SIG Group AG · SIX:SIGN
SIG — Merger or Acquisition (November 2020)
25 slides from SIG's merger presentation, Nov 25, 2020
Slide 1: Full Consolidation of MEA Business to Accelerate Growth
FULL CONSOLIDATION OF MEA BUSINESS TO ACCELERATE GROWTH INVESTOR PRESENTATION 25 NOVEMBER 2020
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is not for use within any country or While we are making great efforts to include accurate and up-to-date information, Adjusted EBITDA is defined as EBITDA adjusted to exclude certain non-cash jurisdiction or by any persons where such use wou
Slide 3: Our Agenda and Presenters for Today
OUR AGENDA AND PRESENTERS FOR TODAY 1. INTRODUCTION Samuel Sigrist Rolf Stangl Chief Executive Officer, SIG 2. TRANSACTION HIGHLIGHTS Samuel Sigrist Samuel Sigrist 3. SIG COMBIBLOC OBEIKAN BUSINESS Abdelghany Eladib Chief Financial Officer, SIG OVERVIEW Chairman of SIG Combibloc Obeikan 4. CONCLUDIN
Slide 4: Introduction
TintTRODUCTION
Slide 5: SIG - Leading Systems and Solutions Provider for Aseptic Packaging
SIG - LEADING SYSTEMS AND SOLUTIONS PROVIDER FOR ASEPTIC PACKAGING GLOBAL FOOTPRINT WITH INTEGRATED SUPPLY CHAINS #2 globally in Razor/razor- Around 1,250 resilient and blade business fillers in the field growing end- model with long- markets term customer relationships Core revenue Adj. EBITDA Trac
Slide 6: SIG's Focus on Expanding Its Global Footprint – Key Recent Milestones
SIG’S FOCUS ON EXPANDING ITS GLOBAL FOOTPRINT – KEY RECENT MILESTONES February 2019 July 2019 September 2018 First customer 2nd production plant in SIG Combibloc in India China announced IPO • Breakthrough into one of the • Set for growth with new state fastest growing geographies of the art product
Slide 7: Embracing the Growth in Our MEA Business
EMBRACING THE GROWTH IN OUR MEA BUSINESS TRANSACTION BRINGS SIG CLOSER TO CUSTOMERS IN MEA ATTRACTIVE GROWTH DRIVEN BY ECONOMIC AND … WITH MULTIPLE CONSUMER FUNDAMENTALS… WHITE SPACE OPPORTUNITIES 17 out of 70 >45% • Favourable demographics driven by population 1.7bn Countries currently Of populatio
Slide 8: Transaction Highlights
[TRANSACTION HIGHLIGHTS
Slide 9: Transaction Overview
TRANSACTION OVERVIEW • SIG to acquire the remaining 50% of its Middle East JV SIG Combibloc Obeikan (“MEA JV”) and gain full operational Overview control • Price paid at completion as combination of cash and SIG shares Consideration — €167 million in cash, plus — Fixed number (17.5m) of newly issued
Slide 10: Transaction Rationale for SIG
TRANSACTION RATIONALE FOR SIG Expands global presence in a region with strong growth prospects Well-invested footprint (fillers and sleeves production) Opportunity to continue to leverage SIG technology to meet evolving consumer needs Full operational control of business with a very attractive growt
Slide 11: Enhanced Global Geographic Reach
ENHANCED GLOBAL GEOGRAPHIC REACH SIG Standalone SIG pro forma with MEA JV More diversified geographic mix MEA as a new separate segment representing 14% of total revenue 19% 14% Consolidates SIG’s leading position in the Middle East and Africa 36% 44% 17% €1.8bn €2.0bn2 Higher growth driven by acces
Slide 12: Strengthened Margin and Cash Flow Profile
STRENGTHENED MARGIN AND CASH FLOW PROFILE SIG Standalone SIG Pro-forma with MEA JV Margin ex MEA JV Higher pro forma profitability dividend: ~26% Adjusted 27.5% 28% ◼ Full integration of SIG global production network EBITDA margin ◼ Increased efficiency SIG LTM Sep-2020 Pro-Forma LTM Sep-2020 ◼ Cost
Slide 13: Strong Foundation of the MEA JV
STRONG FOUNDATION OF THE MEA JV… 201 New regional HQ 9 Dubai Innovation Agreement for Riyadh factory set + training centre & Reliability combination of up in Dubai Centre opened MEA JV with SIG 2001 2005 2009 2015 2017 2018 2020 SIG Combibloc Extrusion plant Obeikan Riyadh factory (Riyadh) establish
Slide 14: Has Driven a Track Record of High and Profitable Growth
…..HAS DRIVEN A TRACK RECORD OF HIGH AND PROFITABLE GROWTH Last 15 Years Revenue Growth Key Drivers of Growth CAGR 14% c.€290m • Average of 13 new fillings lines placed since 2004 per year • Accelerated growth in South Africa 2004 2019 Sep-2020 LTM • Increasing share of wallet with key customers Las
Slide 15: SIG Combibloc Obeikan Business Overview
SIG COMBIBLOC OBEIKAN BUSINESS OVERVIEW
Slide 16: Secular Trends Driving Robust Growth in MEA Region
SECULAR TRENDS DRIVING ROBUST GROWTH IN MEA REGION ASEPTIC CARTON SEGMENT 2020E-2025E KEY REGIONAL TRENDS DRIVING A (LITERS) CONSISTENT GROWTH OUTLOOK Population growth In line with previous communication about demand outlook Rising disposable incomes ~5.5% - 6.0% Convenience & urbanisation ~3.5% -
Slide 17: Growing Exposure to Liquid Dairy Customers
GROWING EXPOSURE TO LIQUID DAIRY CUSTOMERS SIGNIFICANT GROWTH POTENTIAL AHEAD PER CAPITA CONSUMPTION OF AMBIENT WHITE RECENT EXPANSION IN LIQUID MILK (2019, LITERS) DAIRY 41 3) 18 3 3 Continuous expansion after Al Jaied partnering with UHT strategy change SIG Combibloc Obeikan MEA Europe Americas As
Slide 18: Strong Position in the MEA Region
STRONG POSITION IN THE MEA REGION ASEPTIC CARTON MEA JV END MARKETS SPLIT SHARE 1% Liquid Dairy 36% Exposure to more NCSD1 resilient liquid dairy end 63% customers 11% Food 25% MEA JV GEOGRAPHIC SPLIT 64% 21% North Africa Diversified geographic mix 46% Middle East with significant white space opport
Slide 19: Well Established Regional Footprint
WELL ESTABLISHED REGIONAL FOOTPRINT RIYADH PLANT – REGIONAL HUB TO BE FULLY INTEGRATED INTO GLOBAL NETWORK Regional footprint Focus on responsibility and quality 17 10 ~€290m Countries with Total number of Sep-2020 LTM SIG CEO Safety Over 2.5m “safe” man hours achieved in 2020 active operations sa
Slide 20: Strong Customer Base
STRONG CUSTOMER BASE Customer Base NCSD LD Food 3) > 70 customers Diversified customer base > 10 years Loyal customer base Average length of relationship with top 10 customers 2) ~60% Customer base with % of sales from leading strong brand equity 4) customers1 4 Growing customer Average # of custome
Slide 21: Well Positioned to Capture Future Growth
WELL POSITIONED TO CAPTURE FUTURE GROWTH THREE KEY SUCCESS FACTORS OF SIG COMBIBLOC OBEIKAN INNOVATION FLEXIBILITY TECHNICAL SUPPORT PREMIUMISATION SIZE FLEXIBILITY OPERATIONAL EFFICIENCY CUSTOMER TREND • Increasing competition is driving need • Down-sizing trend in Nigeria as a result • Increased c
Slide 22: Successful Customer Wins
SUCCESSFUL CUSTOMER WINS EFFECTIVE SALES STRATEGY 22 CUSTOMERS WINS IN THE LAST 5 YEARS APPROACH TO NEW CUSTOMERS ▪ Value-based customer segmentation (hunter – farmer CUSTOMER approach) OPPORTUNITIES ▪ Investment Matrix defined to ensure strategic fit ▪ Well-trained sales force based on a comprehens
Slide 23: Concluding Remarks
Tconciupine REMARKS
Slide 24: Concluding Remarks: Key Transaction Highlights
CONCLUDING REMARKS KEY TRANSACTION HIGHLIGHTS ENHANCED ACCESS TO HIGH COMPLEMENTARY BUSINESS ACCELERATED GROWTH AND GROWTH MEA REGION MODEL PROFITABILITY ▪ Consolidate leading position in a region with ▪ Innovative product solutions addressing ▪ Expected to increase SIG’s overall growth and strong g
Slide 25: Thank You
THANK YOU