Bewi ASA · OSL:BEWI
Bewi ASA — Q3 2020 Earnings Presentation
31 slides from Bewi ASA's earnings presentation, Nov 11, 2020
Slide 1: Presentation of Q3 2020 results
Presentation of Q3 2020 results CEO Christian Bekken, CFO Marie Danielsson 11 November 2020 Confidential
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation, prepared by BEWi ASA (the "Company"), may contain statements about future events and expectations that are forward- looking statements. Any statement in this presentation that is not a statement of historical fact including, wit
Slide 3: Company overview and strategy
1 Company overview and strategy
Slide 4: Provider of packaging, components & insulation solutions
Provider of packaging, components & insulation solutions ▪ Diversified across business segments, regions, end markets and customers ▪ Proven buy-and-build strategy, continued focus on growth, both organic & M&A ▪ Frontrunner in innovation and sustainability 4
Slide 5: Operating through three core segments
Operating through three core segments RAW Packaging & Components Insulation Production of white and grey EPS and BioFoam, which Manufacturing standard and customised packaging Manufacturing of an extensive range of insulation is further developed into end market products solutions for many industria
Slide 6: A wide selection of products
A wide selection of products Automotive components Components: Bike helmets Food packaging Insulation: Roof systems Protecting people and goods for a better everyday
Slide 7: A wide selection of products
A wide selection of products Components: Lifebuoy Components: Child seats and bike helmets Protecting people and goods for a better everyday
Slide 8: BEWi in key figures
BEWi in key figures EURm EURm EURm # kt # 429.9 51.8 31.4 38 200 ~1,400 net sales1 adj. EBITDA1 adj. EBITA1 plants annual EPS FTEs production capacity employed kt SEKm # % # # 20 100 8 45 19 4 run-rate invested recycling M&A CAGR2 M&As Circular recycling capacity in recycling plants since 2014 M&A-d
Slide 9: 40 years of M&A and successful integration
40 years of M&A and successful integration 2014 2016 2017 Merger between Investment in Acquisition of Finnish XPS BEWi and extruding producer M-Plast and the Swedish StyroChem into technology in packaging operations of Por-Pac BEWi Group Porvoo, Finland 2018 2019 2019 2020 2020 2020 BEWi acquires La
Slide 10: BEWi's M&A strategy takes various forms
BEWi’s M&A strategy takes various forms… Minority interests Established European presence BDH rationale establishing new footholds through several acquisitions cementing existing presence 1 Exposure to the three largest economies in Europe 1 Increased market share in Norway 2 Increased operational g
Slide 11: Annual recycling target of 60,000 tons to secure full circularity
Annual recycling target of 60,000 tons to secure full circularity 2018 Current 2021 BEWi’s recycling footprint BEWi Circular: 8 recycling facilities: Initiatives to reach target recycle rate: Recycling facilities BEWi launches Circular Focus areas in October 2018 with a 2x 1 Circular M&A vision to a
Slide 12: Third quarter 2020 highlights
2 Third quarter 2020 highlights
Slide 13: Third quarter 2020 highlights
Third quarter 2020 highlights Third quarter of 2020 EUR million 16% 120 ▪ Sales growth of 13.7% from Q319, mainly driven by acquisitions 14.7 14% ▪ Solid earnings improvement, all segments contributing positively 100 ▪ Acquisition BDH completed, integration on track 12.0 12% ▪ Divested real estate i
Slide 14: Diversified business model proven resilient
Diversified business model proven resilient Net sales Q3 2020 Automotive 5% Other Norway 24 % 21 % Food packaging RAW 22 % 29 % Packaging & Other packaging Components and components 41 % 22 % Portugal & Spain 6% Netherlands 18 % Finland 6% Insulation, Germany Insulation infrastructure etc 7% Denmark
Slide 15: RAW: Stable volumes and improved earnings
RAW: Stable volumes and improved earnings Third quarter 2020 Net sales and Adj. EBITDA margin EUR 60 million ▪ Net sales of EUR 44.6 million, down by 15.3% due to lower raw material prices 10,00% 8.8% o Volumes in line with Q319, more sold externally, incl. increased sales to associated companies 8,
Slide 16: P&C: Stable earnings, various market developments
P&C: Stable earnings, various market developments Third quarter 2020 Net sales and Adj. EBITDA margin ▪ Net sales of EUR 50.2 million, 27.1% growth driven by acquisitions and a 5% increase in 60 25,00% EUR million volumes 19.5% 20,00% 18.5% o Higher volumes in all regions except Norway, where volume
Slide 17: Insulation: Volumes stable in Nordics, lower in Benelux
Insulation: Volumes stable in Nordics, lower in Benelux Third quarter 2020 Net sales and Adj. EBITDA margin EUR 38 million 25,00% ▪ Net sales of EUR 36.9 million, 7.3% growth explained by acquisitions 37 20,00% o Volumes stable in the Nordics, lower in Benelux 16.0% 36 15.6% 15,00% o Noted a positiv
Slide 18: BDH's product portfolio strengthens position in Norway
BDH’s product portfolio strengthens position in Norway BDH in brief Overview of BDH operations Production facility Sales office/storage ▪ Leading turnkey supplier of packaging in Norway ▪ Frontrunner in the transformation to a circular economy ▪ Operations will mainly be part of Packaging & Componen
Slide 19: BDH comprises four main brands
BDH compromise four main brands Company Established 1947 1947 1919 1998 Sales offices in Trondheim (HQ), Sales offices in Hokksund (HQ), Production and sales office Production and sales office Locations Tromsø, Askim and Levanger. Ålesund, Båtsfjord, Tromsø. in Stjørdal in Fredrikstad Production in
Slide 20: BDH: Targeting annual synergies of EUR 2.3-4.5m
BDH: Targeting annual synergies of EUR 2.3-4.5m Identified synergy drivers and action plan Target annual synergies (SEK) One-off costs Capitalize on existing expertise and 1-2% of BDH COGS cost base structure/processes within BEWi… 10-15% of BDH IT cost base Procurement and IT EUR 0.05m …and harmoni
Slide 21: Divestment of real estate releasing capital for growth
Divestment of real estate releasing capital for growth ▪ Divestments support long-term strategy for growth and expansion of circular activities - Release cash/ capital - Increase financial flexibility ▪ Divestment of certain real estate properties in Denmark for ~SEK 100 million ▪ Announced intentio
Slide 22: Financials
3 Financials
Slide 23: Financials - Overview of BEWi
Financials - Overview of BEWi EUR million 15% 10% 12% 7% 107.4 122.1 17.9 12.9 12.0 7.8 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Net sales Adj. EBITDA Adj. EBITA ~29% ~41% ~29% RAW Packaging & Components Insulation 20% 19% 12% 12% 9% 7% 12% 12% 1% 0% 19.0 9.4 9.3 7.7 6.0 39.5 50.2 4.9 5.9 33.
Slide 24: Financials – Consolidated P&L
Financials – Consolidated P&L Q3 2020 Q3 2020 YTD 2020 YTD 2019 2019 Third quarter 2020 Amounts in EUR million ▪ Net sales EUR 122.1 million, 13.7% growth o Growth driven by acquisitions Net Sales 122.1 107.4 332.3 325.9 429.9 Other operating income - 0.2 0.0 0.7 0.9 o Some Q3 volumes regarded as re
Slide 25: Financials – Capital structure
Financials – Capital structure Leverage: Net debt/ EBITDA ratio* ▪ Net debt EUR 184.6 million at 30 September 2020 EUR million o EUR 130.0 million excluding IFRS 16 2.8 2.8 2.9 2.7 2.4 2.4 2.2 ▪ Acquisitions** during 2020 impact net debt negatively ▪ Unutilised credit facility of SEK 200 million ▪ D
Slide 26: Financials – Cash flow
Financials – Cash flow EUR million 22.9 ▪ Operating cash flow of EUR 10.8 million 19.4 o Lower than Q319 due do less cash release from WC ▪ CAPEX of EUR 4.9 million in Q320 o EUR 1.4 million related to Greenfields (Senja and 10.8 Circular Portugal) 7.6 7.5 o EUR 1.5 million related to expansion Q119
Slide 27: Key financial targets
Key financial targets Q320 • Mix of organic, incl. Greenfields and M&A growth Revenue growth >10% 13.7% • 45% CAGR between 2012 and 2019, largely driven by acquisitions • Significant changes in raw material prices may impact the ability to achieve the target Q320 EBITDA Margin 10-15% 14.7% • Underly
Slide 28: Summary and outlook
yas . 4 ty » 4. 5 = Bs >? ‘ > S + ah . ‘ welhat a 4 oP i : , ’ , Thi te >” ? , a s Summary and outlook
Slide 29: Summary and outlook
Summary and outlook ▪ Solid operational performance and resilient business model ▪ Earnings improvement from all segments ▪ Continued growth through M&A initiatives, Greenfield projects and expansion of existing business ▪ Remain committed to reaching annual recycling target of 60,000 tonnes, securi
Slide 30: Key investment highlights
Key investment highlights 1 Attractive markets growing on the back of global megatrends 2 Integrated, flexible and circular value chain ensuring sustainable profitability 3 Earnings resilience from diversified revenue base 4 Successful M&A compounder with quality prospects in sight 5 Timely focus on
Slide 31: Thank you
BcWi ASA THANK YOU BEWiSynbra.com