Jacquet Metals SA · EURONEXT:JCQ
Jacquet Metals SA — FY2019 Earnings Presentation
24 slides from Jacquet Metals SA's earnings presentation, Mar 12, 2020
Slide 1: 2019 annual results
2019 annual results M a r c h 1 2 th, 2 0 2 0 A leader in the distribution of specialty steels A leader in the distribution of specialty steels
Slide 2: Group overview
GROUP OVERVIEW After the s ale of Abraservice in October 2019 Sales breakdown Sales 1.6 Md€ Staff 3,039 Outside Europe Germany 2% 38% Distribution centers 103 Other Europe Countries 25 23% North America 6% Spain 7% Worldwide footprint Netherlands France 7% Italy 9% 8% A leader in the distribution of
Slide 3: 3 divisions
3 DIVISIONS Stainless steel Stainless steel long Engineering steels quarto plates products Sales Outside Europe USA - Canada Outside Europe Germany Outside Europe 26% 2% Germany 7% 41% 2% 46% Other Europe 30% Other Other €343m Europe €467m €818m Europe 47% 44% Germany France 12% 10% Netherlands Ital
Slide 4: 2019 – Global situation and headlines
2019 – GLOBAL SITUATION AND HEADLINES > 2019 situation • Erosion of the demand, particularly from the second half onwards • 3 divisions: o IMS group: division impacted by the slowdown in the European manufacturing sector (-13% y.o.y.), especially in Germany o STAPPERT: limited business decline (-4%
Slide 5: Division Jacquet – Launch of Philadelphie site (USA)
DIVISION JACQUET – LAUNCH OF PHILADELPHIE SITE (USA) A leader in the distribution of specialty steels 5
Slide 6: Start of 2020 financial year – Global situation
START OF 2020 FINANCIAL YEAR – GLOBAL SITUATION > January – February 2020 • Challenging market conditions • No improvement expected during the 2020 first half > Coronavirus – Status as of to date • China o 1% of consolidated sales o Less than 20% of Group’s purchases o The potential impact of produc
Slide 7: Future main development areas
FUTURE MAIN DEVELOPMENT AREAS USA Germany Italy United Kingdom Products Aluminium Aeronautics A leader in the distribution of specialty steels 7
Slide 8: 2019 – Key figures
2019 – KEY FIGURES • Sales €1.6 Bn -7.5% y.o.y. Income • EBITDA €73 m 4.5% of sales statement • Net income (Group share) €25 m (incl. €8.5 m of capital gain for Abraservice) • Inventories €442 m -€36 m y.o.y. Cash • Cash-flow from operating activities +€59 m flow • CAPEX €30 m particularly in North
Slide 9: Sales
SALES Volume 3.5% - €130 m -7.5% y.o.y. 2.1% -1.9% -4.5% -120 y.o.y. -8.0% -5.0% 0.5% -6.8% In €m -9.9% -11.1% Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 PF Q2 19 PF Q3 19 PF Q4 19 PF Price Sequential +2.9% +3.3% +2.9% -1.6% -1.7% +1.3% +0.1% +1.0% 11.9% 7.3% 5.9% 4.6% 3.4% y.o.y. 0.7% 0.2% -2.2% Q1 18 Q2 18 Q3
Slide 10: Sales by division
SALES by division • Business growth in North America, • Limited decline on main markets • Global slowdown in the Europe, Germany, Italy and the Netherlands especially in Germany +€11 m -€19 m -€124 m -13.1% -0.1% -3.5% -0.4% -0.1% 3.6% A leader in the distribution of specialty steels 10
Slide 11: Gross margin
GROSS MARGIN Group Divisions - €48 m -€35.5 m 213 In €m 422 -31 -16 374 177 -€0.7 m -€12.3 m In €m 106 105 104 92 23.2% In % of sales 31.9% 30.6% 21.3% 19.6% 22.6% 21.7% In % of sales 24.2% A leader in the distribution of specialty steels 11
Slide 12: Current operating expenses
CURRENT OPERATING EXPENSES -0.8 % 334 331 In €m In % of sales 19.1% 20.5% 2018 2019 proforma A leader in the distribution of specialty steels 12
Slide 13: Operating margin
OPERATING MARGIN EBITDA: €73 m (4.5 % of sales) -€29 m In €m 102 73 Adj. operating income by division (excl. IFRS 16) 37 In €m -€11.4 m In % of sales 5.9% 4.5% -€4.8 m -€25.5 m 24 21 2018 2019 proforma 16 12 11 Adj. operating income: €43 m (2.7 % of sales) In % of sales 6.4% 4.8% 4.9% 2.6% 3.9% 1.4%
Slide 14: Income statement
INCOME STATEMENT (in €m) 2019 2018 PF Sales 1,614.6 1,745.0 Net financial expense (10.8) (10.7) Of which IFRS 16 effect (1.7) - Coporate income tax (13.2) (20.5) Taxe rate 45.8% 25.4% Net income from discontinued operations 12.0 5.0 Net income (Group share) 24.5 61.6 A leader in the distribution of
Slide 15: Cash flow / Balance sheet
CASH FLOW / BALANCE SHEET Operating cash flow: +€59 m Gearing : 46.1% In €m Non-current assets (including goodwill) 210 379 Shareholders’ equity Operating cash flow: +€59 m In €m Net operating WCR (of which inventories €442 m) 417 Cash: €206 m 215 -54 175 Net debt 30 -25 12 -14 Borrowings: 17 175 -4
Slide 16: Borrowings as of December 31, 2019
BORROWINGS AS OF DECEMBER 31, 2019 • New syndicated revolving loan in December 2019 for €70 m • €674 m of financing lines used, 57% of which were used • Cash amounted to €206 m Authorized at Used at Syndicated revolving loan €m % used 31.12.2019 31.12.2019 • Amount: €125 m (used: €0 m) Jacquet Metal
Slide 17: Appendices
APPENDICES A leader in the distribution of specialty steels
Slide 18: Positioning
POSITIONING Commodities steel market 95% Specialty steel market 5% Typology: Typology: Large volume Targeted applications “Volumes” strategy “Margin” strategy Players: 1.9 Bn Players: tons Aperam, Amari Metal, ThyssenKrupp Materials, Ta Chen International, Kloeckner Jacquet Metal Service APPENDICES
Slide 19: Added value
ADDED VALUE Suppliers Jacquet Metal Service Customers ▪ Purchasing prices ▪ 60,000 customers, average ▪ 20 suppliers for 45% of ▪ Storage of specialty steels invoice < € 3,000€ purchases ▪ Managing price fluctuations ▪ Finishing services ▪ Delivery time +/- 1 week ▪ Delivery time from 1 to 12 months
Slide 20: Sectors
SECTORS Stainless steel Stainless steel Engineering steels quarto plates long products Sectors > Chemistry > Chemistry > General mechanics > Agri-food industry > Agri-food industry > Transport > Gas treatment and storage > Gas treatment and storage > Public works vehicles > Energy > Energy > Farm eq
Slide 21: Income statement
INCOME STATEMENT €k 2019 2018 PF1 Sales 1,615 1,745 Gross margin 374 422 % of sales 23.2 % 24.2 % Operating expenses (303) (321) Net depreciation and amortization (34) (18) Net provisions 2 4 Gain/(losses) on disposals of non-current assets 0 4 Operating income 40 91 Net financial expense (11) (11)
Slide 22: Balance sheet
BALANCE SHEET €m 31.12.18 31.12.19 Goodwill 68 66 Net non-current assets 156 143 Right-of-use assets 1 - 85 Net inventory 493 442 Net trade receivables 182 152 Other assets 100 91 Cash 119 206 Total Assets 1,119 1,186 Shareholders’ equity 377 379 Provisions (including provisions for employee benefit
Slide 23: Stock information
STOCK INFORMATION Stock information Shareholder structure (% voting rights) * 2019 Number of shares at end of period Number of shares 24 028 438 Market capitalization at end of period €k 370 519 Eric Jacquet / JSA High € 18.46 40.32% (57.28%) Low € 13.76 Price at end of periode € 15,42 Other Average
Slide 24: Euronext Paris ISIN: FR0000033904
Euronext Paris ISIN : FR0000033904 A leader in the distribution of specialty steels A leader in the distribution of special steels