24 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  25. Slide 25: Contact and financial calendar

    Contact and financial calendar Investor Relations Semperit Financial Calendar 2020 Judit Helenyi, Investor Relations 20.03.2020 Publication of 2019 annual financial statements 21.04.2020 Annual general meeting, Vienna +43 1 79777 - 310 27.04.2020 Dividend payment day www.semperitgroup.com/en/ir Mode

  26. Slide 26: Agenda

    Agenda Highlights (p.2) Operational highlights (p.5) Financial performance (p.12) Management agenda (p.23) Appendix (p.26) 26 Investor Presentation Q1-3 2019 I 19 December 2019 I Investor Relations

  27. Slide 27: Sectors and Group Q1-3 2019 vs Q1-3 2018

    Sectors and Group Q1-3 2019 vs Q1-3 2018 Industrial Sector Medical Sector Semperit Group1) in EUR m Q1-3 2019 Q1-3 2018 % Q1-3 2019 Q1-3 2018 % Q1-3 2019 Q1-3 2018 % Revenue 426.2 432.7 -1.5% 226.0 237.5 -4.9% 652.2 670.3 -2.7% EBITDA 74.7 55.8 +34.0% 5.6 -0.8 – 60.4 41.9 +44.1% EBITDA margin 17.5%

  28. Slide 28: Sectors and Group: Q3 2019 vs Q3 2018

    Sectors and Group: Q3 2019 vs Q3 2018 Industrial Sector Medical Sector Semperit Group1) in EUR m Q3 2019 Q3 2018 % Q3 2019 Q3 2018 % Q3 2019 Q3 2018 % Revenue 136.7 141.3 -3.2% 78.2 80.4 -2.8% 214.9 221.7 -3.1% EBITDA 22.0 17.9 +23.3% 5.8 -0.9 – 21.3 13.1 +63.1% EBITDA margin 16.1% 12.6% +3.5 PP 7.5

  29. Slide 29: Semperit Group adj. where applicable

    Semperit Group adj. where applicable Semperit Group adj. where applicable FY Q1 Q2 Q3 Q4 FY Q2 Q3 Q1 Q3 Q4 FY Q1 Q2 2016 2017 2017 2017 2017 2017 2018 2019 2018 2018 2018 2018 2019 2019 in EUR m adj.1) adj. 2) adj.2) adj.2) adj.2) adj. 2) adj.3) adj.4) Revenue 852.4 229.3 232.3 208.4 204.2 874.2 220

  30. Slide 30: Semperflex and Sempertrans (adj. where applicable)

    Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q2 FY Q1 Q3 Q4 FY Q1 Q2 Q3 2017 2017 2017 2017 2017 2018 20161) 2018 2018 2018 2018 2019 2019 2019 in EUR m adj.2) adj.2) adj.2) adj.2) adj. 2) adj.3) Revenue 184.9 53.5 53.2 46.8 52.5 206.1 58.8 62.8 53.4 55.1 230.

  31. Slide 31: Semperform and Sempermed (adj. where applicable)

    Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 2017 2017 20161) 2017 2017 2017 2018 2018 2018 2018 2018 2019 2019 2019 in EUR m adj. 4) adj. 4) Revenue 173.1 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3 43.7 192

  32. Slide 32: Key figures 2008-2018

    Key figures 2008-2018 Key performance figures 2016 2017 2018 in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153) adj. 4) adj. 5) adj. 6) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 EBITDA margin 13

  33. Slide 33: Overview price indices Butadiene

    Overview price indices Butadiene Price movements for raw materials1) became highly unpredictable Price indices Butadiene as main raw material for synthetic rubber / latex 550 500 450 400 ø 2018 350 300 ø 2017 ø YTD 2019 250 ø 2016 200 150 100 50 Butadiene Europe Butadiene Korea 1) Selected raw mater

  34. Slide 34: Overview price indices carbon black / wire rod

    Overview price indices carbon black / wire rod Significant increase for raw materials1) used in industrial segments Price index carbon black Price index wire rod 375 200 ø 2018 ø YTD 350 ø YTD 2019 ø 2018 325 2019 175 300 275 ø 2017 ø 2017 150 250 225 ø 2016 ø 2016 200 125 175 150 100 125 100 75 75

  35. Slide 35: Product / market position / segment overview, FY 2018

    Product / market position / segment overview, FY 2018 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform Sempermed Revenue € 878m € 230m / 26%1) € 145m / 17%1) € 192m / 22%1) € 312m / 35%1) EBITDA adj. € 50m2) € 49m € 4m € 22m € -4m Employees 6,7732) 1,776 / 27%3

  36. Slide 36: Shareholder Structure

    Shareholder Structure Shareholder structure  Semperit is listed on the Vienna Stock Exchange since 1890  Total of 20,573,434 shares  B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54%  Primary focus of B & C is pursuing the fou

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