SEMPERIT GROUP Q INVESTOR PRESENTATION. Frank Gumbinger, CFO 16 May 2017

Transcription

1 SEMPERIT GROUP Q INVESTOR PRESENTATION Frank Gumbinger, CFO 16 May

2 Q Highlights Significant positive one-off effects after closing of JV transaction on 15 March 2017 Net debt reduced by almost EUR 137m Increase of quantities sold in all segments Time lag for increase of selling prices Operational performance negatively impacted by still very volatile raw material price environment Outlook update provided on 10 April 2017 confirmed 2

3 Agenda Operational Development and Financial Performance (p. 4) Outlook (p. 15) Appendix (p. 18) 3

4 High raw material price volatility since November 2016 Price movements for important raw materials 1) became highly unpredictable 300 Styrene Butadiene Rubber ) in MYRc/kg 900 Natural Latex 60% MRB SBR Europe SBR Asia 1) Selected raw materials are shown for illustration purposes only 2) Index based on 01/01/2016 = 100 4

5 Overview Semperflex and Sempertrans Q vs. Q Semperflex -1% -1% +12% Expected market development for 2017 was revised over the last weeks from flat to an increase of 6% to 8% by major players However, it is difficult to judge whether this market growth rate is sustainable Semperflex fully booked Starting 2018, Semperflex will benefit when additional capacities in Odry, Czech Republic, are full on stream Sempertrans -90% -3% n/a Margins under pressure due to subdued market demand, sharply increased raw material prices and strong price competition Low demand for heavy belts for mining Satisfactory capacity utilisation with increased production of lighter belts Sales focus on industrial customers like ports and cement industry 5

6 Overview Semperform and Sempermed Q vs. Q Semperform -47% -33% +5% Profiles: successful market entry in the USA; strong demand for profiles for aluminium windows Handrails: market share gains despite falling market demand, strong performance in After-Sales-Market Sheeting: strong demand from customers Overall good capacity utilisation JV transaction completed Sempermed Further comparison not meaningful % Global glove market growing but all producers affected by margin squeeze Time lag from increasing raw material prices negatively effects profitability Optimisation programme effecting sales, operations and supply chain in place Satisfying capacity utilisation 6

7 Highlights of Joint Venture transaction Semperit Sri Trang Highlights Sempermed 100% 100% Sempermed USA, USA Sempermed Singapore, Singapore Sempermed Brazil, Brazil 100% 76% FormTech Engineering, Malaysia Siam Sempermed Corporation (SSC), name changed to Sri Trang Gloves (Thailand) Co. Ltd, Thailand 100% Closing was on 15 March 2017 USD 203.5m cash inflow before tax (USD 171m after tax), consisting of: USD 167.5m compensation payment to Semperit USD 51m of SSC dividend to Semperit 100% Shanghai Sempermed Glove Sales, China USD 15m dividend payment of SAC to JV partner Use of proceeds for Semperflex 100% Semperflex Shanghai, China 50% Semperflex Asia (SAC), Thailand 50% committed investments (CAPEX FY 2017 of EUR 80-90m) and to strengthen capital base by deleveraging of liabilities to banks Semperform 100% Shanghai Semperit Rubber & Plastic Products, China 7

8 Financial implications of Joint Venture transaction Positive financial effects in line with expectation Overview of one-off effects without JV transaction related costs Compensation payment JV transaction: EUR 157m compensation payment to Semperit, plus EUR 48m of SSC dividend to Semperit in EUR m ) In total a high Return on Investment JV transaction resulted in a positive one-off effect of total EUR 85m for EBITDA and EBIT, all recorded in Q1 2017: 78m recorded in Sempermed segment 7m recorded in Corporate segment Total positive one-off effect of EUR 65m for Earnings after tax 85m for EBITDA and EBIT 4m expense in financial result 16m effect in tax Value adjustments Tax accruals Brazil Deferred taxes EBITDA effect EBIT effect Earnings after tax effect ) One-off effects on EBITDA / EBIT in Q

9 Revenue increase mainly due to strong volume development Revenue by segment Q vs. Q in EUR m +4.5% Industrial Sector Medical Sector +4.9% +11.8% -3.1% +5.0% +3.9% Q Semperflex Sempertrans Semperform Sempermed Q % = % change 9

10 EBIT impacted by margin squeeze and positive one-off effects from JV transaction EBIT by segment Q vs. Q ) in EUR m >> +100% one-offs from JV transaction % 18.6 EBIT Q % = EBIT margin SSC -2.1 effect % -0.8% 6.6% n/a Semperflex Sempertrans Semperform Sempermed Corporate Industrial Sector Medical Sector Center 8.8% n/a EBIT Q Adj. for oneoffs from JV transaction <1% 1.5 Adj. EBIT Q ) 1) 2016 values restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform. 2) Adj. results excluding one-off effects 10

11 Q Financials / Profitability Overview Key Financials Semperit Group in EUR m Q Q % Revenue % EBITDA >+100.0% Adj. EBITDA 1) % EBIT >+100.0% Adj. EBIT 1) % Earnings after tax >+100.0% Adj. Earnings after tax 1)2) n/a Total one-off effects >+100.0% Profitability EBITDA margin 41.2% PP EBIT margin 37.7% PP Earnings per share in EUR 2) >+100.0% 1) Adj. results after one-off effects and without profit contribution from SSC in FY ) Attributable to the shareholders of Semperit AG Holding 11

12 CAPEX and Working Capital Overview CAPEX per Segment in EUR m % Semperflex Sempertrans Semperform Components of Working Capital in EUR m % Inventories Trade receivables Q Q Sempermed Other Trade payables 31 Dec March % 19.6% 17.6% = Trade Working Capital in % of LTM revenues 12

13 Net debt significantly reduced Balance sheet structure 31 March 2017 Financial profile as of 31 March 2017 Balance sheet total: EUR 971 m Cash and cash equivalents of EUR 243m Fixed assets Inventories Trade receivables Current assets Cash and cash equivalents Equity Liabilities from redeemable non-controlling interests Provisions incl. social capital Liabilities to banks Corporate Schuldschein loan Other liabilities incl. deferred taxes Financial liabilities: Corporate Schuldschein loan of EUR 279m Net debt of EUR 94m, down by EUR 137m since end of Dec Net debt / EBITDA of 0.64x, compared to 2.96x as of end of Dec Equity ratio of 39.2%, compared to 31.8% as of end od Dec Assets Equity & Liabilities 13

14 Agenda Operational Development and Financial Performance (p. 4) Outlook (p. 15) Appendix (p. 18) 14

15 Outlook 2017: Limited visibility / Transition phase started Extremely volatile raw materials price development limits visibility Adjusted 2017 EBIT significantly below adjusted 2016 result Review of Sempermed segment could lead to an impairment Measures to enhance profitability and review of IT strategy might cause one-off effects Focus on higher profitability, transition phase started At this stage, no guidance possible given limited visibility 15

16 Contact and financial calendar Investor Relations Semperit Group Stefan Marin, Head of Investor Relations Modecenterstrasse Vienna, Austria Financial Calendar /05/2017 Report on Q /05/2017 Annual General Meeting 30/05/2017 Ex-dividend day 01/06/2017 Dividend payment day 17/08/2017 Report on H /11/2017 Report on Q Disclaimer The information provided in this presentation does not constitute an offer for the sale of securities nor an invitation to submit an offer to purchase shares of Semperit AG Holding, but exclusively serves information purposes. Rounding of differences in the totalling of rounded amounts and percentages may arise from the automatic processing of data. The forecasts, plans and forward-looking statements contained in this presentation are based on the knowledge and information available and the assessments made at the time that this report was prepared. As is true of all forward-looking statements, these statements are subject to risk and uncertainties. As a result, the actual events may deviate significantly from these expectations. No liability whatsoever is assumed for the accuracy of projections or for the achievement of planned targets or for any other forward-looking statements. 16

17 Agenda Operational Development and Financial Performance (p. 4) Outlook (p. 15) Appendix (p. 18) 17

18 Group and Sectors: Q vs. Q Industrial Sector Medical Sector Semperit Group 1) In EUR m Q Q % Q Q % Q Q % Revenue % % % EBITDA % n.a >+100.0% EBITDA margin 12.3% 18.7% -6.5 PP 87.5% 7.0% PP 41.2% 12.2% PP Adj. EBITDA 3) n.a % Adj. EBITDA margin 3) % 4.6% -4.6 PP 4.2% 11.2% -7.0 PP EBIT % n.a >+100.0% EBIT margin 8.8% 15.2% -6.4 PP 84.5% 3.3% PP 37.7% 8.5% PP Adj. EBIT 3) n.a % Adj. EBIT margin 3) Adj. Earnings after tax 3) Earnings after Tax Earnings per share in EUR 2) Investments Employees % 3,648 3, % -3.1% 0.9% -4.0 PP % 3,004 3, % 1) Including Corporate Center (Holding, supporting functions, special projects): Costs of EUR 1.3m in Q (EUR 4.5m in Q1 2016) 2) Attributable to shareholders of Semperit AG Holding 3) Adj. results for one-off effects and without profit contribution from SSC in FY ,7% 7.5% -6.8 PP n.a >+100.0% >+100.0% % 6,801 6, % 18

19 Semperit Group per quarter Key Financials Semperit Group 1) in EUR m FY 2014 FY 2015 Q Q Q Q FY 2016 Q Revenue EBITDA EBITDA margin 11.9% 10.5% 12.2% 11.9% 9.3% 2.8% 9.1% 41.2% EBIT EBIT margin 7.4% 7.3% 8.5% 8.0% 5.0% -9.4% 3.2% 37.7% Financial result Earnings after tax Earnings per share in EUR 2) ) Values for 2014 and 2015 restated 2) Attributable to shareholders of Semperit AG Holding 19

20 Semperit Group and Sempermed segment per quarter adjusted figures Semperit Group adj. 1) in EUR m Q Q Q Q FY 2016 Q Revenue EBITDA adj EBITDA margin adj. 11.2% 11.7% 8.3% 3.5% 8.8% 4.2% EBIT adj EBIT margin adj. 7.5% 7.8% 4.0% -0.4% 4.8% 0.7% Sempermed adj. 1) in EUR m Q Q Q Q FY 2016 Q Revenue EBITDA adj EBITDA margin adj. 4.6% 1.6% -0.2% -2.0% 1.0% 0.0% EBIT adj EBIT margin adj. 0.9% -2.6% -4.6% -5.3% -2.9% -3.1% 1) Adj. results for one-off effects and without profit contribution from SSC in FY

21 Semperflex and Sempertrans per quarter Key Financials Semperflex 1) in EUR m FY 2014 FY 2015 Q Q Q Q FY 2016 FY 2016 Q adj. 2) adj. 2) Q Revenue EBITDA EBITDA margin 24.0% 22.7% 25.2% 26.0% 20.7% 22.7% 23.7% 24.2% 24.7% 21.8% EBIT EBIT margin 18.2% 18.8% 21.1% 22.0% 16.1% 18.5% 19.5% 19.3% 20.4% 18.0% Key Financials Sempertrans 1) in EUR m FY 2014 FY 2015 Q Q Q Q FY 2016 Q Revenue EBITDA EBITDA margin 14.3% 14.0% 13.6% 14.5% 9.2% 4.1% 10.7% 1.4% EBIT EBIT margin 11.5% 12.1% 11.3% 12.1% 6.3% 1.5% 8.2% -0.8% 1) Values for 2014 and 2015 restated 2) Values for 2016 restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform 21

22 Semperform and Sempermed per quarter Key Financials Semperform 1) in EUR m FY 2014 FY 2015 Q Q Q Q FY ) FY 2016 adj. 2) Q adj. 2) Q Revenue EBITDA EBITDA margin 14.5% 15.9% 15.6% 17.9% 16.4% 15.5% 16.4% 16.7% 17.2% 10.9% EBIT EBIT margin 9.9% 12.5% 11.2% 13.8% 11.9% 9.6% 11.8% 12.8% 13.1% 6.6% Key Financials Sempermed 1) in EUR m FY 2014 FY 2015 Q Q Q Q FY 2016 Q Revenue EBITDA EBITDA margin 8.8% 7.5% 7.0% 2.2% 2.1% -3.6% 1.9% 87.5% EBIT EBIT margin 4.6% 4.4% 3.3% -2.0% -2.3% -26.3% -6.9% 84.5% 1) Values for 2014 and 2015 restated 2) Values for 2016 restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform 22

23 Key figures Key performance figures in EUR m ) ) ) ) ) 2016 Adj ) Revenue EBITDA EBITDA margin 13.4% 17.5% 16.3% 13.4% 13.1% 14.6% 11.9% 10.5% 9.1% 8.8% EBIT EBIT margin 9.0% 11.8% 11.9% 9.8% 8.8% 9.7% 7.4% 7.3% 3.2% 4.8% Earnings after tax Earnings per share (EPS) 2), in EUR Gross cash flow Return on equity 12.9% 12.5% 12.9% 13.6% 11.4% 13.3% 8.6% 12.8% -2.7% Balance sheet key figures in EUR m ) ) ) ) Balance sheet total ,034.5 Equity 2) Equity ratio 60.1% 58.4% 59.2% 61.5% 49.3% 48.3% 53.7% 38.7% 31.8% Investments in tangible and intangible assets Employees (at balance sheet date) 7,064 6,649 7,019 8,025 9,577 10,276 6,888 7,053 6,974 1) Values for 2011 restated (see Annual Report 2012, Notes 2.18), values for 2010 not restated. 2) Attributable to the shareholders of Semperit AG Holding 3) Values for 2014 and 2015 restated 4) Adj. results for one-off effects and without profit contribution from SSC in FY