Semperit Ag Holding · VIE:SEM
Semperit — Q1 2020 Earnings Presentation
35 slides from Semperit's earnings presentation, May 20, 2020
Slide 1: Semperit Group Q1 2020 Investor Presentation
SEMPERIT GROUP Q1 2020 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Petra Preining, CFO 20 May 2020 1
Slide 2: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.15) Leadership and Action Plan 2020 (p.23) Appendix (p.26) 2 Investor Presentation Q1 2020 I 20 May 2020 I Investor Relations
Slide 3: Key Highlights Q1'20: Best first quarter result since 2016
Key Highlights Q1'20: Best first quarter result since 2016 Revenue down by 6.5% to € 199.1m Restructuring process paying off – mainly due to ongoing economic slowdown Significant improvement both at EBITDA € and EBIT level € – but against higher Sempermed production volumes – Increase of profi
Slide 4: Executive Summary - Corona Virus Impact
Executive Summary - Corona Virus Impact Health & Safety is KEY, physical contact reduced to a minimum People No Semperit employees fell critically ill with corona virus (CoViD-19) No bottlenecks with essential raw materials Procurement Alternative suppliers identified but longer delivery tim
Slide 5: Weathering the Corona Storm
Weathering the Corona Storm Prior improvement in operational efficiency, lean production, product quality and technological Restructuring innovation helped to get prepared for downturn well in advance New platform for supply chain, sourcing of raw materials and sales network implied higher flexi
Slide 6: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.15) Leadership and Action Plan 2020 (p.23) Appendix (p.26) 6 Investor Presentation Q1 2020 I 20 May 2020 I Investor Relations
Slide 7: Group operating profit up despite topline and market pressure
Group operating profit up despite topline and market pressure - only limited impact on Industrial Sector from corona crisis so far Additional upside due to exceptional performance at Medical Sector Despite economic headwind consistent yoy EBITDA improvement for 9th consecutive quarter -6.5% 212.9 +2
Slide 8: Revenue development
Revenue development in € m -6.5% 212.9 6.0 199.1 -14.3 -0.9 -2.1 -2.5 Industrial Medical Sector Sector -14.0% +8.4% -23.4% -2.9% -7.7% -11.3% Q1’19 Semperflex Sempertrans Semperseal Semperform Sempermed Q1’20 Revenue 46.8m 29.5m 25.4m 19.9m 77.5m Q1’20 1) Semperform has been split into Semperseal an
Slide 9: Industrial Sector EBITDA Q1 2020
Industrial Sector EBITDA Q1 2020 Against strong Q1'19 comparison, Q1'20 still respectable against significant economic downturn -27.9% 28.2 24.5 23.0 22.0 19.0 Industrial 18.8 17.9 17.3 17.7 15.3 16.1 Sector 14.5 15.6 12.6 13.3 11.6 12.8 10.6 1) Q1 Q2 Q3 Q4 EBITDA ’18 in € m EBITDA ’18 margin EBITDA
Slide 10: Semperflex Q1 2020
Semperflex Q1 2020 -32.9% EBITDA yoy, € -4.6m 22.8% 24.4% 20.1% 19.9% EBITDA in € m 18.1% EBITDA margin Semperflex 13.9 14.5 10.8 9.3 8.7 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 vs. Q1 2019 Revenue down due to reduced market demand as Revenue expected, aggravated by corona impact in Feb 47 (China) a
Slide 11: Sempertrans Q1 2020
Sempertrans Q1 2020 -41.5% EBITDA yoy, € -1.1m 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 5.4 5.4% 1.3 4.6 2.5% 1.4 1.6 0.8 1) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 vs. Q1 2019 Positive non-operational effect of €1.3m in Q1'19 Revenue distorts comparison with Q1'20 result1) 30 curren
Slide 12: Semperseal Q1 2020
Semperseal Q1 2020 -16.1% EBITDA yoy, € -0.6m 14.1% 13.2% 12.8% EBITDA in € m 9.8% EBITDA margin Semperseal 3.9 3.4 3.3 2.5 3.0% 0.6 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 vs. Q1 2019 Split of former Semperform into Semperseal Revenue (focuses on profiles and sheeting) and Semperform 25 current per
Slide 13: Semperform Q1 2020
Semperform Q1 2020 -12.6% EBITDA yoy, € -0.5m 19.6% 18.4% 17.7% 17.5% EBITDA in € m 12.2% EBITDA margin Semperform 4.8 4.0 4.1 3.5 2.7 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q1 2020 vs. Q1 2019 Revenue down yoy (-11.3%) due to reduced Revenue economic activity starting in late 2019 (mainly 20 current perio
Slide 14: Medical Sector / Sempermed segment Q1 2020
Medical Sector / Sempermed segment Q1 2020 >100% EBITDA yoy, € +5.7m 6.1 EBITDA in € m EBITDA margin Sempermed 2.3 Medical 0.8 4.8 1.8 -0.1 Sector 0.6 -0.1 -0.9 -1.2 Q1’19 Q2’19 Q3’19 1) Q4’19 Q1’20 Q1 2020 vs. Q1 2019 Markedly improved Q1’20 performance after Revenue successful restructuring and
Slide 15: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.15) Leadership and Action Plan 2020 (p.23) Appendix (p.27) 15 Investor Presentation Q1 2020 I 20 May 2020 I Investor Relations
Slide 16: Q1 2020: Solid financial position to cope with the crisis
Q1 2020: Solid financial position to cope with the crisis Pandemic reinforced and accelerated transformation effort Best Q1 results since 2016 Active working capital management Improved free cash flow generation Liquidity well secured – strong balance sheet Net debt further reduced – low
Slide 17: Financials and Profitability Overview
Financials and Profitability Overview Change in in € m Q1 2020 Q1 2019 Change EUR m Revenue 199.1 212.9 -6.5% -13.8 EBITDA 16.9 16.5 +2.3% +0.4 EBITDA margin 8.5% 7.7% +0.8 PP – EBIT 9.8 7.8 +24.9% +2.0 EBIT margin 4.9% 3.7% +1.2 PP – Earnings after tax -1.7 3.2 – -5.0 Earnings per share (EPS)1), in
Slide 18: EBITDA development
EBITDA development Consistent yoy EBITDA improvement for 9th consecutive quarter – despite headwind in € m +2.3% 16.5 16.9 +1.6 -4.6 +5.6 -1.1 -0.6 -0.5 Q1’19 Semperflex Sempertrans Semperseal Semperform Sempermed Corporate Q1’20 Operating EBITDA 16.5m 13.9m 2.7m 3.9m 4.0m -0.9m -7.2m Q1’19) Operati
Slide 19: CAPEX by quarter
CAPEX by quarter Q1’20 CAPEX under strong control and below Q1’19 (-58%) – main focus on maintenance FY 2020 CAPEX to remain below € 40m CAPEX per segment in € m 16.2 Semperflex 5.2 Sempertrans Semperseal Semperform 1.9 Sempermed 1.6 6.8 6.8 Corporate 1.0 5.2 1.3 1.4 3.7 1.4 1.0 1.9 0.0 6.5 0.1
Slide 20: Working Capital Overview
Working Capital Overview Components of Working Capital in € m 21.0%1) 20.5%1) 19.0%1) 18.5%1) 18.0%1) 184.8 177.9 163.4 155.2 148.5 150.6 147.1 136.0 122.2 124.2 Inventories 112.6 114.1 109.8 94.6 102.9 Trade receivables -78.4 -82.5 -61.5 -78.5 Trade payables -83.3 31 March 2019 30 June 2019 30 Sept
Slide 21: Free cash flow development
Free cash flow development Improved results, active WC management and strict CAPEX control support cashflow development Q1’20 FCF increased yoy by 25% Development of cash flow components1) in € m 34.6 31.0 30.0 23.3 17.8 18.6 -7.2 -6.7 -13.2 -15.9 -24.2 -31.4 2) Q1’17 Q1’18 Q1’19 Q1’20 Operating
Slide 22: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 31 March 2020 Balance sheet 31/3/2020: € 706m Balance sheet 31/12/2019: € 702m Cash and cash equivalents of € 152m Financial liabilities: Corporate Schuldschein loan partially Fixed 304 266 275 Equity
Slide 23: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.15) Leadership and Action Plan 2020 (p.23) Appendix (p.26) 23 Investor Presentation Q1 2020 I 20 May 2020 I Investor Relations
Slide 24: Leadership and action plan 2020
Leadership and action plan 2020 Crisis management and specific actions against corona impact Transformation process not only continued but accelerated through the crisis • Customised approach defined for specific Semperit markets • Reset cost structure to be in a position to cope with potentially lo
Slide 25: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2020 Judit Helenyi, Director Investor Relations 20.05.2020 Report on Q1 2020 22.07.2020 Annual general meeting, Vienna +43 1 79777 - 310 www.semperitgroup.com/en/ir 28.07.2020 Dividend payment day1) Modecenterstrasse 22 14
Slide 26: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.15) Leadership and Action Plan 2020 (p.23) Appendix (p.26) 26 Investor Presentation Q1 2020 I 20 May 2020 I Investor Relations
Slide 27: Sectors and Group: Q1 2020 vs Q1 2019
Sectors and Group: Q1 2020 vs Q1 2019 1) Industrial Sector Medical Sector Semperit Group in EUR m Q1 2020 Q1 2019 % Q1 2020 Q1 2019 % Q1 2020 Q1 2019 % Revenue 121.6 141.4 -14.0% 77.5 71.5 8.4% 199.1 212.9 -6.5% EBITDA 17.7 24.5 -27.9% 4.8 -0.9 – 16.9 16.5 +2.3% EBITDA margin 14.5% 17.3% -2.8 PP 6.1
Slide 28: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 FY Q2 Q3 Q4 Q1 Q3 Q4 FY Q1 Q2 FY Q1 2017 2017 2017 2017 2017 2018 2019 2019 1) 1) 1) 1) 1) 2018 2) 2018 2018 2018 2019 2019 3) 4) 2019 2020 in EUR m adj. adj. adj. adj. adj. adj. adj. adj. Revenue 229.3 232.3 208.4
Slide 29: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q3 Q1 Q2 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2017 2017 2017 2017 2017 2018 1) 1) 1) 1) 1) 2018 2018 2) 2018 2018 2019 2019 2019 2019 2019 2020 in EUR m adj. adj. adj. adj. adj. adj. Revenue 53.5 53.2 46.8 52.5 206.1 58.8 62.8 5
Slide 30: Semperform and Sempermed (adj. where applicable)
Semperform and Sempermed (adj. where applicable) Semperform (Window and door profiles, Handrails) Q3 FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2017 2017 2017 2017 1) 2017 1) 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 in EUR m adj. adj. Revenue 45.3 50.1 46.9 42.7 185.0 47.5 50.7 50.3
Slide 31: Key figures 2009-2019
Key figures 2009-2019 Key performance figures 1) 1) 3) 3) 2016 2017 2018 2019 in EUR m 2009 2010 2011 2012 2013 2014 2015 4) 5) 6) 7) adj. adj. adj. adj. Revenue 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 EBITDA 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 EBIT
Slide 32: Overview price indices Butadiene
Overview price indices Butadiene Price movements for raw materials1) became highly unpredictable Price indices Butadiene as main raw material for synthetic rubber / latex ø 2019 ø YTD 2020 120 70 20 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration purposes only.
Slide 33: Overview price indices LFO-F-NWE / wire rod
Overview price indices LFO-F-NWE / wire rod Significant increase for raw material1) used in industrial segments Price index LFO-F-NWE Price index wire rod 125 115,00 ø 2019 ø YTD ø 2019 ø YTD 2020 2020 100 75 50 90,00 Fuel Oil 1% Sulphur NWE FOB Cargo Price index wire rod (Germany) 1) Selected raw m
Slide 34: Product / market position / segment overview, FY 2019
Product / market position / segment overview, FY 2019 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform4) Sempermed Revenue € 841m € 223m / 26%1) € 134m / 16%1) € 191m / 23%1) € 293m / 35%1) EBITDA adj. € 64m2) € 48m € 14m € 26m € 1m Employees 6,9022) 1,672 / 27
Slide 35: Shareholder Structure
Shareholder Structure Shareholder structure Semperit is listed on the Vienna Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54% Primary focus of B & C is pursuing the fou