Verallia SAS · EURONEXT:VRLA
Verallia SAS — Verallia — 9M 2021 Earnings Presentation
25 slides from Verallia SAS's earnings presentation, Oct 28, 2021
Slide 1: 9M 2021 Results
28 October 9M 2021 RESULTS 2021
Slide 2: Today's Agenda
TODAY’S AGENDA 1 INTRODUCTION 2 KEY HIGHLIGHTS 3 9M 2021 FINANCIAL RESULTS 4 CONCLUSION 2 28 October 2021
Slide 3: Introduction
1 INTRODUCTION Michel GIANNUZZI Chairman and CEO
Slide 4: A Global Leader in Glass Packaging
1 INTRODUCTION A GLOBAL LEADER IN GLASS PACKAGING 2021 OUTLOOK Net Sales: ca €2.6bn DIVERSIFIED AND BALANCED Volumes back to 2019 levels END-MARKETS Adjusted EBITDA: ca €675m 2020 Glass packaging(1) sales split by end-market 1 10,000 11 employees countries 16 N° Food in Europe(2) billion 90% of 2020
Slide 5: Key Highlights
2 KEY HIGHLIGHTS Michel GIANNUZZI Chairman and CEO
Slide 6: Our Beliefs Drive the Way We Do Business
2 KEY HIGHLIGHTS OUR BELIEFS DRIVE THE WAY WE DO BUSINESS Our Corporate We deliver We are lean, Operational Alignment and We invest in this purpose drives sustainable and agile and excellence and coherence of all company as a our strategy and profitable growth decentralized, value creation stakehold
Slide 7: CO2 Emissions Reduction
2 KEY HIGHLIGHTS CO2 EMISSIONS REDUCTION VALIDATED STATUS PLAN VALIDATED TO OUR NEW AMBITION TO LIMIT GLOBAL WARMING LIMIT GLOBAL WARMING Jan 21 WELL BELOW 2°C Oct 21 ONLY TO 1.5°C New objectives Our commitment: -27.5% in 2030 reduction in 2030 of scope 1 & 2 emissions(1) in absolute value from base
Slide 8: Our Strategic Priorities
2 KEY HIGHLIGHTS OUR 4 STRATEGIC PRIORITIES 1 2 Pursue disciplined growth Increase operational (incl. strategic investments) VERALLIA excellence INDUSTRIAL MANAGEMENT 2.0 Anchor a strong Invest wisely for a entrepreneurial 3 sustainable future culture 4 For a profitable, inclusive and durable growth
Slide 9: Mid Term Financial Guidance (2022-2023-2024)
2 KEY HIGHLIGHTS MID TERM FINANCIAL GUIDANCE (2022-2023-2024) 2022-2023-2024 ASSUMPTIONS ORGANIC SALES From ca half volume and half price/mix +4-6% CAGR GROWTH(1) Moderate inflation in raw material and energy costs after 2022 ADJ. EBITDA Positive price/cost spread 28%-30% in 2024 MARGIN Net PAP > 2%
Slide 10: Key Financial Highlights for the First 9 Months 2021
2 KEY HIGHLIGHTS KEY FINANCIAL HIGHLIGHTS FOR THE FIRST 9 MONTHS 2021 Revenue 1 – 9M 2021: +3.4% to €2,022 million and +5.8% organic growth(1) – Q3 2021: +2.0% to €695 million and +2.1% organic growth(1) Adjusted EBITDA 2 – €528 million over 9M 2021 (+11.2% compared to 9M 2020) – Margin at 26.1% com
Slide 11: 9M 2021 Financial Results
3 9M 2021 FINANCIAL RESULTS Nathalie DELBREUVE CFO
Slide 12: Organic Growth in Q3 Despite High Comparison Basis
3 9M 2021 FINANCIAL RESULTS ORGANIC GROWTH IN Q3 DESPITE HIGH COMPARISON BASIS REPORTED REVENUE (IN €M) Reported Growth: +3.4% Volumes Organic Growth(1): +5.8% – Growing volumes over 9M despite very strong comparative basis of Q3 2020 (46.1) – Back to 2019 levels (pre-Covid) 78.3 2,022 Price / m
Slide 13: Sustained Adj. EBITDA Growth & Margin Improvement
3 9M 2021 FINANCIAL RESULTS LEADING TO SUSTAINED ADJ. EBITDA GROWTH & MARGIN IMPROVEMENT ADJUSTED EBITDA (IN €M AND % OF SALES) Activity / Operating leverage – Positive volume impact over 9M Reported Growth: +11.2% Organic Growth(1): +14.6% 26.1% – Lower than last year destocking impact thanks to
Slide 14: Leverage < 2x
3 9M 2021 FINANCIAL RESULTS LEVERAGE < 2X In € million 30/09/2021 31/12/2020 30/09/2020 Net Debt 1,213.4 1,278.6 1,358.5 LTM Adjusted EBITDA 678.8 625.7 611.8 Net Debt / LTM Adjusted EBITDA 1.8x 2.1x 2.2x Net debt at €1,213 million including rights-of-use for €49.6 million September 2021 LTM Adj
Slide 15: Diversification of Funding and Lengthening of Maturities
3 9M 2021 FINANCIAL RESULTS DIVERSIFICATION OF FUNDING AND LENGHTENING OF MATURITIES NOMINAL AMOUNT OR In € million MATURITY NOMINAL RATE 30 Sept. 2021 MAX. AMOUNT DRAWABLE Sustainability-Linked Bond (SLB)(1) 500.0 May 2028 1.625% 500.1 Term Loan A (TLA)(1) 1,000.0 October 2024 Euribor+1.25% 995.7 R
Slide 16: Conclusion
4 CONCLUSION Michel GIANNUZZI Chairman and CEO
Slide 17: Our Winning Strategy for Profitable, Inclusive and Durable Growth
4 CONCLUSION OUR WINNING STRATEGY FOR A PROFITABLE, INCLUSIVE AND DURABLE GROWTH 2 Increase Pursue disciplined growth 1 (incl. strategic investments) VERALLIA INDUSTRIAL operational excellence 2024 ADJ. EBITDA 2022-2023-2024 ORGANIC MANAGEMENT MARGIN 2.0 SALES GROWTH 28% - 30% +4-6% CAGR PLANET Envi
Slide 18: Appendices
APPENDICES
Slide 19: Our Purpose: Re-imagine Glass
APPENDICES OUR PURPOSE Re-imagine glass for a sustainable future ESG more than ever at the heart of Verallia's purpose and strategy 19 28 October 2021
Slide 20: Glossary
APPENDICES 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 aver
Slide 21: Reconciliation of Operating Profit to Adjusted EBITDA
APPENDICES RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA In €m 9M 2021 9M 2020 Operating profit 317.0 238.4 Depreciation, amortisation and impairment (i) 207.4 207.6 Restructuring costs (ii) (1.8) 19.8 IAS 29 Hyperinflation (Argentina) (iii) (2.1) 1.7 Management share ownership plan and asso
Slide 22: IAS 29: Hyperinflation in Argentina
APPENDICES 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,
Slide 23: Latest Sustainability Ratings and Partnerships
APPENDICES LATEST SUSTAINABILITY RATINGS AND PARTNERSHIPS A- Top 5% Score: 67/100 Since 2020 Since 2013 “COMMITTED” Since 2020 status Since 2020 Since 2016 Low risk Since 2020 Since 2016 23 28 October 2021
Slide 24: Verallia ESG Goals
APPENDICES VERALLIA ESG GOALS OUR PURPOSE: RE-IMAGINE GLASS FOR A SUSTAINABLE FUTURE OUR ALIGNMENT OUR PERFORMANCE 2025 2018 2019 2020 COMMITMENTS UN SDGS GOALS INDICATORS TARGETS % of domestic used glass collected in 76% 76% N/A Enable the increase cullet collection by 7 pts 83% Verallia’s coun
Slide 25: Disclaimer
DISCLAIMER Certain information included in this presentation does not constitute historical data but constitutes forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and f