Sgl Carbon Se · XETR:SGL
Sgl Carbon — FY2018 Earnings Presentation
36 slides from Sgl Carbon's earnings presentation, Mar 27, 2019
Slide 1: Year-end 2018 Analyst Conference
Year-end 2018 Analyst Conference Dr. Jürgen Köhler, CEO Dr. Michael Majerus, CFO Frankfurt am Main, 27 March 2019 1 SGL Carbon | Investor Relations Presentation
Slide 2: Agenda
Agenda. 1. Review fiscal year 2018 2. Detailed financials fiscal year 2018 3. Outlook for fiscal year 2019 4. Confirmation of mid-term growth path and profitability targets 5. Summary 2 SGL Carbon | Investor Relations Presentation
Slide 3: Review fiscal year 2018
1 Review fiscal year 2018 3 SGL Carbon | Investor Relations Presentation
Slide 4: Review fiscal year 2018. Strong year operationally and financially
Review fiscal year 2018. Strong year operationally and financially • Sales, EBIT and Net Income 2018 surpassed initial expectations • “New” SGL Carbon exceeded €1bn revenue for the first time • Group sales growth of 22% of which nearly half organic • 61% increase in Group EBIT • First time as “new”
Slide 5: Review fiscal year 2018. Strong year strategically
Review fiscal year 2018. Strong year strategically • Strategic realignment also visually emphasized with new brand concept • Former JVs with BMW and Benteler now fully part of SGL Carbon – swift and successful integration • Operations Management System (OMS) implemented at major production sites • S
Slide 6: Detailed financials fiscal year 2018
2 Detailed financials fiscal year 2018 6 SGL Carbon | Investor Relations Presentation
Slide 7: CFM. Positive developments in Automotive and Aerospace offset by declines
CFM. Positive developments in Automotive and Aerospace offset by decline in Textile Fibers, Wind Energy and Industrial Applications in € million 2018 2017 Sales revenue 422.5 331.9 EBITDA1 54.2 44.2 EBIT1 20.8 22.7 EBIT-Margin1 (in %) 4.9 6.8 ROCEEBIT (in %) 3.2 5.8 • Sales revenue increased by 27%
Slide 8: GMS. Double-digit growth in nearly all market segments
GMS. Double-digit growth in nearly all market segments in € million 2018 2017 Sales revenue 589.9 510.2 EBITDA1 98.9 70.8 EBIT1 76.0 47.8 EBIT-Margin1 (in %) 12.9 9.4 ROCEEBIT (in %) 16.5 12.1 • Sales revenue (including IFRS 15 effects) up 16 % (currency adjusted by 17%) Double digit growth in nea
Slide 9: Corporate. Result slightly below prior year level as expected
Corporate. Result slightly below prior year level as expected in € million 2018 2017 Sales revenue 35.1 18.0 EBITDA1 -25.9 -24.3 EBIT1 -32.2 -30.4 - of which for Central Innovation2 -8.0 -9.4 • Sales revenue nearly doubled due to the disposal of our former PP activities. Services to PP now recorded
Slide 10: Group. Income Statement
Group. Income Statement in € million 2018 2017 Sales revenue 1,047.5 860.1 EBITDA before non-recurring items 127.2 90.7 EBIT before non-recurring items 64.6 40.1 ROCEEBIT (in %) 5.4 4.6 Non-recurring items 16.3 8.9 EBIT 80.9 49.0 Net financing result -29.6 -56.8 Results from continuing operations be
Slide 11: Free cash flow
Free cash flow. in € million (continuing operations) 2018 2017 Cash flow from operating activities 23.6 -82.3 Capital expenditures in property, plant, equipment and intangible assets -78.1 -52.9 Cash flow from other investing activities1 -4.0 -9.5 Cash flow from investing activities -82.1 -62.4 Free
Slide 12: Balance sheet
Balance sheet. in € million 31.12.2018 31.12.2017 Equity ratio (in %) 33.5 29.6 Total liquidity (incl. discontinued operations in 2017) 181.6 382.9 Net financial debt 242.2 139.0 Net financial debt excluding SGL ACF 157.3 42.1 Gearing (net debt/equity) 0.46 0.30 Leverage ratio (net debt/EBITDA) 1.9
Slide 13: Outlook for fiscal year 2019
3 Outlook for fiscal year 2019 13 SGL Carbon | Investor Relations Presentation
Slide 14: Reporting segment outlook 2019. CFM
Reporting segment outlook 2019. CFM • Mid single digit increase in sales expected Mainly driven by higher volumes Sales in market segment Aerospace expected on prior year level and Automotive close to prior year level Slight increase in sales anticipated for Industrial Applications and Textile
Slide 15: Reporting segment outlook 2019. GMS
Reporting segment outlook 2019. GMS • Sales expected on prior year level which was boosted by initial adoption of IFRS 15 Higher price and volume effects likely to be offset by negative currency effects Despite a temporarily weaker industry outlook, we expect our sales in the market segments LED
Slide 16: Reporting segment outlook 2019. Corporate
Reporting segment outlook 2019. Corporate • Recurring EBIT anticipated close to prior year level • Prior year included a €4 million one-time impact from a land sale in Q1/2018 16 SGL Carbon | Investor Relations Presentation
Slide 17: Sneak preview on Q1/2019
Sneak preview on Q1/2019. • Group sales expected to increase mid single-digit above prior year level CFM close to prior year level GMS substantially above prior year level • Adjusted for the positive one-time effect from a land sale (€4m) in the prior year, Group recurring EBIT expected on the p
Slide 18: Group outlook 2019
Group outlook 2019. • Full year Group sales expected to increase mid single-digit mainly driven by volume increases Despite weakening of overall economic environment Prior year boosted by high effects from initial adoption of IFRS 15 • Group recurring EBIT expected around prior year level which
Slide 19: Group outlook 2019
Group outlook 2019. • Net result – continued operations expected to break even (2018: €41m) Prior year included a high positive one-time effect of €28m from the full consolidation of SGL ACF In addition, we expect substantially higher interest cost in net financial results mainly from the planne
Slide 20: Confirmation of mid term growth path and profitability targets
4 Confirmation of mid term growth path and profitability targets 20 SGL Carbon | Investor Relations Presentation
Slide 21: Growth & profitability targets
Growth & profitability targets. We increased our mid-term targets in December 2018 to reflect additional growth opportunities Group Additional 2022 targets: 1400 CAGR 8 - 9% ~€1.4 bn sales Net profit margin ~ 6–7% 1200 Free cash flow margin ~ 5% 1000 ~ €1.3 billion Business Unit 2022 targets: Group
Slide 22: SGL Carbon – our growth path
SGL Carbon – our growth path. Different mid-term growth patterns expected in GMS and CFM GMS CFM 2017 2022 2017 2022 • “Linear“ growth expected • Project-driven growth expected, back-end loaded Graphs for illustrative purposes; not to scale 22 SGL Carbon | Investor Relations Presentation
Slide 23: Mid-term: Sales growth of 8-9% p.a.
Mid-term: Sales growth of 8-9% p.a. Growth dynamics vary in the business units Composites – Fibers & Materials • Young material • Breakthrough in composites today • We have to develop our markets • Numerous trendsetting projects won in the last twelve months • Due to development times, sales and
Slide 24: CFM: Current project pipeline in market segment Automotive
CFM: Current project pipeline in market segment Automotive. Since the beginning of 2018 nominated for 13 new serial products SOP* 2019 2020 2021 2022 Newly awarded projects** 3 8 1 1 *Start of production; **Status: March 27, 2019 • Leaf springs • Trunk lids • Stiffening elements • Battery housings •
Slide 25: Controlling the entire value chain is a competitive advantage: Automotive
Controlling the entire value chain is a competitive advantage. Examples of current customer projects in Automotive BMW iNEXT • Carbon fiber and different glass and carbon fiber fabrics; delivery expected to start in 2022 Composite battery boxes for electric vehicles • Concept for high-voltage batter
Slide 26: Controlling the entire value chain is a competitive advantage: Aerospace
Controlling the entire value chain is a competitive advantage. Examples of current customer projects in Aerospace Framework contract with Airbus Helicopters • Delivery of fabrics for structural components, etc. Supply contract and cooperation with Onur Materials Services • High-performance insulatio
Slide 27: Recent weakness in market segment Wind energy
Recent weakness in market segment Wind energy. Nevertheless sales to this market help with capacity utilization in carbon fiber plants Reasons: • German wind energy customers showed particular weakness due to transition to auction system • We addressed the wind market via SGL Kümpers who had a signi
Slide 28: Recent weakness in market segment Textile Fibers
Recent weakness in market segment Textile Fibers. Necessary for growth but not decisive for future earnings development Reasons: • Our carbon fiber production is not yet large enough to absorb all textile fiber lines for PAN-precursor • However, to avoid unabsorbed fixed costs, we operate all lines.
Slide 29: Capex investments at a glance
Capex investments at a glance. Capex projects are modular and can be stretched/postponed if required Major investment projects 2019 2020 2021 • GMS Battery & other Energy Σ: Low double-digit €m LED/Semiconductors Σ: Mid double-digit €m Automotive & Transport Σ: Very low double-digit €m • CFM
Slide 30: Capex projects 2019-2021 in GMS. Fully modular in nature
Capex projects 2019-2021 in GMS. Fully modular in nature Battery and other Energy LED and Semiconductor Automotive & Transport • Capacity expansion for graphite • Expansion of SiC coating • After investments in Bonn anode materials for lithium-ion capacities in the US (Germany), expansion of our bat
Slide 31: Summary
5 Summary 31 SGL Carbon | Investor Relations Presentation
Slide 32: Summary
Summary. • Different growth dynamics in the business segments • The "new" SGL Carbon is well positioned, due to higher degree of diversification business model based on structural growth markets such as electric mobility, energy supply and digitization • SGL Carbon confirms Group outlook 2019 an
Slide 33: Q&A
Q&A 33 SGL Carbon | Investor Relations Presentation
Slide 34: Appendix
Appendix 34 SGL Carbon | Investor Relations Presentation
Slide 35: Financial calendar/contact details
Financial calendar/contact details. Financial calendar 2019 Contact March 27, 2019 Annual Report 2018 SGL Carbon SE May 7, 2019 Report on the first quarter 2019 Soehnleinstrasse 8 65201 Wiesbaden May 10, 2019 Annual General Meeting Germany August 6, 2019 Report on the first half year 2019 Phone +49
Slide 36: Important note
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 Carbon’s outlook and business development, including developments in SGL Carbon’s Composites - Fibers & Materia