Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — H1 2020 Earnings Presentation
22 slides from Anora Group Oyj's earnings presentation, Aug 19, 2020
Slide 1: H1 20 results presentation
19 AUGUST 2020 H1 20 results presentation CEO PEKKA TENNILÄ CFO NIKLAS NYLANDER
Slide 2: COVID-19 update
COVID-19 update KEY PRIORITIES THE HEALTH AND SAFETY OF EMPLOYEES AND BUSINESS CONTINUITY Impacts so far • Travel retail, exports and on-trade sales channels were closed in Q2 • Consumers shifted purchases to the monopolies • Uplifting of restrictions end of Q2, low impact for Altia • High demand fo
Slide 3: Strong result in an exceptional market environment
Strong result in an exceptional market environment HIGHLIGHTS FROM H1 Reported net sales Comparable EBITDA 149.3 (165.0) 18.8 (13.7) EUR million EUR million Net sales growth in constant currencies Comparable EBITDA margin -8.4% 12.6% (8.3%) 19.8.2020 3
Slide 4: Market development
Market development APPROXIMATELY TWO THIRDS OF CONSUMER PRODUCT SALES COME FROM STATE RETAIL MONOPOLIES Combined spirits and wine sales volume development in the state retail monopolies Change compared to previous year, % Q2 20 Q2 19 H1 20 H1 19 2019 Finland Nordics in total +20.9 +2.4 +15.6 -1.3 +0
Slide 5: H1: Net sales declined from previous year
H1: Net sales declined from previous year CLOSED SALES CHANNELS, LOWER CONTRACT MANUFACTURING VOLUMES AND NORMALISED BARLEY PRICE H1 20: Q2 20: Net sales by segment, MEUR • Net sales decline in constant • Net sales decline in constant currencies was 8.4% currencies was 10.3% -9.5% • COVID-19 restric
Slide 6: Finland & Exports
Finland & Exports JANUARY–JUNE 2020 The Finland & Exports segment comprises the import, sale and marketing of wine and spirits, and other beverages in Finland and the Baltics, as well as exports and travel retail. Highlights Net sales, MEUR Product launches in Q2 20 • Net sales declined by 11.2% to
Slide 7: Scandinavia
Scandinavia JANUARY–JUNE 2020 The Scandinavia segment comprises the import, sale and marketing of wine and spirits, and other beverages in Sweden, Norway and Denmark. Highlights Net sales, MEUR Product launches in Q2 20 • Reported net sales declined by 1.1% to -1.1% EUR 50.1 (50.7) million • Busines
Slide 8: Altia Industrial
Altia Industrial JANUARY–JUNE 2020 The Altia Industrial segment comprises Koskenkorva plant operations, starch, feed component and technical ethanol businesses, as well as contract manufacturing services at Rajamäki. It also includes supply chain operations, i.e. production operations in different c
Slide 9: Financials
19 AUGUST 2020 Financials CFO NIKLAS NYLANDER
Slide 10: Barley sourcing
In H1 2020, Barley sourcing Altia’s use of Finnish grain reached Barley price development and Altia’s monthly volumes 2007-2020 (June) 107.4 (105.9) EUR/tn tn million kilos. 250 30 000 25 000 200 20 000 150 15 000 100 10 000 50 5 000 2007 2009 2011 2013 2015 2017 2019 0 0 Altia's grain purchases to
Slide 11: Significant profitability improvement
Significant profitability improvement ALTIA INDUSTRIAL, MONOPOLY SALES AND COST SAVINGS Quarterly net sales and comparable EBITDA, EUR million 111 110 87 91 86 85 81 74 19,7 68 15,9 H1 20: 13,2 11,4 10,3 • Comparable EBITDA improved by 37% or EUR 8,7 9,4 5.1 million to EUR 18.8 (13.7) million 4,3 5,
Slide 12: Profitability improved in all segments
Profitability improved in all segments ALTIA INDUSTRIAL, MONOPOLY SALES AND COST SAVINGS Comparable EBITDA by segment, MEUR and margins H1 20: Finland & Exports EUR million Q2 20 Q2 19 Change H1 20 H1 19 Change 2019 • Strong monopoly sales, revenue Finland & management and cost savings 5.5 5.3 +4.4%
Slide 13: Cash flow improved significantly
Cash flow improved significantly Net cash flow from operating activities, MEUR H1 20: • Net cash flow from operations was EUR 10.3 (- 4.0) million – Improved comparable EBITDA – Positive development in net working capital • Net working capital was EUR 14.7 (41.0) million • Receivables sold were EUR
Slide 14: Strong financial position and liquidity situation
Strong financial position and liquidity situation Gearing, % 56,7 % 58,4 % 58,1 % 59,1 % 57,9 % Net debt Net debt, EUR million Net debt / Comparable EBITDA (rolling 12m) 31,6 % 33,2 % 86,8 82,9 81,3 81,4 77,4 19,1 % 20,0 % Long-term target <2.5x 47,4 48,9 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1
Slide 15: Guidance 2020 remains suspended
Guidance 2020 remains suspended THE RESTRICTIONS AND INSTRUCTIONS FROM GOVERNMENTS AND HEALTH AUTHORITIES HAVE A SIGNIFICANT IMPACT ON ALTIA’S OPERATING ENVIRONMENT. • The visibility for the rest of the year continues to be poor and forecasting is difficult. Uncertainty in the economy remains at a h
Slide 16: Q&A
Q&A Chat Use *6 to mute or unmute microphone on your telephone Raise your hand 19.8.2020 16
Slide 17: Summary
Summary Strong result in exceptional market environment Strong performance in Uncertainty in monopolies: the operating double-digit sales environment growth in spirits remains high 19.8.2020 17
Slide 18: Thank you
Next events 6 Nov: Q3 Business Review Thank you www.altiagroup.com IR: [email protected]
Slide 19: Appendices
Appendices 19.8.2020 19
Slide 20: Key ratios
KEY RATIOS EUR million Q2 20 Q2 19 H1 20 H1 19 2019 Net sales, EUR million 81.0 91.2 149.3 165.0 359.6 Comparable EBITDA, EUR million 13.2 9.4 18.8 13.7 44.8 % of net sales 16.3 10.4 12.6 8.3 12.4 EBITDA, EUR million 12.6 9.2 18.0 13.5 43.1 Comparable operating result, EUR million 8.9 5.0 9.9 4.7 26
Slide 21: Quarterly net sales and comparable EBITDA by segment
QUARTERLY NET SALES AND COMPARABLE EBITDA BY SEGMENT Net sales by segment EUR million Q2 20 Q1 20 Q4 19 Q3 19 Q2 19 Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Finland & 29.2 23.8 37.8 31.2 34.7 25.0 39.5 31.8 35.4 27.1 40.7 31.4 35.7 26.0 41.1 31.6 33.9 27.3 Export
Slide 22: Shareholder structure
Shareholder structure AS AT 31 JULY 2020 Shareholders Number of shares % of shares 1 Valtion Kehitysyhtiö Vake Oy 13 097 481 36.2 Non-financial corporations 2 Ilmarinen Mutual Pension Insurance Company 1 113 300 3.1 5% 3 Varma Mutual Pension Insurance Company 1 050 000 2.9 Non-profit Rest of the ins