Kloeckner & Co SE · XETR:KCO
Kloeckner & — Klöckner & — FY2018 Earnings Presentation
25 slides from Kloeckner &'s earnings presentation, Mar 12, 2019
Slide 1: FY 2018 Results
FY 2018 Results Analysts’ and Investors’ Conference March 12, 2019 Gisbert Rühl | CEO Marcus A. Ketter | CFO Jens M. Wegmann | COO 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements which reflect the current views of the management of Klöckner & Co SE with respect to future events. They generally are designated by the words “expect”, “assume”, “presume”, “intend”, “estimate”, “strive for”, “aim for”, “plan”, “will
Slide 3: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 3 FY 2018 Results | Analysts’ and Investors’ Conference | Klöckner & Co SE
Slide 4: Highlights FY 2018
01 Highlights FY 2018 Shipments with 6.1mt on last year‘s level FY 2018 Sales increased by 7.9% yoy to €6.8bn due to higher price level Sales Gross profit up from €1,316m in 2017 to €1,328m in 2018 €6,790m Gross profit margin decreased to 19.6% after 20.9% in 2018 EBITDA €227m EBITDA of €227m as for
Slide 5: Progress on implementing "Klöckner & Co 2022"
01 Progress on implementing “Klöckner & Co 2022” Digital sales share increased from 17% in Q4 2017 to 25% in Q4 2018 Digitalization Online shops transformed to “Marketplace” for vendors of complementary and platforms products, digital consulting established – partnering with Axel Springer hy XOM ord
Slide 6: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 6 FY 2018 Results | Analysts’ and Investors’ Conference | Klöckner & Co SE
Slide 7: Shipments/sales and gross profit
02 Shipments/sales and gross profit Shipments (Tto)/sales (€m) Gross profit (€m)/gross margin (%) 367 364 1,789 1,754 1,572 339 1,602 1,640 1,628 331 332 1,605 1,619 1,582 1,565 1,584 319 1,539 1,519 310 1,485 300 301 1,450 1,443 1,397 1,398 22.8 22.9 20.6 20.2 19.8 20.4 20.3 18.9 18.6 Q4 Q1 Q2 Q3 Q
Slide 8: EBITDA in FY 2018
02 EBITDA in FY 2018 Q4 yoy (€m) Comments Q4 • Negative volume and price effect of in total €8m mainly due -5 -3 3 to weaker automotive business -3 5 33 • EBITDA contribution of One Europe and One US of €5m 30 • OPEX increased mainly driven by shipping cost and supplies • EBITDA margin 1.9% EBITDA V
Slide 9: Segment performance FY 2018
02 Segment performance FY 2018 Europe (€m) Europe -19 • Volume effect -€19m and price effect -€36m – both -36 mainly due to weaker automotive business 16 -13 -2 -7 152 • BPO expense mainly related to severance provisions 91 • EBITDA margin 2.2% EBITDA Volume Price One OPEX F/X BPO EBITDA FY 2017 eff
Slide 10: Cash flow and net debt development
02 Cash flow and net debt development Cash flow FY 2018 (€m) Comments • Net working capital increase of €65m -65 • “Other” mainly relates provisions (pensions, social -25 plans/redundancy programs, etc.) -33 -2 227 -42 • Cash flow from operating activities +€60m 36 • Free cash flow positive with €1m
Slide 11: Maturity profile – well-balanced & diversified funding portfolio
02 Maturity profile – well-balanced & diversified funding portfolio Drawn amount (€m, IFRS*)) Facility Committed (€m) €m FY 2018 FY 2018 FY 2017 Syndicated Loan 300 0 0 Adjusted equity 1,255 ABS Europe 300 110 79 Net debt 383 ABS/ABL USA 480 172 157 Leverage 1.7x Convertible 2016 1) 148 138 135 Gear
Slide 12: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 12 FY 2018 Results | Analysts’ and Investors’ Conference | Klöckner & Co SE
Slide 13: Region specific business outlook 2019
03 Region specific business outlook 2019 Europe ~1% Manufacturing, Real steel Construction machinery and Energy Automotive Shipbuilding demand industry mechanical industry industry engineering, etc. US 1-2% 13 FY 2018 Results | Analysts’ and Investors’ Conference | Klöckner & Co SE
Slide 14: Outlook
03 Outlook Seasonally higher sales anticipated Q1 2019 Reported EBITDA to be between €20-30m (incl. IFRS 16) Considerably higher sales anticipated due to higher average price level FY* EBITDA lfl significantly below last year’s level and incl. IFRS 16 2019 slightly above 2018 *for expected IFRS 16 e
Slide 15: Agenda
Agenda 1. Highlights and update on strategy 2. Financials 3. Outlook 4. Appendix 15 FY 2018 Results | Analysts’ and Investors’ Conference | Klöckner & Co SE
Slide 16: Quarterly and FY results
04 Quarterly and FY results Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 FY FY FY FY FY (€m) 2018 2018 2018 2018 2017 2017 2017 2017 2016 2016 2016 2016 2018 2017 2016 2015 2014 Shipments (Ttons) 1,398 1,519 1,605 1,584 1,443 1,539 1,572 1,582 1,450 1,500 1,643 1,556 6,107 6,135 6,149 6,476 6,598 Sales 1,619
Slide 17: Segment performance
04 Segment performance Shipments (Tto) Sales (€m) EBITDA adj*) (€m) 926 1,068 54 911 901 1,032 896 885 1,019 1,014 Europe 867 999 985 827 36 37 35 816 943 934 33 31 28 763 25 883 -6.4% -0,9% 7 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2017 2017 2017 2017 2
Slide 18: IFRS 16 impact
04 IFRS 16 impact IFRS 16 effect in 2019 (estimates) Key Figure €m Tendency Comment Sales - No impact OPEX ~45 – 50 Recognition of lease expenses as depreciation and interest costs; exception: short-term leases and low-value assets, remaining material costs EBITDA ~45 – 50 Lower leasing expenses D&A
Slide 19: Strong balance sheet
04 Strong balance sheet Assets Equity & liabilities 3,061 3,061 2,886 2,886 832 Non-current assets 834 1,282 Equity 1,202 42% 39% 39% 42% 1,242 521 Inventories 1,105 Financial liabilities 479 Pensions 282 260 Trade receivables 680 740 Trade payables 653 753 Other current assets Liquidity 113 106 Oth
Slide 20: Sales by markets, products and industries
04 Sales by markets, products and industries Sales by markets Sales by industry 3% Netherlands 1% 4% 4% Brazil Miscellaneous UK 8% Local dealers 9% 8% France/ Household appl./ Belgium Consumer goods 39% 40% USA Construction 13% industry Sales by products Automotive 15% industry Switzerland 11% Other
Slide 21: Current shareholder structure
04 Current shareholder structure Geographical breakdown of identified Comments institutional investors • Identified institutional investors account for 72% 3% Rest of world • German investors incl. retail dominate 6% Rest of EU 1% Switzerland • Top 10 shareholdings represent around 55% 1% France • R
Slide 22: Share price performance in FY 2018
04 Share price performance in FY 2018 Share performance Klöckner & Co SE in FY 2018 • In the first half of 2018, the Klöckner & Co share 12,00 € 14.000 price moved mainly sideways, reaching its 11,00 € 13.500 annual high of €11.62 on April 23 13.000 • The share repeatedly suffered price setbacks 10,
Slide 23: Dividend policy
04 Dividend policy In general, Klöckner & Co SE follows a dividend policy of distributing 30% of net income before special items. Given the volatility of our business model, a sustainable dividend payment can not be guaranteed. If there is a possibility of dividend distribution, we will do it for th
Slide 24: Sustainability strategy
04 Sustainability strategy A qualified and motivated workforce of employees who feel at ease in the workplace pave the way for us to generate added value. An integral part of our corporate culture is compliance on the part of our employees and business partners, constituting the basis of corporate r
Slide 25: Contact details and financial calendar
Contact details Financial calendar Christina Kolbeck April 30, 2019 Q1 quarterly statement 2019 Head of Investor Relations & Sustainability May 15, 2019 Annual General Meeting 2019 Phone: +49 203 307 2122 July 31, 2019 Half-yearly financial report 2019 Fax: +49 203 307 5025 October 30, 2019 Q3 quart