Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Day (November 2018)
15 slides from Mersen Sa's investor day presentation, Nov 29, 2018
Slide 1: Mersen: Our Mission… Technological Progress
MERSEN: OUR MISSION… TECHNOLOGICAL PROGRESS CAPITAL MARKETS DAY – NOVEMBER 29, 2018 THOMAS BAUMGARTNER, CFO
Slide 2: A series of measures to improve the Group's competitiveness
A SERIES OF MEASURES TO IMPROVE THE GROUP’S COMPETITIVENESS ADAPTATION MEASURES TRANSFORM PLAN REORGANIZATION LAUNCH LAUNCH Simplification of the Group’s industrial of the 2 business segments to of the Operational of Mersen Excellence organization and processes and strengthen synergies, Excellence p
Slide 3: Conclusive results
CONCLUSIVE RESULTS OPERATING MARGIN SALES ROCE* BEFORE NON-RECURRING ITEMS ~+20% ~+200 pts ~+400 pts Sales Operating income Capital employed in €m before non-recurring items in €m in €m ~11.5% ~10.4% 8.1% 7.4% > 850 739 60 805 2013 2018 est. 2013 2018 est 2013 2018 est * Operating income before non-
Slide 4: Reflected in Mersen's guidance for 2018
THAT ARE REFLECTED IN MERSEN’S GUIDANCE FOR 2018 Announced Adjusted Press release in March 2018 in July 2018 in October 2018 ORGANIC GROWTH* IN SALES VERSUS 2017 BETWEEN Between 3% and 6% AROUND 9% 7% AND 9% 2018 +2% linked to acquisitions At constant exchange rates Between 9.6% and BETWEEN 10.1% 10
Slide 5: Diversified customer portfolio and markets
MERSEN’S STRENGTHS FOR THE FUTURE: DIVERSIFIED CUSTOMER PORTFOLIO AND MARKETS PROCESS INDUSTRIES ENERGY 21% 34% ELECTRONICS Breakdown of H1 2018 sales 19% 9% CHEMICALS 17% TRANSPORTATION 100 CMD Mersen – November 2018
Slide 6: Leadership positions that are a source of profitability
LEADERSHIP POSITIONS THAT ARE A SOURCE OF PROFITABILITY MERSEN’S STRENGTHS Leadership position: > 65% Expertise: #1 or #2 worldwide of products are high barriers in niche markets built for purpose to entry GROSS MARGIN PRICE EFFECT 34% 2011-2016 2017 2018 32% -0.6% on average/year Stable +1.6%* * 9
Slide 7: A balanced geographic footprint for more opportunities and greater diversification
A BALANCED GEOGRAPHIC FOOTPRINT FOR MORE OPPORTUNITIES AND GREATER DIVERSIFICATION REST OF THE WORLD 33% NORTH AMERICA 36% 29% ASIA-PACIFIC 21% 38% 34% EUROPE 2013 2018 est Based on geographical breakdown at September 30, 2018 102 CMD Mersen – November 2018
Slide 8: Markets with major growth potential in the medium term
MARKETS WITH MAJOR GROWTH POTENTIAL IN THE MEDIUM TERM 1000 900 RENEWABLE ENERGIES 800 ENERGY STORAGE SEMICONDUCTORS 700 POWER CONVERSION 600 CAGR > 6% RAIL ELECTRIC VEHICLES 500 WATER TREATMENT ENERGY EFFICIENT PROCESSES 400 300 AERONAUTICS 200 CAGR ~1%* CONVENTIONAL ENERGY CHEMICALS 100 OTHER PROC
Slide 9: Strategic investment in 2018 to drive future growth
UNDERPINNED BY STRATEGIC INVESTMENT IN 2018 TO DRIVE FUTURE GROWTH ENVIRONMENT CAPEX GROWTH CAPEX €5m €25m MAINTENANCE CAPEX SOLAR €20m-€25m ELECTRONICS (semiconductors and power electronics) EV OTHER ACQUISITIONS €35m 104 CMD Mersen – November 2018
Slide 10: A Group that remains focused on cash generation
A GROUP THAT REMAINS FOCUSED ON CASH GENERATION FCF in €m 60 MERSEN GROWTH DRIVERS 50 Operational excellence plan (lean inventory management, optimization) 40 Cash incentives for 30 managers 20 AVERAGE FCF/SALES OVER FIVE YEARS ~5% 10 0 2013 2014 2015 2016 2017 2018 est FCF: Free cash flow before re
Slide 11: A robust financial structure and significant investment and acquisitions in 2018
A ROBUST FINANCIAL STRUCTURE AND SIGNIFICANT INVESTMENT AND ACQUISITIONS IN 2018 Net debt in €m Leverage 250 3 2,5 200 2 150 1,5 100 1 50 0,5 0 0 2013 2014 2015 2016 2017 2018 est. MATERIAL IMPACTS IN 2018 (estimated) Acquisitions: €35m Capex: €55m Competitiveness plan: €15m 106 CMD Mersen – N
Slide 12: A solid balance sheet with diversified financing
A SOLID BALANCE SHEET WITH DIVERSIFIED FINANCING SOURCES OF FINANCING UNDRAWN CONFIRMED MATURITY PROFILE OF 4.7 YEARS* (including commercial paper) CREDIT LINES €218m €148m €m CHINA CREDIT LINE 7% OTHER 200 1% COMMERCIAL (taking into account the PAPER 160 28% back-up line available in the USPP comme
Slide 13: Mersen: Our Mission… Technological Progress
MERSEN: OUR MISSION… TECHNOLOGICAL PROGRESS CAPITAL MARKETS DAY – NOVEMBER 29, 2018 Changer la photo
Slide 14: Conclusion
CONCLUSION Mersen is committed to sustainable development Inside Mersen, a continuous improvement process Mersen Inside, growth markets Mersen has increased its competitiveness and consolidated its growth drivers Expanding markets A customer, global and competitive positioning that delivers high mar
Slide 15: Questions?
QUESTIONS ? 110 CMD Mersen – November 2018