Fine Foods & Pharmaceuticals N.t.m. Spa · MIL:FF
Fine Foods & Pharmaceuticals N.t.m. Spa — H1 2020 Earnings Presentation
35 slides from Fine Foods & Pharmaceuticals N.t.m. Spa's earnings presentation, Sep 29, 2020
Slide 1: H1-2020 Results Presentation
H1-2020 Results Presentation 29 September 2020
Slide 2: Disclaimer
Disclaimer This document has been prepared by Fine Foods & Pharmaceuticals N.T.M. S.p.A. for the sole purpose described herein. The information herein is provided on a strictly confidential basis. By receiving this document the recipient undertakes with the Company to maintain the contents of the do
Slide 3: Key Figures
KEY FIGURES H1-2020 H1-2019 REVENUES € 75.4 mln € 83.1 mln EBITDA* € 9.8 mln € 11.2 mln EBITDA MARGIN* 13% 13.4% NET INCOME** € 3.6 mln € 4.2 mln * Ebitda Adjusted for non recurring costs amounting to 0.7€m in H1-2020 and 1.4€m in H1-2019 ** Adjusted for non recurring costs, net of tax effec
Slide 4: Turnover Highlights
TURNOVER HIGHLIGHTS H1-2020 at € 75.4 mln (-9.4%) affected by COVID-19 Q3-20 +22% compared to the same period of ‘19 YTD at the end of September above same period of ‘19 Historical annual growth trend expected for 2020 4
Slide 5: Fine Foods & Pharmaceuticals N.T.M. S.p.A.
Fine Foods & Pharmaceuticals N.T.M. S.p.A. Fine Foods & Pharmaceuticals N.T.M. S.p.A. (“Fine Foods”) is a CDMO (Contract Development & Manufacturing Organization) of solid oral forms, for the Nutraceutical and Pharmaceutical industries TABLETS CAPSULES EFFERVESCENT GRANULES EFFERVESCENT POWDERS TABL
Slide 6: Examples of Products Manufactured for Reference Clients
Examples of Products Manufactured for Reference Clients PHARMACEUTICALS NUTRACEUTICALS 6
Slide 7: Acquisition and Retention of Key Loyal Clients
Acquisition and Retention of Key Loyal Clients 2010 2002 \\ RETAINED KEY CLIENTS ACQUIRED BEFORE 2002 AND ADDED SEVERAL NEW ONES AFTERWARDS 7
Slide 8: Fine Foods Key Figures
Fine Foods Key Figures More than 100 Revenues CAGR of 12% Ca. 71% of products customers, including over the last 10 years sold in 2019 has been leading Pharmaceutical delivered abroad (1) and Nutraceutical players 102 manufacturing lines Ca. 10% of employees Ca. 1.300 SKUs(2), in 1 Pharmaceutical Pl
Slide 9: Focus on European Nutraceuticals Market
Focus on European Nutraceuticals Market EUROPEAN NUTRACEUTICALS MARKET VALUE EUROPEAN VITAMINS & DIETARY SUPPLEMENTS MARKET VALUE (€bn) CAGR (€bn) CAGR 4.9% CAGR CAGR 5.2% 65.1 ’16-’20 ’20-’24 5.5% 18.5 4.5% 53.8 18.5 Vitamins & 15.1 Dietary 5.5% 5.2% 45.2 Supplements 12.2 15.1 12.2 Functional 20.2
Slide 10: Focus on European Pharmaceuticals Market and CDMO
Focus on European Pharmaceuticals Market and CDMO EUROPEAN PHARMACEUTICALS MARKET VALUE EUROPEAN CDMOS (PHARMA) MARKET VALUE (€bn) (€bn) 9.0 CAGR CAGR 5.2% ‘10-’18 6.3% 3.2 3.5% 487 6.0 Other 3.7% (36%) 382 333 2.4 1.7 France 5.6% (40%) (19%) 1.1 2.0 Germany 6.6% (18%) (22%) 1.2 (20%) 2.1 Italy 6.2%
Slide 11: Performance Relative to Reference End-Markets
Performance Relative to Reference End-Markets Nutraceuticals and Pharmaceuticals markets show high steady growth and resilience during recessions Fine Foods has substantially outgrown its reference end-markets in the last decade, with 2019 sales at 3.2 x the 2009 level Revenues 160 €m 350 300 250 Fi
Slide 12: Revenues break-down
REVENUES break-down REVENUES 83.1 75.4 119.6 30/06/2019 30/06/2020 Variance in Revenues mainly due to the decrease in Food sector for the postponement of sales to H2-20 FOOD PHARMA 63.1 54.1 20 21.2 30/06/2019 30/06/2020 30/06/2019 30/06/2020 12
Slide 13: EBITDA reported and adjusted
EBITDA margin Adj. at 13% in line with historical trend 11.8% 12.1% REPORTED Contraction in marginality EBITDA REVENUES 9.8 9.1 due to inefficiencies related to COVID mitigated by the 119.6 efficiency measures implemented in the new plants 30/06/2019 30/06/2020 ** 0.7 €m adjustment: • 0.5 €m for Cov
Slide 14: EBIT reported and adjusted
EBIT hit by depreciation increase following strong extraordinary Capex 5.2% 3.3% REPORTED REVENUES EBIT 4.3 2.5 Decrease in EBIT (both 119.6 Reported and Adjusted) mainly due to the increase in 30/06/2019 30/06/2020 depreciations (about 1.4 €m) as a consequence of recent years extraordinary Capex in
Slide 15: Net Income reported and adjusted
NET INCOME only marginally impacted by H1-2020 extraordinary events 3.9% 4.1% NET INCOME REPORTED REVENUES 3.2 3.1 Positive Result in H1-2020 119.6 despite Covid impact 30/06/2019 30/06/2020 5.1% 4.8% ** 0.5€m adjustment (net of tax NET INCOME ADJUSTED effect) 4.2 *1.0€m adjustment (net of tax 3.6 e
Slide 16: Healthy Capital Allocation
Healthy Capital Allocation NET WORKING CAPITAL CAPEX NWC increased compared to Year End 2019 Capex support business expansion mainly due to cash collections postponed in 31.7 early July 2020 20.1 6.5 19.0 23.5 0.7 9.3 + 7.5 24.6 17.1 22.5 + 1.1 23.6 0.5 10.1 (20.6) - 4.1 6.0 (24.7) 31/12/2019 30/06/
Slide 17: Net Financial Position Evolution from end-2019 to H1-2020
Net Financial Position Evolution from end-2019 to H1-2020 Most Significant Cash-in and Cash-out Net Amortization & NWC Equity VAT refund CAPEX NFP Income Depreciation and H1-2020 other before NFP payables Equity NFP End- Cash- H1- 5.9 (1.1) (6.5) 2019 (7.5) 4.1 2.3 out 2020 3.1 (2.5) 111 (2.7) 39.8
Slide 18: Strong Potential Growth, Organic and by M&A
Strong Potential Growth, Organic and by M&A ORGANIC GROWTH, LEVERAGING ON A LOYALTY-BASED CLIENT PORTFOLIO, THAT WILL BENEFIT FROM: • NEW PRODUCTION CAPACITY • CDMO INDUSTRY TRENDS CDMOs’ clients want few, long- Along with the ongoing outsourcing term, reliable relations, with a trend in the Pharma
Slide 19: Why Fine Foods?
Why Fine Foods? SOLID TRACK RECORDS ATTRACTIVE AND GROWING MARKETS LONG LASTING CUSTOMER’S RELATIONS IDEAL POSITIONING SUSTAINABLE BUSINESS MODEL SIGNIFICANT ORGANIC GROWTH STRONG FINANCIALS POTENTIAL INORGANIC GROWTH DRIVEN BY M&A 19
Slide 20: Back-up
BACK-UP 20
Slide 21: Manufacturing Plants Geographical Footprint
Manufacturing Plants Geographical Footprint HQ PHARMACEUTICALS NUTRACEUTICALS BERGAMO BREMBATE ZINGONIA MILAN 21
Slide 22: Customer Concentration
Customer Concentration 2019 CUSTOMERS IN % OF TOTAL REVENUES 14% 10% 76% Top 5 Next 10 Other 22
Slide 23: Fine Foods Benchmarking Analysis - Italy
Fine Foods Benchmarking Analysis - Italy Fine Foods is the largest Italian CDMO Fine Foods is one of the few players active in both Pharmaceuticals and Nutraceuticals Fine Foods revenues increased 12.6% more than average competitors growth SELECTED FINE FOODS’ COMPETITORS AT ITALIAN LEVEL – 2019 and
Slide 24: Fine Foods Benchmarking Analysis - Europe
Fine Foods Benchmarking Analysis - Europe Fine Foods’ goal is to achieve premium European positioning, leveraging (i) its business mix and solid business model, and (ii) a strong financial position enabling inorganic growth In general, the largest European CDMOs are focused almost exclusively on Pha
Slide 25: Nutraceutical Plant Expansion - Zingonia
Nutraceutical Plant Expansion - ZINGONIA The operating complex covers a total area of 45,600 sqm 19.7€m in CAPEX over the 2016-2019 period The planned expansion will increase the covered area by ca. 80% Completed in 2019 Pre-existing covered area: 15,900 sqm Final covered area: 28,700 sqm Note: all
Slide 26: Pharmaceutical Plant Expansion - Brembate
Pharmaceutical Plant Expansion – BREMBATE The operating complex covers a total area of 20,700 sqm 15.2€m in CAPEX over the 2016-2019 period The planned expansion will increase the covered area by ca. 120% Completed in 2019 Pre-existing covered area: 5,700 sqm Final covered area: 12,700 sqm Note: all
Slide 27: Superior Technical Competence
Superior Technical Competence STRONGEST TECHNICAL TEAM QUALITY MANAGEMENT PARADIGM AMONG ITALIAN CDMOS 60 people in Quality Assurance and Quality Control 2,199 training hours 319 Standard Operating Procedures and Operating 22 people in R&D and industrialization in 2019 Instructions Recognized excell
Slide 28: Fine Foods' Special Attention to Human Resources
Fine Foods’ Special Attention to Human Resources Talent Factory 2019 women’s quota Innovative Recruiting of white collars at Precedures 62% 2019 employees’ retention rate at 97% 28
Slide 29: Fine Foods' Sustainability Framework
Fine Foods’ Sustainability Framework Continuously enhanced quality and sustainability management corroborates Fine Foods’ reputation with clients In 2019 only, Fine Foods passed successfully 28 audits from customers and authorities QUALITY SUSTAINABILITY HEALTH AND QUALITY FOOD SAFETY ENVIRONMENTAL
Slide 30: Fine Foods Positioning in the Pharmaceuticals and Nutraceuticals Value Chain
Fine Foods Positioning in the Pharmaceuticals and Nutraceuticals Value Chain CONCEPT REGULATORY FORMULATION PRODUCTION DISTRIBUTION DEVELOPMENT COMPLIANCE Nutraceuticals SCALE UP and QUALITY Outsourced R&D PRODUCTION CONTROL Distribution Contract Sales Org. Fine Foods activities as contract manufact
Slide 31: Years Revenues and EBITDA Trend
5 Years Revenues and EBITDA Trend REVENUES 159.7 139.4 113.1 119.6 102.0 Attractive revenue growth driven 119.6 by increasing volumes from loyal clients and by a constant inflow of new ones 2015 2016 2017 2018 2019 13.1% 13.4% 14.0% 13.4% 13.0% EBITDA margin EBITDA 18.7 20.8* Profitability increase
Slide 32: Years EBIT and Net Income Trend
5 Years EBIT and Net Income Trend 7.9% 8.2% 7.5% 7.3% 6.1% % on Revenues 9.3 9.0 10.2 9.7* EBIT 8.1 Consistent EBIT growth 2015 2016 2017 2018 2019 5.2% 5.5% 4.9% 6.2% 5.2% % on Revenues 8.7 NET INCOME 8.2* 6.2 5.9 5.3 Steady net income growth 2015 2016 2017 2018 2019 *2019 EBIT and NET INCOME have
Slide 33: 5 Years NWC and CAPEX Trend
5 Years NWC and CAPEX Trend NET WORKING CAPITAL CAPEX Efficient working capital management, with Increase of Capex to support business expansion collection time structurally lower than payment time 31.7 3.4 WC% on Revenues 21.9 0.5 11.9% 11.4% 6.8% 14.1% 11.9% 20.1 0.5 0.7 19.0 10.0 20.0 12.1 12.9 8
Slide 34: Shareholding Structure as of 15 September 2020
Shareholding Structure as of 15 September 2020 % OF EQUITY CAPITAL 41.01% Market 51.94% Eigenfin S.r.l. + M. Eigenmann 3.02% Treasury 4.03% SPAC Shares Promoters % OF VOTING RIGHTS 32.42% Market 64.56% 3.02% Eigenfin S.r.l. + SPAC M. Eigenmann Promoters 34
Slide 35: Contacts
Contacts Fine Foods & Pharmaceuticals N.T.M. S.p.A. Banca Akros S.p.A. Investor Relations Nomad Tel. +39 035 4821382 Viale Eginardo 29, Milano ir@finefoods.it ecm@bancaakros.it CDR Communication IR Advisor Paola Buratti – paola.buratti@cdr-communication.it Media Relations Marianna Tremolada - marian
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