Elopak Asa · OSL:ELO
Elopak Asa — Q2 2023 Earnings Presentation
26 slides from Elopak Asa's earnings presentation, Aug 17, 2023
Slide 1: Q2 2023 Quarterly presentation
Q2 2023 Quarterly presentation AUGUST 17, 2023
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: Elopak at a glance
Elopak at a glance Group Historical revenue development1 1 101 Russia 1 024 940 910 909 906 909 872 85 The world’s largest player in fresh liquid carton packaging 856 778 780 781 769 776 14 billion cartons produced in 2022 855 Sales to 70+ markets 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 4: We're in the business of sustainable packaging
I We’re in the business of sustainable packaging
Slide 5: We're in the business of protecting essential commodities
I We’re in the business of protecting essential commodities
Slide 6: We're in the business of enabling world nutrition
I We’re in the business of enabling world nutrition
Slide 7: We're in the business of replacing plastics
I We’re in the business of replacing plastics
Slide 8: Q2 2023 Business performance
Q2 2023 Business performance CEO Thomas Körmendi
Slide 9: Successful strategy execution drives strong second quarter
Successful strategy execution drives strong second quarter Q2 2023 Business highlights Revenue at 278 EURm Adjusted EBITDA of Americas: increasing footprint EMEA: strong growth and 8% YoY growth 42 EURm with new plant to start profitability 6% organic 15 EURm YoY growth production in Q4, 2024 14.9%
Slide 10: Financial highlights
Financial highlights Q2 2023 strong revenue and Adj. EBITDA growth. YTD 2023 strong growth and maintained Adj. EBITDA. Group revenues (EURm) Group adjusted EBITDA (EURm) +16% 10.2% 14.9% 10.6% 14.7% 561 484 +60% +8% 83 +57% 259 278 51 42 26 Q2 YTD Q2 YTD ▹ Q2 Input costs remain at historically high
Slide 11: Business update: EMEA
Business update: EMEA Solid Q2 23 performance – growth mainly driven by pricing, as well as acquired business and Aseptic growth Revenues (EURm) - EMEA Key commentary +13% ▹ Growth in aseptic Pure-Pak® volumes in the quarter, driven by placement of filling machines in the UHT segment 430 380 ▹ Roll
Slide 12: Business update: Americas
Business update: Americas Quarterly revenue is up by 6% YoY, mainly driven by volume growth from new customers Revenues (EURm) - Americas Key commentary +16% ▹ Onboarding of new customers and strengthening of our 138 product portfolio drive market share growth and profitability in both dairy and jui
Slide 13: Five profitable growth drivers steer Elopak's future direction
Five profitable growth drivers steer Elopak’s future direction TODAY MID TO LONG TERM GOAL FRESH BROADEN ASEPTIC GROWTH PLASTIC TO CARTON COMMERCIAL OPPORTUNITY GEOGRAPHIC ROADMAP CONVERSION EXCELLENCE IN NORTH AMERICA FOOTPRINT Global fresh Execute Americas Growth on the MENA: profitable Non-food g
Slide 14: Leveraging the vast opportunities found in Americas
Leveraging the vast opportunities found in Americas ▹ Americas total fresh liquid carton market is massive: ~ 1.6 EURb1) ▹ For years, the market was dominated by one producer. However, Elopak started gaining market share in recent years: – 2015: New plant in Montreal – 2021: Implementing new strateg
Slide 15: Choosing cartons over plastic bottles
Plastic to carton Choosing cartons over plastic bottles Robinsons is a household name in the UK with over 200 years of history, evoking a sense of nostalgia for many Brits. Owned by Britvic since 1995, the brand has launched a new fruit concentrate drink in 500ml Pure-Pak® cartons. “Making Robinsons
Slide 16: Boxed Water Is Better launches new flavor in Pure-Pak cartons
Brands in carton #Plastic to carton Boxed Water Is Better® launches new flavor in Pure-Pak® cartons Our trailblazing customer in the U.S. Boxed Water™ is the leading sustainable water alternative to plastic bottles and aluminium cans. This summer Boxed Water™ is bringing a new refreshing flavor to i
Slide 17: WOVO cracks open new dairy alternative category
Brands in carton WOVO cracks open new dairy alternative category Liquid egg pioneer Campomayor teamed up with Spanish food scientists to develop the world’s first dairy alternative made from egg whites. “Elopak’s Pure-Pak® Sense aseptic cartons are the best way to present our new drink to the consum
Slide 18: Q2 2023 Financial performance
Q2 2023 Financial performance CFO Bent Kilsund Axelsen
Slide 19: Adjusted EBITDA, Q2 2023 by region
Adjusted EBITDA, Q2 2023 EBITDA growth YoY in Q2, primarily driven by price increases in Europe, new customers in Americas, and acquired businesses Adj. EBITDA (EURm) and Adj. EBITDA margin (%) Key commentary ▹ EMEA EMEA Americas – Cumulative price increases from 2022 onwards – India acquisition pos
Slide 20: Adjusted EBITDA, Q2 2023
Adjusted EBITDA, Q2 2023 Strong Q2 2023 – coming from a challenging quarter last year Adjusted EBITDA Quarterly (EURm) +15 EURm +57% 4 3 42 0 0 23 26 Q2 2022 Net Revenue Mix Raw materials* Operations FX** Other Q2 2023 Adj. EBITDA Adj. EBITDA *Raw materials are only related to carton production and
Slide 21: Cash flow YTD 2023
Cash flow YTD 2023 Strong cash generation from operations YTD, offset by dividend payment, reinvestments, and down-payment of long-term debt Cash flow from operations Cash flow to investments Cash flow from financing -2 -17 30 0 -15 5 -20 52 -16 -28 26 0 15 Cash at Profit Depreciation, Change Other
Slide 22: Financial position
Financial position Leverage ratio in the quarter improved to 2.6x mainly from improved EBITDA Leverage ratio1 Key commentary Net Debt Leverage ▹ Net debt of EUR 386 million (mEUR) Ratio 400 391 5.0 – Bank debt EUR 289 million 386 363 367 – Lease liabilities EUR 96 million 347 4.5 350 340 91 96 318 8
Slide 23: Outlook 2023
I Outlook 2023 ▹ Inflationary pressures and general economic climate are having some impact on consumption ▹ Full year revenue growth expected well above mid-term target ▹ Second half EBITDA better than comparable period last year
Slide 24: Summary
I IMAGES TO BE UPDATED Summary ▹ Elopak continued to deliver strong profitable organic growth in the first half of 2023, building on solid performance in past consecutive quarters ▹ In Q2 we continued to develop and improve our business across geographies, and we delivered a strong financial result
Slide 25: Financial calendar
I Financial calendar Event Date Q3 2023 Financials November 2, 2023
Slide 26: Thank you!
Thank you!