CPH Chemie + Papier : Baader Helvea Swiss Equities Conference 13 January 2021 ()

CPH Chemie + Papier Holding AG

Baader Helvea Swiss Equities Conference

13 January 2021

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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Disclaimer

Investing in the shares of CPH Chemie + Papier Holding AG involves risks. Prospective investors are strongly requested to consult their investment advisors and tax advisors prior to investing in shares of CPH Chemie + Papier Holding AG . This document contains forward-looking statements which involve risks and uncertainties. These statements are made on the basis of current knowledge and assumptions. Various factors could cause actual future results, performance or events to differ materially from those described in these statements. No obligation is assumed to update any forward-looking statements. Potential risks and uncertainties include such factors as general economic conditions, foreign exchange fluctuations, competitive product and pricing pressures and regulatory developments. The information contained in this document has not been independently verified and no representation or warranty, express or implied, is made to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. The information in this presentation is subject to change without notice, it may be incomplete or condensed, and it may not contain all material information concerning the CPH Group. None of CPH Chemie + Papier Holding AG or their respective affiliates shall have any liability whatsoever for any loss whatsoever arising from any use of this document, or its content, or otherwise arising in connection with this document. This document does not constitute, or form part of, an offer to sell or a solicitation of an offer to purchase any shares and neither it nor any part of it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. This information does neither constitute an offer to buy shares of CPH Chemie + Papier Holding AG nor a prospectus within the meaning of the applicable Swiss law.

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group At a glance

The CPH Chemie + Papier Holding AG is a diversified and international operating industrial group founded in 1818 and headquartered in Switzerland. The CPH shares have been listed on the SIX since 2001 with the founding families as strong anchor shareholders.

524.7 56.6 48.4

Sales 2019 in CHF million

EBIT 2019 in CHF million

Net result 2019 in CHF million

3 1086 13

Business Divisions

Personnel

Production sites

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Key figures

in CHF million	2018	2019	± in CHF	± in %

Net sales

533.5

524.7

-8.9

-1.7

EBITDA	83.1	88.0	+4.9	+5.9
in % of net sales	15.6	16.8
EBIT	51.6	56.6	+5.0	+9.6
in % of net sales	9.7	10.8
Net result (including minorities)	42.3	48.5	+6.2	+14.6
in % of net sales	7.9	9.2
Cash flow	69.0	79.9	+10.9	+15.9
Adjusted free cash flow 1)	19.5	39.9	+20.4	+104.6
Balance sheet total	800.5	702.7	-97.8	-12.2
Equity	407.1	441.3	+34.2	+8.4
in % of the balance sheet total	50.9	62.8
Personnel	1081	1086	+5 FTEs	+0.5

1) excluding CHF 100 million fixed-term deposit of funds generated by corporate bond issue of 12.10.2018, repaid 9.7.2019

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Broad and innovative product portfolio

Chemistry

Paper

Packaging

Products

Molecular sieves,		PVC monofilms,
chromatography gels, specialty	Newsprint and magazine paper
PVdC coated films
zeolites, deuterated products

Markets

Industry, energy,	Publishing	Pharmaceuticals
pharmaceuticals

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Business Divisions

Key figures

2019

(CHF million)

Market

position

Strategy

Production

locations

ChemistryPaper

78.2	9.5	293.2	54.5
Net sales	EBITDA	Net sales	CHF 78.2 Mio.
EBITDA
			CHF 9.5 Mio.
			287

3	1
Number 3 worldwide in	Number 1 in Switzerland for
molecular sieves for industrial	newsprint and magazine paper
use	manufacture and its biggest
	recovered paper recycler
Differentiation	Cost leadership

Packaging

153.2	23.7
Net sales	EBITDA

3

Number 3 worldwide for coated barrier films for pharmaceutical applications

Differentiation

Brands

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group "Strategy 2024" approved

Objectives

Actions

Results

Net sales broadly

balanced among the three

divisions

Expand Chemistry and

Packaging

in % 46

44

42

40

38

36

34

20152019 Chemistry and

Packaging's share of

total net sales

Higher share of net sales

from outside Europe

CHF 78.2 Mio.

CHF 9.5 Mio.

287

Expand in markets in growth

regions

in % 26

24

22

20

18

16

14

20152019

Proportion of net sales from

outside Europe

Less exposure to the

Swiss franc in currency

terms

Expand production capacities

outside Switzerland

in % 76

68

60

52

44

36

28

20152019

Proportion of costs incurred

in Swiss francs

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Worldwide sites in 2014

2

4

Müllheim München

Perlen Uetikon

Louisville

Whippany

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Worldwide sites in 2019

6

	2		Müllheim
							Gröbenzell		3
									Zvornik
				Utzenstorf
				Perlen				Rüti		Lianyungang
Louisville				Whippany					Suzhou	Shanghai

1

1

Singapore

Anápolis

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Key figures 1st half of 2020

in CHF million	H1 19 H1 20	± in %

Net sales

267.5 231.8

-13.3

EBITDA	47.8	33.5	-29.9
EBITDA margin in %	17.9	14.5
EBIT	32.0	17.8	-44.4
EBIT margin in %	12.0	7.7
Net result (incl. minorities)	27.2	27.2	-0.2
in % of net sales	10.2	11.7
Cash flow	42.3	27.5	-35.1
Free cash flow	21.4	22.9	7.0
Balance sheet total	815.8	691.1	-15.3
Equity	422.3	454.2	7.6
in % of balance sheet total	51.8	65.7
Personnel	1092	1095	0.3

CPH presentation, Baader Helvea Swiss Equities Conference 2021

Net sales

600

500

400

300

200

100

0

2016 2017 2018 2019 H1 20

in CHF million

EBITDA
90				24%
75				20%
60				16%
45				12%
30				8%
15				4%
0				0%
2016	2017	2018	2019	H1 20
in CHF million				% of net sales
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1st Half of 2020 Divisional results

	CPH	Group			Chemistry		Paper		Packaging
in CHF million	H1 2019		H1 2020		H1 2019	H1 2020		H1 2019	H1 2020		H1 2019	H1 2020
Net sales	267.5		231.8	39.7	36.2		146.9	108.9		80.8	86.7
EBITDA	47.8		33.5	5.6	5.0	29.0	12.5	13.3	16.1
EBITDA margin in %	17.9		14.5	14.2	13.7	19.7	 11.5		16.4	18.6
EBIT	32.0		17.8	3.1	2.5	19.0	2.3	10.1	13.1
EBIT margin in %	12.0		7.7	7.8	 7.0	12.9	2.1		12.4	 15.0
Personnel	1092		1095	306	283	369	364	411	442

• Good value compared to industry development  Best in European comparison
   Record margin for the division

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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Chemistry Business developments

Net sales

90

75

60

45

30

15

0

2016 2017 2018 2019 H1 20 in CHF million

Net sales 2019 by region

1% Switzerland

21% Rest of Europe

49% The Americas

26% Asia

3% Rest of the world

CPH presentation, Baader Helvea Swiss Equities Conference 2021

EBITDA
12				24%
10				20%
8				16%
6				12%
4				8%
2				4%
0				0%
2016	2017	2018	2019	H1 20
in CHF million				% of net sales

1st half of 2020

• Good start, followed by slowdown due to the corona crisis
• Order intake in Medox segment at record level
• Energy industry's demand is collapsing
• Investments in industrial gas plants have been postponed

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Paper Business developments

Net sales

360
300
240
180
120
60
0
2016	2017	2018	2019	H1 20

in CHF million

Net sales 2019 by region

22% Switzerland

74% Rest of Europe

1% The Americas

3% Asia

CPH presentation, Baader Helvea Swiss Equities Conference 2021

EBITDA
60				24%
50				20%
40				16%
30				12%
20				8%
10				4%
0				0%
2016	2017	2018	2019	H1 20
in CHF million				% of net sales

1st half of 2020

• Q1: Demand for paper already down by 10%
• Q2: Corona crisis causes demand for paper to fall by 40%
• Overcapacities force stoppages in production lasting for several days
• Prices for waste paper rose when the corona crisis started as collection activity was limited

13

Packaging Business developments

Net sales

180
150
120
90
60
30
0
2016	2017	2018	2019	H1 20

in CHF million

Net sales 2019 by region

5% Switzerland

58% Rest of Europe

19% The Americas

16% Asia

2% Rest of the world

CPH presentation, Baader Helvea Swiss Equities Conference 2021

EBITDA
24				24%
20				20%
16				16%
12				12%
8				8%
4				4%
0				0%
2016	2017	2018	2019	H1 20
in CHF million				% of net sales

1st half of 2020

• Demand for medication sharply increased during the corona crisis
• Order intake on record level
• Capacity balancing within the production facilities secured delivery capability
• Expansion of capacities in Brazil by means of new coating plant

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Outlook 2020 Strong impact of the corona crisis

Chemistry

• Speed and extent of recovery from corona crisis crucial for investment demand
• Rigorous cost control
• Sales will decrease compared to previous year
• EBIT margin planned to be within the scope of previous year

Paper

• Demand for magazine and newsprint paper expected to slightly recover in H2
• Massive overcapacities put pressure on paper prices
• Market consolidation becomes inevitable
• Sales will be below 2019 figures
• EBIT will be negative

Packaging

• Demand is expected to return to normal once the

coronaCHFcrisis153.2subsidesMio.

CHF 23.7 Mio.

◼ Further expansion of the

416

high-barrier segment

• Construction of a coating
  3

plant planned in Brazil

Nummer 3 weltweit bei beschichteten ◼BarrierefolienSignificantfür increasepha m zeutinsche

revenueAnweanddungenhigher EBIT planned

The CPH Group

Sales and operating result will decline significantly in 2020. The net result is expected to be around CHF 40 Mio. due to non-recurring income of CHF 26 Mio.

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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The CPH Group Focused on sustainability

Products
		Chemistry		Paper		Packaging
Raw materials	Aluminium silicate naturally extracted	Waste paper and wood are of organic	Polyvinylchloride is manufactured from
	or synthetically manufactured	origin	oil and salt
			Recyclable and
Cycle	Regenerable	Recyclable
biodegradable
	▪ Zvornik and Donghai sites now	▪ 144 kg of CO2 per ton of paper	▪	Müllheim site ISO 50001 energy-
		ISO 14001 eco-certificated		(616 kg is CEPI industry average)		certificated and switched 100% to
	▪	Intermediate products sourced	▪	75% of recovered paper used is		eco-power
		directly in Bosnia/Herzegovina and		sourced from Switzerland	▪	99% utilization rate for PVC
Results		China to cut transports	▪	85% of wood used is sourced from	▪	PVC waste used to make cores
▪	Coal replaced with gas at the		Switzerland, 70% from certificated		onto which the films are rolled
		Donghai (China) site		forestry operations
	▪ Dust emissions reduced at the US	▪	ISO 14001 eco-certificated
		and Chinese plants thanks to new	▪	Steam procured from Renergia
		filter facilities
		▪	Own biomass plant
	▪ Former waste disposal site in
	▪ Own hydroelectric power stations
		Meilen to be cleaned up in 2020
		▪ 1.1.2021: climate neutral paper sale
	▪ Investment in land for water
		treatment plant in Donghai (China)
CPH presentation, Baader Helvea Swiss Equities Conference 2021

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CPH Share An attractive investment

• Leading competitive positions in three industrial sectors with three distinct brands
• Cost leader in the predatory newsprint and magazine paper market and Switzerland's biggest recovered paper recycler
• Expansion of Chemistry and Packaging divisions reducing dependence on Paper
• Expanding (Chemistry and Packaging) production capacities outside Switzerland to reduce currency risks
• Investing in growth markets
• Sound equity base
• Stable anchor shareholders with long-term commitment

• Solid dividend levels (around 2-3%) with further share price rise potential

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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Questions

Thank you for your attention

CPH presentation, Baader Helvea Swiss Equities Conference 2021

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