Sgl Carbon Se · XETR:SGL
Sgl Carbon — 9M 2020 Earnings Presentation
20 slides from Sgl Carbon's earnings presentation, Nov 12, 2020
Slide 1: Investor & Analyst Conference Call
Investor & Analyst Conference Call Wiesbaden November 12, 2020 Dr. Torsten Derr (CEO), Dr. Michael Majerus (CFO) and Thomas Dippold (Member of the Board of Management) 1 SGL Carbon | Investor and Analyst Call 9M 2020 | November 2020
Slide 2: Results 9M/2020 / Outlook 2020
1 Results 9M/2020 2 Outlook 2020 2
Slide 3: Composites – Fibers & Materials
Composites – Fibers & Materials. Benefited from strong wind energy business and earnings improvement measures in € million 9M/2020 9M/2019 Δ Sales revenue 283.4 328.6 -14% EBITDA1 32.0 24.1 33% EBIT1 10.6 -1.8 - EBIT1-Margin (in %) 3.7 -0.5 - ROCEEBIT 1 (in %) 0.7 -0.3 - • Q3/2020 recovered from Cov
Slide 4: Graphite Materials & Systems
Graphite Materials & Systems. Increased Covid-19 impact in Q3/2020 due to late-cyclical nature of business in € million 9M/2020 9M/20191 Δ Sales revenue 373.1 480.1 -22% EBITDA 59.1 94.8 -38% EBIT 35.4 74.5 -52% EBIT-Margin (in %) 9.5 15.5 - ROCEEBIT (in %) 8.7 17.5 - • Increasing impact from Covid-
Slide 5: Corporate. Sales and EBIT benefited from compensation agreement with Showa Denko
Corporate. Sales and EBIT benefited from compensation agreement with Showa Denko in € million 9M/2020 9M/20191 Δ Sales revenue 27.0 23.7 14% - of which Central Innovation 1.1 0.7 57% EBITDA -5.1 -11.7 56% Recurring EBIT2 -12.1 -18.5 35% EBIT (reported) -13.6 -18.5 27% - of which Central Innovation -
Slide 6: Group P&L
Group P&L. Despite improved net financial result, significant recurring EBIT decline leads to slight loss in net result in € million 9M/2020 9M/2019 Δ Sales revenue 683.5 832.4 -18% EBITDA before non-recurring items 86.0 107.2 -20% EBIT before non-recurring items 33.9 54.2 -38% ROCEEBIT (in %) 2.3 4
Slide 7: Group balance sheet
Group balance sheet. Improved liquidity and solid financial ratios as of September 30, 2020 in € million 30.09.2020 31.12.2019 Equity ratio (in %) 25.6 27.8 Total liquidity 166.8 137.1 Net financial debt 262.4 288.5 Gearing (net debt/equity) 0.71 0.69 Leverage ratio (net debt/EBITDA) 2.66 2.40 • Equ
Slide 8: Group cash flow
Group cash flow. Positive free cash flow due to effective working capital management and lower capex in € million (continuing operations) 9M/2020 9M/2019 Cash flow from operating activities 68.8 29.9 Cash flow from investing activities -25.1 -39.5 • Capital expenditures in property, plant, equipment
Slide 9: Restructuring expenses and impairment loss in Q4/2020. Recap
Restructuring expenses and impairment loss in Q4/2020. Recap Restructuring expenses: • Total restructuring costs of approx. €40m of which slightly more than half to be recorded in Q4/2020 Impairment loss in reporting segment CFM: • Non-cash impairment charge of €80-100m to be recorded in non-recurri
Slide 10: Results 9M/2020 / Outlook 2020
1 Results 9M/2020 2 Outlook 2020 10
Slide 11: Reporting segment outlook FY2020. CFM
Reporting segment outlook FY2020. CFM • Sales revenues to decline by approximately 10% − Cost saving capacity adjustments (conversion of one line to precursor for carbon fiber production and idling of two lines) in Textile Fibers and Covid-19-driven demand decline from Automotive − Partially compens
Slide 12: Reporting segment outlook FY2020. GMS and Corporate
Reporting segment outlook FY2020. GMS and Corporate GMS • Sales revenues to decline by approx. 20% due to weaker demand in all market segments with exception of Semiconductors, which is expected to grow slightly • Recurring EBIT expected to decline by at least 50% YoY − Due to reduced sales revenue
Slide 13: Group outlook FY 2020
Group outlook FY 2020. Net result guidance adjusted for impairment charge and restructuring provisions • Unchanged: Full year Group sales revenues to decline by 15-20% YoY; full year operating Group recurring EBIT expected to be slightly positive • Group recurring EBIT positively impacted by one-tim
Slide 14: Restructuring program resolved. Recap
Restructuring program resolved. Recap New operating Improve model performance New organization and >€100m earnings improvement management measures 1 from 2023 onwards Clear responsibilities >500 individual measures identified Rigorous consequence management >500 reduction in FTE1 Incentives to be al
Slide 15: Focus now on performance, later on profitable growth. Recap
Focus now on performance, later on profitable growth. Recap Short term Mid term Long term • Secure financial headroom • Achieve satisfactory net debt • Step up investments in market • Stabilize operational level opportunities performance • Selective investments Exploit growth opportunities Reduce co
Slide 16: Q&A
Q&A 16
Slide 17: Backup
Backup 17
Slide 18: Sustainability at SGL Carbon
Sustainability at SGL Carbon. As a technology-based company, we are aware of our environmental and social responsibility E • Environmental Energy management system ISO S • Social SGL Carbon Code of Conduct G • Governance Distinct sustainability targets for the 50001-certified from DQS and DEKRA resp
Slide 19: Update on Covid-19 impact on our operations
Update on Covid-19 impact on our operations. • In spring of 2020, SGL Carbon had successfully implemented Corona countermeasures early in order to prevent a spread of the COVID 19 virus within the organization and the sites • These countermeasures were eased during the summer months but have now bee
Slide 20: Important note
Important note. This presentation contains statements relating to certain projections and business trends that are forward-looking, including statements with respect to SGL Group’s outlook and business development, including developments in SGL Group’s Composites - Fibers & Materials and Graphite Ma