Elopak Asa · OSL:ELO
Elopak Asa — Q3 2023 Earnings Presentation
29 slides from Elopak Asa's earnings presentation, Nov 2, 2023
Slide 1: Q3 2023 Quarterly presentation
Q3 2023 Quarterly presentation NOVEMBER 2, 2023
Slide 2: Disclaimer
Disclaimer Certain statements included in this announcement contain forward -looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Elopak management concerning plans, objectives and strategies, such as planned expansio
Slide 3: Elopak at a glance
Elopak at a glance Group Historical revenue development1 1 112 Russia 1 024 940 910 909 906 909 872 85 The world’s largest player in fresh liquid carton packaging 856 778 780 781 769 776 14 billion cartons produced in 2022 855 Sales to 70+ markets 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 4: We're in the business of sustainable packaging
I We’re in the business of sustainable packaging
Slide 5: We're in the business of protecting essential commodities
I We’re in the business of protecting essential commodities
Slide 6: We're in the business of enabling world nutrition
I We’re in the business of enabling world nutrition
Slide 7: We're in the business of replacing plastics
I We’re in the business of replacing plastics
Slide 8: Our commitment to environmental, social, and ethical excellence
Our commitment to environmental, social, and ethical excellence in our business conduct places us in the top 2% of all rated companies worldwide Our product certifications Our commitments Our recognitions
Slide 9: Q3 2023 Business performance
Q3 2023 Business performance CEO Thomas Körmendi
Slide 10: Another quarter with very strong performance
Another quarter with very strong performance Q3 2023 Business highlights Revenue at 278 EURm Adjusted EBITDA of Americas: increasing footprint EMEA: strong growth and Revenue at 283 EURm 8% YoY growth Adjusted 42 EURmEBITDA of 48 EURm Americas: strongtointerest with new plant start in EMEA: solid gr
Slide 11: Financial highlights
Financial highlights Q3 2023 strong revenue and EBITDA growth Group revenues (EURm) Group adjusted EBITDA (EURm) +12% 11.8% 17.0% 11.0% 15.5% Adj. EBITDA Margin % 845 757 +57% 131 +4% +51% 83 272 283 48 32 Q3 YTD Q3 YTD ▹ Q3 2023 organic* revenue growth of 13 EURm, 5% YoY ▹ Strong EBITDA growth quar
Slide 12: Business update: EMEA
Business update: EMEA Solid Q3 23 performance – growth mainly driven by pricing, as well as acquired business Revenues (EURm) - EMEA Key commentary +11% ▹ Stable Pure-Pak® volumes in the quarter. Increase in placement of filling machines indicates future growth 651 588 ▹ Roll Fed growth mainly suppo
Slide 13: Business update: Americas
Business update: Americas Continued growth from onboarding of new fresh dairy and juice customers Revenues (EURm) - Americas Key commentary +12% ▹ Continued market share growth despite macro-headwinds currently impacting consumption 210 ▹ Successful onboarding of new customers and organic growth 188
Slide 14: Five profitable growth drivers steer Elopak's future direction
Five profitable growth drivers steer Elopak’s future direction TODAY MID TO LONG TERM GOAL FRESH BROADEN ASEPTIC GROWTH PLASTIC TO CARTON COMMERCIAL OPPORTUNITY GEOGRAPHIC ROADMAP CONVERSION EXCELLENCE IN NORTH AMERICA FOOTPRINT Global fresh Execute Americas Growth on the MENA: profitable Non-food g
Slide 15: Plastic to carton: subscribing brands in D-PAK
Plastic to carton Revolutionizing purchasing of household products through subscribing brands in D-PAK™ cartons “We’re always looking for new and exciting ways to innovate our products to be better for the planet and more convenient for our customers, and Elopak’s D-PAK™ carton is an instrumental ne
Slide 16: Freshways launches new LoveMilk brand
Plastic to carton Freshways launches new LoveMilk brand as a response to reducing plastic waste “It is our responsibility as a major dairy supplier to the UK to help reduce the damage to the environment from plastic waste, and with the support of Elopak we will do this one milk carton at a time. Lov
Slide 17: A look at India
A look at India
Slide 18: Leveraging the vast growth opportunities in the world's largest dairy market
Leveraging the vast growth opportunities found in the word’s largest dairy market ▹ Huge market with traditional appetite for dairy products – 1.4 billion people with median age 31 – 293 million households and growing middle class ▹ Regulatory developments focusing on improving sustainability – 2022
Slide 19: Our India operations are performing ahead of plan
Our India operations are performing ahead of plan Ambition Q1 2022 Status Q3 2023 Investment Investment ▹ Total equity contribution in 2022 will be 16 EURm, for the ▹ 13 EURm injected so far setup of a packaging material plant ▹ Decision to expand Roll Fed printing capacity further to ▹ First step i
Slide 20: 2030 ambition in India
Elopak entered the market in 2022 through its joint venture ‘GLS Elopak’ 2030 ambition Through high technical product know-how, we have already set a standard for delivering reliable product quality - and further aim to: ▹ Be among the top 3 players ▹ Increase our offering towards a full solution pr
Slide 21: Q3 2023 Financial performance
Q3 2023 Financial performance CFO Bent Kilsund Axelsen
Slide 22: Adjusted EBITDA, Q3 2023
Adjusted EBITDA, Q3 2023 Margin recovery continues in Q3 from pricing and continued growth in Americas Adjusted EBITDA (EURm) and Adjusted EBITDA margin (%) Key commentary EMEA EMEA Americas ▹ Positive EBITDA development from price increases in the beginning of the year combined with stabilization o
Slide 23: Adjusted EBITDA, Q3 2023
Adjusted EBITDA, Q3 2023 EBITDA development supported by pricing, growth in Americas, and entry to new markets Adjusted EBITDA and EBITDA Margin % Quarterly (EURm) +16 EURm +51% 1.0 2.8 0.4 0.8 17.6 48.3 32.0 17.0% 11.8% Q2 2022 Net Revenue Mix Raw materials* Operations FX** Other Q2 2023 Adj. EBITD
Slide 24: Cash flow YTD 2023
Cash flow YTD 2023 Strong cash from operations funding dividends and plant investments, as well as down-payment of debt Cash flow from operations Cash flow to investments Cash flow from financing -5 -16 46 0 -20 6 -20 -21 82 -51 0 26 29 Cash at Profit Depreciation, Change Other Acquisitions Purchase
Slide 25: Financial position
Financial position Leverage ratio in line with mid-term target of 2.0x Leverage ratio Key commentary Net Debt Leverage (mEUR) Ratio Net debt of 348 EURm 400 391 386 5.0 ▹ Bank debt 252 EURm 363 367 4.5 ▹ Lease liabilities 96 EURm 347 348 350 340 91 96 318 81 91 4.0 300 78 74 Leverage ratio improved
Slide 26: Outlook 2023
I Outlook 2023 ▹ Despite inflationary pressure, we expect a strong end of the year ▹ Full year revenue growth expected above 1.1 EURbn – growth well above mid-term target of 2-3% organic ▹ Full year EBITDA above 170 EURm
Slide 27: Summary
I IMAGES TO BE UPDATED Summary ▹ Elopak continues to demonstrate its strong ability to maneuver through volatile market conditions ▹ In Q3, we improved and developed our business further, and delivered a very strong financial result ▹ Despite macro-headwinds, we are confident of a strong 2023 and op
Slide 28: Financial calendar
I Financial calendar Event 2024 dates Q4 2023 February 15 Annual Report 2023 April 10 Q1 2024 May 8 Annual General Meeting May 14 Q2 2024 August 15 Q3 2024 October 30
Slide 29: Thank you!
Thank you!