CPH IR 2018 - Home EN - CPH€¦ · CPH is a diversified Swiss-based and internationally active...

CPH Chemie + Papier Holding AG

Investor Day

Perlen, 13th September 2018

CPH Presentation 13. September 2018 2

Agenda

2.00 pm Welcome

2.05 pm Presentation Course of Business 2018

2.50 pm Break

3.00 pm Presentation Perlen Packaging

3.30 pm Factory Tour Perlen Packaging

4.30 pm Aperitif

CPH Chemie + Papier Holding AG

Investor Presentation

Perlen, 13th September 2018


Contents

1 The CPH Group

2 Investment Case

3 Financial Performance


Business divisions Chemistry

Packaging

Paper

Production locations CH, DE, USA, CN, BRA, BiH

Net sales 469.8 2017 in CHF million

EBITDA 33.8 2017 in CHF million

Balance sheet total 697.1 30.6.2018 in CHF million

Equity ratio 57% 30.6.2018

Net debt / EBITDA 1.2x 30.6.2018

Personnel 1 055 30.6.2018

The CPH Group At a Glance

CPH is a diversified Swiss-based and internationally active industrial group that was

founded in 1818. The shares of its holding company CPH Chemie + Papier Holding

AG have been traded on the SIX Swiss Exchange since 2001, and its founding

families remain anchor shareholders today.

16%

56%

28%


Division

% of total

net sales

Brand

Products

Strategy Differentiation Cost leadership Differentiation

Molecular sieves

Chromatography gels

Newsprint paper

Magazine paper

PVC mono films

Coated PVdC films

Chemistry 16% Packaging 28%Paper 56%

The CPH Group Business Divisions


Packaging

CHF 130.2 million

CHF 15.5 million

CH / DE / USA / BRA / CN

363

Paper

CHF 264.1 million

CHF 9.1 million

CH

345

Chemistry

CHF 75.5 million

CHF 7.3 million

CH / USA / CN / BiH

302

The CPH Group Business Divisions

7% Switzerland 27% Rest of Europe

45% The Americas 20% Asia

1% Rest of the world


1% Americas 3% Asia


16% Americas 15% Asia


Division

Key figures

2017

Net sales 2017

by region

Net sales:

EBITDA:

Production sites:

Employees:


The CPH Group H1 Divisional Income Statements

CPH Group Chemistry Paper Packaging

in CHF million H1 17 H1 18 H1 17 H1 18 ± in % H1 17 H1 18 ± in % H1 17 H1 18 ± in %

Net sales 231.7 264.1 38.0 37.3 -1.9 128.1 148.1 +15.6 65.5 78.7 +20.1

EBITDA 16.5 43.3 3.6 5.5 +52.6 4.8 25.3 +431.5 8.4 12.6 +50.7

EBITDA margin in % 7.1 16.4 9.5 14.7 3.7 17.1 12.8 16.1

EBIT 1.1 27.8 1.9 3.4 +85.3 -6.0 14.8 n.a. 5.5 9.6 +75.7

EBIT margin in % 0.5 10.5 4.9 9.2 -4.7 10.0 8.4 12.3

Personnel 979 1 055 272 286 +5.1 345 360 +4.3 352 402 +14.2


2017 net sales

by region

The CPH Group Worldwide Operations

2017 net sales

by division

16% Chemistry

56% Paper

28% Packaging

78% Europe

12% The Americas

9% Asia



ObjectiveBalanced shares of net sales

among the three business

divisions

Higher proportion of net sales

generated outside Europe

Less dependency on the Swiss

franc in currency terms

ActionExpand Chemistry and

Packaging Divisions as

counterbalance to Paper

Expand business in markets in

growth regions

Expand production capacities

outside Switzerland

Result

The CPH Group Strategic Objectives

Shares of Chemistry and

Packaging in total net sales

Proportion of net sales

generated outside EuropeProportion of total costs

incurred in Swiss francs

2013 2017

36%

44%

2013 2017

16%

22%

20172013

70%

36%


Contents

1 The CPH Group

2 Investment Case


Appendix


Financial profile showing results of corporate strategy implementation05

Solid equity base and stable anchor shareholders with a long-term commitment06

Leading market position with autonomous brands in three industrial fields01

Diversified portfolio of products and applications provided to a longstanding customer base

02

Achieve and maintain cost leadership in the paper sales markets, sole Swiss recycler of recovered paper

03

Expansion of chemistry and packaging divisions reducing exposure to paper and lowering currency movement risks

04

The CPH Group Investment Case


Leading market position with autonomous

brands in three industrial fields

PackagingPaperChemistry

1

Division

Brand

Positioning Number 3 worldwide for

molecular sieves for industrial

applications

Number 1 in Switzerland for

newsprint & magazine paper

and waste paper recycling

Number 3 worldwide for

coated barrier films for

pharmaceutical applications

3 1 3


PackagingPaper

Diversified portfolio of products and applications

provided to a longstanding customer base

Chemistry

2

Main markets

Industry, Energy, PharmaceuticalsMain markets

PublishingMain markets

Pharmaceuticals


Water

Own sources

Recovered paper

Former Utzenstorf volumes

and sorting facility

Electricity

Liberalized market

Biomass power plant

Own hydro power plant

Productivity 2009-2017

Production volume in tonnes +74%

Personnel required -12%

Fixed costs in CHF -1%

Cost per tonne -32%

Logistics

Transport Market

Heat

Steam from Renergia

Sustainability 2013-2017

CO2 emissions in tonnes down 68 000 to 9 700

Almost carbon-neutral operation

Procurement Production Sales

Achieve and maintain cost leadership in

the paper sales markets, sole Swiss recycler

of recovered paper

3

The PM7: Europe’s most advanced paper machine


November 2015 March 2016 June 2016 June 2017 August 2017 October 2017

Zeochem acquires

molecular sieve

manufacturer ALSIO of

China.

Zeochem sells its

Uetikon operating facility

to the Canton of Zurich

Perlen Packaging

expands to China,

opening a new coatings

production plant

Fertilizer production

ceases at the Uetikon site

after 137 years.

Capacities expanded at

Zeochem USA for

producing molecular

sieves used to purify

oxygen.

Zeochem takes over the

business activities of

Armar and strengthens its

deuterated products

segment.

Expansion of Chemistry and Packaging

Divisions reduce the exposure to paper

and lower currency movement risks

4

November 2017 January 2018 March 2018 August 2018

Zeochem’s new production

plant in Zvornik in Bosnia-

Herzegovina commences

operations.

Perlen Packaging acquires

Sekoya of Brazil and plans

new finishing plant for

2018.

Zeochem acquires the

molecular sieve distribution

activities of Yusheng

Chemical in China.

Zeochem moves the

production of deuterated

products to the new

location in Rüti. According to

strategic targets


Financial profile showing results of corporate

strategy implementation

5

0%

3%

6%

9%

12%

15%

18%

0

100

200

300

400

500

600

2015 2016 2017 H1 2018

Net sales (CHF millions) EBITDA margin (%)


Solid equity base and stable anchor shareholders

with a long-term commitment

Shareholder base (as of 31 December 2017)

49,9%

30,6%

7,2%

5,0%

1,7% 5,6%

Uetikon Industrieholding

Public shareholders

Ella Schnorf-Schmid

J. Safra Sarasin Investmentfonds

BoD, GEM and related parties

Others

0%

20%

40%

60%

80%

100%

2015 2016 2017 H1 2018

Equity ratio development

6


Contents

1 The CPH Group

2 Investment Case


Appendix


The CPH Group Key Figures

in CHF million FY 2016 FY 2017 ± in % H1 2017 H1 2018 ± in %

Net sales 434.8 469.8 +8.0 231.7 264.1 +14.0

EBITDA36.98.5%

33.87.2%

-8.616.57.1%

43.316.4%

+162.4

EBIT5.9

1.4%

2.90.6%

-50.81.1

0.5%

27.810.5%

+2413.2

Net result (including minorities)-7.7

-1.8%

16.23.4%

n.a.-2.2

-0.9%

22.6+8.6%

n.a.

Cash flow 28.3 14.5 -48.8 12.6 33.4 +164.4

Free cash flow 1.9 12.9 +563.4 10.2 0.9 -91.5

Balance sheet total 672.4 697.6 +3.7 672.2 697.1 +3.7

Equity380.856.6%

396.256.8%

+4.1372.655.4%

394.256.5%

+5.8

Personnel 985 1 019 +3.5 979 1055 +7.8


Chemistry Business Development

Net sales EBITDA

2017 net sales by region

CHF million % of net sales

0

20

40

60

80

2014 2015 2016 2017 H1 18

1st half of 2018

Zvornik production ramped up

US and Chinese facilities fully utilized

Acquisition of molecular sieve distribution activities

of Yusheng Chemical in China

Armar integrated

Manufacture of deuterated products moved

to Rüti in summer 2018

CHF million

0%

4%

8%

12%

16%

20%

0

2

4

6

8

10

2014 2015 2016 2017 H1 18

7% Switzerland

27% Rest of Europe

45% Americas

20% Asia



Paper Business Development

0

50

100

150

200

250

300

350

2014 2015 2016 2017 H1 18

Net sales

-5%

0%

5%

10%

15%

20%

-10

0

10

20

30

40

2014 2015 2016 2017 H1 18


EBITDA

First half of 2018

Broad balance in supply and demand prompts

higher paper prices

Waste paper activities of Papierfabrik

Utzenstorf successfully integrated into the new

APS Altpapier Service Schweiz AG

Positive impact of currency exchange rate

trends

CHF million


15% Switzerland

81% Rest of Europe

1% Americas

3% Asia


Packaging Business Development

0

30

60

90

120

150

2014 2015 2016 2017 2018

Net sales

0%

4%

8%

12%

16%

20%

0

4

8

12

16

20

2014 2015 2016 2017 H1 18

EBITDA

First half of 2018

Record order volumes

Capacities in Europe fully utilized; further

transfer of work orders to China

Expansion into Latin America through new

holding in Sekoya of Brazil

BLISTair single-use powder inhaler earns World

Packaging Award

CHF million


6% Switzerland

62% Rest of Europe

16% Americas

15% Asia




The CPH Group Consolidated Balance Sheet

in CHF million 31.12.2017 30.06.2018 ± in CHF ± in %

Liquid funds 80.2 74.6 -5.6

Other current assets 162.1 170.8 +8.7

Fixed assets 455.3 451.7 -3.6

Total assets 697.6 697.1 -0.5 -0.1

Current liabilities 105.4 108.6 +3.2

Long-term liabilities 195.9 194.3 -1.6

Equity 396.2 394.2 -2.0

Total equity and liabilities 697.6 697.1 -0.5 -0.1


The CPH Group Consolidated Cash Flow Statement

in CHF million FY 2016 FY 2017 ± in % H1 17 H1 18 ± in %

Net result (including minorities) -7.7 16.2 n.a. -2.2 22.6 n.a.

Depreciation, amortization, change in

provisions 36.0 -1.7 14.8 10.8

Cash flow 28.3 14.5 -48.8 12.6 33.4 +164.4

Change in net working capital -6.4 17.7 9.1 -5.7

Cash flow from operating activities 21.9 32.2 +47.0 21.8 27.7 +27.2

Cash flow from investment activities -19.9 -19.3 n.a. -11.6 -26.8 n.a.

Free cash flow 1.9 12.9 +563.4 10.2 0.9 -91.5

Financial and other long-term liabilities 18.8 0,6 0.6 -3.1

Dividends to shareholders -3.6 -3.9 -3.9 -3.9

Cash flow from financing activities 15.2 -3.3 n.a. -3.3 -7.0 n.a.

Currency translation effects 0.1 0.2 -0.2 0.6

Net change in cash and cash equivalents 17.2 9.8 -43.0 6.7 -5.6 n.a.


The CPH Group Net Debt and Leverage

Net financial debt in 2017 (CHF in millions)

6,6x

2,2x 2,2x

1,2x

–

2,0x

4,0x

6,0x

8,0x

2015 2016 2017 H1 18

Net debt / EBITDA

Comments

Leverage strongly reduced over the past two years

Net debt reduced by 11% in 2017 (82.1 => 73.1)

Net debt H1 18 close to 2017 level despite CHF 24.5

million investments in business activities

H1 18 Free cash flow before investments in business

activities on high level (CHF 25.4 million)

Leverage development

153,3 80.2

73,1

0

50

100

150

200

Financialliabilities

Liquid funds +securities

Net financialdebt

149,8 74.6

75,2

0

50

100

150

200

Financialliabilities

Liquid funds +securities

Net financialdebt

Net financial debt in H1 18 (CHF in millions)


Packaging

Further expansion of

production in Asia

Integration of Sekoya and

entry into service of finishing

plant in Brazil

Positive business trends and

much-improved earnings

expected

Paper

Newsprint and magazine

paper prices expected to

remain stable, but demand

will continue to decline in the

medium term

Tangible improvements

expected in net sales and

earnings results

Chemistry

Conclusion of strategic

realignment

Transfer to Rüti of deuterated

product manufacture

Higher net sales and

substantially improved

earnings expected

Outlook Optimistic for 2018

CPH Group The newly-acquired companies should have a positive effect on net sales volumes in all three

business divisions. Provided currency exchange rates remain stable, the CPH Group expects to report

higher total net sales and an earnings result for 2018 as a whole that is a substantial improvement on

the previous year.


Outlook Target Key Performance Indicators

Annual organic net sales growth of 3% in the medium term

Equity ratio of over 50%

EBITDA margin of over 10%

Liquidity of at least CHF 30-50 million

Long-term average capital spending of CHF 15-20 million a year

Dividend policy: payout ratio of 30-50%, depending on free cash flow


Thank you for your attention

Any Questions

CPH IR 2018 - Home EN - CPH€¦ · CPH is a diversified Swiss-based and internationally active...

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