Verallia SAS · EURONEXT:VRLA
Verallia SAS — Verallia — 9M 2020 Earnings Presentation
24 slides from Verallia SAS's earnings presentation, Oct 29, 2020
Slide 1: 9M 2020 Results
9M 2020 Results October 29th, 2020
Slide 2: Nathalie Delbreuve is appointed Chief Financial Officer
NATHALIE DELBREUVE IS APPOINTED CHIEF FINANCIAL OFFICER Nathalie Delbreuve has been appointed as Chief Financial Officer of the Verallia Group, as of November 2, 2020 Nathalie will oversee the Finance and IT teams Nathalie will join the Group Executive Committee Verallia 9M 2020 Results 29 Oct
Slide 3: 9M 2020 Results agenda
9M 2020 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion and outlook Verallia 9M 2020 Results 29 Oct. 2020 3
Slide 4: Q3 volumes better than anticipated enabling the Group to upgrade its 2020 guidance
Q3 VOLUMES BETTER THAN ANTICIPATED ENABLING THE GROUP TO UPGRADE ITS 2020 GUIDANCE Diversified and balanced end-markets 2019 Glass packaging(1) sales split by end-market 9M 2020 Financial Highlights Food Revenue 17% Still wine - 9M’20 Reported revenue at €1,956m, slightly down -1.0% 33% vs. 9M’19
Slide 5: Verallia Purpose
VERALLIA PURPOSE On October 20th, 2020, Verallia announced its Purpose: “Re-imagine glass for a sustainable future” This purpose encompasses VRLA's ambition for society & is fully integrated into VRLA's long-term strategy The Group expects to collaborate with all its stakeholders to strengthen
Slide 6: Two new innovative product launches
TWO NEW INNOVATIVE PRODUCT LAUNCHES ECO-DESIGNED, REUSABLE WATER NEW BOTTLE FOR THE NEW BOTTLE BY GOBILAB & VERALLIA SODASTREAM MACHINE The Gobi Indoor The SodaStream DUO 1L bottle First reusable water bottle made out of glass The new bottle for the new Sodastream machine, that is 100% made in F
Slide 7: Augmented intelligence deployment at Verallia
AUGMENTED INTELLIGENCE DEPLOYMENT AT VERALLIA Verallia received the Augmented Intelligence and Enterprise Trophy from the RH&M Group* Some Augmented Intelligence examples at Verallia: Automatic furnace control Cold end quality inspections in partnership with equipment suppliers Ongoing project
Slide 8: Financial results agenda
9M 2020 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion and outlook Verallia 9M 2020 Results 29 Oct. 2020 8
Slide 9: Better than anticipated volumes in Q3, mainly in Latin America, Italy and Iberia
Better than anticipated volumes in Q3, mainly in Latin America, Italy and Iberia Reported revenue bridge (in €m) Reported Growth: -1.0% Q3 volumes improvement by Organic Growth*: +2.3% geography: - Very dynamic in Latin America - Strong in Italy 67.8 (65.6) 1,976 - Recovering in Iberia (22.8) 1,95
Slide 10: Adjusted EBITDA back to last year's level despite COVID-19 and forex
Adjusted EBITDA back to last year’s level despite Adjusted EBITDA margin COVID-19 and forex 9M 2020 9M 2019 Adjusted EBITDA (in €m) 24.3% 24.2% +8 bps Reported Growth: -0.7% Adjusted EBITDA almost stable, thanks Organic Growth*: +3.9% to: 1. Better than expected volumes in Q3 27.6 (22.0) 2. Positi
Slide 11: Cash performance agenda
9M 2020 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion and outlook Verallia 9M 2020 Results 29 Oct. 2020 11
Slide 12: Continuous deleveraging capabilities
Continuous deleveraging capabilities In € million 30/09/2020 30/09/2019 Net Debt 1,358.5 1,627.1 LTM Adjusted EBITDA 611.8 603.2 Net Debt / LTM Adjusted EBITDA 2.2x 2.7x Steep pace of deleveraging maintained: -0.5x from Sept. 2019 to Sept. 2020 This continuous deleveraging is driven by: - Increa
Slide 13: Verallia's net debt: €1,358 million at September 30, 2020
Verallia’s net debt: €1,358 million at September 30, 2020 Nominal amount or Final September 30, In € million maximum amount Nominal rate maturity 2020 drawable Term Loan A 1,500 Euribor +1.50% 07/10/2024 1,503 Revolving Credit Facility 1 500 Euribor +1.10% 07/10/2024 - Revolving Credit Facility 2 25
Slide 14: Conclusion and outlook agenda
9M 2020 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion and outlook Verallia 9M 2020 Results 29 Oct. 2020 14
Slide 15: Conclusion: Solid Q3 after a resilient H1
Conclusion: Solid Q3 after a resilient H1 Volumes increase in Q3, leading to: - +8.9% organic* growth in Q3 - +2.3% organic* growth over the first 9 months, despite a Q2 impacted by the COVID-19 (-5.4% organic* decline in Q2) Adjusted EBITDA margin maintained at 24.3% over the first nine months
Slide 16: 2020 guidance upgrade
2020 GUIDANCE UPGRADE Despite limited market visibility and uncertain sanitary situation Q3 volumes performance better than expected 2020 guidance upgrade* For the financial year ending 31 December 2020, the Group now anticipates*: Organic Adjusted Volumes Cash Flow** Leverage*** Growth EBITDA Sli
Slide 17: Mid-term guidance as confirmed in July 2020
MID-TERM GUIDANCE AS CONFIRMED IN JULY 2020 Mid-term (2020-2022F) • Negative impact of Covid-19 on sales volumes in 2020 • Lower expected sales price increase with ORGANIC SALES GROWTH(1) +3-5% CAGR NO LONGER VALID: more moderate inflation in production costs than initially anticipated over the peri
Slide 18: Appendices
9M 2020 Results Appendices Verallia 9M 2020 Results 29 Oct. 2020 18
Slide 19: Glossary
GLOSSARY Activity category: corresponds to the sum of the volumes variations plus or minus changes in inventories variation. Organic growth: corresponds to revenue growth at constant exchange rates and scope. Revenue growth at constant exchange rates is calculated by applying the average exchang
Slide 20: IAS 29: Hyperinflation in Argentina
IAS 29: Hyperinflation in Argentina Since the second half of 2018, the Group has applied IAS 29 in Argentina. The adoption of IAS 29 requires the restatement of non-monetary assets and liabilities and of the income statement to reflect changes in purchasing power in the local currency, leading to a
Slide 21: Reconciliation of operating profit to adjusted EBITDA
Reconciliation of operating profit to adjusted EBITDA In € million 9M 2020 9M 2019 Operating profit 238.4 241.9 Depreciation and amortisation (i) 207.6 211.9 Restructuring costs (ii) 19.8 2.8 Acquisition, M&A 0.1 0.0 IAS 29 Hyperinflation (Argentina) (iii) 1.7 2.1 Management share ownership plan and
Slide 22: Key figures by quarter (1/2)
Key figures by quarter (1/2) In € million Q1 2020 Q1 2019 Revenue 644.8 632.9 Reported growth +1.9% Organic growth +4.0% Adjusted EBITDA 151.3 142.0 Adjusted EBITDA margin 23.5% 22.4% In € million Q2 2020 Q2 2019 Revenue 629.9 696.4 Reported growth -9.6% Organic growth -5.4% Adjusted EBITDA 147.4 17
Slide 23: Key figures by quarter (2/2)
Key figures by quarter (2/2) In € million Q3 2020 Q3 2019 Revenue 681.2 647.0 Reported growth +5.3% Organic growth +8.9% Adjusted EBITDA 175.7 165.0 Adjusted EBITDA margin 25.8% 25.5% Verallia 9M 2020 Results 29 Oct. 2020 23
Slide 24: Disclaimer
Disclaimer Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business stra