Viscofan, S.a. · BME:VIS
Viscofan — 9M 2020 Earnings Presentation
18 slides from Viscofan's earnings presentation, Oct 29, 2020
Slide 1: January-September 2020 results
January-September 2020 29 October 2020 January – September 2020 results 1
Slide 2: 9M20 results. Highlights
9M20 results. Highlights +7.4% Revenue grew in 9M20 to €671.9 million, +7.2% in like-for-like terms. +18.0% EBITDA grew in 9M20 to €169.0 million, +23.9% in like-for-like terms. EBITDA margin rose to 25.1%, +3.6 p.p. in like-for-like terms. +2.2 p.p. +20.9% Net profit in 9M20 grew to €87.9 million.
Slide 3: Higher revenue driven by volume growth, price mix improvement and Nitta Casings contribution
Higher revenue driven by volume growth, price mix improvement and Nitta Casings contribution against an adverse forex environment REVENUE 9M20. Growth contribution (€ million) +7.4% 9M20 vs. 9M19 +23.0MN -22.2MN +50.1MN -4.8MN 671.9 625.8 +8.0 p.p. -0.8 p.p. +3.7 p.p. -3.5 p.p. Like-for-like 1 Like-
Slide 4: Growth in all reporting areas
Growth in all reporting areas REVENUE 9M20. Breakdown by geographical area1 (€ million) +7.4% +7.2% GROUP vs. 9M19 Like-for-like2 53.9% 31.5% EUROPE AND NORTH LATAM ASICA PACIFIC AMERICA 14.6% +3.7% +4.2% +16.1% +3.9% +4.1% +25.0% vs. 9M19 Like-for-like2 vs. 9M19 Like-for-like2 vs. 9M19 Like-for-lik
Slide 5: All-time high in casings quarterly revenue, decline in co-generation revenue
All-time high in casings quarterly revenue… … in contrast to the decline in co-generation revenue REVENUE. Viscofan Group (€ million) CASINGS SALES (€ million) 215.7 216.3 224.9 224.9 223.9 211.7 211.9 222.1 204.4 215.9 197.0 208.6 191.2 201.2 +5.8% vs. 3Q19 1Q 2Q 3Q 4Q +4.1% CO-GENERATION REVENUE (
Slide 6: Volume strength in all technologies and commercial discipline maintained in third quarter
Volume strength in all technologies and commercial discipline are maintained in the third quarter REVENUE. Quarterly growth contribution 3Q20 +4.1% +6.4% vs. 3Q19 Like-for-like1 +9.1 p.p. +7.9p.p. +7.0 p.p. +3.6 p.p. +3.1 p.p. +4.4 p.p. +0.2 p.p. -1.0p.p. -0.4 p.p. -1.5p.p. -3.4 p.p. -6.7 p.p. Like-
Slide 7: Operating results boosted by revenue growth, high production capacity, efficiencies and savings
Operating results are boosted by revenue growth, high production capacity, efficiencies and savings from the new technology P&L 9M20. Year-on-year change +27.8% +3.7% excluding Savings and production efficiencies acquired companies +23.9% Decline in the auxiliary raw materials cost Increase
Slide 8: Double digit growth in EBITDA
Double digit growth in EBITDA EBITDA 9M20. Growth contribution (€ million) +18.0% 9M20 vs. 9M19 +34.9MN +0.3MN -11.7 MN 169.0 +2.3MN 143.2 Non-recurring 145.5 +23.9 p.p. +0.2 p.p. -8.0 p.p. (Strike in the US) Change in the like-for-like 1 Forex scope of consolidation +16.1% 9M19 9M19 9M20 reported r
Slide 9: Like-for-like growth in Q3 offsets the strong forex erosion
Like-for-like growth in Q3 offsets the strong forex erosion Recurring EBITDA1. Quarterly growth contribution 3Q20 +15.6% recurring +31.9p.p. vs. 3Q19 +26.7 p.p. +12.2 p.p. +0.5p.p. +0.4p.p. +0.6 p.p. -0.3p.p. -7.9 p.p. -16.0 p.p. Like-for-like 1 Change in the scope of casings consolidation Forex 1Q
Slide 10: Improving the profitability of our operations
Improving the profitability of our operations RECURRING1 EBITDA MARGIN (In %) +1.8p.p. +3.6p.p. +2.6p.p. +5.7p.p. vs. 9M19 Like-for-like 2 2020 Like-for-like 2 vs. 3Q19 Like-for-like 2 2020 29.2% 2019 27.5% 26.9% 25.9% 26.1% 25.1% 23.8% 23.3% 23.4% 23.5% 23.5% 23.4% 22.8% 9M19 9M20 9M20 1Q 2Q 3Q 4Q
Slide 11: Double-digit growth in Net Profit even with higher tax rate
Double-digit growth in Net Profit even with higher tax rate EBIT to NET PROFIT. REPORTED (€ million) Financial result. (€ million) 2020 2019 Million € 9M20 9M19 % y-o-y 2.7 1.5 0.6 Reported EBIT +114.7 +89.7 +27.8% -0.4 -0.3 -0.5 1Q 2Q 3Q Financial result +1.9 +1.6 +12.8% Taxes -28.7 -18.7 +53.4% Ef
Slide 12: Strong cash flow generation and debt reduction
Strongh cash flow generation and debt reduction NET BANK DEBT1 (€ million) -65.3% Healthy financial position vs. Dec´19 2 comparable Cash increases to €79.3 million at 42.5 September 2020 from €51.4 million at December 2019 Long-term gross bank debt represents 14.7 56% of total gross bank debt 8
Slide 13: Facing challenges to carry out ambitious investment projects
Facing challenges to carry out ambitious investment projects CAPEX 9M20 (€ million) -26.8% 50.4% executed of the capex planned for vs. 9M19 2 comparable 54 the whole year Mobility restrictions are delaying the 37.1 execution of investment projects 27.2 Sustainability projects represent 26% of
Slide 14: To wrap up
To wrap up • Covid-19: The commitment of the more than 4,900 people who make up Viscofan, our solid production model, our global footprint and product portfolio allow us to maintain an essential activity such as the production of casings for the food industry. • Growth in the main financial figures
Slide 15: Appendix
Appendix January – September 2020 results 15
Slide 16: Appendix. Main financial figures
Appendix. Main financial figures Like-for-like 1 Like-for-like 1 € million 9M20 % y-o-y % y-o-y 3Q20 % y-o-y % y-o-y Revenue 671.9 +7.4% +7.2% 224.9 +4.1% +6.4% EBITDA 169.0 +18.0% +23.9% 58.7 +16.6% +31.9% EBITDA margin 25.1% +2.2 p.p. +3.6p.p. 26.1% +2.8 p.p. +5.7p.p. Operating profit 114.7 +27.8%
Slide 17: Appendix. Alternative Performance Measures
Appendix. Alternative Performance Measures The Alternative Performance Measures included in this report are as follows: • The EBITDA, or operating profit before depreciation and • Net bank debt: This is calculated as non-current borrowings amortisation, is calculated excluding depreciation and plus
Slide 18: Appendix. Disclaimer
Appendix. Disclaimer This document may include statements This circumstance must be taken into account about intentions, expectations or forecasts mainly for all persons or entities that may have to of the Company additional to the take decision, develop or spread opinions relative mandatory financi