Good afternoon, ladies and gentlemen, and a very warm welcome from Vienna. It is my pleasure presenting to you the half year 2022 result of the Semperit Group today. They are, in fact, a great testimony of our operational resilience in difficult times. With me in the call is our CFO, Petra Preining, who will take you through the financials in a few minutes. Afterwards, both Petra and I are available for any question you might have. Let me start at slide three with the operational highlights of the first half of 2022. The performance of the industrial sector was definitively outstanding, both in terms of its operational excellence and growth across all segments. However, as expected after the end of the corona-induced special cycle in medical protective gloves, the negative effect of the decline in the medical sector had a stronger impact.
The results of the industrial sector for the first half year were well above the comparable period last year, as well as the same period of the pre-corona year, 2019, as we had good momentum in sales volumes and order book levels, and this against the backdrop of higher input prices and first signs of an economic downturn. In turn, the prices in the medical sector reverted towards the pre-corona level, with the previous massive inventory buildup throughout 2021 now reflected in a lower demand for the entire glove market. As the war continues in the Ukraine and the Russian authorities started to weaponize gas delivery to Europe, we had to prepare for contingency planning in our European sites, and will provide you with an update later in this call.
At the same time, prices for raw materials remain at an elevated level, and supply chain disruptions continue after the lockdowns in China during the second quarter. Overall, for the time being, we can say the situation is tight, but under control, thanks to our great procurement team. On a very positive note, I am delighted to report our new EUR 110 million organic growth investment into the world's first carbon neutral hose production facility in our Czech Republic factory in Odry. I will provide you with more details in a minute. At the same time, we inaugurated our new Semperseal U.S. plant in the second quarter and are very excited about these two new organic growth initiatives, which we set alongside ongoing inorganic growth efforts.
Over the page, let me first elaborate on the plant expansion of our hydraulic hose facility in Odry, as this will be a significant step up, both in terms of growth and market share for Semperflex. Production capacity will be increased to a total of 200 million meters of hose per year, which, from today's point of view, will further improve our position from currently number 3 to number 2 globally. As Semperflex is now in accelerated growth mode, we feel it is the right time to support future growth through this major investment, with CapEx being front-loaded between 2023 and 2027, but first operations starting already in early 2025. There is more to be said about this new investment, as we outline in slide five.
From a strategic point of view, we address the issue of supply chains, as we will be even closer to our European customers and hence can ensure faster delivery, while at the same time reducing carbon emissions and lowering transportation costs. Importantly, from an ESG perspective, the new hose production will be powered exclusively by renewable energy, while the overall water consumption at our site in Odry will be reduced by 30%. As this is the most modern hose production facility in the world, the high level of automation implies not only productivity gains, but also higher quality. In terms of workforce, it requires less full-time employees overall, but also less physical work. Hence, it will be gender-neutral. As a standalone operation, the EBITDA margin of the new production facility is planned to reach up to 40%.
With this, let me turn to the operational update and start with an overview of the industrial sector on slide seven. Both in terms of revenue growth and EBITDA improvement, the performance of the industrial sector was outstanding, and this on a continuing basis quarter after quarter. The comparison on this chart of pre-corona 2019 revenues and in the second quarter, revenues and EBITDA with our latest results in the first half of 2022 show significant improvements in top line growth and profitability. Revenues were up by 39% year-on-year and EBITDA by 64%, largely driven by high demand and price increase at Semperflex. Also supported by Sempertrans, given growing demand in the mining industry.
I am convinced it is also worth mentioning that as you can see, especially when comparing the development from quarter one to quarter two this year, the proactive price increases implemented in order to defend the margins are bearing fruits. On the other hand, having said that, we certainly see a further increase margin pressure in the second half of this year from high energy costs, but also raw materials and transport costs remaining at an elevated level. I will say more on our mitigating efforts on energy savings later on. Suffice to say here that further sales price increase are most likely to adversely impact sales volume in H2 2022. Also, when talking about customers' behavior, we expect in the coming months and quarters, higher focus on the working capital management and thus reductions in their inventories.
Starting the segment update with Semperflex on slide eight. There's clear evidence for consistently improving performance quarter after quarter, as you can see on the top chart. Top-line growth was up by 52% year-on-year and EBITDA by 78%. A record result on the back of not only proactive price increases, but also higher volumes and efficiency gains through economies of scale. I am particularly proud of the consistently improving margins, which make the segment again the industrial sector's star performer. At the same time, I should mention that historically high order book is now being processed, and we would expect lower absolute levels going forward. On a long-term basis, however, our new EUR 110 million investment is clearly earmarked to continue with our market leadership and high profitability. Turning the page to Sempertrans on slide nine.
We see an expected positive upward trend in revenue and EBITDA in quarter 2 2022, as the mining industry has recovered given higher commodity prices, which led to large replacement projects. These results were achieved despite headwinds from still congested ports globally, which partially delayed revenue recognition. Looking back over the last three years, the order book at Sempertrans is at its highest level, and we managed to improve both top line and profitability. On the back of partial sales price increases, margins were up to 12.8% in quarter 2 2022, almost four times the level over the same period last year. Further evidence that our special management attention has paid off. On slide 10, the market for Semperseal has been more difficult, which limits our pricing power and ability to recover costs.
Another part of the explanation is that volumes were impacted by the discontinuation of our Russian sales activities. To give you an indication, in contrast to other segments, sales to Russia, Belarus, and Ukraine still accounted for more than 5% of the segment's revenue in the first half of 2021. However, with a better order book and top-line growth by 27% year-on-year, also supported by the necessary price increases, the EBITDA margin recovered to 10% in Q2 2022, which is the third consecutive quarter for margin improvements. As mentioned before, one highlight of Semperseal was the ramp-up of our new production site in the U.S., with a second line following closely in early Q3 2022. The U.S. is a strategically important market for us, and we feel encouraged by the strong local demand for our products.
Finally, for the industrial sector at slide 11, Semperform achieved a strong top-line growth through proactive price increases to offset cost inflation, with margins in Q2 2022 at 18.3%, well above the same period last year. Going forward, the historically strong order book is encouraging and supports further revenue growth. However, the performance at different business units was a mixed bag, with handrails being stable year-on-year and offsetting the impact of the China lockdown. Demand at special applications was higher and the engineered solutions lower compared with the same period last year. Completing this segmental review with Sempermed at slide 12. From our perspective, the corona-induced special cycle has clearly come to an end.
Additionally, we currently witness a reversal from the worldwide excessive stockpiling in 2021 and would expect a more normalized situation in 2023. As we expected, resulting from the surplus capacities and consequently from the strong decline in selling price, revenue were down by almost 50%. EBITDA fell by 93% year-on-year, with low margin of 2.5% in the single quarter 2, 2022. Heavily impacted by the strong increase of raw materials and gas prices. While at the same time, higher inflation also drove up personnel costs. While the order book is still above pre-corona level, we are now looking ahead to a new normal in 2023, and remain committed to our strategic landmark decision, including the separation from the medical sector as previously announced.
Having spoken about the separation of the segments, in terms of operational challenges, there is a major topic which affects all our segments that I would like to address on slide 13. The question of energy crisis. Be it simply the result of the recent years developments, or stemming from the current crisis to the Russia-Ukraine war. Energy consumption has been one of the focus points of our ESG strategy, and its relevance has accelerated following the Russian political blackmail of reduced gas deliveries to Europe. You see here three blocks of different measures that we apply to mitigate these impacts. First, the ambition for more energy efficiency has been a vital pillar of our ESG strategy, 30 by 2030. This not only means the definition of specific measures, but also the accurate reporting design.
For example, also offering internal consulting service for the preparation for worst case scenarios, such as a possible blackout. The second block refers to the processing of the measures, as these energy reduction measures are part of the management toolkit, which regularly reviewing company performance. We can also shift the focus according to changed economic and ecological aspects. That gives us a high level of flexibility and especially these days, enables us to react to the current development. Finally, very concretely, the alternatives for gas burners have become a more pressing issue to safeguard ongoing production at all of our European sites in case of a full Russian gas stop. Therefore, we have already installed or are in the process of planning alternatives for gas burners at our sites in Austria and the Czech Republic, as well as in Germany.
With this, I have come to the end of the operational review and now hand over to Petra, who will take us through the financials in more detail.
Thank you very much, Karl, and a good afternoon to all of you from my side as well. Let me start with the financial highlights and the key focus areas from the CFO's perspective in the first half of 2022 on slide 15. Firstly, I fully agree with Karl's assessment that we have achieved an outstanding performance in the industrial sector, and this despite the adverse external market shocks we faced at the same time, the end of the corona-induced special cycle in the medical sector. With this in mind, proactive working capital management remains one of the key focus areas as cost inflation continues. This is one of the areas where we can make a difference as the company's top management, as is the case in terms of proactive pricing policy and cost reduction measures.
The special attention we pay to is to ensure stability, the quality of the order book and protect margins. Given macroeconomic developments and the strong U.S. dollar, cash management and U.S. dollar investments is another major area which keeps me busy and what I carefully monitor. As you might know, regarding FX impact, we are U.S. dollar long on group level. Bottom line, we therefore profit from the strong U.S. dollar on one hand operationally, but as well through early and smart investments in U.S. dollar funds. In addition, let me point to another important aspect for me as the CFO. We have gone through a massive restructuring program while facing a once in a lifetime global pandemic.
We still maintain a strong balance sheet despite significant cash outflows for investment, the dividend payments to our shareholders in 2021 and 2022, as well as debt and hybrid capital repayment. In many ways, this balance sheet and high cash position should help to weather the storm while also supporting our strategy at the same time going forward. As to the outlook and first signs of an economic downturn, we confirm our guidance for 2022 as provided in March. This under the recessionary scenarios in Europe by the end of this year. High energy prices with increasingly limited availability and the continuing impact of geopolitical conflicts on supply chain, including the possible Taiwan impacts.
Karl will elaborate further on those impacts when going into details about the outlook. With this short introduction, let me turn to the financials and start with revenue development in the first half year of 2022 on slide 16. While we are very pleased about each of the industrial segments achieving a double-digit top-line growth, revenues declined at Sempermed to EUR 194.4 million by 49.5% year-on-year. All four industrial segments reached an aggregated growth of 38.9%, which, on a standalone basis, is a very impressive top-line development against declining market conditions. On a group level, the outstanding performance of the industrial sector accounted for 65% of group revenues in the first half 2022, could not fully offset the significant decline at Sempermed, a very different revenue composition compared with last year.
When looking at the same bridge chart for EBITDA on slide 17, it becomes clear that despite the excellent performance of our industrial sector, Sempermed's profitability suffered compared with the great performance of the previous year. In terms of the industrial sector, Semperflex achieved a EUR 20.6 million year-on-year improvement in half year with a strong 27% margin, while only Semperseal suffered a small decline in EBITDA. Among the other industrial segments, Semperform also achieved a double-digit margin of 15.4%, while Sempertrans and Semperseal came close to 10%. On an overall basis, I would like to mention again that the strong U.S. dollar additionally supported our result.
While group EBITDA margin is still at a comforting 13.2%, it is of course way behind the 37.5% achieved in the first half of 2021. Which is another sign to what extent the Corona-induced special cycle at Sempermed has affected the group's overall profitability. The pendulum from the special cycle at Sempermed is now swinging back and will weigh on the expected result in the second half of the year. When looking at the moving parts of operating performance at slide 18, it becomes clear that the declining price effect at the medical sector had the most significant impact, which was only partially offset by the higher sales prices in the industrial sector and the higher volume effect.
On the other hand, taking another view, point of view, if you simply blank out the external market effects on the sales prices in the medical sector, we were clearly able to improve the result year- on- year and mitigate the negative cost impacts. On aggregate, the price and volume effects on sales accounted for a negative EUR 90.2 million, while all the other factors reduced first half 2022 EBITDA by a further EUR 82.1 million. Cost of materials, energy, and logistics are largely external factors. Although in each case, we were trying to make a significant difference.
Over the page, we are consistently tracking key financial KPIs over the last four years, and it simply becomes obvious that, A, 2020 and 2021 have been exceptional years, which are difficult in terms of like for like comparison. B, earnings in the first half 2022 are still significantly above those at pre-corona level in 2019. At the same time, the free cash flow is lower compared to the same period of 2019, largely due to working capital effects and the reduced operating cash flow following the reversal of the Corona-induced special cycle at the medical sector. One point to mention in this respect was the tax payment of EUR 32 million being clearly higher in the years before for the Sempermed-induced exceptional good result in 2021.
This is, by the way, also staying at this level until the end of this year. In turn, CapEx is at an upward trend, both due to higher spending for growth and maintenance. On slide 20, you can see the quarterly CapEx developments. The larger share for the medical sector comes from the value maintaining investment in P7Plus. On the other hand, we have also recorded increasing levels for the industrial sector, where, for example, Semperseal received a high CapEx in 2021 and 2022, given the ramp-up of the new production site in the U.S. However, going forward, growth investment in a new hose production facility in Odry will show up more visibly.
Overall, we now expect CapEx in 2022 to be above the level of the previous year with 28.4 million EUR in first half 2022 comparing with 18.8 million EUR over the same period last year. Once again, forward-looking, we're seeing now an increasing share of growth projects. Turning the page to free cash flow at slide 21, the strong decline in operating cash flow due to the reversal of the COVID related special cycle in the medical sector becomes obvious. On a pre-tax basis, the operating cash flow was impacted by inventory build-up and by the tax payment amounting to 32 million EUR, which clearly exceed last year's levels too.
At the same time, the investment cash flow increased due to higher CapEx, resulting in a negative free cash flow of EUR 5 million, compared with the +EUR 167 million over the same period last year. However, adjusted on a pre-tax basis, free cash flow in the first half, 2022 was in the positives and amounted to EUR 28 million, compared with EUR 183 million last year. As I had outlined before, working capital management is one of the key priorities for me as the CFO, and the chart on slide 22 underlines this clearly. Despite our consistent effort in managing working capital on a tight and efficient basis in previous years, current economic circumstances, notably supply chain constraints, but also higher costs for raw materials and components, have resulted not only in higher inventories, but also trade receivables, just as trade payables.
Thus, we have proactively decided to accept this in order to safeguard ongoing production. The comparable for 2021, 2022 clearly shows that the war in Ukraine accelerated previous cost inflation and supply chain disruptions since the start of 2022, with Q2 2022 going for the first time in three years to above 20% trade working capital as a percentage of last 12 months revenues since our successful optimization efforts. This is still below our general long-term ceiling of 22% that allows for different eventualities. However, I also want to clarify that we do not see this current level as our target ratio going forward, but strong focus and work on this to reduce it again. Finally, I'm delighted to be able to present another quarter of a very strong balance sheet.
With a Net Debt to EBITDA continuing to be below zero, a net cash position of EUR 106 million instead of a net debt, and an equity ratio of 57.4%. In terms of liquidity, we had cash and cash equivalents at EUR 193 million as of June 30, 2022, and unused credit facilities of EUR 90 million. In addition, the corporate Schuldschein loan amounted to EUR 87 million at the end of June, while paying back the nominal value of EUR 34 million already in July. In May, we paid EUR 1.5 dividend for 2021, amounting to a total payout of EUR 30.9 million to our shareholders. With this, I have come to an end of my part and hand back to Karl for final remarks.
Thank you very much, Petra. Let me now complete the presentation with our management assumptions and outlook for 2022 at slide 25. While we can still point to an outstanding performance of the industrial sector in the first half of 2022, we clearly see clouds darkening in the second half of the year through escalating geopolitical conflicts. Not just the Russian aggression in the Ukraine, but also China's war games against Taiwan. With all the economic implications for surging energy costs, continuing supply chain constraints, high inflation, and a strong U.S. dollar. While the second half of the year is seasonally weaker and we have a number of planned regular maintenance stop, it is the sign of contracting economic activities, combined with the looming energy crisis in Europe that lead us to confirm the outlook for 2022 as originally published in March.
In addition, Sempermed remains under strong pressure, given not only the reversal of the excessive stockpiling, but also continuing uncertainty with regards to volume and price normalizations. While we have talked in great detail about our mitigating efforts today, we work currently on the assumption that market dynamics are most likely to differ from previous supply and demand projections, given that cost inflation is accelerating throughout the industry and growth is most likely to slow down even further. Against a potential recessionary scenario in Europe, and perhaps even the U.S. in 2023, we are prepared not only with a strong balance sheet and high cash position, but also a more slim, agile, and efficient organization, which should help to weather the storm. With this, we have come to the end of our presentation, and Petra and I are now delighted to take your questions.
Ladies and gentlemen, at this time, we'll begin the question and answer session. Anyone who wished to ask a question may press star followed by one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star followed by two. If you're using speaker equipment today, please lift the handset before making your selections. Anyone who has a question may press star followed by one at this time. One moment for the first question, please. The first question is from the line of Markus Remis from RBI. Please go ahead.
Good afternoon. Congrats to a strong industrial performance. I have a couple of questions which I would like to take one by one. Firstly, I'm trying to get my head around your full year outlook. You're saying margins intact. Can we be a bit more precise? Does that mean EBITDA will be below EUR 100 million?
Hello, Mr. Remis, Petra Preining speaking. Thanks for the question. We have, of course, expected this question, given that very strong first half. You have to understand that the current market situation is affected by very high uncertainty. This is not only by the known effects, given the energy price, but also the energy supply in Europe. Here we see very high uncertainty in the market. We also, as everybody else, might be affected by a recessionary scenario in the fourth quarter.
Additionally, we also, as you know, are prepared to enlarge our portfolio with M&A transactions, which, as you also know, might come at certain costs or on our corporate cost, the corporate cost part might be affected by certain transactional expenses for the second half. I think this summarizes the current situation quite well. Please understand that we cannot go any further at that point, but we definitely will give you an update in Q3.
Okay, when you say below the EUR 100 million - EUR 120 million range that back then existed, and you will be below that in the end means, I don't know, EUR 90 million - EUR 95 million EBITDA, which I'm actually struggling to reconcile. Of course, I fully get the point of rising corporate costs. I would also will not be surprised to see Sempermed again turning to loss-making territory, given the trajectory we've seen on top line and over capacities and so on. Still, I mean, Semperflex incredibly strong, Semperseal, which is late cyclical, so you has long lead times.
I don't see a reason why that should kind of end abruptly, given that it actually has just started to kind of show the benefits of the order intake of recent quarters in the Q2 top line. Okay, Semperform sequentially weakened in the second half, but to me it seems there's a lot of cushion baked in. Also materials costs are coming down. I get the point on higher energy costs, but yeah. I'm struggling to get to something like EUR 20 million EBITDA in the second half, unless Sempermed actually takes a deep dive earnings-wise.
Um, and you-
But-
Oh, excuse me.
No, go ahead.
Sorry. We have described it in the slide deck, and Mr. Heider has taken it into his notes already. The situation with Sempermed, and you have described it also. It's you have to basically understand that in 2021 the market was literally hamstrung for gloves. One has to understand that 2021 and 2022, if you like, can be seen as one year. The current situation we see at Sempermed is highly affected by the overstocks we still have in the market. Not only us, but the entire industry.
Here we see an effect that this will take till some months to be resolved. Because you have touched on the cycle of our industrial segments, you also have to understand that what we see currently and what we are very happy about on Semperflex. Semperflex is an early cycler of the portfolio. Any effects we see we will see in Semperflex first, and then the others to come. You also know that Semperflex is the biggest contributor currently, at least in 2022. The effect then will also have some impact.
In general, we see, as I've said earlier, the effect on the volatility of the market, the gas availability, especially in Europe, the input cost as described, but as well, potential transaction costs often visible in corporate costs in the second half.
Okay. Well, let's leave it here then. On the Med segment, I mean, first question on pricing in the report, you mentioned the normalization of prices. I mean, is that to be interpreted as like at pre-COVID levels, and would you see further downside to prices given the supply-demand dynamics you're describing?
What we currently see is that clearly a normalization on the ASP, as we call it. We expect that this will also be resolved, at least it will take till the overstocking is resolved. As you have seen or read for sure also from our competition, this is a very volatile situation. We also don't know any potential other pandemic effects still to come. Currently what our expectations are is that we reach the pre-COVID ASP earlier than expected, so by the end of the year.
Okay. You still have market prices above the pre-COVID level then at the moment?
Yes. Yes, we do have.
Okay. Good. I mean, on the divestment process, just looking at Top Glove, for instance, they've substantially scaled back their expansion plans. How difficult is it to find a buyer at the moment? I mean, Sempermed could well end up, I guess, in negative territory. I mean, just looking at where it was before the onset of the pandemic. I understand you've done a lot of restructuring, but I mean, the trajectory definitely points south. Is there kind of interest for the asset at the moment? If you could remind us of the book value by the end of the first half.
Okay. May I answer this question? Of course, the industry is in a different cycle than two years ago. From that point of view, the higher cycle has ended and the current market dynamics in the market for examination and protective gloves. We as Executive Board are evaluating the next steps towards the separation. Please understand, I will not give you a book value for our business. I think that's it.
Okay. Last question before I get back into the line. On the alternative energy sources, what exactly is meant? It seems to have been already quite advanced in the switch from gas to alternative sources. Can you be the alternative for gas burners? Can you be more specific what that means, to which extent that is also reflected in CapEx? I'd appreciate CapEx guidance for the current year, as I understand, above the prior year. Is that already including some spending on Odry, on the expansion, or will that start to kick in only as of next year?
Alternative energy sources. Our gas burners, let's say, decarbonization scheme for our operations. We have early enough decided to switch Wimpassing and Odry in Czech Republic to oil burners, combined burners, gas and oil. Of course, when the gas is stopped, we have the opportunity to produce further with our oil burners. Where we are, of course, the delivery of the equipment is a little bit delayed, as you see. Overall, the equipment is installed and beginning of September, mid-September, our equipment is ready. In Austria and in Czech Republic, in Germany, we are evaluating all options, as we speak, and implementing them as fast as possible.
I take the second part on the CapEx. The necessary CapEx in relation to what Mr. Heider just has described is of course included in the guidance we have already given to you today.
Okay. When you say above the prior year, EUR 56 million, can you be a bit more, kind of at least frame it into brackets? Is it EUR 60 million-EUR 70 million or higher than that?
Above. Yeah, apologies. It will be above. It will not be in the amount of tens above, but it will be above.
Okay. Thank you.
Next question comes from the line of Christian Obst from Baader Bank. Please go ahead.
Yes, good afternoon. Maybe first some kind of clarification concerning the slide deck. Normally you are providing us with also quarterly numbers, Q2 numbers on the slides 30, 31. Now we don't have Q2 figures included there in the segmentation. On slide 31, everything ended in with 4Q 2021. Is there any reason for that? This is the first question. Second one is, in the report on page two, if I combine everything you, the EBITDA of the segments, I come out with EUR 78 million, and you have included there EUR 68 million. There's some kind of a EUR 10 million gap. Maybe can you explain something there?
Hello, Mr. Obst. Sorry, we were just baffled by looking at the appendix and realized that we still owe you that, the quarterly split. Can you do me a favor? Can you repeat the second part of your question? Apologies.
When I sum up the EBITDA of the segments on page 4 in your half-year report, so on the first line, the blue line there. If I sum everything up to.
That's easy, that's corporate.
The EBITDA here is 68, and when I exclude everything, I come out with 78, and the corporate then is minus EUR 15 million.
Um, um, I.
In the first quarter.
So in, in, in general-
In the first half.
We refer to the half year report, to the official one. We will check the numbers. We will come back to you in case there is a typo, we'll double-check. By the size of it sounds like this is corporate. Can you go on to the next question? We'll come back to that.
Yeah.
Thank you.
Can I come back to the activities in manufacturing with the Sempermed. You have ramped up new lines, and you're saying that the prices per glove is still above pre-COVID level. Of course, cost increases, and you have to work against these high stocks in the market. Aren't you able to close down your older facilities to reduce the cost level? Because in the second quarter, you are moving into the negative EBIT territory, and this of course is not a very good situation. You have to fight against that, and I think you should close down these old lines, right?
May I answer this? Of course, we optimize our line loading according to the most modern and most cost-effective, let's say, equipment. This we're doing and of course, we reduce our production cost on this.
That means that you are able to come back towards break-even on an EBIT level in the second half? Or have you already optimized everything in the second quarter?
Here we are not giving you a guidance on this. You heard my colleague Petra about the average selling price, where it is. Therefore, the second half of the year will give us quite some challenges.
Yeah, I'm only asking what are you doing operationally with your plants in Thailand and Malaysia?
As I said, we're optimizing our line loading. We are turning over every stone to bring our costs down, reduce our shift models, reduce our headcount. All this is in motion as we speak.
Yeah, this is more or less my questions because I didn't really get these coming back to the first questions there. High corporate costs, if the 68 is right, and maybe you can explain the high corporate costs in the second quarter.
Coming back to your initial question, we have now double-checked and recalculated. It's high. My initial answer to you is correct. The delta is EUR 8.4 million corporate cost, which is significantly below the number we had in the comparable period last year, which was driven by transactional expenses, as we have already outlined in previous quarters. The overall corporate load, if you like, is significantly below what we have seen last year.
Okay. Is there something special in the depreciation line? It looks like it is.
I mean, I don't know what you see as things as special. We have already explained we had the P7 Plus completed in the first quarter.
Yeah.
This year we have the U.S. Semperseal production open this year.
This is only the increase for Sempermed from EUR 5.7 million-EUR 7 million depreciation. Is there something in the corporate others line also included?
Nothing that's extraordinary. The two big items we have already touched upon, which is the P7 Plus and the U.S. production facility.
Okay.
Thank you.
We have a follow-up question from the line of Markus Remis. Please go ahead.
Hi. Can you give us an idea about your U.S. dollar net exposure?
Can you come again? I just.
About your.
Can you repeat?
I'm asking about your currency exposure.
Currency exposure. Okay, sorry.
In the U.S. dollar. What's the net figure, please?
Sorry, I didn't grasp the first part of the sentence. As you know, we're dollar long. Just give me one second to find the right number. One second. I'll be right back with you. Revenue FX impact total compared to the same period last year is at, circa EUR 23.7 million in top line. Of which the bigger part comes from Sempermed.
Okay. The net exposure?
The net exposure you mean in the EBITDA?
Like the open dollar position, dollar revenues versus dollar costs.
We do not disclose this at that level. Sorry.
All right. On the topic of your customer levels. I mean, we're hearing from companies that everybody's kind of increasing safety stock for the obvious reasons. I mean, do you think that your customers will de-stock heavily towards year end? Or don't you think that they might opt for certain safety levels and that occasional kind of order declines are probably also the result of lower lead times because kind of the general takeaway, you know, order books are not as full as they were, say, half a year ago, so there's no need for placing orders already, say, six months in advance versus probably, again, more back to, I don't know, normal lead times three months ahead or so.
Do you firmly believe in this, in the strong de-stocking as a drag in the second half?
Thank you for this question. As you, one of your colleague or yourself said, we have a different cycle on different market segments. Of course, there were safety stocks with our customers built up in the past. Of course, everybody wants to, let's say, reduce working capital. Therefore, we expect certain moves, but in different segments on a different scale.
Okay. In Malaysia, you're talking about the minimum wage increase. Can you help us with the magnitude of that, and as of when it will be effective, or has it already become effective?
Thank you for this question. This happened already in May this year in Malaysia. It.
Okay.
It is around MYR 1,300-MYR 1,500. That's the change.
Okay, thank you.
Per person per month, please.
Yeah.
The next question comes from the line of Roland Gohn from 4Stand W Holdings. Please go ahead.
Yes. Good afternoon from my side. Thanks for taking my questions. Some additional questions on the already asked questions. First of all, could you give us a split of the very impressive increase in sales in the industrial sector of 39%, split in regard price effects, currency effects, and volume effects?
Okay, thank you for this question. Of course, according to all the raw material prices, we had to forward the price increases. We have a price, let's say, effect in our increased revenue, but also a volume effect. Overall, the detailed number I will not disclose on this call.
Could you say if the price effect was?
We can.
Yeah. Sorry.
We can share, however, is that the lion's share is obviously price-driven.
Yeah.
The percentage in comparison to the first half of last year is in the industrial sector over 30% in price.
Okay. Many thanks. Second question. Sorry for bothering you on this topic. When we look at the Sempermed business, the decrease in sales and especially in earnings was much faster than anticipated a few quarters ago. My feeling is that we are on an earnings level that we saw in 2018, 2019, where we saw some heavy impairments in this sector. We have the reversals in 2020. I see the risk of higher impairments now with this new or old earnings levels in this sector. Could you elaborate a bit on this, please?
As you have very rightfully said, the cycle we have seen in the last two years had also some effects on the balance sheet. We have always disclosed that this might be followed by a potential impairment. We have always disclosed that in any publication. If it happens, we will inform you accordingly. But at the current stage, you have seen our half-year report already.
Okay. Thanks. Then one additional question also on the Sempermed sector, more on the operational side. You're talking on the one side of overstocks in the market, but on the other side, on a very full order book, higher than the pre-corona level. Could you elaborate a bit on the current behavior of your customers? The order book is higher. Are the call-offs delayed from your customers? I have in mind that you're more price takers than you can set the prices. Are there delays in the call-offs? Yes, maybe a bit on this.
Thank you for the question. Of course, when you are in the situation that the customers are overstocked, even they're asking for cancellation of orders, we are not accepting this, and therefore we get some requests to push order delivery forward, and this happens as well.
Okay. Many thanks.
As we're running out of time, this concludes our question and answer session. I hand back to Mr. Heider for closing comments.
Thank you very much for listening to our successful first half year and all your interest in our company. If you have any further question, please come back to us to Mrs. Helenyi Judit . She will answer the questions. Thank you very much. We wish you all together a nice summer and still a summer break if you have it in front of you and a successful business. Bye-bye.