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30.08.2023

Autoneum: Half-Year Results 2023

Autoneum's consolidated revenue increased by 24.1% from CHF 888.7 million to CHF 1 102.6 million in the first half of 2023. The Group grew significantly both organically, thanks to a market recovery in Europe and North America, and inorganically, through the acquisition of the traditional German company Borgers. All business units improved their profitability compared to the prior-year period. EBIT adjusted for special effects increased by CHF 33.0 million to CHF 45.0 million and the EBIT margin rose from 1.4% to 4.1% compared to the prior-year period. EBIT rose by CHF 78.5 million to CHF 84.9 million in the same period, with an increase in EBIT margin of 7.0 percentage points to 7.7%. Autoneum achieved a solid net result of CHF 57.8 million. Business Group North America nearly reached break-even point before special effects. As planned, the Borgers units, consolidated for the first time in the second quarter, made a positive contribution to the overall result from day one.

Autoneum's consolidated revenue increased by 24.1% from CHF 888.7 million to CHF 1 102.6 million in the first half of 2023. The Group grew significantly both organically, thanks to a market recovery in Europe and North America, and inorganically, through the acquisition of the traditional German company Borgers. All business units improved their profitability compared to the prior-year period. EBIT adjusted for special effects increased by CHF 33.0 million to CHF 45.0 million and the EBIT margin rose from 1.4% to 4.1% compared to the prior-year period. EBIT rose by CHF 78.5 million to CHF 84.9 million in the same period, with an increase in EBIT margin of 7.0 percentage points to 7.7%. Autoneum achieved a solid net result of CHF 57.8 million. Business Group North America nearly reached break-even point before special effects. As planned, the Borgers units, consolidated for the first time in the second quarter, made a positive contribution to the overall result from day one.

Economic conditions in the automotive supply industry improved in the first half of 2023 compared to the prior-year period. There was a slight easing of supply chains and a rise in production volumes among vehicle manufacturers already in the first quarter of 2023. This was especially true in markets that had previously been heavily impacted by supply chain bottlenecks.

Global automobile production climbed by 11.8%* compared with the prior-year period, although consumer demand was somewhat dampened by high vehicle prices in some markets. In this improved market environment and supported by the acquisition of the automotive business from Borgers, a long-standing German company, as of April 1, 2023, Autoneum increased its revenue and net result substantially in the first six months compared with the same period of the previous year.

  • Positive revenue development supported by inorganic growth
  • Significant improvement of operational profitability and solid net profit
  • Equity ratio influenced by the acquisition of Borgers Automotive
  • Creation of a capital band
  • Business Groups
  • Integration of Borgers automotive business
  • Working on behalf of electromobility with sustainable noise absorption in underbody
  • shields
  • Change to the Group Executive Board
  • SBTi recognizes Autoneum’s science-based targets

Outlook unchanged
According to the current S&P market forecasts, it is expected that global automobile production will climb by 5.7%* in 2023 compared with 2022. Autoneum anticipates that production volumes in the various regions will develop in line with the forecasts. Customer negotiations are ongoing and Autoneum expects that the increase in costs for raw materials, energy, transportation and staff will be completely offset in the second half of the year. Based on the forecast market development and the renegotiated customer agreements, Autoneum confirms the outlook that it published in March 2023. The Company expects total revenue of CHF 2.4 to 2.5 billion at unchanged exchange rates for the financial year 2023, an EBIT margin of 3.5% to 4.5% excluding one-time effects and a free cash flow in the higher double-digit millions, excluding acquisition-related net cash outflows.

For more information, see attached document.

*Source: S&P market forecast – August 15, 2023

Source:

Autoneum Management AG

23.03.2023

SGL Carbon reports for 2022 best operating result in more than ten years

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon

  • Sales increase of 12.8% to €1,135.9 million
  • EBITDApre improves by 23.4% to €172.8 million
  • Net financial debt reduced from €206.3 million to €170.8 million
  • Fiscal 2023 expected to be investment and stabilization year

SGL Carbon was again able to improve sales and earnings in fiscal year 2022 following 2021. All four business units contributed to this success.
Sales in fiscal 2022 increased by 12.8% year-on-year to €1,135.9 million (previous year: €1,007.0 million). The rise in sales was mainly due to both volume effects and the successful implementation of pricing initiatives to compensate higher raw material, energy and transport prices. At 23.4%, adjusted EBITDA (EBITDApre) improved at a higher rate than sales and amounted to €172.8 million in fiscal 2022 (previous year: €140.0 million). Increased sales and the associated higher capacity utilization also contributed to the improvement in earnings, as well as focusing on market segments with higher margin potential.
 
Earnings development of SGL Carbon
The increase in EBITDApre by €32.8 million to €172.8 million was mainly driven by the Graphite Solutions business unit (+€30.6 million). The Composite Solutions (+€7.9 million) and Process Technology (+€5.2 million) business units also contributed to the improvement in profitability. Although the Carbon Fibers business unit was able to offset the loss of a lucrative supply contract with an automotive customer in terms of sales with new orders from the wind energy sector, but these sales showed a significantly lower margin level. Accordingly, EBITDApre of this business unit decreased by €11.2 million to €43.2 million (previous year: €54.5 million).

Taking into account net one-off effects and non-recurring items of €8.9 million (previous year: €30.7 million) and depreciation and amortization of €60.8 million (previous year: €60.3 million), reported EBIT amounted to €120.9 million (2021: €110.4 million). This corresponds to an increase of 9.5%.
As a result of the pleasing business performance, the successes of the transformation and non-operating one-off effects and non-recurring items (€8.9 million), a positive Group’s net profit of €126.9 million (previous year: €75.4 million) was achieved in 2022. It should be noted that consolidated net income includes tax income of €31.3 million (previous year: minus €6.2 million). This development is mainly due to valuation adjustments on deferred tax assets amounting to €41.8 million, based on the good business development combined with positive earnings prospects in the USA. Current tax expenses amounted to €11.4 million in 2022 (previous year: €11.9 million).
 
Net financial debt and equity
In fiscal 2022, net financial debt was reduced significantly by 17.2% to €170.8 million compared with the end of 2021 (€206.3 million). The main reason for the decrease is the repayment of financial liabilities in the amount of €29.0 million. Free cash flow decreased from €111.5 million to €67.8 million in 2022. In this context, it should be taken into account that in the previous year, free cash flow included cash inflows of €30.6 million from the sale of land not required for operations.
After 2021, the equity ratio increased again to 38.5% at the end of 2022 (previous year: 27.0% I 2020: 17.5%). Due to the significantly improved earnings situation, the return on capital employed (ROCE) also rose from 8.0% in the previous year to 11.3% in 2022.
 
Development of the business units
As the largest business unit with a share of Group sales of around 45%, Graphite Solutions contributed €512.2 million to Group sales in 2022 (previous year: €443.6 million). The 15.5% increase in sales is based in particular on the positive development of the important market segments Semiconductor & LED and Industrial Applications. Compared to the previous year, sales to customers in the semiconductor & LED industry increased by 49.6%, driven in particular by increasing demand of materials and components for the production of silicon carbide-based high-performance semiconductors. Combined with the increase in sales, GS EBITDApre improved by 34.8% to €118.5 million (previous year: €87.9 million). Accordingly, the EBITDApre margin increased from 19.8% to 23.1%. Volume effects due to higher sales as well as margin effects from the product and customer mix had a positive impact.  Especially the higher sales with customers from the semiconductor industry should be taken into account.

In fiscal 2022, the Process Technology (PT) business unit benefited from the good order situation in recent months and increased its sales by 21.9% to €106.3 million. The main clients of the PT business unit are customers from the chemical industry. The positive development of PT is also reflected in EBITDApre which rose from €4.7 million in the same period of the previous year to €9.9 million. Higher capacity utilization and the successful passing on of increased raw material costs led to an improvement in the EBITDApre margin from 5.4%  to 9.3% in 2022. Energy costs play only a minor role at PT.

In the reporting year, sales of the Carbon Fibers (CF) business unit increased by 3.0% to €347.2 million (previous year: €337.2 million). It should be noted that CF had to absorb the scheduled expiry of a supply contract with an automotive customer at the end of June 2022. These sales were offset by orders from the wind industry and Industrial Applications. However, EBITDApre in the CF division decreased by 20.7% year-on-year to €43.2 million (previous year: €54.5 million). This earnings development is mainly attributable to the expiry of the high-margin automotive contract. In addition, a special effect from energy derivatives in the amount of minus €9.2 million impacted CF earnings in the 1st quarter of 2022. However, the implemented energy price hedges enabled the business unit to maintain its production capability throughout the entire fiscal year, that the weakening of earnings was mitigated.
The Composite Solutions (CS) business unit confirmed its upward trend in fiscal 2022 with a 25.0% increase in sales to €153.1 million (previous year: €122.5 million). The most important market segment for the CS business unit is the automotive industry. In line with the highly positive business performance, EBITDApre of CS increased by 65.3% to €20.0 million (previous year: €12.1 million). This figure also includes non-recurring positive effects of €3.7 million from compensation payments received from automotive customers for premature project terminations.

The non-operating Corporate segment contributed €17.1 million to Group sales (previous year: €16.5 million). In line with continued strict cost management as part of the transformation, EBITDApre improved slightly to minus €18.8 million (previous year: minus €19.2 million).

Outlook
"If we summarize our expectations for the 2023 financial year, it can be summed up under the guiding principle: -invest and stabilize," CFO Thomas Dippold comments on the forecast for 2023.
For the fiscal year 2023 we continue to expect solid demand for our materials and products. In particular, we expect that the demand for special graphite products for high-temperature processes, e.g. in the semiconductor, solar and LED industries, will continue to increase. On the other hand, the first-time full-year effect from the expiry of a supply contract with an automotive customer in the carbon fiber segment and the sale of our business in Gardena (USA) will burden sales development.

"The increasing demand for high-performance semiconductors for electromobility or renewable forms of energy will also boost the demand of components made of graphite for the production of these semiconductors. To benefit from the related opportunities, we will expand our production capacities in this segment and invest a double-digit million amount in 2023 . Based on existing supply relationships, we will implement this investments partly together with our customers," explains CEO Dr. Torsten Derr.
On the cost side, we expect energy and raw material prices to remain at a high level in 2023, along with significant wage increases. Our forecast implies that higher factor costs can be partially passed on to customers through price initiatives.
Based on the assumptions described, we expect Group sales to be at prior-year level and EBITDApre to be between €160 million and €180 million in the financial year 2023.
In the medium term (until 2027), we anticipate a further improvement in our EBITDApre margin between 18% and 19%.

Source:

SGL CARBON SE

24.02.2022

Renewable Carbon as a Guiding Principle for Sustainable Carbon Cycles

  • Renewable Carbon Initiative (RCI) published a strategy paper on the defossilisation of the chemical and material industry with eleven policy recommendations

The Renewable Carbon Initiative, an interest group of more than 30 companies from the wide field of the chemical and material value chains, was founded in 2020 to collaboratively enable the chemical and material industries to tackle the challenges in meeting the climate goals set by the European Union and the sustainability expectations held by societies around the globe.

RCI addresses the core of the climate problem: 72% of anthropogenic climate change is caused directly by extracted fossil carbon from the ground. In order to rapidly mitigate climate change and achieve our global ambition for greenhouse gas emission reductions, the inflow of further fossil carbon from the ground into our system must be reduced as quickly as possible and in large scale.

  • Renewable Carbon Initiative (RCI) published a strategy paper on the defossilisation of the chemical and material industry with eleven policy recommendations

The Renewable Carbon Initiative, an interest group of more than 30 companies from the wide field of the chemical and material value chains, was founded in 2020 to collaboratively enable the chemical and material industries to tackle the challenges in meeting the climate goals set by the European Union and the sustainability expectations held by societies around the globe.

RCI addresses the core of the climate problem: 72% of anthropogenic climate change is caused directly by extracted fossil carbon from the ground. In order to rapidly mitigate climate change and achieve our global ambition for greenhouse gas emission reductions, the inflow of further fossil carbon from the ground into our system must be reduced as quickly as possible and in large scale.

In the energy and transport sector, this means a vigorous and fast expansion of renewable energies, hydrogen and electromobility, the so-called decarbonisation of these sectors. The EU has already started pushing an ambitious agenda in this space and will continue to do so, for instance with the recently released ‘Fit for 55’ package.

However, these policies have so far largely ignored other industries that extract and use fossil carbon. The chemical and material industries have a high demand for carbon and are essentially only possible with carbon-based feedstocks, as most of their products cannot do without carbon. Unlike energy, these sectors cannot be “decarbonised”, as molecules will always need carbon. The equivalent to decarbonisation via renewable energy in the energy sector is the transition to renewable carbon in the chemical and derived materials industries. Both strategies avoid bringing additional fossil carbon from the ground into the cycle and can be summarised under the term “defossilisation”.

To decouple chemistry from fossil carbon, the key question is which non-fossil carbon sources can be used in the future. Rapid developments in biosciences and chemistry have unlocked novel, renewable and increasingly affordable sources of carbon, which provide us with alternative solutions for a more sustainable chemicals and materials sector. These alternative sources are: biomass, utilisation of CO2 and recycling. They are combined under the term “renewable carbon”. When used as a guiding principle, renewable carbon provides a clear goal to work towards with sufficient room to manoeuvre for the whole sector. It enables the industry to think out of the box of established boundaries and stop the influx of additional fossil carbon from the ground.

The systematic change to renewable carbon will not only require significant efforts from industry, but must be supported by policy measures, technology developments and major investments. In order to implement a rapid and high-volume transition away from fossil carbon, and to demonstrate its impact, a supportive policy framework is essential. The emphasis should be put on sourcing carbon responsibly and in a manner that does not adversely impact the wider planetary boundaries nor undermines societal foundations. An overarching carbon management strategy is required that also takes specific regional and application-related features into account, to identify the most sustainable carbon source from the renewable carbon family. This will allow for a proper organisation of the complex transition from today’s fossil carbon from the ground to renewable energy and to renewable carbon across all industrial sectors.

RCI has developed eleven concrete policy recommendations on renewable carbon, carbon management, support for the transformation of the existing chemical infrastructure and the transformation of biofuel plants into chemical suppliers. The policy paper “Renewable Carbon as a Guiding Principle for Sustainable Carbon Cycles” is freely available for download in both a short version and a long version.


Link for Download: https://renewable-carbon-initiative.com/media/library/

Source:

Renewable Carbon Initiative (RCI)

04.11.2021

Autoneum presents medium-term financial targets

Autoneum presented an insight into current market trends and the Company's strategic focus in the areas of electromobility and sustainability, as well as an outlook on its medium-term financial targets at the media and financial analysts brunch.

In addition to current market expectations and trends in the automotive industry, the focus will be on Autoneum’s activities and growth potential in the areas of e-mobility and sustainability. Matthias Holzammer, CEO, and other experts of the Company will present Autoneum's latest developments with regard to New Mobility and sustainable product innovations as well as their strategic classification. CFO Bernhard Wiehl will also present Autoneum's new medium-term financial targets.

Autoneum presented an insight into current market trends and the Company's strategic focus in the areas of electromobility and sustainability, as well as an outlook on its medium-term financial targets at the media and financial analysts brunch.

In addition to current market expectations and trends in the automotive industry, the focus will be on Autoneum’s activities and growth potential in the areas of e-mobility and sustainability. Matthias Holzammer, CEO, and other experts of the Company will present Autoneum's latest developments with regard to New Mobility and sustainable product innovations as well as their strategic classification. CFO Bernhard Wiehl will also present Autoneum's new medium-term financial targets.

Based on the further expansion of the portfolio with sustainable products and new applications for e-vehicles as well as the increase in market share with existing and new customers, particularly in Asia, the Company expects a profitable revenue growth at market level in the medium term. Based on the expected revenue development, further progress in the turnaround of North America as well as the consistently practiced operational excellence in all business areas, Autoneum targets an EBITDA margin of 13% in the medium term. Accordingly, a solid free cash flow in the amount of 6% of revenue and a further increase in the equity ratio to over 35% are targeted. The Company still intends to pay a dividend to shareholders of at least 30% of the profit attributable to Autoneum shareholders.

More information:
Autoneum Automotive Sustainability
Source:

Autoneum Management AG

SGL Carbon receives €42.9 million funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries (c) SGL Carbon
SGL Carbon's graphite anode material for lithium-ion batteries
10.03.2021

Funding for SGL Carbon

  • SGL Carbon receives €42.9 million funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries
  • Funding in the amount of €42.9 million to 2028 for SGL Carbon GmbH from the German Federal Government and the Free State of Bavaria
  • SGL Carbon project aims at European production of innovative anode materials as a key value-added step in electromobility

SGL Carbon, a leading supplier of graphite and carbon products, today received a funding notification for the development and industrialization of innovative anode materials made of synthetic graphite for use in lithium-ion batteries. The funding program is part of the second European IPCEI (Important Project of Common European Interest) / EUBatIn (European Battery Innovation) program, which aims at a competitive European value chain for lithium-ion batteries based on innovative and sustainable technologies.

  • SGL Carbon receives €42.9 million funding under IPCEI for graphite anode materials (GAM) in lithium-ion batteries
  • Funding in the amount of €42.9 million to 2028 for SGL Carbon GmbH from the German Federal Government and the Free State of Bavaria
  • SGL Carbon project aims at European production of innovative anode materials as a key value-added step in electromobility

SGL Carbon, a leading supplier of graphite and carbon products, today received a funding notification for the development and industrialization of innovative anode materials made of synthetic graphite for use in lithium-ion batteries. The funding program is part of the second European IPCEI (Important Project of Common European Interest) / EUBatIn (European Battery Innovation) program, which aims at a competitive European value chain for lithium-ion batteries based on innovative and sustainable technologies.

SGL Carbon is one of a few manufacturers of synthetic graphite for anode materials in Europe. The company’s contribution to the IPCEI project ranges from the development of anode materials with increased performance, energy-efficient and sustainable manufacturing processes to novel recycling concepts. It also includes scaling them up to pilot scale and finally mass production. Over the project lifetime until 2028, the goal is to also establish a closed cycle for this cell component. SGL Carbon has already created a solid foundation for the project through previous investments such as the battery application laboratory at its Meitingen site. The German federal government and the Free State of Bavaria provide funding for the SGL Carbon project totaling €42.9 million, which can be drawn down over the duration of the project.

"With our development and industrialization project for new innovative anode materials and processes, we make an essential contribution to establishing a sustainable and competitive European value chain and circular economy for lithium-ion batteries. In turn, this enables us to support our customers with tailored materials and services in their innovation and industrialization process. We are very pleased about the support from the federal and state governments in this important task and would like to express our sincere thanks," explains Burkhard Straube, President Business Unit Graphite Solutions at SGL Carbon.

"In order to produce competitive, high-performance and particularly environmentally friendly batteries in the future, we need innovations. The companies participating in the IPCEIs base their battery materials, cells and systems pursued in the projects on their own research - in cooperation with their partners. This way, we ensure that the battery ecosystem being created in Germany and Europe will also place us among the world leaders in terms of technology," says Elisabeth Winkelmeier-Becker, Parliamentary State Secretary at the German Federal Ministry of Economics and Technology.

"The funding ensures value creation in a central high-tech segment with great future potential, which is ideally suited to Bavaria as a business location. In the course of the project, 25 jobs will be secured or newly created in Meitingen. SGL Carbon is an important company for the entire region and a major employer," says Hubert Aiwanger, Bavarian Minister of Economic Affairs and Bavarian Deputy Minister-President.
 
Synthetic graphite is utilized as anode material for lithium-ion batteries in many fast-growing applications such as electric vehicles, stationary energy storage systems and mobile consumer devices. Compared to natural graphite, synthetic graphite has a better performance, higher quality consistency and easier production scalability, as well as a better profile in terms of environmental footprint and safety in manufacturing. In the project described, SGL Carbon builds on its core competencies in the development and mass production of synthetic graphite.