Schouw & Co A/s · OMXCOP:SCHO

Schouw & Co A/s — Q2 2019 Earnings Presentation

15 slides from Schouw & Co A/s's earnings presentation, Aug 15, 2019

  1. Slide 1: 2019 Q2 interim report

    INVESTOR PRESENTATION 15 August 2019 2019 Q2 interim report

  2. Slide 2: Schouw & Co. value proposition

    INTRODUCTION Schouw & Co. value proposition 1 Diversified portfolio 2 Leading B2B businesses 29 10,000 2 countries with employees major long-term production shareholders 3 Active/long-term ownership 4 Europe-based, global outlook 5 ROIC-focused 6 Financially strong 2

  3. Slide 3: The portfolio

    INTRODUCTION The portfolio Fish Feed Nonwovens Industrial solutions ~50% ~45% ~20% ~25% ~30% ~30% of 2019E sales of 2019E EBITDA of 2019E sales of 2019E EBITDA of 2019E sales of 2019E EBITDA 3

  4. Slide 4: Group financial highlights

    2019 Q2 FINANCIALS Group financial highlights Revenue (DKK million) Profit (DKK million) Cash Flow (DKK million) Return (%) -16.0% neg. -2.7pp 9.6% +5.0% +7.0% -3.9pp 4,969 419 337 16.3 399 315 4,534 12.6 12.4 266 9.9 224 128 -35 2018Q2 2019Q2 2018Q2 2019Q2 2018Q2 2019Q2 2018Q2 2019Q2 Total revenue

  5. Slide 5: Strong cash flow generation

    2019 Q2 FINANCIALS Strong cash flow generation Q2 revenue (DKK million) Q2 EBITDA (DKK million) Q2 CashFlow Operations (DKK million) +10% +5% +163 16 +3 +15 +17 4,969 +7 0 17 -36 +10 -24 18 -90 419 +71 +3 +11 +1 +29 -14 -21 +417 +7 128 -5 399 +21 -12 +51 +24 4,534 +20 +98 -4 IFRS16 +50 +369 EBITDA -

  6. Slide 6: Significant capex program

    INVESTMENTS Significant capex program  Tasmania, green-field for salmon,  North Carolina, USA, green-field  Thailand, electronics capacity, 110k ton, total investment DKK for direct print on spunbond step 1 to commence in 2019Q3 300m (~DKK 200m in 2019), materials, total investment DKK  Mexico,

  7. Slide 7: BioMar: Increased 2019 guidance

    PORTFOLIO BUSINESSES BioMar: Increased 2019 guidance Comments Q2 revenue DKK billion Q2 EBITDA DKK million +3.4% +13.5%  Lower volumes in Norway as expected but partly 2.5 2.5 191 offset by strong sales in other salmon markets 2.2 2.3 174 145 156 1.9 Q2 as  EMEA in solid progress, driven by good B

  8. Slide 8: FPC: Focus on cash flow generation

    PORTFOLIO BUSINESSES FPC: Focus on cash flow generation Comments Q2 revenue DKK million Q2 EBITDA DKK million +5.8% +0.8%  2019Q2 revenue 4% higher then 2018Q2 494 506 82 486 74 433 70 69 72 2019  Higher volumes in Denmark, lower in Malaysia 404 ahead of  Significant increase in print sales, but

  9. Slide 9: FIN: Strong US but one-off costs hurts

    PORTFOLIO BUSINESSES FIN: Strong US but one-off costs hurts Comments Q2 revenue DKK million Q2 EBITDA DKK million +7.8% -3.7%  Q2 revenue 6% up, mainly effect from US acquisition 443 52 420 48 49 Profit  Generally, strong US market conditions 362 374 44 328 38 decline, mainly due  Raw materials f

  10. Slide 10: GPV: Integration of acquired region DACH

    PORTFOLIO BUSINESSES GPV: Integration of acquired region DACH Comments Q2 revenue DKK million Q2 EBITDA DKK million  Completely transformed GPV after CCS acquisition 714 42 +34.3% +27.3% Integration  Revenue growth in both ‘old’ and ‘new’ GPV, however signs of lower activity at some customers 27 c

  11. Slide 11: HySp: Good activity and margin expansion

    PORTFOLIO BUSINESSES HySp: Good activity and margin expansion Comments Q2 revenue DKK million Q2 EBITDA DKK million +39.2%  Revenue up 3%, mainly driven by wind and vehicles 550 565 +29.4% 64 Solid  EBITDA up 33% (one-off and IFRS16 adjusted +8%) 466 457 48 margin 43 improve-  NWC increase follow

  12. Slide 12: Borg: Soft market demand

    PORTFOLIO BUSINESSES Borg: Soft market demand Comments Q2 revenue DKK million Q2 EBITDA DKK million +1.0% -16.8%  Soft sales across countries and product groups Soft 247 268 45 41 225 232 demand  No loss of market share to Borg’s customers, 36 puts however some customers have lost orders PPA 32 21

  13. Slide 13: Updated 2019 guidance

    OUTLOOK Updated 2019 guidance Profit guidance DKK million Revenue guidance DKK million Significant impact on EBITDA from IFRS 16, however progress in BioMar, Fibertex All businesses expect strong sales in 2019 Personal Care, GPV and HydraSpecma expected in adjusted figures IFRS16 effect included in

  14. Slide 14: Top priorities in 2nd half of 2019

    OUTLOOK Top priorities in 2nd half of 2019 Harvest value from large Turn FIN around by 01 investment and capex program 02 implementing findings from strategic review Secure value-creation Continue successful 03 from BioMar’s strong contract base 04 integration and building a strong international GPV

  15. Slide 15: Results are created by people

    Results are created by people Aktieselskabet Schouw & Co. Chr. Filtenborgs Plads 1  8000 Aarhus C  Denmark +45 86 11 22 22 schouw@schouw.dk www.schouw.dk www.linkedin.com/company/schouw Nasdaq Copenhagen ticker SCHO

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