Semperit Ag Holding · VIE:SEM

Semperit — Q1 2018 Earnings Presentation

34 slides from Semperit's earnings presentation, May 25, 2018

  1. Slide 1: Semperit Group Q1 2018 Investor Presentation

    SEMPERIT GROUP Q1 2018 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 25 May 2018 1

  2. Slide 2: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 20) Appendix (p. 23) 2 Investor Presentation Q1 2018 I 25 May 2018 I Investor Relations

  3. Slide 3: State of restructuring

    State of restructuring Timeline Financial target of …  Transformation process  ~10% EBITDA margin by started in late 2017 end of 20201)  Restructuring and transformation until 2020 … requires EBITDA uplift of …  ~ € 50-70m in total by end of 2020 Focus on Operations initiatives Sales initiatives

  4. Slide 4: Dedicated Board responsibilities

    Dedicated Board responsibilities Dr. Martin Füllenbach Frank Gumbinger Michele Melchiorre CEO CFO COO  Business  Finance Sectors  Business Sector Industrial Medical and Industrial Sector Medical  Business Development  Accounting  Manufacturing  Communications &  Controlling Engineering Areas

  5. Slide 5: Restructuring update by segment

    Restructuring update by segment Industrial Sector Semperflex  Major profit generators and technology leaders in its sector  Strong contributors to profit, cash and innovation Semperform Sempertrans  Result of the restructuring analysis: Sempertrans has the potential to become a successful industr

  6. Slide 6: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 20) Appendix (p. 23) 6 Investor Presentation Q1 2018 I 25 May 2018 I Investor Relations

  7. Slide 7: Q1 2018: Strong EBITDA development

    Q1 2018: Strong EBITDA development Revenue EBITDA Raw material € 229m –3.7% € 221m € 16m +65%  Sideward trend for € 10m1) rubber prices  Prices for carbon black, Revenue Revenue Operating EBITDA EBITDA wires and some other Q1 2017 Q1 2018 Q1 2017 Q1 2018 raw materials still increasing Earnings aft

  8. Slide 8: Overview Semperflex and Sempertrans

    Overview Semperflex and Sempertrans Q1 2018 vs. Q1 2017 Revenue 59 current period Semperflex Revenue  Market demand up by 8-10% 54 previous period  Hydraulic hoses: solid increase of volume as EBITDA new capacities in Czech Republic available current period 14  Encouraging level of profitability

  9. Slide 9: Overview Semperform and Sempermed

    Overview Semperform and Sempermed Q1 2018 vs. Q1 2017 Revenue 47  Encouraging overall volume development, Semperform current period Revenue mainly due to strong European demand 45 previous period  Window and door profiles: continuous EBITDA expansion into aluminium windows 5 current period  Busin

  10. Slide 10: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 20) Appendix (p. 23) 10 Investor Presentation Q1 2018 I 25 May 2018 I Investor Relations

  11. Slide 11: Q1 2018 Financials / Profitability Overview

    Q1 2018 Financials / Profitability Overview Change in EUR m Q1 2018 Q1 2017 Change in EUR m Revenue 220.9 229.3 -3.7% -8.4 EBITDA adjusted 1) 15.8 9.6 +64.5% 6.2 EBITDA margin adjusted 7.1% 4.2% +2.9 PP – EBITDA 15.8 94.4 -83.3% -78.7 EBITDA margin 7.1% 41.2% -34.1 PP – EBIT adjusted 1) 6.0 1.5 > 10

  12. Slide 12: Revenue development Q1 2018 vs Q1 2017

    Revenue development Q1 2018 vs Q1 2017 in EUR m -3.7% Revenue development 229.3 +5.3 -6.7 +2.1 -9.2 220.9  Semperflex: mainly higher volume translates into higher revenue  Sempertrans: Volume and revenue decrease driven by product mix Industrial Sector Medical Sector  Semperform: encouraging over

  13. Slide 13: EBITDA Q1 2018 vs Q1 2017

    EBITDA Q1 2018 vs Q1 20171) in EUR m +65% 15.8 +3.2 -0.1 -0.4 +1.5 9.6 +2.1 Increased volume, increased profitability Q1 20171) Semperflex Sempertrans Semperform Sempermed Corporate Q1 2018 Operating EBITDA Q1 20171) 9.6m 11.7m 0.6m 5.0m 0.0m -7.6m EBITDA 13.7m 0.5m 4.5m 1.4m -4.4m 15.8m Q1 2018 EBI

  14. Slide 14: Operating EBITDA and EBITDA margin by quarter

    Operating EBITDA and EBITDA margin by quarter1) EBITDA margin EBITDA development EBITDA, in EURm 15.8  EBITDA in Q1 2018 significantly higher 12.9 than in Q4 2017 9.6 10.4  EBITDA margin of 7.1% well below target of ~10% by end of 2020 2.9 7.1%  All segments positive on EBITDA level 5.6% 5.0% 4.2

  15. Slide 15: CAPEX Overview

    CAPEX Overview CAPEX per Segment in EUR m 24.5 21.7 19.9 7.9 Semperflex 4.6 18.8 1.5 14.1 8.5 11.8 6.9 7.4 Sempertrans 5.2 1.5 1.4 1.5 1.6 2.7 Semperform 2.5 1.5 8.5 7.1 Sempermed 4.6 5.1 6.4 Other 0.2 0.3 0.0 0.2 0.1 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 15 Investor Presentation Q1 2018 I 25 May

  16. Slide 16: Working Capital Overview

    Working Capital Overview Components of Working Capital in EUR m 19.6%1) 20.1%1) 19.3%1) 17.1%1) 20.9%1) 168.9 180.9 175.8 168.7 152.4 145.0 141.5 161.6 Inventories 147.1 159.7 137.9 132.3 117.8 125.8 Trade receivables 103.6 -114.0 -98.0 -96.2 -110.9 -106.5 Trade payables 31 March 2017 30 June 2017 3

  17. Slide 17: Net debt significantly reduced

    Net debt significantly reduced Balance sheet structure 31 March 2018 Financial profile as of 31 March 2018 Balance sheet total: EUR 934 m  Cash and cash equivalents of EUR 214m  Financial liabilities:  Corporate Schuldschein loan of EUR 269m Fixed assets 409 410 Equity (incl. hybrid capital)  Li

  18. Slide 18: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 20) Appendix (p. 23) 18 Investor Presentation Q1 2018 I 25 May 2018 I Investor Relations

  19. Slide 19: Management agenda 2018

    Management agenda 2018 Focus on SemperMOVE10 to reach 10% EBITDA margin by end of 2020 through the following initiatives: Operations initiatives Sales initiatives Procurement,  Increase output / Overall  Volume growth SG&A initiatives Equipment Effectiveness (OEE) (new markets, new regions)  Sust

  20. Slide 20: Contact and financial calendar

    Contact and financial calendar Investor Relations Semperit Group Financial Calendar 2018 Stefan Marin, Head of Investor Relations 25.05.2018 Report on the first quarter of 2018 +43 1 79777 - 210 23.08.2018 Half-year financial report 2018 www.semperitgroup.com/en/ir 21.11.2018 Report on the first thr

  21. Slide 21: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 20) Appendix (p. 23) 21 Investor Presentation Q1 2018 I 25 May 2018 I Investor Relations

  22. Slide 22: Investments at a glance

    Investments at a glance Capex and depreciation Investment Overview in EUR m 72 75  Capex 2017 of € 75m, thereof maintenance € ~30m 65  Capex 2018 of € ~80m expected  Thereof about 60% for expansion: 33 37 30  45% for further Semperflex expansion Czech Rep.  35% for further mixing expansion1) ma

  23. Slide 23: Overview price indices rubber

    Overview price indices rubber Price movements for raw materials1) became highly unpredictable Price indices Synthetic rubber Price index Natural Latex rubber 300.0 300 275.0 275 250.0 250 225.0 225 200.0 200 ø 2017 175.0 ø 2017 175 150.0 150 125.0 125 ø 2016 100.0 ø 2016 100 75.0 75 SBR Europe SBR A

  24. Slide 24: Overview price indices carbon black / wire rod

    Overview price indices carbon black / wire rod Significant increase for raw materials1) used in industrial segments Price index carbon black Price index wire rod 325 200 300 275 175 250 ø 2017 225 150 200 175 125 ø 2017 150 ø 2016 125 100 ø 2016 100 75 75 Heavy fuel oil 1% Price index wire rod (Germ

  25. Slide 25: Hybrid Capital Line with B & C

    Hybrid Capital Line with B & C  Overview – Contract between Semperit AG Holding and B & C Holding GmbH (100% subsidiary of B & C Industrieholding GmbH) signed on 12th Dec. 2017 Total volume of up to EUR 150m – Can be drawn in up to three tranches until end of 2018 – Interest rate agreed amounts to

  26. Slide 26: Sectors and Group: Q1 2018 vs Q1 2017

    Sectors and Group: Q1 2018 vs Q1 2017 1) Industrial Sector Medical Sector Semperit Group in EUR m Q1 2018 Q1 2017 % Q1 2018 Q1 2017 % Q1 2018 Q1 2017 % Revenue 140.9 140.1 +0.5% 80.0 89.2 -10.3% 220.9 229.3 -3.7% EBITDA 18.8 17.2 +9.1% 1.4 78.1 -98.2% 15.8 94.4 -83.3% EBITDA margin 13.3% 12.3% +1.0

  27. Slide 27: Semperit Group per quarter as reported

    Semperit Group per quarter as reported Semperit Group (reported) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 in EUR m 20151) 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 Revenue 914.7 219.5 219.2 208.9 204.8 852.4 229.3 232.3 208.4 204.2 874.2 220.9 EBITDA 96.2 26.7 26.1 19.4 5.7 77.9 94.4 2.9 0.5

  28. Slide 28: Semperit Group adj. where applicable

    Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY FY 2016 FY 2017 Q1 2016 2016 2016 2016 2017 2017 2017 2017 20151) adj.2) adj. 2018 in EUR m adj.2) adj.2) adj.2) adj.2) adj.3) adj. 4) adj. 4) adj. 4) Revenue 914.7 219.5 219.2 208.9 204.8 852.4 229.

  29. Slide 29: EBITDA per quarter (adj. where applicable)

    EBITDA per quarter (adj. where applicable) Semperflex Sempertrans 13.7 0.6 0.5 11.7 10.5 10.5 8.7 -1.4 -2.1 Q1 Q2 Q3 Q4 Q1 -2.4 2017 2017 2017 2017 2018 Q1 Q2 Q3 Q4 Q1 2017 2017 2017 2017 2018 Semperform Sempermed 7.8 1.7 1.6 1.4 5.0 5.2 4.5 0.0 3.6 -1.5 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2017 2017 2017

  30. Slide 30: Semperflex and Sempertrans (adj. where applicable)

    Semperflex and Sempertrans (adj. where applicable) Semperflex Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q3 2017 Q4 2017 FY 2017 in EUR m FY 20151) Q1 2017 Q2 2017 Q1 2018 adj.2) adj.2) adj.2) adj.2) adj.2) adj. 3) adj. 3) adj. Revenue 203.4 47.8 48.8 43.4 44.9 184.9 53.5 53.2 46.8 52.5 206.1 58.8 EBIT

  31. Slide 31: Semperform and Sempermed (adj. where applicable)

    Semperform and Sempermed (adj. where applicable) Semperform FY Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q3 2017 Q4 2017 FY 2017 in EUR m Q1 2017 Q2 2017 Q1 2018 20151) adj.2) adj.2) adj.2) adj.2) adj.2) adj. 6) adj. 6) adj. Revenue 152.8 43.2 47.6 44.3 38.1 173.1 45.3 50.1 46.9 42.7 185.0 47.5 EBITDA

  32. Slide 32: Sectors and Group: FY 2017 vs FY 2016

    Sectors and Group: FY 2017 vs FY 2016 Industrial Sector Medical Sector Semperit Group1) in EUR m 2017 2016 % 2017 2016 % 2017 2016 % Revenue 537.0 506.4 +6.0% 337.1 346.0 -2.6% 874.2 852.4 +2.6% EBITDA 42.9 89.5 -52.0% 77.9 6.6 > 100% 100.2 77.9 +28.6% EBITDA margin 8.0% 17.7% -9.7 PP 23.1% 1.9% +21

  33. Slide 33: Key figures 2008 – 2017

    Key figures 2008 – 2017 Key performance figures Adj. Adj. in EUR m 2008 2009) 20101) 20111) 2012 2013 20143) 20153) 20164) 20175) Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 EBITDA margin 13.4% 17.5% 16.3% 13.4% 1

  34. Slide 34: Shareholder Structure

    Shareholder Structure  Semperit is listed on the Vienna Shareholder structure Stock Exchange since 1890  Total of 20,573,434 shares with a market capitalization of about EUR 400m (mid May 2018)  B & C Holding Österreich GmbH is part of < 41% B & C Privatstiftung, an Austrian based private foundat

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