Viscofan, S.a. · BME:VIS
Viscofan — 9M16 Earnings Presentation
15 slides from Viscofan's earnings presentation, Oct 27, 2016
Slide 1: Results 9M16
Viscpf fan sing company 08 Results | 9M16 2016, 27" October
Slide 2: Net profit growth and like-for-like EBITDA margin improvement
% Net profit growth and like-for-like EBITDA margin improvement p/ d ‘ = ...despite lower revenue. 9M16"°°°P Selected financial data (MM €) % y-o- % y-o- 3Q16 %y-o-y Like onto 9M16 % y-o-y Like peti Revenue 180.5 -2.5% -11% 537.4 -3.3% -0.7% Recurring? EBITDA 48.8 -3.0% 120 149.4 -41% 40.8% oY Recur
Slide 3: Decline on revenue mainly driven by forex weakness and lower energy prices
Decline on revenue mainly driven by forex weakness and lower energy prices... Group Revenue. Growth contribution (MM€) -3.3% 9M16 vs. 9M15 v 555.9 -EVIMM 9 bewwwezeeseneee : iM -€3.6MM -€13.8MM Like-for-like 7 Co-generation Forex casings casings 9M15 9m16 1 For comparative purposes, like-for-like gr
Slide 4: Group revenue. Quarterly growth contribution
Group revenue. Quarterly growth contribution : i +0.3 p.p. +0. p.p. i -0.5 pp. -0.2 pp. i ! i : -1.3 pp. : 555.9 -2.7 pp. ° "3.6 pp. i iQ 20 30 , 10 20 39, 19 20 30 ,; REIS Like-for-like’ Co-generation Forex casings i casings i L Y L T J L 7 J : “0.2 p.p. -0.6 p.p. -2.5 pp. i 9M15 9M16 1 For compara
Slide 5: Good performance in North America and Europe and Asia contrast against Brazil
Good performance in North America and Europe and Asia contrast against the weakness of Brazil’s backdrop. ( - Revenue breakdown by geographical area’ (MM €) | GROUP -3.3% A vs. 9M15 Like-for-like2 ) EUROPE AND ASIA NORTH AMERICA LATAM 30.2% i ‘ <G t Dison id vs.9M15__ Like-for-like? vs.9M15 ___Like-
Slide 6: Progressive recovering of sales in casings
S) Progressive recovering of sales in casings. 9M16~ Casings sales (MM €) 178.6 —_ 173. 172.3 173.6 2 Viscofan Group revenue (MM €) 169.9 72.6 ~~) 164.1 170.8 - 1.6% vs.3Q15 1Q 2Q 3Q 4Q Co-generation revenue (MM €) | i; 103 12.3 i ie A vs. vs 300) 40 Visc)fan taal 183.1 1851 1 184.9 180.0 ee (174.4
Slide 7: Operational strength and commercial discipline with expansion and production improvement plans
Operational strength and commercial discipline coupled with expansion and production improvement plans. 9M16~ 9M16 recurring |. % Year-on-year change +2.9% +0.8 % -0.7% Aly 4.6% “ 1.8% Revenue Revenue Cost of Personnel Opex EBITDA EBITDA D&A EBIT like-for- consumption? expenses Recurring Recurring l
Slide 8: Underlying improvement that can't be seen in an environment of weak forex
Visc)fan Underlying improvement that can’t be seen in an environment of weak forex. EBITDA 9M16. Growth contribution (MME) +1.2MM (1588 ) eS | -3.6MM -76MM Like-for-like’ Non- Forex Casings recurring 2 -6.3% : 9M16 vs. 9M15 9M15 9M16 1 For comparative purposes, like-for-like growth excludes the impa
Slide 9: Impressive improvement against an atypical year of weak top line performance
Visc)fan Impressive improvement against an atypical year of weak top line performance. Quarterly recurring’ EBITDA margin (%) O 2015 @ 2016 2016 Like-for-like? 29.8% 291% vs. 3Q15 ———— 28.6% 28.3% 28.4% — 278% 28.2% 28.2% 272% | 27.0% 1Q 2Q 3Q 4Q 1 Recurring figures exclude: 1) In 3Q16, management c
Slide 10: Slight like-for-like growth in a quarter with plastics plant start-up
... leading to a slight like-for-like growth in a quarter characterized by the start-up of the plastics plant in Spain and the collagen investment in Uruguay. Quarterly recurring’ EBITDA ( MM€) | O 2015 @ 2016 2016 Like-for-like? 55.0 54.0 ——) 51.5 3Q16. Start- up expenses €0.6MM -4.7% -4.6% vs.1Q15
Slide 11: Lower financial expenses, positive exchange differences and better tax rate
Lower financial expenses, positive exchange differences and better tax rate contribute to positive Net profit performance. 9M16. EBIT — Net profit bridge (MM €) 112.3 +4.6% -01 Recurring 88.1 -241 +0.8 23.3% Le || -27 -3.8 Financial Financial Exchange 9M15 9M16 income expenses differences O19M15 © 9
Slide 12: Solid operating cash flow to finance expansion, remunerate shareholders and reduce debt
Solid operating cash flow to finance operations expansion, remunerate shareholders and to reduce debt. CAPEX (MM €) Net bank debt evolution’ (MM €) 56.9 +66.0% vs. 9M15 0.9 M15 9M16 — -75 Net bank Net cash debt position sep’'15 sep'16 1Net bank debt = Long and short financial debt - cash and cash eq
Slide 13: Vector's acquisition drives our strategy to be the casings benchmark
y Vector’s acquisition drives up our strategy to be the benchmark in erie the casings sector. Plastics footprint. Viscofan and Vector \ VECTOR Y Plastic casings. Flexible materials and packaging innovative solutions Y Footprint. Plants in the USA and Belgium v Extensive product and customer portfoli
Slide 14: To wrap-up
To wrap-up v¥ North America, Europe and Asia showed positive like-for-like revenue growth compared with the sharp decline in volumes and currency in Latam. ¥ The combination of cost control and operational improvement projects shore up our positioning to take advantage of future expected growth in c
Slide 15: Disclaimer
Disclaimer This document may include statements about intentions, expectations or forecasts of the Company additional to the mandatory financial reporting whose sole purpose is to provide information more accurately about the perspectives of future behaviours. Such intentions, expectations or foreca