Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — H1 2019 Earnings Presentation
33 slides from Anora Group Oyj's earnings presentation, Aug 15, 2019
Slide 1: H1 results presentation
15 AUGUST 2019 H1 results presentation CEO PEKKA TENNILÄ CFO NIKLAS NYLANDER
Slide 2: Agenda
Agenda 1. HIGHLIGHTS 2. MARKET 3. BUSINESS & SEGMENTS 4. FINANCIALS 5. STRATEGY Leading Nordic alcoholic beverage brand 6. Q&A company operating in the wines and spirits markets in the Nordic countries, Estonia and Latvia. We also have production in Cognac, France. 15.8.2019 2
Slide 3: Leading Nordic alcoholic beverage brand house
Leading Nordic alcoholic beverage brand house WE OPERATE ON THE STABLE AND PROFITABLE NORDIC MARKETS Exports to approx. 30 countries Head office Production Sales office Distillery Warehouse 15.8.2019 3
Slide 4: Good net sales growth in first half, initiatives to improve profitability in progress
Good net sales growth in first half, initiatives to improve profitability in progress HIGHLIGHTS FROM H1 19 Reported net sales Comparable EBITDA Comparable EBITDA margin 165.0 (160.6) 13.7 (13.8) 8.3% (8.6%) EUR million EUR million Net sales Comparable EBITDA Comparable EBITDA margin grew by 3.5% wi
Slide 5: Market development
Market development APPROXIMATELY TWO THIRDS OF CONSUMER PRODUCT SALES COME FROM STATE RETAIL MONOPOLIES Combined spirits and wine sales volume development in the state retail monopolies Change compared to • Nordic spirits and wine market in total – volumes in the three retail H1 19 H1 18 H1 17 2018
Slide 6: Net sales highlights
Net sales highlights JANUARY–JUNE 2019 • Reported net sales grew by 2.7% to EUR 165.0 (160.6) million • Net sales of beverages in constant currencies were 0.7% • Continued headwind from SEK, in constant currencies net sales below last year’s level 3.5% above last year’s level • Declining monopoly vo
Slide 7: Finland & Exports
Finland & Exports JANUARY–JUNE 2019 The Finland & Exports segment comprises the import, sale and marketing of wine and spirits, and other beverages in Finland and the Baltics, as well as exports and travel retail. Highlights Key financials Product launches & events • Net sales were 59.6 (62.5) milli
Slide 8: Scandinavia
Scandinavia JANUARY–JUNE 2019 The Scandinavia segment comprises the import, sale and marketing of wine and spirits, and other beverages in Sweden, Norway and Denmark. Highlights Key financials, MEUR Product launches & events • Reported net sales were EUR 50.7 (49.9) 25 2,5 million, up by 1.6% • Head
Slide 9: Altia Industrial
Altia Industrial JANUARY–JUNE 2019 The Altia Industrial segment comprises Koskenkorva plant operations, starch, feed component and technical ethanol businesses, as well as contract manufacturing services at Rajamäki. It also includes supply chain operations, i.e. production operations in different c
Slide 10: The spirit of exploration
THE SPIRIT OF EXPLORATION LARSEN ALTIA 15.8.2019 10
Slide 11: Corporate Responsibility is an integral part of our business
Corporate Responsibility is an integral part of our business LET’S DRINK BETTER – SUPPORT THE DEVELOPMENT OF A MODERN RESPONSIBLE NORDIC DRINKING CULTURE Highlights H1 2019 • Acknowledged by inclusion on Sitra’s most interesting companies in the circular economy • First multi-chaneled media campaign
Slide 12: Financials
Financials CFO NIKLAS NYLANDER
Slide 13: Barley cost, fx rates and declining volumes have negatively affected profitability
Barley cost, fx rates and declining volumes in all monopolies have negatively affected profitability development SEASONALITY AFFECTS NET SALES AND PROFITABILITY • Comparable EBITDA was EUR 13.7 (13.8) million, excluding IFRS 16 impact EUR 11.7 million • Comparable EBITDA margin was 8.3% (8.6%), excl
Slide 14: Comparable EBITDA by segment
Comparable EBITDA by segment SOLID Q2 DEVELOPMENT DRIVEN BY TIMING OF EASTER, REVERSAL OF EXCISE TAX ACCRUAL AND SOME TIMING EFFECT BETWEEN THE QUARTERS IN INCOME AND EXPENSES Q2 19 H1 19 EUR million Q2 19 Q2 18 H1 19 H1 18 2018 excl. IFRS 16 excl. IFRS 16 Finland & Exports 5.3 5.2 4.6 8.2 8.1 8.0 1
Slide 15: Barley sourcing
Altia’s use of Barley sourcing barley in H1 19 reached 106 (108) million kilos Barley price development and Altia’s monthly volumes 2007-2019 (Jan-Jun) EUR/tn tn 250 30 000 25 000 200 20 000 150 15 000 100 10 000 50 5 000 2007 2009 2011 2013 2015 2017 2019 0 0 April April April April April October A
Slide 16: Financial position and balance sheet KPI's
Financial position and balance sheet KPI’s AS AT 30 JUNE Net cash flow from operating activities EUR -4.0 (-26.7) million Receivables sold EUR 61.0 (55.5) million Net debt EUR 81.3 /69.6 excl. IFRS 16 (77.4) million Gearing 59.1% / 50.6% excl. IFRS 16 (56.7%) Equity ratio 35.5% / 36.6% excl. IFRS 16
Slide 17: Financial position and balance sheet KPI's
Financial position and balance sheet KPI’s Net debt Gearing, % 86,8 Net debt, EUR million 82,9 81,3 77,4 58,4 % 58,1 % 59,1 % Net debt / Comparable 75,9 9,8 56,9 % 56,7 % EBITDA (rolling 12m) 11,6 51,6% 50,6% 77,0 excl. excl. Long-term excl. 69,6 IFRS 16 IFRS 16 IFRS 16 excl. 34,9 % target <2.5x 47,
Slide 18: Strategy
i Strategy CEO PEKKA TENNILA ; 4
Slide 19: Our financial targets aim towards stable shareholder returns
Our financial targets aim towards stable shareholder returns Net sales growth + 2% • Altia’s target is to achieve an annual net sales growth of 2 per cent over time (CAGR) CAGR Comparable EBITDA margin 15 % • Comparable EBITDA margin target to reach 15 per cent in the long-term Net debt / comparable
Slide 20: The core of our strategy is to deliver profitable growth
The core of our strategy is to deliver profitable growth Commercial battles 1 • Expand into new geographical markets Growth and Grow Nordic Core Brands • Innovate into new occasions and profitability Active brand consumer segments portfolio through the five • Grow wine segment with innovations and m
Slide 21: Strengthening the strategy execution
Strengthening the strategy execution FURTHER INITIATIVES IDENTIFIED TO REACH LONG-TERM NET SALES AND PROFITABILITY TARGETS Based on our Initiatives within: strategy to create • Revenue management profitable growth, Growth • Expansion in growing categories in Sweden and Norway we have identified • Ex
Slide 22: Guidance 2019
Guidance 2019 • The comparable EBITDA is expected to improve from the 2018 level. – The positive trend of Altia’s Nordic core brand portfolio is expected to continue. – Market development in Finland is expected to flatten out in comparison to 2018 and the markets in Sweden and Norway are expected to
Slide 23: Q&A and summary, next events
Q&A AND SUMMARY Good net sales growth in first half and second quarter Short and long- term initiatives to Guidance remains improve unchanged profitability Next events progressing Q3 Business Review 7 November 15.8.2019 23
Slide 24: Thank you
Thank you www.altiagroup.com IR: [email protected]
Slide 25: Appendices
Appendices 15.8.2019 25
Slide 26: Key ratios
Key ratios EUR million Q2 19 Q2 19 H1 19 H1 18 2018 Net sales, EUR million 91.2 87.1 165.0 160.6 357.3 Comparable EBITDA, EUR million 9.4 8.7 13.7 13.8 40.0 % of net sales 10.4 9.9 8.3 8.6 11.2 EBITDA, EUR million 9.2 8.3 13.5 9.3 34.0 Comparable operating result, EUR million 5.0 5.2 4.7 6.8 25.6 %
Slide 27: Consolidated income statement
Consolidated income statement EUR million Q2 19 Q2 18 H1 19 H1 18 2018 NET SALES 91.2 87.1 165.0 160.6 357.3 Other operating income 2.0 2.0 3.9 3.5 7.4 Materials and services -54.4 -49.1 -99.4 -91.0 -206.8 Employee benefit expenses -11.6 -12.9 -23.1 -27.1 -49.9 Other operating expenses -18.0 -18.8 -
Slide 28: Consolidated balance sheet
Consolidated balance sheet EUR million EQUITY AND LIABILITIES H1 19 H1 18 2018 EUR million H1 19 H1 18 2018 Equity attributable to owners of the parent ASSETS Share capital 60.5 60.5 60.5 Invested unrestricted equity fund 1.2 1.2 1.2 Non-current assets Fair value reserve 0.6 0.6 0.6 Goodwill 79.8 80
Slide 29: Cash flow from operations
Cash flow from operations EUR million Q2 19 Q2 18 H1 19 H1 18 2018 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 4.5 4.2 4.7 2.0 18.6 Adjustments Depreciation, amortisation and impairment 4.5 3.5 9.0 7.0 14.4 Share of profit in associates and income from investments in joint operations -0.
Slide 30: Quarterly net sales and comparable EBITDA by segment
Quarterly net sales and comparable EBITDA by segment Net sales by segment EUR million Q2 19 Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Finland & 34.7 25.0 39.5 31.8 35.4 27.1 40.7 31.4 35.7 26.0 41.1 31.6 33.9 27.3 Exports Scandinavia 29.0 21.7 42.8 25.0 27.4 22.5
Slide 31: Reconciliation of alternative performance measures and items affecting comparability
Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC) EUR million Q2 19 Q2 18 H1 19 H1 18 2018 Items affecting comparability Net gains or losses from business and assets disposals -0.1 0.4 -0.1 0.4 0.4 Cost for closure of business operations and restructuri
Slide 32: Shareholder structure
Shareholder structure AS AT 30 JUNE 2019 Number of Shareholders % of shares shares 1 Valtion Kehitysyhtiö Vake Oy 13 097 481 36.2 Non-financial corporations 2 Varma Mutual Pension Insurance Company 1 550 000 4.3 4% 3 Ilmarinen Mutual Pension Insurance Company 973 300 2.7 Rest of the Households world
Slide 33: Grocery trade offering
Grocery trade offering Koskenkorva Vichy sugarfree 15.8.2019 33