semperit investor presentation, financial year 2012
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March / April 2013
FINANCIAL YEAR 2012 SEMPERIT GROUP INVESTOR PRESENTATION
Key Highlights Financial Year 2012
Semperit Group Revenue by regions
Semperit Group Revenue by segments
Sempermed 46%
Semperform 15%
Semper- trans 17%
Semperflex 22%
Europe 58%
Asia, Africa, RoW 16%
North- & South-America 26%
Investor Presentation I Financial Year 2012 I March / April 2013 2
Medical Sector: Entering a new phase of global growth
Industrial Sector: Best year in company history
• Takeover of Latexx Partners as strategic milestone • Revenue increased through acquisition • Decline in results due to price pressure caused by
excess capacity and competition
• Record revenue of EUR 828.6m in 2012 • Average growth rate of 9.6% from 2010 to 2012 • EBITDA with EUR 108.7m slightly below 2011 • Second best net result in company history (EUR 46.2m) • High cash and cash equivalents of EUR 133.3m • Unchanged dividend for 2012: EUR 0.80/share (proposal)
• Increase in market shares due to focus on core products, optimisation measures and investments
• Positive development in all segments despite difficult market environment
• High margins and best sector performance ever
Semperit on growth path
Challenging market environment
• Raw materials marked by volatile price developments
• Prices for natural rubber around 10% below 2011
• Synthetic rubber started with significant price increase and was at the end of 2012 around 10% below 2011
Medical Sector • Medical gloves market mostly non-cyclical • Pricing pressure due to overcapacities and competition
Industrial Sector • Relevant customer industries (energy, construction or
engineering) were influenced by weak economic cycle
• Semperit achieved excellent profitability despite this challenging environment
Macroeconomic downturn
Decreasing prices for raw materials
Impact on Semperit Group
• Slowdown of world economy, “Euro crisis”
• Weaker demand for investment goods and consumer durables
3
GDP growth in %
Growing global gloves market in bn pieces
1.5% 1.8%
9.3%
-0.4%
2.2%
7.9%
-0.1%
1.9%
8.4%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Eurozone USA China
2011 2012 2013e
150
200
2010 2015Sources: World Bank, Semperit Group estimates
Investor Presentation I Financial Year 2012 I March / April 2013
Operational Performance
10% volume growth including Latexx Partners, price decrease due to excess capacities and raw material prices
Revenue increased by 3% due to Latexx Partners acquisition
One-time effects in Thailand (storm damage, higher energy prices, start up costs in Surat Thani) put a strain on results/margins
Sempermed Syntegra UV surgical glove
Sempercare Nitrile Aloe examination glove
Business development
Product innovations
Office in Singapore
Worldwide management of glove business
Proximity to market, production and clients
Key Financials Sempermed
Sempermed 2012: Entering a new phase of global growth
5
* 2011 adjusted, see notes of annual report
in EUR m 2012 2011* change
Revenue 383.5 371.5 +3.2%
EBITDA 41.5 44.4 -6.5%
EBITDA margin 10.8% 12.0% -1.2 pp
EBIT 27.6 34.4 -19.8%
EBIT margin 7.2% 9.3% -2.1 pp
Investor Presentation I Financial Year 2012 I March / April 2013
Weak global market development
European and US markets performed better than Asia
High inventory levels in the Chinese engineering sector led to weak demand in Southeast-Asia
Increase in market share and further capacity investments
Positive price effects in all business units
Lower volumes (industrial hoses and elastomer sheeting)
Improved results through optimised resources management
Market
Business development
in EUR m 2012 2011* change
Revenue 180.6 186.9 -3.4%
EBITDA 38.6 35.2 +9.7%
EBITDA margin 21.4% 18.8% +2.6 pp
EBIT 27.6 24.5 +12.5%
EBIT margin 15.3% 13.1% +2.2 pp
Key Financials Semperflex
Semperflex 2012: Outstanding results
6
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
Stable and long-lasting market growth driven by global market trends and project business
Growth rates of about 2-3% per year
Successful positioning as an alternative to other big suppliers and improved product mix
Further globalisation progress with success stories in South America/Chile and projects in Africa
Significantly optimised resources management
Substantial results- and margin improvement
Market
Business development
in EUR m 2012 2011* change
Revenue 143.8 147.0 -2.2%
EBITDA 21.2 14.4 +47.0%
EBITDA margin 14.7% 9.8% +4.9 pp
EBIT 16.0 10.8 +47.5%
EBIT margin 11.1% 7.4% +4.7 pp
Key Financials Sempertrans
Sempertrans 2012: Continous earnings improvement
7
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
Difficult market for construction profiles (weak construction industry)
Stable demand for ropeway liners and ski foils
Growth in handrails but aggressive pricing situation
Positive business development in nearly all business units
Volume increase in construction profiles and handrails
Earnings without one-time effects at same level
Market
Business development
in EUR m 2012 2011* change
Revenue 120.7 114.6 +5.4%
EBITDA 20.4 23.6 -13.4%
EBITDA margin 16.9% 20.6% -3.7 pp
EBIT 14.6 18.2 -19.6%
EBIT margin 12.1% 15.9% -3.8 pp
Key Financials Semperform
Semperform 2012: Stable development
8
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
Financial Performance
2012 2011* %
383.5 371.5 +3.2%
41.5 44.4 -6.5%
10.8% 12.0% -1.2 pp
27.6 34.4 -19.8%
7.2% 9.3% -2.1 pp
5,265 4,834 +8.9%
in EUR m
Revenue
EBITDA
EBITDA margin
EBIT
EBIT margin
Employees (avg.)
Medical Sector Industrial Sector
2012 2011* %
445.1 448.5 -0.8%
80.2 73.2 +9.6%
18.0% 16.3% +1.7 pp
58.2 53.5 +8.7%
13.1% 11.9% +1.2 pp
2,986 2,967 +0.6%
2012 2011* %
828.6 820.0 +1.0%
108.7 110.0 -1.3%
13.1% 13.4% -0.3 pp
72.5 80.4 -9.8%
8.8% 9.8% -1.0 pp
8,305 7,833 +6.0%
* 2011 adjusted, see notes of annual report
2012 driven by strong Industrial Sector
10
Group Total
Investor Presentation I Financial Year 2012 I March / April 2013
Industrial Sector: profitability increase
11
Semperflex
Sempertrans
Semperform
Strong profit growth despite economic slowdown
Weaker demand in Asia
Improved raw material management and production planning
Significant profit and margin improvement
Strike in India shadows revenue
Product mix optimisation
Earnings on like-for-like basis at 2011 level
Strong revenue in construction profiles and handrails
Optimisation of compound mix continues
in EUR m 2012 2011* change
Revenue 180.6 186.9 -3.4%
EBIT 27.6 24.5 +12.5%
EBIT margin 15.3% 13.1% +2.2 pp
in EUR m 2012 2011* change
Revenue 143.8 147.0 -2.2%
EBIT in EUR m 16.0 10.8 +47.5%
EBIT margin 11.1% 7.4% +3.7 pp
in EUR m 2012 2011* change
Revenue 120.7 114.6 +5.4
EBIT in EUR m 14.6 18.2 -19.6%
EBIT margin 12.1% 15.9% -3.8 pp
Sustainable improvement of results in the Industrial Sector
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
10.6 11.2 11.5 12.3 13.5
02468
10121416
2008 2009 2010 2011 2012
Medical Sector: Revenue growth in highly competitive markets
12
in EUR m 2012 2011* change
Revenue 383.5 371.5 +3.2%
thereof Latexx Part. 14.5 – –
EBITDA 41.5 44.4 -6.5%
EBITDA margin 10.8% 12.0% -1.2 pp
Depreciation -13.9 -10.0 +39.2%
EBIT 27.6 34.4 -19.8%
EBIT margin 7.2% 9.3% -2.2 pp
Sales increase but price decline
Significant volume increase: +10%
Increase in revenue by 3.2%
Negative pricing effect driven by lower raw material prices
Double digit EBITDA margin
EBIT also impacted by higher depreciation
Key Financials Sempermed
Sales of examination gloves in bn pieces
+ 9.8%
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
Excellent liquidity
13
• High cash and cash equivalents of EUR 133.3m by
end of 2012
• Significant improvement of the cash flow from trade
working capital
• Cash flow from financing activities increased from
EUR -24.4m in 2011 to EUR 80.7m in 2012, initiated
by loan agreement and reduced dividend payment
• Cash flow from investing activities increased to
EUR -151.6m, driven by Latexx Partners acquisition
Highlights 2012
+ 36%
Cash and cash equivalents in EUR m
97.9
133.3
0
20
40
60
80
100
120
140
31.12.2011 31.12.2012
Investor Presentation I Financial Year 2012 I March / April 2013
Superior financial stability
14
in EUR m 2012 2011* change
Total assets 824.5 616.7 +33.7%
Equity1) 406.2 379.4 +7.1%
Equity ratio 49.3% 61.5% -12.2 pp
in EUR m 2012 2011* change
Cash and cash equiv. 133.3 97.9 +36.2%
Bank liabilities 118.5 6.2 +112.3m
Net liquidity 14.8 91.7 -79.9m
2012 2011* change
Dividend proposal (EUR) 0.80 0.80 –
Payout ratio 35.6% 31.7% +3.9 pp
Total amount (EUR m) 16.5 16.5 –
High financial stability even after groundbreaking company acquisition
Strong positive net liquidity
Unchanged dividend
* 2011 adjusted, see notes of annual report 1) excl. non-controlling interests
Investor Presentation I Financial Year 2012 I March / April 2013
Integration of Latexx Partners
15
Payment of purchase price of EUR 131m (100% investment would be 153.3m)
Bank financing of EUR 100.0m
Acquisition cost in 2012 of EUR 4m
Goodwill after purchase price allocation of EUR 97.6m
Non-controlling interests (minorities) of EUR 22.3m
Latexx Partners is being consolidated since November 2012
Sales contribution of EUR 15m in November and December 2012
Consolidation of Latexx Partners
Financial effects
Investor Presentation I Financial Year 2012 I March / April 2013
Investments in maintenance and growth
• Sempermed: New line in Surat Thani completed • Semperflex: Maintenance and growth
investments in Austria, Czech Republic, Thailand and China
Capital expenditure
Projects completed in 2012
CAPEX 2013
• CAPEX of EUR 50m planned in 2013 • Thereof 50% in maintenance,
50% in growth projects
CAPEX and Depreciation 2010-2012 in EUR m
16
• Total CAPEX of EUR 41.2m after EUR 45.1m in 2011
• CAPEX to depreciation ratio down to 1.1x from 1.5x in 2011
52.5 45.1
41.2
29.9 29.7 36.2
0
10
20
30
40
50
60
2010 2011 2012
Investments Depreciation
Investor Presentation I Financial Year 2012 I March / April 2013
Outlook
Sempermed Semperflex Sempertrans Semperform
Medical Sector Industrial Sector
Focus on Latexx Partners integration • Combined raw material sourcing and procurement
• Cross-selling sales
• Increase of utilisation
• Programme for energy efficiency
Increase market share • Market remains difficult
• Sales and marketing activities in growing markets
• Focus on expansion in Americas and Asia
Growth by new products and markets • Unchanged stable market
• New, innovative products
• Further optimisation of production & distribution
Stable Development • Stable market environment
• Compensation of pricing pressure by excess volumes
• Consolidation of products
Further growth due to Latexx Partners integration Continued pricing pressure in Medical Sector Industrial business will face challenges Stable year 2013 expected
2013 – a stable year expected
18 Investor Presentation I Financial Year 2012 I March / April 2013
Outlook
Unchanged growth targets
Investments and Dividends
• Average double digit growth from 2010-2015 (CAGR) • EBITDA margin of 12 - 15% • EBIT margin of 8 - 11 %
• Unchanged economic situation in first half of 2013 • Brightening of the market and demand stimulation in Q2 2013 expected at the earliest
• CAPEX of EUR 50m in maintenance and growth • Dividend: unchanged payout ratio of about 30%
Market view
19 Investor Presentation I Financial Year 2012 I March / April 2013
Contact
Investor Relations
+43 1 79777 - 210
www.semperitgroup.com/en/ir
Modecenterstrasse 22
1031 Vienna, Austria
Financial calendar 2013 of Semperit April 30, 2013 Annual General Meeting, Vienna May 7, 2013 Ex-Dividend Day May 14, 2013 Dividend Payment Day May 14, 2013 Report on Q1 2013 August 13, 2013 Report on H1 2013 November 12, 2013 Report on Q1-3 2013
20 Investor Presentation I Financial Year 2012 I March / April 2013
Disclaimer
The 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.
21 Investor Presentation I Financial Year 2012 I March / April 2013
APPENDIX
Highlights 2012
Income statement: record in revenue, satisfying EBITDA
• Material costs down due to active raw material management and lower prices
• Personnel expenses and other operating expenses increased due to higher wages and acquisition costs Latexx Partners
• Increase in depreciation due to new capacities in Thailand and consolidation of Latexx Partners
• Tax rate declined to 16.7% after 18.6% in 2011
• Unchanged dividend proposal of EUR 0.80 per share: payout ratio 35.6% (2011: 31.7%)
in EUR m 2012 2011* change
Revenue 828.6 820.0 +1.0%
Other op. Income 32.8 33.8 -3.0%
Material costs -501.0 -513.1 -2.3%
Personell expenses -127.4 -117.9 +8.1%
Other op. expenses -124.2 -116.6 +6.5%
EBITDA 108.7 110.0 -1.3%
Depreciation -36.2 -29.7 +21.8%
EBIT 72.5 80.4 -9.8%
Financial Result -14.0 -13.4 +4.4%
EBT 58.5 66.9 -12.6%
Income taxes -12.2 -15.2 -19.3%
Earnings after tax 46.2 51.8 -10.7%
EPS (EUR) 2.25 2.52 -10.7%
DPS (EUR) 0.80 0.80 -
Key Figures Income Statement 2012 vs. 2011
23
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013
Highlights 2012
Solid balance sheet structure
• Increase in total assets due to Latexx Partners consolidation
• Tangible fixed assets +23.6% to EUR 268m (2011: EUR 217m)
• Intangible assets increased from 6m to EUR 113m due to Latexx Partners acquistion
• Inventories and trade accounts receivables increased only due to Latexx Partners acquisition, effective trade working capital management
• Strong increase in equity due to positive result and non-controlling interests
• Increase in liabilities due to partial usage (EUR 100m) of a EUR 180m credit line
in EUR m 2012 2011* change
Fixed Assets 391.1 233.4 +67.5%
Inventories 142.5 137.6 +3.5%
Trade accounts receivable 120.2 114.3 +5.1%
Current assets incl. def. taxes 170.8 131.3 +30.1%
ASSETS 824.5 616.7 +33.7%
Key Figures Balance Sheet 2012 vs. 2011
in EUR m 2012 2011* change
Equity 428.0 379.4 +12.8%
Liablities from shares 110.1 97.3 +13.1%
Provisions incl. social capital 64.8 61.8 +4.9%
Other liablities incl. def. tax 221.6 78.2 >100%
EQUITY & LIABILITIES 824.5 616.7 +33.7%
24
* 2011 adjusted, see notes of annual report
Investor Presentation I Financial Year 2012 I March / April 2013