Schouw & Co. 2017 Q1 Investor presentation MAY 2017 CEO JENS - PowerPoint PPT Presentation

Schouw & Co. 2017 Q1 Investor presentation MAY 2017 CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

Agenda 2017 Q1 interim report Schouw & Co. introduction Businesses in the portfolio

Schouw & Co. Q1 Interim Report 08.05.2017 3 Schouw & Co. 2017Q1 ▪ A good quarter as expected Revenue DKKm ▪ Revenue up 29% (organic 20%) and EBIT up 13% (3% organic) +29% ▪ GPV not consolidated in 2016Q1 Financial 3.584 2.776 ▪ Very satisfactory increase in ROIC, now 20.0%/16.6% excl/incl goodwill ▪ Net cash position by end of Q1 – NIBD effect from Borg DKK ~1.1bn ▪ 2017 will be a year of consolidation and integration EBIT DKKm ▪ Expanding capacity and investing in the future platform +13% ▪ Borg Automotive will be a new leg from Q2 – value creating acquisition Strategic 178 157 at EV/EBITDA17E multiple of 6.8x ▪ Unchanged outlook in all businesses ROIC ex gw % ▪ Total guidance raised following inclusion of Borg +1.8pp ▪ Revenue now expected at DKK 16.4bn Outlook 20.0% 18.2% ▪ Upper half of EBIT range still most likely; DKK 1.065-1.135m 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 4 BioMar 2017Q1 ▪ Revenue increases 30% to DKK 2bn driven by 24% increase in volume Revenue DKKm ▪ EBIT more than doubles from DKK 22m to 51m +30% ▪ Strong development in the salmon division, continued effect from Financial 1.997 1.532 margin management and increased sale of functional feeds ▪ Attractive ROIC, low NWC following longer creditor days ▪ BioMar’s strategy focusses on innovation & expansion EBIT DKKm ▪ Strong feed concepts and solid portfolio of functional feeds +134% ▪ Building the world’s largest fish feed factory at Karmøy site Strategic 52 ▪ Establishing in China through Tongwei JV, 50k t factory and acquisition 22 ▪ Announcement of green field establishment in Australia – 110k t by 2019 ▪ Unchanged outlook with revenue above DKK 9.4bn and EBIT 510-550m ROIC ex gw % ▪ Volume growth is expected – primarily in the salmon region +15.9pp ▪ Q2 is high season for contract renewals – big volumes at play Outlook 38.2% ▪ Underlying core earnings to exceed 2016 level when adjusted for one- 22.3% offs from R&D activity/grants and reversal of debtor provision 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 5 Fibertex Personal Care 2017Q1 ▪ Revenue increases 3% to DKK 473m despite lower volumes Revenue DKKm ▪ EBIT of DKK 55m and lower than LY as expected +3% ▪ Higher raw material prices increases revenue but decreases EBIT; total Financial 473 458 deviation of about DKK 20m (2017Q1 -9m and 2016Q1 +11m) ▪ Solid global demand for printed products and progress in Innowo ▪ FPC has a solid long-term road map for profitable growth EBIT DKKm ▪ New line in Malaysia - the 5th in Malaysia, 25 km from the existing; total -37% investment of DKK 400m; ready around year-end Strategic 87 ▪ Global increasing demand for print – looking into business plans for 55 further expansion ▪ Revenue about DKK 2bn driven by increase in volumes ROIC ex gw % ▪ EBIT of DKK 230-260m +-7.7pp ▪ Volatile raw materials can impact profitability – expect to catch up on Outlook 23.0% loss on raw materials in Q1 15.3% 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 6 Fibertex Nonwovens 2017Q1 ▪ Revenue increases 13% to DKK 382m with sales up in all markets, Revenue DKKm including US and South Africa, and solid demand in auto +13% ▪ EBIT up by 7m to DKK 30m following higher activity and product mix Financial 382 338 ▪ South Africa – the historically weak spot – is progressing and has reached EBITDA break-even ▪ Ongoing transformation “from volume to value” EBIT DKKm ▪ Investing in segments like auto, composite, filtration, nano and acoustic +32% ▪ New capacity in the Czech Republic supports growth in value segments Strategic 30 23 ▪ Optimistic but realistic outlook for 2017 ROIC ex gw % ▪ Revenue DKK 1.4bn and EBIT DKK 80-100m +1.3pp ▪ Increased likelihood of ending in the upper end of the range Outlook 8.3% 7.0% ▪ Currently struggling with adequate compensation from higher PP and polyester prices 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 7 HydraSpecma 2017Q1 ▪ Revenue up 5% to DKK 476m and EBIT increases to DKK 35m Revenue DKKm ▪ Progress in most countries as well as OEM and aftermarket +5% ▪ Effect from higher activity and synergies secures ROIC above 15% Financial 476 453 ▪ NWC at same level as LY despite increase in activity ▪ Purchase Price Allocation of about DKK 6m ▪ Solid Nordic position – and progressing global expansion EBIT DKKm ▪ Investing in organization, scale and operational excellence +19% ▪ Increasing activity in China following acquisition of Etola in 2016 Strategic 36 30 ▪ Optimising factory footprint and utilising cross-sales opportunities ▪ The business in the portfolio most dependent on the business cycle ROIC ex gw % ▪ Currently good outlook in automotive and wind, but low visibility and +-6.8pp soft demand in marine sector Outlook 23.6% ▪ Revenue of DKK 1.8bn and EBIT DKK 100-120m reiterated 16.8% 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 8 GPV 2017Q1 ▪ Develops as expected with solid progress in revenue to DKK 261m Revenue DKKm ▪ EBIT at 2016 level; effect from Mexico startup and BHE acquisition +25% ▪ Good activity and high order intake Financial 261 209 ▪ No material PPA effect in GPV in 2017 (and beyond) ▪ Ambitious growth agenda targeting DKK 1.5bn in revenue by 2020 EBIT DKKm ▪ Green field establishing in Mexico according to plan +6% ▪ More capacity in Asia may be required to secure growth Strategic 17 16 ▪ Acquisition of BHE; sales DKK 100m, EV DKK 42m, no EBIT in 2017 ▪ Potential to take over larger outsourcing cases from customers ▪ 2017 will be a year of consolidation and building platform ROIC ex gw % ▪ Revenue a little less than DKK 1bn and EBIT DKK 50 – 60m ▪ Political uncertainty in US/Mexico can obviously impact Outlook 15.7% 2016Q1 2017Q1

Schouw & Co. Q1 Interim Report 08.05.2017 9 Outlook ▪ Borg Automotive new leg from 2017Q2 2017 2016 outlook actual ▪ Pre-PPA EBIT (9 month) DKK 110-130m DKK million Borg ▪ Borg contributes with DKK ~800m in revenue BioMar Auto- 510-550 581 motive Fibertex Personal Care 230-260 246 Fibertex Nonwovens 80-100 81 ▪ Group revenue DKK 16.4m incl. Borg HydraSpecma 100-120 * 1 111 * 1 ▪ EBIT outlook maintained in all businesses Borg Automotive 60-80 - ▪ Confirming that total EBIT likely will be in the Outlook upper end of the range GPV 50-60 44 * 3 * 2 Other c. -35 -24 ▪ 15 June (morning) in Copenhagen Total EBIT 1,065-1,135 1,038 * 4 ▪ CEO’s of BioMar and GPV participating Associates etc. c. 20 566 Capital * 5 ▪ Details including venue to be confirmed Markets Financial items, net c. -40 -27 Day Profit before tax 975-1,115 1,578 Notes: *1) Including DKK 24m from PPA effect in Specma; *2) GPV only recognised in 9 months of 2016; 3; After PPA of DKK ~50m in 2017 *4) Group expectations, the sum of the ranges is DKK 995-1,035m; *5) Associates in 2016 includes sale of shares in Kramp and SMB

Agenda 2017 Q1 interim report Schouw & Co. introduction Businesses in the portfolio

Schouw & Co. Q1 Interim Report 08.05.2017 11 Schouw & Co. at a glance 139 125 29 HISTORY years of years in years as a company history packaging conglomerate 14.4 1,038 20.2 FINANCIALS billion DKK million DKK % ROIC revenue (2016) EBIT (2016) ex. goodwill (2016) 23 ~ 6,000 1 FOOTPRINT employees across countries with major long-term the globe production sites shareholder

Schouw & Co. Q1 Interim Report 08.05.2017 12 Our value proposition Diversified portfolio 1 Leading B2B businesses 2 MISSION Active ownership 3 We build a portfolio of leading Danish industrial Long-term ownership 4 businesses and develop them through value-creating , ROIC focused 5 active and long-term ownership Financially strong 6

VISION We strive to be among the best in creating value in a proper and trustworthy manner

Modus Operandi DIVERSIFIED ACTIVE AND PORTFOLIO PR PROFI FITAB ABLE LE DEVELOPING EFFI EF FICIEN CIENT T GROWTH WTH OWNERSHIP USE OF USE OF CAPIT PITAL ACTIVE STRATEGIC OWNERSHIP ELEMENTS MODEL FINANCIAL VERSATILITY OPENNESS FU FUTURE TURE-PR PROO OOFI FING NG

Strategic goals GROWTH PROFIT RETURN GEARING PAYOUT PORTFOLIO Significant Benchmark ROIC > 15% Investment Constant or 5-7 big growth every level (dependent on risk) grade capital increasing and strong year profitability structure dividends businesses

Schouw & Co. Q1 Interim Report 08.05.2017 16 10 years of solid development Revenue (DKK bn) ROIC ex goodwill FTEs +9.4pp +1.7% +6.5% 14.4 20% 4,108 18% 3,743 12.5 12.6 3,541 17% 11.9 11.8 11.6 3,334 16% 3,287 3,166 15% 2,873 9.8 14% 9.5 8.4 2,382 8.2 11% 2,139 2,052 10% 8% 6% 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16 EBIT (DKK m) NIBD/EBITDA Market Cap (DKK m) -4.2 times 1,038 4.0 12,489 3.9 +10.0% 3.5 +10.5% 831 2.9 2.6 772 9,131 708 685 646 1.7 6,812 439 5,313 5,094 369 3,511 0.0 0.0 3,188 2,000 2,375 190 2,173 124 -0.4 -0.7 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16