Vidrala Sa · BME:VID
Vidrala Sa — Investor Presentation (April 2021)
35 slides from Vidrala Sa's investor presentation, April 2021
Slide 1: Company Presentation April 2021
COMPANY PRESENTATION APRIL 2021
Slide 2: Disclaimer
DISCLAIMER This presentation includes or may include representations or estimations concerning the future about intentions, expectations or forecasts of VIDRALA or its management. which may refer to the evolution of its business performance and its results. These forward-looking statements refer to
Slide 3: Index
INDEX 1. GENERAL OVERVIEW 2. BUSINESS FUNDAMENTALS 3. FINANCIALS 4. TARGETS 5. ANNEXES 3
Slide 4: Vidrala, at a glance
VIDRALA, AT A GLANCE SUPPLIER OF REFERENCE IN THE PACKAGING INDUSTRY Vidrala is a consumer packaging company. We make glass containers OVER 47% for food and beverages products and offer a wide range of packaging 3,500 USE OF services that include logistic solutions and filling activities. EMPLOYEES
Slide 5: Main figures FY 2020
MAIN FIGURES FY 2020 SALES EARNINGS 988.4 EUR million 5.62 EUR per share -1.7% YoY organic +12.0% YoY EBITDA FREE CASH FLOW 279.8 EUR million 140.0 EUR million 28.3% EBITDA margin 14.2% FCF over sales CREATING VALUE AND FUTURE IN A SUSTAINABLE WAY 5
Slide 6: Our history
OUR HISTORY 1965 The origin of Vidrala 1965 - Vidrala begins operations in Alava (Spain) 1975 Vidrala goes public 1985 1985 - IPO Madrid and Bilbao stock exchanges Domestic expansion 1989 - Second greenfield in Albacete (Spain) 1995 Internationalisation 2003 - Acquisition of one plant in Portugal 20
Slide 7: Operating profile
OPERATING PROFILE NET SALES. EBITDA MARGIN. Since 2000, EUR million. Since 2000, as percentage of sales. 1.200 30% 1.000 25% 800 20% 600 15% 400 10% 200 5% 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2000 2001 2002 2003 2004 2005 2006
Slide 8: Cash profile
CASH PROFILE EBITDA. FREE CASH FLOW. Since 2011, EUR million. Since 2011, EUR million. 300 160 250 140 50% CASH CONVERSION 120 OF EBITDA 2011-2020 200 100 150 80 60 100 40 50 20 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 VALUE CREATION, MA
Slide 9: Financial profile
FINANCIAL PROFILE FINANCIAL SOLVENCY. Year-over-year evolution of debt since 2015, EUR million and times EBITDA. 800 3x 2.5x 2.2x 600 1.9x 1.7x 2x 400 1.2x 0.8x 1x 487 200 404 411 322 335 233 0 0x Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 ON THE BASIS OF A SOLVENT FINANCIAL STRUCTURE Debt/EBITDA rat
Slide 10: Earnings profile
EARNINGS PROFILE EARNINGS PER SHARE. Since 2011, EUR per share. 6,0 4,0 2,0 0,0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 10
Slide 11: Dividend policy
DIVIDEND POLICY CASH DIVIDENDS. Since 2000, EUR million. 40 +5% 30 20 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 A DIVIDEND POLICY FOCUSED ON LONG-TERM STABILITY ANNUAL GROWTH, COHERENT WITH PREVAILING BUSINESS CONDITIONS Includ
Slide 12: Shareholder remuneration
SHAREHOLDER REMUNERATION EXPECTED 2021 DIVIDEND PAYMENTS SHAREHOLDER REMUNERATION Proposed FY 2020 results distribution Since 2018, EUR million Dividend* Share buy-back February 15th, 2021 60 Interim dividend EUR 84.30 cents per share 50 40 July 14th, 2021 Complementary dividend 30 EUR 32.09 cents p
Slide 13: Business fundamentals
BUSINESS FUNDAMENTALS Understanding the european glass packaging industry 13
Slide 14: Industry fundamentals
INDUSTRY FUNDAMENTALS 1 LOGISTICS. Local sales nature. Natural characteristics of hollow glass containers limit logistics. Customers’ packaging activity demands service on time and supply flexibility. Proximity to the customer and service quality determines sales capabilities. 2 CONTINUOUS PROCESS.
Slide 15: Demand fundamentals: glass packaging market in Europe
DEMAND FUNDAMENTALS The glass packaging market in Europe Our key geographical regions SOLID AND STABLE STRATEGIC MARKETS FOR THE SECTOR Glass containers demand in Europe vs GDP. Glass packaging production vs GDP per capita. Annual variation (accumulated), base year 2000. 70 GLASS PACKAGING PRODUCTIO
Slide 16: Product fundamentals
PRODUCT FUNDAMENTALS Environmentally friendly Glass is a 100% recyclable material that can be shaped over and over again without losing any of its properties or advantages. The healthiest type of packaging It is a completely hygienic material, impervious to gases, vapour, and liquid, thereby protect
Slide 17: Vidrala fundamentals
VIDRALA FUNDAMENTALS Vidrala’s commercial positioning is focused on geographic regions and product segments of long-term strategic value. Vidrala sells its products to a strong customer base composed of a solid balance between blue chip customers, multinational brand owners and domestic packagers. 2
Slide 18: Competitive landscape (1)
COMPETITIVE LANDSCAPE (1) EVOLUTION OF MARKET SHARES IN WESTERN EUROPE. 1990 vs 2020. TOP 4 PLAYERS 1990 TOP 4 PLAYERS 2014 14% 20% 29% 13% 20,0% 58% 1990 12% 29,1% 2020 11,5% 15% 8% 12,0% AVIR 29% 8,0% 13,3% 2% 1,8% 28,6% TOP 4 PLAYERS: 41,8% TOP 4 PLAYERS: 82,6% A DYNAMIC ATTITUDE TOWARDS CONSOLID
Slide 19: Competitive landscape (2)
COMPETITIVE LANDSCAPE (2) LOCATION OF PRODUCTION SITES Internal sources. Some facilities, especially in Eastern Europe, are not identified in the map. 19
Slide 20: Financials
FINANCIALS Latest earnings release 20
Slide 21: Q1 2021 results | Sales
Q1 2021 RESULTS | Sales SALES. YoY change, EUR million. 300 -3.3% -0.3% 250 243.7 234.9 200 150 100 50 0 Q1 2020 Organic FX Q1 2021 change effect 21
Slide 22: Q1 2021 results | EBITDA
Q1 2021 RESULTS | EBITDA EBITDA. YoY change, EUR million. 75 +4.1% -0.2% 59.9 62.2 50 25 0 Q1 2020 Organic FX Q1 2021 change effect 22
Slide 23: Q1 2021 results | EBITDA margin
Q1 2021 RESULTS | EBITDA margin EBITDA MARGIN. YoY change, as percentage of sales. 28% 26.5% 26% +191 bps 24.6% 24% 22% Q1 2020 Q1 2021 23
Slide 24: Q1 2021 results | Debt
Q1 2021 RESULTS | Debt NET DEBT. YoY evolution since 2018, in EUR million and times EBITDA. 700 2,5x 2.2x 600 2,0x 1.7x 500 1,5x 400 1.1x 300 1,0x 503 0.7x 200 426 313 0,5x 100 210 0 0,0x Mar-18 Mar-19 Mar-20 Mar-21 24
Slide 25: FY 2021 outlook
FY 2021 OUTLOOK Actuals Last Twelve Months Full Year 2021 Full Year at March 2021 Trends 2020 Modest volume growth, more intense in Q2 due Sales -1.7% YoY -2.5% YoY to the low comparison basis. Full recovery still variation organic organic depending on the evolution of the pandemic and the path of r
Slide 26: Targets
TARGETS Business profitability and cash generation 27
Slide 27: Operational targets
OPERATIONAL TARGETS Capacity utilization. EBITDA margin 100% 75% 50% Operational 28.3% 25% leverage 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 Pack-to-melt ratio. 90% Target 85% 23.0% 80% Internal efficiency 70% 20.1% Site 1 Site 2 Site 3 Site 4 Site 5 Site 6 Site 7 Site 8 EBITDA margins. 40% 2
Slide 28: Sustained cash generation
SUSTAINED CASH GENERATION Historical cash profile. 5-year accumulated average rates, as percentage of sales. ≈25% >50% CASH CONVERSION OF EBITDA 2016-2020 ≈9% ≈2% ≈1% ≈13% EBITDA Capex WC & Financial FCF others expense CASH GENERATION MATERIALISATION OF VALUE 29
Slide 29: Return on capital employed
RETURN ON CAPITAL EMPLOYED 20% 15% 15.6% 14.5% 11.5% 11.9% 10% 11.4% 10.3% 9.4% 9.4% 7.9% 5% 0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 FOCUS ON BUSINESS PROFITABILITY RoCE is calculated as EBIT post-tax divided by capital employed. See used formula: [EBIT * (1-t)] / (equity + net debt) 30
Slide 30: Annexes
ANNEXES A general overview of the most recent acquisitions 31
Slide 31: Annex I. Acquisition of Encirc (2015)
ANNEX I. Acquisition of Encirc (2015). Encirc Glass is a glass packaging manufacturer for the food and beverage markets in UK and Ireland. It is the sole player in Ireland and the second player within the UK (market share >30%). The DERRYLIN plant (Northern Ireland), built in 1998, is the only glass
Slide 32: Annex I. Acquisition of Encirc (2015)
ANNEX I. Acquisition of Encirc (2015). QUALITY OF ASSETS High-scale facilities Triple gob and quad gob flexibility Highly modern inspection machines Filling capabilities Fully automated warehouse 33
Slide 33: Annex II. Acquisition of Santos Barosa (2017)
ANNEX II. Acquisition of Santos Barosa (2017). Santos Barosa manufactures and commercialises glass containers. It operates a major production facility located in Marinha Grande, Portugal. The company produces around 400,000 glass tons per year. The agreed transaction price amounts to an enterprise v
Slide 34: Annex III. Financing structure
ANNEX III. Financing structure. 500 452,5 400 300 233,5 200 100 0 Debt as at Immediately 1-12 13-24 25-36 37-48 Beyond Dec 31, available months months months months 48 months 2020 resources Debt maturity profile. Per year, EUR million. Current financing structure Debt / EBITDA ratio Average maturity
Slide 35: Vidrala, S.A. Investor Relations
VIDRALA, S.A. Investor Relations Tel: +34 94 671 97 50 investors@vidrala.com www.vidrala.com