Alzchem Group Ag · XETR:ACT
Alzchem — Q1 2018 Earnings Presentation
31 slides from Alzchem's earnings presentation, May 15, 2018
Slide 1: 2018 / Q1 AlzChem Group AG
2018 / Q1 AlzChem Group AG Ulli Seibel, CEO Andreas Niedermaier, CFO May 15, 2018
Slide 2: Disclaimer
DISCLAIMER Cautionary note regarding forward-looking statements By reviewing this information, you acknowledge that the information may be updated, changed or corrected in the discretion of AlzChem Group AG (hereinafter “the Company”) at any time and should not be relied on for any investment decisi
Slide 3: Agenda
AGENDA Q1 2018 – Analyst presentation EXECUTIVE SUMMARY Q1 2018 BUSINESS AND FINANCIAL DETAILS Q1 2018 BACK-UP ALZCHEM GROUP – Q1 – ANALYST PRESENTATION 3
Slide 4: Financial Highlights 2018 Strategic Targets
FINANCIAL HIGHLIGHTS 2018 Strategic and operational targets for 2018 achieved STRATEGIC Groundbreaking of new CreAMINO® production TARGETS Growth focus on specialty chemicals FINANCIAL Solid sales growth (+ 4 %) TARGETS Strong growth of EBITDA (+ 12 %) ALZCHEM GROUP – Q1 – ANALYST PRESENTATION 4
Slide 5: Q1 Financial Overview
Q1 FINANCIAL OVERVIEW Q1 result on track to full year guidance ALZCHEM GROUP [m€] Q1 / 2017 Q1 / 2018 yoy % SALES 91.2 94.5 3.7% EBITDA 1 13.4 15.1 12.3% EBITDA margin 1 14.7% 15.9% 1.2 pp COMMENTS • Solid growth in sales, driven by Specialty Chemicals • Significant growth in EBITDA overcompensated
Slide 6: Agenda
AGENDA Q1 2018 – Analyst presentation EXECUTIVE SUMMARY Q1 2018 BUSINESS AND FINANCIAL DETAILS Q1 2018 BACK-UP ALZCHEM GROUP – Q1 – ANALYST PRESENTATION 6
Slide 7: Segment Basics & Intermediates
SEGMENT BASICS & INTERMEDIATES AlzChem’s Basics & Intermediates segment comprises the production of intermediate products which are either used for the production of its Specialty Chemicals products or sold externally, e.g., desulfurization blends for the metallurgy industry (sold under the brand na
Slide 8: Segment Basics & Intermediates: financial overview
SEGMENT BASICS & INTERMEDIATES Segment analysis – financial overview SALES -4.2% SALES ANALYSIS 35.0 35.5 35.7 37.0 37.8 34.2 Q1/2017 29.3 30.3 - 3% - 1% - 1% vs. Q1/2018 Volume Price FX Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 COMMENTS • Decrease of sales, due to volume effec
Slide 9: Segment Specialty Chemicals
SEGMENT SPECIALTY CHEMICALS AlzChem’s Specialty Chemicals segment comprises the production and distribution of higher-value products, e.g., a nutritional feed additive for the feed industry (CreAMINO ® 1), a dietary supplement for the nutrition market (Creapure ®), highly purified guanidine hydrochl
Slide 10: Segment Specialty Chemicals: financial overview
SEGMENT SPECIALTY CHEMICALS Segment analysis – financial overview SALES +10.6% SALES ANALYSIS 53.9 49.7 48.7 47.9 Q1/2017 + 13% 41.2 45.1 44.1 vs. ± 0% - 3% 35.7 Volume Q1/2018 Price FX Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 COMMENTS • Significant sales growth across most pr
Slide 11: Segment Other & Holding
SEGMENT OTHER & HOLDING AlzChem’s Other & Holding segment comprises AlzChem’s holding and other activities which are not accounted for in the Specialty Chemicals or Basics & Intermediates segment. The majority of net sales in this segment are attributable to services including the operation of the C
Slide 12: Segment Other & Holding: financial overview
SEGMENT OTHER & HOLDING Segment analysis – financial overview SALES -4.8% SALES ANALYSIS 6.5 6.8 6.8 7.0 6.8 6.5 6.2 Q1/2017 - 5% 5.8 vs. ± 0% ± 0% Q1/2018 Volume Price FX Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2016 2016 2016 2017 2017 2017 2017 2018 COMMENTS • Sales volume follows customers site EBITDA business 2
Slide 13: Balance Sheet
BALANCE SHEET AlzChem Group ALZCHEM GROUP (IN MIO.) 31.12.2017 31.03.2018 Deviation ALZCHEM GROUP (IN MIO.) 31.12.2017 31.03.2018 Deviation Share capital 101,8 101,8 Intangible assets 1.0 0.9 -0.1 -6% Capital reserve Rev. Acquistion -88,1 -88,1 Tangible assets 115.1 117.1 1.9 2% Capital reserve 25,0
Slide 14: Pension Accounting
PENSION ACCOUNTING +1% 107.2 107.8 0.2 0.5 0.2 0.0 19.2 88.6 PENSION SERVICE COSTS NET INTEREST PENSION PENSION PENSION DEFFERED PENSION IN FINANCIAL PROVISION COSTS PAYMENTS REMEASURE- PROVISION TAX ASSETS LIABILITY STATEMENT 31 Dec, 2017 EBITDA MENTS 31 Mar, 2018 31 Mar, 2018 (PERSONELL FINANCIAL
Slide 15: Cash Flow
CASH FLOW Growth CAPEX is the basis for further growth COMMENTS • lower operating cash flow due to inventory increase and higher accounts receivables as of the reporting date • cash flow from financing activities reflects investing cash flow ALZCHEM GROUP – Q1 – ANALYST PRESENTATION 15
Slide 16: Outlook 2018
OUTLOOK 2018 Sales and earnings growth continue – Q1 confirms forecast SALES EBITDA COMMENTS 378.7 • sales growth will be driven primarily by specialty chemicals, mainly through 364.5 CreAMINO®, Creapure® and Custom 353.9 Synthesis 54.0 • Further reduced dependence on Basics & Intermediates 49.0 • E
Slide 17: Outlook 2018: Underlying assumptions
OUTLOOK 2018 Underlying assumptions Assumptions • No significant changes in market interest rates • Overall economic growth of 2.2% assumed - no economic turmoil (USA, China) • Stability in registration and energy legislation • US-Dollar 2018 Forecast: 1.20 € / US$ Factors to watch • High volatility
Slide 18: Financial Calendar
FINANCIAL CALENDAR Upcoming dates 2018 MAY 15 Q1 FIGURES 2018 (1-3) 2018 MAY 23 1st GENERAL MEETING 2018 2018 SEP 24 FINANCIALS REPORT SHORT FINANCIAL YEAR 2018 (1-6) 2018 NOV 12 Q1 FIGURES 2018 (7-9) 2018 NOV 22 2nd GENERAL MEETING 2018 2018 DEC 31 END OF FISCAL YEAR 2018 ALZCHEM GROUP – Q1 – ANALY
Slide 19: Worldwide Q1 2018
Mio € Mio € Mio € 1,520 EMPLOYEES ~95 SALES ~15 EBITDA ~0 OPERATING CASHFLOW ALZCHEM SPECIALTY PRODUCTS CHEMICALS ARE SOLD 57,0% BASICS & WORLDWIDE INTERMEDIATES SALES 36,2% Q1 2018 YTD INNOVATION SINCE 1908 OTHERS & HOLDING 6,9% All financial indicators as at 31.03.2018
Slide 20: Thank you for your attention!
CONTACT THANK YOU Investor Relations T +49 8621 86-2888 FOR YOUR ATTENTION! F +49 8621 86-502888 ir@alzchem.com WWW.ALZCHEM.COM
Slide 21: Agenda
AGENDA Q1 2018 – Analyst presentation EXECUTIVE SUMMARY Q1 2018 BUSINESS AND FINANCIAL DETAILS Q1 2018 BACK-UP ALZCHEM GROUP – Q1 – ANALYST PRESENTATION 21
Slide 22: Income Statement
INCOME STATEMENT AlzChem Group ALZCHEM GROUP (IN MIO.) 31.03.2017 31.03.2018 Deviation Revenue 91,2 94,5 3,4 4% Changes in inventories of finished goods and work in progress 1,1 5,3 4,3 393% Other income 2,9 2,6 -0,3 -11% Raw materials and consumables used -33,6 -40,9 -7,2 21% Employee benefits expe
Slide 23: Cash Flow
CASH FLOW AlzChem Group CASHFLOW [m€] Q1 / 2017 Q1 / 2018 yoy % OPERATING CASHFLOW 7.1 -0.1 -101.4% INVESTING CASHFLOW -3.8 -5.7 50.0% FREE CASHFLOW 3.4 -5.8 -270.6% RAISING / REPAYMENT FROM LOANS -1.4 -1.2 -14.3% PAYMENT / DEPOSIT FROM SHORT-TERM CREDIT LINES 10.9 7.2 -33.9% DIVIDENDS PAID -15.0 -1
Slide 24: Segment Overview by Quarter
SEGMENT OVERVIEW BY QUARTER AlzChem Group Q1 2017 Q1 2018 SALES [m€] Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 YTD yoy % YTD SPECIALTY CHEMICALS 48,7 47,8 45,1 44,1 53,9 48,7 53,9 10,6% BASICS & INTERMEDIATES 35,7 37,0 37,8 30,3 34,2 35,7 34,2 -4,2% OTHER & HOLDING 6,8 6,8 7,0
Slide 25: Executive Team
Executive Team Experienced management to deliver on the next phase KLAUS ENGLMAIER ULLI SEIBEL ANDREAS NIEDERMAIER CURRENT POSITION COO (since 2016) CEO (since 2009) CFO (since 2010) AGE 56 42 48 WITH ALZCHEM SINCE1 1988 2009 1999 DEGREE Mechanical Engineering Industrial Engineering Industrial Engin
Slide 26: AlzChem Group Locations
ALZCHEM GROUP LOCATIONS Production sites and sales companies TROSTBERG (GER) SUNDSVALL (SE) ATLANTA (USA) SHANGHAI (CN) SCHALCHEN (GER) HART a. d. ALZ (GER) SALES COMPANY PRODUCTION SITE ALZCHEM GROUP – Q1 – ANALYST PRESENTATION WALDKRAIBURG (GER) 26
Slide 27: Fully integrated business model ("verbund" system)
Fully integrated business model (“verbund” system) Flexibility to adapt production to meet changing end market needs THE “VERBUND”-SYSTEM • Fully integrated production circle • Output from one production step serves as base input for the next production step • Transport cost advantage as compared to
Slide 28: Introduction to Group Segments: Specialty Chemicals products
INTRODUCTION TO GROUP SEGMENTS Overview of Specialty Chemicals products KEY PRODUCTS DESCRIPTION END MARKETS (1) A nutritional additive for broilers and pigs Feed additive Premium brand for creatine monohydrate used as supplements in sports nutrition Dietary supplements Pet feed additive Alpha-lipoi
Slide 29: Introduction to Group Segments (cont'd): B&I products and O&H services
INTRODUCTION TO GROUP SEGMENTS (CONT’D) Overview of B&I products and O&H services KEY PRODUCTS DESCRIPTION END MARKETS Calcium carbide-based process chemical for hot metal desulfurization Steel industry INTERMEDIATES Airbags Gas generant for air bags, key production intermediate Agrochemicals BASICS
Slide 30: Stock: Share details
STOCK Share details SHAREHOLDER STRUCTURE % ISIN / WKN DE000A0AHT46 / A0AHT4 LIVIA Corporate Development SE 47.70 TICKER SYMBOL SFP1 HDI Vier CE GmbH 26.38 TYPE AND NUMBER OF 101.763.355 bearer shares SHARES with no par value (par value shares) Four two na GmbH 19.79 STOCK Regulierter Markt (Prime S
Slide 31: Q1 Sales by Region
Q1 SALES BY REGION ASIA/PACIFIC intensive marketing strategy pays back GERMANY EMEA ASIA / PACIFIC NORTH AMERICA SOUTH AMERICA Q1 / Q1 / Q1 / Q1 / Q1 / Q1 / Q1 / Q1 / Q1 / Q1 / yoy % yoy % yoy % yoy % yoy % 2017 2018 2017 2018 2017 2018 2017 2018 2017 2018 38.6 38.0 -1.6% 30.8 35.5 15.3% 7.8 8.5 9.0