Bewi Asa · OSL:BEWI
Bewi Asa — Q2 2021 Earnings Presentation
23 slides from Bewi Asa's earnings presentation, Aug 11, 2021
Slide 1: Results for the second quarter of 2021
Results for the second quarter of 2021 CEO Christian Bekken, CFO Marie Danielsson 11 August 2021
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
Second quarter of 2021 Highlights 1
Slide 4: Record-high results driven by strong demand
Record-high results driven by strong demand • Higher volumes and prices in all segments o Strong demand EUR million o Well-performing operations o Positive contribution from acquired companies and minority interests • Ramped-up commercial recycling volumes in Portugal 599 • Acquired Danish paper pac
Slide 5: Financial highlights
Financial highlights Record-high results driven by strong demand Second quarter 2021 First half 2021 • Net sales up by 88%, to EUR 198.1 million • Sales growth of 65% from first half of 2020, to EUR 347.0 million o 27% organic growth from higher volumes and price increase in all o 60% organic growth
Slide 6: Earnings stability from revenue diversification
Earnings stability from revenue diversification A competitive advantage First half 2021 financials Diversified across countries Diversified across segments Diversified across end-markets 1) Automotive Norway Other 5% 20 % 25 % Food packaging RAW 34 % 22 % Packaging & Other packaging Components and c
Slide 7: Initiated refinancing to fuel growth
Initiated refinancing to fuel growth Establishing a Sustainability Finance Framework • Establishing a new framework of up to EUR 250 million • Refinancing to fuel growth and pursue attractive opportunities • Good progress on ongoing organic growth initiatives • Strong pipeline of M&A opportunities,
Slide 8: Organic growth initiatives progressing as planned
Organic growth initiatives progressing as planned Selected greenfield projects • Establishing state-of-the art packaging hub @ Jøsnøya o Entered a conditional long-term lease agreement with KMC Properties ASA and started pre-phase project • Fish box facility ready for production @ Senja o Long-term
Slide 9: Acquisition of IZOBLOK
Acquisition of IZOBLOK - the market leader in Europe for automotive EPP components • Expect growth in use of EPP components • Great synergy potential related to BEWI’s EPP business o Sourcing of raw materials o EPP production capacity o Sales synergies/ vertical integration • Acquired 54.21% of shar
Slide 10: Financials
Second quarter of 2021 Financials 1
Slide 11: Financial overview
Financial overview EUR million ~33% ~36% ~28% RAW Packaging & Components Insulation 31.7 65.5 58.2 16.0 69.6 15.9 9.1 7.8 7.1 35.3 7.5 39 30.3 1.3 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2020 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Gross sales Adj. EBITDA Gross sales Adj. EBITDA Gross sal
Slide 12: RAW
RAW Improved volumes and EBITDA following strong demand Second quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 101.4 million, up 118% 15.7 % 16% o Increase explained by higher volumes and sales prices 100 11% • Adj. EBITDA increase to EUR 15.9 million (1.3), a margin of
Slide 13: Packaging & Components
Packaging & Components Volume increase in most regions Second quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 65.5 million, up 86% o 28% organic growth from volume increase in all regions, except Norway 80 25% 21.3 % 20% o Sales prices adjusted upwards following increase
Slide 14: Insulation
Insulation Strong demand resulting in improved volumes in all regions Second quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 58.2 million, up by 49% o Organic growth of 29% from volume increase in all regions, and increased sales prices following 25% 60 higher raw materi
Slide 15: 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 • Consolidated as a net in one line within EBITDA, “Share of income Owned i
Slide 16: Consolidated P&L
Financials Consolidated P&L Amounts in EUR million Q2 2021 Q2 2020 YTD 2021 YTD 2020 2020 Second quarter of 2021 Net Sales 198.1 105.1 347.0 210.2 462.6 • Net sales up by 89% Total operating income 198.1 105.1 347.0 210.2 462.6 o 60% organic growth from improved volumes & prices in all segments • In
Slide 17: Capital structure
Financials Capital structure Leverage: Net debt/ EBITDA ratio(1) • Net debt EUR 185.0 million on 30 June 2021 EUR million o EUR 106.1 million excluding IFRS 16 • Leverage significantly decreased o Improved EBITDA o Completion of NOK 200 million private placement primarily financing acquisition of IZ
Slide 18: Establishing a new Sustainability Finance Framework
Establishing a new Sustainability Finance Framework • Initiated written procedure to refinance two existing bond loans before maturity o 2022 loan up to EUR 100 million, of which EUR 75 used o 2023 loan up to EUR 115 million, of which EUR 65 used • Intend to issue new senior unsecured sustainability
Slide 19: Cash flow and CAPEX
Financials Cash flow and CAPEX EUR million • Operating cash flow of EUR 1.4 million o Increase in working capital of EUR 21.1 million, following seasonality, as well as higher accounts receivables due to price adjustments • Cash flow for investments EUR 15.9 million in Q221 o CAPEX of EUR 8.5 millio
Slide 20: Summary and outlook
Second quarter of 2021 Summary and 1 outlook
Slide 21: Outlook
Outlook Volume development remains solid • Experience strong demand in most markets, volume development remained solid into Q3 • Styrene raw material prices seem to be stabilising • Demand for EPS-based products remains high, expected to continue to be strong for 2H 2021 • Average EPS contract price
Slide 22: Well positioned for further growth
Well positioned for further growth • Solid operational performance • A proven business model and delivery capacity • Strong underlying demand • Robust financial position • Continued growth in line with strategic priorities Second quarter 2021 22
Slide 23: Next events
Next events CMD late September Date and place to be communicated shortly Third quarter 2021 3 November 2021