Centrotec Se · HAM:CEV
Centrotec — CENTROTEC Sustainable — Q3 2018 Earnings Presentation
19 slides from Centrotec's earnings presentation, Nov 14, 2018
Slide 1: Key Financials for the third quarter of 2018
COMING UP… Key Financials for the third quarter of 2018 Wednesday, November 14, 2018 at 10:00 a.m. (CET) presented by Dr Thomas Kneip, CFO
Slide 2: CENTROTEC Sustainable AG Third Quarter Results 2018
CENTROTEC Sustainable AG Third Quarter Results 2018 Wednesday 14, 2018 CENTROTEC – The European Energy-Saving Company
Slide 3: Agenda
AGENDA § Market Overview § Key Financial Results Q3 2018 § Operational Highlights § Outlook
Slide 4: European heating market with good growth in 2018; Germany and NL slow
European heating market overall with good growth rates in 2018; but Germany and NL with slow growth YTD Q3 2018 MARKET GROWTH RATE OF HEAT GENERATING UNITS [in percent compared to previous year] Germany 1.5 Italy 15.5 Netherlands 2.9 Spain 15.4 United Kingdom 5.2 Approx. 1/3rd of Centrotec‘s revenue
Slide 5: Agenda
AGENDA § Market Overview § Key Financial Results Q3 2018 § Operational Highlights § Outlook
Slide 6: Positive progress of German heating business in a disappointing market
Positive progress of German heating business in a disappointing market; international growth REVENUE DEVELOPMENT Drivers of Revenue Development by Segment in EUR million + Positive sales in German heating market in a 4.2% slow market environment (delayed heating 161.1 season due to warm September) 1
Slide 7: Further positive impact of internationalization strategy
Further positive impact of internationalization strategy INTERNATIONAL SALES International sales growth 2017 Situation in percent 11.6 • Focused activities in 8.5 international markets, like 7.2 Italy, Spain, Eastern Europe 5.9 and China show success • Adjusted products and sales strategies for the
Slide 8: EBIT below expectations due to climate systems segment
EBIT below expectations due to different aspects from the climate systems segment EBIT DEVELOPMENT by Segment Drivers of EBIT Development [in EUR million] Climate Systems 13.4 -13.8% - Strong sales growth in (lower margin) ventilation business compensates slower growth in (higher Med. Tech. & 1.0 11
Slide 9: Decrease of operating result lead to lower EAT
Decrease of operating result lead to lower EAT EAT TRANSITION Q3 2017 VS. Q3 2018 [in EUR million] EAT (Q3 2017) 8.8 Explanation Δ EBITDA 1.9 • Temporarily decreased EBITDA Δ Depreciation 0.1 • Depreciations almost on last years level • Slightly higher interest expenses linked to promissory Δ Financ
Slide 10: 2018 investments show temporary increase in investment levels
2018 investments show temporary increase in investment levels INVESTMENTS BY SEGMENT Investments Key Investments [in EUR] 9.8 Climate Systems: +44% • New product developments 2.7 +168% • Production infrastructure 6.8 Gas Flue Systems: Med. Tech. & 1.0 • Building expansion of Dutch site Eng. Plastics
Slide 11: Cash Flow growth with relatively slow growing Working Capital
Cash Flow growth as a result of relatively slow growing Working Capital KEY BALANCE SHEET AND CASH FLOW RATIOS Net Financial Position / Equity Equity Ratio 0.05 [percent] 0.03 50.0 50.2 49.7 0.01 48.7 49.1 48.5 47.8 -0.01 -0.01 46.2 -0.03 -0.04 44.4 43.9 -0.10 41.7 -0.10 -0.10 40.5 -0.13 -0.14 39.3
Slide 12: Poor share price development in 2018
Poor share price development in 2018 SHARE PRICE SINCE BEGINNING OF 2018 120% Share price after completion of share buy back program June 14th 13.86 EUR 110% SDAX 100% Share price November 9th, EUR 15.29 90% 2018 Share price at 12.86 EUR the beginning of 2018 80% CENTROTEC 70% Januar 18 Februar 18 M
Slide 13: Agenda
AGENDA § Market Overview § Key Financial Results Q3 2018 § Operational Highlights § Outlook
Slide 14: Enlargement and modernisation of the Ubbink main plant
Enlargement and modernisiation of the Ubbink main plant DUTCH GAS FLUE SYSTEMS SITE IN DOESBURG Investment: 4 Mio. EUR Start of construction: middle of 2018 Start of Production: Q2 / 2019
Slide 15: Enlargement and modernisation of the Rolf Schmidt plant
Enlargement and modernisiation of the Rolf Schmidt plant DANISH MED. TECH. & ENG. PLAST. SITE IN KOLDING Total Investment: 2.3 Mio. EUR Start new warehouse: June 2018 Start of Production: February 2019 Start existing building: February 2019 Completion existing building: April 2019
Slide 16: Agenda
AGENDA § Market Overview § Key Financial Results Q3 2018 § Operational Highlights § Outlook
Slide 17: Guidance confirmed
Guidance confirmed OUTLOOK Revenue [in million EUR] 594.2 600 to 620 Rationale Med. Tech. & 49.5 Eng. Plastics 121.1 + Late start of heating season leads to stronger Gas Flue Systems performance in October and November + Continued international growth Climate Systems 423.6 + Strong traction in AHU a
Slide 18: Financial calendar 2018
Financial calendar 2018 FINANCIALS November 14 Publication of Q3/2018 November 26 - 28 Deutsches Eigenkapitalforum 2018 18
Slide 19: Thank you!
Thank you! This presentation contains forward-looking statements based on current expectations, assumptions and forecasts of the executive board and on currently available information. Various known and unknown risks, unpredictable developments, changes in the economic and political environment and
CENTROTEC Sustainable — Q3 2018 Earnings Presentation on 6ix