SIG Group AG · SIX:SIGN
SIG — SIG Combibloc Group — H1 2021 Earnings Presentation
19 slides from SIG's earnings presentation, Jul 27, 2021
Slide 1: SIG Combibloc H1 2021 Results
SIG COMBIBLOC H1 2021 RESULTS CEO SAMUEL SIGRIST CFO FRANK HERZOG 27 JULY 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is not for use within any country or securities of SIG in any state or jurisdiction in which, or to any person to whom such Adjusted net income is defined as profit or loss adjusted to exclude certain items of jurisdiction or by any persons w
Slide 3: H1 2021 Highlights
H1 2021 DRIVING GROWTH HIGHLIGHTS AND PROFITABILITY SUSTAINED REVENUE GROWTH HIGHER PROFITABILITY THIRD APAC PLANT IN CHINA UP AGAINST BACKGROUND OF DESPITE NEGATIVE FX IMPACT AND AND RUNNING TOUGH COMPARABLES AND INFLATIONARY ENVIRONMENT ANNOUNCEMENT OF NEW ONGOING COVID 19 UNCERTAINTY PLANT TO SER
Slide 4: H1 2021 Key Figures
H1 2021 MEA BUSINESS CONSOLIDATED KEY FIGURES FOR FOUR MONTHS CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €950.9 MILLION REVENUE LIKE- INCOME FOR-LIKE(1) +15.3% +8.8% AT €264.1 €109.6 €25.0 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (H1 2020: €215.7m) (H1 2020:
Slide 5: Q2 2021 Financial Highlights
Q2 2021 FINANCIAL ROBUST PERFORMANCE HIGHLIGHTS VS STRONG Q2 2020 CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €508.9 MILLION REVENUE LIKE- INCOME FOR-LIKE(1) +13.2% +5.0% AT €146.2 €57.6 €31.5 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (Q2 2020: €132.0m) (Q2 202
Slide 6: Europe: Strong Base of Comparison in Q2 2020
EUROPE STRONG BASE OF COMPARISON IN Q2 2020 EUROPE Core revenue growth ▪ Q2 2020 positively impacted by COVID- (at constant currency) 19: customer and retailer re-stocking ▪ At-home consumption remained robust in H1 2021 ▪ European business predominantly litre packs ▪ Expansion in premium single-ser
Slide 7: Middle East and Africa: Strong Base of Comparison in Q2 2020
MIDDLE EAST AND AFRICA STRONG BASE OF COMPARISON IN Q2 2020 MIDDLE EAST AND AFRICA ▪ March sales unusually strong ▪ High base of comparison in Q2 2020: customer, retailer and consumer re- stocking ▪ NCSD market still negatively affected by COVID 19 – lower out-of-home consumption, schools closed ▪ D
Slide 8: APAC: Solid Growth Despite COVID-19 Uncertainties
APAC SOLID GROWTH DESPITE COVID-19 UNCERTAINTIES APAC Core revenue growth CHINA (at constant currency) ▪ Market conditions in China returning to normal levels ▪ Strong demand for white milk SOUTH EAST ASIA ▪ Re-stocking in Q1, slower growth in Q2 2021(1) 2020 ▪ Variable market conditions with some Q
Slide 9: Americas: Outstanding Growth Continues
AMERICAS OUTSTANDING GROWTH CONTINUES AMERICAS Core revenue growth ▪ New fillers continued to play (at constant currency) a role in Q2 ▪ At home consumption in Brazil and Mexico remains high ▪ Brazil welfare payments lower: focus on affordability ▪ US recovery: stockbuilding in foodservice sector 20
Slide 10: Sustainability of Cartons Drives New Launches in Europe
SUSTAINABILITY OF CARTONS DRIVES NEW LAUNCHES IN EUROPE VOLVIC FLAVOURED WINS FOR SIGNATURE FULL WATERS IN COMBISMILE BARRIER PACKAGING Intermarché 100% pure juice 10 27 JULY 2021 H1 2021 RESULTS
Slide 11: Leading the Way on Sustainability: EU Single Use Plastics Directive
LEADING THE WAY ON SUSTAINABILITY EU SINGLE USE PLASTICS DIRECTIVE FIRST TO INTRODUCE FIRST TO INTRODUCE PAPER STRAWS TETHERED CAPS Plastic straws to be Tethered caps required phased out in Europe by in Europe by July 2024 July 2021 SIG launch in H2 2021 SIG introduced first straight paper straw in
Slide 12: Adjusted EBITDA Evolution Half Year and Q2
ADJUSTED EBITDA EVOLUTION SIGNIFICANT MARGIN HALF YEAR AND Q2 IMPROVEMENT IN H1 H1 2021 Q2 2021 € MILLIONS € MILLIONS 25.1% (1) 27.3% (1) 28.3% (1) 28.4% (1) 7 -7 21 -2 1 5 -4 27 1 2 16 1 264 -15 15 -1 -5 216 212 132 146 117 112 120 2020 Q2 FX Net of FX Top Line Raw Production SG&A JV JV Misc. 2021
Slide 13: H1 2021 Summary Adjusted EBITDA by Region
H1 2021 SUMMARY ADJUSTED EBITDA BY REGION €million EUROPE (1) MEA (2) EMEA EMEA APAC AMERICAS 2021 2021 2021 2020 2021 2020 2021 2020 CORE REVENUE 238 101 119 387 316 305 174 151 Growth at constant currency 1.0% (3) 2.1% (3) 7.8% 10.9%1 7.0% 28.4% 16.4% ADJUSTED EBITDA 79 32 38 122 91 91 50 35 ADJUS
Slide 14: Net Income Reported and Adjusted
NET INCOME REPORTED AND ADJUSTED €million 2021H1 2020H1 PROFIT FOR THE PERIOD 92 10 Financing costs and exchange rate impacts and net effect of early repayment of secured term loans (5) 27 Onex acquisition PPA depreciation and amortisation 53 64 Other (2) - Adjustments to EBITDA: (19) 2 Of which: Ac
Slide 15: Free Cash Flow: Increasing Cash Conversion
FREE CASH FLOW CASH GENERATION INCREASING CASH CONVERSION WEIGHTED TO H2 €million 2021H1 2020H1(1) 2020A(1) NET CASH FROM OPERATING ACTIVITIES 151 128 426 Dividends received from joint ventures - 7 23 Acquisition of property, plant and equipment and intangible assets (113) (100) (199) Payment of lea
Slide 16: Capital Expenditure
CAPITAL INCREASING INVESTMENT EXPENDITURE IN FILLERS €million 2021H1 2020H1 2020A PROPERTY, PLANT & EQUIPMENT 29 31 77 GROSS FILLER CAPEX 84 69 122 UPFRONT CASH (45) (20) (54) NET FILLER CAPEX 39 49 68 TOTAL NET CAPEX 68 80 145 TOTAL NET CAPEX AS % REVENUE 7.0% 9.3% 8.0% ADJUSTED EBITDA - NET CAPEX
Slide 17: Leverage
LEVERAGE STABLE LEVERAGE YOY AFTER FINANCING ACQUISITION €million 2021H1 2020H1 2020A CASH(1) 152 160 355 TERM LOANS 550 550 550 CREDIT FACILITY 100 - - NOTES ISSUES 1’000 1’000 1’000 LEASE LIABILITIES 178 60 147 NET TOTAL DEBT 1’676 1’450 1’342 TOTAL NET LEVERAGE RATIO(2) 2.9x 2.9x 2.7x . (1) Inclu
Slide 18: Financial Guidance
FINANCIAL INCREASED CONFIDENCE GUIDANCE IN FY GUIDANCE FY 2021E CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY) ADJ. EBITDA MARGIN 27 – 28% EFFECTIVE TAX RATE 27 - 28%(1) NET CAPEX (% REVENUE) 8 - 10% DIVIDEND PAYOUT 50 - 60% OF ADJUSTED NET INCOME(2) Mid-term CORE REVENUE GROWTH 4 - 6% (CONSTANT CUR
Slide 19: Thank You
THANK YOU 27 JULY 2021