Semperit Ag Holding · VIE:SEM

Semperit — Investor Presentation (January 2020)

18 slides from Semperit's investor presentation, Jan 30, 2020

  1. Slide 1: Future Strategy: Focus on industrial rubber, separation from medical business

    SEMPERIT GROUP FUTURE STRATEGY: Focus on industrial rubber, Separation from medical business Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 30 January 2020 1

  2. Slide 2: Agenda

    Agenda 1. Towards market orientation 2. Changing Business Model 3. New Financial Framework 4. New Financial Targets 5. New Investment Proposition 2 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  3. Slide 3: Higher market and customer orientation

    Higher market and customer orientation  New industrial rubber strategy with focus on regional and application-related customer intimacy Industry only  New COO for Industrial core business with strong industry specific background  Separation from the medical segment decided  5% CAGR Organic growt

  4. Slide 4: 1st key initiatives

    1st key initiatives  New industrial rubber strategy with focus on regional and application-related customer intimacy  New COO for Industrial core business appointed in charge of Semperit Lean Programme, supply chain management and Mixing business  Separation from the medical segment decided  Set

  5. Slide 5: Agenda

    Agenda 1. Towards market orientation 2. Changing Business Model 3. New Financial Framework 4. New Financial Targets 5. New Investment Proposition 5 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  6. Slide 6: Leveraging new growth opportunities – Semper Growth200

    Leveraging new growth opportunities –Semper Growth200 Low coverage of regions and • Diversify portfolio geographically with first industries focal point on North America Competition predominantly by (product-) cost positioning • Product and customer centric focus • Digitization and innovation Strong

  7. Slide 7: Industry sector heavily exposed to the European market

    Example: The portfolio of the industry sector is heavily exposed to the European market with ~75% of total revenues in 2018 Semperit Industrial Sector – Segment Revenues by Region [EUR mn, 2018] 145 230 192 567 1% 1% • Throughout the businesses, EMEA 6% 5% 2% 100% 10% 8% and especially Western Europ

  8. Slide 8: Agenda

    Agenda 1. Towards market orientation 2. Changing Business Model 3. New Financial Framework 4. New Financial Targets 5. New Investment Proposition 8 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  9. Slide 9: Principles of financial policy

    Principles of financial policy Stringent value management and cash generation KEY KPIs: FOCUS: top-line growth, Sales growth, profitability, EBITDA margin, cash and returns FCF, ROCE PRINCIPLES: portfolio upgrade, platform leverage, operational excellence, financial discipline, capital efficiency, r

  10. Slide 10: Mid-term capital allocation priorities

    Mid-term Capital allocation priorities Organic growth Balance sheet management Future dividend commitment (50% of positive net result) Bolt-on acquisitions (contingent on Sempermed sale) Mid-term ROCE target: ~10% 10 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  11. Slide 11: New financial policy framework

    New financial policy framework Based on the new Industrial structure % € € € 5% CAGR Group EBITDA margin Free Cash Flow ROCE ~10% top-line growth ~13% positive t+1 following (by end of 2024) (by end of 2024) sale of Sempermed € € Equity ratio >30% Net debt / EBITDA Working capital to Cost at Corpora

  12. Slide 12: Sempermove10 shows material impact: consistent yoy EBITDA improvement

    Sempermove10 shows material impact: Consistent yoy EBITDA improvement for 7th consecutive quarter 22.7 10.1% 17.0 17.3 15.8 16.5 7.5% 8.0% 7.7% 13.1 7.1% 5.9% 4.5 2.2% 1) 2) Q1 Q2 Q3 Q4 EBITDA margin 2018 EBITDA margin 2019 EBITDA, in EURm 2018 EBITDA, in EURm 2019  Positive development of profitab

  13. Slide 13: Cash flow development

    Cash flow development  Improved results, active WC management and strict CAPEX control support cashflow development  First positive free cash flow after negative previous years Development of cash flow components1) in € m 83 50 60 34 15 -9 -21 -42 -23 -43 -57 -71 Q1-3 2016 Q1-3 2017 2) Q1-3 2018 Q

  14. Slide 14: Financial profile and covenants

    Financial profile and covenants Equity ratio of 39.7% as of 30 September 2019 (Covenant: >30%) Net debt / EBITDA of 1.1 times (Covenant: <3.5x) Hybrid capital of €130m strengthens equity, additional option to draw remaining 20 mn  strengthened equity being a perpetual, review exercise of call optio

  15. Slide 15: Agenda

    Agenda 1. Towards market orientation 2. Changing Business Model 3. New Financial Framework 4. New Financial Targets 5. New Investment Proposition 15 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  16. Slide 16: New financial targets with focus on industrial rubber

    New financial targets with focus on industrial rubber Ø 2017 – Q1-3’19 2024 Sales 0% 5% CAGR top-line annual growth1) EBITDA Margin adj. 5.9% Group EBITDA margin move to ~13% ’16 – ’18: negative2) Free Cash Flow positive t+1 following sale of Sempermed ’19: positive ROCE – ROCE ~10% Equity ratio 38%

  17. Slide 17: Agenda

    Agenda 1. Towards market orientation 2. Changing Business Model 3. New Financial Framework 4. New Financial Targets 5. New Investment Proposition 17 Investor Presentation Future Strategy I 30 January 2020 I Investor Relations

  18. Slide 18: New Investment Proposition

    New Investment Proposition Industrial rubber • International diversification with stronger focus on North America specialist leveraging new • Global platform for procurement, supply chain and growth prospects manufacturing excellence • Centralised regional centres with clear focus on profitability …

Semperit AG Holding — Investor Presentation (January 2020) on 6ix