Centrotec Se · HAM:CEV
Centrotec — CENTROTEC Sustainable — Q3 2017 Earnings Presentation
17 slides from Centrotec's earnings presentation, Nov 14, 2017
Slide 1: Key Financials for the third quarter of 2017
COMING UP… Key Financials for the third quarter of 2017 Tuesday, November 14, 2017 at 10:00 a.m. (CET) presented by Dr Thomas Kneip, CFO
Slide 2: Third Quarter Results 2017
CENTROTEC Sustainable AG Third Quarter Results 2017 November 14, 2017 CENTROTEC – The European Energy-Saving Company
Slide 3: Agenda
AGENDA Market Overview Key Financial Results Q3 2017 Outlook
Slide 4: German heating market with slow growth in 2017; stabilized in Q3
German heating market with slow growth in 2017; stabilized in Q3 MARKET DEVELOPMENT Quarterly market growth rate of oil and gas heat generating units in Germany [in percent compared to same quarter of previous year] 8 8 Annual 6 growth rate 6 3 0 0 -2 Annual -5 growth rate -6 -7 Q1/15 Q2/15 Q3/15 Q4
Slide 5: Market development – other
Positive ventilation market; stable CHP; further decrease in solar thermal in 2017 MARKET DEVELOPMENT – OTHER Ventilation Solar thermal + German market for residential Market development p.a. ventilation in 2016 with growth (+6%) European core markets* 1 + Further growth in 2017 with centralized and
Slide 6: Agenda
AGENDA Market Overview Key Financial Results Q3 2017 Outlook
Slide 7: Increase of sales in all segments; decreasing growth rate in Q3
Increase of sales in all segments; decreasing growth rate in Q3 REVENUE DEVELOPMENT by Segment Drivers of Revenue Development in EUR million 1.8% + Continued growth in many international 151.9 154.6 markets Med. Tech. & 11.6 11.8 +2.5% + Air Handling Units overall in line Eng. Plastics + Gas Flue Sy
Slide 8: Positive impact of internationalization strategy
Positive impact of internationalization strategy INTERNATIONAL SALES Sales by Region Situation in percent of total revenue • Focused activities in international markets, like Italy, Spain, Eastern Europe, Russia and China show success 55.3% 53.3% Germany • New management installed at Wolf France, It
Slide 9: Product mix shift and investments in future growth lead to lower earnings
Product mix shift and investments in future growth lead to lower earnings EBIT DEVELOPMENT Q3 by Segment Drivers of EBIT Development [in EUR million] Climate Systems -8.8% 14.6 + Strong performance in AHU business (with Med. Tech. & 1.5 13.4 lower gross margin than heating) Eng. Plastics 1.0 -32.0%
Slide 10: EAT burdened by lower operating result
EAT burdened by lower operating result EAT TRANSITION 2016 VS. 2017 [in EUR million] Explanation • Lower operating result EAT (YtD Q3/2016) 13.8 • Depreciations grown due to high investments of former years Δ EBITDA 3.6 • Lower interest in the first nine month • Tax decrease due to lower earnings; s
Slide 11: Investments in organic growth
Investments in organic growth INVESTMENTS BY SEGMENT Q3 Investments +20% 6.8 Key Investments in the first nine month (excl. M&A) [in EUR] 1.0 -36% Climate Systems: 5.7 • Production infrastructure • Building purchase for production Med. Tech. & 1.6 +35% expansion 1.6 Eng. Plastics Gas Flue Systems: G
Slide 12: Financial ratios on high level; equity lower due to financing activities
Financial ratios on high level; equity lower due to financing activities KEY BALANCE SHEET AND CASH FLOW RATIOS Equity Ratio Net Financial Position / Equity 0.03 50.0 50.2 49.7 48.9 49.1 -0.01 48.7 48.5 -0.01 48.1 48.3 47.8 -0.03 -0.04 46.2 -0.07 45.0 -0.10 -0.10 -0.10 -0.10 -0.11 -0.13 41.7 -0.18 3
Slide 13: Overview of promissory note
CENTROTEC places promissory note in the amount of EUR 90 m OVERVIEW OF PROMISSORY NOTE Highlights Total Amount 90 Mio. EUR - Thereof 7 Years 71 Mio. EUR - Thereof 10 Years 19 Mio. EUR Average Fixed Interest Rate <2% p.a. Current low interest rates secured for long-term financing. Purpose: General re
Slide 14: Agenda
AGENDA Market Overview Key Financial Results Q3 2017 Outlook
Slide 15: Outlook: Further growth
Further growth OUTLOOK Revenue [in million EUR] Rationale 575.5 575 to 600 Med. Tech. & 45.5 + Positive sales development in almost all Eng. Plastics 113.0 international markets in line with Gas Flue Systems expectations + Good performance in AHU, partly supported by stricter regulations Climate Sys
Slide 16: Financial calendar 2017
Financial calendar 2017 FINANCIALS November 14 Publication of Q3/2017 November 27-29 Deutsches Eigenkapitalforum Frankfurt 16
Slide 17: Thank you!
Thank you ! This presentation contains forward-looking statements based on current expectations, assumptions and forecasts of the executive board and on currently available information. Various known and unknown risks, unpredictable developments, changes in the economic and political environment and
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