Bewi ASA · OSL:BEWI
Bewi ASA — Q4 2020 Earnings Presentation
28 slides from Bewi ASA's earnings presentation, Feb 24, 2021
Slide 1: Results for fourth quarter and full year 2020
Results for fourth quarter and full year 2020 CEO Christian Bekken, CFO Marie Danielsson 24 February 2021
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation, prepared by BEWI ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, with
Slide 3: Highlights
Fourth quarter and full year 2020 Highlights 1
Slide 4: Continued growth and EBITDA improvement
Continued growth and EBITDA improvement Volume increase and strengthened market positions • Sales growth from higher volumes in all segments and contribution from acquired companies • EBITDA improvement in all segments • Positive contribution from minority interests • Significantly strengthened recy
Slide 5: Financial highlights
Financial highlights Fourth quarter 2020 Full year 2020 • Sales growth of 25%, of which 3% organic • Sales growth of 8% from 2019, driven by acquisitions • EBITDA improvement and volume increase in all segments • Negative organic growth of 2% despite higher volumes sold, due to lower sales prices co
Slide 6: Diversified business provides solid results
Diversified business provides solid results Net sales fourth quarter 2020 Diversified across countries Diversified across segments Diversified across end-markets 1) Automotive Other Norway 5% 24% 22% Food packaging 22% Packaging & Components Other packaging RAW 38% and components 36% 22% Portugal &
Slide 7: Integration of BDH operations in final phase
Integration of BDH operations in final phase • Appointed Stein Inge Liasjø as new MD of Norwegian operations • Integration of BDH operations in final stages • Strong management team, prepared for further strategic opportunities • Acquisition in August • A turnkey supplier of packaging in Norway, mai
Slide 8: Financials
Fourth quarter and full year 2020 Financials 1
Slide 9: Financials - Overview of BEWI
Financials - Overview of BEWi EUR million ~35% ~37% ~26% RAW Packaging & Components Insulation 14.0 12.4 8.7 54.6 6.7 7.5 34.7 36.4 2.1 37.3 38.6 5.0 31.7 (0.4) Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Gross sales Adj. EBITDA Gross sales Adj. EB
Slide 10: RAW
RAW Increased production volumes, solid demand and stable margins Fourth quarter of 2020 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 50.4 million (47.1), up 7.0% 60 6,00% 4.2% o Volumes up by ~14.0%, raw material prices lower than Q419 14.0 4,00% 40 12.4 2,00% • Adj. EBITDA of EU
Slide 11: Packaging & Components
Packaging & Components Stable end markets with volume increase across regions Fourth quarter 2020 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 54.6 million (37.3), up 46.5% from acquisitions and volume increase 60 18.0% 20,00% o Increased volumes in all regions, largest increase f
Slide 12: Insulation
Insulation Volumes stable in Nordics, lower in Benelux Fourth quarter 2020 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 38.6 million (31.7), 21.5% growth mainly explained by acquisitions 60 19.3% 20,00% o Volumes slightly up in the Nordics, lower in Benelux 40 15.7% • Adj. EBITDA
Slide 13: Minority interests
Minority interests Positive contribution from shares in associated companies HIRSCH HIRSCH Frace Jablite Group TOTAL Porozell GmbH SAS • Shares in associated companies are Country/Market Germany France UK consolidated into BEWI’s accounts with Production sites 6 6 3 15 the value of the owned interes
Slide 14: Consolidated P&L
Financials Consolidated P&L Amounts in EUR million Q4 2020 Q4 2019 2020 2019 Fourth quarter of 2020 • Net sales up by 25.2%, 5 % excluding acquisitions Net Sales 130.2 104.0 462.6 429.9 • Operating Costs Other operating income 0.0 0.1 0.0 0.9 • Lower raw materials compared to 2019. Impact cost and s
Slide 15: Capital structure
Financials Capital structure Leverage: Net debt/ EBITDA ratio* • Net debt EUR 170.2 million on EUR million 3.1 31 December 2020 2.8 3.0 2.8 3.0 2.9 2.9 2.7 2.7 2.6 2.7 2.5 • EUR 91.7 million excluding IFRS 16 2.4 2.2 2.4 1.6 • Acquisitions 2) during 2020 impacts net debt negatively • Unutilized cred
Slide 16: Cash flow and CAPEX
Financials Cash flow and CAPEX EUR million • Operating cash flow of EUR 19.9 million 22.9 o Reduction of working capital of EUR 15.7 million, 19.9 following normal seasonality 19.4 o Cash flow negatively impacted by payment of taxes deferred from previous periods and tax related to divestment of rea
Slide 17: Financial performance
Financial performance Long-term target 2020 • Mix of organic, incl. Greenfield projects, and M&A growth Revenue growth >10% 8% • 45% CAGR between 2012 and 2019, largely driven by acquisitions • Significant changes in raw material prices may impact the ability to achieve the target • Underlying EBITD
Slide 18: 5 year financial performance
5 year financial performance Strong growth and EBITDA improvement since 2016 500 16,0 % EUR million 450 14.0% 14,0 % 400 12.1% 12,0 % 350 10,0 % 300 250 8.1% 8,0 % 7.5% 462.6 429.9 200 380.7 5.9% 6,0 % 150 4,0 % 100 194.8 169.7 2,0 % 50 65.0 12.8 11.4 30.9 51.8 0 0,0 % 2016 2017 2018 2019 2020 Net s
Slide 19: Market overview and strategy
Fourth quarter and full year 2020 Market overview 1 and strategy
Slide 20: BEWI in brief
BEWI in brief International provider of packaging, components and insulation solutions Strategically integrated through the value chain • Diversified across segments, regions and end-markets • Resillient business model European footprint • 52 facilities, including 8 for recycling and 14 through mino
Slide 21: A wide selection of products
A wide selection of products Protecting people and goods for a better everyday Automotive components Food packaging Insulation: Roof systems Components: Lifebuoy Fourth quarter 2020 Components: Child seats and bike helmets 21
Slide 22: Continued focus on growth
Continued focus on growth A strong financial platform and pipeline of opportunities Ongoing organic initiatives Strong pipeline of M&A opportunities • Integration of acquired • Strengthen market positions companies, incl. cross-sales, synergies, optimising operations • Broaden product offering, in p
Slide 23: Annual recycling target of 60,000 tons to secure full circularity
Annual recycling target of 60,000 tons to secure full circularity Circular timeline 2020 2021 2022 Circular investments SEK ~100m Recycling SEK ~20-40m ~60kt 100% capacity more than any other company in the ~20kt to reach target capacity target circular plastics industry Rationale Means Closing the
Slide 24: Summary and outlook
Fourth quarter and full year 2020 Summary and 1 outlook
Slide 25: Outlook
Outlook • Volumes have remained solid, but the uncertainty related to the pandemic persists • Raw material prices continued to increase going into 2021 o Could positively impact the margins for segment RAW for Q121 o Potentially lead to dampened margins in downstream segments • For P&C segment, lowe
Slide 26: Well positioned for further growth
Well positioned for further growth • Solid operational performance • Significantly strengthened recycling capacity • Continued profitable growth • Strong cash position • Continued focus on growth in line with strategic priorities Fourth quarter 2020 26
Slide 27: Key investment highlights
• Attractive markets growing on the back of global Key investment megatrends highlights • Integrated, flexible and circular value chain ensuring sustainable profitability • Earnings resilience from diversified revenue base • Successful M&A compounder with quality prospects in sight • Timely focus on
Slide 28: Next event
Next event First quarter 2021 results 21 May 2021