Alzchem Group Ag · XETR:ACT
Alzchem — Q2 2018 Earnings Presentation
33 slides from Alzchem's earnings presentation, Sep 17, 2018
Slide 1: 2018 / Q2 AlzChem Group AG
2018 / Q2 AlzChem Group AG Ulli Seibel, CEO Andreas Niedermaier, CFO Sep 17, 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 Q2 2018 – Analyst presentation EXECUTIVE SUMMARY Q2 2018 BUSINESS AND FINANCIAL DETAILS Q2 2018 BACK-UP ALZCHEM GROUP – Q2 – ANALYST PRESENTATION 3
Slide 4: Highlights 2018 strategic targets
HIGHLIGHTS 2018 Strategic and operational targets for Q2 2018 achieved Growth focus on specialty chemicals STRATEGIC Preparing for own distribution of Creamino® TARGETS Groundbreaking of Nitriles production expansion FINANCIAL Significant sales growth (+ 6.8 % half-year) TARGETS Strong growth of EBI
Slide 5: Start own Creamino distribution on January 1, 2019
Start own Creamino®1 distribution on January 1, 2019 Strategic step to further develop our fast-growing product Creamino® • is a unique creatine source for animal nutrition. • elevates creatine stores in the body. • spares arginine. • supplies energy. • benefits poultry and pig nutrition. CREAMINO –
Slide 6: Q2 Financial Overview
Q2 FINANCIAL OVERVIEW Q2 result on track to full year guidance ALZCHEM GROUP [m€] Q2 / 2017 Q2 / 2018 yoy % 1-6 / 2017 1-6 / 2018 yoy % SALES 91.7 100.7 9.9% 182.8 195.2 6.8% EBITDA 14.5 15.9 9.6% 27.9 31.0 10.8% EBITDA margin 15.8% 15.8% 15.3% 15.9% 0.6 pp COMMENTS • Significant growth in sales, dr
Slide 7: Agenda
AGENDA Q2 2018 – Analyst presentation EXECUTIVE SUMMARY Q2 2018 BUSINESS AND FINANCIAL DETAILS Q2 2018 BACK-UP ALZCHEM GROUP – Q2 – ANALYST PRESENTATION 7
Slide 8: 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 9: Segment Basics & Intermediates
SEGMENT BASICS & INTERMEDIATES Segment analysis – financial overview SALES SALES EBITDA SALES ANALYSIS -0.3% -2.2% Q2/2017 - 0.5% + 1.1% - 0.9% 35.0 35.5 35.7 37.0 37.8 36.9 vs. 34.2 Volume Price FX 29.3 30.3 Q2/2018 72.7 71.1 -73.7% YTD 2017 - 1.3% + 0.2% - 1.1% vs. 4.8 YTD 2018 Volume Price FX Q2
Slide 10: 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®1), a dietary supplement for the nutrition market (Creapure®), highly purified guanidine hydrochlori
Slide 11: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS Segment analysis – financial overview SALES SALES EBITDA SALES ANALYSIS +18.7% 14.7% Q2/2017 + 18.7% + 1.9% - 1.8% 49.7 53.9 56.8 vs. 48.7 47.9 45.1 44.1 Volume Price FX 41.2 110.7 Q2/2018 35.7 96.5 25.4% YTD 2017 + 15.4% + 1.4% - 2.2% vs. 28.8 Volume Price FX YTD 2018 Q2
Slide 12: 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 13: Segment Other & Holding
SEGMENT OTHER & HOLDING Segment analysis – financial overview SALES SALES EBITDA SALES ANALYSIS 3.0% -1.3% 6.5 6.8 6.8 7.0 6.8 6.5 7.0 Q2/2017 + 1.5% + 1.5% ± 0% 5.8 6.2 vs. 13.6 Volume Price FX 13.4 Q2/2018 156.6% YTD 2017 - 2.4% + 1.5% ± 0% 0.5 vs. Volume Price FX YTD 2018 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 14: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP (IN T€) 31.12.2017 30.06.2018 Deviation ALZCHEM GROUP (IN T€) 31.12.2017 30.06.2018 Deviation Intangible assets 1.009 991 -19 -1,9% Share capital 101.763 101.763 Tangible assets 115.131 123.161 8.029 7,0% RETAINED EARNINGS (+) / LOSS (-) 49.047 65.032 15.985
Slide 15: Pension Accounting
PENSION ACCOUNTING 0% 107.2 107.1 0.5 0.9 -0.3 -1.2 -19.2 87.9 PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION IN FINANCIAL PROVISION COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31 Dec, 2017 EBITDA MENTS 31 Mar, 2018 30 Jun, 2018 (PERSONELL FINANCIA
Slide 16: Cash Flow
CASH FLOW Growth CAPEX is the basis for further growth Net cash from Net increase/ decrease Operating Cash Flow [M€] Investing Cash Flow [M€] financing activities [M€] [M€] COMMENTS • healthy operating cash flow due to higher EBITDA • higher investing cash flow mainly due to investments in Creamino®
Slide 17: Outlook 2018
OUTLOOK 2018 Sales and earnings growth continue – Q2 confirms forecast 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 49.0 • E
Slide 18: Outlook 07/18-06/19
OUTLOOK 07/18-06/19 Sales and earnings growth continue SALES EBITDA COMMENTS 380.6 • sales growth will be driven primarily by specialty chemicals, mainly through 370.6 Creamino®, Creapure® and Custom 366.4 Synthesis 53.0 • Further reduced dependence on Basics & Intermediates 48.7 48.1 • EBITDA growt
Slide 19: Outlook 2018 Underlying assumptions
OUTLOOK 2018 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 vo
Slide 20: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2018 SEP 17 FINANCIALS REPORT SHORT FINANCIAL YEAR 2018 (1-6) 2018 NOV 12 Q1 FIGURES 2018 (7-9) 2018 NOV 22 2nd GENERAL MEETING 2018 ALZCHEM GROUP – Q2 – ANALYST PRESENTATION 20
Slide 21: Short fiscal year
Mio € Mio € Mio € 1,524 EMPLOYEES ~195 SALES ~31 EBITDA ~ 15 OPERATING CASHFLOW ALZCHEM SPECIALTY PRODUCTS CHEMICALS ARE SOLD 56,7% BASICS & WORLDWIDE INTERMEDIATES SALES 36,4% short fiscal INNOVATION SINCE year 1908 OTHERS & HOLDING 6,9% All financial indicators as at 30.06.2018
Slide 22: 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 23: Agenda
AGENDA Q2 2018 – Analyst presentation EXECUTIVE SUMMARY Q2 2018 BUSINESS AND FINANCIAL DETAILS Q2 2018 BACK-UP ALZCHEM GROUP – Q2 – ANALYST PRESENTATION 23
Slide 24: Income Statement
INCOME STATEMENT AlzChem Group ALZCHEM GROUP (IN T€) 30.06.2017 30.06.2018 Deviation Revenue 182.814 195.241 12.426 6,8% Changes in inventories of finished goods and work in progress 1.537 4.790 3.253 211,6% Other income 5.234 6.599 1.365 26,1% Raw materials and consumables used -68.923 -80.180 -11.
Slide 25: Cash Flow
CASH FLOW AlzChem Group CASHFLOW [m€] Q2 / 2017 Q2 / 2018 yoy % 1-6 / 2017 1-6 / 2018 yoy % OPERATING CASHFLOW 6.9 15.6 126.1% 14.0 15.4 10.0% INVESTING CASHFLOW -3.7 -10.0 170.3% -7.4 -15.7 112.2% FREE CASHFLOW 3.2 5.6 75.0% 6.6 -0.3 -104.5% RAISING / REPAYMENT FROM LOANS -1.4 -1.4 -2.8 -2.6 -7.1%
Slide 26: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group Q2 2017 Q2 2018 SALES [m€] Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 YTD YTD yoy % SPECIALTY CHEMICALS 48.7 47.8 45.1 44.1 53.9 56.8 96.5 110.7 14.7% BASICS & INTERMEDIATES 35.7 37.0 37.8 30.3 34.2 36.9 72.7 71.1 -2.2% OTHER & HOLDING 6
Slide 27: 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 42 49 58 WITH ALZCHEM SINCE1 2009 1999 1988 DEGREE Industrial Engineering Industrial Engineering Mechanical Engin
Slide 28: 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 – Q2 – ANALYST PRESENTATION WALDKRAIBURG (GER) 28
Slide 29: Fully integrated business model (Verbund system)
Fully integrated business model (“verbund” system) Flexibility to adapt production to meet 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 • Transport cost advantage as compared to
Slide 30: Overview of Specialty Chemicals products
INTRODUCTION TO GROUP SEGMENTS Overview of Specialty Chemicals products KEY PRODUCTS DESCRIPTION END MARKETS (1) 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 A
Slide 31: Overview of B&I products and O&H services
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 32: Stock Share details
STOCK Share details SHAREHOLDER STRUCTURE % ISIN / WKN DE000A0AHT46 / A0AHT4 LIVIA Corporate Development SE 47.70 TICKER SYMBOL SFP1 HDI Vier CE GmbH 26.38 TYPE AND NUMBER OF 101.763.355 bearer shares SHARES with no par value (par value shares) Four two na GmbH 19.79 STOCK Regulierter Markt (Prime S
Slide 33: Q2 Sales by Region
Q2 SALES BY REGION ASIA/PACIFIC intensive marketing strategy pays back GERMANY EMEA ASIA / PACIFIC NORTH AMERICA SOUTH AMERICA Q2 / Q2 / Q2 / Q2 / Q2 / Q2 / Q2 / Q2 / Q2 / Q2 / yoy % yoy % yoy % yoy % yoy % 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 38.2 42.4 11.0% 31.3 35.0 11.8% 10.4 10.4 7