Belysse Group NV · EURONEXT:BELYS
Belysse Group NV — Balta Group — Q3 2020 Earnings Presentation
19 slides from Belysse Group NV's earnings presentation, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results Confidential
Slide 2: Disclaimer
Disclaimer In considering any performance information contained herein, you should bear in mind that past or projected performance is not necessarily indicative of future results, and there can be no assurance that any entity referenced herein will achieve comparable results or that illustrative ret
Slide 3: Introduction
Introduction Cyrille Ragoucy Chief Executive Officer Chairman of the Board Jan-Christian Werner Emmanuel Rigaux Chief Financial Officer Chief Transformation Officer 3
Slide 4: COVID-19 Q3 Update
COVID-19 Q3 Update Balta remains focused on protecting the safety and health of its employees, customers and other stakeholders throughout and beyond the COVID-19 pandemic. In the third quarter of 2020, all plants were operational. We remained focused on efficiently servicing customer orders and gra
Slide 5: Q3 2020 Financial Summary
Q3 2020 Financial Summary (6.0%) organic (7.2%) • Q3 2020 Consolidated revenue of €144.4m YoY sales growth • Top-line recovery in Rugs (+11.0%) and Residential (+0.2%), while (consolidated) Commercial (-23.7%) still impacted by COVID-19 slowdowns (1.2%) FX impact • Q3 2020 Consolidated Adjusted EBIT
Slide 6: Balta's Strategic Priorities
Balta’s Strategic Priorities Environmental, Social Digital Transformation NEXT and Governance (ESG) Three year earnings Contributing to Sustainable Digital Transformation enhancement program Development Goals • Enhancing customer • Delivering sustainable growth • ‘Design to Recycle’ Principle experi
Slide 7: NEXT Revenue: +€31m incremental revenues YTD
NEXT Revenue + €31m incremental revenues YTD Well on track to meet the €85m target for 2021 (vs 2018) 2019 YTD 2020 Cumulative Key Drivers (vs 2018) (vs 2019) (vs 2018) 1 Balta e-commerce + €5m + €5m + €10m New Segment Revenue 2 + €10m + €8m + €18m Direct route to market 3 Other Revenue Initiatives
Slide 8: Case Study: Developing our market tailored approach with high-end sustainable collections
Case Study : Developing our market tailored approach with the launch of high-end and sustainable product collections • Successful launch of high-end collections for Residential (Satino, Wild Luxury) in Northern Europe markets, which have shown continued resilience throughout the year • New sustainab
Slide 9: NEXT Margin Improvement: +€4m incremental savings YTD
NEXT Margin Improvement : +€4m incremental savings YTD On track to meet the €16m target for 2021 (vs 2018) 2019A YTD 2020 Cumulative Key Drivers (vs 2018) (vs 2019) (vs 2018) 4 Lean +€6m +€4m +€10m 5 Procurement +€4m +€1m +€5m Margins Incremental OPEX (€4m) (€1m) (€5m) Total EBITDA savings +€6m + €4
Slide 10: Lean Case Study: Broadloom – SBV Plant
Lean Case Study : Broadloom – SBV Plant Internal regranulation of PP yarn-waste • Capex investment with a pay-back < 2 years • Reduces the cost of raw materials and waste • Improves our environmental footprint • Estimated 1.000 ton per year of waste will be regranulated and reused • Further PP waste
Slide 11: ESG - Sustainability
ESG - Sustainability Our sustainability strategy is an integral part of our business strategy. The primary goal of our product development process is to increase the level of recycled content and make products easier to recycle and therefore achieve a fully circular lifecycle. In the third quarter o
Slide 12: Digital Transformation at Balta is accelerating
Digital Transformation at Balta is accelerating Digital Transformation encompasses managing customer relationships, operations, logistics and planning processes. Managing Customer relationships • Strengthened social media presence with strong focus on architects, designers and influencers to support
Slide 13: Group Q3 2020 Revenue Performance
Group Q3 2020 Revenue Performance Q3 Growth (€m) Q3 Growth (%) €m Organic -€9.4m -6.0% FX Impact -€1.8m -1.2% Reported -€11.2m -7.2% • Rugs revenues outperformed last year’s third quarter, following the COVID-19 related revenue drop in H1. US revenue grew well above last year’s, while US e- +11.0% -
Slide 14: Group Q3 2020 Adjusted EBITDA and Margins
Group Q3 2020 Adjusted EBITDA and Margins Adj. EBITDA margin (%) Q3 Q3 % €m 2020 2019 Change 11.1% 15.1% Rugs 6.9 2.6 163.9% €m Commercial 7.1 10.5 (32.1)% Residential 7.3 3.5 105.3% Non-Woven 0.5 0.6 (14.7)% Consolidated 21.8 17.3 26.3% Adjusted EBITDA • All divisions benefited from strict cost con
Slide 15: Cash Flow Q3 2020: +€30.4m
Cash Flow Q3 2020: + €30.4m • Positive net cash flow of €30.4m in Q3 2020 • As of 30 September 2020, we held cash and cash equivalents of €117.9m, including fully drawn Revolving Credit Facilities of €72.0m. • Cashflow in Q3 2020 increased through focus on cash preservation, tight working capital ma
Slide 16: Leverage of 4.7x, excluding IFRS16
Leverage of 4.7x, excluding IFRS16 €m 71.9 70.2 66.8 66.0 51.3 47.0 16
Slide 17: Extension of €61m Super Senior Revolving Credit Facility in October 2020
Extension of €61m Super Senior Revolving Credit Facility in October 2020 Super Senior Revolving Credit Facility • Signed Amend and Extend Agreement of the European €61m Super Senior Spring-back to H1 2022 Revolving Credit Facility with all lenders in October 2020 • Small increase in interest rate •
Slide 18: Conclusion
Conclusion The third quarter of 2020 was strong • Full revenue recovery in Rugs and Residential versus Q3 2019 • Commercial still somewhat impacted by COVID-19 • Material increase in Adjusted EBITDA year-on-year by 26% and Adjusted margin increased from 11.1% to 15.1% • Continued trend in October •
Slide 19: Q&A Session
Q&A Session 19