Sp Group A/s · OMXCOP:SPG
Sp Group A/s — Q1 2024 Earnings Presentation
53 slides from Sp Group A/s's earnings presentation, May 27, 2024
Slide 1: Q1 2024 Presentation by CEO Frank Gad
Q1 2024 Presentation by CEO Frank Gad 27 May 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 1
Slide 2: Group Management
GROUP MANAGEMENT Frank Gad Søren Ulstrup Lars Ravn Bering Tilde Kejlhof CEO Executive Vice President CFO Executive Vice President MSc Economics & Business Plastic engineer MSc Engineering and B Com. Master of Economics Administration Residence: Holte in Supply Chain Residence: Odense Residence: Fred
Slide 3: SP Group in Brief
SP GROUP IN BRIEF Headquarters in Denmark Products are marketed and sold in established in 98 countries 1972 Subsidiaries in Average number of employees decreased in 2023 from 2,485 to 12 countries on 3 continents 2,351 committed employees Presentation Q1 2024 – 27 May 2024 / SP Group 3
Slide 4: SP Group – An Overview
SP GROUP – AN OVERVIEW • Manufacturer of moulded plastic and composite components and performs coatings on plastic and metal components • Supplier of customer-specific solutions for a wide range of industries • Strong international niche positions – also for our own brands • Increased sales from own
Slide 5: Highlights Q1 2024
HIGHLIGHTS Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 5
Slide 6: Highlights Q1 2024 / 1
HIGHLIGHTS Q1 2024 / 1 In Q1 2024, revenue In Q1 2024, revenue from own brands increased by 2.2% to increased by 25.1% to DKK 722.9m DKK 205.2m In Q1 2024, EBITDA In Q1 2024, the EBITDA margin increased by 16.2% to increased by 2.4 percentage points to DKK 148.4m 20.5% Presentation Q1 2024 – 27 May
Slide 7: Highlights Q1 2024 / 2
HIGHLIGHTS Q1 2024 / 2 In Q1 2024, Profit before tax increased In Q1 2024, EPS, diluted, increased by by 23.8% to DKK 84.8m 23.8% to DKK 5.47 DKKm DKK 90 6 75 4.5 60 45 3 30 1.5 15 0 0 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2020 Q1 2021 Q1 2022 Q1 2023 01 2024 End March 2024, net interest-bearin
Slide 8: Financial Results 2023 and Q1 2024
FINANCIAL RESULTS 2023 AND Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 8
Slide 9: Group Financial Highlights 2023
GROUP FINANCIAL HIGHLIGHTS 2023 DKKm 2023 2022 2021 2020 2019 2018 2017 Revenue 2,606.3 2,656.3 2,480.9 2,178.2 2,012.9 1,965.0 1,884.1 EBITDA 441.0 478.4 422.9 356.4 307.5 285.6 275.0 EBIT 241.2 296.1 269.1 214.8 177.8 195.9 193.5 Profit before tax 201.1 268.5 257.8 193.8 175.4 200.1 175.7 Equity 1
Slide 10: Revenue 2010 – Q1 2024
REVENUE 2010 – Q1 2024 DKKm 2,800 017 4-2 201 6% R=1 CAG 22 0-20 201 0% R=1 CAG 2,100 2023: : Q124: 2022 -1.9% 2.2% 7.1% % .9 13 % 21: 8.2 20 0: 2019: 2.4% 202 1,400 4.1% 2018: 0% 4. 7:2 1 20 1% 15. 6: 201 5 -201 2010 =9% 700 CAGR 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 20
Slide 11: EBITDA 2010 – Q1 2024
EBITDA 2010 – Q1 2024 DKKm 500 022 0-2 201 375 6% R=1 CAG 2023: -7.8% Q124: % 16.2% .1 : 13 22 20 % .7 18 250 : 21 20 9% 5. 0:1 2 20 125 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 11
Slide 12: EBITDA-Margin 2010 – Q1 2024
EBITDA-MARGIN 2010 – Q1 2024 % 20 19 18 17 16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 12
Slide 13: EBT 2010 – Q1 2024
EBT 2010 – Q1 2024 DKKm 300 022 0-2 201 0% 225 R=2 CAG 2023: 2: Q124: 202 -25.1% 23.8% 4.2% 150 0% 3. :3 21 20 % .4 10 20: 20 75 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 13
Slide 14: NIBD/EBITDA 2010 – Q1 2024
NIBD/EBITDA 2010 – Q1 2024 7 5 4 2 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 14
Slide 15: Group Financial Highlights Q1 2024
GROUP FINANCIAL HIGHLIGHTS Q1 2024 DKKm Q1 2024 Q1 2023 Growth 2023 Revenue 722.9 707.3 2.2% 2,606.3 EBITDA 148.4 127.7 16.2% 441.0 EBIT 98.6 78.1 26.2% 241.2 Profit before tax 84.8 68.4 23.8% 201.1 Equity 1,535.7 1,336.5 14.9% 1,463.6 Cash flows from operations 121.3 130.4 360.4 Cash flows from inv
Slide 16: Revenue from Own Brands
REVENUE FROM OWN BRANDS • Ergonomics, animal housing ventilation, guidewires, medical packaging and industrial standard components 220 200 180 160 140 DKKm 120 100 80 60 40 20 0 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Presentation Q1 2024 – 27 May 2024 / SP Group 16
Slide 17: Revenue Split by Product Area
REVENUE SPLIT BY PRODUCT AREA Revenue cleantech industires in DKKm Revenue healthcare products in DKKm 300 300 250 250 200 200 150 150 100 100 50 50 0 0 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Q1 2024 Revenue other demanding industries in DKKm Revenue food-related ind
Slide 18: Market Dynamics
MARKET DYNAMICS Growth by customer group Q1 2024 12M 2023 Healthcare 22.1% -3.3% Cleantech 3.2% 8.0% Food related -8.3% -12.9% Automotive -31.0% -5.4% Other demanding industries -17.4% -4.8% Hereof own brands 25.1% -12.0% Presentation Q1 2024 – 27 May 2024 / SP Group 18
Slide 19: Revenue by Customer Groups in Q1 2024
REVENUE BY CUSTOMER GROUPS IN Q1 2024 30% CLEANTECH Our Purpose = Value Creation 40% 12% for our Customers HEALTHCARE FOOD-RELATED (Medico, Ergonomics) 15% 3% OTHERS AUTOMOTIVE At 31 December 2023: • A total of more than 1,000 customers • The largest customer accounts for 12.6% (2022: under 10%) • T
Slide 20: SP Group's Global Presence
SP GROUP’S GLOBAL PRESENCE Sale and production • Denmark (14) • Poland (6) • China (2) 29% • USA (2) • Latvia (1) • Slovakia (2) 49% • Sweden (1) 14% 8% Opening • Finland (2) soon • Thailand (1) Sale and distribution • Netherlands (1) • Sweden (3) • Canada (1) • Norway (1) Percentage distribution is
Slide 21: Acquisitions Since 2014
ACQUISITIONS SINCE 2014 Our strategy has been to make acquisitions, when we can create additional value by applying our capabilities This is especially true when the acquisition’s capabilities can improve our existing business or Skumplast create new platforms for growth and new technologies Present
Slide 22: Internationalisation
INTERNATIONALISATION Q1 2005 2010 2015 2020 2021 2022 2023 2024 2024E Share of sales outside 37% 46% 54% 69% 72% 72% 71% 74% ~75% Denmark Share of employees outside 23% 50% 64% 72% 74% 72% 71% 70% ~75% Denmark (avg) Number of factories outside 2 6 12 17 17 18 17 17 18 Denmark Total number of factori
Slide 23: Share Price Performance
SHARE PRICE PERFORMANCE Share price performance from 1 January 2016 to 30 April 2024 450 400 Index 1.1.2016=74.7 350 300 250 200 150 100 50 15 16 172016 18 19 20 20 21 222017 23 23 2018 2019 2020 2021 2022 2023 2024 SP Group A/S OMX Copenhagen 20 (Rebased) STOXX Europe 600 / Industrials - IND (Rebas
Slide 24: Shareholders
SHAREHOLDERS December 2015: Development shareholders from 2015 to end April 2024 886 shareholders 4,200 -2,5% 4,094 362% 27% 3,300 8% April 2024: 2,670 15% 3,066 4,094 shareholders 2,200 7% 2,350 14% 1,944 13% 47% 1,319 Or up by 362% in the 886 49% period 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 25: Market Conditions
MARKET CONDITIONS Demand factors Value creation at SP Group • Customers demand better and • Instead of using wood, metal and glass cheaper products we substitute with plastics and composite • Manufacturing globally; with a powerful team, the right equipment and the right technology • Customers focus
Slide 26: Outlook for 2024
Plastics drive innovation, improve quality of life, facilitate resource efficiency and climate protection OUTLOOK FOR 2024 © Vattenfall – Kriegers Flak Presentation Q1 2024 – 27 May 2024 / SP Group 26
Slide 27: Outlook for 2024
OUTLOOK FOR 2024 • The global economy is still fragile and marked by political and economic uncertainty • No growth in Europe • New products and solutions, new customers and growth among a number of our existing customers are expected to contribute to growth and earnings • Due to inflation, higher i
Slide 28: Sustainability in Everything We Do
SUSTAINABILITY IN EVERYTHING WE DO • Ambition of achieving zero environmental impact from operations By 2030 • Entire global production to be Entire global powered by renewable energy production powered in 2030 by renewable energy • Becoming carbon neutral in Scope 1 and 2 emissions by 2030 • Suppor
Slide 29: UN Global Compact and UN Sustainable Development Goals
UN GLOBAL COMPACT AND UN SUSTAINABLE DEVELOPMENT GOALS • SP Moulding became a signatory to the UN Global Compact in January 2012 • SP Group became a signatory to the UN Global Compact in December 2020 • SP Group are working actively with the UN Sustainable Development Goals – read more in our Annual
Slide 30: Plastic Waste in Our Environment and Our Oceans
PLASTIC WASTE IN OUR ENVIRONMENT AND OUR OCEANS Waste left in our environment and in our oceans constitutes a serious problem for all living beings on this planet SP Group does NOT produce: • Plastic bags • Plastic cutlery • Plastic straws • Disposable plastic bottles or caps • Plastics have no plac
Slide 31: Household Waste Can Be Recycled into New Fencing
HOUSEHOLD WASTE CAN BE RECYCLED INTO NEW FENCING Presentation Q1 2024 – 27 May 2024 / SP Group 31
Slide 32: Used Mats for Recycling
USED MATS FOR RECYCLING In 2023, Ergomat Sustainability Mats became a reality. These mats contain between 65% and 100% recycled material Ergomat has set up a recycling program where used mats are collected from customers and then granulated and processed into new mats. Through the recycling program,
Slide 33: Pallet Lids and Windhoods Produced in Recycled Plastics
PALLET LIDS AND WINDHOODS PRODUCED IN RECYCLED PLASTICS TPI Windhood produced in 90% use of Nycopac’s pallet lid recycled plastics (regrind) – produced in 100% 10% virgin plastics are recycled plastics (regrind) needed for UV protection Presentation Q1 2024 – 27 May 2024 / SP Group 33
Slide 34: Wood Fibres Substituting Plastics: Beautiful Unique Design
WOOD FIBRES SUBSTITUTING PLASTICS: BEAUTIFUL UNIQUE DESIGN The Muuto chair is made from up to 25% wood fibres and 75% recycled plastics – each chair is unique Produced by SP Moulding Presentation Q1 2024 – 27 May 2024 / SP Group 34
Slide 35: Nycopac Sleeve System
NYCOPAC SLEEVE SYSTEM Nycopac Sleeve System – foldable pallet containers for many industries Great advantages for the user are obtained in return handling, durability, easiness to fold and unfold and low weight. All included components are 100% reusable and recyclable Produced in a cooperation betwe
Slide 36: SP Group: A Part of the Solution, Not a Part of the Problem
SP GROUP: A PART OF THE SOLUTION, NOT A PART OF THE PROBLEM SP Group produces technical plastic solutions that contribute to solving the challenges of the future: • Cleantech: Insulation, generating renewable energy, reducing energy consumption, flue gas cleaning, energy meters and water purificatio
Slide 37: Q&A Session
Q&A SESSION Presentation Q1 2024 – 27 May 2024 / SP Group 37
Slide 38: Appendix
APPENDIX Presentation Q1 2024 – 27 May 2024 / SP Group 38
Slide 39: Surface Solutions
SURFACE SOLUTIONS • Accoat develops and produces environmentally- friendly technical solutions involving fluoroplastics (Teflon®), PTFE and other pure materials for industrial and medical purposes • Accoat applies plastic coatings on products and production plants in a number of industries. Articles
Slide 40: Coatings
SURFACE SOLUTIONS COATINGS 2023 in highlights • New tasks in the food industry • More tasks in the medical device industry • The aftermath of the Corona pandemic, continued war in Ukraine, interest rate hikes and global turmoil have had an impact on the level of activity • Some of the company’s cust
Slide 41: Plastic Solutions
PLASTIC SOLUTIONS Plastic businesses include: • Injection Moulding and Blow Moulding: SP Moulding, Sander Tech, Coreplast, Ulstrup Plast, Neptun Plast, SP Medical, MedicoPack and Meditec • Polyurethane (PUR) and Composite: Ergomat, Tinby, TPI Polytechniek, Bröderna Bourghardt and MM Composite • Vacu
Slide 42: 3D Printing and Machining Operations / 1
PLASTIC SOLUTIONS 3D PRINTING AND MACHINING OPERATIONS / 1 • DAVINCI 3D A/S, Bovil ApS and Kodaň Plast s.r.o. • DAVINCI 3D is specialised within advanced Additive Manufacturing (3D print) and can 3D print subjects in many colours and in varying hardness • Bovil is specialised in CNC processing of te
Slide 43: 3D Printing and Machining Operations / 2
PLASTIC SOLUTIONS 3D PRINTING AND MACHINING OPERATIONS / 2 2023 in highlights • New customers • High activity • DAVINCI 3D has performed well • Invested in new machines • Bovil has grown steadily since the takeover • Has launched a number of large investments • Kodaň Plast has accelerated its handso
Slide 44: Injection Moulding & Blow Moulding / 1
PLASTIC SOLUTIONS INJECTION MOULDING & BLOW MOULDING / 1 • SP Moulding, Sander Tech, Coreplast, Meditec and Ulstrup Plast are leading manufacturers of injection-moulded plastic precision components for a wide range of industrial entities • SP Moulding (Suzhou) in China, SP Moulding in Poland and Uls
Slide 45: Injection Moulding & Blow Moulding / 2
PLASTIC SOLUTIONS INJECTION MOULDING & BLOW MOULDING / 2 2023 in highlights • Global progress • Many new tasks • New factory in the USA in 2024 • Despite challenges we succeeded in securing many new projects • SP Moulding, Sander Tech, Ulstrup Plast and Coreplast saw a healthy intake of a number of
Slide 46: Polyurethane & Composite / 1
PLASTIC SOLUTIONS POLYURETHANE & COMPOSITE / 1 • Ergomat, Tinby, TPI Polytechniek, Bröderna Bourghardt and MM Composite • Locations: Søndersø (DK), Nørre Aaby (DK), Ejby (DK), Sieradz (PL), ‘s-Hertogenbosch (NL), Helsingborg (SE), Kungsbacka (SE), Cleveland (USA), Mount Pleasant (USA), Montreal (CAN
Slide 47: Polyurethane & Composite / 2
PLASTIC SOLUTIONS POLYURETHANE & COMPOSITE / 2 2023 in highlights • Higher activities • New products • Expansion in the Netherlands, Poland, USA, China and Latvia • Ergomat had a quiet year in 2023 and noted a decline in the primary markets • Tinby expanded its capacity to support global growth • TP
Slide 48: Vacuum Forming, Rotational Moulding and Extrusion / 1
PLASTIC SOLUTIONS VACUUM FORMING, ROTATIONAL MOULDING AND EXTRUSION / 1 • Gibo Plast, Dan-Hill-Plast and PlexxOpido develop, design and manufature thermo-formed, extruded and rotational-moulded plastic components • The components are i.a. used in refrigerators and freezers, buses and cars (automotiv
Slide 49: Vacuum Forming, Rotational Moulding and Extrusion / 2
PLASTIC SOLUTIONS VACUUM FORMING, ROTATIONAL MOULDING AND EXTRUSION / 2 2023 in highlights • More new tasks for heavy vehicles • Strong sale of own products for the maritime industry • Expansion of the production in Poland • Gibo Plast: Good activity. Managed to win a number of new projects • Worked
Slide 50: SP Group's Value Creation
SP GROUP’S VALUE CREATION = 0-100% regrind (recycled plastics) Presentation Q1 2024 – 27 May 2024 / SP Group 50
Slide 51: ESG-Data / 1
ESG-DATA / 1 ESG Category Indicator Entity 2019 2020 2021 2022 2023 E Raw materials Virgin plastics Kg 15,978,078 15,347,852 16,764,678 15,522,512 15,031,343 Regenerated materials Kg 412,941 1,465,875 2,609,507 2,774,306 2,419,097 Glass fibre Kg 9,730,540 9,937,401 6,860,301 3,428,861 7,136,414 Coat
Slide 52: ESG-Data / 2
ESG-DATA / 2 ESG Category Indicator Entity 2019 2020 2021 2022 2023 S Working hours Working hours Hours 3,528,715 3,700,898 3,991,107 3,996,388 3,712,963 (permanently employed) Working hours (temporarily employed) Hours 118,235 196,892 226,044 234,042 271,100 Working hours incurred (total) Hours 3,6
Slide 53: Further information
Further information: Frank Gad, CEO SP Group A/S, Snavevej 6-10, DK-5471 Søndersø Phone: +45 7023 2379 / +45 3042 1460 E-mail: fg@sp-group.dk www.sp-group.dk Presentation Q1 2024 – 27 May 2024 / SP Group 53