schouw & co. h1 2015 · investor presentation august 2015 ceo jens bjerg sØrensen ir kasper...

Schouw & Co.2015 H1Investor presentation

AUGUST 2015

CEO JENS BJERG SØRENSENIR KASPER OKKELS

2015 H1 at a glance: Continued progress

revenue

5.9bnGrowth 16% // 2014H1: 5.1bnImpact from volatile raw material prices

EBIT

303m26% growth from 2014H1Positive effect from forex and raw materials

cash flow from operations

224m2014H1: 243mUnsatisfactory increase in NWC in BioMar

NIBD/EBITDA

0.1xSmall increase in NIBD y/yVery strong and solid financial position

profit from associates and JVs

47m2014H1: -7mNo PPA effect in Kramp, Xergi 8% EBIT

return on invested capital

17.0%ROIC incl. goodwill 14.1%Progress in all companies except BioMar

13.08.2015Interim Report 2015H1 2

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Jan Mar May Jul Sep Nov Jan Mar May Jul

Schouw & Co. share price

C20 CAP indexed to Schouw & Co.

MidCap indexed to Schouw & Co.

2014 2015

Key figures

Revenue and income 2015H1 2014H1 2014FY

Revenue 5,888 5,064 11,784

EBITDA 494 415 1,070

- margin 8.4% 8.2% 9.1%

EBIT 303 239 708

- margin 5.1% 4.7% 6.0%

Profit after tax in associates and JVs 47 -7 28

Cash flows 2015H1 2014H1 2014FY

Cash flows from operating activities 224 243 628

Cash flows from investing activities -184 -81 -355

Of which investment in PPE -165 -95 -233

Cash flows from financing activities -116 56 -563

Invested capital and financing 2015H1 2014H1 2014FY

Working capital 2,013 1,541 1,775

Net interest bearing debt (NIBD) 134 24 44

Total equity 6,366 5,740 6,074

ROIC excl. goodwill 17.0% 18.1% 16.9%

ROIC incl. goodwill 14.1% 15.0% 14.0%

NIBD/EBITDA 0.1 0.0 0.0

30%increase in share price

in 2014


21%increase in share price

in ’15H1

BioMar

Volume flat compared to 2014H1 Same total y/y volume in both Q1 and Q2 21% revenue increase due to higher raw material prices Increase in Norwegian volumes (final deliveries, contract base) Decrease in Chilean volumes (declining market, smaller fish, early harvest) Continental Europe on par despite challenges in Greece

Chile remains the key challenge Entire farming industry in financial difficulties Debtor management increasingly important Lower market share but no loss of customers Chile main reason to surge in NWC (forex, payment terms, inventory, etc.) Market volume expected to decline in next quarters

Maintaining 2015 outlook Contract base in Norway as expected (volumes and margins) Debtor risk and low volumes in Americas but positive

effect from USD exchange rate Greece seems towards a sustainable solution No effect from Chinese JV with Tongwei (but good progress) Outlook raised after Q1 following a strong first quarter


RevenueLTM

EBITLTM

GuidanceRevenue 2014 8,4517m

org. 2015 ~8.5bnafter Q1 2015 ~9.0bn

EBIT 2014 434morg. 2015 360-410m

after Q1 2015 375-425m

BioMar 2015-H1 financials13.08.2015Interim Report 2015H1 5

Q2 YTDLTM 2014

2015 2014 D 2015 2014 D

Revenue 2,230 1,837 21% 4,139 3,430 21% 9,161 8,451

EBITDA 115 114 1% 201 183 10% 592 574

EBITDA% 5.1% 6.2% -17% 4.9% 5.3% -9% 6.5% 6.8%

EBIT 78 79 -1% 127 112 13% 449 434

EBIT% 3.5% 4.3% -18% 3.1% 3.3% -6% 4.9% 5.1%

Profit before tax 69 73 -5% 120 102 18% 417 398

Cash Flow from operations -96 148 NA -101 84 NA 81 266

Equity 1,929 1,665 16% 1,902

- in % of total assets 36.9% 36.4% 1% 39.3%

Inv. Capital (ex goodwill) 2,219 1,784 24% 1,931

- ROIC 21.8% 24.4% -10% 22.9%

Net Working Capital 1,260 802 57% 983

- in % of LTM revenue 13.8% 9.2% 49% 11.6%

NIBD 686 539 27% 386

- times LTM EBIDTA 1.2x 0.9x 26% 0.7x

Fibertex Personal Care

Small decline in revenue and volume Volume growth in Denmark but decline in Malaysia Lower raw material prices affects revenue negatively Positive effect from consolidation of Innowo Print Strong cash flow from operations of DKK 220m (2014H1: 100m) ROIC of 15.8% following significant lowering of NWC

Volatile raw material prices Pass-through mechanisms with some months lag About DKK +30m EBIT effect in Q1, about DKK -25m in Q2, minor effect expected in Q3 PP prices seems to have stabilized

Innovation and value-add Starting up print production in Malaysia Ongoing innovation in softer, lighter and loftier products Growing with Japanese premium diaper manufactures

Narrowing EBIT guidance Raising lower end of interval High capacity utilisation required Industry remains dynamic


RevenueLTM

EBITLTM


2015 ~1.7bnEBIT 2014 171m

org. 2015 160-180mnew 2015 170-180m

Fibertex Personal Care 2015-H1 financials

Q2 YTDLTM 2014

2015 2014 D 2015 2014 D

Revenue 404 421 -4% 832 847 -2% 1,772 1,787

EBITDA 70 66 5% 169 136 24% 340 308

EBITDA% 17.3% 15.8% 10% 20.3% 16.1% 26% 19.2% 17.2%

EBIT 34 34 0% 98 73 35% 197 171

EBIT% 8.5% 8.1% 4% 11.8% 8.6% 37% 11.1% 9.6%

Profit before tax 29 31 -4% 94 64 46% 199 169

Cash Flow from operations 129 29 347% 220 100 119% 345 226

Equity 738 630 17% 730



- ROIC 15.8% 12.9% 23% 14.4%

Net Working Capital 225 268 -16% 293

- in % of LTM revenue 12.7% 16.8% -24% 16.4%

NIBD 560 646 -13% 688

- times LTM EBIDTA 1.6x 2.3x -29% 2.2x


Fibertex Nonwovens

Another strong quarter Growth in auto and high-value segments Substantial progress in EBIT and gross margin Effect from acquisitions, forex, scale and transformed business model One-off gain of DKK 3m following acquisition of shares in South Africa

Consolidating strong international position State-of-the-art equipment at all sites US platform contributes positively Significant long-term potential in South Africa Promising product development pipeline Proven strong ability to drive industry consolidation

2015 guidance raised for the 2nd time Effect from strong H1 (H2 always low season) Still challenges from upgrades and installation of new line Consolidation of South Africa (negative EBIT in 2015) Uncertainty about raw material prices


RevenueLTM

EBITLTM


2015 ~1.2bnEBIT 2014 62m

org. 2015 65-75mafter Q1 2015 70-80m

new 2015 75-85m

Fibertex Nonwovens 2015-H1 financials

Q2 YTDLTM 2014

2015 2014 D 2015 2014 D

Revenue 328 267 23% 634 539 18% 1,143 1,048

EBITDA 44 31 40% 89 64 38% 153 128

EBITDA% 13.4% 11.8% 14% 14.1% 12.0% 18% 13.4% 12.2%

EBIT 25 16 59% 52 33 58% 81 62

EBIT% 7.6% 5.9% 29% 8.2% 6.1% 34% 7.1% 5.9%

Profit before tax 22 13 76% 45 27 70% 69 50

Cash Flow from operations 23 32 -29% 51 51 0% 82 82

Equity 463 331 40% 385

- in % of total assets 33.0% 33.8% -2% 32.7%

Inv. Capital (ex goodwill) 1,034 730 42% 874

- ROIC 9.4% 7.1% 33% 8.4%

Net Working Capital 349 283 23% 319

- in % of LTM revenue 30.5% 28.5% 7% 30.4%

NIBD 593 409 45% 522

- times LTM EBIDTA 3.9x 3.6x 8% 4.1x


Hydra-Grene

Strong H1 and high activity in wind ~45% of revenue comes from wind segment

Very strong wind sales to USA

Significant effect from good utilisation of capacity

Danish OEM market on par with 2014H1

Offshore oil/gas remains small compared to OEM and Wind

Business development Increasingly complex products and system solutions

Investments required to build strong offshore segment

New ERP system implemented and running

Looking to strengthen growth platform

Better outlook for 2015 Better than expected/awarded sales to wind

Increased competition in all segments

Plunging sales to agricultural sector


RevenueLTM

EBITLTM

GuidanceRevenue 2014 566m

org. 2015 ~500mnew 2015 ~550m

EBIT 2014 60morg. 2015 45-55mnew 2015 50-60m

Hydra-Grene 2015-H1 financials

Q2 YTDLTM 2014

2015 2014 D 2015 2014 D

Revenue 151 147 2% 299 281 7% 584 566

EBITDA 23 22 4% 43 41 5% 80 78

EBITDA% 15.2% 14.9% 2% 14.2% 14.5% -2% 13.7% 13.8%

EBIT 19 18 9% 35 32 11% 64 60

EBIT% 12.6% 11.9% 6% 11.8% 11.3% 5% 10.9% 10.6%


Cash Flow from operations -5 -12 -59% 40 10 285% 89 60

Equity 176 164 8% 188


Inv. Capital (ex goodwill) 289 309 -6% 292

- ROIC 23.8% 22.3% 7% 22.6%

Net Working Capital 188 195 -3% 187

- in % of LTM revenue 32.2% 37.1% -13% 33.1%

NIBD 101 145 -30% 96



Kramp

Strong development in H1 Revenue up 4.6% and EBIT 17% driven by the big markets in PL, FR, NL

EBIT margin of 11.7% in Q2

Robust business model: high share of wearables and repair parts

Agro customers facing difficulties in selected markets

Harvesting the merger synergies Integration of Grene and Kramp progresses as planned

Expected level of synergies confirmed so far

Investments in IT required as expected

Maintaining 2015 outlook Full effect in Schouw & Co. P/L as PPA depreciations are eliminated

Disclosed 2017 revenue target of EUR 1bn requires M&Abut 13% EBITDA target remains intact



2015 ~5.25bnEBIT 2014 405m

2015 425-450m

New warehouse in Poland

Kramp 2015-H1 financials

Q2 YTDLTM 2014

2015 2014 D 2015 2014 D

Revenue 1,439 1,360 6% 2,693 2,576 5% 5,023 4,905

EBITDA 201 179 13% 345 287 16% 576 529

EBITDA% 14.0% 13.1% 6% 12.8% 11.5% 11% 11.5% 10.8%

EBIT 169 150 12% 281 241 17% 445 405

EBIT% 11.7% 11.0% 6% 10.4% 9.3% 12% 8.9% 8.3%


Equity 1,267 1,214 4% 1,063

- in % of total assets 39.2% 40.6% -3% 38.1%


- ROIC 17.6% 17.5% 0% 16.6%

Net Working Capital 1,544 1,511 2% 1,434

- in % of LTM revenue 30.7% 31.6% -3% 29.2%

NIBD 1,311 1,265 4% 1,371



Other activities

Xergi Significant progress in 2015

Revenue up to DKK 235m (2014H1: 86m)

EBIT margin about 8% (2014H1: loss)

Maintaining high activity level also in 2015

Effect from many years of investing in technology and markets as well as strong Danish market

Unchanged good prospects for biogas

Focus on international markets

Incuba Invest Small profit (as in 2014H1)

Properties HQ at Chr. Filtenborgs Plads in Aarhus

Two factories in Frederikshavn (Martin Prof.)

Small property in Aarhus rented to former Grene Industri service


2015 guidance

REVENUE DKK million

2015 F

after Q2

2015 F

original

2014

actual

BioMar c. 9,000 c. 8,500 8,451

Fibertex Personal Care c. 1,700 c. 1,700 1,787

Fibertex Nonwovens c. 1,200 c. 1,200 1,048

Hydra-Grene c. 550 above 500 566

Other/eliminations - - -68

Total revenue c. 12.5bn c. 12bn 11,784

Kramp (100%) c. 5,250 c. 5,250 4,905

EBIT DKK million

2015 F

after Q2

2015 F

original

2014

actual

BioMar 375-425 360-410 434

Fibertex Personal Care 170-180 160-180 171

Fibertex Nonwovens 75-85 65-75 62

Hydra-Grene 50-60 45-55 60

Other c. -20 c. -20 -20

Total EBIT 650-730 610-700 708

Associates etc. 65-75 60-70 28

Financial items, net c. -10 c. -35 -35

Profit before tax 705-795 635-735 701

Kramp EBIT (100%) 425-450 425-450 405


Upwards adjusted after Q1Upwards adjusted after Q2

Strategic goals13.08.2015Interim Report 2015H1 16

Growth Substantial growth every year

Profit Benchmark level profitability

Return ROIC > 15%, but dependent on level of risk

Leverage Comfort zone for NIBD is 1-2 times EBITDA

Payout Constant/increasing dividends and share buybacks

Portfolio A ’handful’ of big and strong businesses

Contact

Investor Relations CEO/President

Kasper Okkels Jens Bjerg Sørensen

[email protected] schouw @ schouw.dk

+45 87 34 58 24 +45 86 11 22 22

schouw & co. h1 2015 · investor presentation august 2015 ceo jens bjerg sØrensen ir kasper...

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