Viscofan, S.a. · BME:VIS
Viscofan — H1 2014 Earnings Presentation
17 slides from Viscofan's earnings presentation, Jul 31, 2014
Slide 1: Results January-June 2014
Results January- June 2014 July 31, 2014 January – June 2014 Results
Slide 2: Disclaimer
Disclaimer This document may include statements about intentions, expectations or forecasts of the Company additional to the mandatory financial reporting whose sole purpose is to provide information more accurately about the perspectives of future behaviours. Such intentions, expectations or foreca
Slide 3: Highlights 1H14
Highlights 1H14 y-o-y growth in Consolidated income totalled €387.9MM in 1H14 supported in the casing +5.4% casing volumes volumes and the vegetable food division. y-o-y EBITDA Cumulative EBITDA to 1H14 grows to €94.4MM, which includes an +2.8% growth improvement in EBIDTA margin of +0.6 p.p. up to
Slide 4: Solid organic performance: selected financial data
Consolidated results 1H14 Solid organic performance: strength in volumes together with improvements in margins… Selected financial data (MM €) 1H14 % y- y-o-y No recurring 1 2 F orex 2 1H14 % y-o-y LFL LFL Revenues 400.1 +3.2% +2.9 -15.1 387.9 +0.1% EBITDA 95.8 +4.4% +2.7 -4.2 94.4 +2.8% EBITDA marg
Slide 5: Increase in volumes with cost optimisation and gross margin improvement
Consolidated results 1H14 Increase in volumes in a context of optimisation of costs that allow and improvement in gross margin. % Year on year change. +4.4% (ex-forex) +3.2 % (ex-forex) +2.9 p.p. +1.6% +1.1% 1.1% +0.8% +2.8% -0.2% 0.2% -0.6% 0.6% -4.4% Other Recurring Cost of Gross Recurring Non Sta
Slide 6: Decrease in net income due to higher D&A and tax rate
Consolidated Results 1H14 Decrease in net income due to the increase in D&A and the impact of the revaluation of assets in the tax rate of 2013. 94.4 -25.7 68.6 -1.9 -15.8 50.9 +7.1% +17.3% +2.8% +1.3% -5.3% EBITDA D&A EBIT Net financial income Taxes Net income Tangible and intangible Net financial
Slide 7: Operating cash flows support solid financial leverage ratios
Consolidated Results 1H14 Strength of operating cash flows that allow support solid financial leverage ratios in a context of business expansion and dividend increase. Net bank debt evolution (MM €) +32.8 +3.1 95.1 84.6 -94.4 +36.0 Financial Financial leverage: leverage: 16.2% +25.5 17.6% +7.5 Net b
Slide 8: Casing division
Casing division January – June 2014 Results 8
Slide 9: Revenue growth driven by cumulative H1 casings volume growth
CASINGS Revenue growth driven by the cumulative H1 y-o-y casings volume growth of 5,4%… Sales of casings (MM €) +3% 164.3 y-o-y 161.5 Ex- Ex-forex 1 volume Total revenue 152.1 152.0 Casing division (MM €) 151.3 146.4 175.5 172.1 156.9 160.0 162.1 164.0 160.7 Cogeneration revenue (MM €) 15.2* 13.6 14
Slide 10: Growth eroded by weak US$ and BRL and cogeneration reform
CASINGS … that are eroded by the significant weakness of US$ and BRL versus €, and by the global negative impact of the cogeneration reform in Spain. Income (MM €) -0.4% vs. 1H13 +4.8 p.p. p.p. -0.7 p.p. -4.5 p.p. 335.5 334.3 casings Cogeneration Forex1 ex-Forex Volumes led Global negative Weakness
Slide 11: Revenue breakdown by geographical area: Asia and Latam strength
CASINGS Revenue driven by strong volumes in emerging countries, specially the new Viscofan productive areas: Asia and Latam. Revenue breakdown by geographical areas1 (MM €) 175.7185.3 29.0% North America 105.5 96.9 55.4% 54.2 52.1 1H14 Europe and Asia 15.6% 1H13 Latam Europe and Asia North America L
Slide 12: Organic growth offset by currency weakness; cumulative EBITDA
CASINGS Organic growth has been offset by the weakness of the currencies, while a less unfavourable remuneration to cogeneration versus the expected allows the growth of the reported EBITDA… Cumulative EBITDA (MM €) 91.2 Sales growth 88.4 +4.5 -4.4 +2.7 Operative Forex Non improvements impact 1 recu
Slide 13: Casing business combines growth with organic margin improvement
CASINGS …where the casing business has been able to combine growth with organic margins improvement , in an adverse backdrop of pressure in energy costs and learning curve in the new production centres. Cumulative EBITDA margin 27.3% Sales growth 26.3% Operative Non Forex1 recurring2 Productivity im
Slide 14: Be MORE measures favour margin expansion
CASINGS … the Be MORE measures favour the expansion of margins in a environment (start up in Uruguay, energy cost and lower effective price in cogeneration) that erode the evolution of margins. EBITDA margin (%) Improvement in gross • Productive efficiencies 28.8% margin • Provisioning policies 26.9
Slide 15: Quarterly EBITDA showing positive behaviour
CASINGS …allow that quarterly EBITDA to have a positive behaviour. EBITDA (MM €) Recurring quarterly EBITDA 1 (MM €) 49.6 +5.1% 47.3 49.7 vs. 2Q13 47.3 +4.9% 46.9 42.1 41.1 41.6 40.1 2Q13 2Q14 1 The figures exclude the additional non- recurring impact of €2.9MM revenue and €2.7MM EBITDA registered i
Slide 16: Vegetable food: positive evolution thanks to Carretilla brand
VEGETABLE FOOD Positive evolution thank to the strength of the brand Carretilla and the diversification strategy. Revenue (MM €): EBITDA (MM €): Net income (MM €): +3.2% -7.7% -48.7% 53.7 52.0 3.5 3.2 2.3 0.9 MM Revaluation 1.2 1H13 1H14 1H13 1H14 1H13 1H14 EBITDA Margin 6.7% 6.0% 1H13 1H14 January
Slide 17: To sum up
To sum up Viscofan continues catching the market growth, with increases in volumes both the first quarter and the second, led by the growth in the emerging areas and the collagen sector. The weakness of currencies against the € erode to a large degree the organic growth reached both in revenue and E