SEMPERIT AG HOLDING HALF -YEAR FINANCIAL REPORT 2022
2 | Semperit-Group I Half-year financial report 2022 | Half-year group management report | |||||||
Key performance figures | |||||||||
in EUR million | H1 2022 | Change | H1 2021 | Q2 2022 | Veränderung | Q2 2021 | 2021 | ||
Revenue | 570.6 | -13.6% | 660.8 | 293.6 | -13.1% | 337.7 | 1,182.2 | ||
EBITDA | 75.2 | -69.6% | 247.5 | 38.7 | -69.1% | 125.3 | 361.8 | ||
EBITDA margin | 13.2% | -24.3 PP | 37.5% | 13.2% | -23.9 PP | 37.1% | 30.6% | ||
EBIT | 48.4 | -78.5% | 224.6 | 24.7 | -78.3% | 113.8 | 315.0 | ||
EBIT margin | 8.5% | -25.5 PP | 34.0% | 8.4% | -25.3 PP | 33.7% | 26.6% | ||
Earnings after taxes | 34.7 | -80.0% | 173.9 | 19.2 | -78.3% | 88.4 | 247.5 | ||
Earnings per share (EPS)1, in EUR | 1.68 | -80.0% | 8.42 | 0.93 | -78.3% | 4.29 | 11.99 | ||
Gross cash flow | 47.0 | -79.6% | 230.5 | 17.4 | -84.4% | 111.9 | 323.4 | ||
Return on equity2 | 12.4% | -64.1 PP | 76.5% | 6.9% | -32.0 PP | 38.9% | 45.7% | ||
Balance sheet key figures | |||||||||
in EUR million | 30.06.2022 | Change | 30.06.2021 | 31.03.2022 | Change | 31.03.2021 | 31.12.2021 | ||
Total assets | 969.9 | 3.8% | 934.6 | 996.7 | 15.2% | 865.3 | 958.6 | ||
Equity | 556.4 | 22.6% | 453.8 | 560.4 | 41.5% | 396.1 | 540.1 | ||
Equity ratio | 57.4% | +8.8 PP | 48.6% | 56.2% | +10.4 PP | 45.8% | 56.3% | ||
Additions to intangible assets | |||||||||
and property, plant and | |||||||||
equipment | |||||||||
20.3 | -7.9% | 22.0 | 10.0 | -17.9% | 12.2 | 56.4 | |||
Employees (at reporting date)1 | 6,936 | -0.3% | 6,956 | 7,007 | 0.1% | 7,001 | 6,948 | ||
Sector and segment key figures | |||||||||
in EUR million | H1 2022 | Change | H1 2021 | Q2 2022 | Change | Q2 2021 | 2021 | ||
Industrial Sector = Semperflex + Sempertrans + Semperform + Semperseal | |||||||||
Revenue | 372.3 | 38.9% | 268.1 | 201.3 | 46.0% | 137.9 | 556.1 | ||
EBITDA | 68.0 | 64.4% | 41.3 | 41.5 | >100% | 20.7 | 82.1 | ||
EBIT | 54.5 | 88.0% | 29.0 | 34.9 | >100% | 14.5 | 56.8 | ||
Semperflex | |||||||||
Revenue | 173.7 | 51.8% | 114.4 | 93.9 | 57.1% | 59.7 | 240.5 | ||
EBITDA | 46.8 | 78.5% | 26.2 | 27.3 | 95.9% | 13.9 | 51.3 | ||
EBIT | 40.9 | 98.1% | 20.6 | 24.3 | >100% | 11.1 | 40.0 | ||
Sempertrans | |||||||||
Revenue | 69.8 | 36.5% | 51.1 | 41.5 | 71.4% | 24.2 | 104.5 | ||
EBITDA | 6.6 | >100% | 1.8 | 5.3 | >100% | 0.8 | 6.8 | ||
EBIT | 4.7 | >100% | 0.1 | 4.4 | >100% | -0.1 | 3.2 | ||
Semperform | |||||||||
Revenue | 53.7 | 23.7% | 43.4 | 27.5 | 16.3% | 23.6 | 90.6 | ||
EBITDA | 8.3 | 24.2% | 6.6 | 5.0 | 40.5% | 3.6 | 12.4 | ||
EBIT | 6.1 | 27.9% | 4.8 | 4.0 | 50.2% | 2.6 | 8.5 | ||
Semperseal | |||||||||
Revenue | 75.1 | 27.1% | 59.0 | 38.4 | 26.7% | 30.3 | 120.5 | ||
EBITDA | 6.3 | -5.4% | 6.6 | 3.9 | 62.1% | 2.4 | 11.6 | ||
EBIT | 2.8 | -18.9% | 3.4 | 2.3 | >100% | 0.8 | 5.1 | ||
Medical Sector = Sempermed | |||||||||
Revenue | 198.3 | -49.5% | 392.7 | 92.3 | -53.8% | 199.8 | 626.1 | ||
EBITDA | 15.6 | -92.9% | 220.5 | 2.3 | -98.0% | 115.3 | 301.1 | ||
EBIT | 2.9 | -98.6% | 210.6 | -4.7 | >100% | 110.3 | 280.9 | ||
Note: Rounding differences in the totalling of rounded amounts and percentages may arise from the use of automatic data processing.
- Earnings per share are only attributable to the core shareholders of Semperit AG Holding (excl. remuneration from hybrid capital).
- Based on a full-year projection.
Group Half-Year Management Report | Semperit Group I Half-Year Financial Report 2022 | 3 |
Group management report
As expected, the publicly listed Semperit Group recorded a decrease in earnings in H1 2022 in comparison with the exceptionally strong results in H1 2021. In the Industrial Sector, the result for the same period in the previous year was clearly exceeded - despite the difficult global market environment. Meanwhile, the corona pandemic-induced special economic cycle brought about in the Medical Sector by the pandemic came to an end as expected.
Economic environment
In the world economic update published by the International Monetary Fund (IMF) in July 2022, global growth is projected to slow from 6.1% last year to 3.2% in 2022, which is 0.4 percentage points lower than the update in April 2022. The growth forecasts for advanced economies like the USA (2021: 5.7%) and the Eurozone (2021: 5.4%) were adjusted by −1.4 and −0.2 percentage points compared to the figures of 3.7% and 2.8% projected in April 2022 (USA 2022: 2.3%, Eurozone 2022: 2.6%). The growth forecasts for emerging market and developing economies (2021: 6.8%) from April were also revised downward by 0.2 percentage points for 2022 owing to further lockdowns and the further escalation of the property sector crisis, being lowered from 3.8% to 3.6%.
These IMF economic forecasts reflect the timid recovery in 2021 and the gloomy developments in 2022. In summary, global production slumped in Q2 2022 due to slowdowns in China and Russia, while consumer spending in the US was lower than expected too. Weakened by the pandemic, the global economy finds itself faced with inflation that is higher than expected worldwide as well as with the economic downturn. Other factors curbing growth include waves of the coronavirus and the lockdowns instituted in response, along with other negative direct and indirect effects of the war in Ukraine.
Development of the raw materials markets
Over the course of H1 2022, prices on the relevant Asian commodity exchanges for natural rubber (most relevant for Sempertrans) and natural latex (relevant for Sempermed) increased compared with the same period of the previous year. The prices for natural rubber rose slightly by 3%, while natural latex jumped up by 7%.
In H1 2022, the average prices for the essential basic raw material butadiene (relevant for all segment s) reached a significantly higher level than in H1 2021 in Asia (+25%) and in Europe (+54%) in particular. This, combined with a significant supply shortage in the face of sustained strong demand, led to a further sharp rise in the prices of butadiene derivatives, such as butadiene rubber, styrene butadiene rubber, and nitrile butadiene rubber, between January and June 2022. Another factor driving up costs for synthetic rubber in Europe was the skyrocketing price of gas (+350% compared to H1 2021). Since the end of H1 2021, the level of gas prices in Malaysia has virtually doubled - as a consequence of the deregulation of the Malaysian market in conjunction with global price increases for oil and gas.
Prices for nitrile latex, the most important raw material for Sempermed, continued to decline over the course of H1 2022 despite increased prices for butadiene due to declining market demand.
The price trend of heavy fuel oil (HFO), which in turn correlates closely with the general trend in crude oil prices, is a relevant indicator for the filler carbon black, which is used in the entire Industrial Sector. The average HFO price between January and June 2022 was more than 50% higher than in the same period of the previous year. Due to this development and a tight supply situation (made even worse since the outbreak of the war in Ukraine) as well as considerably higher energy and logistics costs, carbon black prices more or less doubled compared with H1 2021.
The price of iron ore - the basic raw material for wire rod - was highly volatile in H1 2022, with an average value of USD 142/tonne, putting it 23% under the corresponding value in the same period of the previous year.
4 | Semperit Group I Half-Year Financial Report 2022 | Group Half-Year Management Report |
In H1 2022, prices for wire rod - a raw material relevant for the Semperflex, Sempertrans, and Semperform segments - continued the rising trend that began in mid-2020, reaching a temporary peak at the end of Q1 2022. On average, the prices were approximately one third higher in H1 2022 than in H1 2021.
Group Half-Year Management Report | Semperit Group I Half-Year Financial Report 2022 | 5 |
Russia-Ukraine conflict
On 24 February 2022, the Russia-Ukraine conflict reached a new level of escalation with Russia launching a war of aggression against Ukraine. Since the outbreak of this war, numerous international punitive sanctions have been imposed on Russia (and Belarus), covering measures in the energy, finance and transport sectors, technology import restrictions, export controls and visa restrictions. In addition to sanctions imposed against Russia's central bank, certain Russian financial institutions have also been excluded from the bank communication network SWIFT which allows international payments to be executed securely and quickly. The USA responded to Russia's invasion of Ukraine further by imposing a ban on imports of Russian oil and natural gas. The EU also approved a gradual ban on imports of coal, crude oil, and refined petroleum products (oil embargo) as well as on fossil fuels from Russia.
The Russian ruble (RUB) reacted with a massive decline in value and the Russian National Bank implemented comprehensive foreign exchange restrictions to stabilise the Russian currency market. In the meantime, the rating agencies have downgraded Russia's credit rating to "junk bond" status for high-risk financial investments. The Russian state defaulted on foreign debt as a consequence of the sanctions at the end of June 2022.
Energy prices reacted with record levels: In March 2022, market prices for Brent and WTI crude oil reached their highest levels in over 15 years in global wholesale trading. The prices for natural gas behaved similarly. In natural gas-intensive industrial sectors, temporary production shutdowns are already taking place.
In H1 2022, the direct and indirect consequences of these developments already being observed included material shortages, drastically increased and more volatile prices for energy, raw materials, input and intermediate products, transportation, and supply chain issues, changing interest rates and interest rate expectations, and further rising inflation. Under these conditions, there may be significant effects on the overall competitiveness of Europe as an industrial location.
In the context of the EU sanctions, the Semperit Group stopped deliveries to customers in Russia and Belarus shortly after the war started. See Note 2.2. "Revenue" for the Semperit Group's share of revenue from customers in the countries affected by the Russia-Ukraine conflict (Russia, Belarus, and Ukraine).
A shift in global procurement flows and inventory management is to be noted for key raw materials and consumables used in the manufacture of vulcanised rubber products as a result of the Russia- Ukraine conflict. The Semperit Group has long since stepped up international multiple sourcing activi- ties. The materials are no longer procured from Russian companies included on the sanctions list or from companies owned by sanctioned individuals. This has led to further changes in sourcing by the Semperit Group and the procurement flows. Availability of relevant materials has been secured. Other significant influencing factors in connection with the war and in particular with the sanctions are the risks that special raw materials and consumables which are necessary for the production of vulcanised rubber products and / or further companies along the supply chain could be included on the sanctions list. This would lead to further shifts in procurement flows and to price increases.
In light of the strained situation, reserves of production-critical materials, such as certain fillers, have been increased. Storage capacities along the supply chain are used for this purpose. However, increasing reserves in relation to the rise in finished products increased the trade working capital to a level that is being temporarily consciously introduced in line with a proactive approach to securing production and delivery reliability on the understanding that it conflicts with the long-term objective of the Semperit Group. In regard to securing supplies, road freight transport has also seen constraints and an increase in the cost of European freight capacities due to the lack of Russian, Ukrainian, and Belarusian truck drivers.
Prices for synthetic rubber, paraffinic oils and fillers, such as carbon black and silicates, correlate strongly with the market price trend for crude oil and natural gas due to the energy intensity of their production. Suppliers are dropping out as a result of the sanctions, whereby price-driving surplus demand can also be observed. In light of this, the Semperit Group again anticipates price increases - in
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Semperit AG Holding published this content on 17 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2022 05:43:06 UTC.
