Semperit Ag Holding · VIE:SEM

Semperit — H1 2018 Earnings Presentation

40 slides from Semperit's earnings presentation, Aug 23, 2018

  1. Slide 1: Semperit Group H1 2018/Q2 2018 Investor Presentation

    SEMPERIT GROUP H1 2018/Q2 2018 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Frank Gumbinger, CFO 23 August 2018

  2. Slide 2: Agenda

    Agenda Business and transformation update (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 25) Appendix (p. 28) 2 Investor Presentation H1 2018 I 23 August 2018 I Investor Relations

  3. Slide 3: Business and transformation update (1/3)

    Business and transformation update (1/3)  Intensified restructuring efforts  Reduction of complexity, including closure of production sites:  Sempertrans production site in France closed in 2017  Sempertrans production site in China to be closed in 2018 Semperit Group  Two Semperform production

  4. Slide 4: Business and transformation update (2/3)

    Business and transformation update (2/3)  Customers place orders more EBITDA margin adj. 23.0 cautiously (due to potential EBITDA adj., in EURm Semperflex customs changes)  Italian production site in Rovigo 18.8 under review (currently 5 pro- duction sites in Semperflex) 15.9 12.5 12.0 15.3% Indus

  5. Slide 5: Business and transformation update (3/3)

    Business and transformation update (3/3)  Raw materials shortage resulted EBITDA margin adj. in lower production capacity and EBITDA adj., in EURm production inefficiencies in Malaysia  Impairment of € 55m, mainly for fixed assets, driven by: 1.9% 2.0% 1.8%  Declining business development caused

  6. Slide 6: Agenda

    Agenda Business and transformation update (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 25) Appendix (p. 28) 6 Investor Presentation H1 2018 I 23 August 2018 I Investor Relations

  7. Slide 7: H1 2018: Strong operating development

    H1 2018: Strong operating development Revenue € 97m EBITDA1) Raw material € 462m –2.8% € 449m +45%  Sideward trend for € 29m € 33m rubber prices € 23m  Prices for carbon black, EBITDA EBITDA EBITDA EBITDA Revenue Revenue H1 2017 H1 2018 adj. adj. wires and some other H1 2017 H1 2018 H1 2017 H1 201

  8. Slide 8: Overview Semperflex and Sempertrans

    Overview Semperflex and Sempertrans H1 2018 vs. H1 2017 Revenue 122 current period Semperflex  Growth dynamics is slightly slowing down Revenue 107  Additional capacities from competitors will previous period come on stream EBITDA 29 current period  Hydraulic hoses: solid increase of volume as EB

  9. Slide 9: Overview Semperform and Sempermed

    Overview Semperform and Sempermed H1 2018 vs. H1 2017 Revenue 98 Semperform current period  Stable volume development Revenue 95  Increasing costs for raw materials still a previous period burden for profitability EBITDA current period 12  Business performance Q2’18 improved EBITDA compared to Q1

  10. Slide 10: Agenda

    Agenda Business and transformation update (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 25) Appendix (p. 28) 10 Investor Presentation H1 2018 I 23 August 2018 I Investor Relations

  11. Slide 11: H1 2018 Financials / Profitability Overview

    H1 2018 Financials / Profitability Overview Change in in EUR m H1 2018 H1 2017 Change EUR m Revenue 448.5 461.6 -2.8% -13.1 EBITDA adjusted 1) 32.7 22.5 +45.3% 10.2 EBITDA margin adjusted 7.3% 4.9% +2.4 PP – EBITDA 28.9 97.3 -70.3% -68.4 EBITDA margin 6.4% 21.1% -14.7 PP – EBIT adjusted 1) 13.2 6.2

  12. Slide 12: Revenue development H1 2018

    Revenue development H1 2018 in EUR m -2.8% Revenue development +14.8 -6.5 -24.3 461.6 +2.8 448.5  Semperflex: mainly higher volume translates into higher revenue  Sempertrans: Revenue decrease driven by lower volume and product mix, also impacted by closure of site in France and Industrial Sector

  13. Slide 13: From reported to operating EBITDA / EBIT H1 2018

    From reported to operating EBITDA / EBIT H1 2018 in EUR m 32.8 28.9 +3.9 13.2 +7.9 +55.2 Reported Expense for Adj. -49.8 EBITDA closure of EBITDA Reported Impairment Expense for Adj. EBIT H1 2018 Sempertans H1 2018 EBIT Sempermed closure of H1 2018 site in China H1 2018 Sempertans site in China 13 I

  14. Slide 14: Operating EBITDA development H1 2018

    Operating EBITDA development H1 2018 in EUR m +45.3% 32.7 +3.1 -0.9 -1.6 +3.2 +6.4 22.5 Increased volume, increased profitability H1 2017 Semperflex Sempertrans Semperform Sempermed Corporate H1 2018 Operating EBITDA H1 20171) 22.5m 22.2m -1.8m 12.7m 1.7m -12.3m Operating EBITDA 28.7m 1.3m 11.8m 0.1

  15. Slide 15: Q2 2018 Financials / Profitability Overview

    Q2 2018 Financials / Profitability Overview Change in in EUR m Q2 2018 Q2 2017 Change EUR m Revenue 227.6 232.3 -2.0% -4.7 EBITDA adjusted 1) 17.0 12.9 +31.4% 4.1 EBITDA margin adjusted 7.5% 5.6% +1.9 PP – EBITDA 13.1 2.9 >100% 10.2 EBITDA margin 5.8% 1.2% +4.6 PP – EBIT adjusted 1) 7.2 4.6 +55.1% 2

  16. Slide 16: Revenue development Q2 2018

    Revenue development Q2 2018 in EUR m -2.0% Revenue development +9.6 +0.2 +0.7 -15.1 232.3 227.6  Semperflex: mainly higher volume translates into higher revenue  Sempertrans: Revenue decrease driven by lower volume and product mix, also impacted by closure of site in France and Industrial Sector M

  17. Slide 17: From reported to operating EBITDA / EBIT Q2 2018

    From reported to operating EBITDA / EBIT Q2 2018 in EUR m 17.0 13.1 +3.9 7.2 +7.9 +55.2 Reported Expense for Adj. EBITDA closure of EBITDA -55.8 Q2 2018 Sempertans Q2 2018 Reported Impairment Expense for Adj. EBIT site in China EBIT Sempermed closure of Q2 2018 Q2 2018 Sempertans site in China 17 In

  18. Slide 18: Operating EBITDA development Q2 2018

    Operating EBITDA development Q2 2018 in EUR m +31.4% -0.5 +3.1 -3.1 17.0 +0.1 +4.4 12.9 Increased volume, increased profitability Q2 2017 Semperflex Sempertrans Semperform Sempermed Corporate Q2 2018 Operating EBITDA Q2 20171) 12.9m 10.5m -2.4m 7.8m 1.7m -4.7m Operating EBITDA 14.9m 0.8m 7.3m -1.3m

  19. Slide 19: Operating EBITDA and EBITDA margin by quarter

    Operating EBITDA and EBITDA margin by quarter1) EBITDA margin EBITDA development EBITDA, in EURm  EBITDA in Q2 2018 again higher than in 17.0 Q1 2018 15.8  EBITDA margin of 7.5% well below target 12.9 of ~10% by end of 2020 10.4  All segments positive on EBITDA level (adj. where applicable) 7.1%

  20. Slide 20: Profitability overview

    Profitability overview 23.4% 23.8% 19.8% 18.6% 19.9% Semperflex 13.7 14.9 10.5 8.7 10.5 23.0 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 18.8 15.9 15.3% 15.5% 14.4% 12.5 13.3% 11.0% Industrial 12.0 Semperform 8.5% 9.6% 11.4% 7.8 7.3 Sector 9.6% 5.2 3.6 4.5 9.4% Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 1.

  21. Slide 21: CAPEX Overview

    CAPEX Overview CAPEX per Segment in EUR m 24.5 19.9 7.9 18.8 17.6 14.1 8.5 11.8 7.4 9.2 Semperflex 5.2 1.5 Sempertrans 1.4 1.5 1.6 2.7 2.5 1.5 4.2 Semperform 7.1 Sempermed 4.6 5.1 6.4 2.1 1.6 Other 0.3 0.0 0.2 0.1 0.4 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 21 Investor Presentation H1 2018 I 23 Augu

  22. Slide 22: Working Capital Overview

    Working Capital Overview Components of Working Capital in EUR m 20.1%1) 19.3%1) 17.1%1)) 20.9%1) 22.2%1) 180.9 191.0 175.8 168.7 152.4 141.5 161.6 165.6 Inventories 147.1 159.7 132.3 117.8 125.8 131.8 Trade receivables 103.6 -98.0 -96.2 -110.9 -106.5 -106.4 Trade payables 30 June 2017 30 Sept 2017 3

  23. Slide 23: Net debt significantly reduced

    Net debt significantly reduced Balance sheet structure 30 June 2018 Financial profile as of 30 June 2018 Balance sheet total: EUR 872 m  Cash and cash equivalents of € 201m  Financial liabilities:  Corporate Schuldschein loan of € 272m Fixed assets 350 345 Equity (incl. hybrid capital)  Liabilit

  24. Slide 24: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 25) Appendix (p. 28) 24 Investor Presentation H1 2018 I 23 August 2018 I Investor Relations

  25. Slide 25: 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

  26. Slide 26: Contact and financial calendar

    Contact and financial calendar Investor Relations Semperit Group Financial Calendar 2018 Stefan Marin, Head of Investor Relations 23.08.2018 Half-year financial report 2018 +43 1 79777 - 210 21.11.2018 Report on the first three quarters 2018 www.semperitgroup.com/en/ir Modecenterstrasse 22 1031 Vien

  27. Slide 27: Agenda

    Agenda State of restructuring (p. 3) Operational highlights (p. 7) Financial performance (p. 11) Management agenda (p. 25) Appendix (p. 28) 27 Investor Presentation H1 2018 I 23 August 2018 I Investor Relations

  28. Slide 28: Impairment Sempermed in Q2 2018

    Impairment Sempermed in Q2 2018 Overview impairment Effects of impairment  Impairment of € 55m, mainly for fixed  € 55.2m impairment recognised in profit assets, driven by: and loss statement  Declining business development caused  Almost all of the total impairment is an by growing competition

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: 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 350 200 325 300 175 275 ø 2017 250 150 225 200 125 175 ø 2017 150 ø 2016 100 ø 2016 125 100 75 75 Heavy fuel oil 1% Price index wire rod (

  32. Slide 32: 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

  33. Slide 33: Sectors and Group: Q2 2018 as reported

    Sectors and Group: Q2 2018 as reported 1) Industrial Sector Medical Sector Semperit Group in EUR m Q2 2018 Q2 2017 % Q2 2018 Q2 2017 % Q2 2018 Q2 2017 % Revenue 150.5 140.1 +7.4% 77.1 92.2 ‐16.4% 227.6 232.3 ‐2.0% EBITDA 19.1 9.2 >100% -1.3 1.7 – 13.1 2.9 >100% EBITDA margin 12.7% 6.6% +6.1 PP -1.7%

  34. Slide 34: 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 Q2 in EUR m 1) 2015 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 2018 Revenue 914.7 219.5 219.2 208.9 204.8 852.4 229.3 232.3 208.4 204.2 874.2 220.9 227.6 EBITDA 96.2 26.7 26.1 19.4 5.7 77

  35. Slide 35: Semperit Group adj. where applicable

    Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q2 FY Q1 1) 2016 2016 2016 2016 2016 2017 2017 2017 2017 2017 2018 2015 2) 2) 2) 2) 2) 3) 3) 3) 3) 3) 2018 4) in EUR m adj. adj. adj. adj. adj. adj. adj. adj. adj. adj. adj. Revenue 914.7 219.5 21

  36. Slide 36: Semperflex and Sempertrans (adj. where applicable)

    Semperflex and Sempertrans (adj. where applicable) Semperflex Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 1) 2) 2) 2) 2) 2) 2017 2017 2015 2016 2016 2016 2016 2016 2017 2017 3) 2017 3) 2018 2018 in EUR m adj. 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 62.8 EBITDA 46.1 11.

  37. Slide 37: Semperform and Sempermed (adj. where applicable)

    Semperform and Sempermed (adj. where applicable) Semperform Q3 FY FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 Q1 Q2 1) 2) 2) 2) 2) 2) 2017 2017 2015 2016 2016 2016 2016 2016 2017 2017 5) 2017 5) 2018 2018 in EUR m adj. 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 50.7 EBITDA 24.3 7.4 9

  38. Slide 38: Sectors and Group: H1 2018 vs H1 2017

    Sectors and Group: H1 2018 vs H1 2017 1) Industrial Sector Medical Sector Semperit Group in EUR m H1 2018 H1 2017 % H1 2018 H1 2017 % H1 2018 H1 2017 % Revenue 291.4 280.3 +4.0% 157.1 181.4 -13.4% 448.5 461.6 -2.8% EBITDA 37.9 26.4 +43.7% 0.1 79.8 -99.9% 28.9 97.3 -70.3% EBITDA margin 13.0% 9.4% +3.

  39. Slide 39: 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 in EUR million 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 EBITDA in EUR million 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 EBITDA marg

  40. Slide 40: Shareholder Structure

    Shareholder Structure  Semperit is listed on the Vienna Shareholder structure Stock Exchange since 1890  Total of 20,573,434 shares  B & C Holding Österreich GmbH is part of B & C Privatstiftung, an Austrian based private foundation / trust < 41%  Primary focus of B & C is pursuing the > 54% fou

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