Smt Scharf Ag · XETR:S188
Smt Scharf — H1 2023 Earnings Presentation
45 slides from Smt Scharf's earnings presentation, August 2023
Slide 1: SMT Scharf AG Company Presentation
SMT Scharf AG Company Presentation August 2023 Company presentation Frühjahrskonferenz 2021 1 Jan. Mai 2021 2022
Slide 2: Niche specialist for transport and logistics systems in underground mining worldwide
Niche specialist for transport and logistics systems in underground mining worldwide + Leading supplier of transport and logistics systems for 2022 revenue and earnings growth above expectations – underground mining 2021 performance marked by positive impulses from + About 80 years experience in the
Slide 3: Management with proven expertise
Management with proven expertise Hans Joachim Theiß Wolfgang Embert + CEO since 2015 + Member of the Executive Board since 2015 + Over 20 years of experience as consultant, CEO and + Responsible for product development and design, board member of comparable medium-sized companies production, purchas
Slide 4: Where we are and what we do
Where we are and what we do Shaft hoisting system Automation / Energy Networking Rubber tryre Bunker Conveyor belt vehicles Electricity Compressed air Special machine construction Hydraulics Above ground Monorail Anchor Underground Anchor Expansion Anchor technology Mining: Rubber- Rubber- Cutting d
Slide 5: Specialized in the transport requirement of underground mining
Specialized in the transport requirement of underground mining Modular solutions for underground mining Railway systems Chairlifts Rubber-tyred vehicles After-Sales (Spare parts and service) Company Presentation 5 + August 2023
Slide 6: Modular product portfolio for customized transport solutions
Modular product portfolio for customized transport solutions Customized transport solutions (systems) Core competencies Customer demands Product and service range Company Presentation 6 + August 2023
Slide 7: Stable After Sales business thanks to long product life cycle
Stable After Sales business thanks to long product life cycle Typical product life cycle + After sales revenues constitute a major part of SMT’s business model + ~ 40 % of SMT‘s revenues (core business) are attributable to after sales services − Spare parts Maintenance/ New − Maintenance & repair se
Slide 8: Present worldwide: Developing of new sales regions and continuing further market penetration
Present worldwide: Developing of new sales regions and continuing further market penetration Company Presentation 8 + August 2023
Slide 9: Significant growth expected in the market for mining equipment
Significant growth expected in the market for mining equipment In US Dollar bn CAGR (2021-2027): 5% 90 70 2020 2027 Source: Global Market Insights 2021 Company Presentation 9 August 2023
Slide 10: Great potential in underground coal production
Great potential in underground coal production Global coal production, in mt Russia: 365.5 mt 30 % 49 % 21 % USA: 671.8 mt Poland: 130.9 mt Kazakhstan: 97.9 mt 40 % China: 3.242.5 mt 23 % 30 % 49 % 4% 54 % 21 % 1% 59 % 29 % 23 % India: 707.6 mt South Africa: 256.9 mt 19 % 67 % 8% 24 % 57 % Rest of t
Slide 11: Coal remains essential to meet global energy needs
Coal remains essential to meet global energy needs Total global energy supply (in %) Global coal consumption (in PJ) 5 2.5 9.4 2.2 23.2 26.8 30.9 Biofuels and waste Other Coal Oil Natural gas Nuclear Hydro Source: International Energy Agency, online under: https://www.iea.org/data-and- Source: IEA,
Slide 12: Hard Rock brings new regions into focus
Hard Rock brings new regions into focus Global ore production (e.g. gold, platinum, copper, nickel), in mt Russia: 215 mt Canada: 189 mt Ukraine: 100 mt China: 400 mt USA: 826 mt Mexico: 137 mt Indonesia: 210 mt Peru: 201 mt Brasil: 196 mt Australia: 387 mt South Africa: 236 mt Chile: 498 mt Source:
Slide 13: Global tunnel market offers long-term growth potential
Global tunnel market offers long-term growth potential With CAGR of 6.4% in 2018 to 2025, strong growth in Consistently increasing demand from end customers the market for tunnel boring machines expected Number of projects Market 8,386 volume in Mio. USD 5,190 2018 2025 2017 2025 Source: Allied Mark
Slide 14: Current strain on market environment vs. attractive long-term growth opportunities
Current strain on market environment vs. attractive long-term growth opportunities Challenges Opportunities Volatile market environment Far-reaching urban development against the backdrop of high and infrastructure expansion inflation and the Russia-Ukraine worldwide conflict Lower investment requir
Slide 15: Three-pillar strategy for further growth
Three-pillar strategy for further growth Vision: Expanded product range in underground logistics External growth Organic growth Operational excellence • “Buy & build” within the • Starting a “controlled offensive”: • Localization of value chain niche market • Expansion into new regions largely finis
Slide 16: In focus: Coal mining
In focus: Coal mining Lower-emission and automated transport systems for the coal market • Further development of transport and logistics solutions with a focus on the development of low-emission machines with flame-proof engines • Realisation of automated transport systems, so-called Smart Driving
Slide 17: In focus: Mineral mining
In focus: Mineral mining LEV (Light Electric Vehicle) & RTV (Rubber-tyred Vehicle): • Development, implementation and customised optimisation of zero-emission electric vehicles with a Scharf proprietary traction battery • Battery management system in modular design: modules (capacity of 7.2 KWh) can
Slide 18: In focus: Tunnel logistics
In focus: Tunnel logistics Diversification of the tunnel logistics business • Activities aim to expand tunnel logistics for major construction sites into a further mainstay • Focus on needs-based solutions based on SMT Scharf technology, which are becoming increasingly important • Government energy
Slide 19: In focus: Other industries
In focus: Other industries Valuable expertise for opportunities outside mining • The Other Industries segment essentially comprises the business activities of the subsidiary ser elektronik GmbH and also includes sales outside of underground mining. • Range of services: Development, project planning
Slide 20: Launch of a group-wide enterprise resource planning system
Launch of a group-wide enterprise resource planning system Implementation Further rollout in 2023 at Support for research and Improved transparency, Support for the of a new ERP ser elektronik and development activities communication and an increased appropriate planning, system at the subsequently
Slide 21: H1 2023: Significant decline in revenue and earnings due to difficult conditions in core markets
H1 2023: Significant decline in revenue and earnings due to difficult conditions in core markets and strong currency losses Revenue Operating performance Operating profit (EBIT) EUR 31.7 m EUR 41.0 m EUR -1.8 m (H1 2022: EUR 37.5 m) (H1 2022: EUR 47.1 m) (H1 2022: EUR 7.0 m) Net income Earnings per
Slide 22: H1 2023: SMT Scharf increases service & spare parts business significantly
H1 2023: SMT Scharf increases service & spare parts business significantly Revenue by business type Company Presentation 22 August 2023
Slide 23: SMT Scharf Group with solid financial situation
SMT Scharf Group with solid financial situation EUR million Assets 127.0 127.0 Equity and liabilities 36.1 28.4 % Non-current assets 81.9 Trade receivables/ 33.6 % 64.5 % Equity 42.6 Other current assets Non-current provision 8.8 6.9 % and liabilities Inventories 30.8 % 39.1 36.3 28.6 % Current prov
Slide 24: Forecast 2023 adjusted on the basis of half-year results
Forecast 2023 adjusted on the basis of half-year results / catch-up potential in H2 2023 TEUR 100,000 93,713 85,870 80,000 75,395 75,000 60,000 50,180 40,000 20,000 14,321 6,822 11,239 -8,310 -3,300 0 -20,000 2019 2020 2021 2022 2023e 24 Company Presentation 24 + August 2023
Slide 25: High order backlog as solid basis for the second half of 2023
High order backlog as solid basis for the second half of 2023 Development of the order backlog EUR million Company Presentation 25 August 2023
Slide 26: Russia: Business activity in accordance with the applicable sanctions guidelines
Russia: Business activity in accordance with the applicable sanctions guidelines − Extension of EU sanctions: No more delivery of complete machines to Russia possible, also delivery of spare parts only possible to a very limited extent − Significant year-on-year decline in revenue to EUR 6.8 million
Slide 27: The share
The share Share price Key share information Securities Code Number A3DRAE (WKN): ISIN / Stock exchange symbol: S4A / DE000A3DRAE2 m:access of Munich Stock Exchange (Regulated Unofficial Segment: Market) Designated Sponsor: Pareto Securities AS Share capital: EUR 5,521,456.00 Number of shares: 5,521,
Slide 28: Core shareholders consider selling their stake
Core shareholders consider selling their stake M&A ▪ Core shareholders Shareholder Value Beteiligungen AG, Share Value Stiftung and Shareholder Value Management AG are conducting a strategic review of their investment in SMT Scharf AG. ▪ Background: Core shareholders believe that other anchor shareh
Slide 29: Thank you for your attention
Thank you for your attention Glück Auf! Company Presentation 29 August 2023
Slide 30: Appendix / Further Information
Appendix / Further Information Company Presentation 30 + August 2023
Slide 31: Key ESG fields of activity identified for SMT Scharf
Key ESG fields of activity identified for SMT Scharf Materiality Matrix A document analysis was carried out to identify the fields of action Very high materiality 1 Climate Change 7 Diversity 13 Sustainable procurement High materiality 2 High Product quality 3 Energy Efficiency 4 Waste Management 5
Slide 32: SMT Scharf: Initiatives in the individual areas of responsibility
SMT Scharf: Initiatives in the individual areas of responsibility Economic Environmental Social Governance responsibility responsibility responsibility ▪ Long-term value creation ▪ Climate change ▪ Diversity ▪ Anti-corruption ▪ Profitability ▪ Waste management ▪ Occupational health and ▪ Compliance
Slide 33: SMT Scharf meets all market demands
SMT Scharf meets all market demands Global market for transport solutions in underground mining Size International footprint Cyclicality Innovation pressure + Thousands of underground + Deposits all over the world + High commodity prices, high + Increase in efficiency („larger, mines mining investme
Slide 34: Customized solutions for underground mining
Customized solutions for underground mining Monorails EMTS - Electrical Monorail Transport System Fresh Air Monorail Floor-bound railways Tape roller crane / ultra short suspension Shunting trolleys RKD Scharf LEV Chairlifts Company Presentation 34 + August 2023
Slide 35: Our offer: Combine products to a transport system
Our offer: Combine products to a transport system Company Presentation 35 + August 2023
Slide 36: Rubber-tyred vehicles expand product portfolio
Rubber-tyred vehicles expand product portfolio Rubber-tyred vehicles and equipment for underground mining CATEGORY FUEL OVER 60 TYPES OF VEHICLES BATTERY 8 TYPES OF VEHICLES Drill & Bolt 13 Types Drillmaster Series 100 to 300 6 Types Boltmaster Series 100 to 200 3 Types Drillmaster Blockhole 17D, 25
Slide 37: Significant revenue and earnings growth in 2022
Significant revenue and earnings growth in 2022 Revenue Operating performance Operating profit (EBIT) EUR 93.7 m EUR 95.9 m EUR 14.3 m (2021: EUR 85.9 m) (2021: EUR 85.3 m) (2021: EUR 11.2 m) Net income Earnings per share Equity ratio EUR 14.6 m EUR 2.75 66.4% (2021: EUR 12.5 m) (2021: 2.46 EUR) (20
Slide 38: New equipment business contributes significantly to revenue growth
New equipment business contributes significantly to revenue growth Revenue by business type Company Presentation 38 August 2023
Slide 39: Strong revenue growth in the Tunnel logistics segment
Strong revenue growth in the Tunnel logistics segment / Coal mining remains the most important segment Revenue by segment Company Presentation 39 August 2023
Slide 40: Rail systems business contributes significantly to total revenue
Rail systems business contributes significantly to total revenue Revenue by product Company Presentation 40 August 2023
Slide 41: Mining markets China and Russia with largest revenue shares
Mining markets China and Russia with largest revenue shares Revenue by region Company Presentation 41 August 2023
Slide 42: Coal remains the segment with the largest share of revenue
Coal remains the segment with the largest share of revenue Revenue by segment Company Presentation 42 August 2023
Slide 43: Other products with strong revenue growth
Other products with strong revenue growth Revenue by product Company Presentation 43 August 2023
Slide 44: Mining market Poland with largest revenue share
Mining market Poland with largest revenue share Revenue by region Company Presentation 44 August 2023
Slide 45: What sets us apart
What sets us apart Technological leader with Robust medium-term high market share growth potential Capital strength and profitable growth Well positioned in international technology Successful implementation and sales markets of strategic measures Company Presentation 45 + August 2023