investor presentation h1 2014
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Investor Presentation H1 2014TRANSCRIPT
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SEMPERIT GROUPINVESTOR PRESENTATIONH1 201419 August 2014
Operational Development (p. 3)
Outlook (p. 13)
Appendix (p. 16)
Agenda
2 Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Financial Performance (p. 7)
Key Highlights H1 2014: Organic growth and high profitability
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Medical and Industrial Sectors with satisfying development
Double-digit volume growth and high capacity utilisation compensate declining price levels due to low raw material prices
Organic growth driven by strong sales performance
Further globalisation of business shows positive results
Revenue +2.9% to EUR 464.3m in H1 2014
EBITDA +4.6% to EUR 68.8m, EBIT +5.7% to EUR 46.2m
Strong performance in challenging times
Revenue by segment H1 2014 (vs. H1 2013)
Sempermed48% (48%)
Semperform14% (14%)
Semper-trans15% (18%)
Semperflex23% (20%)
Europe60% (62%)
Asia, Africa, Others18% (16%)
North and South America 22% (22%)
Revenue by region H1 2014 (vs. H1 2013)
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Medical Sector:Sempermed on growth track
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Continuous strong market demand
Examination gloves: Double digit sales growth
Strong demand in Europe, weaker development in the USA
Non-medical area with increased sales
Surgical gloves with stable sales
Ongoing high capacity utilisation
Business Development
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Ongoing discussions with Sri Trang about the 50/50 joint venture
Realignment of glove distribution supports growth strategy
Production in Thailand continues close to full capacity
Joint VentureThailand
Industrial Sector: Ongoing strong performance
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Excellent sales performance in all business units
Markets calm down
Hydraulic hoses: Rising market shares in Europe and the USA
Industrial hoses: Strong in Europe, ongoing success in Asia
Solid volume growth but negative price effects
Positive development in Europe and South America
Negatively impact for sales in crisis regions (Ukraine, Middle East…), some deliveries have been delayed
Capacities well utilised
Semperflex
Sempertrans
Building profiles with strong sales but increased uncertainty in Russia and the Ukraine
Handrails with sound volume growth worldwide and expansion of production facility in China
Industrial moulded parts with satisfying but volatile development
Semperform
Operational Development (p. 3)
Outlook (p. 13)
Appendix (p. 16)
Agenda
6 Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Financial Performance (p. 7)
H1 2014: Ongoing growth
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H1 2014 H1 2013 %
220.6 218.3 +1.1%
29.2 28.2 +3.6%
13.3% 12.9% +0.4 pp
17.4 17.1 +1.6%
7.9% 7.8% +0.1 pp
in EUR m
Revenue
EBITDA
EBITDA margin
EBIT
EBIT margin
Earnings after tax
Earnings per share in EUR2)
CAPEX
Employees (at reporting date)
Medical Sector Industrial Sector
H1 2014 H1 2013 %
243.7 233.1 +4.5%
49.7 45.1 +10.1%
20.4% 19.4% +1.0 pp
39.1 34.3 +13.9%
16.0% 14.7% +1.3 pp
Semperit Group1)
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
1) Including Corporate Center costs of EUR 10.3m in H1 2014 (EUR 7.8m in H1 2013)2) Attributable to the shareholders of Semperit AG Holding
H1 2014 H1 2013 %
464.3 451.4 +2.9%
68.8 65.8 +4.6%
14.8% 14.6% +0.2 pp
46.2 43.7 +5.7%
10.0% 9.7% +0.3 pp
27.8 28.2 -1.5%
1.35 1.36 -0.7%
21.1 19.9 +6.0%
11,155 10,039 +11.1%
Q2 2014 Q2 2013 %
231.6 236.2 -2.0%
35.4 36.4 -2.9%
15.3% 15.4% -0.1 pp
23.9 24.9 -4.2%
10.3% 10.6% -0.3 pp
14.7 15.8 -6.7%
0.72 0.76 -5.6%
11.2 10.1 +10.8%
11,155 10,039 +11.1%
Q2 2014: Sound development but lower prices
Q2 2014 Q2 2013 %
106.5 111.6 -4.5%
13.5 16.0 -15.7%
12.6% 14.3% -1.7 pp
7.5 10.0 -25.6%
7.0% 9.0% -2.0 pp
in EUR m
Revenue
EBITDA
EBITDA margin
EBIT
EBIT margin
Earnings after tax
Earnings per share in EUR2)
CAPEX
Employees (at reporting date)
Medical Sector Industrial Sector
Q2 2014 Q2 2013 %
125.1 124.7 +0.4%
26.5 24.9 +6.5%
21.2% 19.9% +1.3 pp
21.1 19.4 +8.8%
16.9% 15.6% +1.3 pp
Semperit Group1)
1) Including Corporate Center costs of EUR 4.7m in Q2 2014 (EUR 4.5m in Q2 2013)2) Attributable to the shareholders of Semperit AG Holding
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations8
Medical Sector: Sound revenue and earnings development
in EUR m H1 2014 H1 2013 %
Revenue 220.6 218.3 +1.1%
EBITDA 29.2 28.2 +3.6%
EBITDA margin 13.3% 12.9% +0.4 pp
EBIT 17.4 17.1 +1.6%
EBIT margin 7.9% 7.8% +0.1 pp
H1 2014: Satisfying development
Double digit volume growth compensates negative price effects due to historically low raw material prices
Growth in revenue in H1 2014
Development in Q2 affected by weaker demand in the USA, higher energy costs in Malaysia and infrastructure works by the water utility company in Kamunting/Malaysia
Key Financials Sempermed
Q2 2014 Q2 2013 %
106.5 111.6 -4.5%
13.5 16.0 -15.7%
12.6% 14.3% -1.7 pp
7.5 10.0 -25.6%
7.0% 9.0% -2.0 pp
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Industrial Sector:Revenue growth and high profitability
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Semperflex
Sempertrans
Semperform
Double-digit volume growth and high capacity utilisation
Increase in efficiency and economies of scale realised
Improved profitability with >30% increase in EBITDA and EBIT
Volume growth offset by negative raw material price effects
Good utilisation in Europe and improvements in India and China
Double-digit margins despite lower revenue
Double-digit volume growth in almost all business units offset by negative price effects
Profitability below strong H1 2013 levels due to currency-driven discounts to customers
Double-digit margins in all segments
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
in EUR m H12014
H12013 % Q2
2014Q2
2013 %
Revenue 106.7 90.4 +18.0% 53.8 48.0 +12.1%
EBIT 22.0 14.8 +48.5% 11.6 7.9 +47.7%
EBITmargin 20.6% 16.4% +4.2 pp 21.6% 16.4% +5.2 pp
in EUR m H12014
H12013 % Q2
2014Q2
2013 %
Revenue 71.0 78.4 -9.4% 36.0 41.2 -12.7%
EBIT 8.2 9.8 -16.7% 4.4 5.3 -17.4%
EBITmargin 11.5% 12.5% -1.0 pp 12.1% 12.8% -0.7 pp
in EUR m H12014
H12013 % Q2
2014Q2
2013 %
Revenue 65.9 64.3 +2.6% 35.3 35.4 -0.4%
EBIT 8.9 9.7 -8.1% 5.1 6.3 -17.9%
EBITmargin 13.6% 15.1% -1.5 pp 14.6% 17.7% -3.1 pp
Strong cash position and very solid balance sheet
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations11
1) excl. non-controlling interests2) H1 2013 adjusted, see notes of interim report
in EUR m H1 2014 H1 2013 % Q1 2014
Gross cash flow 57.0 58.5 -2,5% 27.0
Cash flow from operating activities 37.1 52.6 -29.5% 19.3
Cash flow from investment activities2) -19.8 -18.7 -5.9% -8.9
High equity ratio
Positive net liquidity
Positive Cash flow from operating activities
in EUR m 30.6.2014 31.12.2013 % 30.6.2013Cash andcash equivalents 157.3 182.5 -13.8% 111.9
Corporate Schuld-schein loan and bank liabilities
139.8 139.3 +0.3% 107.7
Net liquidity 17.5 43.3 -59.5% 4.2
in EUR m 30.6.2014 31.12.2013 % 30.6.2013
Total assets 856.9 852.1 +0.6% 815.2
Equity1) 418.9 411.5 +1.8% 411.1
Equity ratio 48.9% 48.3% +0.6pp 50.4%
Operational Development (p. 3)
Outlook (p. 13)
Appendix (p. 16)
Agenda
12 Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Financial Performance (p. 7)
Outlook 2014:Focus on capacity expansion and organic growth
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Satisfactory development of the Semperit Group expected
Unchanged growth targetsUnchanged growth targets
Continuation of today’s order situation but political risks may impact demand in some local sales markets
Ongoing high capacity utilisation – expansions available step by step in 2015 Satisfactory development of revenue and earnings expected CAPEX of roughly EUR 50-60 million with a focus on capacity expansion in
Poland, Czech Republic and Malaysia
Economic development is negatively impacted by increasing political risks in Russia, Ukraine, Middle East and North Africa
Globally more cautious market and demand developments noted Raw material prices at historic lows – no further decline expected
Double-digit average revenue growth 2010-2015 (CAGR) EBITDA margin of 12 - 15% EBIT margin of 8 - 11%
New market environment – increasing political risks
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Contact and Financial Calendar
14 Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Investor [email protected]+43 1 79777 - 210www.semperitgroup.com/en/irModecenterstrasse 22 1031 Vienna, Austria
Financial calendar 2014 of Semperit18 November 2014 Report on Q1-3 2014
DisclaimerThe 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.The forecasts, plans and forward-looking statements contained in this report 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.
Financial calendar 2015 of Semperit26 March 2015 Publication of FY 2014 and
press conference28 April 2015 Annual general meeting5 May 2015 Ex-dividend day8 May 2015 Dividend payment day19 May 2015 Report on Q1 201518 August 2015 Report on H1 201517 November 2015 Report on Q1-3 2015
Operational Development (p. 3)
Outlook (p. 13)
Appendix (p. 16)
Agenda
15 Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Financial Performance (p. 7)
Solid increase in revenue despite negative price effects
Decrease in material costs due lower raw material prices
Rise in personnel expenses due to higher number of employees (esp. Sempermed) and increased wages and salaries
Higher other operating expenses due to higher maintenance costs, outgoing freight charges and strategic projects
Negative financial result due to higher allocations of profit to redeemable non-controlling interests and financial expenses for the corporate Schuldschein loan
Tax rate declines slightly from 19.6% to 19.3% (tax rate is calculated as percentage of earnings before tax and redeemable non-controlling shares)
in EUR m H1 2014
H1 2013 % Q2
2014Q2
2013 %
Revenue 464.3 451.4 +2.9% 231.6 236.2 -2.0%
Changes inventories 0.5 9.9 -94.9% 2.6 1.7 +59.6%
Own work capitalised 0.7 0.5 +32.1% 0.2 0.3 -8.3%
Other op. Income 10.3 12.4 -17.6% 4.0 5.9 -33.1%
Material costs -251.3 -264.1 -4.8% -127.1 -133.1 -4.6%
Personnel expenses -83.8 -76.6 +9.4% -42.8 -39.3 +9.0%
Other op. Expenses -72.0 -68.0 +5.9% -33.3 -35.4 -5.8%
EBITDA 68.8 65.8 +4.6% 35.4 36.4 -2.9%
Depreciation -22.6 -22.1 +2.4% -11.5 -11.5 -0.2%
EBIT 46.2 43.7 +5.7% 23.9 24.9 -4.2%
Financial result -9.8 -7.0 +40.1% -4.8 -4.0 +20.2%
EBT 36.4 36.7 -0.8% 19.1 21.0 -8.8%
Income taxes -8.6 -8.5 +1.5% -4.4 -5.2 -15.2%
Earnings after tax 27.8 28.2 -1.5% 14.7 15.8 -6.7%
EPS (EUR) 1.35 1.36 -0.7% 0.72 0.76 -5.6%
Key figures income statement Highlights H1 2014
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations16
Significant improvements in revenue and earnings
Solid balance sheet structure
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in EUR m 30.6.2014 31.12.2013 Change 31.3.2014
Non-current assets 380.5 372.7 +2.1% 370.8
Inventories 147.4 148.4 -0.7% 140.7
Trade receivables 130.7 111.2 +17.5% 127.5
Other current assets incl. deferred taxes 198.3 219.7 -9.8% 227.2
Total assets 856.9 852.1 +0.6% 866.2
in EUR m 30.6.2014 31.12.2013 Change 31.3.2014
Equity 421.4 414.2 +1.8% 426.9
Liabilities from redeemable non-controlling interests 97.0 102.4 -5.3% 106.6
Provisions incl. social capital 72.9 73.7 -1.1% 75.4
Corporate Schuldschein loan 128.5 125.8 +2.2% 125.8
Liabilities incl. deferred taxes 137.1 136.1 +0.7% 131.6
Equity & Liabilities 856.9 852.1 +0.6% 866.2
Highlights H1 2014Key figures balance sheet H1 2014 vs. FY 2013
Balance sheet total almost unchanged
Stable inventories
Cash and cash equivalents down to EUR 157.3m due to payment of dividends
Trade working capital increases to EUR 201.1m (31.12.2013: EUR 186.6m) ► 21.9% of rolling 12-months-revenues (20.6% on 31.12.2013)
Equity excl. non-controlling interests stands at EUR 418.9m (total equity at 421.4m)
Liabilities and provisions almost unchanged to end of 2013 at EUR 435.5m
Investor Presentation H1 2014 I 19 August 2014 I Investor Relations
Key figures 2009 – H1 2014
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Key performance figures
in EUR m 20091) 20101) 20111) 20121) 2013 H1 2014Revenue 588.1 689.4 820.0 828.6 906.3 464.3EBITDA 102.8 112.3 110.0 108.7 132.5 68.8EBITDA margin 17.5% 16.3% 13.4% 13.1% 14.6% 14.8%EBIT 69.6 82.3 80.4 72.5 87.8 46.2EBIT margin 11.8% 11.9% 9.8% 8.8% 9.7% 10.0%Earnings after tax 38.8 45.4 51.8 46.2 54.9 27.8Earnings per share (EPS)2), in EUR 1.89 2.21 2.52 2.25 2.65 1.35Gross cash flow 92.6 91.0 89.4 85.6 116.2 57.0Return on equity 12.5% 12.9% 13.6% 11.4% 13.3% 13.3%
Balance sheet key figures
2009¹ 2010¹ 2011¹ 2012 2013 30.06.2014Balance sheet total 531.5 593.5 616.7 824.5 852.1 856.9Equity2) 310.6 351.1 379.4 406.2 411.5 418.9Equity ratio 58.4% 59.2% 61.5% 49.3% 48.3% 48.9%Investments in tangible and intangible assets 22.7 52.5 45.1 41.2 49.7 21.1Employees (at balance sheet date) 6,490 7,019 8,025 9,577 10,276 11,155
1) 2011 values restated (refer to 2012 annual report, notes 2.18), values for 2009 and 2010 not restated.2) Attributable to the shareholders of Semperit AG Holding