VARTA AG Quarterly Financial Statement Q1 2018 Investor - - PowerPoint PPT Presentation

VARTA AG Quarterly Financial Statement – Q1 2018 Investor Presentation

• Dr. Michael Pistauer

Vorstand VARTA AG

Content

1. Net Sales 2. Net Sales by Region 3.

• Adj. EBITDA

4. EBIT 5. Consolidated Result 6. Total Assets 7. Trade Working Capital 8. Net debt 9. Equity 10. Cashflow 11. Segment Reporting 12. Outlook 13. Contact Details

Net Sales

Growth of 11% q-o-q

• Growth in all segments
• Development mirrors continuous concentration on growth strategy

Highlights

61,2 58,5 60,4 62,0 68,3

5 10 15 20 25 10 20 30 40 50 60 70

Q1 17 Q4 17 Q2 17 Q3 17 Q1 18

+11,5%

+10,2%

Net Sales in mEUR and change q-o-q in %

Net Sales per Region

• Growth of 21% in European markets reflects strong development of P&E sales
• Growth of about 9% in Asian markets shows increased demand for small lithium-ion

batteries

• N. America sales-decrease inflicted by strong EUR vs USD

Highlights Highlights

36,0 13,9 17,3 1,0 14,5 29,7 15,9 1,2 Q1 17 Q1 18

Net Sales per Region in mEUR

Microbatteries

Continuous growth and economies of scale effects

• Growth in sales, mostly influenced by hearing aid batteries and small

lithium-ion cells

• Growth reflects strong demand from markets
• EBITDA margin with 23% clearly over 20% hurdle

Highlights Highlights

Net sales

51,3 49,5 50,5 52,2 56,3

0,0 0,2 0,4 0,6 0,8 1,0 20 40 60

Q2 17 Q1 17 Q3 17 Q4 17 Q1 18

+9,8%

(Adj.) EBITDA

9,8 12,9 13,1 7,9 13,2

19% 26% 15% 23% 10 20 30 5 10 15

Q1 18 Q4 17 Q1 17 Q2 17 Q3 17

26% +34,1%

In mEUR In % of Net sales

Power & Energy

Continuous growth and positive in EBITDA

• Growth reflects strong demand for storage solutions
• Goal of changing from negative to positive EBITDA achieved

Highlights Highlights

Net sales

9,7 9,1 9,4 9,4 11,8

0,0 0,2 0,4 0,6 0,8 1,0 5 10 15

Q2 17 Q1 17 Q3 17 Q4 17 Q1 18

+21,6%

(Adj.) EBITDA In mEUR In % of Net sales

• 1,4
• 1,7
• 0,7
• 0,6

0,7

• 14%
• 19%
• 20

20 40

• 2
• 1

1

Q3 17 Q1 18 Q4 17 Q1 17 Q2 17

• 7%
• 7%

6% +148,5

• Adj. EBITDA

Over proportional growth in adjusted EBITDA

• Economies of scale business lets adjusted EBITDA grow by 50,0%
• Adjusted EBITDA margin with 20,3% over the 20 % margin hurdle
• Reflects strategy of continuous concentration on high margin growth

Highlights

9,3 10,2 11,2 8,5 13,9

15% 17% 18% 14% 20% 5 10 15 20 25 2 4 6 8 10 12 14

Q1 17 Q2 17 Q3 17 Q4 17 Q1 18

+50,0%

Highlights

• Adj. EBITDA in mEUR and

in % of Net Sales

• Adj. EBIT
• 2018 shows two digit EBIT margin level
• EBIT reflects concentration on strengthening paybacks of capex spending

Highlights

7,0 7,8 8,8 6,0 11,4

17% 5 10 15 20 25 2 4 6 8 10 12 11%

Q1 17

13%

Q1 18 Q4 17 Q2 17 Q3 17

15% 10% +62,1%

Highlights

• Adj. EBIT in mEUR and

in % of Net Sales

Consolidated Result

More than doubled, in comparison to Q1 2017

• Taxrate in 2018 slightly reduced in comparison to 2017
• Development of consolidated result reflects Strategy – of concentration on over

proportional development of results Highlights

3,8 7,4 6,5

• 4,2

8,0

6% 13% 11%

• 7%

12%

• 10
• 5

5 10 15 20 25

• 6
• 4
• 2

2 4 6 8

Q1 18 Q3 17 Q4 17 Q1 17 Q2 17

+112,9%

Highlights

Consolidated result in mEUR and in % of Net Sales

Total Assets

IPO effects and high results shape development of total assets

• Net Proceeds of around 178 mEUR shape balance sheet in 2017 and Q1 2018
• Net Cash position of over 117,6 mEUR

Highlights

164,6 168,5 181,8 331,5 342,3

5 10 15 20 25 50 100 150 200 250 300 350

Q1 18 Q4 17 Q1 17 Q2 17 Q3 17

+108,0%

Highlights

Total Assets in mEUR

Trade Working Capital

TWC ratio higher

• TWC significantly higher than 2017
• TWC impacted by development of inventories
• Inventories rose to 56,4 mEUR to enable deliverability in 2018 - following strong

market demand Highlights Highlights

Trade Working Capital in mEUR and in % of Net Sales

43,9 38,5 49,9 41,4 56,4

5 10 15 20 25 10 20 30 40 50 60

Q1 18 Q1 17 Q3 17 Q2 17 Q4 17

+28,5%

7,8 2,6 12,9

5 10 15 20 25 10

• 130
• 140
• 120
• 110

20

• 10
• 130,1
• 117,6

Q2 17 Q1 17 Q3 17 Q4 17 Q1 18

• 125,4

Net Debt

• IPO proceeds and positive results in 2017 and Q1 2018 shape Net Debt
• Net Cash position of over 117,6 mEUR at the end of Q1 2018

Highlights Highlights

Net Debt in mEUR

Equity

Positive results and IPO let equity ratio boost

• Equity Ratio increased to 70% due to IPO and the positive development of the

results Highlights Highlights

68,7 75,7

45% 70% 70% 10 20 30 40 50 60 70 220 20 240 40 60 80

238,3 Q3 17

42%

Q2 17 Q4 17 81,4 230,5 Q1 18

45%

Q1 17

+246,9%

Equity in mEUR and in % of total assets

Cashflow

• Cash Flow from operating activities highly affected by one time effects of

development of inventories

• Investments in capacity increase at highest level

Highlights

Cashflow from

• perating activities

5,8 8,7

• 2,3

6,2 0,4

Q3 17 Q1 17 Q4 17 Q2 17 Q1 18

• 92,6%

Cashflow from investing activities In mEUR

Q1 18 Q2 17 Q1 17 Q3 17 Q4 17 +1 535,3%

Highlights

Cashflow from

• perating activities

5,8 8,7

• 2,3

6,2 0,4

Q1 18 Q2 17 Q1 17 Q3 17 Q4 17

• 92,6%

Cashflow from investing activities In mEUR

• 0,8
• 3,2
• 8,2
• 1,3
• 12,4

Q4 17 Q1 17 Q2 17 Q3 17 Q1 18 +1 535,3%

Outlook 2018

Outlook 2018

• Business is expected to continue on it’s growth path
• Overall sales are expected to show a significant growth over the course of the next

year (at constant exchange rates)

• A significant increase over the previous year is expected for 2018’s adjusted

EBITDA – because of economies of scale Highlights

Contact Investor Relations Financial Calender

• Dr. Michael Pistauer

Board VARTA AG Daimlerstraße 1 73479 Ellwangen

E-Mail: ir@varta-ag.com 24.04.2018 Interim report Q1 2018 19.06.2018 Annual General Meeting 28.08.2018 Interim report half year results 2018 25.10.2018 Interim report Q3 2018