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STRATEC SE — Investor Presentation 2020
Nov 5, 2020
416_ip_2020-11-05_7254dcb9-2122-445d-965a-786f02df2b4b.pdf
Investor Presentation
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9M 2020 FINANCIAL RESULTS
Conference Call – November 5, 2020
Forward-looking statements involve risks.
This company presentation contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected.
It is not planned to update these forward-looking statements.
1. 9M 2020 HIGHLIGHTS
-
- FINANCIAL REVIEW
-
- OUTLOOK
-
- Q&A
-
- APPENDIX
9M 2020 AT A GLANCE
- • Sales in 9M 2020 up organically by 13.1% yoy to € 179.1 million (9M 2019: € 158.3 million)
- Organic growth of 22.4% in Q3 2020
- • Adjusted EBIT in 9M 2020 up by 40.7% to € 28.1 million (9M 2019: € 20.0 million)
- Adjusted EBIT in Q3 2020 up by 35.2%
- • Achievement of major development milestones
- e.g. launch of serial production for a polymer-based smart consumable in the field of flow cytometry
- • New cooperation agreements concluded and several promising late stage negotiations regarding new development projects with partners
- • Number of employees up by 2.6% to 1,315 organic increase of 7.0%
UPDATE COVID-19 PANDEMIC
- •Several STRATEC customers are at the forefront of containing the COVID-19 pandemic
- • Significant proportion of genetic COVID-19 testing is performed on systems developed and manufactured by STRATEC
- • Unbroken and unprecedented demand within certain product lines:
- Number of molecular diagnostics analyzer shipments more than doubled yoy in 9M 2020
- Additional demands for immunoassay solutions due to antibody screening tests
- •Supply chain challenges in light of massive capacity ramp-up
- •Health of our employees remains top priority
9M 2020 HIGHLIGHTS
CONSTRUCTION WORK AT HEADQUARTER COMPLETED
BEFORE
20 Mio. € investment +15.000 sqm for development, prototyping, storage and administration
NOW
-
- FINANCIAL REVIEW
-
- OUTLOOK
-
- Q&A
-
- APPENDIX
FINANCIALS AT A GLANCE
| € 0 0 0s |
9 / 2 0 2 0 M |
2 9 / 2 0 9 M 1 |
C ha ng e |
Q 3 / 2 0 2 0 |
2 Q 3 / 2 0 9 1 |
C ha ng e |
|---|---|---|---|---|---|---|
| Sa les |
1 7 9, 0 8 2 |
1 5 8, 3 3 6 |
+1 3. 1 % |
5 9, 7 1 5 |
4 9, 7 3 2 |
+2 0. 1 % |
| A A d d E B I T D j te us |
3 5, 8 2 1 |
2 6, 7 7 6 |
+3 3. 8 % |
1 2, 2 8 4 |
9, 4 5 1 |
+3 0. 0 % |
| A d d E B I T D A ( % ) j in te us m ar g |
2 0. 0 |
1 6. 9 |
+3 1 0 bp s |
2 0. 6 |
1 9. 0 |
+1 6 0 bp s |
| A d d E B I T j te us |
2 8, 2 1 1 |
9, 9 8 1 5 |
+4 0. % 7 |
9, 0 8 7 |
8 0 7, 1 |
+3 2 % 5. |
| A d d E B I T ( % ) j in te us m ar g |
1 5. 7 |
1 2. 6 |
+3 1 0 bp s |
1 6. 3 |
1 4. 4 |
+1 9 0 bp s |
| 3 A d d l da d j i inc te te t us co ns o ne om e |
2 3, 7 6 5 |
1 5, 9 3 1 |
+4 9. 2 % |
8, 1 7 0 |
5, 4 7 6 |
+4 9. 2 % |
| 3 ( € ) A d d ba ha j ic ing in te us s ea rn s p er s re |
9 1. 7 |
3 3 1. |
+4 8. % 1 |
0. 6 7 |
0. 4 6 |
+4 % 5. 7 |
| 3 Ba ha I F R S ( € ) ic ing in s ea rn s p er s re |
1. 5 5 |
0. 7 2 |
+1 1 5. 3 % |
0. 5 4 |
0. 2 4 |
+1 2 5. 0 % |
bps = basis points
To facilitate comparison, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and associated reorganization expenses
2Retrospectively adjusted to account for the recognition of the Data Solutions business unit as a discontinued operation pursuant to IFRS 5.
Consolidated net income from continuing operations.
FINANCIAL REVIEW
SALES
Sales in € million
107.2126.3149.4134.6158.3179.10204060801001201401601809M/15 9M/16 9M/17 9M/18 9M/19 9M/20
9M 2020 sales organically up by 13.1% yoy to € 179.1 million
- • Double-digit growth with systems as well as service parts and consumables
- • Continuing strong demand for MDx systems as a result of COVID-19 pandemic
- • Significantly lower amount of recognized development revenues due to strong prior year comparison basis (particularly in Q2)
As of September 30
FINANCIAL REVIEW
ADJUSTED EBIT AND EBIT MARGIN
As of September 30
9M 2020 adjusted EBIT up 40.7% yoy to € 28.1 million
9M 2020 adjusted EBIT margin at 15.7 %
Margin expansion of 310 bps yoy
- (+) Economies of scale
- (+) Positive sales and product mix
- (+) Earnings improvement initiative
- (-) Stock appreciation rights (negative margin effect of 280 bps)
FINANCIAL REVIEW
CASH FLOW AND NET DEBT
| € 0 0 0s |
9 M / 2 0 2 0 |
9 M / 2 0 1 9 |
C ha ng e |
|---|---|---|---|
| Ca f h lo ing iv i ies t t t s w op er a a c – |
8, 8 9 8 1 |
0 8 6 1 1, |
0. % 7 5 + |
| Ca f h lo inv iv i ies tm t a t t s es en c w – |
0 4 1 5, 1 - |
2 3 1, 1 1 - |
nm |
| Ca h f lo f ina ing iv i ies t t s w nc a c – |
5, 4 0 6 |
7, 2 2 8 - |
nm |
| Fr h f lo ee c as w |
3, 8 5 7 |
1 0, 0 2 7 - |
nm |
- • Cash flow from operating activities up by 70.5% yoy to € 18.9 million due to increased profitability and lower cash tax payments
- • Still elevated working capital levels as a result of COVID-19 pandemic
- • Investment ratio1 of 9.9% for the first nine months slightly below full year target corridor of around 10% to 12%
| € 0 0 0s |
9 M / 2 0 2 0 |
F Y / 2 0 1 9 |
C ha ng e |
|---|---|---|---|
| Ca h d h len iva ts s an ca s eq u d f p d io t e a n o er |
2 6 8 7, 5 |
2 2, 0 8 7 |
2 4 % 1. + |
| Eq ( % ) i io ty t u ra |
5 0. 3 |
5 3. 1 |
2 8 0 bp s - |
| N de b t t e |
9 1, 1 2 4 |
7 7, 2 5 4 |
1 8. 0 % + |
1 Total investments in intangible and tangible assets in % of sales
-
- 9M 2020 HIGHLIGHTS
-
- FINANCIAL REVIEW
-
- OUTLOOK
-
- Q&A
-
- APPENDIX
FINANCIAL GUIDANCE FOR FY 2020
- • Group sales are expected to increase by 14.0% to 18.0% (at constant exchange rates; 2019 revenue basis of € 214.2 million)
- Additional demand due to COVID-19 pandemic expected to remain high in Q4 2020
- Upper end of target corridor expected
- • Adjusted EBIT margin of around 15.5% to 16.5% (2019: 13.7%)
- Sales and product mix expected to remain strong in Q4 2020
- Upper end of target corridor expected
- • Investments in tangible and intangible assets of around 10% to 12% of sales
- After the completion of construction projects for capacity expansion, investment ratio will likely decline considerably from 2021 onwards
QUESTIONS& ANSWERS
APPENDIX
ADJUSTMENTS
EBIT
| € 0 0 0s |
9 / 2 0 2 0 M |
1 9 / 2 0 9 M 1 |
||
|---|---|---|---|---|
| j A d d E B I T te us |
2 8, 2 1 1 |
9, 9 8 1 5 |
||
| A d j tm ts us en : |
||||
| P P A iza io t t am or n |
-6 0 7 1 , |
-6 7 7 4 , |
||
| Ex lat ing io to tr ct p en se s r e an sa ns d a d iat ing str tu an sso c e re uc r ex p en se s |
0 | -2 2 3 0 , |
||
| E B I T |
2 2, 0 5 0 |
1 0, 9 8 1 |
Retrospectively adjusted
Consolidated net income
| € 0 0 0s |
9 M / 2 0 2 0 |
1 9 M / 2 0 1 9 |
|---|---|---|
| A d j d l i da d in te te t us co ns o ne co m e fro in in io t t m c on u g op er a ns |
2 3, 7 6 5 |
1 5, 9 3 1 |
| A d j d in ha fro te us ea rn g s p er s re m in in io in € ( ba ic ) t t co n u g op er a ns s |
1. 9 7 |
1. 3 3 |
Adjustments:
| P P A iza io t t am or n |
-6 0 7 1 , |
-6 7 7 4 , |
|---|---|---|
| Ex lat d ing io to tr ct p en se s r e an sa ns an d iat ing str tu as so c e re uc r ex en se s p |
0 | -2 2 3 0 , |
| Ta inc xe s o n om e |
9 4 6 |
1, 6 7 6 |
| Co l i da d in te t ns o ne co m e fro in in io t t m co n op er a ns u g |
8, 6 4 0 1 |
8, 6 0 3 |
| in fro Ea ha rn g s p er s re m in in io in € ( ba ic ) t t co n u g op er a ns s |
1. 5 5 |
0. 2 7 |
Retrospectively adjusted
CONTACT
STRATEC SEGewerbestr. 3775217 BirkenfeldGermany
Phone +49 7082 7916-991Fax +49 7082 7916-9190www.stratec.com
CONTACT
Marcus WolfingerCEO
Jan Keppeler, CFA Head of Investor Relations & Corporate Communications
Phone +49 7082 7916-6515 [email protected]