Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — H1 2018 Earnings Presentation
34 slides from Anora Group Oyj's earnings presentation, Aug 10, 2018
Slide 1: H1 results presentation
10 AUGUST 2018 H1 results presentation CEO PEKKA TENNILÄ & CFO MATTI PIRI
Slide 2: Agenda
Agenda 1. Highlights 2. Segments and business Leading Nordic 3. Financials alcoholic beverage brand company operating in the wines and spirits markets 4. Strategy in the Nordic countries, Estonia and Latvia. We 5. Q&A also have production in Cognac, France. 10.8.2018 2
Slide 3: We are the Nordic iconic brands
We are the Nordic iconic brands Market position Market position WE OPERATE ON THE STABLE AND PROFITABLE #1 #3 #1 #1 Spirits Wines Spirits Wines NORDIC MARKETS Exports to approx. 30 countries Market positions in Head office the Nordic Region Market position Production Travel retail Spirits Wines Dist
Slide 4: Continued stable development despite a demanding operating environment
Continued stable development despite a demanding operating environment HIGHLIGHTS FROM THE FIRST HALF OF 2018 Comparable EBITDA Comparable Net sales in improved EBITDA margin constant currencies 13.8 (13.4) 8.6% (8.2)% -0.7% EUR million compared to last year Sales of beverages grew by 0.5% in consta
Slide 5: Market development
Market development APPROXIMATELY TWO THIRDS OF CONSUMER PRODUCT SALES COME FROM STATE RETAIL MONOPOLIES Combined spirits and wine sales development in the state retail monopolies Change compared to Q2 18* Q2 17* H1 18 H1 17 2017 • Exceptional weather conditions in the Nordics previous year, % • New
Slide 6: Net sales highlights
Net sales highlights NEGATIVE CURRENCY IMPACT CONTINUED IN THE FIRST HALF • Reported net sales were EUR 160.6 (164.6) million • Net sales of beverages up by 0.5% in constant • Negative currency impact by EUR -2.9 million currencies • Lower contract manufacturing volumes in Altia • Nordic core brands
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 % • Retail and exports are growing 65 16 13.5%
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 % • Excluding currency impact net 55 3,5 sales at last year’s level 3.0% 3,0 50 • Good perform
Slide 9: Altia's digital platforms
Altia’s digital platforms Finland: www.viinimaa.fi Sweden: www.folkofolk.se Germany: www.nordicspirits.com • A leading consumer channel for alcoholic • A unique and unrivaled position in the market for • Nordic alcohol brand store in Germany since 5/18 beverages in Finland alcoholic beverages • Incu
Slide 10: 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 11: Financials
Financials CFO MATTI PIRI F c.
Slide 12: Consolidated income statement
Consolidated income statement EUR million Q2 18 Q2 17 H1 18 H1 17 2017 NET SALES 87.1 91.3 160.6 164.6 359.0 Other operating income 2.0 1.6 3.5 3.0 8.3 Materials and services -49.1 -52.2 -91.0 -93.2 -202.0 Employee benefit expenses -12.9 -13.2 -27.1 -26.5 -52.0 Other operating expenses -18.8 -18.5 -
Slide 13: Altia's business is characterised by substantial seasonality
Altia’s business is characterised by substantial seasonality SEASONALITY AFFECTS NET SALES AND PROFITABILITY 120 20 • Revenues typically lower in Q1, a large amount 18 of revenue and cash flow generated in Q4 100 16 - Timing of Easter in Q1 or Q2 - 1st of May and Midsummer festivities in Q2 14 80 -
Slide 14: Profitability
Profitability Comparable EBITDA Reported EBITDA % MEUR % MEUR 10 • In H1, items affecting 14 8.6% 9 14 9 comparability were EUR -4.5 13,5 12 8 (-0.6) million, mainly related 8,5 7.8% 8.2% to Altia’s IPO 13 7 8 10 • As estimated and 6 12,5 5.8% communicated in Q1, some 8 12 7,5 5 EUR 0.7 million were
Slide 15: Cash flow and balance sheet
Cash flow and balance sheet AS AT 30 JUNE Net cash flow from operating EUR -26.7 (-7.1) million activities (in H1) The receivables sold EUR 55.5 (62.7) million Gearing 56.7% (15.0%) Net debt EUR 77.4 (27.7) million The reported net debt to 1.8 (0.6) comparable EBITDA ratio In use from revolving cred
Slide 16: Cash flow from operations
Cash flow from operations EUR million Q2 18 Q2 17 H1 18 H1 17 2017 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 4.2 5.0 2.0 5.7 25.0 Adjustments Depreciation, amortisation and impairment 3.5 3.5 7.0 7.1 14.2 Share of profit in associates and income from investments in joint -0.0 0.0 -0.9
Slide 17: Leverage
Leverage NET DEBT / COMPARABLE EBITDA, ROLLING 12M Target <2.5x 2,5 2,0 1,8 1,8 1,5 1,1 1,0 0,9 0,7 0,6 0,5 0,0 Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 10.8.2018 17
Slide 18: New accounting standards: IFRS 16 Leases
New accounting standards: IFRS 16 Leases NOT SIGNIFICANT IMPACT ON ALTIA • Based on the Altia’s preliminary impact assessment the implementation of IFRS 16 will increase the property, plant and equipment in its balance sheet. • Altia does not expect the impact to be significant due to the nature and
Slide 19: Grain
Grain CFO MATTI PIRI
Slide 20: Altia's use of grain
Altia’s use of grain • For different businesses we have different pricing structures to take into account raw material price changes • Historically, the barley price increases has also required additional mitigation activities 10.8.2018 20
Slide 21: Crop production forecast
Crop production forecast Barley balance forecast Production Total demand Inventories Exports Source: OSF: Natural Resources Institute Finland, Crop Production Statistics 10.8.2018 21
Slide 22: Strategy
Strategy CEO PEKKA TENNILA é P|
Slide 23: 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 Active brand consumer segments portfolio through the five • Grow wine segment with innovations and m
Slide 24: 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 25: Guidance 2018
Guidance 2018 • The positive trend in Altia’s core brand portfolio is expected to continue. Cost increases on key raw materials and expansion in exports impact profitability development. Currency fluctuations, especially the weakening of the Swedish and Norwegian kronas, are expected to continue. Gu
Slide 26: Summary and Q&A
SUBHEADING SUMMARY AND Q&A Numbers text style Financially stable 12% development and improved profitability Call out lorem ipsum dolor sit amet. Numbers text style Sales of beverages Number text style Challenging 34,5% grew by 0.5% - Nordic core brands continued to 123 operating environment develop
Slide 27: Thank you!
Thank you! www.altiagroup.com
Slide 28: Appendices
Appendices www.altiagroup.com
Slide 29: Key ratios
Key ratios EUR million Q2 18 Q2 17 H1 18 H1 17 2017 EUR million Q2 18 Q2 17 H1 18 H1 17 2017 Income statement Profitability Net sales EUR million 87.1 91.3 160.6 164.6 359.0 Return on equity (ROE), rolling Comparable EBITDA EUR million 8.7 9.2 13.8 13.4 42.4 12 months % 11.2 18.9 11.1 % of net sales
Slide 30: Consolidated balance sheet
Consolidated balance sheet 30 Jun 30 Jun 30 Jun 30 Jun EUR million 2018 2017 2017 EUR million 2018 2017 2017 ASSETS EQUITY AND LIABILITIES Non-current assets Equity attributable to owners of the parent Goodwill 80.1 82.8 82.1 Share capital 60.5 60.5 60.5 Other intangible assets 31.8 36.0 34.4 Invest
Slide 31: Quarterly net sales and comparable EBITDA by segment
Quarterly net sales and comparable EBITDA by segment Net sales by segment EUR million Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Finland & Exports 35.4 27.1 40.7 31.4 35.7 26.0 41.1 31.6 33.9 27.3 Scandinavia 27.4 22.5 44.4 26.5 29.7 23.2 45.9 26.7 30.0 25.0 Altia Industrial 24.2 24
Slide 32: Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC)
Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC) EUR million Q2 18 Q2 17 H1 18 H1 17 2017 Items affecting comparability Net gains or losses from business and assets disposals 0.4 - 0.4 - 1.3 Cost for closure of business operations and restructurings -0
Slide 33: Retail offering
Retail offering Koskenkorva Vichy sugarfree 10.8.2018 33
Slide 34: Follow us:
Follow us: www.altiagroup.com