Orion S.a. · NYSE:OEC
Orion — Orion Engineered Carbons — Q2 2016 Earnings Presentation
16 slides from Orion's earnings presentation, Aug 5, 2016
Slide 1: 2Q 2016 Earnings Call
2Q 2016 Earnings Call August 5, 2016
Slide 2: Note Regarding Forward-Looking Statements; Non-IFRS Measures
Note Regarding Forward-Looking Statements; Non-IFRS Measures This presentation contains certain forward-looking statements with respect to our financial condition, results of operations and business. These statements constitute forward-looking statements within the meaning of Section 21E of the Secu
Slide 3: Agenda
Agenda Jack Clem • 2Q 2016 Highlights & Business Review CEO • Financial Review • 2016 Guidance • 2016 Operational Priorities Charles Herlinger • Q&A CFO 3
Slide 4: 2Q 2016 Highlights
2Q 2016 Highlights Y-o-Y 2Q16 2Q15 Comparison Total volume 292.4 260.5 12.2% (kmt) • Strong volume gains from (1) both Specialty and Rubber Adjusted EBITDA 57.7 56.0 3.2% • Organic volume growth a (EUR/Millions) solid 6.5% Adjusted EPS (1) • Third consecutive quarter of 0.35 0.34 €0.01 (EUR) YOY Adj
Slide 5: 2Q 2016 Highlights
2Q 2016 Highlights Specialty Carbon Black and Technical Rubber Carbon Black Grades Continues To Expand as a Percentage of Mix Volume By Volume Mix Adjusted EBITDA Producing Location 2Q16 2Q16 2Q16 Specialty Rubber Specialty Rubber Other 1% Africa 4% Carbon Carbon Carbon Carbon 100% China 5% Black Bl
Slide 6: Rubber Carbon Black Business
Rubber Carbon Black Business Continued Strong Volume Growth but Weaker Gross Profits Due to Impact of Raw Materials and Fixed Costs Volume increase reflects robust growth in Y-o-Y Europe on strong automotive market 2Q16 2Q15 Comparison Volume gain of 3.9% before 15.1 kmt Volume (kmt) 229.0 205.8 +11
Slide 7: Specialty Carbon Black Business
Specialty Carbon Black Business Record Volume and Profit Due to Strong Sales Execution Across All Regions and Successful Product Introduction Above market growth on strong sales and Y-o-Y 2Q16 2Q15 marketing execution against plan Comparison Volume (kmt) 63.4 54.7 +15.9% Strong polymer market and pr
Slide 8: 2Q 2016 Consolidated Operating Results
2Q 2016 Consolidated Operating Results (1) Quarterly Earnings Drive Adjusted EPS to Not to scale €M Contribution Margin Variance €0.35 per share 11.1 (2.4) (4.1) 1.6 121.4 Y-o-Y 2Q16 2Q15 Comparison 115.2 Volume (kmt) 292.4 260.5 +12.2% Revenue (EUR/Millions) 247.9 282.3 -12.2% 2Q15 Volume Different
Slide 9: 2016 YTD Cash Flow and 2Q 2016 Balance Sheet Highlights
2016 YTD Cash Flow and 2Q 2016 Balance Sheet Highlights Continued Strong Cash Generation Due to Cash Flow from Operations 2016 YTD Cash Flow Generation Balance Sheet Highlights €M As of (38.0) Not shown an additional 102.8 €20M voluntary debt In EUR/Millions June 30, 2016 repayment made in July 2016
Slide 10: 2016 Guidance and Cash Analysis
2016 Guidance and Cash Analysis Adjusting Guidance to Upper End of Range Based on Strong Performance Year to Date and View of 2016 Second Half 2016 Guidance Base Business Annual Cash Requirements Adjusted EBITDA: EUR 215 to 225 million (EUR/Millions) Maintenance Capex 30 Forecast assumptions: Mandat
Slide 11: 2016 And Ongoing Operational Priorities
2016 And Ongoing Operational Priorities Drive growth of Specialty and Technical Rubber Carbon Black grades – Continue building momentum in Specialty Carbon Black – Expand specialty and technical rubber grade mix at OECQ – Deepen penetration in underserved specialty and MRG markets Continue to addres
Slide 12: Appendix
Appendix
Slide 13: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€million unless otherwise stated) Three Months Ended June 30, 2015 2016 Revenue 283 248 Variable costs (1) -168 -127 Contribution Margin 115 121 Sales volume (in kmt) 260 292 Contribution Margin per Metric Ton 442
Slide 14: Historical Non-IFRS Metrics Reconciliation
Historical Non-IFRS Metrics Reconciliation Historical Non-IFRS Metrics Reconciliation (€million unless otherwise stated) Six Months Ended June 30, 2015 2016 Revenue 573 494 Variable costs (1) -348 -258 Contribution Margin 225 236 Sales volume (in kmt) 513 570 Contribution Margin per Metric Ton 438 4
Slide 15: Non-IFRS Metric Definitions
Non-IFRS Metric Definitions In this presentation we refer to Adjusted EBITDA, Contribution Margin and Adjusted EPS, which are financial measures that have not been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS
Slide 16: Investor Relations Contact Details
Investor Relations Contact Details: Diana Downey +1 832-445-3865 Investor-relations@orioncarbons.com
Orion Engineered Carbons — Q2 2016 Earnings Presentation on 6ix