Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — Q3 2020 Earnings Presentation
23 slides from Anora Group Oyj's earnings presentation, Nov 6, 2020
Slide 1: Q3 20 results presentation
6 NOVEMBER 2020 Q3 20 results presentation CEO PEKKA TENNILÄ INTERIM CFO JUHANA JOKINEN
Slide 2: COVID-19 update
COVID-19 update KEY PRIORITIES THE HEALTH AND SAFETY OF EMPLOYEES AND BUSINESS CONTINUITY Impacts so far • Significant negative impacts on travel retail, exports and on-trade • Consumers shifting purchases to the monopolies • Following 2nd wave of COVID-19, new restrictions from mid Q3 • Demand for
Slide 3: Strong third quarter, guidance updated
Strong third quarter, guidance updated HIGHLIGHTS FROM Q1-Q3 2020 Reported net sales Comparable EBITDA Q1-Q3 Q1-Q3 235.9 (249.5) 33.4 (25.1) EUR million EUR million Net sales growth in constant currencies Comparable EBITDA margin -4.7% 14.2% (10.1%) 29.4.2020 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 Q1-Q3 Q1-Q3 Change compared to previous year, % Q3 20 Q3 19 2019 Finland 20 19 Nordics in total +18.2 1.5 16.5 -0.
Slide 5: Net sales grew in Q3
Net sales grew in Q3 STABLE DEVELOPMENT ACROSS ALL SEGMENTS Q1-Q3 20: Q3 20: Net sales by segment, MEUR • Net sales decline in constant currencies was • Net sales increase was 2.5% 4.7% • Spirits sales grew driven by strong -5.5% • Significant negative impacts of COVID-19 monopoly sales 250 • Normal
Slide 6: Finland & Exports
Finland & Exports JANUARY–SEPTEMBER 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 Q3 20 • Net sales were EUR 82.8 (9
Slide 7: Scandinavia
Scandinavia JANUARY–SEPTEMBER 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 Q3 20 • Net sales were EUR 77.5 (76.3) million, up by 1.7%. • Growth in constant
Slide 8: Altia Industrial
Altia Industrial JANUARY–SEPTEMBER 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 differ
Slide 9: Financials
6 NOVEMBER 2020 Financials INTERIM CFO JUHANA JOKINEN
Slide 10: Barley sourcing
In Jan-Sep 2020, Barley sourcing Altia’s use of Finnish barley reached 160 (157) Barley price development and Altia’s monthly volumes 2007-2020 (September) million kilos. 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 2019 0 0 Altia's grain purcha
Slide 11: Q1-Q3: Significant profitability improvement
Q1-Q3: Significant profitability improvement ALTIA INDUSTRIAL, MONOPOLY SALES AND COST SAVINGS Quarterly net sales and comparable EBITDA, EUR million 111 110 91 86 85 87 81 74 19,7 68 15,9 14,6 Q1-Q3 20: 13,2 11,4 10,3 • Comparable EBITDA improved by 33% or EUR 9,4 8.3 million to EUR 33.4 (25.1) mil
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 Q1-Q3 20: Q1-Q3 Q1-Q3 Finland & Exports EUR million Q3 20 Q3 19 Change 20 19 Change 2019 • Strong monopoly sales, revenue Finland & management and cost savings 5.5
Slide 13: Strong financial position
Strong financial position SOLID NET CASH FLOW FROM OPERATIONS AND LIQUIDITY POSITION Net cash flow from operating activities, MEUR Gearing, % 58,4 % 58,1 % 59,1 % 57,9 % 31,6 % 33,2 % 24,5 % Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 19,1 % 20,0 % Net cash flow from operating
Slide 14: Concluding remarks and Q&A
6 NOVEMBER 2020 Concluding remarks and Q&A CEO PEKKA TENNILÄ
Slide 15: Forming a leading wine and spirits brand house in the Nordics
Forming a leading wine and spirits brand house in the Nordics MERGER OF ALTIA AND ARCUS • A statutory cross-border absorption merger whereby Arcus ASA is merged into Altia Plc • The name of the new company will be ANORA GROUP, it will be headquartered in Helsinki and listed on Nasdaq Helsinki with a
Slide 16: Updated guidance provided
Updated guidance provided DESPITE THE ESCALATED UNCERTAINTIES, ALTIA IS PROVIDING AN UPDATED GUIDANCE FOR 2020 • Towards the rest of the year, the uncertainties related to COVID-19 have escalated and the negative impacts on Altia’s last and most important quarter are expected to be substantial. • Th
Slide 17: Q&A
Q&A Use *6 to mute or unmute microphone on your telephone Raise your hand Chat 19.8.2020 17
Slide 18: Summary
Summary Strong third quarter Guidance In the monopolies updated: volumes have 2020 comparable remained at record- EBITDA expected high level to be higher than in 2019
Slide 19: Thank you
Next events 12 Nov: EGM Thank you www.altiagroup.com IR: tua.stenius-ornhjelm@altiacorporation.com
Slide 20: Appendices
Appendices 29.4.2020 20
Slide 21: Key ratios
KEY RATIOS EUR million Q3 20 Q3 19 Q1-Q3 20 Q1-Q3 19 2019 Net sales, EUR million 86.6 84.5 235.9 249.5 359.6 Comparable EBITDA, EUR million 14.6 11.4 33.4 25.1 44.8 % of net sales 16.9 13.5 14.2 10.1 12.4 EBITDA, EUR million 8.8 9.8 26.8 23.3 43.1 Comparable operating result, EUR million 10.3 6.9 20
Slide 22: Quarterly net sales and comparable EBITDA by segment
QUARTERLY NET SALES AND COMPARABLE EBITDA BY SEGMENT Net sales by segment EUR million Q3 20 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 & 29.8 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
Slide 23: Shareholder structure
Shareholder structure AS AT 31 OCTOBER 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 6% 3 Varma Mutual Pension Insurance Company 1 050 000 2.9 Non-profit Rest of the