Schouw & Co. Full Year 2015 Investor presentation | March 2016 - - PowerPoint PPT Presentation

▶
schouw co full year 2015
SMART_READER_LITE
LIVE PREVIEW

Schouw & Co. Full Year 2015 Investor presentation | March 2016 - - PowerPoint PPT Presentation

Dec 04, 2022 137 likes •352 views

Schouw & Co. Full Year 2015 Investor presentation | March 2016 CEO JENS BJERG SRENSEN | IR KASPER OKKELS 2015 Annual Report 04.03.2016 2 2015 highlights: Best operation in our history Return on invested capital NIBD/EBITDA Revenue DKK

slide-1
SLIDE 1

Schouw & Co. Full Year 2015

Investor presentation | March 2016

CEO JENS BJERG SØRENSEN | IR KASPER OKKELS

slide-2
SLIDE 2

2015 highlights: Best operation in our history

04.03.2016 2015 Annual Report 2

Revenue DKK

12.6bn

Growth 6.6% // 2014: 11.8bn Increase in revenue in all businesses

EBIT DKK

831m

Growth 17.5% // 2014: 708m DKK +50m from non-recurring items

Cash flow from operations DKK

1,171m

Growth 86% // 2014: 628m Free cash flow 602m

NIBD/EBITDA

  • 0.4x

Closing of Specma and GPV acquisitions in 2016 will have DKK +1bn in NIBD effect

Future-proofing the platform

M&A

BioMar JV in China // FIN acquisition in Turkey // Hydra trebles its size // new leg in Schouw & Co.

Return on invested capital

18.3%

ROIC incl. goodwill 15.1% Growth in ROIC six years in a row

slide-3
SLIDE 3

Solid increase across all businesses

Revenue DKKm EBITDA DKKm Cash flow from operations DKKm EBIT DKKm

04.03.2016 2015 Annual Report 3

11,784 2014 523 12,566 37 174 10 BioMar 38 FPC 2015 Other Hydra FIN Hydra 1,214 2014 1,070 2 87 FPC FIN BioMar 19 2015 Other 15 25 2014 FIN 18 BioMar 708 12 81 FPC 14 2 Hydra 2015 831 Other 628 2014 370 1,171 7 15 116 BioMar 34 FPC 2015 Other Hydra FIN

slide-4
SLIDE 4

270 290 310 330 350 370 390 410 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Schouw & Co. share price C20 CAP indexed to Schouw & Co. MidCap indexed to Schouw & Co.

2015 2016

Progress across all key figures

Revenue and income DKKm 2015 2014 Revenue 12,566 11,784 EBITDA 1,214 1,070

  • margin

9.7% 9.1% EBIT 831 708

  • margin

6.6% 6.0% Associates 86 28 Cash flows DKKm 2015 2014 Cash flows from operating activities 1,171 628 Cash flows from investing activities 569 355 Of which investment in PPE 354 233 Cash flows from financing activities

  • 324
  • 563

Invested capital and financing DKKm 2015 2014 Working capital 1,598 1,775 Net interest bearing debt (NIBD)

  • 511

44 Total equity 6,677 6,074 ROIC excl. goodwill 18.3% 16.9% ROIC incl. goodwill 15.1% 14.0% NIBD/EBITDA

  • 0.4

0.0

04.03.2016 2015 Annual Report 4

33%

increase in share price in 2015

               

slide-5
SLIDE 5

Revenue Volume (k ton) EBITDA ROIC (%) ex. goodwill EBIT EBIT margin (%)

BioMar

Strong 2015 figures

  • Increase in revenue and profit despite decrease in volume
  • Pass-through of higher raw material prices increases revenue
  • Volume increase in Continental Europe and margin increase
  • Solid improvement in EBIT margin in Norway
  • Positive FX effect where higher USD offsets lower NOK
  • Increased sale of value-added products
  • Strong Q4 with increase in market share

Very strong cash flow generation

  • Net Working Capital down by 23% (DKK 230m) despite revenue increase
  • Increase in DPO and effective use of Supply Chain Financing
  • CF from operations DKK 637m and Free Cash Flow DKK 427m

Building a solid platform for future growth

  • 140kt capacity in Norway ready by summer 2017
  • JV with Tongwei in China and JV with Sagun in Turkey

Decent outlook for 2016

  • Positive volume expectations despite a flat/negative total market
  • Chile remains challenging with diseases and low salmon prices
  • Revenue expected at DKK 9.2bn and EBIT of DKK 410-450m

04.03.2016 2015 Annual Report 5

8,974 2014 8,451 6.2% 2015 593 574 2014 2015 3.2% 447 434 2.8% 2014 2015 996 955 2015 2014

  • 4.1%
  • 0.2

22.7 22.9 2015 2014

  • 0.2

5.0 5.1 2015 2014

slide-6
SLIDE 6

Revenue Volume (k tons) EBITDA ROIC (%) ex. goodwill EBIT EBIT margin (%)

Fibertex Personal Care

An exceptional profitable year

  • Flat revenue and volumes at same level as in 2014
  • Positive one-off effect of DKK ~50m from raw material pass-

through clauses and USD/MYR exchange rate development

  • Unexpected strong Q4 both in Denmark and Malaysia
  • Malaysia started soft in 2015 but recovery throughout the year

A solid cash flow generation

  • Strong EBITDA translates to DKK 342m in CF from operations

Investing in value-add and capacity

  • Expanding Malaysian capacity by 30% with line #5
  • Establishing print operations in Asia and expanding in Germany
  • Upgrading capacity in Denmark to more value added products

Firm underlying guidance for 2016

  • Revenue expected at DKK 1.9bn and EBIT at DKK 200-220m
  • Adjusting for DKK ~50m one-off, higher EBIT expected in 2016
  • Uncertainty from volatile FX and raw materials prices

04.03.2016 2015 Annual Report 6

2015 1,797 2014 1,788 0.5% 395 308 2014 28.3% 2015 253 171 47.4% 2015 2014 101 102

  • 1.4%

2014 2015 +6.3 20.7 14.4 2015 2014 2014 9.6 +4.5 2015 14.1

slide-7
SLIDE 7

Revenue US, ZA, TR sales EBITDA ROIC (%) ex. goodwill EBIT EBIT margin (%)

Fibertex Nonwovens

Last year’s progress continued

  • Solid increase in revenue, primarily from acquisitions
  • Double digit growth in auto and advanced products segments
  • Firm increase in profitability across all European sites
  • Negative effect from consolidation of South Africa

Effect from international investments

  • Increasing focus on value-added products
  • Margin management and global factory footprint
  • Acquisition of spunlacing capacity in Turkey
  • Streamlining structures, effect from new ERP system
  • Significant increase in top-modern Czech facility

Progress set to continue in 2016

  • Double digit growth in revenue and EBIT of DKK 80-90m
  • Significant increase in depreciations (DKK +25m)
  • 2016 will be a transition year with effect from capex/acquisitions

04.03.2016 2015 Annual Report 7

1,222 1,048 2014 16.6% 2015 153 128 19.5% 2014 2015 76 62 2015 22.8% 2014 25 213 2015 2014 8.4 2014 7.8

  • 0.6

2015 6.2 +0.3 2014 5.9 2015

slide-8
SLIDE 8

Revenue Wind segment sales EBITDA ROIC (%) ex. goodwill EBIT EBIT margin (%)

Hydra/Specma

Very solid performance

  • Solid increase in revenue and significant scale-effect on EBIT
  • Wind segment the main driver: almost 50% of revenue
  • Positive one-offs of DKK ~5m (mainly reversal of provisions)

Acquisition of Specma is a game-changer

  • Result of long-time strategic ambition of growing Hydra
  • Building a truly international business
  • Minimising exposure to individual segments like wind
  • Synergies primarily within sourcing

Guidance reaching towards the strong 2015 level

  • Revenue about DKK 1.7bn and EBIT DKK 115-135m before PPA
  • Hydra/Specma pro-forma 2015 EBIT was DKK 135m
  • Strong outlook in wind but soft in mining, marine and offshore
  • Purchase Price Allocations result in additional depreciations of

DKK ~25m in the next 3 years – and DKK ~18m until 2026

04.03.2016 2015 Annual Report 8

603 566 6.6% 2014 2015 93 78 19.5% 2015 2014 78 60 30.0% 2015 2014 17% 2014 2015 2015 28.9 2014 22.6 +6.3 12.9 10.6 2014 +2.3 2015

slide-9
SLIDE 9

Revenue Net Working Capital EBITDA EBITDA margin (%) EBIT EBIT margin (%)

Kramp

Yet another solid year

  • Revenue increase by 4.5% in a soft agricultural market
  • EBIT up by 17% with significant scale effects
  • Continued synergy-effect from Grene combination
  • Impressive 11.8% EBITDA margin / 9.2% EBIT margin

Investment in efficiency and digitalisation

  • Significant IT investment program
  • Building the industry’s leading web shop
  • Upgrading/automation of several Distribution Centres

Positive outlook for 2016

  • Growth in revenue to DKK 5.4bn and EBIT DKK 460-485m
  • DKK 65-75m to be recognised in Schouw under associates
  • Outlook for the European agricultural sector remains weak

04.03.2016 2015 Annual Report 9

5,126 2015 2014 4,906 4.5% 604 529 14.2% 2015 2014 474 405 17.0% 2015 2014 2015 5.0% 2014 1,505 1,434 +1.0 2015 2014 10.8 11.8 9.2 2015 2014 +0.9 8.3

slide-10
SLIDE 10

Xergi – and other investments

Xergi’s best year ever graphs to the right shows Xergi 100% figures

  • Revenue (on 100% basis) increased 32% to DKK 411m
  • Significant increase in EBIT to DKK 22m
  • Very high activity level
  • Effect from many years of investing in technology and

markets as well as strong Danish market

  • Unchanged good prospects for biogas

Incuba Invest

  • Ownership interests in development and venture activities
  • Small positive net result as expected

Properties

  • Former Martin Professional properties put up for sale

04.03.2016 2015 Annual Report 10

Revenue Revenue split EBITDA EBITDA margin (%) EBIT EBIT margin (%)

411 311 2015 2014 32% 29 16 2015 2014 79% 22 13 2014 64% 2015 Other Denmark 5.2 7.1 2014 +1.9 2015 2014 5.4 4.3 +1.1 2015

slide-11
SLIDE 11

Guidance 2016

REVENUE

DKK million

2016

  • utlook

2015 actual 2014 actual BioMar 9,200 8,974 8,451 Fibertex Personal Care 1,900 1,797 1,787 Fibertex Nonwovens 1,400 1,222 1,048 Hydra/Specma 1,700 603 566 Other/eliminations

  • 31
  • 68

Total revenue

  • c. 14.2bn

12.6bn 11,784 Kramp (100%)

  • c. 5,400

5,126 4,905

EBIT

DKK million

2016

  • utlook

2015 actual 2014 actual BioMar 410-450 447 434 Fibertex Personal Care 200-200 253 171 Fibertex Nonwovens 80-90 76 62 Hydra/Specma *90-110 78 60 Other

  • c. -20
  • 23
  • 20

Total EBIT 760-850 831 708 Associates etc. 75-85 86 28 Financial items, net

  • c. -35
  • 46
  • 35

Profit before tax 800-900 871 701 Kramp EBIT (100%) 460-485 474 405

04.03.2016 2015 Annual Report 11

Expected nine-month contribution from GPV (revenue DKK 600-650m) and EBIT DKK ~40m before PPA should be added to the above following expected closing of the transaction in early Q2 2016

115-135 before PPA * After dedution of PPA depreciations of about DKK 25m

slide-12
SLIDE 12

Summing up

2016: Opportunities or volatility?

  • All our businesses are very well positioned
  • Especially BioMar and FPC are non-cyclical
  • Raw material prices are fluctuating
  • Currencies (and stock market) very volatile

Building a solid long-term platform

  • Integration of acquired businesses
  • Huge capacity increase in BioMar and FPC
  • Securing international competiveness

Focus on stronger businesses

  • For many years the guiding principle in Schouw

& Co. has been bigger and stronger

  • In 2016 the primary focus will be on stronger

GPV a new leg in our portfolio

  • Acquisition expected to close March/April
  • Full financial effect expected from Q2
  • Very well received by all GPV stakeholders

GPV has attractive financials

  • 2015 revenue of DKK ~850m and EBITDA 80m
  • Acquired for DKK 400m (5.0x EBITDA) on a

debt and cash free level

Opportunities from new ownership

  • Accelerating profitable growth
  • Establishing GPV in the Americas
  • Organic growth with long-term customers
  • Looking into value-creating M&A

04.03.2016 2015 Annual Report 12

slide-13
SLIDE 13

We build a portfolio of leading Danish industrial businesses and develop them through value- creating, active and long-term ownership

No divestments of core businesses Even bigger and stronger businesses Further develop the portfolio Open to value-creating

  • wnership structures

Strategic headlines remain unchanged

04.03.2016 2015 Annual Report 13

slide-14
SLIDE 14

Strategic goals

04.03.2016 2015 Annual Report 14

Growth

Substantial growth every year

Profit

Benchmark level profitability

Return

ROIC > 15%, but dependent on level of risk

Leverage

Comfort zone for NIBD is 1-2 times EBITDA

Payout

Constant/increasing dividends and share buybacks

Portfolio

A ’handful’ of big and strong businesses

slide-15
SLIDE 15

Delivering on our strategy

04.03.2016 2015 Annual Report 15

Revenue

6.4%

Revenue CAGR 2011-2015 adjusted for sale of Martin and Grene

EBIT

10.5%

EBIT CAGR 2011-2015 adjusted for sale of Martin and Grene

ROIC ex. goodwill

18.3%

Growth in ROIC six years in a row ROIC incl. goodwill 15.1%

Reduction in NIBD

2.3bn

2011-15 reduction due to strong CF, and effect from Vestas, Lerøy, Martin, Grene

Free Cash Flow

2.2bn

Accumulated FCF incl. M&A 2011-2015 Operating CF 2011-2015 CAGR 32.9%

Shareholder yield

solid

Dividends increased every recent 5 years Dividends historically ~2-3% of m.cap.

All graphs are LTM and adjusted for the sale of Martin Professional and the financial effect from the combination of Grene and Kramp

slide-16
SLIDE 16

2015 Q4 financials

slide-17
SLIDE 17

2015 2014

D

2015 2014

D

Revenue 2.137 2.234

  • 4%

8.974 8.451

6%

8.974 8.451 EBITDA 177 169

5%

593 574

3%

593 574 EBITDA% 8,3% 7,6%

9%

6,6% 6,8%

  • 3%

6,6% 6,8% EBIT 140 135

4%

447 434

3%

447 434 EBIT% 6,6% 6,0%

9%

5,0% 5,1%

  • 3%

5,0% 5,1% Profit before tax 156 117

34%

399 398

0%

399 398 Cash Flow from operations 444 262

69%

637 266

139%

637 266 Equity 2.128 1.902

12%

1.902

  • in % of total assets

44,0% 39,3%

12%

39,3%

  • Inv. Capital (ex goodwill)

1.692 1.931

  • 12%

1.931

  • ROIC

22,7% 22,9%

  • 1%

22,9% Net Working Capital 752 983

  • 23%

983

  • in % of LTM revenue

8,4% 11,6%

  • 28%

11,6% NIBD 69 386

  • 82%

386

  • times LTM EBITDA

0,1x 0,7x

  • 83%

0,7x YTD LTM 2014 Q4

BioMar 2015-Q4 financials (DKKm)

04.03.2016 2015 Annual Report 17

slide-18
SLIDE 18

2015 2014

D

2015 2014

D

Revenue 500 485

3%

1,797 1,787

1%

1,797 1,787 EBITDA 134 90

49%

395 308

28%

395 308 EBITDA% 26.8% 18.6%

44%

22.0% 17.2%

28%

22.0% 17.2% EBIT 97 51

91%

253 171

47%

253 171 EBIT% 19.5% 10.5%

85%

14.1% 9.6%

47%

14.1% 9.6% Profit before tax 94 59

58%

247 169

46%

247 169 Cash Flow from operations 100 30

234%

342 226

52%

342 226 Equity 786 730

8%

730

  • in % of total assets

46.1% 38.8%

19%

38.8%

  • Inv. Capital (ex goodwill)

1,222 1,336

  • 9%

1,336

  • ROIC

20.7% 14.4%

44%

14.4% Net Working Capital 294 293

1%

293

  • in % of LTM revenue

16.4% 16.4%

0%

16.4% NIBD 482 688

  • 30%

688

  • times LTM EBITDA

1.2x 2.2x

  • 45%

2.2x YTD LTM 2014 Q4

Fibertex Personal Care 2015-Q4 financials (DKKm)

04.03.2016 2015 Annual Report 18

slide-19
SLIDE 19

2015 2014

D

2015 2014

D

Revenue 294 262

12%

1,222 1,048

17%

1,222 1,048 EBITDA 29 28

6%

153 128

20%

153 128 EBITDA% 10.0% 10.6%

  • 5%

12.5% 12.2%

3%

12.5% 12.2% EBIT 9 9

0%

76 62

23%

76 62 EBIT% 3.0% 3.4%

  • 11%

6.2% 5.9%

5%

6.2% 5.9% Profit before tax 8 5

61%

64 50

27%

64 50 Cash Flow from operations

  • 5

13

#####

97 82

18%

97 82 Equity 460 385

19%

385

  • in % of total assets

30.6% 32.7%

  • 7%

32.7%

  • Inv. Capital (ex goodwill)

1,162 874

33%

874

  • ROIC

7.8% 8.4%

  • 7%

8.4% Net Working Capital 361 319

13%

319

  • in % of LTM revenue

29.5% 30.4%

  • 3%

30.4% NIBD 730 522

40%

522

  • times LTM EBITDA

4.8x 4.1x

17%

4.1x YTD LTM 2014 Q4

Fibertex Nonwovens 2014-Q4 financials (DKKm)

04.03.2016 2015 Annual Report 19

slide-20
SLIDE 20

2015 2014

D

2015 2014

D

Revenue 156 138

13%

603 566

7%

603 566 EBITDA 27 15

83%

93 78

20%

93 78 EBITDA% 17.3% 10.7%

62%

15.5% 13.8%

12%

15.5% 13.8% EBIT 23 10

117%

78 60

30%

78 60 EBIT% 14.5% 7.6%

92%

12.9% 10.6%

22%

12.9% 10.6% Profit before tax 23 11

115%

78 61

27%

78 61 Cash Flow from operations 40

  • 101%

67 60

12%

67 60 Equity 212 188

13%

188

  • in % of total assets

51.9% 48.0%

8%

48.0%

  • Inv. Capital (ex goodwill)

300 292

3%

292

  • ROIC

28.9% 22.6%

28%

22.6% Net Working Capital 202 187

8%

187

  • in % of LTM revenue

33.5% 33.1%

1%

33.1% NIBD 77 96

  • 20%

96

  • times LTM EBITDA

0.8x 1.2x

  • 33%

1.2x YTD LTM 2014 Q4

Hydra-Grene 2015-Q4 financials (DKKm)

04.03.2016 2015 Annual Report 20

slide-21
SLIDE 21

Contact

Investor Relations CEO/President Kasper Okkels Jens Bjerg Sørensen ir.@.schouw.dk +45 86 11 22 22