COMING UP Key Financials for the first half of 2018 Friday, August 10, 2018 at 10:00 a.m. (CET) presented by Dr Thomas Kneip, CFO
CENTROTEC Sustainable AG First Half Results 2018 August 10, 2018 CENTROTEC The European Energy-Saving Company
AGENDA Market Overview Key Financial Results H1 2018 Operational Highlights Outlook
European heating market overall with good growth rates in 2018; but only slow growth in Germany H1 MARKET GROWTH RATE OF HEAT GENERATING UNITS [in percent compared to previous year] Germany 1,6% France 11,4% Italy 10,6% Netherlands 0,0% Spain 17,2% United Kingdom 6,7% Source: EHI 2018 Approx. 1/3rd of Centrotec s revenues are linked to the German heating market 4
AGENDA Market Overview Key Financial Results H1 2018 Operational Highlights Outlook
Further stabilization in German heating business; international growth REVENUE DEVELOPMENT Gas Flue Systems by Segment in EUR million Med. Tech. & Eng. Plastics 273.8 25.8 57.1 4.6% 286.4 26.2 62.8 +1.5% +10.0% Drivers of Revenue Development + Continued growth in many international markets + Gas Flue Systems with good development in almost all product groups o Stabilized sales in German heating business Decline in CHP system sales due to performance peak last year, driven by regulatory changes Climate Systems 190.9 197.4 +3.4% Drivers of Regional Sales + Good development in Spain, Netherlands, Belgium, US etc. H1 2017 H1 2018 o Stabilized development in German heating market o Continued growth with slower momentum in China 6
Further positive impact of internationalization strategy INTERNATIONAL SALES Growth of international sales 2017 in percent 5.9 8.5 11.6 7.2 Situation Focused activities in international markets, like Italy, Spain, Eastern Europe and China show success Adjusted products and sales strategies for the identified target markets Climate Systems Gas Flue Systems MT & EP Group Slight growth also in Germany achieved Sales by Region in percent of total revenue 57.8% 57.5% 56.9% 54.8% 53.0% 51.1% Germany 42.2% 42.5% 43.1% 45.2% 47.0% 48.9% World without Germany 2013 2014 2015 2016 2017 H1 2018 7
EBIT in line with expectations EBIT DEVELOPMENT by Segment [in EUR million] Drivers of EBIT Development Climate Systems 5.8 20.5% 7.0 + Sales growth Increasing costs (personnel & material) Med. Tech. & Eng. Plastics 2.2 1.8-16.9% Gas Flue Systems + Further growth in most markets Higher material prices in some areas Gas Flue Systems 4.3 5.0 +15.6% Med. Tech. & Eng. Plastics o Slow growth of sales Higher costs in different areas Climate Systems -0.7 0.2 H1 2017 H1 2018 8
Lower financial result linked to lower performance of financial investments and interest expenses of promissory note EAT TRANSITION H1 2017 VS. H1 2018 [in EUR million] EAT (H1 2017) 2.8 Explanation Δ EBITDA 1.0 Increased EBITDA Δ Depreciation 0.2 Depreciations slightly below last years level Δ Financial Result 3.5 Interest expenses linked to promissory note Negative result of financial investments (YTD) Δ Tax 0.6 Tax decrease due to lower earnings; tax rate above last years level EAT (H1 2018) 1.1 9
Investments above previous year s level INVESTMENTS BY SEGMENT Investments [in EUR] +20% 13.1 Key Investments Climate Systems: New product developments 10.9 2.9 +14% Digitalization of sales support Med. Tech. & Eng. Plastics Gas Flue Systems 2.5 2.3 2.3 +/-0% Purchase of land for production expansion in Croatia Gas Flue Systems: Capacity expansion ERP system update Climate Systems 6.0 7.8 +29% Med. Tech. & Eng. Plastics Update of production equipment at all sites Building expansion of Danish site H1 2017 H1 2018 Further development of production infrastructure at German sites 10
Growing international sales drives higher net working capital level; share buy back reduced net financial position KEY BALANCE SHEET AND CASH FLOW RATIOS -0.01 Net Financial Position / Equity 0.05 0.03-0.01-0.03-0.04 0.01 Equity Ratio [percent] 48.3 48.7 50.0 49.1 47.8 46.2 50.2 49.7 48.5 44.4 43.9-0.10-0.10-0.10-0.10 41.7-0.13 39.3-0.16 2/15 3/15 4/15 1/16 2/16 3/16 4/16 1/17 2/17 3/17 4/17 1/18 2/18 2/15 3/15 4/15 1/16 2/16 3/16 4/16 1/17 2/17 3/17 4/17 1/18 2/18 Net Working Capital [EUR million] Operating Cash Flow (YTD) [EUR million] 67.2 71.2 75.5 79.6 69.5 75.4 81.9 70.3 79.5 85.3 48.8 41.5 31.6 62.1 51.5 58.0 9.3 18.7 4.5 5.2 2/15 3/15 4/15 1/16 2/16 3/16 4/16 1/17 2/17 3/17 4/17 1/18 2/18 2/15 3/15 4/15-13.2 1/16-7.9 2/16 3/16-3.9-2.8-2.7 4/16 1/17 2/17 3/17 4/17 1/18-2.2 11 2/18
Poor share price development in 2018 SHARE PRICE SINCE BEGINNING OF 2018 120% 110% Share price at the beginning of 2018: Share price after completion of share buy back program June 14th 13.86 EUR EUR 15.29 SDAX 100% 90% CENTROTEC Share price August 8th, 2018 12.72 EUR 80% Januar 18 Februar 18 März 18 April 18 Mai 18 Juni 18 Juli 18 August 18 *Quelle: Bloomberg, last share price from August 8, 2018 12
AGENDA Market Overview Key Financial Results H1 2018 Operational Highlights Outlook
Program successfully completed SHARE BUY BACK PROGRAM Rationale for Buy-Back Program High level of liquidity, long-term secured Recent acquisition bids unsuccessful; currently only smaller opportunities in the pipeline Low stock valuation level Key Parameters Public Tender Offer Fixed price at 14,40 EUR per share Up to 1,764,652 shares (9,79%) Acceptance Period May 22 to June 12 Result 1,764,470 shares (9.79%) bought back (25.4 Mio. EUR) Shares are in possession of CENTROTEC and will probably be redeemed in H2 Remaining number of outstanding shares (after redemption): 16,256,453 14
The management board has been extended to three members, as of April 1, 2018 ORGANISATION Existing board members New board member Background Engineer, 51 years old Mr. Pawlik has led the Gas Flue Systems segment since 2014 Extensive experience in Supply Chain, Quality, Operations Management Dr. Thomas Kneip Dr. Christoph Traxler Bernhard Pawlik Automotive and Photovoltaics background Climate Systems MT & EP Gas Flue Systems (Wolf) Climate Systems (Brink) Finance Operations 15
Change in supervisory board, as of July 1, 2018 ORGANISATION Existing board member New board member Existing board member Background Entrepreneur, 54 years old Mr Andreas Freiherr von Maltzan appointed to supervisory board member until next annual meeting Guido A. Krass [Chairman] Andreas Freiherr von Maltzan Christian C. Pochtler He replaced Dr Bernhard Heiss, who resigned with effect from June 30, 2018 on health grounds Mr von Maltzan is a digital entrepreneur, founder and director of Cynobia GmbH with specific experience in big data, process mining, social media marketing and community building 16
AGENDA Market Overview Key Financial Results H1 2018 Operational Highlights Outlook
Further growth expected in 2018; stabilization of margin OUTLOOK Med. Tech. & Eng. Plastics Gas Flue Systems Climate Systems Med. Tech. & Eng. Plastics Gas Flue Systems Revenue [in million EUR] 594.2 49.5 121.1 423.6 EBIT [in million EUR] 29.3 11.3 600 to 620 30 to 32 Rationale + Continued international growth + Strong traction in AHU and ventilation business o Stabilized development in the German heating business, based on the sales stimulation program launched in H2 2017 Higher material costs 3.8 H1 Result fully in line with guidance Climate Systems 14.2 2017 2018 Guidance 18
Financial calendar 2018 FINANCIALS August 10 Publication of Q2/2018 November 14 Publication of Q3/2018 November 26-28 Deutsches Eigenkapitalforum 2018 19
Thank you! This presentation contains forward-looking statements based on current expectations, assumptions and forecasts of the executive board and on currently available information. Various known and unknown risks, unpredictable developments, changes in the economic and political environment and other presently not yet identifiable effects could result in the fact that the actual future results, financial situation or the outlook for the company differ from the estimates given here. We are not obligated to update the forwardlooking statements made in this presentation unless there is a legal obligation. CENTROTEC Sustainable AG Am Patbergschen Dorn 9 59929 Brilon/Germany www.centrotec.de Tel: +49 2961 96631-0 Fax: +49 2961 96631-100 ir@centrotec.de WKN 540750 ISIN DE 000 54 07506 20