Results on Q1/2015. Conference Call. 29 April Investor Relations

Transcription

1 Results on Q1/2015 Investor & Analyst Conference Call 29 April 2015 Investor Relations

2 Agenda. 1. Review Q1/ Financials Q1/ Outlook 2015 Page 2 SGL Group Investor Relations 29 April 2015

3 Review Q1/2015. Update since annual press conference on March 18 PP substantially increases profitability thanks to SGL2015 and despite no recovery in graphite electrode market CFM close to break even Contract win for new BMW 7 series second largest CF automotive project by volume after i3/i8 involving several stages of our carbon fiber value chain First dividend payment from Brembo SGL Business Process Excellence: Project Commercial X kicked off Page 3 SGL Group Investor Relations 29 April 2015

4 Agenda. 1. Review Q1/ Financials Q1/ Outlook 2015 Page 4 SGL Group Investor Relations 29 April 2015

5 Performance Products. Substantial EBIT improvement despite lack of recovery in graphite electrodes in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue down 3 %, (currency adjusted -12%) due mainly to lower volumes and prices in graphite electrodes Nevertheless, recurring EBIT more than doubled due to cost relief related to SGL2015 and lower raw material prices SGL2015 related restructuring nearly completed thus only 0.8 million non recurring charges in reporting period SGL2015 savings 9.3 million, thereof 2.1 million from SGL Excellence Page 5 SGL Group Investor Relations 29 April 2015 * Non-recurring charges of 0.8 million in Q1/2015 and 0.8 million in Q1/2014

6 Graphite Materials & Systems. Lower sales and earnings resulting mainly from big ticket order in H1/2014 in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue down 9% (currency adjusted down 15%) Mainly driven by big ticket order in H1/2014 Continued strong demand for anode materials for Li-ion-batteries Weaker H1/2015 sales in Process Technology due to subdued order intake in 2014 Order intake overall showing signs of stabilization ti to slight volume improvements Recurring EBIT declined by 30% due to Lower capacity utilization Partially compensated by one-off gains from a land sale and insurance claims SGL2015 savings 3.4 million, thereof 1.9 million from SGL Excellence Page 6 SGL Group Investor Relations 29 April 2015 * Non-recurring charges of 0.1 million in Q1/2014

7 Carbon Fibers & Materials. Substantial progress towards break even in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT-Margin before non-recurring charges* (in %) EBIT Sales revenue increased by 16 % (currency adjusted 9%) Significantly increased sales contributions from our proportionally consolidated joint ventures with BMW Group (SGL ACF, 51% share) CF/CM benefited from improved demand from various customer industries Recurring EBIT close to break even Strong EBIT improvement at CF/CM due to better volumes and thus higher utilization Expected lower ramp-up costs for carbon fiber capacity expansion in Moses Lake and Wackersdorf (SGL ACF) SGL2015 savings 1.3 million, thereof 0.7 million from SGL Excellence Page 7 SGL Group Investor Relations 29 April 2015 * Non-recurring charges of 0.1 million in Q1/2014

8 T&I and Corporate. SGL2015 savings offset by various effects in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges* EBIT before non-recurring charges* EBIT Recurring EBIT decreased by 26% - savings from SGL2015 more than offset by higher provisions for management incentive plans compared to the prior year, which were calculated based on an expected better target attainment positive one-time effects in Q1/2014 relating to SGL2015 SGL2015 savings 1.2 million Page 8 SGL Group Investor Relations 29 April 2015 *Non-recurring charges of 1.4 million in Q1/2014

9 Group. Improved earnings despite flat sales demonstrates effectiveness of SGL2015 in million Q1/2015 Q1/2014 Sales revenue EBITDA before non-recurring charges EBIT before non-recurring charges Non-recurring charges EBIT Results from investments accounted for At-Equity Net financing result Results from continuing operations before income taxes Consolidated net result attributable to the shareholders of the parent company EPS, basic and diluted (in ) Includes cost savings of 15 million from SGL2015, of which approx. 5 million attributable to SGL Excellence Result from investments accounted for At-Equity improves to break even level mainly due to Brembo SGL and lower costs related to SGL Lindner Net result and EPS includes loss from discontinued operations totaling 5 million (Q1/2014: loss of 5million) relating to HITCO Page 9 SGL Group Investor Relations 29 April 2015

10 Balance sheet. Solid despite slight deterioration in million Total assets 2, ,170.3 Equity ratio (in %) Total liquidity Net financial debt Gearing (net debt/equity) Currency effects on total assets amounted to 137 million Equity ratio declined slightly due to net loss of 15 million in the reporting period discount factor for calculation of pension provisions in Germany decreased further to 1.5% resulting in 20 million (after tax) burden on equity partially compensated by positive currency gains of 25 million Page 10 SGL Group Investor Relations 29 April 2015

11 Free cash flow. Slightly less negative than anticipated in March 2015 Continuing operations in million Q1/2015 Q1/2014 Cash flow from operating activities Capital expenditures in property, plant and equipment and intangible assets thereof SGL ACF thereof SGL Group excluding SGL ACF Cash provided by other investing activities* ities* Free cash flow Main reason for higher negative cash flow compared to prior year is seasonally typical working capital buildup and non recurring cash out for USD hedges (relating to HITCO impairment earlier this year) However, both free cash flow from continued operations and free cash flow including discontinued operations (HITCO) at minus 91 million slightly better than anticipated Main deviations to guidance is lower than expected cash out for capex and restructuring in Q1/2015 these have shifted into later quarters Thus full year guidance remains unchanged at some 100 million negative free cash flow from continuing operations Page 11 SGL Group Investor Relations 29 April 2015 *Payments for capital contributions in investments accounted for At-Equity, proceeds from dividend payments and sale of intangible assets and property, plant and equipment

12 Agenda 1. Key events Financials Outlook 2015 Page 12 SGL Group Investor Relations 29 April 2015

13 Business unit outlook Savings driven improvement at PP and lower ramp up costs in CFM Performance Products (PP): Small percentage increase in sales, substantial percentage increase in EBIT. Graphite electrode volumes somewhat stabilize on low levels. Higher volumes at cathodes anticipated. As expected, some raw material induced price adjustments in graphite electrodes. Improvement driven by SGL2015 and raw material cost reductions. Recent currency development supportive for EBIT Graphite Materials &Systems (GMS): Nearly stable sales and EBIT despite nonrecurrence of big ticket order. Strong demand from Li-ion-battery customers to continue, stable to moderate demand improvement in other customer industries. Carbon Fibers & Materials (CFM): Small percentage increase in sales and significant improvement in EBIT. Better volumes in both CF/CM and SGL ACF may be partially offset by crude oil based pricing of Fisipe acrylic fibers. EBIT improvement based on overall improved demand and lower ramp up costs at SGL ACF in H2 Corporate: Relatively stable on lower (SGL2015 related) base and despite consulting costs for new efficiency improvement projects Page 13 SGL Group Investor Relations 29 April 2015

14 Group outlook Net profit should benefit from improved EBIT and lower restructuring expenses Full year Group sales expected stable - lower prices resulting from reduced raw material costs, compensated by currency gains. In graphite electrode markets we see no relief in foreseeable future due to continued Chinese steel export growth Group recurring EBITDA and EBIT: substantial increase, with H2 expected stronger than H1 (time lag of raw material cost relief, SGL ACF completes capacity expansion in H1) SGL2015: mid ddoubedgt double digit million savings. As most SGL2015 measures es implemented, e only single digit million restructuring expenses remain. Mid double digit million restructuring cash- out Net result to improve due to better EBIT and lower restructuring expenses but remaining in negative territory Capex for the first time in many years to decrease to D&A level of approx. 90 million Free cash flow: operational improvement to be partially offset by planned restructuring cash out and continued capex for capacity expansion at SGL ACF, leading to increased net debt ROCE to improve in line with improvement in EBIT and EBITDA Page 14 SGL Group Investor Relations 29 April 2015

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