semperit group q1 2017 investor presentation...investor presentation q1 2017 i 16 may 2017 i...

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SEMPERIT GROUPQ1 2017 INVESTOR PRESENTATIONFrank Gumbinger, CFO16 May 2017

Q1 2017 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

Investor Presentation Q1 2017 I 16 May 2017 I Investor Relations2

Appendix (p. 18)

Agenda

3 Investor Presentation Q1 2017 I 16 May 2017 I Investor Relations

Operational Development and Financial Performance (p. 4)

Outlook (p. 15)

High raw material price volatility since November 2016

4

75

100

125

150

175

200

225

250

275

300

Styrene Butadiene Rubber 15022)

SBR Europe SBR Asia1) Selected raw materials are shown for illustration purposes only2) Index based on 01/01/2016 = 100

300

400

500

600

700

800

900

Natural Latex 60% MRBin MYRc/kg

Price movements for important raw materials1) became highly unpredictable

Investor Presentation Q1 2017 I 16 May 2017 I Investor Relations

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

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

Overview Semperflex and Sempertrans

Q1 2017 vs. Q1 2016Se

mpe

rfle

xSe

mpe

rtra

ns

+12%

-1%

-1%

-3%

-90%


n/a

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

Overview Semperform and Sempermed

Sem

perf

orm +5%

-33%

-47%

6

Q1 2017 vs. Q1 2016

JV transaction completed 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

Sem

perm

ed

-78.1%


Further comparisonnot meaningful.

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 USD 15m dividend payment of SAC to

JV partner

Use of proceeds for … … committed investments (CAPEX

FY 2017 of EUR 80-90m) … and to strengthen capital base by

deleveraging of liabilities to banks

Highlights of Joint Venture transaction

Highlights

Shanghai Sempermed Glove Sales, China

Sempermed Brazil, Brazil

FormTechEngineering,

Malaysia

Sempermed USA, USA

Semperit

Semperflex Shanghai, China

Shanghai Semperit Rubber & Plastic Products, China

Siam Sempermed Corporation (SSC), name changed to Sri Trang Gloves

(Thailand) Co. Ltd,Thailand

Sempermed Singapore, Singapore

Sri Trang

100%100%

100% 76%

50%

100%

100%

100%

100%

Semperflex Asia (SAC), Thailand

50%

Sem

perm

edSe

mpe

rfle

xSe

mpe

r-fo

rm


2016 2017e

Financial implications of Joint Venture transaction

Positive financial effects in line with expectation

Compensation payment JV transaction: EUR 157m compensation payment to

Semperit, plus EUR 48m of SSC dividend to Semperit

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


EBITDA effect -4.7 85

EBIT effect -21.7 85

Earnings after tax effect -31.9 65

851)

in EUR m

1) One-off effects on EBITDA / EBIT in Q1 2017.

Value adjustments

Deferred taxesTax accruals Brazil

-31.9

Overview of one-off effects without JV transaction related costs

8

Revenue increase mainly due to strong volume development

229.3+2.0219.5 +3.3+5.7

+4.5%

Q1 2017SempermedSemperform

-1.3

SempertransSemperflexQ1 2016

Revenue by segment Q1 2017 vs. Q1 2016in EUR m

+3.9%

Industrial Sector Medical Sector

+11.8% -3.1% +5.0%

+4.9%

= % change+11.9%


EBIT impacted by margin squeeze and positive one-off effects from JV transaction

EBIT by segment Q1 2017 vs. Q1 20161)

in EUR m

1) 2016 values restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform.2) Adj. results excluding one-off effects

86.3

18.6

78.1

-3.6

>> +100%

Adj. EBIT Q1 20172)

-0.1

Sempermed

-3.5

Corporate Center

+6.8

Adj. for one-offs from JV transaction

-84.8

EBITQ1 2017

Sempertrans

-5.2

Semperflex

-2.1

Semperform

-2.7

1.5

EBITQ1 2016

n/a

8.5%

17.9% = EBIT margin

n/a


18.0% -0.8% 6.6%

8.8%

<1%SSC effect

one-offsfrom JVtransaction

+72.5


Q1 2017 Financials / Profitability Overview

1) Adj. results after one-off effects and without profit contribution from SSC in FY 20162) Attributable to the shareholders of Semperit AG Holding

Key Financials Semperit Group

in EUR m Q1 2017 Q1 2016 %

Revenue 229.3 219.5 +4.5%

EBITDA 94.4 26.7 >+100.0%

Adj. EBITDA1) 9.6 24.6 -61.1%

EBIT 86.4 18.6 >+100.0%

Adj. EBIT1) 1.5 16.5 -90.7%

Earnings after tax 62.8 10.1 >+100.0%

Adj. Earnings after tax1)2) -2.0 10.1 n/a

Total one-off effects 64.8 0.0 n/a

Profitability

EBITDA margin 41.2 12.2 +29.0 PP

EBIT margin 37.7 8.5 +29.2 PP

Earnings per share in EUR2) 3.06 0.49 >+100.0%


CAPEX and Working Capital Overview

= Trade Working Capital in % of LTM revenues

8.5

6.9

2.0

6.8

4.0

1.5

4.6

2.4

+35.3%

Other

Sempermed

Semperform

Sempertrans

Semperflex

0.9

Q1 2017

21.7

0.2

Q1 2016

16.1

CAPEX per Segmentin EUR m

Components of Working Capitalin EUR m

17.6%

118.8 137.9

138.1145.0

145.4

-111.6

168.9

-114.0

31 Dec 2016

+16.2%

Trade payables

Trade receivables

Inventories

31 March 2017

17.6% 19.6%


Net debt significantly reduced

Balance sheet structure 31 March 2017

Balance sheet total: EUR 971 m

EquityFixedassets

InventoriesTrade

receivables

Cash and cash equivalents

Liabilities from redeemable non-controlling interestsProvisions incl. social capital

Other liabilities incl. deferred taxes

Current assetsCorporate Schuldschein loan

Liabilities to banks

Cash and cash equivalents of EUR 243m

Financial liabilities: Corporate Schuldschein loan of EUR 279m Net debt of EUR 94m,

down by EUR 137m since end of Dec. 2016

Net debt / EBITDA of 0.64x, compared to 2.96x as of end of Dec. 2016

Equity ratio of 39.2%,compared to 31.8% as of end od Dec. 2016

Financial profile as of 31 March 2017

13

145

419

138

74

383

243

15

26

Assets Equity & Liabilities

58

162

279


Appendix (p. 18)

Agenda



Outlook (p. 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


Contact and financial calendar

Financial Calendar 201716/05/2017 Report on Q1 201723/05/2017 Annual General Meeting30/05/2017 Ex-dividend day01/06/2017 Dividend payment day17/08/2017 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.


Appendix (p. 18)

Agenda



Outlook (p. 15)

Q1 2017 Q1 2016 %

229.3 219.5 +4.5%

94.4 26.7 >+100.0%

41.2% 12.2% +29.0 PP

9.6 24.6 -61.1%

4.2% 11.2% -7.0 PP

86.4 18.6 >+100.0%

37.7% 8.5% +29.2 PP

1.5 16.5 -90.7%

0,7% 7.5% -6.8 PP

-2.0 8.1 n.a.

62.8 10.1 >+100.0%

3.06 0.49 >+100.0%

21.7 16.1 +35.3%

6,801 6,965 -2.4%

In EUR m

Revenue

EBITDA

EBITDA margin

Adj. EBITDA3)

Adj. EBITDA margin3)

EBIT

EBIT margin

Adj. EBIT3)

Adj. EBIT margin3)

Adj. Earnings after tax3)

Earnings after Tax

Earnings per share in EUR2)

Investments

Employees

Group and Sectors: Q1 2017 vs. Q1 2016

Q1 2017 Q1 2016 %

140.1 133.6 +4.9%

17.2 25.1 -31.4%

12.3% 18.7% -6.5 PP

- - -

- - -

12.3 20.3 -39.2%

8.8% 15.2% -6.4 PP

- - -

- - -

- - -

- - -

- - -

13.0 7.2 +80.2%

3,648 3,540 +3.1%


Q1 2017 Q1 2016 %

89.2 85.9 +3.9%

78.1 6.1 n.a.

87.5% 7.0% +80.5 PP

0.0 4.0 n.a.

0.0% 4.6% -4.6 PP

75.4 2.9 n.a.

84.5% 3.3% +81.1 PP

-2.8 0.8 n.a.

-3.1% 0.9% -4.0 PP

- - -

- - -

- - -

8.5 6.8 +24.6%

3,004 3,201 -6.2%

Semperit Group1)

1) Including Corporate Center (Holding, supporting functions, special projects): Costs of EUR 1.3m in Q1 2017 (EUR 4.5m in Q1 2016)2) Attributable to shareholders of Semperit AG Holding3) Adj. results for one-off effects and without profit contribution from SSC in FY 2016


Semperit Group per quarter

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

2016 Q1 2017

Revenue 858.3 914.7 219.5 219.2 208.9 204.8 852.4 229.3

EBITDA 101.9 96.2 26.7 26.1 19.4 5.7 77.9 94.4

EBITDA margin 11.9% 10.5% 12.2% 11.9% 9.3% 2.8% 9.1% 41.2%

EBIT 63.8 66.7 18.6 17.6 10.4 -19.3 27.3 86.4

EBIT margin 7.4% 7.3% 8.5% 8.0% 5.0% -9.4% 3.2% 37.7%

Financial result -11.5 -8.0 -5.9 -4.1 -2.7 -7.2 -19.9 -8.0

Earnings after tax 37.8 46.4 10.1 7.7 5.5 -32.1 -8.8 62.8

Earnings per share in EUR2) 1.85 2.26 0.49 0.38 0.27 -1.57 -0.43 3.06

Key Financials Semperit Group1)

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


Semperit Group and Sempermed segment per quarter –adjusted figures

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

2016 Q1 2017

Revenue 219.5 219.2 208.9 204.8 852.4 229.3

EBITDA adj. 24.6 25.5 17.4 7.2 74.7 9.6

EBITDA margin adj. 11.2% 11.7% 8.3% 3.5% 8.8% 4.2%

EBIT adj. 16.5 17.1 8.4 -0.9 41.1 1.5

EBIT margin adj. 7.5% 7.8% 4.0% -0.4% 4.8% 0.7%

Semperit Group adj.1)

1) Adj. results for one-off effects and without profit contribution from SSC in FY 2016


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

2016 Q1 2017

Revenue 85.9 83.8 88.6 87.6 346.0 89.2

EBITDA adj. 4.0 1.3 -0.1 -1.7 3.4 0.0

EBITDA margin adj. 4.6% 1.6% -0.2% -2.0% 1.0% 0.0%

EBIT adj. 0.8 -2.2 -4.1 -4.6 -10.1 -2.8

EBIT margin adj. 0.9% -2.6% -4.6% -5.3% -2.9% -3.1%

Sempermed adj.1)

Semperflex and Sempertrans per quarter

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

adj.2)Q1 2016

adj.2) Q1 2017

Revenue 202.1 203.4 52.8 53.6 47.2 48.8 202.3 182.7 47.8 53.5

EBITDA 48.5 46.1 13.3 13.9 9.8 11.1 48.0 44.3 11.8 11.7

EBITDA margin 24.0% 22.7% 25.2% 26.0% 20.7% 22.7% 23.7% 24.2% 24.7% 21.8%

EBIT 36.8 38.2 11.1 11.8 7.6 9.0 39.5 35.3 9.7 9.6

EBITmargin 18.2% 18.8% 21.1% 22.0% 16.1% 18.5% 19.5% 19.3% 20.4% 18.0%

Key Financials Semperflex1)

Key Financials Sempertrans1)

in EUR m FY 2014 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017

Revenue 146.4 164.9 42.6 38.9 32.7 34.1 148.4 41.3

EBITDA 20.9 23.2 5.8 5.7 3.0 1.4 15.9 0.6

EBITDA margin 14.3% 14.0% 13.6% 14.5% 9.2% 4.1% 10.7% 1.4%

EBIT 16.8 19.9 4.8 4.7 2.1 0.5 12.1 -0.3

EBITmargin 11.5% 12.1% 11.3% 12.1% 6.3% 1.5% 8.2% -0.8%

1) Values for 2014 and 2015 restated2) Values for 2016 restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform


Semperform and Sempermed per quarter

Key Financials Semperform1)

in EUR m FY 2014 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 20162)FY 2016

adj.2)Q1 2016

adj.2) Q1 2017

Revenue 129.0 152.8 38.2 42.8 40.5 34.2 155.7 175.3 43.2 45.3

EBITDA 18.6 24.3 6.0 7.7 6.7 5.3 25.6 29.3 7.4 5.0

EBITDA margin 14.5% 15.9% 15.6% 17.9% 16.4% 15.5% 16.4% 16.7% 17.2% 10.9%

EBIT 12.7 19.1 4.3 5.9 4.8 3.3 18.3 22.5 5.7 3.0

EBITmargin 9.9% 12.5% 11.2% 13.8% 11.9% 9.6% 11.8% 12.8% 13.1% 6.6%

1) Values for 2014 and 2015 restated2) Values for 2016 restated, the business unit Sheeting was reclassified from segment Semperflex to segment Semperform

22

Key Financials Sempermed1)

in EUR m FY 2014 FY 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Q1 2017

Revenue 380.8 393.7 85.9 83.8 88.6 87.6 346.0 89.2

EBITDA 33.5 29.4 6.1 1.8 1.9 -3.2 6.6 78.1

EBITDA margin 8.8% 7.5% 7.0% 2.2% 2.1% -3.6% 1.9% 87.5%

EBIT 17.6 17.2 2.9 -1.7 -2.1 -23.1 -23.9 75.4

EBITmargin 4.6% 4.4% 3.3% -2.0% -2.3% -26.3% -6.9% 84.5%


Key figures 2008 – 2016

Key performance figures

in EUR m 2008 2009) 20101) 20111) 2012 2013 20143) 20153) 2016 Adj. 20164)

Revenue 655.3 588.1 689.4 820.0 828.6 906.3 858.3 914.7 852.4EBITDA 87.9 102.8 112.3 110.0 108.7 132.5 101.9 96.2 77.9 74.7EBITDA margin 13.4% 17.5% 16.3% 13.4% 13.1% 14.6% 11.9% 10.5% 9.1% 8.8%EBIT 58.7 69.6 82.3 80.4 72.5 87.8 63.8 66.7 27.3 41.1EBIT margin 9.0% 11.8% 11.9% 9.8% 8.8% 9.7% 7.4% 7.3% 3.2% 4.8%Earnings after tax 44.9 38.8 45.4 51.8 46.2 54.9 37.8 46.4 -8.8 15.2Earnings per share (EPS)2), in EUR 1.83 1.89 2.21 2.52 2.25 2.65 1.85 2.26 -0.43 -0.10Gross cash flow 78.0 92.6 91.0 89.4 85.6 116.2 89.9 55.7 48.1Return 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 2008 2009) 20101) 20111) 2012 2013 20143) 2015 2016Balance sheet total 485.5 531.5 593.5 616.7 824.5 852.1 826.3 937.8 1,034.5Equity2) 291.9 310.6 351.1 379.4 406.2 411.5 443.8 363.3 329.3Equity 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

27.6 22.7 52.5 45.1 41.2 49.7 67.4 71.8 65.1

Employees (at balance sheet date) 7,064 6,649 7,019 8,025 9,577 10,276 6,888 7,053 6,9741) 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 restated4) Adj. results for one-off effects and without profit contribution from SSC in FY 2016


semperit group q1 2017 investor presentation...investor presentation q1 2017 i 16 may 2017 i...

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