Slide 1: Q3 2014 Earnings Call
Q3 2014 Earnings Call November 14, 2014
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements with respect to our financial condition, results of operations and business. Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known
Slide 3: Q3 2014 Highlights
Q3 2014 Highlights Adjusted EBITDA increased by 5.1% to €53.2 million. Cash from Operations of €58.3M Revenue of €329.8 million, down 1.9%, reflecting targeted individual product mix effects within our two segments, as well as the pass through effect of declining oil prices Specialty Carbon
Slide 4: Q3 2014 Operating Results
Q3 2014 Operating Results Stronger unit margins drive improving Adjusted EBITDA Q3 FY ‘14 Performance Q3 Q3 Y-o-Y FY’14 FY’13 Comparison Volume (kmt) 246.4 244.9 0.6% Revenue €329.8m €336.1m (1.9%) Contribution Margin €106.1m €100.3m 5.8% Contribution Margin / ton €430.6 €409.6 5.1% Adjusted EBITDA
Slide 5: Specialty Carbon Black Segment Results
Specialty Carbon Black Segment Results Increased Specialty Carbon Black volumes contributed to increased gross profit Q3 FY ‘14 Performance Q3 Q3 Y-o-Y FY’14 FY’13 Comparison Volume (kmt) 51.0 49.7 2.6% Revenue €101.0 €100.2 0.8% Gross Profit €34.1 €33.2 2.5% Adjusted EBITDA €26.9 €27.0 (0.3%) Adjus
Slide 6: Rubber Carbon Black Segment Results
Rubber Carbon Black Segment Results Continued efficiency improvements drive gross profit performance Q3 FY ‘14 Performance Q3 Q3 Y-o-Y FY’14 FY’13 Comparison Volume (kmt) 195.4 195.2 0.1% Revenue €228.8 €235.9 (3.0%) Gross Profit €43.3 €35.6 21.6% Adjusted EBITDA €26.3 €23.7 11.3% Adjusted EBITDA Ma
Slide 7: Balance Sheet & Cash Flow Year to Date Update
Balance Sheet & Cash Flow Year to Date Update Solid free cash flow generation and strong balance sheet In € (EUR) 9 months ended Cash inflows from operations of €112.2 million September 30, 2014 Net Loss (47.6) Capital expenditures of €37.2million for improvements and maintenance projects Plus:
Slide 8: Global GDP growth is driven by North America and Asia
Global GDP growth is driven by North America and Asia Real 2014 GDP growth expectation by region - IMF North America Europe + 2.3% + 1.4% Reduced 2014 forecast from 2.8%, but North American Reduced 2014 growth forecast from 1.6% reflecting economy is expected to grow stronger in 2015 than in wea
Slide 9: NAFTA and Asia saw positive development; European and South American OEM and tire markets weakened
NAFTA and Asia saw positive development; European and South American OEM and tire markets weakened Data on Tire Demand and Auto Build - 2014 Q3 vs. 2013 Q3 North America Europe Automotive Passenger / LT Tire Automotive Passenger / LT Tire OEM Replacement OEM Replacement + 5.9% + 5% + 5% + 2.7% + 4%
Slide 10: Reiterating 2014 Full Year Outlook
Reiterating 2014 Full Year Outlook Full Year Adjusted EBITDA €200 million - €207 million Full Year Operating Results (EBIT) €99 million - €109 million (Unadjusted IFRS Basis) Pro forma annualized cost of new financing of ~ €35 million (including amortization of transaction costs) Strong Year
Slide 11: Appendix
Appendix
Slide 12: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€MM unless otherwise stated) Three Months Ended September30, 2013 2014 Revenue 336 330 Variable costs (1) (236) (224) Contribution Margin 100 106 Sales volume (in kmt) 245 246 Contribution Margin per Metric Ton 41
Slide 13: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€MM unless otherwise stated) 2011 Predecessor 2011 Successor (ended 29-Jul) (ended 31-Dec) 2012A 2013A 2014 A YTD Revenue 781 545 1,398 1,340 1,001 Variable costs (1) (538) (398) (995) (943) (685) Contribution Mar
Slide 14: Q3 2014 Earnings Call
Q3 2014 Earnings Call November 14, 2014