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STRATEC SE
Investor Presentation • Nov 7, 2019
416_ip_2019-11-07_dcc7bf27-d74e-4285-ba21-d557fddfdc9e.pdf
Investor Presentation
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STRATEC 9M 2019 FINANCIAL RESULTS
Conference Call – November 7, 2019
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 2019 AT A GLANCE
- 2.FINANCIAL REVIEW
- 3.OUTLOOK
- 4.Q&A
-
- APPENDIX
-
• Dynamic sales growth of 19.6% yoy to € 161.1 million (9M/2018: € 134.6 million) Growth of 17.3% yoy at constant currency
- • Adjusted EBIT up 17.8% to € 20.1 million (9M/2018: € 17.0 million) Adjusted EBIT margin at 12.5% (9M/2018: 12.7%)
- • Successful market launches by our partners LIAISON® XS by DiaSorin and FACSDUET™ by Becton Dickinson
- •Significant progress within major development projects
- • Number of employees increases by 8.5% yoy organically to 1,282 in the light of strong project pipeline
1.9M 2019 AT A GLANCE
2.FINANCIAL REVIEW
- 3.OUTLOOK
- 4.Q&A
-
- APPENDIX
FINANCIALS AT A GLANCE1
| € 0 0 0s |
9 M / 2 0 1 9 |
2 9 M / 2 0 1 8 |
C ha ng e |
|---|---|---|---|
| Sa les |
1 6 1, 0 5 8 |
1 3 4, 6 2 7 |
1 9. 6 % + |
| A d d E B I T D A j te us |
2 7, 0 2 1 |
2 1, 9 6 0 |
2 3. 0 % + |
| A d d E B I T D A ( % ) j in te m us ar g |
1 6. 8 |
1 6. 3 |
5 0 bp + s |
| A d d E B I T j te us |
2 0, 0 8 0 |
1 7, 0 4 4 |
1 7. 8 % + |
| ( % ) A d d E B I T j in te us m ar g |
2. 1 5 |
2. 1 7 |
2 0 bp s - |
| 3 A d d l da d j i inc te te t us co ns ne om e o |
1 5, 8 7 2 |
1 3, 5 9 8 |
1 6. 7 % + |
| 3 A d d ba ha ( € ) j ic ing in te us s ea rn s p er s re |
1. 3 2 |
1. 1 4 |
1 5. 8 % + |
| 3 Ba ha I F R S ( € ) ic ing in s ea rn s p er s re |
0. 7 1 |
0. 5 1 |
3 9. 2 % + |
bps = basis points
1 For comparison purposes, adjusted figures exclude amortization resulting from purchase price allocations in the context of acquisitions and the associated reorganization expenses, as well as other non-recurring effects.
2Not retrospectively restated for IFRS 16.
3 Results from continuing operations.
FINANCIAL REVIEW
SALES
Sales in € million
105.3 107.2 126.3 149.4 134.6 161.1 0 20 40 60 80 100 120 140 160 180 9M/149M/159M/169M/179M/189M/19
9M/2019 sales up 19.6% yoy to € 161.1 million; +17.3% at constant currency
- • Strong call-up numbers for established as well as recently launched systems
- • Double-digit growth rates of service parts and consumables as well as development and services sales
As of September 30
FINANCIAL REVIEW
ADJUSTED EBIT AND EBIT MARGIN
9M/2019 EBIT up 17.8% yoy to € 20.1 million
9M/2019 adjusted EBIT margin down by 20 bps yoy to 12.5%
- (-) Stock appreciation rights (negative margin effect of 90 bps)
- (-) Product/sales mix
- (+) First positive results from earnings improvement initiative
As of September 30
FINANCIAL REVIEW
CASH FLOW AND NET DEBT
| € 0 0 0s |
9 M / 2 0 1 9 |
9 M / 2 0 1 8 |
C ha ng e |
|---|---|---|---|
| Ca h f lo ing iv i ies t t t s er a a c w op – |
1 1. 1 |
1 5. 4 |
2 7. 9 % - |
| Ca h f lo inv iv i ies tm t a t t s w es en c – |
2 1. 1 - |
3. 9 - |
nm |
| Ca f f h lo ina ing iv i ies t t s nc a c w – |
2. 8 |
9. 9 - |
nm |
| Fr h f lo ee c as w |
1 0. 0 - |
1 1. 5 |
nm |
| € 0 0 0s |
9 M / 2 0 1 9 |
F Y / 2 0 1 8 |
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 |
6. 3 1 |
2 3. 8 |
3 % 1. 5 - |
| Eq ( % ) i io ty t u ra |
5 0. 3 |
5 5. 3 |
5 0 0 bp s - |
| N de b t t e |
8 6. 1 |
3. 5 1 |
6 2. % 1 + |
-
•Cash flow from operating activities down 27.9% yoy to € 11.1 million
-
- adverse effects from higher cash tax payments
-
-
- timing issues within inventories and receivables
- • Higher investment spending due to significant capacity expansion at HQ (construction projects) and high development activities
- • Investment ratio1 of 12.6% for the first nine months within full year target corridor of 12% to14%
- •Higher net debt position attributable to financing of capex investments and first time adoption of IFRS 16
1 Total investments in intangible and tangible assets in % of sales
- 1.9M 2019 AT A GLANCE
- 2.FINANCIAL REVIEW
- 3.OUTLOOK
- 4.Q&A
-
- APPENDIX
OUTLOOK
FINANCIAL GUIDANCE 2019 CONFIRMED
- •Group sales are expected to increase by at least 12% (at constant exchange rates)
- •Adjusted EBIT margin of around 14% to 15% (2018: 13.9%)
- Positive scale effects
- First positive impact from already defined earnings improvement measures
- Adverse effects from continuing high development activities
Q4 margin expected to benefit from product mix, development sales with above-average margins and earnings improvement initiative
•Investments in tangible and intangible assets of around 12% to 14% of sales
- Ongoing construction measures for significant capacity expansion
- Investments due to high number of development projects
- After significant increase in 2018 and 2019 investment ratio will likely decline considerably from 2020 onwards once construction projects for capacity expansion have been completed
OUTLOOK
FOCUS IN 2019 AND BEYOND
• Reduce earnings volatility across business units and improve EBIT contribution of Smart Consumables business
- •Achieve significant number of product launches
- Two systems for partners were launched year-to-date
- Further expected launches among others include a blood banking instrument, a proprietary analyzer platform and various stand-alone modules
- •Sign several new development and supply agreements
- •Drive results from defined earnings improvement initiative
- •Expand development capacities including significant expansion of buildings
- •Prepare path to efficiency gains following successful ERP system implementation
QUESTIONS & ANSWERS
9M 2019 FINANCIAL RESULTS – NOVEMBER 7, 2019
APPENDIX
ADJUSTMENTS
EBIT
| € 0 0 0s |
9 M / 2 0 1 9 |
|---|---|
| A d j d E B I T te us |
2 0, 0 8 0 |
| A d j tm ts us en : |
|
| Tr lat d d a d io iat ct an sa n- re e ex p en se s a n sso c e ing str tu re uc r ex p en se s |
-2 2 3 0 , |
| P P A iza io t t am or n |
-6 7 7 3 , |
| E B I T |
1 1, 0 7 7 |
Consolidated net income
| € 0 0 0s |
9 M / 2 0 1 9 |
|---|---|
| A d j d l i da d in fro te te t us co ns o ne co m e m in in io t t co n u g op er a ns |
8 2 1 5, 7 |
| j in fro A d d ha 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. 3 2 |
Adjustments:
| in fro in in Ea ha t rn g s p er s re m c on u g io in € ( ba ic ) t op er a ns s |
0. 7 1 |
|---|---|
| Co l i da d in fro in in te t t ns o ne co m e m co n u g io t op er a ns |
8, 5 4 4 |
| De fe d t inc rre ax om e |
1, 0 7 4 |
| Cu nt tax rre ex p en se s |
6 0 0 |
| P P A iza io t t am or n |
-6 7 7 3 , |
| Tr lat d d a d io iat ct an sa n- re e ex en se s a n sso c e p ing str tu re uc r ex p en se s |
-2 2 3 0 , |
CONTACT
STRATEC SE Gewerbestr. 37 75217 Birkenfeld Germany
www.stratec.com
CONTACT
Marcus Wolfinger CEO
Jan Keppeler, CFA Head of Investor Relations & Corporate Communications
Phone +49 7082 7916-6515 [email protected]
