Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — Q1 2019 Earnings Presentation
30 slides from Anora Group Oyj's earnings presentation, May 8, 2019
Slide 1: Q1 results presentation
8 MAY 2019 Q1 results presentation CEO PEKKA TENNILÄ CFO NIKLAS NYLANDER
Slide 2: Agenda
Agenda 1. Highlights 2. Market 3. Business & segments 4. Financials, barley sourcing, IFRS 16 5. Strategy Leading Nordic 6. Q&A alcoholic beverage brand company operating in the wines and spirits markets in the Nordic countries, Estonia and Latvia. We also have production in Cognac, France. 8.5.2019
Slide 3: Leading Nordic alcoholic beverage brand house
Leading Nordic alcoholic beverage brand house WE OPERATE ON THE STABLE AND PROFITABLE NORDIC MARKETS Exports to approx. 30 countries Head office Production Sales office Distillery Warehouse 8.5.2019 3
Slide 4: Stable net sales development, timing of Easter and high raw material costs impacted profitability
Stable net sales development, timing of Easter and high raw material costs impacted profitability HIGHLIGHTS FROM Q1 19 Reported net sales Comparable EBITDA Comparable EBITDA margin 73.8 (73.5) 4.3 (5.2) 5.8% (7.0%) EUR million EUR million Net sales Comparable EBITDA grew by 1.3% without IFRS 16 imp
Slide 5: 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 • Nordic spirits and wine market in total – volumes in the three retail Q1 19 Q1 18 Q1 17 2018
Slide 6: Net sales highlights
Net sales highlights TIMING OF EASTER IMPACTS Q1 AND COMPARABILITY • In constant currencies 1.3% above last year’s level • Net sales of beverages in constant currencies declined • Reported net sales were EUR 73.8 (73.5) million by -4.4% • Altia Industrial’s growth driven by price increases and good
Slide 7: Finland & Exports
Finland & Exports 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 Product launches & events Key financials MEUR % • Net sales were 25.0 (27.1) million 14 12.7%
Slide 8: Scandinavia
Scandinavia The Scandinavia segment comprises the import, sale and marketing of wine and spirits, and other beverages in Sweden, Norway and Denmark. Highlights Product launches & events Key financials MEUR % • Reported net sales were EUR 21.7 (22.5) • New partnership with Conaxess Trade 25 0 million
Slide 9: Altia Industrial
Altia Industrial 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 countries, customer
Slide 10: Financials
Financials CFO NIKLAS NYLANDER
Slide 11: Barley cost and Easter impacted profitability in Q1
Barley cost and Easter impacted profitability in Q1 SEASONALITY AFFECTS NET SALES AND PROFITABILITY • Comparable EBITDA was EUR 4.3 (5.2) million, and without IFRS 16 impact EUR 3.2 million • Comparable EBITDA margin was 5.8% (7.0%) • Items affecting comparability amounted to EUR 0.0 (-4.1) Quarterl
Slide 12: Barley sourcing
Altia’s use of barley in 2018 reached 211.7 Barley sourcing (206.0) million kilos - Equals about 30% of the total market Barley price development and Altia’s monthly volumes 2007-2019 (Jan-Mar) volume EUR/tn tn 250 30 000 25 000 200 20 000 150 15 000 100 10 000 50 5 000 2007 2009 2011 2013 2015 2017
Slide 13: Cash flow and balance sheet
Cash flow and balance sheet AS AT 31 MARCH Net cash flow from operating activities EUR -28.7 (-27.0) million Receivables sold EUR 39.0 (52.9) million Net debt EUR 86.8 (75.9) million Gearing 58.1% (56.9%) Equity ratio 39.4% (34.9%) Reported net debt to comparable EBITDA ratio, 2.2 (1.8) rolling 12m
Slide 14: New accounting standards: IFRS 16 Leases
New accounting standards: IFRS 16 Leases NOT SIGNIFICANT IMPACT ON ALTIA • The reporting period 1 January to 31 March 2019 includes the Q1 19 adoption of the IFRS 16 standard as of 1 January 2019. • Altia applies the simplified approach, according to which the Comparable EBITDA, EUR million 4.3 comp
Slide 15: Strategy
Strategy CEO PEKKA TENNILÄ
Slide 16: Our financial targets aim towards stable shareholder returns
Our financial targets aim towards stable shareholder returns Net sales growth +2% • Altia’s target is to achieve an annual net sales growth of 2 per cent over time (CAGR) CAGR Comparable EBITDA margin 15 % • Comparable EBITDA margin target to reach 15 per cent in the long-term Net debt / comparable
Slide 17: The core of our strategy is to deliver profitable growth
The core of our strategy is to deliver profitable growth Commercial battles 1 • Expand into new geographical markets Growth and Grow Nordic Core Brands • Innovate into new occasions and profitability consumer segments Active brand portfolio through the five • Grow wine segment with innovations and m
Slide 18: Strengthening the strategy execution
Strengthening the strategy execution FURTHER INITIATIVES IDENTIFIED TO REACH LONG-TERM NET SALES AND PROFITABILITY TARGETS Based on our Initiatives within: strategy to create • Revenue management profitable growth, Growth • Expansion in growing categories in Sweden and Norway we have identified • Ex
Slide 19: Guidance 2019
Guidance 2019 • The comparable EBITDA is expected to improve from the 2018 level. – The positive trend of Altia’s Nordic core brand portfolio is expected to continue. – Market development in Finland is expected to flatten out in comparison to 2018 and the markets in Sweden and Norway are expected to
Slide 20: Q&A and summary
Q&A AND SUMMARY Net sales grew by 1.3% in constant currencies High raw material Timing of Easter has costs in Q1 and a negative impact on until new harvest net sales and profitability through Guidance remains lower sales volumes unchanged and sales mix assuming normal Next events harvest Annual Gene
Slide 21: Thank you
Thank you www.altiagroup.com IR: [email protected]
Slide 22: Appendices
Appendices 8.5.2019 22
Slide 23: Key ratios
Key ratios EUR million Q1 19 Q1 19 2018 2017 Net sales, EUR million 73.8 73.5 357.3 359.0 Comparable EBITDA, EUR million 4.3 5.2 40.0 42.4 % of net sales 5.8 7.0 11.2 11.8 Comparable EBITDA without IFRS 16 impact, EUR million 3.2 EBITDA, EUR million 4.3 1.1 34.0 40.3 Comparable operating result, EUR
Slide 24: Quarterly net sales and comparable EBITDA by segment
Quarterly net sales and comparable EBITDA by segment Net sales by segment EUR million 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 & Exports 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 Scandinavia 21.7 42.8 25.0 27.4 22.5 44.4 26.5 29.7 2
Slide 25: Reconciliation of alternative performance measures and items affecting comparability
Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC) EUR million Q1 18 Q1 17 2018 2017 Items affecting comparability Net gains or losses from business and assets disposals - - 0.4 1.3 Cost for closure of business operations and restructurings - -0.2 -1.1 -
Slide 26: Consolidated income statement
Consolidated income statement EUR million 2018 2017 NET SALES 357.3 359.0 Other operating income 7.4 8.3 Materials and services -206.8 -202.0 Employee benefit expenses -49.9 -52.0 Other operating expenses -73.9 -72.9 Depreciation, amortisation and impairment -14.4 -14.2 OPERATING RESULT 19.7 26.1 Fi
Slide 27: Cash flow from operations
Cash flow from operations EUR million 2018 2017 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 18.6 25.0 Items affecting Adjustments comparability Depreciation, amortisation and impairment 14.4 14.2 (MEUR 6) and barley Share of profit in associates and income from investments in joint opera
Slide 28: Consolidated balance sheet
Consolidated balance sheet EUR million 2018 2017 EUR million 2018 2017 ASSETS EQUITY AND LIABILITIES Non-current assets Equity attributable to owners of the parent Goodwill 80.7 82.1 Share capital 60.5 60.5 Invested unrestricted equity fund 1.2 - Other intangible assets 29.6 34.4 Fair value reserve
Slide 29: Shareholder structure
Shareholder structure AS AT 31 MARCH 2019 Number of Shareholders % of shares shares 1 Valtion Kehitysyhtiö Vake Oy 13 097 481 36.2 2 Varma Mutual Pension Insurance Company 1 550 000 4.3 1.4 0.8 4.2 44.3 Public sector 44.3 3 Ilmarinen Mutual Pension Insurance Company 973 300 2.7 18.4 4 OP-Finland Sma
Slide 30: Retail offering
Retail offering Koskenkorva Vichy sugarfree 8.5.2019 30