Semperit Ag Holding · VIE:SEM
Semperit — H1 2020 Earnings Presentation
37 slides from Semperit's earnings presentation, Aug 14, 2020
Slide 1: Semperit Group H1 2020 Investor Presentation
SEMPERIT GROUP H1 2020 INVESTOR PRESENTATION Dr Martin Füllenbach, CEO Petra Preining, CFO 14 August 2020 1
Slide 2: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.24) Appendix (p.27) 2 Investor Presentation H1 2020 I 14 August 2020 I Investor Relations
Slide 3: Key Highlights H1'20 – Best EBITDA since 2014
Key Highlights H1’20 – Best EBITDA since 2014 Corona pandemic: Restructuring process accelerated – Medical sector benefits from high demand through corona pandemic supported by € and exceptional market prices strict countermeasures € Significant improvement both at EBITDA – Impact on Industria
Slide 4: Corona Impact: strict measures and structural realignments
Corona Impact: strict measures and structural realignments Health & Safety is KEY: only 9 Semperit employees fell ill with corona virus (CoViD-19) by now – all with only mild symptoms No critical restrictions for production – shutdowns in China and India in the course of H1’19 due to governmenta
Slide 5: Strategy update – in light of corona
Strategy update – in light of corona Focus on industrial rubber strategy continuously pursued Separation from the medical segment decided postponed Higher market and customer orientation accelerated Organic growth slow down Geographic expansion ongoing Product diversification continuousl
Slide 6: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.24) Appendix (p.27) 6 Investor Presentation H1 2020 I 14 August 2020 I Investor Relations
Slide 7: Group operating profit up despite corona impacts
Group operating profit up despite corona impacts • Exceptional performance at Medical Sector both for revenue and profitability • First visible impact on Industrial Sector • Operational EBITDA yoy improvement for 10th consecutive quarter Revenue –4.2% -4.2% +47.2% – Medical Sector at € 169.7m, 437
Slide 8: Industrial Sector EBITDA H1 2020
Industrial Sector EBITDA H1 2020 Strong margin improvement against high Q2’19 comparison 28.2 27.1 24.5 23.0 21.3 22.0 19.0 Industrial 18.8 17.9 17.7 17.3 15.3 16.1 Sector 14.5 15.6 12.6 13.3 11.6 12.8 10.6 1) Q1 Q2 Q3 Q4 EBITDA ’18 in € m EBITDA ’18 margin EBITDA ’19 in € m EBITDA ’19 margin EBITDA
Slide 9: Semperflex H1 2020
Semperflex H1 2020 Highest EBITDA margin since during the last 6 quarters 27.2% 22.8% 24.4% 20.1% 19.9% EBITDA in € m 18.1% EBITDA margin Semperflex 13.9 14.5 14.0 10.8 9.3 8.7 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 H1 2020 vs. H1 2019 -17.9% EBITDA yoy, € -5.1m Revenue Revenue down due to reduced
Slide 10: Sempertrans H1 2020
Sempertrans H1 2020 Highest EBITDA margin since the beginning of 2019 15.4% 14.2% 13.1% EBITDA in € m 9.0% EBITDA margin Sempertrans 5.4 5.4% 5.0 1.3 4.6 2.5% 1.4 1.6 0.8 Q1’19 1) Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 H1 2020 vs. H1 2019 Sales down due to lower demand especially in Revenue Western Europe
Slide 11: Semperseal H1 2020
Semperseal H1 2020 EBITDA Margin still at high levels 14.1% 14.7% 13.2% 12.8% EBITDA in € m 9.8% Semperseal EBITDA margin 3.9 3.4 3.3 3.2 2.5 3.0% 0.6 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 H1 2020 vs. H1 2019 Revenue 47 Top line pressure due to reduced market demand current period Semperseal Revenue
Slide 12: Semperform H1 2020
Semperform H1 2020 Improved EBITDA margin 22.6% 19.6% 18.4% 17.7% 17.5% EBITDA in € m Semperform 12.2% EBITDA margin 4.8 5.0 4.0 4.1 3.5 2.7 Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 Q1 2020 vs. Q1 2019 Revenue down yoy (-11.1%) due to reduced Revenue economic activity starting in late 2019 (mainly 42 c
Slide 13: Medical Sector / Sempermed segment H1 2020
Medical Sector / Sempermed segment H1 2020 EBITDA margin boosted by market dynamics, leveraged by operational efficiency 19.7 EBITDA in € m EBITDA margin Sempermed Medical 6.1 18.2 2.3 Sector 0.8 -0.1 4.8 -0.9 0.6 1.8 -0.1 -1.2 1) Q1’19 Q2’19 Q3’19 Q4’19 Q1’20 Q2’20 H1 2020 vs. H1 2019 Higher reve
Slide 14: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.24) Appendix (p.27) 14 Investor Presentation H1 2020 I 14 August 2020 I Investor Relations
Slide 15: H1 2020: Strong and resilient financial position
H1 2020: Strong and resilient financial position Cost base reduced due to both temporary corona measures and ongoing general strict focus on cost containment Government support only used to a very limited extent Continuing active working capital management Q2 operating results support FCF ge
Slide 16: Revenue development
Revenue development in € m -4.2% 437.3 21.9 418.9 -22.5 -6.3 -6.3 -5.2 Industrial Medical Sector Sector -13.9% +14.8% -18.6% -9.2% -11.8% -11.1% H1’19 Semperflex Sempertrans Semperseal Semperform Sempermed H1’20 Revenue 98.4m 62.0m 47.1m 41.8m 169.7m H1’20 1) Semperform has been split into Sempersea
Slide 17: Reported EBITDA with strong tailwind from Sempermed
Reported EBITDA with strong tailwind from Sempermed EBITDA improvement yoy for 10th consecutive quarter in € m +47.2% 57.6 +3.1 39.1 +23.3 -5.1 -1.5 -0.9 -0.4 H1’19 Semperflex Sempertrans Semperseal Semperform Sempermed Corporate H1’20 Operating EBITDA 39.1m 28.4m 8.1m 7.3m 8.8m -0.3m -13.2m H1’19)
Slide 18: Financials and profitability overview
Financials and profitability overview in € m H1 20202) Change H1 2019 Q2 20202) Change Q2 2019 Revenue 418.9 -4.2% 437.3 219.8 -2.0% 224.4 EBITDA 57.6 +47.2% 39.1 40.7 +79.7% 22.7 EBITDA margin 13.7% +4.8 PP 9.0% 18.5% +8.4 PP 10.1% EBIT adjusted 43.4 >100% 20.9 33.6 >100% 13.1 EBIT margin adjusted
Slide 19: Tax development
Tax development in € m H1 2020 H1 2019 Change Current income tax expense 9.3 6.4 2.9 In particular, the increase of tax expenses is caused by an increase in taxable income at Sempermed in Singapore and USA and withholding-tax expenses for dividends received from subsidiaries in China and Thailan
Slide 20: CAPEX by quarter
CAPEX by quarter H1’20 CAPEX under strict control – main focus on maintenance FY 2020 CAPEX to remain below € 40m CAPEX per segment in € m 6.8 6.8 Semperflex 1.3 1.4 Sempertrans 5.2 5.1 0.3 Semperseal 1.4 1.0 0.8 Semperform 1.9 3.7 0.0 Sempermed 0.1 1.6 2.0 Corporate 1.9 0.9 2.0 0.9 0.4 0.7 0.1
Slide 21: Working Capital overview
Working Capital overview Components of Working Capital in € m 20.5%1) 19.0%1) 18.5%1) 18.0%1) 19.5%1) 177.9 163.4 148.5 160.4 155.2 147.1 136.0 124.2 127.4 Inventories 122.2 114.1 109.8 94.6 102.9 107.6 Trade receivables -61.5 -78.5 -74.5 Trade payables -83.3 -82.5 30 June 2019 30 Sept 2019 31 Dec 2
Slide 22: Free cash flow development
Free cash flow development Improved results, active WC management and strict CAPEX control support cashflow development H1’20 FCF increased yoy by 18% Development of cash flow components1) in € m 59 54 39 47 40 -2 -12 -7 -20 -43 -42 -52 2) H1’17 H1’18 H1’19 H1’20 Operating cash flow Free cash fl
Slide 23: Balance sheet structure and financial profile
Balance sheet structure and financial profile Balance sheet structure Financial profile as of 30 June 2020 Cash and cash equivalents of € 167m Balance sheet 30/6/2020: € 801m Balance sheet 31/12/2019: € 702m Financial liabilities: Corporate Schuldschein loan partially repaid already in Q1’20,
Slide 24: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan 2020 (p.24) Appendix (p.27) 24 Investor Presentation H1 2020 I 14 August 2020 I Investor Relations
Slide 25: Leadership priorities and action plan 2020
Leadership priorities and action plan 2020 Ongoing crisis management, monitoring of the upcoming developments and specific actions against corona impact Accelerated transformation process not only continued but accelerated through the crisis Management focus on cash generation, strong balance sheet
Slide 26: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2020 Judit Helenyi, Director Investor Relations 14.08.2020 Half-year financial report 2020 19.11.2020 Report on Q1-3 2020 +43 1 79777 - 310 www.semperitgroup.com/en/ir Modecenterstrasse 22 1031 Vienna, Austria Disclaimer T
Slide 27: Agenda
Agenda Key Highlights and Executive Summary (p.2) Operational Highlights (p.6) Financial Performance (p.14) Leadership priorities and action plan (p.24) Appendix (p.27) 27 Investor Presentation H1 2020 I 14 August 2020 I Investor Relations
Slide 28: Sectors and Group: H1 2020 vs H1 2019
Sectors and Group: H1 2020 vs H1 2019 Industrial Sector Medical Sector Semperit Group1) in EUR m H1 20202) H1 2019 % H1 20203) H1 2019 % H1 20202,3) H1 2019 % Revenue 249.2 289.5 -13.9% 169.7 147.8 14.8% 418.9 437.3 -4.2% EBITDA 44.8 52.7 -14.9% 23.0 -0.3 – 57.6 39.1 +47.2% EBITDA margin 18.0% 18.2%
Slide 29: Semperit Group adj. where applicable
Semperit Group adj. where applicable Semperit Group adj. where applicable Q1 Q2 Q3 Q4 FY Q2 Q3 Q4 Q2 Q1 Q3 Q4 FY Q1 Q2 FY Q1 2017 2017 2017 2017 2017 2018 2019 2019 2020 1) 1) 1) 1) 1) 2018 2) 2018 2018 2018 2019 2019 3) 4) 2019 2020 5) in EUR m adj. adj. adj. adj. adj. adj. adj. adj. adj. Revenue 2
Slide 30: Semperflex and Sempertrans (adj. where applicable)
Semperflex and Sempertrans (adj. where applicable) Semperflex (Hoses) Q1 Q2 Q3 Q4 FY Q3 Q1 Q2 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2017 2017 2017 2017 2017 2018 1) 1) 1) 1) 1) 2018 2018 2) 2018 2018 2019 2019 2019 2019 2019 2020 2020 in EUR m adj. adj. adj. adj. adj. adj. Revenue 53.5 53.2 46.8 52.5 206.1 58.
Slide 31: Semperform and Semperseal (adj. where applicable)
Semperform and Semperseal (adj. where applicable) Semperform (Window and door profiles, Handrails) - before 2020 Q3 FY Q1 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 2017 2017 2017 2017 1) 2017 1) 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020 in EUR m adj. adj. Revenue 45.3 50.1 46.9 42.
Slide 32: Sempermed (adj. where applicable)
Sempermed (adj. where applicable) Sempermed (Gloves) Q1 Q2 Q3 FY Q3 Q2 Q4 Q1 Q2 Q3 Q4 FY Q1 Q2 Q4 FY Q1 2017 2017 2017 2017 2019 2020 2) 2) 1) 2017 1) 2) 2018 2018 2018 2018 2018 2019 2019 3) 2019 2019 2020 4) in EUR m adj. adj. adj. adj. adj. adj. Revenue 89.2 92.2 78.8 76.9 337.1 80.0 77.1 80.4 73
Slide 33: Key figures 2009-2019
Key figures 2009-2019 Key performance figures 1) 1) 3) 3) 2016 2017 2018 2019 in EUR m 2009 2010 2011 2012 2013 2014 2015 4) 5) 6) 7) adj. adj. adj. adj. Revenue 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4 874.2 878.5 840.6 EBITDA 102.8 112.3 110.0 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 EBIT
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 150 ø 2019 ø YTD 2020 100 50 0 Butadiene Europe Butadiene Korea 1) Selected raw materials are shown for illustration purposes onl
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 125 125 ø 2019 ø YTD ø 2019 ø YTD 2020 2020 100 100 75 75 50 50 Fuel Oil 1% Sulphur NWE FOB Cargo Price index wire rod (Germany) 1) Selected raw
Slide 36: Product / market position / segment overview, FY 2019
Product / market position / segment overview, FY 2019 Semperit Group Industrial Sector Medical Sector Group Semperflex Sempertrans Semperform4) Sempermed Revenue € 841m € 223m / 26%1) € 134m / 16%1) € 191m / 23%1) € 293m / 35%1) EBITDA adj. € 64m2) € 48m € 14m € 26m € 1m Employees 6,9022) 1,672 / 27
Slide 37: Shareholder Structure
Shareholder Structure Shareholder structure Semperit is listed on the Vienna Stock Exchange since 1890 Total of 20,573,434 shares B & C Holding Österreich GmbH is part of < 46% B & C Privatstiftung, an Austrian based private foundation / trust > 54% Primary focus of B & C is pursuing the fou