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 Companies of 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 Our Brands 2

Net Sales Growth of 11% q-o-q Net Sales in mEUR and change q-o-q in % +11,5% +10,2% 68,3 70 25 62,0 61,2 60,4 58,5 60 20 50 15 40 30 10 20 5 10 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights • Growth in all segments • Development mirrors continuous concentration on growth strategy Our Brands 3

Net Sales per Region Net Sales per Region Q1 17 Q1 18 in mEUR 1,2 1,0 17,3 15,9 29,7 36,0 13,9 14,5 Highlights Highlights • 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 Our Brands 4

Microbatteries Continuous growth and economies of scale effects In mEUR In % of Net sales Net sales (Adj.) EBITDA +9,8% +34,1% 56,3 12,9 13,2 13,1 60 52,2 1,0 15 30 51,3 50,5 49,5 0,8 9,8 26% 26% 40 10 7,9 20 23% 0,6 19% 0,4 15% 20 5 10 0,2 0 0,0 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • 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 Our Brands 5

Power & Energy Continuous growth and positive in EBITDA In mEUR In % of Net sales Net sales (Adj.) EBITDA +148,5 +21,6% 0,7 15 1,0 1 40 11,8 0,8 9,7 9,4 9,4 9,1 0 20 6% 10 0,6 -7% -7% -1 0 -14% 0,4 -19% 5 -0,7 -0,6 -2 -20 0,2 -1,4 -1,7 0 0,0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • Growth reflects strong demand for storage solutions • Goal of changing from negative to positive EBITDA achieved Our Brands 6

Adj. EBITDA Over proportional growth in adjusted EBITDA Adj. EBITDA in mEUR and in % of Net Sales +50,0% 13,9 14 25 11,2 12 10,2 20 9,3 10 8,5 20% 18% 15 8 17% 15% 6 14% 10 4 5 2 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • 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 Our Brands 7

Adj. EBIT Adj. EBIT in mEUR and in % of Net Sales +62,1% 11,4 12 25 10 8,8 20 7,8 17% 7,0 15% 8 13% 6,0 15 11% 6 10% 10 4 5 2 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • 2018 shows two digit EBIT margin level • EBIT reflects concentration on strengthening paybacks of capex spending Our Brands 8

Consolidated Result More than doubled, in comparison to Q1 2017 Consolidated result in mEUR and in % of Net Sales +112,9% 8,0 7,4 8 25 6,5 6 20 3,8 13% 12% 4 15 11% 2 6% 10 0 5 -2 0 -7% -4 -5 -6 -4,2 -10 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • Taxrate in 2018 slightly reduced in comparison to 2017 • Development of consolidated result reflects Strategy – of concentration on over proportional development of results Our Brands 9

Total Assets IPO effects and high results shape development of total assets Total Assets in mEUR +108,0% 342,3 331,5 350 25 300 20 250 181,8 15 200 164,6 168,5 150 10 100 5 50 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • Net Proceeds of around 178 mEUR shape balance sheet in 2017 and Q1 2018 • Net Cash position of over 117,6 mEUR Our Brands 10

Trade Working Capital TWC ratio higher Trade Working Capital in mEUR and in % of Net Sales +28,5% 56,4 60 25 49,9 50 43,9 20 41,4 38,5 40 15 30 10 20 5 10 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • 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 Our Brands 11

Net Debt Net Debt in mEUR -125,4 20 25 12,9 7,8 10 2,6 20 0 15 -10 -110 10 -120 -117,6 5 -130 -130,1 -140 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • 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 Our Brands 12

Equity Positive results and IPO let equity ratio boost Equity in mEUR and in % of total assets +246,9% 230,5 238,3 240 70 70% 70% 60 220 75,7 81,4 68,7 50 80 40 45% 60 45% 30 42% 40 20 20 10 0 0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Highlights Highlights • Equity Ratio increased to 70% due to IPO and the positive development of the results Our Brands 13

Cashflow Cashflow from Cashflow from Cashflow from Cashflow from In mEUR In mEUR operating activities operating activities investing activities investing activities -92,6% -92,6% +1 535,3% +1 535,3% 8,7 8,7 6,2 6,2 5,8 5,8 -0,8 -1,3 -3,2 0,4 0,4 -8,2 -2,3 -2,3 -12,4 Q1 17 Q1 17 Q2 17 Q2 17 Q3 17 Q3 17 Q4 17 Q4 17 Q1 18 Q1 18 Q1 17 Q1 17 Q2 17 Q2 17 Q3 17 Q3 17 Q4 17 Q4 17 Q1 18 Q1 18 Highlights Highlights • Cash Flow from operating activities highly affected by one time effects of development of inventories • Investments in capacity increase at highest level Our Brands 14

Outlook 2018

Outlook 2018 Highlights • 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 Our Brands 16

Contact Investor Relations Financial Calender 24.04.2018 Interim report Q1 2018 Dr. Michael Pistauer Board VARTA AG 19.06.2018 Annual General Meeting Daimlerstraße 1 28.08.2018 Interim report half year results 2018 73479 Ellwangen 25.10.2018 Interim report Q3 2018 E-Mail: ir@varta-ag.com Our Brands 17