Slide 1: Q1 2018 Earnings Presentation
Q1 2018 Earnings Presentation Rainer Beaujean, Speaker of the Management Board and CFO April 12, 2018
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 1. Q1 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix 12/4/18 Q1 2018 Earnings 3
Slide 4: Q1 2018 results in line with expectations; systematic execution on our growth levers
Q1 2018 results in line with expectations; business and market trends unchanged; systematic execution on our growth levers Strict monitoring of all business and macro drivers Q1 2018 Financials Markets & Macro Operations Revenues and profitability developments USD / EUR translation impact remains a
Slide 5: Expected decline in tooling revenues and unfavourable comps in US PPG business
Expected decline in tooling revenues and unfavourable comps in US PPG business weight on top line development in Q1 2018 FXN1 REVENUES IN Q1 18 VS Q1 17, IN EUR M GROUP +0.4% Plastics & Devices Primary Packaging Glass + 0.5% 0.0% 298.0 299.2 161.9 162.7 136.5 136.5 2017 2018 2017 2018 2017 2018 P&D:
Slide 6: Lower utilisation of installed capacity in the US PPG Business
Lower utilisation of installed capacity in the US PPG Business as main driver of the FXN decrease in adjusted EBITDA YoY FXN1 ADJUSTED EBITDA IN Q1 18 VS Q1 17, IN EUR M GROUP -7.0% Plastics & Devices Primary Packaging Glass + 0.2% 59.0 54.9 -14.9% 39.5 39.6 24.2 20.6 2017 2018 2017 2018 2017 2018 P
Slide 7: FX-Impact of EUR 13.6m on Q1 2018 Revenues and EUR 3.2m on Adjusted EBITDA
FX-Impact of EUR 13.6m on Q1 2018 Revenues and EUR 3.2m on Adjusted EBITDA Group Q1 2018 review EUR M Q1 2018 Q1 2017 Change in % Revenues 290.4 302.8 -4.1 - of which FX effect -8 8 4.8 N.A. Adj. EBITDA 52.6 59.9 -12.1 - of which FX effect -2.3 0.9 N.A. - Adj. EBITDA margin % 18.1 19.8 -170bps P&D Q
Slide 8: Executing on the deployment of our growth levers
Executing on the deployment of our growth levers Q1 2018 Update – Expand strategically to build – Expand into new new position and gain critical markets mass through products, – Triveni call option Regional Products & customization and innovation exercised as of April Expansion Innovation – Small ba
Slide 9: Agenda
Agenda 1. Q1 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix 12/4/18 Q1 2018 Earnings 9
Slide 10: USD 52.9m one-time deferred tax benefit recorded in Q1 2018
USD 52.9m one-time deferred tax benefit recorded in Q1 2018, as previously announced … What we said in February 2018 ESTIMATED IMPLICATIONS ON MODELLING FOR FY 2018 und TOPIC STATUS QUO FY 2019 Revaluation of US tax reform, the Tax Cuts and deferred tax assets Jobs Act passed on December 22, Expecti
Slide 11: Adjusted EPS after non-controlling interests amounting to EUR 1.85 in Q1 2018
… Leading to an Adjusted EPS after non-controlling interests amounting to EUR 1.85 in Q1 2018 EUR M Q1 2018 Q1 2017 CHANGE in EUR Adjusted EBITDA 52.6 59.9 -7.3 Depreciation -23.2 -22.7 -0.5 Adjusted EBITA 29.4 37.2 -7.8 Total one-off items -4.4 -0.1 -4.3 Amortization of fair value adjustments -7.7
Slide 12: Seasonal increase in inventories drives working capital increase in Q1 2018
Seasonal increase in inventories and decrease in trade payables drive working capital increase in Q1 2018 EUR M FEB 28, 2018 NOV 30, 2017 FEB 28, 2017 CHANGE IN %2 Total assets 2,388.5 2,444.1 2,373.7 - 2.3% Equity 823.9 789.5 789.9 +4.4% Equity ratio 34.5% 32.3% 33.3% +220bps Net working capital 22
Slide 13: Agenda
Agenda 1. Q1 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix 12/4/18 Q1 2018 Earnings 13
Slide 14: 2018 Outlook maintained
2018 Outlook maintained 2018 GUIDANCE REPORTED FY 2017 EXPECTED FY 2018 RANGE Revenues EUR 1,348.3m EUR 1.348bn to approx. EUR 1.4bn (FXN1) Adj. EBITDA EUR 307.2m2 EUR 305m to EUR 315m (FXN1) Capex (% FXN sales) 8.0% ~8% (FXN1,3) WIDER FINANCIAL REPORTED FY 2017 POLICY FRAMEWORK Adjusted EBITDA leve
Slide 15: No deviations to internal budget at this stage, awaiting Q2
No deviations to internal budget at this stage, awaiting Q2 to refine H2 2018 trading expectations Q1 2018 came in as planned, and we have not observed any large deviations to our internal expectations as this stage Phasing of growth to be still skewed towards H2 2018 Systematically reviewing growth
Slide 16: Agenda
Agenda 1. Q1 2018 Highlights 2. Financial Review 3. Outlook 4. Appendix 12/4/18 Q1 2018 Earnings 16
Slide 17: Expected decline in tooling revenues and unfavourable comps in US PPG business
Expected decline in tooling revenues and unfavourable comps in US PPG business weight on top line development in Q1 2018 REVENUES Q1 18 VS Q1 17 (IN EUR M) YoY reported: -4.1% 310 YoY FXN: + 0.4% 0.8 - 0.4 300 - 4.8 302.8 299.2 298.0 -8.8 290 290.4 280 270 Group Currency Impact Group P&D PPG Interna
Slide 18: Technical guidance: EPS
Technical guidance: EPS ESTIMATED IMPLICATIONS ON MODELLING TOPIC STATUS QUO + FOR FY 2018 and FY 2019 US tax reform, the Tax Cuts and Jobs Positive one-off effect for the financial year 2018 Act passed on December 22, 2017 of USD 52.9m recognized in the first quarter of Revaluation of Triggered a.o
Slide 19: Development of net working capital
Development of net working capital FEB 28, 2018 NOV 30, 2017 FEB 28, 2017 EUR M EUR M EUR M Inventories 168.0 148.4 171.1 thereof prepayments made 2.7 2.1 3.2 Trade receivables 221.3 242.7 215.6 Trade payables 130.6 176.3 128.0 Payments received 34.7 29.1 36.6 Net working capital 224.0 185.7 222.1 A
Slide 20: Development of inventories
Development of inventories FEB 28, 2018 NOV 30, 2017 FEB 28, 2017 EUR M EUR M EUR M Raw materials, consumables and supplies 54.2 49.9 51.4 Work in progress 16.6 15.0 19.3 Finished goods and merchandise 94.5 81.4 97.2 Prepayments made 2.7 2.1 3.2 Inventories 168.0 148.4 171.1 12/4/18 Q1 2018 Earnings
Slide 21: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0.85 1.05 1.102 Dividend yield 1.5% – 1.8% 1.9% 1.7% 1.4% 1.7% 1.2% 1.5% 1.6% Payout ratio 22% – 26% 25% 25%1 23% 26% 25% 25% 27% Share price high 38.20 27.05 29.85 36.62 41.34 50
Slide 22: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions ABBREVIATIONS AND DEFINITIONS Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, Adj. EBITDA restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 23: Financial calendar and contact details
Financial calendar and contact details FINANCIAL CALENDAR April 25, 2018 Annual General Meeting 2018 July 12, 2018 Interim Report 2nd Quarter 2018 October 11, 2018 Interim Report 3rd Quarter 2018 CONTACT DETAILS Name Corporate Investor Relations Phone +49 211 6181 257 Fax +49 211 6181 121 E-mail Ger
Slide 24: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.