Semperit Ag Holding · VIE:SEM
Semperit — Q1 2024 Earnings Presentation
32 slides from Semperit's earnings presentation, May 15, 2024
Slide 1: Semperit Group Q1 2024 Investor Presentation
SEMPERIT GROUP Q1 2024 INVESTOR PRESENTATION Karl Haider, CEO Helmut Sorger, CFO 15 May 2024
Slide 2: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.9) Outlook (p.20) Appendix (p.26) 2 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 3: Highlights Q1 2024
Highlights Q1 2024 Solid Q1’24 performance with stable revenues and 9% increase in EBITDA Industrial strategy in full implementation Cost reduction program fully on track, EUR 9.9m in total reached already Dividend paid on April 30 Rico: Q1’24 revenues EUR 24.3m, lower customer call offs and market-
Slide 4: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.9) Outlook (p.20) Appendix (p.26) 4 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 5: Strategic focus: profitable growth, customer intimacy and technology leadership
Strategic focus: profitable growth, customer intimacy and technology leadership New divisional structure around Semperit’s two main business models serving as ideal platform for focused organic and inorganic growth – while reducing complexity and enabling to scale up business Cost leadership Lev
Slide 6: SIA with strong operating leverage, SEA with positive impact from recent acquisition
SIA with strong operating leverage, SEA with positive impact from recent acquisition Semperit Industrial Applications Semperit Engineered Applications Q1’24 Q1’24 42% Q1’23 Q1’23 44% 47% 43% 56% 57% 53% 58% As of Q1 2024, Surgical Operations are part of the discontinued operations and are not includ
Slide 7: Semperit Industrial Applications Q1 2024
Semperit Industrial Applications Q1 2024 Operating leverage on the back of cost reduction and further efficiency enhancement EBITDA in EUR m 23.9% 21.5% EBITDA margin 19.1% 19.2% 18.5% 17.6% 12.5% Semperit 10.2% Industrial 30.2 Applications 21.3 24.0 6.3% 17.5 17.8 12.6 13.8 7.4 4.2 Q1’22 Q2’22 Q3’2
Slide 8: Semperit Engineered Applications Q1 2024
Semperit Engineered Applications Q1 2024 Growth in top line and operating profit – YoY impact from change in consolidation range 17.0% EBITDA in EUR m 16.4% 18.3% 2.3 17.1% EBITDA margin 15.1% 12.7% 15.2% 11.3% Semperit 8.7% 4.1 Engineered 15.8 15.4 12.2 13.1 14.0 Applications 11.3 8.4 7.5 5.2 1 1 Q
Slide 9: Agenda
Agenda Key Highlights (p.2) Operational Performance (p.4) Financial Performance (p.9) Outlook (p.20) Appendix (p.26) 9 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 10: Financial highlights Q1 2024
Financial highlights Q1 2024 Key focus on cash Structural cost Further digitalization Surgical Operations 2023 dividend and working capital adjustments to with “oneERP” project reported as at EUR 10.3m management re-gear operating and other initiatives discontinued paid out leverage for market with
Slide 11: Overview of financial KPIs Q1 2024 and Q1 2023
Overview of financial KPIs Q1 2024 and Q1 2023 Q1 2023 Q1 2024 Δ Revenues, in EUR m 176.4 176.0 -0.2% EBITDA, in EUR m 21.0 23.0 +9.4% EBITDA margin, in % 11.9 13.0 +1.2PP EBIT, in EUR m 13.6 11.6 -15.1% EBIT margin, in % 7.7 6.6 -1.1PP Earnings after tax from continued op. in EUR m 8.7 5.0 -42.8% F
Slide 12: Detail on Last Twelve Month (LTM) view
Detail on Last Twelve Month (LTM) view LTM Revenue (EUR m) and EBITDA margin (%) 734.0 739.5 717.4 705.0 695.1 681.8 681.4 660.3 596.9 556.1 527.4 507.0 518.9 490.1 478.4 487.0 497.3 17.1 17.5 16.5 16.7 16.9 15.9 16.0 16.3 15.3 15.7 14.7 14.7 14.6 14.8 14.9 14.3 14.1 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2
Slide 13: EBITDA development: cost reduction and Rico drive positive results
EBITDA development: cost reduction and Rico drive positive results in EUR m +9% 3.7 23.0 21.0 2.3 23.1 -0.3 1.6 Cost reduction: ~EUR 10m run rate Q1’23: EUR 0.4m Q1’24: EUR 4.1m FY’23: EUR 5.8m -16.1 ∑: EUR 9.9m -8.6 -3.7 EBITDA Price Effect Volume Change in Cost of materials Personnel exp. Miscella
Slide 14: Handover of Surgical Operations to Harps expected within 12 months
Handover of Surgical Operations to Harps expected within 12 months Surgical gloves’ business was originally excluded from first closing with Harps, with final handover planned within five years (until 2028). On 21 March 2024, Semperit concluded a co-use agreement with Harps. This agreement enabl
Slide 15: Working Capital overview
Working Capital overview Components of Working Capital1 in EUR m 20.3% 20.5% 21.8% 15.9% 18.7% 158.8 155.6 160.4 127.7 134.8 125.2 114.7 121.9 110.8 106.6 Inventories 95.9 99.4 100.8 86.1 86.7 Trade receivables -62.2 -58.5 -62.3 -69.2 -58.5 Trade payables 31 March ’23 30 June ’23 30 Sept ’23 31 Dec
Slide 16: Free cash flow
Free cash flow in EUR m Q1 2024 22.6 -2.9 0.4 -16.6 3.5 Operating Net interests Other investment cash flow Maintenance and small growth projects Free cash flow cash flow 16 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 17: Net Financial Debt Q1 2024
Net Financial Debt Q1 2024 Net financial debt / EBITDA multiple stable at very solid 1.6x Financial liability increased by 5% to EUR 240.1m since YE 2023 EUR 100m unused credit facility in EUR m 6.0 -22.6 16.6 5.0 115.2 120.2 Net financial debt Operating cash flow Interest, leasing, minority C
Slide 18: Robust balance sheet structure and financial profile
Robust balance sheet structure and financial profile Balance sheet structure Financial profile as of 31 March 2024 Balance sheet 31/03/2024: EUR 950m Cash and cash equivalents at EUR 120m Balance sheet 31/12/2023: EUR 938m Surgical Operations now shown as assets held for sale Non-current assets
Slide 19: Capital allocation and usage of cash
Capital allocation and usage of cash Free Cashflow Normal Investments € Growth Investments € Shareholder Return % MAINTENANCE GROWTH CAPEX & M&A DIVIDENDS CAPEX DIGITALIZATION Commitment to maintaining Strategic growth project Strategic considerations: Attractive and enhancing our expansion of the h
Slide 20: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.4) Financial Performance (p.9) Outlook (p.20) Appendix (p.26) 20 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 21: Market Outlook 2024
Market Outlook 2024 Current cyclical downturn impacts commodity business (SIA) harder due to weak construction- and yellow goods industries Diversified markets with different dynamics for SEA – thus more resilient and stable with focus on technology and industrial solutions (e.g. mountain applic
Slide 22: Management agenda
Management agenda Focus on industrial strategy with profitable growth, customer intimacy and technological leadership Distinctive industrial focus on two competitive business models Managing the downturn through costs, share-of-wallet gains and capacity adjustments Simplification, lean manag
Slide 23: Guidance 2024
Guidance 2024 2024: EBITDA expected at ~EUR 80m 2024: CAPEX expected at ~EUR 70m 40% growth – 60% maintenance and small growth projects 23 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 24: Five reasons to invest in Semperit
Investment Proposition Five reasons to invest in Semperit 1 Leading global market position in elastomer applications with strong industrial base 2 Relentless focus on innovation and technology, 3 Resilient business model driven by operating leverage and cost leadership 4 Strong balance sheet and cas
Slide 25: Contact and financial calendar
Contact and financial calendar Investor Relations Semperit Financial Calendar 2024 Judit Helenyi, Director Investor Relations 15.05.2024 Report on 1-3 2024 13.08.2024 Half-year financial report 2024 +43 1 79777 - 310 07.11.2024 Report on 1-9 2024 www.semperitgroup.com/en/ir Am Belvedere 10 1100 Vien
Slide 26: Agenda
Agenda Key Highlights & Strategy (p.2) Operational Performance (p.4) Financial Performance (p.9) Outlook (p.20) Appendix (p.26) 26 Investor Presentation Q1 2024 I 15 May 2024 I Investor Relations
Slide 27: Divisions & Group
Divisions & Group: in EUR m INDUSTRIAL APPLICATIONS (SIA) 1 ENGINEERED APPLICATIONS (SEA) 2 1 SEMPERIT GROUP 2 1 Q1 2024 Q1 2023 % Q1 2024 Q1 2023 % Q1 2024 Q1 2023 % Revenue 74.5 99.4 -25.0% 101.5 77.1 31.7% 176.0 176.4 -0.2% EBITDA 13.8 17.5 -20.9% 15.4 13.1 17.2% 23.0 21.0 9.4% EBITDA margin 18.5
Slide 28: Semperit Group (continued operations)
Semperit Group (continued operations) in EUR m SEMPERIT GROUP FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 Revenue 601.8 181.5 213.3 198.6 186.4 779.8 185.2 189.0 173.4 173.4 721.1 176.0 EBITDA 54.0 20.3 33.7 25.9 20.7 100.5 20.8 22.9 13.1 15.0 71.8
Slide 29: Semperit Industrial Applications, Semperit Engineered Applications & Corporate
Semperit Industrial Applications, Semperit Engineered Applications & Corporate in EUR m SEMPERIT INDUSTRIAL APPLICATIONS (SIA) FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 2024 Revenue 341.9 111.1 126.4 111.6 101.1 450.2 99.4 93.0 72.2 66.2 330.8 74.5 EB
Slide 30: Key figures 2012-2023
Key figures 2012-2023 KEY PERFORMANCE FIGURES in EUR m 1 1 2012 2013 2014 2015 2016 adj.2 2017 adj. 3 2018 adj. 4 2019 adj. 5 2020 adj.6 2021 7 2022 adj.7 2023 adj.8 Revenue 828.6 906.3 858.3 914.7 852.4 874.2 875.5 840.6 927.5 601.8 779.8 721.1 EBITDA 108.7 132.5 101.9 96.2 74.7 35.8 50.3 63.8 208.
Slide 31: Overview price indices LFO-F-NEW / Butadiene
Overview price indices LFO-F-NEW / Butadiene Significant increase for raw material1 used in industrial segments Price index LFO-F-NWE Price indices Butadiene as main raw material for synthetic rubber / latex 225 250 ø 2021 ø 2022 ø 2023 ø ø 2021 ø 2022 ø 2023 ø 200 2024 2024 200 175 150 150 125 100
Slide 32: ESG targets in line with new Group structure
ESG targets in line with new Group structure ESG Ratings: EcoVadis platinum award for second year in a row CDP -Climate Change improved to C (after C-), first rating for Forest (C) Diversity & Inclusion (D&I) as focus point introduced while also applying new targets More ambitious goal set for suppl