SGL Carbon SE · XETR:SGL
SGL Carbon — UniCredit, Kepler Cheuvreux 16th German Corporate Conference 2017
35 slides from SGL Carbon's conference presentation, January 2017
Slide 1: UniCredit, Kepler Cheuvreux 16th German Corporate Conference
UniCredit, Kepler Cheuvreux 16th German Corporate Conference Frankfurt, Germany Dr. Michael Majerus, CFO Investor Relations | January 2017
Slide 2: Agenda
Agenda. Update on strategic realignment Page 4 The transformed SGL Group Page 7 Our way forward Page 20 Page 2
Slide 3: Update on strategic realignment
Update on strategic realignment
Slide 4: We are fully on track in achieving our strategic realignment
We are fully on track in achieving our strategic realignment. ROCE* 1) Right size Status Disposal Rotorblades ACHIEVED Generate Disposal HITCO ACHIEVED shareholder return 3 Sale of GE (signing) ACHIEVED Sale of CFL/CE 2017 2) Improve performance 15% Minimum return on capital SGL2015** ACHIEVED S
Slide 5: Clearly defined deleveraging building blocks
Clearly defined deleveraging building blocks. We are fully committed to reducing leverage Expected cash proceeds from announced Rights issue in December 2016 already started to improve our ratios measures Pro forma equity ratio as of September 30, 2016 including proceeds from capital increase 15%
Slide 6: The transformed SGL Group
SGL GROUP THE CARBON COMPANY os G
Slide 7: The transformed SGL Group: Group structure
The transformed SGL Group. We are delivering on our announced strategy Transformed Discontinued SGL Group operations 1 2 Group structure Composites – Fibers & Graphite Materials & Performance Materials (CFM) Systems (GMS) Products (PP) Carbon and fiber based Graphite Electrodes (GE) Sold to Showa Gr
Slide 8: Carbon and graphite: materials providing solutions for megatrends
Carbon and graphite. Materials with extraordinary properties provide solutions for megatrends Energy Business units focus on end markets that are attractive and fast growing due to underlying global megatrends (energy, mobility and digitization) High share of customer-specific products, tailored
Slide 9: SGL Group positioned along the entire value chain in CFM and GMS
Carbon and graphite. SGL Group is positioned along the entire value chain in CFM and GMS In-depth knowledge and control of the complete graphite and carbon fiber value chain provides opportunities for product customization • Preforms • Acrylic fibers • Prepregs • Oxidized fibers • Multiaxial texti
Slide 10: Solutions for global megatrends: fast growing industries
Solutions for global megatrends. We serve a broad range of fast growing industries Expected market growth Energy(1) Digital Lifestyle Mobility 1 ~10%(1) 7-9%(2) 3-5%(3) Carbon Aerospace, Wind energy, CFM fibers/materials/ Mobile 3C devices automotive, pressure vessels components pressure vessels Exp
Slide 11: CFM: Specialist for Composites
1 CFM: Specialist for Composites. Solutions for the material mix of the future CFM is an expert for fibers and materials for composites. We are the only European supplier, active along the entire value chain With the development of a new generation of industrial carbon fibers we became a technol
Slide 12: CFM: Growth driver Automotive
1 CFM: Growth driver Automotive. Transfer existing know how industry wide Automobile manufacturers have to design lighter cars, driven by global regulations limiting CO2 emissions and the resulting trend towards alternative drive trains In Europe, car manufacturers could be required to reduce th
Slide 13: CFM: Key differentiator in Automotive
1 CFM: Key differentiator in Automotive. Focus on industrializing carbon fiber usage Key to increased usage of carbon fiber in automotive is the ability to produce in serial scale and to provide cost competitiveness to other materials taking into account the substantial benefits of composite mater
Slide 14: CFM: Growth driver Aerospace
1 CFM: Growth driver Aerospace. Exploit material competence in aviation sector CFM will transfer its lightweight competence from the automotive industry increasingly into the aviation sector with a new generation of industrial carbon fibers Our heavy tow carbon fibers provide better performance
Slide 15: CFM: Growth driver Wind Energy
1 CFM: Growth driver Wind Energy. Establish our carbon fiber and composite materials as state-of-the-art CFM will increasingly qualify its new generation of industrial carbon fibers based on own precursor into the wind energy industry Our industrial grade heavy tow fiber is particularly suited f
Slide 16: GMS: Leading provider of engineered graphite solutions
2 GMS: Leading provider of engineered graphite solutions. Development partner for our customers GMS is the development partner – “enabler” – for our customers with graphite based advanced technological solutions Offering products and solutions to more than 35 industries, the business unit is gro
Slide 17: GMS: Growth driver energy supply
2 GMS: Growth driver energy supply. Benefiting from growth in lithium ion batteries Our graphite solutions are used in energy applications. We participate in the rising usage of new battery generations Our graphite anode materials are employed in lithium ion batteries, among others for electric
Slide 18: GMS: Growth driver Digitization
2 GMS: Growth driver Digitization. LED and semiconductor industries drive demand GMS specializes in surface coating technologies. These are required in equipment for manufacturing polysilicon, LEDs, and semiconductors Polysilicon demand for the semiconductor industry is expected to grow 11% per
Slide 19: Our way forward
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Slide 20: Target for GMS and CFM: profitable sales growth of 50%
Target for GMS and CFM. Profitable sales growth of 50% 1200 Drivers for ROCE improvement: 1000 Top line growth (benefiting from 800 Megatrends) leading to higher ~ €1.1 billion capacity utilization 600 sales at or above Increasing share of innovative €737 million Moderate organic products bearin
Slide 21: ROCE: remains key management principle for managing the business
ROCE. Remains key management principle for managing the business In 2014, we, the new Board of Management, introduced ROCE* development ROCE as new key management principle replacing ROS 7.8% We wanted to be held accountable for our stated targets and goals 5.6% As a result we implemented the ROCE t
Slide 22: Financial targets confirmed
Financial targets confirmed. We will continue to drive the transformation and the business forward Realignment Profitable growth Sale of business unit PP Focus on fast growing markets Project CORE Innovation leader in core markets Deleveraging Partner of choice for innovative material solutions Posi
Slide 23: The transformed SGL Group: a compelling investment story
The transformed SGL Group. A compelling investment story Globally leading high tech carbon and graphite based solutions provider with leading positions in attractive and fast growing markets Broad product portfolio and excellent material competence driving growing share of customer-specific tailored
Slide 24: Thank you
SGL GROUP THE CARBON COMPANY os G
Slide 25: Backup
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Slide 26: Key industries served: portfolio balanced and diversified
Key industries served. Portfolio balanced and diversified between markets and industries Composites – Fibers & Materials (CFM) Graphite Materials & Systems (GMS) Aerospace & High Automotive & Defense temperature transport 3% applications 5% Tool manu- Energy 4% facturing 15% 6% Automotive Energy 28%
Slide 27: Appendix
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Slide 28: Latest Financials 9M/2016
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Slide 29: Composites - Fibers & Materials: highest result since inception
Composites - Fibers & Materials. Highest result since inception in € million 9M/2016 9M/2015 Sales revenue 234.5 252.2 EBITDA* 32.5 28.5 ROCEEBITDA (in %) 9.4 8.6 EBIT* 16.8 12.9 EBIT*-Margin (in %) 7.2 5.1 Sales revenue decreased mainly due to raw material driven sales decline in textile acrylic
Slide 30: Graphite Materials & Systems: mixed picture
Graphite Materials & Systems. Mixed picture in € million 9M/2016 9M/2015 Sales revenue 321.4 340.1 EBITDA* 35.3 43.8 ROCEEBITDA (in %) 12.0 13.1 EBIT* 18.8 27.2 EBIT-Margin* (in %) 5.8 8.0 Sales revenue down 5% (currency adjusted -6%) Higher sales from solar, semiconductor, and LED industries
Slide 31: T&I and Corporate: significantly lower expenses
T&I and Corporate. Significantly lower expenses than prior year period in € million 9M/2016 9M/2015 Sales revenue 6.2 6.5 EBITDA* -18.8 -26.5 EBIT* -22.8 -31.5 Recurring EBIT improved by 28% due to General cost savings Lower provisions resulting from changed variable management remuneration co
Slide 32: Group: EBIT improvement driven by CFM and T&I and Corporate
Group. EBIT improvement driven by CFM and T&I and Corporate – Net result impacted by GE sale agreement in € million 9M/2016 9M/2015 Sales revenue 562.1 598.8 EBITDA before non-recurring charges 49.0 45.8 ROCEEBITDA (in %) 7.8 5.6 EBIT before non-recurring charges 12.8 8.6 Non-recurring charges -0.6
Slide 33: Free cash flow: Q3/2016 almost break even
Free cash flow. Q3/2016 free cash flow almost break even in € million (continuing activities) 9M/2016 9M/2015 Cash flow from operating activities -50.9 -95.7 Capital expenditures in property, plant and equipment and intangible assets -22.0 -32.0 - thereof SGL Group excluding SGL ACF -21.2 -23.3 - th
Slide 34: Balance sheet: sufficient liquidity despite deteriorated ratios
Balance sheet. Sufficient liquidity and sources of liquidity despite deteriorated ratios in € million 30.09.2016 31.12.2015 Equity ratio (in %) 6.0* 15.6 Total liquidity (incl. discontinued activities) 159.6 250.8 Net financial debt 623.1 534.2 Gearing (net debt/equity) 6.12** 1.85 Equity ratio de
Slide 35: Disclaimer
Disclaimer 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 Materia
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