Mersen Sa · EURONEXT:MRN
Mersen Sa — Investor Presentation (November 2020)
23 slides from Mersen Sa's investor presentation, November 2020
Slide 1: Developing the best technologies for the industries of the future
November 2020 Developing the best technologies for the industries of the future
Slide 2: Mersen in a nutshell
Mersen in a nutshell A sustainable, growing and profitable company (€950m sales in 2019) An industrial company with a human scale (6,500 employees around the world) An energy to innovate for 130 years (16 R&D centers) A company attentive to meet and anticipate customer demands for their mission-crit
Slide 3: What makes Mersen unique?
What makes Mersen unique? Competitive Positioned on Excellence to drive Expertise differentiation attractive markets cash-flow High barriers Solid balance sheet Sustainable and cash generation of entry (graphite development Advanced Materials formulation, norms and markets (Renewable High gross marg
Slide 4: An historical and strong ESG approach
An historical and strong ESG approach Contribution to the ecological transition E Reduction of the environmental footprint of our plants environment Social and Environmental performance of our supplier S Diversity social Health and Safety culture Collective intelligence G Ethical behavior governance
Slide 5: Advanced Materials: High value-added customized solutions
Advanced Materials: High value-added customized solutions relying on a unique materials expertise ANTICORROSION EQUIPMENT GRAPHITE SPECIALTIES POWER TRANSFER TECHNOLOGIES N° 1-2 Worldwide N° 1-2 Worldwide N° 1-2 Worldwide Engineering systems Columns, reactors and Laser galvo scanning Wafers carrier
Slide 6: Electrical Power: A unique portfolio serving two key applications
Electrical Power: A unique portfolio serving two key applications ELECTRICAL PROTECTION N°2 Worldwide in industrial fuses Coverage of all standards worldwide: UL, IEC, DIN, etc. Competitors: Eaton(US), Littelfuse (US) Fuses and fuse holders Surge protection devices POWER CONVERSION N°2 Worldwide (co
Slide 7: A global footprint to maximize customer intimacy
A global footprint to maximize customer intimacy Europe 24 sites North America 14 sites Asia Pacific 13 sites Present in all large industrial South America/Africa countries with dedicated plan 5 sites per business unit Multi-activities plants in other countries (20% of total sales) Situation as of D
Slide 8: Strong position in sustainable development markets, key drivers for the future
Strong position in sustainable development markets, key drivers for the future SALES IN €M 1000 900 800 EV Rail 700 Sustainable development Markets > 50% Electronics 600 2016-2019 CAGR Wind Solar 500 +10% Water treatment Energy efficiency 400 Chemicals 300 Aeronautics Other markets 200 2016-2019 CAG
Slide 9: Acquisitions to speed up growth
Acquisitions to speed up growth COLUMBIA MERSEN GALAXY FTCAP LGI AGM ITALY CIRPROTEC IDEALEC GAB NEUMANN AMERICARB MERSEN HATAN CALY TECHNOLOGIES SHAPE ACCELERATE EXPANSION STRENGTHEN DEVELOP THE FUTURE in sustainable development EXPERTISE A SERVICES BUSINESS by acquiring markets and accelerate inno
Slide 10: Four years of development and transformation strengthened Mersen
Four years of development and transformation strengthened Mersen OPERATING INCOME BEFORE FREE SALES (€m) CASH FLOW* FINANCIAL LEVERAGE NON-RECURRING ITEMS (€m) (€m) (x EBITDA) 2016-2019 CAGR 2016-2019 CAGR 2016-2019 CAGR 2016-2019 +8% +19% +6% -0.6x 950 102 2.1x 759 60 60 1.5x 51 2016 (restated) 201
Slide 11: 9 months 2020 Business Performance
01 9 months 2020 Business Performance
Slide 12: Covid-19 impact particularly significant in April and May – slight rebound in Q3
The Covid-19 impact was particularly significant in April and May – Slight rebound in Q3 Sales in €m €225m €205m €208m Negative 80 organic growth (%) -6% 75 -9% 70 65 -10% 60 55 50 45 -23% -23% 40 Q1 April May June Q3 12 November 2020
Slide 13: Mersen's 9 months 2020 Sales by geography: €638m
Mersen’s 9 months 2020 Sales by geography: Asia stands out North America -14% Europe -17% vs 9m 2019 vs 9m 2019 South America / Africa -20% Asia Pacific -3% vs 9m 2019 vs 9m 2019 €638m -12.2% Organic growth (in %) 13 November 2020
Slide 14: Sustainable development markets are showing more resilience
Sustainable development markets are showing more resilience Sales in €m Organic growth 250 0% -5% 200 Major Sustainable development sales -10% 150 -15% 100 -20% 50 -25% 0 -30% Q1 2020 Q2 2020 Q3 2020 14 November 2020
Slide 15: Strong financial leverage and solid balance-sheet
Strong financial leverage and solid balance-sheet Net debt Confirmed credit lines drawn down at Sept 30, 2020 in €m in €m 218 218 €140m undrawn credit lines €90m cash available Syndicated loan USPP Schuldschein Net debt / EBITDA 1.5 Net debt / Equity 37% 130 80* 60 45 Dec. 2019 Sept 2020 2020 2021 2
Slide 16: 2020 Guidance
02 2020 Guidance
Slide 17: A contrasted picture calling for targeted actions (1)
A contrasted picture calling for targeted actions (1) Highly buoyant markets requiring on-going investment SiC semicon: Investments underway in Europe for flexible and rigid insulating felt solutions to meet demand in Europe and Asia. Local production of felts for the semiconductor manufacture
Slide 18: A contrasted picture calling for targeted actions (2)
A contrasted picture calling for targeted actions (2) Adaptation to structural decline: aeronautics, chemicals markets Restructuration on sites highly dependent on these markets Addressing the current context Furlough measures when needed Ongoing review of the industrial efficiency New modern
Slide 19: 2020 guidance
2020 guidance Organic decrease of sales for the full year: between -12% and -14% Operating margin before non recurring items: between 7% and 8% €55m of non-recurring costs (of which €30m are non cash) €20 m are linked to social costs and other €20 m depreciation of goodwill + €10m deprecia
Slide 20: Appendix
Operating result Appendix Cash Flow Shareholding 20 September 2020
Slide 21: A largely negative volume effect partly offset by cost flexibilization
A largely negative volume effect partly offset by cost flexibilization Current Operating result in €m 11.1% in % H1 2019 Current Operating margin 11.1% 8.1% Volume effect -5.3 Cost flexibilization +1.3 Price effect slightly Impact of productivity +1.4 positive 54 Cost inflation -1.1 No mix effect St
Slide 22: Operating Cash-Flow
Higher cash flow generation than in H1 2019, in spite of the context FCF in €m Seasonality always unfavourable in the first half of the year Operating cash flow after Capex 7 11 WCR: 28% of sales* Safety stock build-up 35 Stable customer delays Increase in trade receivables (seasonality) Operating C
Slide 23: Corporate governance structure
Shareholding structure as of Dec. 2019 Abides by the Dual structure CORPORATE GOVERNANCE STRUCTURE BPI - CDC 15% AFEP-MEDEF’s code (Chairman of the Board, INDIVIDUALS & EMPLOYEES of corporate CEO) 13 % governance SHAREHOLDER STRUCTURE AT DEC 31, 2019 2 specialized 8 members OTHER INVESTORS FRENCH IN