Clear course in challenging times€¦ · CAS –Stable sales and EBITDA at previous year‘s level...
Transcript of Clear course in challenging times€¦ · CAS –Stable sales and EBITDA at previous year‘s level...
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Clear course in challenging timesAnnual General MeetingJuly 30, 2020
Covid-19: Covestro sticks togetherManaging the crisis as a team with prudence and optimism
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THANK YOU
to our employees!
July 30, 2020 │ Annual General Meeting
Covid-19: Covestro has maintained productionHealth of employees, business partners and customers comes first
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Reliable supply tocustomers
Protective measures for employees
Maintaining supplychains
July 30, 2020 │ Annual General Meeting
Covid-19: Covestro shows global commitment Various aid campaigns all over the world to manage the coronavirus pandemic
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Programs to increase efficiency and decrease costs
Solid company financing
Reduction of investments to €700m
Adjustment of dividend by 50%
Solidarity measures to decrease labor costs
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Navigating safely through the crisisActive crisis management ensures ability to act
Covestro is well-positioned to master the
crisis.
July 30, 2020 │ Annual General Meeting
Q2 2020 affected by COVID-19Proactive action ensures resilience amidst global corona crisis
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Q2 2019 Q2 2020
-22,2%
1.1 %
-22.7%
Q2 2019 Q2 2020
-55
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Q2 2019 Q2 2020
3,2002,156
Q2 2019 Q2 2020
459 125
Core volume growth FOCF(in € million)
Sales(in € million)
EBITDA(in € million)
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2019: All targets achieved in challenging environmentDemand for innovative and sustainable products remains intact
2.0%
Core volume growth
€12.4bn
Sales
€473m
FOCF
8.4%
ROCE
EBITDA
€1.6bn
2019: All financial targets have been achieved!
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€300 to 700m
Low-to-mid-single-digit percentage range increase €1,500 to 2,000m
8 % to 13 %
July 30, 2020 │ Annual General Meeting
MANAGING THE CORONA CRISIS ON THE BASIS OF SOLID 2019 FINANCIALS
1,763648
23.9%
11.2%
FY 2018 FY 2019
7,3625,779
0.8% 2.3%
FY 2018 FY 2019
PUR – Significant increase in volume growthFY 2019 – Results for Polyurethanes
Sales (in € million)
Sales and core volume growth*
Volume growth (in %)
EBITDA margin (in %)EBITDA (in € million)
EBITDA and margin
8 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core businessJuly 30, 2020 │ Annual General Meeting
1,036536
25.6%15.4%
FY 2018 FY 2019
4,051 3,473
3.0% 2.7%
FY 2018 FY 2019
PCS – Continuous core volume growthFY 2019 – Results for Polycarbonates
9 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core business
Sales and core volume growth* EBITDA and margin
July 30, 2020 │ Annual General Meeting
Sales (in € million)
Volume growth (in %)
EBITDA margin (in %)EBITDA (in € million)
464 469
19.7% 19.8%
FY 2018 FY 2019
2,361 2,369
2.3% -1.0%
FY 2018 FY 2019
CAS – Stable sales and EBITDA at previous year‘s levelFY 2019 – Results for Coatings, Adhesives, Specialties
10 * Reference figures from 2018 on were recalculated as of March 31, 2019, based on the definition of core business
Sales and core volume growth* EBITDA and margin
July 30, 2020 │ Annual General Meeting
Sales (in € million)
Volume growth (in %)
EBITDA margin (in %)EBITDA (in € million)
1,4451,965
348 46
442
575 51
520
989
Solid balance sheetDecember 31, 2019: Committed to a solid investment grade rating
Others
1,793
FOCFDec. 31,2018
Interest Dividend Dec. 31,2019
Changes in pensions provisions
IFRS 16Adjustments*
-473
2,954in € million
Net financial debt Pension provisions
11 * Reflecting increase in lease liabilities as of December 31, 2019, in the course of IFRS 16 adoption July 30, 2020 │ Annual General Meeting
€0.70 €1.35 €2.20 €2.40 €1.20
Payout ratio in %*
Distribution of 40% of profit to shareholders
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Historical development of dividend and payout ratio
2015 2016 2017 2018 2019
Dividend per share (€)
* In relation to net incomeJuly 30, 2020 │ Annual General Meeting
32% 34%22% 25%
40%
Efficiency ensures ability to actTargets for short-term measures raised in the course of corona crisis
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Structural measures:“Perspective“ efficiency program
Portfolio synergies maximized
Standard business streamlined
Efficiency increased
Central units reorganized
Differentiation fostered
Progress in 2019: €150mFocus in 2020: ~€130m
Short-term measures for additional savings
Original focus in 2020: ~€200mTargets raised: >€300m
Building maintenance
Procurement
Solidarity measures
SG&A costs
Savings of overall >€430m will be realized in 2020!!
July 30, 2020 │ Annual General Meeting
Precautionary measures to ensure solid financingSecuring sufficient liquidity in H1 2020
Syndicated credit facility
Working capital facility
Eurobonds
EIB-loan
€2.5bn €1.0bn
€500m €225m
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ü Standby backup liquidity reserveü Term of 5 yearsü Options to extend term
ü Continuous financing of ongoing business operations
ü Meanwhile partially repaid
ü Eurobonds issued by Covestroü Maturities of 5 and 10 yearsü More than 10 times
oversubscribed
ü Loan to strengthen research & development
ü Medium term fundingü Compliance with high ESG-
standards
PROGRESS IN STRATEGY IMPLEMENTATION ON OUR WAY TO CIRCULAR ECONOMY
We become pioneers in sustainability.
Covestro consistently pursues its strategyFocus on long-term goals
We optimize our production network.
We strengthen our innovative capacity.
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Climate change
Disturbed ecosystems
Scarce resources forgrowing world population
Global challenges call for fundamental
rethink of approaches
The economy and society must take new approaches
Enabling sustainablevalue creation
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Sustainable restartConsumption, production and value creation need to change
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Circular economy as a concept for a truly sustainable world
Circular economy asa guiding principle
Key to climate neutrality and resource protection
Great business opportunities
Plastics are the key
Leave one-off use
Take waste as a resource
Recover carbon
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Global guiding principle
July 30, 2020 │ Annual General Meeting
Strong new visionFull focus on circularity
Establish circularity throughout the company
Become a shaping force for circular economy
Achieving greenhouse gas neutrality
Our new vision:
We will be fully circular
Specifies our purposeto make the world a
brighter place
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Long-term programFocusing on four main areas
Long-termstrategic program
Focus on four promising areas
Step-by-step implementation
Develop concrete goals and KPIs
Renewable energy
Joint solutions
Innovative recycling
Alternative raw materials
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Exceptional year 2020Outlook for the rest of the year
Establishing circular economy as a guiding principle
Economic environment remains uncertain due to Corona
Focus on efficiency, cost awareness and securing liquidity
Guidance for the full year confirmed
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Consistent crisis management and active measures show effect
July 30, 2020 │ Annual General Meeting
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Thank you for your attention!
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