Bewi Asa · OSL:BEWI
Bewi Asa — Q1 2022 Earnings Presentation
23 slides from Bewi Asa's earnings presentation, May 20, 2022
Slide 1: Results for the first quarter of 2022
Results for the first quarter of 2022 CEO Christian Bekken, CFO Marie Danielsson 20 May 2022
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
First quarter of 2022 Highlights 1
Slide 4: Record-high EBITDA following solid demand
Record-high EBITDA following solid demand Integrated business model provide robust quarterly results for the group • High raw material prices, combined with solid demand for EPS beads maintains a strong GAP • Downstream segments manage to adjust prices to compensate for high cost level • Positive vo
Slide 5: Financial highlights for the first quarter of 2022
Financial highlights for the first quarter of 2022 Record-high results driven by solid demand Net sales (EUR million) Net sales of EUR 230.2 million, 55% growth BEWI Jackon • Increased Styrene prices, EPS prices following due to high demand 108.3 combined with limited market supply • 37% organic gro
Slide 6: Acquisition of Trondhjems Eskefabrikk
Acquisition of Trondhjems Eskefabrikk Strengthening product portfolio within paper packaging • Acquisition of 100% of Norwegian paper packaging company • Manufacturer of fibre-based packaging products, mainly for the food industry o A significant share of raw materials used is recycled fibres • Reve
Slide 7: Acquisition to become 100% owner of Jablite
Acquisition to become 100% owner of Jablite Leading UK based insulation and packaging company, GBP ~40 million revenues • Agreement to acquire remaining 51% of UK based packaging and Key value proposition insulation company Jablite Group • BEWI acquired 49% in 2020 • Provide BEWI with a leading mark
Slide 8: Key acquisitions confirming strategy
Key acqusitions confirming strategy Year-to-date acqusitions: Company Region Key offering Strategic rationale Status EUR ~61 million Net sales Packaging and In progress, pending Jackon Holding Europe Strengthening market positions Insulation regulatory approvals Trondhjems Paper Strengthening produc
Slide 9: Financials
First quarter of 2022 Financials 1
Slide 10: Financial overview
Financial overview Integrated business model provides stable EBITDA margin on group level Net sales EUR 230.2 million Adj. EBITDA EUR 34.4 million (14.9%) 5% 3% 26% 39% EUR 148.9 million 2% 17% EUR 16.7 million (11.2%) 41% 27% 57% 27% 54% 30% 26% 30% 17% Q1 2021 Q1 2022 Q1 2021 Q1 2022 RAW Insulatio
Slide 11: RAW
RAW Continued strong results following solid demand First quarter 2022 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 100.4 million, up 57% o Increase explained by sales prices 100 20% 19.3 % 31.9 o Volumes in line with the first quarter last year 15% 19.8 • Adj. EBITDA increase to
Slide 12: Packaging & Components
Packaging & Components Higher prices following continued increase in raw material prices First quarter 2022 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 91.7 million, up 47% 20% o 22% organic growth, mainly explained by increased sales prices in all regions to compensate for incre
Slide 13: Insulation
Insulation Positive volume development for the Benelux region First quarter 2022 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 62.4 million, up by 53% o Organic growth of 34% driven by higher volumes in Benelux and higher sales prices in all regions 14% 60 11.7 % to compensate for
Slide 14: Circular
Circular Improved volumes, increased prices and strengthened EBITDA First quarter 2022 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 11.4 million, up by 317% o Organic growth of 126% explained by higher volumes and increased sales prices, following 15% significant increase in the v
Slide 15: Consolidated P&L
Financials Consolidated P&L Amounts in EUR million Q1 2022 Q1 2021 2021 First quarter of 2022 Net Sales 230.2 148.9 748.2 • Net sales of 230.2 million, up by 55% Total operating income 230.2 148.9 748.2 o 37% organic growth from higher prices and increased volumes from Insulation in the Benelux, whe
Slide 16: Capital structure
Financials Capital structure Leverage: Net debt/ EBITDA ratio(1) • Net debt EUR 214 million/EUR 139 million EUR million • Unutilized credit facility of EUR 80 million • Significantly improved ROCE and stable leverage 2.8 3.0 2.9 2.9 2.4 2.7 1.5 2.5 1.8 2.6 1.5 2.2 1.3 1.9 1.2 1.7 1.2 1.6 Q120 Q220 Q
Slide 17: Strong cash flow, maintenance CAPEX slightly below 2.5% of sales
Financials Strong Cash flow, maintenance CAPEX slighly below 2.5% of sales EUR million First quarter 2022 • Operating cash flow negative EUR 14.2 o Increase in working capital of EUR 40 million (9.5) following seasonality, but also higher prices impacting value of inventory and accounts receivables
Slide 18: Summary and outlook
First quarter of 2022 Summary and 1 outlook
Slide 19: M&A priorities going forward
M&A priorities going forward Strategic rationale Expanding circular business model Broadening product offering with complimentary materials: • Packaging: Paper/ fiber-based • Insulation: EPS and other materials Strengthening market positions Geographic expansion Continued strong pipeline of attracti
Slide 20: Outlook
Outlook Experience continued solid demand, expecting EPS prices to remain on high levels • Experience solid or strong demand in key markets • Well-equipped to meet industrywide challenges in value chain o Shortage of electronic components o Delay in logistics & transport o General cost inflation • R
Slide 21: Set to continue growth journey next five years
Set to continue growth journey next five years >2x ~20% <2.5x 30-50% Adj. EBITDA ROCE1 NIBD/Adj. EBITDA Dividend Through organic growth Increase towards 20% Leverage target Of underlying net profit and acquisitions by 2026 unchanged going forward First quarter of 2022 21
Slide 22: Next event
Next event Second quarter and first half of 2022 18 August 2022
Slide 23: Minority interests
Minority interests Positive contribution from shares in associated companies TOTAL • Shares in associated companies are consolidated into BEWI’s accounts with the value of the owned interest of net profit Production sites 16 Owned interest 34-49% • Consolidated as a net in one line within EBITDA, “S