Elopak Asa · OSL:ELO
Elopak Asa — Q2 2021 Earnings Presentation
24 slides from Elopak Asa's earnings presentation, Aug 24, 2021
Slide 1: Q2-21 Quarterly Results presentation
Q2-21 Quarterly Results presentation 24 TH AUG 2021 AMARCH Leading2021 Global Fresh Liquid Packaging Company and True Sustainability Champion March 2021
Slide 2: Disclaimer
Disclaimer Certain statements included in this announcement contain forward -looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Elopak management concerning plans, objectives and strategies, such as planned expansio
Slide 3: Packaging by Nature
Updated mission statement to be added when ready Packaging by Nature® ▹ As worldwide makers of carton-based packaging, we are committed to remain our customers’ partner and consumers’ favorite, through relentlessly developing new solutions for an expanding range of content ▹ Applying market-leading
Slide 4: Q2-21 Business Performance
Q2-21 Business Performance CEO Thomas Körmendi
Slide 5: Q2 2021 Business Highlights: Resilient performance and continued strong profitability
Q2 2021 Business Highlights: Resilient performance and continued strong profitability Revenue Continued strong Continued solid fundamentals profitability – operational and intact, although Adj.EBITDA margin safety performance slightly down 14.3% in all plants compared to Q2-20 New Sustainability- dr
Slide 6: Revenues – Elopak Group
Revenues – Elopak Group Revenues at historic high levels, although slightly down compared to high revenue in Q2-20 Quarterly Revenues (EURm), CAGR (%) Key commentary mEUR ▹ Resilient financial performance during first 300 +1% half 2021 253 250 242 233 ▹ Revenue decline in second quarter 2021 is 223
Slide 7: Business update: EMEA
Business update: EMEA Satisfactory Q2-21 performance, despite impact from Covid-19 and stockpiling in Q2-20 Revenues Q2-21 (EURm) – EMEA Key commentary -7% -2% ▹ Satisfactory revenue performance in second quarter 183 180 216 202 2021 2020 ▹ Hoarding and stockpiling due to pandemic explains the 2021
Slide 8: Business update: Americas
Business update: Americas Continued challenging market conditions, but still strong profitability performance in Americas Revenues Q2-21 (EURm) – Americas Key commentary -24% -14% ▹ Continued strong operational performance in Montreal 59 50 45 43 ▹ Good performance in our caps and closures 2020 busi
Slide 9: Sustainability-driven strategy on track
Sustainability-driven strategy on track Strategy has been re-confirmed and more relevant on the back of recent reports and sentiment Elopak’s Sustainability-Driven Strategy… 5 Commercial Excellence 4 Plastic to Carton 3 Broaden Conversion Elopak’s response: 2 Aseptic Growth Geographic 1 Fresh Opport
Slide 10: Sustainability driven innovations
Sustainability driven innovations Pure-TwistFlip™ - to address plastic waste issue ▹ Elopak’s tethered cap solution was announced in June 2021 and meets the criteria of the Single Use Plastics directive (SUP). ▹ Pure-TwistFlip™ offers an exciting new option for brands looking to meet the growing con
Slide 11: Q2-21 Financial Performance
Q2-21 Financial Performance CFO Bent Kilsund Axelsen
Slide 12: Q2 2021 Financial highlights
Q2 2021 Financial highlights 14.3% adj. Robust EBITDA margin Positive financials despite (in line with Q1 and product mix some last year) Covid-19 impact Improved capital Leverage ratio at structure following 2.1x IPO – ready for (Net Debt/ growth Adj.EBITDA) 3
Slide 13: Resilient revenue development, despite further growth impacted by Covid-19
Resilient revenue development, despite further growth impacted by Covid-19 Revenues – Group (EURm), CAGR (%) Key commentary -4% -4% ▹ Revenue decrease compared to last year, due to: 233 223 253 242 – Covid-19 hoarding and stockpiling in Europe Q2 20 – Customer losses and weak market in Americas – Ne
Slide 14: Margin development supported by product mix and operational improvement
Margin development supported by product mix and operational improvement Adj. EBITDA (EURm), CAGR (%) and Adj. EBITDA margin (%) Key commentary Group EMEA ▹ Attractive mix effects both in terms of -8% +22% geographic, customer and product mix 12.3% 14.5% 14.7% 14.3% 34 32 24 29 – Growth in aseptic bu
Slide 15: Adjusted EBITDA, second quarter 2021
Adjusted EBITDA, second quarter 2021 EBITDA decreased in second quarter 2021 compared to 2020, is primarily due to raw material costs Quarterly Adjusted EBITDA (EURm) Key commentary ▹ Positive revenue impact, due to favorable 0,4 price and mix effects 37,3 ▹ Raw material prices remained high through
Slide 16: Financial position strengthened through IPO
Financial position strengthened through IPO Leverage Ratio for second quarter 2021 at 2.1x Leverage Ratio significantly improved Key commentary Net Debt ▹ Healthy financial position, Leverage Ratio (mEUR) significantly improved during 345 347 350 329 4,0 second quarter 2021 through IPO 311 318 300 2
Slide 17: Outlook
Outlook ▹ Revenues in line with 2020 levels ▹ The sustained raw material headwind is expected to impact Q3 figures more FY 2021 than in Q2 ▹ FY 2021 EBITDA margin is expected to be slightly below 2020 due to the exceptional raw material situation globally ▹ Unchanged from the IPO prospectus publishe
Slide 18: Summary
Summary ▹ Continued solid performance in line with our expectations ▹ Elopak expects to continue to perform as a resilient company through the pandemic ▹ Sustained high LDPE prices will support conversion from plastic to carton Elopak is uniquely positioned for the increased momentum for sustainable
Slide 19: Q&A
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Slide 20: Appendix
Appendix
Slide 21: Elopak to Target Profitable Growth and a Robust Capital Structure
Elopak to Target Profitable Growth and a Robust Capital Structure Mid-term 3-5 years targets Revenue growth 2-3% organic growth p.a. and selectively pursue M&A opportunities EBITDA margin 14-15% adjusted EBITDA margin Capex EUR ~50m p.a. Dividend policy ~50-60% pay-out ratio % of adjusted net profit
Slide 22: Quarterly financials – Q1-20 to Q2-21
Quarterly financials – Q1-20 to Q2-21 % Adj.EBITDA EURm Quarterly Revenue, Adj.EBITDA and Adj.EBITDA margin (%) margin 300 20 253 242 250 233 18 213 223 210 200 16 150 14,7% 14,5% Revenue 14,1% 14,3% 14 Adj. EBITDA 100 12,5% 12,3% Adj. EBITDA margin 50 37 35 12 29 30 27 32 0 10 Q1-20 Q2-20 Q3-20 Q4-
Slide 23: Strong Development in Cash Conversion Driven by resilient Adj. EBITDA and delayed investments
Strong Development in Cash Conversion Driven by resilient Adj. EBITDA and delayed investments Simplified free cash flow and cash conversion1 Key commentary 89 • Significantly improved cash 82 conversion due to resilient 72 adj. EBITDA and reduced capex 72,4% 65,2% • Reduced capex due to lower 59,0%
Slide 24: Strong Balance Sheet with Moderate Leverage of 2.5x Q1-2021 LTM EBITDA
Strong Balance Sheet with Moderate Leverage of 2.5x Q1-2021 LTM EBITDA Balance sheet overview Q2-2021 (EURm) Recognised net debt overview Dec-2020 Q1-2021 Q2-2021 763 763 (EURm) Bank debt 214 230 175 Overdraft facilities utilised 16 13 7 Equity 260 Cash and cash equivalents (6) (11) (10) Current 344