Slide 1: Semperit Group 1-6 2023 Investor Presentation
SEMPERIT GROUP 1-6 2023 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 10 August 2023 1
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.13) Outlook (p.23) Appendix (p.27) 2 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 3: Strategic and operational highlights 1-6 2023
Strategic and operational highlights 1-6 2023 Industrial sector – top-line and earnings decline due to lower volumes on the back of falling demand, customer caution and cool-down Medical sector – first part of Sempermed sale on track after FDI & merger clearance obtained, closing expected for August
Slide 4: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.13) Outlook (p.23) Appendix (p.27) 4 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 5: Industrial Sector: lower volumes result in top line and profits below prior year
Industrial Sector: lower volumes result in top line and profits coming in below strong prior-year comparison Revenues in EURm Quarterly development of EBITDA (EURm) and EBITDA margin (%) 1-6’21 – 1-6’23 -4.5% 41.4 20.7 372.3 18.7 355.7 17.4 17.3 14.2 33.6 15.9 16.4 32.4 15.0 15.5 30.6 268.1 12.1 26.
Slide 6: Detail on Last Twelve Month (LTM) view of the Industrial Sector
Detail on Last Twelve Month (LTM) view of the Industrial Sector LTM development of Revenue (EURm) and EBITDA margin (%) 734.0 739.5 717.4 705.0 660.3 596.9 556.1 527.4 518.9 507.0 490.1 487.0 497.3 18.2 478.4 17.5 16.7 17.1 16.0 16.3 16.5 15.7 15.9 15.3 14.7 14.6 14.8 14.7 Q1’20 Q2’20 Q3’20 Q4’20 Q1
Slide 7: Semperflex 1-6 2023
Semperflex 1-6 2023 Lower top line against strong comparables 29.0% 27.3% EBITDA in EUR m 23.3% 24.5% 24.2% 22.5% 23.0% EBITDA margin 19.3% 20.4% 18.1% Semperflex 27.3 19.6 21.5 16.7 15.9 12.3 13.9 11.2 13.9 13.9 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 1-6 2023 vs. 1-6 2022 Top
Slide 8: Semperseal 1-6 2023
Semperseal 1-6 2023 Results reflect constructions industry’s weak demand 14.7% 12.6% 10.0% 8.3% EBITDA in EUR m Semperseal 7.9% 7.9% EBITDA margin 4.2 6.5% 4.1 3.8 5.0% 3.2 2.4 3.0% 2.4 2.6 1.6 0.9 -1.2 -4.1% Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 1-6 2023 vs. 1-6 2022 Persist
Slide 9: Sempertrans 1-6 2023
Sempertrans 1-6 2023 Results reflect positive project development 22.7% EBITDA in EUR m 17.0% 18.5% EBITDA margin 16.7% 12.8% Sempertrans 4.7 9.2% 9.4 7.3 3.8% 3.3% 3.7 4.5% 5.3 4.9 1.4% 3.7 1.0 0.8 1.0 0.4 1.3 1 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 1-6 2023 vs. 1-6 2022 Ong
Slide 10: Semperform 1-6 2023
Semperform 1-6 2023 Improved results due to changed product mix and price increases 18.3% 18.5% 17.2% EBITDA in EUR m 15.4% 15.2% 13.9% 14.1% EBITDA margin 12.2% Semperform 10.3% 9.9% 5.8 5.0 5.0 3.6 4.1 3.1 3.3 3.2 2.8 2.5 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 1-6 2023 vs. 1-6
Slide 11: Medical Sector / Sempermed segment 1-6 2023
Medical Sector / Sempermed segment 1-6 2023 Excess capacity, reduced demand and further inventory clean-up impact volumes 54.6% 57.7% 45.9% EBITDA in EUR m Sempermed EBITDA margin 21.7% 115.3 12.6% 105.3 2.5% 56.9 23.7 13.3 -19.6 -11.4 -11.6 -8.7 2.2 -21.5% -20.7% -26.9% -29.3% 1 Q1’21 Q2’21 Q3’21 Q
Slide 12: New organizational line-up reflecting two distinctive business models
Efficient and powerful new organizational line-up reflecting two distinctive business models Clear industrial focus on two divisions concentrating on: • highly efficient manufacturing and cost leadership (Industrial Applications) • customized technical solutions (Engineered Applications) Division Se
Slide 13: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.13) Outlook (p.23) Appendix (p.27) 13 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 14: Financial highlights 1-6 2023
Financial highlights 1-6 2023 New financing of EUR 360m set up for growth projects Lean management, simplification of processes on the way, ongoing focus on fixed cost reduction and operating leverage Working capital management remains high priority with focus on generating higher free cash flow Mor
Slide 15: Overview of financial KPIs, 1-6 2022 vs. 1-6 2023
Overview of financial KPIs, 1-6 2022 vs. 1-6 2023 (as reported) 1-6 2022 1-6 2023 Δ 1-6‘22/‘23 Revenues, in EUR m 394.8 374.2 -5.2% EBITDA, in EUR m 53.9 43.7 -18.9% EBITDA margin, in % 13.7 11.7 -2.0PP EBIT, in EUR m 38.8 28.4 -26.8% EBIT margin, in % 9.8 7.6 -2.2PP Earnings after tax, in
Slide 16: Revenue: Segment reporting & reconciliation for continued business
Revenue: Segment reporting & reconciliation for continued business -23% 570.6 23.8 6.0 -35.5 -10.9 18.5 455.9 -81.6 437.4 -116.7 374.2 -4.5% -58.8% -20.5% -14.5% +34.1% +11.2% Industrial Sector Medical Sector 1 1-6’22 Semperflex Semperseal Sempertrans Semperform Sempermed 1-6’23 Adjustments Continue
Slide 17: Solid performance in Industrial against steep decline in Medical
Solid performance in Industrial against steep decline in Medical in EUR m -63% 75.2 10.1 2.4 -14.2 -2.2 15.5 43.7 -35.9 27.9 0.3 28.2 -7.5 1-6’22 Semperflex Semperseal Sempertrans Semperform Sempermed Corporate 1-6’23 Adjustments Continued Discontinued Continued = Segments’ on Group and operations o
Slide 18: Major drivers of operating performance
Major drivers of operating performance in EUR million -19% 45.4 53.9 3.2 30.8 0.9 -4.8 43.7 -4.1 -2.4 -66.0 -13.1 EBITDA Price Effect Volume Change in Cost of Energy Logistics Personnel Acquisition Misc. EBITDA Sales Effect Sales inventories materials and (used for exp. cost Rico & 1-6’22 purchased
Slide 19: Quarterly CAPEX development 2021-2023
Quarterly CAPEX development 2021-2023 • 1-6 2023 CAPEX below prior year level as 2022 included commissioning of the P7+ plant in Kamunting (EUR 11m) • FY2023 CAPEX Outlook: ~EUR 75m due to cost reductions and slight postponements of DH5 into 2024 – optimized timing, expected ramp up as scheduled • f
Slide 20: Free cash flow development
Free cash flow development Operating cash flow stable despite weaker results due to inventory reductions Total Investment cash flow lower than in previous year (2022 included EUR 11m for P7+ in Kamunting) Free Cash Flow positive at EUR 2m 1-6 2022 1-6 2023 in EUR m 240 23 23 -20 -28 2 Operatin
Slide 21: Working Capital overview
Working Capital overview Components of Working Capital in EUR m 21.0% 22.0% 19.6%1 20.3%1 20.5%1 232.8 237.4 207.3 198.9 153.1 158.8 155.6 128.2 125.2 114.7 Inventories 144.1 134.5 88.9 95.9 99.4 Trade receivables -63.9 -62.2 -58.5 Trade payables -118.6 -96.0 30 June ’22 30 Sept ’22 31 Dec ’22 31 Ma
Slide 22: Robust balance sheet structure and financial profile
Robust balance sheet structure and financial profile (continued operations) Balance sheet structure Financial profile as of 30 June 2023 Balance sheet 30/06/2023: EUR 802m Balance sheet 31/12/2022: EUR 843m Cash and cash equivalents at EUR 89m Corporate Schuldschein loan at EUR 53m Non-current 3
Slide 23: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.13) Outlook (p.23) Appendix (p.27) 23 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 24: Management agenda 2023
Management agenda 2023 • Solid performance in 1-6’2023, but first signs of top line and margin pressure on the back of lower order intake, customer caution and economic slowdown • Manage the downturn: focus on share of wallet gains, address growing price sensitivity and ongoing cost pressure • Simpl
Slide 25: Outlook 2023 (continued operations)
Outlook 2023 (continued operations) EBITDA guidance at the lower end of the range of EUR 70m–90m confirmed CAPEX expected at ~EUR 75m due to slight postponements into 2024 25 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 26: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2023 Judit Helenyi, Director Investor Relations 10.08.2023 Half-year financial report 2023 08.11.2023 Report on Q1-3 2023 +43 1 79777 - 310 www.semperitgroup.com/en/ir Am Belvedere 10 1100 Vienna, Austria Disclaimer The in
Slide 27: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.13) Outlook (p.23) Appendix (p.27) 27 Investor Presentation 1-6 2023 I 10 August 2023 I Investor Relations
Slide 28: Sectors and Group: 1-6 2023 vs 1-6 2022
Sectors and Group: 1-6 2023 vs 1-6 2022 1) 2) 3) Industrial Sector Medical Sector Semperit Group in EUR m Q1-6 2023 Q1-6 2022 % Q1-6 2023 Q1-6 2022 % Q1-6 2023 Q1-6 2022 % Revenue 355.7 372.3 -4.5% 81.6 198.3 -58.8% 374.2 394.8 -5.2% EBITDA 64.2 68.0 -5.6% -20.3 15.6 >100% 43.7 53.9 -18.9% EBITDA ma
Slide 29: Semperit Group adj. where applicable
Semperit Group adj. where applicable 3) Semperit Group adj. where applicable Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q1 Q2 2022 2022 2022 2021 2021 2021 2021 2021 2022 2022 1) 2) 2) 2023 2023 in EUR m adj. adj. adj. Revenue 323.1 337.7 265.3 256.1 1,182.2 277.0 293.6 259.0 228.6 1,058.2 185.2 189.0 EBITDA 122
Slide 30: Semperflex and Semperseal (adj. where applicable)
Semperflex and Semperseal (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q1 2022 Q2 2022 Q3 2022 Q4 2022 FY 2022 Q1 2023 Q2 2023 2021 2021 2021 2021 2021 in EUR m Revenue 54.7 59.7 57.7 68.4 240.5 79.8 93.9 78.5 76.6 328.8 72.6 65.5 EBITDA 12.3 13.9 11.2 13.9 51.3 19.6 27.3 21.5 13.9 82.2
Slide 31: Sempertrans and Semperform (adj. where applicable)
Sempertrans and Semperform (adj. where applicable) Sempertrans (Conveyor belts) Q1 Q2 Q3 Q4 FY Q4 2022 FY 2022 Q1 2022 Q2 2022 Q3 2022 1) 1) Q1 2023 Q2 2023 2021 2021 2021 2021 2021 adj. adj. in EUR m Revenue 26.9 24.2 28.0 25.3 104.5 28.3 41.5 40.0 42.1 151.9 43.0 50.6 EBITDA 1.0 0.8 4.7 0.4 6.8 1.
Slide 32: Sempermed (adj. where applicable)
Sempermed (adj. where applicable) Sempermed (Gloves) Q1 Q2 Q3 Q4 FY Q3 2022 Q4 2022 Q1 2022 Q2 2022 1) 2) FY 2022 Q1 2023 Q2 2023 2021 2021 2021 2021 2021 adj. adj. in EUR m Revenue 192.9 199.8 124.0 109.4 626.1 106.1 92.3 72.9 -225.4 324.2 39.6 42.1 EBITDA 105.3 115.3 56.9 23.7 301.1 13.3 2.3 -19.6
Slide 33: Key figures 2012-2022
Key figures 2012-2022 Key performance figures 2016 2017 2018 2019 2020 7) in EUR m 2012 2013 20141) 20151) 2021 2022 adj.2) adj.3) adj. 4) adj. 5) adj.6) Revenue 828,6 906,3 858,3 914,7 852,4 874,2 878,5 840,6 927,6 1 182,2 1 058,2 EBITDA 108,7 132,5 101,9 96,2 74,7 35,8 50,3 63,8 208,6 361,8 90,5 E
Slide 34: 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 250 ø 2021 ø 2022 Ø 2023 200 150 100 50 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration p
Slide 35: 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 225 200 ø 2021 Ø ø 2022 Ø 2023 ø 2021 Ø 2022 200 2023 175 175 150 150 125 125 100 100 75 75 50 50 25 25 Fuel Oil 1% Sulphur NWE FOB Cargo Price i