Vidrala Sa · BME:VID
Vidrala Sa — Investor Presentation (May 2018)
24 slides from Vidrala Sa's investor presentation, May 2018
Slide 1: Company Presentation May 2018
COMPANY PRESENTATION MAY 2018
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
Slide 4: Vidrala, at a glance
VIDRALA, AT A GLANCE Vidrala manufactures glass containers for a wide variety of products in the food and beverage industry. We are one of the main glass container manufacturer in Western Europe, leaders in the Iberian market, co-leaders in the British market and supplier of reference in Italy, Fran
Slide 5: Main figures FY 2017
MAIN FIGURES FY 2017 2017 REPORTED SALES EBITDA EARNINGS FREE CASH FLOW 822.7 195.4 3.61 108.5 EUR million EUR million EUR per share EUR million +2.4% like-for-like +10.5% like-for-like +31.9% +5.8% SALES EBITDA 2017 PRO FORMA ≈923 EUR million ≈222 EUR million CREATING VALUE AND FUTURE IN A SUSTAINA
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. 1.000 30% 800 20% 600 400 10% 200 0 0% 2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2016 2017 2017pf 2015 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 8: Cash profile
CASH PROFILE EBITDA. FREE CASH FLOW. Since 2011, EUR million. Since 2011, EUR million. 250 120 100 200 80 150 60 100 40 50 20 0 0 2011 2012 2013 2014 2015 2016 2017 2017pf 2011 2012 2013 2014 2015 2016 2017 55% CASH CONVERSION OF EBITDA 2011-2017 VALUE CREATION, MATERIALISED IN A SUSTAINED CASH GENE
Slide 9: Financial profile
FINANCIAL PROFILE DEBT. Six-monthly evolution of debt since 2015, EUR million and times EBITDA. 2.9x 750 3x 2.5x 600 2.2x 2.2x 1.9x 2x 450 1.6x Acquisition of Santos Barosa EUR 252.7 300 million (EV) 474 487 1x 404 370 150 322 299 0 0x jun-15 dec-15 jun-16 dec-16 jun-17 dec-17 ON THE BASIS OF A SOLI
Slide 10: Earnings profile
EARNINGS PROFILE EARNINGS PER SHARE. Since 2011, EUR per share. 4,0 3,0 2,0 1,0 0,0 2011 2012 2013 2014 2015 2016 2017 10
Slide 11: Shareholder remuneration
SHAREHOLDER REMUNERATION CASH DIVIDENDS. Since 2000, EUR million. 30 +20.5% 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 A DIVIDEND POLICY FOCUSED ON LONG TERM STABILITY 11
Slide 12: 2017 results distribution
2017 RESULTS DISTRIBUTION PROPOSED DIVIDEND PAYMENTS FOR 2018. EUR cents per share. February 14th, 2018 Interim dividend EUR 69.67 +20% cents per share YoY change July 14th, 2018 Complementary dividend EUR 26.52 +20% cents per share YoY change + EUR 4.00 cents per share as attendance bonus to the sh
Slide 13: Business fundamentals
BUSINESS FUNDAMENTALS Understanding the european glass packaging industry
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 production
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 PER CAPITA (KG) GLASS PAC
Slide 16: Product fundamentals
PRODUCT FUNDAMENTALS GLASS, THE BEST OPTION 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
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
COMPETITIVE LANDSCAPE EVOLUTION OF MARKET SHARES IN WESTERN EUROPE. 2017 vs 1990. TOP 4 PLAYERS 1990 TOP 4 PLAYERS 2014 14% 20% 29% 13% 20,0% 58% 1990 2017 12% 29,1% 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 CONSOLIDATIO
Slide 19: Financials
FINANCIALS Latest earnings release
Slide 20: Q1 2018 results: sales
Q1 2018 RESULTS SALES. YoY change, EUR million. +19.2% YoY 250 +3.6% -0.8% +16.1% 200 212.4 218.2 182.9 150 100 50 0 Q1 2017 Santos Q1 2017 Organic FX Q1 2018 reported Barosa like-for-like Q1 2017 EUR/GBP: EUR/GBP: 0.8601 0.8834 20
Slide 21: Q1 2018 results: EBITDA
Q1 2018 RESULTS EBITDA. YoY change, EUR million. +23.8% YoY 60 +7.3% -0.4% +15.8% 51.3 45 48.0 41.5 30 15 0 Q1 2017 Santos Q1 2017 Organic FX Q1 2018 reported Barosa like-for-like Q1 2017 EUR/GBP: EUR/GBP: 0.8601 0.8834 21
Slide 22: Q1 2018 results: EBITDA margin
Q1 2018 RESULTS EBITDA MARGIN. YoY change, as percentage of sales. 25% 23.5% 23% 22.7% 21% 19% 17% 15% Q1 2017 Q1 2018 reported 22
Slide 23: 2018 outlook
2018 OUTLOOK Actuals Last Twelve Months Full Year 2018 Full Year at March 2018 Trends 2017 Sales +5.1% YoY organic +5.5% YoY organic Modest growth in sales volumes and prices. growth like-for-like like-for-like Operating 23.8% 23.9% Moderate gradual expansion, FY 2018 margins EBITDA/sales EBITDA/sal
Slide 24: Vidrala, S.A. Investor Relations
VIDRALA, S.A. Investor Relations Tel: +34 94 671 97 50 atencion_al_inversor@vidrala.com www.vidrala.com