Q3 2021 Results
LANXESS Group
Successfully managing cost inflation
André Simon | ||
Investor Relations | Head of Investor Relations | |
P: +49 | 221-8885-3494 | |
Kennedyplatz 1 | F: +49 | 221-8885-4944 |
50569 Cologne | ||
Germany
Q3 2020 | Q3 2021 | Comments | ||
Sales | €1,461 m | €1,951 m | +34% | ↑ Significant sales rise due to price increases and higher volumes |
EBITDA pre | €193 m | €278 m | +44% | EBITDA pre significantly above previous year level driven by successful |
↑ price pass-on and ongoing volume growth | ||||
Margin | 13.2% | 14.2% | +1 pp. | Margin above previous year level; soaring energy and logistic costs |
↑ prevent stronger development | ||||
EPS pre | €0.66 | €1.41 | >100% | Strong earnings due to high demand but held back by higher energy and |
↑ logistic costs | ||||
Operating cash flow | €167 m | €105 m | -€62 m | Operating cash flow impacted by significant increase in inventories |
↓ due to volume rise and inflated raw material prices | ||||
Net financial debt* | Dec 2020 | Sep 2021 | >100% | Increase in net financial debt driven by payment of purchase price for |
€1,012 m | €2,243 m | ↑ Emerald Kalama Chemical | ||
Capex | €102 m | €109 m | +7% | |
Price | Volume | Currency | Portfolio |
Sales + 34% + 19% | +10% | 0% | + 5% |
* Including cash, cash equivalents, short term money market investments
Advanced Intermediates*
Strong pricing and continuous increase in volumes -
Higher raw material prices successfully passed-on
- Sales boost driven by significantly higher prices as a consequence of increased raw material costs and improved volumes in both BUs
- AI is most energy-intensive segment at LXS. Therefore, EBITDA pre and especially margin are impacted by soaring energy costs
- EBITDA pre development supported by raw-material price pass- through and higher volumes, while increased logistic costs additionally burden
Sales | + 29% | Q3 2020 | Q3 2021 | ||||
Price | Volume | Currency Portfolio | EBITDA pre | €71 m | €84 m | ||
+ 23% | + 6% | 0% 0% | margin | 17.1% | 15.8% | ||
Specialty Additives*
Best quarterly EBITDA in history -
Strong volume and price recovery in all business units
- Sales increase driven by improved prices and rising volumes across all BUs
- Demand driven by strong development especially in construction, transportation and industrial end markets, aviation and oil & gas recovering
- Significant EBITDA pre and margin improvement despite increased logistic costs and constraints
Sales | + 30% | Q3 2020 | Q3 2021 | ||
Price | Volume Currency Portfolio | EBITDA pre | €59 m | €102 m | |
+ 15% + 13% - 1% + 3% | margin | 12.7% | 16.9% | ||
Consumer Protection | § | Engineering Materials |
Contribution from BU F&F partly offset by production | Another strong quarter - | |
issues in BU SGO | Successful pricing |
- Sales increase mainly driven by BU F&F as expected
- Impact in BU Saltigo by unplanned shutdown and high energy costs nearly offsets EBITDA contribution from new BU F&F; EBITDA margin burdened accordingly
- Continuously good performance in BU MPP and BU LPT
Sales | + 27% | Q3 2020 | Q3 2021 | ||||
Price | Volume | Currency Portfolio | EBITDA pre | €59 m | €60 m | ||
+ 3% | + 1% | + 1% + 22% | margin | 21.2% | 17.0% | ||
- Sales increase based on continued strong demand from auto industry and raw material price pass-through
- Volumes and prices significantly increased in both BUs
- EBITDA pre and margin rise on improved volumes and higher prices, despite higher energy and logistic costs
Sales | + 53% | Q3 2020 | Q3 2021 | ||||
Price | Volume | Currency | Portfolio | EBITDA pre | €33 m | €62 m | |
+ 36% | + 17% | 0% | 0% | margin | 11.6% | 14.2% | |
* New reporting structure as of Q1 2021: Business Line "Antioxidants and Accelerators" (AXX) shift from BU AII to BU RCH (segment "Specialty Additives"); 2020 figures restated
LANXESS guidance specified
Current view on economy
▪ Strong demand in most end industries, improvements in aviation and oil & gas expected
LANXESS outlook 2021
▪ FY 2021 EBITDA pre expected €1,000 - 1,050 m, however, at lower end of corridor due to
- Logistic constrains and higher freight costs
- Reduced waste management capacity (incident at Currenta in Leverkusen)
- Further energy costs inflation
- Shutdowns in China due to electricity rationing
LANXESS stays on course for a more sustainable environment
Housekeeping items 2021
Capex 2021: ~€450-500m (incl. EKC)
Operational D&A 2021: ~€470 m (incl. EKC)
Reconciliation 2021: ~€150-160m incl. remnant costs and re-occurring expenses
Underlying tax rate: ~28%
Exceptionals 2021: ~€120-150m based on current initiatives (including ~€15m OTCs* Emerald Kalama Chemical)
FX sensitivity: One cent change of USD/EUR resulting in ~€7 m EBITDA pre impact before hedging
* OTCs = One Time Costs
Safe harbor statement
The information included in this presentation is being provided for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, securities of LANXESS AG. No public market exists for the securities of LANXESS AG in the United States.
Sustainalytics ESG risk rating update
- LANXESS now part of Top 25% in Chemicals industry
- Improvements in particular in area of water management and GHG emission scope and reporting
Green cyclohexane supplied to LANXESS
- bp and LANXESS join forces on renewable raw materials for engineering materials production
- Sustainably produced cyclohexane supplied to LANXESS production site in Antwerp starting in the fourth quarter of 2021
- High-performancematerials are the solution for many sustainable products, for example in various e-mobility applications
This presentation contains certain forward-looking statements, including assumptions, opinions, expectations and views of the company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or performance of LANXESS AG to differ materially from the estimations expressed or implied herein. LANXESS AG does not guarantee that the assumptions underlying such forward-looking statements are free from errors, nor does it accept any responsibility for the future accuracy of the opinions expressed in this presentation or the actual occurrence of the forecast developments. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, any information, estimates, targets and opinions contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and accordingly, no representative of LANXESS AG or any of its affiliated companies or any of such person's officers, directors or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
Financial Overview Q3 2021
in € million | LANXESS | ||
Q3/2020 | |||
Sales | 1,461 | ||
Price* | |||
Volume* | |||
Currency* | |||
Portfolio* | |||
EBIT | 53 | ||
Deprec. & amortizat. | 117 | ||
EBITDA | 170 | ||
exceptionals in EBITDA | 23 | ||
EBITDA pre excep. | 193 | ||
normalized D&A | 117 | ||
EBIT pre excep. | 76 | ||
exceptionals in EBIT | 23 | ||
Capex | 102 | ||
Net financial debt | 1,012 |
* approximate numbers
Q3/2021
1,951
104
133
237
41
278
132
146
42
109
2,243
Advanced Intermed. | ||||||||
Chg. in % | Q3/2020 | Q3/2021 | Chg. in % | |||||
34% | 414 | 533 | 29% | |||||
18.7% | 22.7% | |||||||
9.9% | 6.3% | |||||||
-0.2% | -0.3% | |||||||
5.1% | 0.0% | |||||||
96% | 43 | 53 | 23% | |||||
14% | 28 | 31 | 11% | |||||
39% | 71 | 84 | 18% | |||||
78% | 0 | 0 | 0% | |||||
44% | 71 | 84 | 18% | |||||
13% | 28 | 31 | 11% | |||||
92% | 43 | 53 | 23% | |||||
83% | 0 | 0 | 0% | |||||
7% | 28 | 31 | 11% | |||||
>100% |
Specialty Additives
Q3/2020 Q3/2021
466 605
954
4544
5498
54
59 102
4544
- 58
- 4
2930
Consumer Protection | |||||
Chg. in % | Q3/2020 | Q3/2021 | |||
30% | 278 | 353 | |||
14.8% | |||||
13.1% | |||||
-0.9% | |||||
2.8% | |||||
>100% | 40 | 27 | |||
-2% | 19 | 27 | |||
81% | 59 | 54 | |||
-20% | 0 | 6 | |||
73% | 59 | 60 | |||
-2% | 19 | 27 | |||
>100% | 40 | 33 | |||
-20% | 0 | 6 | |||
3% | 15 | 22 |
Engineering Materials | ||||
Chg. in % | Q3/2020 | Q3/2021 | ||
27% | 285 | 436 | ||
3.3% | ||||
1.1% | ||||
0.7% | ||||
21.9% | ||||
-33% | 15 | 44 | ||
42% | 17 | 18 | ||
-8% | 32 | 62 | ||
>100% | 1 | 0 | ||
2% | 33 | 62 | ||
42% | 17 | 18 | ||
-18% | 16 | 44 | ||
>100% | 1 | 0 | ||
47% | 19 | 12 |
Others/ Cons. | ||||||
Chg. in % | Q3/2020 | Q3/2021 | Chg. in % | |||
53% | 18 | 24 | 33% | |||
35.4% | 0.0% | |||||
17.2% | 33.3% | |||||
0.4% | 0.0% | |||||
0.0% | 0.0% | |||||
>100% | -54 | -74 | -37% | |||
6% | 8 | 13 | 63% | |||
94% | -46 | -61 | -33% | |||
-100% | 17 | 31 | 82% | |||
88% | -29 | -30 | -3% | |||
6% | 8 | 12 | 50% | |||
>100% | -37 | -42 | -14% | |||
-100% | 17 | 32 | 88% | |||
-37% | 11 | 14 | 27% |
Cash Flow Statement Q3 2021
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Lanxess AG published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 06:11:03 UTC.