Verallia SAS · EURONEXT:VRLA
Verallia SAS — Verallia — 9M 2019 Earnings Presentation
24 slides from Verallia SAS's earnings presentation, Nov 7, 2019
Slide 1: 9M 2019 Results
9M 2019 Results November 7th, 2019
Slide 2: 9M 2019 Results agenda
9M 2019 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion Verallia 9M 2019 Results 07/11/2019 2
Slide 3: 2019 first nine months financial highlights: continued strong performance
2019 first nine months financial highlights: continued strong performance Success of the Group’s Initial Public Offering on Euronext Paris in October 2019 and the associated refinancing Revenue - Reported revenue at €1,976m during the first nine months 2019 - Sustained growth in revenue of 7.2%
Slide 4: Success of the IPO!
SUCCESS OF THE IPO! Largest IPO since 2017 on Euronext Paris Offering price of €27 per share corresponding to a total offering size of €963m i.e. 35,654,092 shares Board of Directors Composition Michel Giannuzzi Chairman Robert Seminara Apollo Claudia Scarico Apollo Pierre Vareille Apollo Sébast
Slide 5: €24 million investment to modernize the Lagnieu plant
€24 million investment to modernize the Lagnieu plant France Site specialized in the manufacturing of glass food containers Investment of €24m Reconstruction of one of the plant’s two furnaces Modernization of the 5 production lines Improvement of energy performance and environmental impac
Slide 6: Financial results
9M 2019 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion Verallia 9M 2019 Results 07/11/2019 6
Slide 7: Sustained revenue growth supported by volume, price and mix in all segments
Sustained revenue growth supported by volume, price and mix in all segments Reported revenue bridge (in €m) Continuing organic growth of 10.6% YoY in Q3 Reported growth: +7.2% Organic growth*: +10.1% Negative exchange rates impact due to (50.0) continued depreciation of the Argentine 1,976 (2.5)
Slide 8: Strong growth in adjusted EBITDA and margin expansion
Strong growth in adjusted EBITDA and margin expansion Adjusted EBITDA bridge (in €m) Adjusted EBITDA margin 9M 2018 9M 2019 Reported growth: +12.9% 23.0% 24.2% + 122 bps Growth at cst FX & scope***: +16.9% Strong growth in adjusted EBITDA driven by: - Continuous volume growth (55.9) - Positive pri
Slide 9: Cash performance
9M 2019 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion Verallia 9M 2019 Results 07/11/2019 9
Slide 10: Continuous deleveraging capabilities
Continuous deleveraging capabilities(*) In € million 30/09/2018 30/09/2019 Net Debt 1,772.0 1,627.0 LTM Adjusted EBITDA 541.3 602.3 Net Debt / LTM Adjusted EBITDA 3.3x 2.7x 2.7x ratio of net debt over LTM adjusted EBITDA in September 30, 2019: - Net debt at €1,627.0 million including rights-of-use
Slide 11: Net debt €1,657.9 million at September 30, 2019 (pro forma IPO refinancing)
Verallia’s net debt : €1,657.9 million at September 30, 2019 (Proforma IPO refinancing(*)) Nominal amount or Final September 30, In € million maximum amount Nominal rate maturity 2019 PF drawable Term Loan A 1,500.0 Euribor +1.75% 07/10/2024 1,487.0 Revolving Credit Facility 500.0 Euribor +1.35% 07/
Slide 12: Conclusion
9M 2019 Results 1. Financial highlights and key initiatives 2. Financial results 3. Cash performance 4. Conclusion Verallia 9M 2019 Results 07/11/2019 12
Slide 13: Conclusion
Conclusion Our strategy remains based on the following 4 pillars: - Disciplined growth (profitable and durable); - Operational excellence deployment; - Wise investments; - Strong entrepreneurial culture And is being successfully deployed, triggering the following profitability levers over the fi
Slide 14: 2019 guidance upgrade for organic growth and adjusted EBITDA
2019 guidance upgrade for organic growth and adjusted EBITDA 2019 guidance upgrade for organic growth and adjusted EBITDA: - Consolidated revenue organic growth(*) of between 8% and 10% instead of organic growth between 6% and 8% initially; - Adjusted EBITDA(**) above €610m, compared to around €61
Slide 15: Appendices
9M 2019 Results Appendices Verallia 9M 2019 Results 07/11/2019 15
Slide 16: Glossary
Glossary Organic growth: corresponds to revenue growth at constant exchange rates and scope. Revenue growth at constant exchange rates is calculated by applying the average exchange rates of the comparative period to revenue for the current period of each Group entity, expressed in its reporting c
Slide 17: Key figures in Q3
Key figures in Q3 In € million Q3 2018 Q3 2019 Revenue 599.6 647.0 Reported growth +7.9% Organic growth +10.6% Adjusted EBITDA 147.6 165.0 Adjusted EBITDA margin 24.6% 25.5% Verallia 9M 2019 Results 07/11/2019 17
Slide 18: Reconciliation of operating profit to adjusted EBITDA
Reconciliation of operating profit to adjusted EBITDA In € million 9M 2018 9M 2019 Operating profit 186.0 241.9 Depreciation, amortisation and impairment (i) 217.7 211.9 Restructuring costs (ii) 4.5 2.8 Acquisition, M&A and IPO costs 0.2 8.3 IAS 29, Hyperinflation (Argentina) (iii) 0.0 2.1 Managemen
Slide 19: Net debt €1,627m as of September 30, 2019 (before IPO refinancing)
Verallia’s net debt: €1,627m as of September 30, 2019 (before refinancing associated to the IPO) Nominal amount or September 30, In € million maximum amount Nominal rate Final maturity 2019 drawable Term Loan B 1,125.0 Euribor +2.75% 29/10/2022 1,109.6 Term Loan C 550.0 Euribor +2.75% 01/08/2025 544
Slide 20: New refinancing at IPO: €1,500m Term loan + €500m RCF
New refinancing at IPO: €1,500m Term loan + €500m RCF Financial indebtedness as of September 30, 2019 (in €m) Pro forma IPO refinancing as of September 30, 2019 (in €m) (*) 192 192 Neu CP RCF undrawn 325 E+1.35% E+1.35% 500 (Oct 21/Oct 24) TLB (Oct 22) 1,125 TLC (Aug 25) 550 TLA (Oct 24) E+1.75% E+1
Slide 21: Reminder of the 2020-2022 Outlook
Reminder of the 2020-2022 Outlook Over the 2020-2022 period, assuming moderate inflation in raw material and energy costs and an effective tax rate going down from 30% to 26%, the Group aims to achieve the following: Consolidated revenue organic growth(*) at a compound annual growth rate (CAGR) of
Slide 22: Impact of IFRS 16 Leases
Impact of IFRS 16 “Leases” Verallia has applied IFRS 16 since January 1, 2019 using the simplified retrospective transition method. IFRS 16 (Leases) eliminates the distinction between operating and finance leases and requires the lessee to recognize an asset (the right to use the leased asset) and a
Slide 23: IAS 29: Hyperinflation in Argentina
IAS 29: Hyperinflation in Argentina Since the second half of 2018, the Group 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, leading to a gai
Slide 24: Disclaimer
Disclaimer Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business stra