Verallia SAS · EURONEXT:VRLA
Verallia SAS — Verallia — 9M 2022 Earnings Presentation
26 slides from Verallia SAS's earnings presentation, Oct 20, 2022
Slide 1: 9M 2022 Results
October 20th 9M 2022 RESULTS 2022
Slide 2: Today's Agenda
TODAY’S AGENDA 1 INTRODUCTION 2 KEY HIGHLIGHTS 3 9M 2022 FINANCIAL RESULTS 4 2022 GUIDANCE 2 October 20th, 2022
Slide 3: Introduction
1 INTRODUCTION Patrice LUCAS CEO
Slide 4: A Global Leader in Glass Packaging
1 INTRODUCTION A GLOBAL LEADER IN GLASS PACKAGING DIVERSIFIED AND BALANCED END-MARKETS 2021 Glass packaging(1) sales split by end-market 1 10,000 11 employees countries 16 N° Food in Europe(2) billion 89% of 2021 sales 2 16% bottles/jars p.a. 36% Still wine 3 N° Soft drinks 11% decoration plants 13%
Slide 5: Key Highlights
2 KEY HIGHLIGHTS Patrice LUCAS CEO
Slide 6: Recognition of Our Products and Innovations
2 KEY HIGHLIGHTS RECOGNITION OF OUR PRODUCTS AND INNOVATIONS “Flute Gothic“ is produced by Verallia France in Albi for Domaines Paul Mas Winner of the “Formes de Luxe 2022 award” organized by Luxe Packaging Insight, in the "Wine & Spirits Bottles" category Laiterie Rians (Over 10 years of coll
Slide 7: First Environment Day in All Our Plants & Offices
2 KEY HIGHLIGHTS FIRST ENVIRONMENT DAY IN ALL OUR PLANTS & OFFICES A great variety of activities set up by local teams & very positive feedbacks for this first edition Employee theater Group – Volunteer tree planting activity - Porto Ferreira Brazil Spain Basket sorting - Cognac France Video from a
Slide 8: CSR Report 2021
2 KEY HIGHLIGHTS CSR REPORT 2021 A key document to understand our CSR strategy (available on our website) concise, informative, enlightened with local examples 8 October 20th, 2022
Slide 9: Verallia's Commitment to the Environment
2 KEY HIGHLIGHTS VERALLIA’S COMMITMENT TO THE ENVIRONMENT Verallia commits to decarbonization with the installation of ORC (Organic Rankine* Cycle) at the Lagnieu plant This technology allows the waste heat from the furnace fumes to be converted into electricity, representing 10% of the plant’s
Slide 10: Update on Key Industrial Projects
2 KEY HIGHLIGHTS UPDATE ON KEY INDUSTRIAL PROJECTS Debottlenecking Inauguration of the new line 44 in Vauxrot plant in France Leading to an additional production capacity of +/- 10 million bottles per year for customers in the wine, spirits,… markets Capacity increase – on track to increase capa
Slide 11: Strong Growth in Revenue and Solid Cash Generation
2 KEY HIGHLIGHTS STRONG GROWTH IN REVENUE AND SOLID CASH GENERATION Revenue 1 – 9M 2022: +24.5% to €2,518 million and +24.4% organic growth(1) – Q3 2022: +26.5% to €879 million and +27.5% organic growth(1) Adjusted EBITDA 2 – €654 million over 9M 2022 (+24.0% compared to 9M 2021) – Margin at 26.0% N
Slide 12: 9M 2022 Financial Results
3 9M 2022 FINANCIAL RESULTS Nathalie DELBREUVE CFO
Slide 13: Strong Organic Growth
3 9M 2022 FINANCIAL RESULTS STRONG ORGANIC GROWTH REPORTED REVENUE (IN €M) Reported Growth: +24.5% Volumes Organic Growth(1): +24.4% – Still up in 9M’22 but slightly down in Q3 due to 2,517 furnace repairs 2.1 460.0 Price / mix – Around 20%+ effect in 9M 2,022 33.2 – Benefit from H1’22 selling p
Slide 14: Good EBITDA Performance
3 9M 2022 FINANCIAL RESULTS GOOD EBITDA PERFORMANCE ADJUSTED EBITDA (IN €M AND % OF SALES) Activity / Operating leverage – Positive volume impact in H1, slight decrease in Q3 due to furnace repairs Reported Growth: +24.0% Organic Growth(1): +24.3% 26.0% – Positive impact of stock variation 654.2
Slide 15: Continued Deleveraging
2 9M 2022 FINANCIAL RESULTS CONTINUED DELEVERAGING In € million 30/09/2022 30/06/2022 31/12/2021 30/09/2021 30/06/2021 Net Debt 921.6 1,146.6 1,268.4 1,213.4 1,266.2 LTM Adjusted EBITDA 804.7 758.8 678.1 678.8 671.7 Net Debt / LTM Adjusted EBITDA 1.1x 1.5x 1.9x 1.8x 1.9x 1.1x ratio of net debt ove
Slide 16: Optimized Financial Structure
3 9M 2022 FINANCIAL RESULTS OPTIMIZED FINANCIAL STRUCTURE NOMINAL AMOUNT OR In € million MATURITY NOMINAL RATE 30 September 2022 MAX. AMOUNT DRAWABLE Sustainability-Linked Bond – May 2021 (1) 500.0 May 2028 1.625% 500.5 Sustainability-Linked Bond – November 2021 (1) 500.0 November 2031 1.875% 500.5
Slide 17: 2022 Guidance
4 2022 GUIDANCE Patrice LUCAS CEO
Slide 18: 2022 Guidance
4 2022 GUIDANCE 2022 GUIDANCE (1) Thanks to a higher visibility over the rest of the year, 2022 guidance is: 1 Revenue 2 Adjusted EBITDA Reported annual revenue growth should Adjusted EBITDA target above €820m be around ~+25% + New furnace in Brazil (Jacuntinga) will start on November 9th • Full
Slide 19: Q&A
Q&A
Slide 20: Appendices
APPENDICES
Slide 21: Our Purpose: Re-imagine glass for a sustainable future
APPENDICES OUR PURPOSE Re-imagine glass for a sustainable future ESG more than ever at the heart of Verallia's purpose and strategy 21 October 20th, 2022
Slide 22: Disciplined and Dynamic Risk Hedging Policy
APPENDICES DISCIPLINED AND DYNAMIC RISK HEDGING POLICY EXCHANGE RATES ENERGY CO2 & INTEREST RATE Disciplined fuel, gas and electricity Disciplined carbon emission quotas Very limited transactional FX risk with hedging policy limiting energy cost hedging policy in Western Europe ca 2% of the Gr
Slide 23: Reconciliation of Operating Profit to Adjusted EBITDA
APPENDICES RECONCILIATION OF OPERATING PROFIT TO ADJUSTED EBITDA In €m 9M 2022 9M 2021 Operating profit 432.2 317.0 Depreciation, amortisation and impairment (i) 215.6 207.4 Restructuring costs 0.4 (1.8) IAS 29 Hyperinflation (Argentina) (ii) (2.2) (2.1) Management share ownership plan and associate
Slide 24: IAS 29: Hyperinflation in Argentina
APPENDICES IAS 29: HYPERINFLATION IN ARGENTINA • Since 2018, the Group has applied IAS 29 in Argentina. The adoption of IAS 29 requires the restatement of non‐monetary assets and liabilities and of the income statement to reflect changes in purchasing power in the local currency, leading to a gain o
Slide 25: Glossary
APPENDICES GLOSSARY • Activity category: corresponds to the sum of the volumes variations plus or minus changes in inventories variation. • Organic growth: corresponds to revenue growth at constant exchange rates and scope. Revenue growth at constant exchange rates is calculated by applying the aver
Slide 26: Disclaimer
DISCLAIMER Certain information included in this presentation are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding Verallia's present and future bu