semperit group investor presentation q1-3 2016...2016/11/17 · q1-3 2016: slight drop in revenue,...

1

SEMPERIT GROUPINVESTOR PRESENTATION Q1-3 2016Thomas Fahnemann, CEOJohannes Schmidt-Schultes, CFO

17 November 2016

Highlights (p. 3)

Outlook (p. 14)

Appendix (p. 17)

Agenda

2

Financial Performance (p. 7)

Investor Presentation Q1-3 2016 I 17 November 2016 I Investor Relations

Solid development despite weak market situation

Solid development through satisfying capacity utilisation and sales activities

Industrial sector with volume growth and further gains in market share despite very difficult markets

Medical Sector: Focus on core markets as a consequence of challenging price and cost situation as well as ongoing Thailand JV dispute

Predicted drop in revenue and operational earnings Revenue decreases by -6.4% to EUR 647.6 million EBITDA -4.2% and EBIT -13.5%1)

Net profit negatively affected by higher financial and tax expenses

Sound Industrial Sector limits negative effects of weak Medical Sector

Revenue by segment Q1-3 2016 (vs. Q1-3 20151))

Sempermed40% (43%)

Semperform19% (17%)

Sempertrans17% (18%)

Semperflex24% (22%)

Europe69% (65%)

Asia, Africa, others12% (13%)

North and South America 19% (22%)

Revenue by region Q1-3 2016 (vs. Q1-3 2015)

1) Values for 2015 restated

3 Investor Presentation Q1-3 2016 I 17 November 2016 I Investor Relations

Still small volume growth despite economic headwind and continued mining downturn

Margins under pressure due to subdued market demand and price competition

Satisfactory utilisation of all production sites

Volume growth and increase of market share in all Business Units

Hydraulic hoses: Good utilisation in challenging market environment

Industrial hoses: New capacities highly utilised due to strong sales performance

Semperflex: Strong performance Sempertrans: Competing successfully in very challenging markets

Q1-3 2016 vs. Q1-3 20151)


Sem

perf

lex

Sem

pert

rans

-10%Market

EBIT

EBITDA

Revenue

-15%Market

EBIT

EBITDA

Revenue

-1.7%

-2.3%

-4.4%

-6.1%

-12.9%

-18.1%


Market share gains in decreasing markets Profiles: successful market entry in USA;

market share gains in Western and Central Europe compensated decline in Russia;

Handrails: business benefits from strong After-Sales-Market

Semperform: Stable developmentSempermed: Focus on core markets

Sem

perf

orm

-2%Market

EBIT

EBITDA

Revenue

1) Values for 2015 restated2) EBITDA and EBIT in 2015 was positively influenced by one-time bad will effect from acquisition of Leeser (EUR 3.2m).

+3.4%

-4.1%

-14.5%


Q1-3 2016 vs. Q1-3 20151)

2)

Global glove market still growing but all producers affected by margin squeeze

Thailand JV and start-up costs in Malaysia put pressure on earnings

Focus on core markets Europe and North America

Cost reduction programme and efficiency improvements continued

Sem

perm

ed

+5%

n.a.

-49,6%

-12.9%

Market

EBIT

EBITDA

Revenue

-78.1%

2)

Highlights (p. 3)

Outlook (p. 14)

Appendix (p. 17)

Agenda

6



Q1-3 2016: Slight drop in revenue, stable margins

1) Values for 2015 restated2) Attributable to the shareholders of Semperit AG Holding

in EUR mQ1-3 2016 Q1-3 20151)

(restated) %

Revenue 647.6 692.1 -6.4%

EBITDA 72.2 75.4 -4.2%

EBIT 46.7 53.9 -13.5%

Earnings after tax 23.4 40.1 -41.6%

Profitability

EBITDA margin 11.1% 10.9% +0.2 PP

EBIT margin 7.2% 7.8% -0.6 PP

Earnings per share in EUR2) 1.14 1.95 -41.6%

Key Financials Semperit Group1)


Development of revenue and EBIT per quarter

17.7

21.0

12.8

15.2

Q4

Q3

Q2

Q1 18.6

17.6

66.7

20151)

10.4

2016

46.7

7.0%

9.0%

7.3%

= EBIT margin

8

20151)

Q1 219.5

647.6

2016

Q4

Q3

219.2

208.9

914.7

217.5

233.4

241.3

222.6 5.8%

Revenue per quarterin EUR m

EBIT per quarterin EUR m

8.5%


8.0%

5.0%

Q2


Challenging market conditions in all sectors

-38.4647.6

SempermedSemperform

4.0

Sempertrans

-7.4

Semperflex

-2.7

Q1-Q3 2015

-6.4%692.1-6.2m

Industrial Sector

Q1-Q3 2016

Revenue by segment Q1-3 2016 vs. Q1-3 2015in EUR m

-12.9%

Industrial Sector Medical Sector

-1.7% -6.1% +3.4%

-1.6%

= % change


Strong EBIT margins in Industrial Sector

53.9-6.6m

Industrial Sector

Q1-Q3 2016

46.7

Corporate Center

10.5

Sempermed

-11.2

Semperform

-2.6-1.4

Q1-Q3 20151)

Semperflex Sempertrans

-2.6

-13.5%

EBIT by segment Q1-3 2016 vs. Q1-3 20151)

in EUR m

7.2%7.8%

= EBIT margin

-0.3%19.9% 10.2% 12.4%

14.7%




CAPEX and Working Capital Overview

= Trade Working Capital in % of LTM revenues

-14.0%

Other

Sempermed

SemperformSempertrans

Semperflex

Q1-Q3 2016

44.3

4.4

18.5

8.23.3

9.9

Q1-Q3 2015

51.5

4.7

23.8

5.46.4

11.2

CAPEX per Segmentin EUR m

Components of Working Capitalin EUR m

31 Dec 2015

160.6

-100.7

125.5

135.7

Trade receivables

Trade payables

+3.0%

Inventories

30 Sept 2016

165.3

-94.0

126.0

133.3

17.6% 19.1%


141m EUR issued in 3 currencies:US-Dollar / Polish Zloty / Czech Crown

Maturities of 3, 5 and 7 years Currencies for important procurement, production and

sales markets Funds are used, among other things, to re-finance existing

financial liabilities and to ensure further expansion of production sites

Subscribed by European and Asian investors Original placement volume was increased significantly Pricing was at the lower end Interest rate of slightly above 2% on average for Corporate

Schuldschein loans issued in November 2016 Total average interest rate for Semperit Group going

forward is about 2% Net debt / EBITDA of 2.32x as of 30 September 2016

Corporate Schuldschein Loans issued in November 2016


Favourable capital markets used to diversify financing structureCurrency Split

Czech Crown14%

Polish Zloty23%

US-Dollar63%

Maturity split

5 and 7 years67%

3 years33%

Highlights (p. 3)

Outlook (p. 14)

Appendix (p. 17)

Agenda

13



Outlook 2016: Challenging market conditions weigh on operational development

Continued moderate economic recovery expected in the industrialised countries

Heterogeneous picture in emerging and developing countries

No signs of stimulation of industry and investments in China, Russia and Eastern Europe

Moderate recovery of the global economy in 2016

Operational results expected to be below prior year:EBITDA about -10%, EBIT about -20%

Risk factors: uncertain outlook for commodity prices and currency risks

Industrial Sector Semperflex: Relatively stable, better than market,

strong market position and strategic partnerships mitigate cyclicality Sempertrans: Cyclical decreasing demand,

price pressure intensified, development in accordance with market Semperform: Relatively stable,

market share gains in decreasing markets, globalisation of profile business

Medical Sector Focus on core markets Europe and North America Efficiency, optimisation and cost cutting

measures under way Commissioning of the new production

capacities in Malaysia Negative impact from joint venture in Thailand

likely to continue

Markets put pressure on operational development

Growth targets

Average double-digit volume growth 2015-2020 (CAGR)


Contact and financial calendar

15

Financial Calendar 201723/3/2017 Publication of 2016 annual financial

statements and press conference26/4/2017 Annual General Meeting2/5/2017 Ex-dividend day4/5/2017 Dividend payment day16/5/2017 Report on Q1 201717/8/2017 Report on H1 201716/11/2017 Report on Q1-3 2017

Investor Relations Semperit GroupStefan Marin, Head of Investor Relations+43 1 79777 - 210www.semperitgroup.com/en/irModecenterstrasse 22 1031 Vienna, Austria

DisclaimerThe information provided in this presentation does not constitute an offer for the sale of securities nor an invitation to submitan offer to purchase shares of Semperit AG Holding, but exclusively serves information purposes. Rounding of differences inthe 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 andinformation available and the assessments made at the time that this report was prepared. As is true of all forward-lookingstatements, these statements are subject to risk and uncertainties. As a result, the actual events may deviate significantlyfrom these expectations. No liability whatsoever is assumed for the accuracy of projections or for the achievement of plannedtargets or for any other forward-looking statements.


Highlights (p. 3)

Outlook (p. 14)

Appendix (p. 17)

Agenda

16



Composition of Financial Results

17

Financial result Q1-3 2015in EUR m

-5.0-4.6

-4.2

-22.2

26.0

Financialincome incl.

FX gains and interest income

12.2

Interest expenses

-12.7-4.7

Profit/loss attribu-table to redeem-

able non-con-trolling interests

-5.5

Financialexpenses incl. FX losses and other expenses

-14.7

Financialresult

Financial result Q1-3 2016in EUR m

Q1-3 2015: Financial result primarily influenced by FX gains

Q1-3 2016: Negative impact of FX losses (mainly in Q1 2016) and higher borrowing costs on financial result

Development of financial result


In EUR m

Revenue

EBITDA

EBITDA margin

EBIT

EBIT margin

Earnings after tax

Earnings per share in EUR3)

Investments

Employees (at reporting date)

Group and Sectors: Q1-3 2016 vs. Q1-3 2015

Q1-3 2016 Q1-3 2015restated2) %

389.3 395.5 -1.6%

71.7 75.6 -5.1%

18.4% 19.1% -0.7 PP

57.1 63.7 -10.3%

14.7% 16.1% -1.4 PP

21.3 23.0 -7.4%

3,576 3,583 -0.2%


Q1-3 2016 Q1-3 2015restated2) %

258.3 296.7 -12.9%

9.8 19.4 -49.6%

3.8% 6.5% -2.7 PP

-0.9 10.3 –

-0.3% 3.5% -3.8 PP

18.5 23.8 -22.1%

3,232 3,595 -10.1%

Q1-3 2016Q1-3 2015

restated2)%

647.6 692.1 -6.4%

72.2 75.4 -4.2%

11.1% 10.9% +0.2PP

46.7 53.9 -13.5%

7.2% 7.8% -0.6 PP

23.4 40.1 -41.6%

1.14 1.95 -41.6%

44.3 51.5 -14.0%

7,028 7,303 -3.8%

Semperit Group1)

1) Including Corporate Center (Holding, central functions, special projects): Costs of EUR 9.6m in Q1-3 2016 (EUR 20.1m in Q1-3 2015)2) Values for 2015 restated 3) Attributable to shareholders of Semperit AG Holding


Semperit Group per quarter

in EUR m FY 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 FY 2015 Q1 2016 Q2 2016 Q3 2016

Revenue 858.3 217.5 233.4 241.3 222.6 914.7 219.5 219.2 208.9

EBITDA 101.9 21.8 28.5 25.1 20.8 96.2 26.7 26.1 19.4

EBITDA margin 11.9% 10.0% 12.2% 10.4% 9.4% 10.5% 12.2% 11.9% 9.3%

EBIT 63.8 15.2 21.0 17.7 12.8 66.7 18.6 17.6 10.4

EBIT margin 7.4% 7.0% 9.0% 7.3% 5.8% 7.3% 8.5% 8.0% 5.0%

Financial result -11.5 1.0 -5.2 -0.8 -3.0 -8.0 -5.9 -4.1 -2.7

Earnings after tax 37.8 12.6 12.7 14.7 6.3 46.4 10.1 7.7 5.5

Earnings per share in EUR2) 1.85 0.61 0.62 0.72 0.31 2.26 0.49 0.38 0.27

Key Financials Semperit Group1)

1) Values for 2014 and 2015 restated2) Attributable to shareholders of Semperit AG Holding


Semperflex and Sempertrans per quarter


Revenue 202.1 55.4 52.5 48.3 47.1 203.4 52.8 53.6 47.2

EBITDA 48.5 13.6 13.3 11.0 8.3 46.1 13.3 13.9 9.8

EBITDA margin 24.0% 24.6% 25.3% 22.7% 17.6% 22.7% 25.2% 26.0% 20.7%

EBIT 36.8 11.6 11.3 9.0 6.3 38.2 11.1 11.8 7.6

EBIT margin 18.2% 21.0% 21.5% 18.6% 13.4% 18.8% 21.1% 22.0% 16.1%

Key Financials Semperflex1)

Key Financials Sempertrans1)


Revenue 146.4 38.9 39.0 43.9 43.1 164.9 42.6 38.9 32.7

EBITDA 20.9 4.7 5.7 6.2 6.5 23.2 5.8 5.7 3.0

EBITDA margin 14.3% 12.2% 14.6% 14.1% 15.1% 14.0% 13.6% 14.5% 9.2%

EBIT 16.8 4.0 4.9 5.4 5.7 19.9 4.8 4.7 2.1

EBIT margin 11.5% 10.2% 12.5% 12.2% 13.2% 12.1% 11.3% 12.1% 6.3%

1) Values for 2014 and 2015 restated


Semperform and Sempermed per quarter

Key Financials Semperform1)

Key Financials Sempermed1)


Revenue 129.0 31.8 41.7 44.0 35.3 152.8 38.2 42.8 40.5

EBITDA 18.6 3.7 10.1 7.3 3.2 24.3 6.0 7.7 6.7

EBITDA margin 14.5% 11.6% 24.2% 16.7% 9.0% 15.9% 15.6% 17.9% 16.4%

EBIT 12.7 2.8 8.8 5.9 1.5 19.1 4.3 5.9 4.8

EBITmargin 9.9% 8.9% 21.2% 13.4% 4.4% 12.5% 11.2% 13.8% 11.9%


Revenue 380.8 91.4 100.1 105.1 97.0 393.7 85.9 83.8 88.6

EBITDA 33.5 4.8 6.8 7.8 10.0 29.4 6.1 1.8 1.9

EBITDA margin 8.8% 5.2% 6.8% 7.5% 10.3% 7.5% 7.0% 2.2% 2.1%

EBIT 17.6 1.9 3.6 4.9 6.9 17.2 2.9 -1.7 -2.1

EBITmargin 4.6% 2.1% 3.5% 4.6% 7.1% 4.4% 3.3% -2.0% -2.3%

1) Values for 2014 and 2015 restated


Solid balance sheet structure and financial flexibility

Balance sheet structure 30 September 2016

Balance sheet total: EUR 969 m

Equity

Fixedassets

Inventories

Trade receivables

Cash and cash equivalents

Liabilities from redeemable non-controlling interests

Provisions incl. social capital

Other liabilities incl. deferred taxes

Current assets

Corporate Schuldschein loan

Liabilities to banks

Cash and cash equivalents of EUR 131m despite investment programme and optimisation of capital structure

Financial liabilities: Corporate Schuldschein loan of EUR 133m Net debt of EUR 216m

Net debt / EBITDA of 2.32x

Equity ratio of 37%

Financial profile as of 30 September 2016

555

361

131

133

133

4870

126

214

143

Equity & LiabilitiesAssets

23


Key figures consolidated income statement

Key figures income statement (1/2)

in EUR m 2008 2009 2010 2011restated1) 2012 2013 2014

restated2)2015

restated2)Q1-3 2016

Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 647.6

Changes inventories 5.0 -9.8 13.6 2.8 -1.9 9.4 -15.3 6.8 1.4

Own work capitalised 1.4 0.9 0.8 0.8 1.6 1.0 3.3 6.2 3.1

Other operatingincome 25.1 22.5 38.0 33.8 32.8 24.4 18.5 9.1 6.2

Material costs -381.9 -297.0 -410.2 -513.1 -501.0 -510.7 -487.7 -555.8 -377.8

Personnel expenses -109.3 -99.7 -109.9 -117.9 -127.4 -152.8 -151.0 -164.8 -128.3

Other operating expenses -107.7 -102.2 -109.5 -116.6 -124.2 -145.8 -132.3 -137.1 -85,0

Share of profits from joint ventures and associated companies

0.1 0.1 0.2 0.2 0.3 0.6 8.1 17.1 5.0

EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 72.2

Depreciation -29.2 -33.2 -29.9 -29.7 -36.2 -44.7 -38.1 -29.5 -25.6

EBIT 58.7 69.6 82.3 80.4 72.5 87.8 63.8 66.7 46.7

23

1) Values for 2011 restated (see Annual Report 2012, Notes 2.18), values for 2010 not restated.2) Values for 2014 and 2015 restated


Key figures consolidated income statement

Key figures income statement (2/2)

in EUR m 2010 2011restated1) 2012 2013 2014

restated3)2015

restated3) Q1-3 2016

EBIT 82.3 80.4 72.5 87.8 63.8 66.7 46.7

Financial income 1.9 1.7 2.2 1.9 1.4 29.2 12.2

Financial expenses -0.3 -0.5 -1.2 -4.0 -5.0 -31.8 -20.2

Profit/loss attributable to redeemable non-controlling interests

-21.0 -14.7 -15.0 -14.8 -7.8 -5.4 -4.7

Financial result -19.2 -13.4 -14.0 -16.9 -11.5 -8.0 -12.7

Earnings before tax 63.1 66.9 58.5 70.9 52.3 58.8 33.9

Income taxes -17.7 -15.2 -12.2 -16.0 -14.5 -12.4 -10.5

Earnings after tax 45.4 51.8 46.2 54.9 37.8 46.4 23.4

Earnings per share in EUR2) 2.21 2.52 2.25 2.65 1.85 2.26 1.14

24

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 Holding3) Values for 2014 and 2015 restated


Balance sheet structure: Assets

in EUR thousand 30/09/2016 31/12/2015ASSETSNon-current assetsIntangible assets 111,869 111,314Tangible assets 301,059 276,630Investments in joint ventures and associated companies

109,270 102,670

Other financial assets 11,701 12,372Other assets 7,367 5,275Deferred taxes 14,066 16,717

555,331 524,978Current assetsInventories 133,303 135,711Trade receivables 125,962 125,519Other financial assets 5,518 2,284Other assets 11,417 16,670Current tax receivables 6,441 6,192Cash and cash equivalents 131,456 126,430

414,097 412,806TOTAL ASSETS 969,428 937,784


Balance sheet structure: Equity and liabilities

EQUITY AND LIABILITIES 30/09/2016 31/12/2015EquityShare capital 21,359 21,359Capital reserves 21,503 21,503Revenue reserves 312,332 317,733Currency translation reserve 3,803 2,664Equity attributable to shareholders of Semperit AG Holding 358,997 363,260Non-controlling interests 1,892 1,924

360,890 365,183Non-current provisions and liabilitiesProvisions for pension and severance payments 44,006 40,775Other provisions 9,840 11,421Liabilities from redeemable non-controlling interests 48,274 44,192Corporate Schuldschein loan 132,659 132,615Liabilities to banks 208,259 162,898Other financial liabilities 770 862Other liabilities 1,001 746Deferred taxes 9,556 11,924

454,365 405,433Current provisions and liabilitiesProvisions for pension and severance payments 3,091 2,866Other provisions 13,094 19,033Corporate Schuldschein loan 617 1,481Liabilities to banks 6,046 5,560Trade payables 93,976 100,660Other financial liabilities 19,688 13,762Other liabilities 14,408 19,037Current tax liabilities 3,253 4,769

154,173 167,168EQUITY AND LIABILITIES 969,428 937,784

in EUR thousand


Key figures 2008 – 2015

Key performance figures

in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 20153)

Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2EBITDA margin 13.4% 17.5% 16.3% 13.4% 13.1% 14.6% 11.9% 10.5%EBIT 58.7 69.6 82.3 80.4 72.5 87.8 63.8 66.7EBIT margin 9.0% 11.8% 11.9% 9.8% 8.8% 9.7% 7.4% 7.3%Earnings after tax 44.9 38.8 45.4 51.8 46.2 54.9 37.8 46.4Earnings per share (EPS)2), in EUR 1.83 1.89 2.21 2.52 2.25 2.65 1.85 2.26Gross cash flow 78.0 92.6 91.0 89.4 85.6 116.2 89.9 55.7Return on equity 12.9% 12.5% 12.9% 13.6% 11.4% 13.3% 8.6% 12.8%

Balance sheet key figures

in EUR m 2008 2009 20101) 20111) 2012 2013 20143) 2015Balance sheet total 485.5 531.5 593.5 616.7 824.5 852.1 826.3 937.8Equity2) 291.9 310.6 351.1 379.4 406.2 411.5 443.8 363.3Equity ratio 60.1% 58.4% 59.2% 61.5% 49.3% 48.3% 53.7% 38.7%Investments in tangible and intangible assets 27.6 22.7 52.5 45.1 41.2 49.7 67.4 71.8

Employees (at balance sheet date) 7,064 6,649 7,019 8,025 9,577 10,276 6,888 7,053

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 Holding3) Values for 2014 and 2015 restated


semperit group investor presentation q1-3 2016...2016/11/17 · q1-3 2016: slight drop in revenue,...

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