Orkla Asa · OSL:ORK
Orkla Asa — Investor Day (2021)
23 slides from Orkla Asa's investor day presentation, 2021
Slide 1: Orkla Capital Markets Day 2021
Orkla Capital Markets Day 2021
Slide 2: A story of growth…
A story of growth… Excellent people working in a unique corporate culture… Results ….The Penguin Spirit Strategy A long term strategy that stays firm… …Focus on segments and growth People and leadership Unique geographical footprint accelerates growth… …based on a strong position at home Corporate c
Slide 3: Our values are more important than ever…
Our values are more important than ever… Loyalty Care Respect Boldness Morten Fon / Orkla CMD 2
Slide 4: Jotun – a global company – one brand
Jotun today Jotun – a global company – one brand …..with regional strongholds – Middle East, Asia and Scandinavia • Total sales NOK 21.1 bill (reported) • NOK 28.3 bill (100 %) • Operating margin 16.6 % • Fastest growing paint company • 39 factories located on all continents • 120 countries • 10.000
Slide 5: Jotun Protects Property
Jotun strategy Jotun development… TODAY ….is based on our long term strategy Sales New Fast Mature Growing – 4 Segments Norway – Organic growth – Differentiated approach Saudi Turkey Jotun Protects Property Kenya Time Morten Fon / Orkla CMD 4
Slide 6: Segment and regional structure 2020
Name of Segment, Function, Product Segment and regional structure 2020 Sales NOK 28,3 bill* Sales NOK 28,3 bill* Powder Scandinavia 8% North East 12 % Asia 24 % West Europe 10 % Decorative Marine 40 % 26 % East Europe 8% South East Asia 17 % Protective Americas Middle East 26 % 2% 27 % *100 % number
Slide 7: Global Paint Market
Jotun today Global Paint Market Jotun has 3.0 per cent of target market of 99 bill USD Decorative market shares and positions: Global market shares and positions: Middle East and Egypt Scandinavia South East Asia 40% 27% 12% 23% 8% 3% #1 #1 #3 #1 #3 #3 Morten Fon / Orkla CMD 6
Slide 8: The profitable growth story continues
The profitable growth story continues Sales EBITA NOK mill NOK mill 50 000 5 000 NOK 28.3 billion* 45 000 NOK 4.4 billion* NOK 21 billion* 40 000 4 000 NOK 3 billion* 35 000 30 000 3 000 25 000 20 000 2 000 15 000 10 000 1 000 5 000 0 0 *100 % numbers Morten Fon / Orkla CMD 7
Slide 9: Cyclical raw material markets cause volatility in margins
Cyclical raw material markets cause volatility in margins Raw material index Total Gross Margin 12m RM GM% index 55% 140 • We expect the market to level out short term 130 50% • Index up 59% between 120 August 2020 and August 110 2021 45% 100 • Mainly driven by raw 90 material price inflation for 40
Slide 10: So far – so good - What about the future?
So far – so good - What about the future? • Pandemic is not over – preparing • Priorities stays the same • 2020 was very good - 2021 will be decent • Great uncertainty • Raw material prices • Marine New Building • Oil & Gas • Post Corona Morten Fon / Orkla CMD 9
Slide 11: Digitalization and sustainability are key drivers in the future
• Digitalization and sustainability are key drivers in the future Morten Fon / Orkla CMD 10
Slide 12: Iconic new shops – MEIA region
Iconic new Quality shops – MEIA region distribution Iraq Jordan Morten Fon / Orkla CMD 11
Slide 13: Summary
Summary • Proven ability to grow • Growing markets • Excellent footprint • Strategy stays firm • Value creation Morten Fon / Orkla CMD 12
Slide 14: Jotun Protects Property
Jotun Protects Property
Slide 15: Appendix
Jotun Protects Property
Slide 16: Industry; Jotun targets 65% of P&C market
Industry; Jotun targets 65% of P&C market Global composition and Jotun share of target Deco Auto OEM Marine Protective Figures in mill USD Auto Refinish Truck & Bus Segment Global Motorcycle Sector Rail Decorative 73,000 Trailer Deco Aerospace Protective 12,000 Powder Wood Marine 4,000 Coil Powder 1
Slide 17: All time high sales and EBITA year to date
All time high sales and EBITA year to date Sales and sales growth EBITA and EBITA% EBITA Margin Sales Growth 12,3% 10,0% 13,0% 16,3% 15,5% 0% 5% 7% 2% 12% 15 022 15 775 16 934 17 229 19 271 1 843 1 571 2 204 2 801 2 992 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 NOK million, 100 %, fixed rate
Slide 18: Improved sales and results
Improved sales and results …Double-digit sales and EBITA growth in all segments, except Marine Sales by Segment EBITA by Segment 2020 2021 Growth 2020 2021 Growth 15% -3% 18% 28% 11% -41% 38% 72% 8 017 6 991 1 834 1 646 5 085 4 598 4 441 4 292 589 677 1 727 489 1 347 347 78 133 Decorative Marine Pro
Slide 19: Sales growth in all regions
Sales growth in all regions - EBITA growth in 4 of 7 regions Sales by Region Growth% EBITA by Region Growth% MEIA 17% 16% NEA 1% -37% SEAP 16% 27% SCA 2% -8% WE 6% -17% EECA 48% 41% AM 29% 66% 0 2 000 4 000 6 000 - 500 0 500 1 000 1 500 NOK million, fixed rate, Jan-Aug 2021 Morten Fon / Orkla CMD 18
Slide 20: Jotun EBITDA at 19,3% (2020)
Jotun EBITDA at 19,3% (2020) Morten Fon / Orkla CMD 19
Slide 21: Proven track record through times of crisis
Proven track record through times of crisis NOK million Jotun 100% Sales Global equities Index 30 000 700 600 25 000 500 20 000 • A crisis seldom hits all 400 regions and segments at 15 000 China – US Trade war the same time 300 10 000 Oil price COVID-19 200 collapse 5 000 100 Financial Eurozone deb
Slide 22: Jotun – fastest growing last many years
Jotun – fastest growing last many years SALES GROWTH INDEX (Excl. AP) - 2002-2018 425 SW ACQUIRES 375 VALSPAR AKZO divest 325 Speciality Chemicals M&A included NIPPON – NIPSEA MERGE 275 Possible to compete 225 USA and Asia 175 125 75 2002 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 M
Slide 23: Sustainability will receive more focus
Sustainability will receive more focus CO2 per ton reduced by 40% We have tracked and will report on all 5 dimensions* Morten Fon / Orkla CMD 22