Sgl Carbon Se · XETR:SGL
Sgl Carbon — SGL Group — Cheuvreux 12th German Corporate Conference 2013
32 slides from Sgl Carbon's conference presentation, Jan 22, 2013
Slide 1: Cheuvreux 12th German Corporate Conference
Cheuvreux 12th German Corporate Conference Jürgen Muth, CFO Frankfurt 22 January 2013
Slide 2: Company profile
Company profile • SGL Group is one of the world’s largest • Sales of ~€ 1.75 bn in 2012 manufacturers of carbon-based products • Head office in Wiesbaden/Germany • Comprehensive portfolio ranging from carbon and graphite products to carbon • Approx. 6,500 employees worldwide fibers and composites •
Slide 3: Introduction to SGL Group's Businesses
Introduction to SGL Group’s Businesses Investor Relations Presentation Page 3
Slide 4: SGL Group Business structure
SGL Group Business structure Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) • Graphite & Carbon • Graphite Specialties (GS) • Carbon Fibers & Electrodes (GCE) • Process Technology (PT) Composite Materials • Cathodes & F
Slide 5: Base Materials Performance Products (PP)
Base Materials Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Performance Products (PP) Business units 2011 Group sales PP sales & EBIT margins • Graphite & Carbon 31% 29% Electrodes 24% 17% 24% 19% 19% CFC 15% 15% • Ca
Slide 6: Performance Products: Graphite electrodes for steel production in EAFs
Performance Products Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Graphite electrodes (GE) for steel production in EAFs • Growth in steel Worldwide steel production [in mt] production fuelled by infrastructure demand
Slide 7: Performance Products: Graphite electrodes
Performance Products Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Graphite electrodes Steelmaking – An Electric Arc Furnace (EAF) Graphite electrode Section view through EAF Graphite Electrodes Furnace shell Molten st
Slide 8: Graphite electrode production process
Performance Products Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Graphite electrode production process • GE critical to EAF furnace efficiency but only ~ 3% Graphite production of steelmaking conversion cost • GE is
Slide 9: Cathodes for the aluminum industry
Performance Products Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Cathodes for the aluminum industry • Aluminum demand driven by: Aluminum global production scenarios – Population growth and urbanization 2003 – 2020 /
Slide 10: Advanced Materials: Graphite Materials & Systems (GMS)
Advanced Materials Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Graphite Materials & Systems (GMS) Business units 2011 Group sales GMS sales & EBIT margins • Graphite Specialties 18% 14% • New Markets 8% 9% 13% 11% •
Slide 11: Best solutions for our customers
Graphite Materials & Systems Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Best solutions for our customers … ... in the PV / ... in the Chemical and ... in the LED Industry Semiconductor Industry Automotive Industry I
Slide 12: Graphite manufacturing passes multiple process steps
Graphite manufacturing passes multiple process steps Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) and requires 4 to 6 months of production time (net) Raw Materials (Pitches & Cokes) Pre-pressing Processes Pressing Bre
Slide 13: Innovation driving new product portfolio
Graphite Materials & Systems Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Innovation driving new product portfolio Examples: GMS 2011 sales: €469 million • Heaters, molds and insulation for photovoltaic applications •
Slide 14: Major customer industries and market shares 2011
Graphite Materials & Systems Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Major customer industries and market shares 2011 % of total Global market GMS sales 2011 share 2011 Chemicals 24% 30% Energy: Solar 21% 25% Ene
Slide 15: Advanced Materials: Carbon Fibers and Composites (CFC)
Advanced Materials Base Materials Advanced Materials Performance Products Graphite Materials & Carbon Fibers & (PP) Systems (GMS) Composites (CFC) Carbon Fibers and Composites (CFC) Business units 2011 Group sales CFC sales & EBIT margins • Carbon Fibers/ -3% -8% 4% -11% 2% Composite Materials -3% -
Slide 16: Where is carbon? Everywhere!
Where is carbon? Everywhere! Touching More and More of Everyday's Life Investor Relations Presentation Page 16
Slide 17: The only integrated European carbon fiber producer
SGL Group The only integrated European carbon fiber producer Carbon Fibers & Composite Materials Composite Components Aerospace & Defense • HITCO (100%) Raw Carbon Composite Material Fiber Materials PAN Carbon Prepreg Industrial & Precursor Fiber Preform Energy • SGL Rotec (100%) • Fisipe (100%) • P
Slide 18: SGL Excellence – enables productivity and growth
Ensuring the future SGL Excellence – enables productivity and growth SGL Excellence • Started in 2002 • The core element of the Company mission Innovation • An ongoing and Company wide program Excellence • Our philosophy of doing business SIX SIGMA + LEAN Operational Commercial • Our core methodolog
Slide 19: SGL Excellence savings
Ensuring the future SGL Excellence savings Since 2002 continuous cost reduction of €257 million in total 55 25 27 28 21 23 23 24 16 15 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Annual Net Savings (€m) Investor Relations Presentation Page 19
Slide 20: Fundamental long-term growth drivers and mid term horizon
Fundamental long-term growth drivers and mid term horizon Investor Relations Presentation Page 20
Slide 21: Fundamental long-term growth drivers for our businesses
Fundamental long-term growth drivers for our businesses Strong growth in emerging countries (BRIC etc.) • Industrialization • Infrastructure build up Increasing demand for graphite electrodes and cathodes Investor Relations Presentation Page 21
Slide 22: Fundamental long-term growth drivers for our businesses
Fundamental long-term growth drivers for our businesses Changed economic Climate Energy / raw Key challenges environment change materials availability SGL Group “Towards an ecologically sensitive world” approach Sustainable Energy Alternative Light solutions efficiency energies weight Carbon contrib
Slide 23: Group Sales to increase by more than 10% p.a.
Mid Term Horizon (4-5 years) Group Sales to increase by more than 10% p.a.* Advanced Materials targeted to reach ~ 50% of Group sales €m 3000 CFC CFC JV sales GMS ~ € 0.5 bn** 2500 PP CFC ~25% 2000 GMS 1500 ~25% Group sales ~ €2.5 bn 1000 PP ~50% 500 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 20
Slide 24: EBIT Return on Sales target remains at minimum 12%
Mid Term Horizon (4-5 years) EBIT Return on Sales (ROS) target remains at minimum 12% Group EBIT ROS target of ≥ 12% to be achieved again in the mid term 20% 15% Target ≥ 12% 10% 5% 2005 2006 2007 2008 2009 2010 2011 2012 2013 • Outlook for 2013 uncertain due to unclear macroeconomic environment • N
Slide 25: Capex remains high until 2012 – Free Cash Flow turning positive in 2013
Mid Term Horizon (4-5 years) Capex remains high until 2012 – Free Cash Flow turning positive in 2013 Capex and depreciation expected to converge, capex/sales ratio to return to historical levels 250 20% Capex 200 Depreciation Capex/Sales 15% 150 €m 10% 100 5% 50 0 0% 2005 2006 2007 2008 2009 2010 20
Slide 26: EBIT ROCE target remains at minimum 17%
Mid Term Horizon (4-5 years) EBIT Return on Capital Employed (ROCE) target remains at minimum 17% Group EBIT ROCE target of ≥ 17% to be reached again by end of the planning period 30% 120% 25% 100% Target ~80% 20% 80% 15% Target ≥ 17% 60% 10% 40% 5% EBIT ROCE (left hand scale) 20% Capital intensity*
Slide 27: Performance Products: new facility in Malaysia on stream
Mid Term Horizon (4-5 years) Performance Products New state-of-the-art facility in Malaysia on stream; strong cash flow 1400 Sales (left hand scale) Sales to reach 35% EBIT ROS (right hand new peak levels scale) 30% 1200 25% 1000 Longer term EBIT ROS target > 20% 20% €m EBIT ROS target 15 - 20% 800
Slide 28: Graphite Materials & Systems: sales growth accelerating
Mid Term Horizon (4-5 years) Graphite Materials & Systems Sales growth accelerating; EBIT ROS ≥ 10% throughout planning period 700 Sales (left hand scale) Sales growth 20% EBIT ROS (right hand ≥ 10% p.a. scale) 18% 600 16% 14% 500 12% €m EBIT ROS target > 10% 400 10% 8% 300 6% 4% 200 2% 100 0% 2005
Slide 29: Carbon Fibers & Composites: sales growth to accelerate
Mid Term Horizon (4-5 years) Carbon Fibers & Composites Sales growth to accelerate 1200 Sales (left hand scale) 15% Additional sales from At-Equity EBIT ROS (right hand consolidated JVs in CFC* scale) 1000 10% EBIT ROS target > 10% 800 5% €m 600 0% 400 CFC sales growth ≥ 20% p.a. -5% 200 0 -10% 2005
Slide 30: Key mid term messages and targets
Key mid term (4-5 years) messages and targets Delivering profitable growth ! Group • Sales growth accelerating due to new assets: >10% p.a. organic CAGR →reaching Group sales of €2.5 billion in the mid term →plus approx. €500 million sales from at-equity accounted JVs in CFC (calculated on 100% owne
Slide 31: Thank you for your attention! Any Questions?
Thank you for your attention ! Any Questions ? Investor Relations Presentation Page 31
Slide 32: Important note: forward looking statements
Important note: This presentation contains forward looking statements based on the information currently available to us and on our current projections and assumptions. By nature, forward looking statements are associated with known and unknown risks and uncertainties, as a consequence of which actu
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