Gerresheimer Ag · XETR:GXI
Gerresheimer — Q1 2009 Earnings Presentation
24 slides from Gerresheimer's earnings presentation, Apr 2, 2009
Slide 1: Announcement of Q1 2009 Results
Announcement of Q1 2009 Results Conference Call April 2, 2009 | 3:00 p.m. CEST Dr. Axel Herberg, CEO Hans-Jürgen Wiecha, CFO 0
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or
Slide 3: Agenda
Agenda Key Facts Q1 2009 Dr. Axel Herberg, CEO Financial Overview Q1 2009 Hans-Jürgen Wiecha, CFO Guidance FY 2009 Dr. Axel Herberg, CEO 2
Slide 4: Q1 2009 in line with our expectations: Growth in core business despite impact of economic environment
Q1 2009 in line with our expectations: Growth in core business despite impact of economic environment Group sales of EUR 237.3m on prior year’s level (EUR 239.1m) Core business sales grew by 2.8% to EUR 228.7m Sales of non core business activities (TPS) cut in half to EUR 8.6m Group adjusted EBITDA
Slide 5: Our business and our markets: A robust combination
Our business and our markets: A robust combination Markets Further consolidation of the pharma industry to be expected Pharma markets remain robust Inventory destocking in line with expectations Market for high-end cosmetics soft Gerresheimer business Core business proves defensiveness and stability
Slide 6: Agenda
Agenda Key Facts Q1 2009 Dr. Axel Herberg, CEO Financial Overview Q1 2009 Hans-Jürgen Wiecha, CFO Guidance FY 2009 Dr. Axel Herberg, CEO 5
Slide 7: Group: Solid business development in a challenging environment
Group: Solid business development in a challenging environment Net sales and adjusted EBITDA including TPS EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 16.1% rate: -3.6% Q1 2008: 18.0% -0.8% Stable underlying demand for 239.1 pharma & life science products, 237.3 inventor
Slide 8: Core business proves resilience
Core business proves resilience Net sales and adjusted EBITDA: Core business (excluding TPS) EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 17.1% rate: -0.4% Q1 2008: N/A Core business proves its strength +2.8% 228.7 222.5 Sales growth despite inventory destocking and softe
Slide 9: Tubular Glass: Growth despite destocking effects
Tubular Glass: Growth despite destocking effects Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 21.8% rate: 1.0% Q1 2008: 24.0% Inventory reduction of some +6.1% customers for certain product 69.7 segments (vials, ampules) 65.7 RTF syringe capa
Slide 10: Plastic Systems: Sales decrease in TPS detracts from healthy development of core business
Plastic Systems: Sales decrease in TPS detracts from healthy development of core business Net sales and adjusted EBITDA including TPS EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 16.1% rate: -4.7% Q1 2008: 18.3% Solid performance of core business -6.0% 77.2 72.6 Sales in
Slide 11: Plastic Systems: Core business with solid performance
Plastic Systems: Core business with solid performance Net sales and adjusted EBITDA ex TPS EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 19.4% rate: 7.4% Q1 2008: N/A Medical Plastic Systems remains +5.6% growth driver 60.6 64.0 Insulin pen production successfully started
Slide 12: Moulded Glass: High-end cosmetics with predicted decline
Moulded Glass: High-end cosmetics with predicted decline Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 18.1% rate: -3.9% Q1 2008: 20.6% -1.3% Soft sales in high-end cosmetics reflect current weakness of industry 77.6 76.6 Pharma market remains
Slide 13: Life Science Research: Slower sales caused by inventory management
Life Science Research: Slower sales caused by inventory management Net sales and adjusted EBITDA EUR m Net sales growth at Adj. EBITDA margin: constant exchange Q1 2009: 10.3% rate: -9.7% Q1 2008: 11.1% Lower sales level reflects temporary inventory management by customers Adjusted EBITDA margin sta
Slide 14: Q1 2009 fully in line with our expectations
Q1 2009 fully in line with our expectations Q1 2009: Dec. 1, 2008 – Q1 2008: Dec. 1, 2007 – EUR m Feb. 28, 2009 Feb. 28, 2008 Adjusted EBITDA1 38.3 43.0 -10.9% EBITDA 37.3 41.2 -9.5% Profit from operations 9.2 14.9 -38.3% Net income before taxes -1.5 4.8 - Net income -1.1 2.5 - Adjusted net income2
Slide 15: Financial setup remains healthy
Financial setup remains healthy FY 2008 as of Q1 2009 as of Q1 2008 as of EUR m Nov 30, 2008 Feb 28, 2009 Feb 29, 2008 Equity 479.1 471.1 500.6 Equity ratio in % 31.1 32.4 33.9 Net Working Capital1 163.0 203.7 201.2 in % of LTM net sales 15.4 19.2 20.2 therein trade payables 140.5 95.9 94.9 Net fina
Slide 16: Secured long-term financing structure; liquidity reserves through EUR 175m committed revolver
Secured long-term financing structure; liquidity reserves through EUR 175m committed revolver Debt/cash positions in EUR m1 Interest rate Due by Net financial debt 460.3 Bond 126.0 7.9%; Fixed coupon 2015 Long-term bank debt 257.6 5.7%; Hedged 100% 2012 / 2013 until Sep 2010 Revolving bank debt 55bp
Slide 17: Agenda
Agenda Key Facts Q1 2009 Dr. Axel Herberg, CEO Financial Overview Q1 2009 Hans-Jürgen Wiecha, CFO Guidance FY 2009 Dr. Axel Herberg, CEO 16
Slide 18: Confirmation of Guidance FY 2009: Core activities (excl. Technical Plastic Systems)
Confirmation of Guidance FY 2009: Core activities (excl. Technical Plastic Systems) Growth of 6-7% as reported1 Net Sales Growth of 3-4% at constant FX rate 19.0 - 19.2% Adj. EBITDA margin Expected investments of Capex EUR 100m - 105m Ongoing market observation for value- accretive M&A transactions
Slide 19: Financial Calendar
Financial Calendar April 29, 2009 Annual General Meeting July 15, 2009 Interim Report 2nd Quarter 2009 October 15, 2009 Interim Report 3rd Quarter 2009 February 10, 2010 Annual Report 2009 18
Slide 20: Investor Relations Contact Details
Investor Relations Contact Details Phone +49 211 6181-257 Fax +49 211 6181-121 E-mail gerresheimer.ir@gerresheimer.com IR website www.gerresheimer.com/ir 19
Slide 21: Appendix
GERRESHEIMER Appendix
Slide 22: Reiteration of assumptions for sales and adjusted EBITDA margin guidance (excl. Technical Plastic Systems)
Reiteration of assumptions for sales and adjusted EBITDA margin guidance (excl. Technical Plastic Systems) Sales growth of 6-7% Guidance includes the following effects (vs. FY 2008): Exchange rate: EUR 1.00 = USD 1.48 actual FY 2008 Exchange rate: EUR 1.00 = USD 1.30 budget FY 2009 +3 percentage poi
Slide 23: Technical Plastic Systems FY 2009: Reiteration of assumptions
Technical Plastic Systems FY 2009: Reiteration of assumptions Sales EUR 35-45m (FY 2008: EUR 63m) Adjusted EBITDA EUR 0 to -3m (FY 2008: mid single digit EBITDA margin) Cash Flow Neutral in 2009 22
Slide 24: Reconciliation Q1: Adjusted EBITDA to net income after minorities
Reconciliation Q1: Adjusted EBITDA to net income after minorities in EUR m Q1 2009 Q1 2008 Adjusted EBITDA 38.3 43.0 Restructuring expenses 0.7 0.5 Exceptional income/ expense 0.3 1.3 EBITDA 37.3 41.2 Fair value amortization 9.6 8.8 Depreciation 18.5 17.5 Profit from operations 9.2 14.9 Finance cost