Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Q3 2021 Earnings Presentation
41 slides from Anora Group Oyj's earnings presentation, Nov 25, 2021
Slide 1: Q3 21 Results presentation
Q3 21 Results presentation CEO Pekka Tennilä CFO Sigmund Toth 25 November 2021
Slide 2: Today’s agenda and speakers
Q3 21 Results presentation Today’s agenda and speakers Anora overview Q3 Business Review • Market development • Stand-alone review: Altia • Stand-alone review: Arcus Q3 Financial Review Integration progress and update on synergies Closing remarks and Q&A CEO Pekka Tennilä CFO Sigmund Toth Results pr
Slide 3: Anora overview: Highlights
Anora overview Highlights • Merger completed on 1 September 2021 • New Board of Directors • New Executive Management Team • Operating model announced Results presentation | Q3 21 | 25 November 2021 3
Slide 4: The leading wine and spirits brand house in the Nordic region
Anora overview The leading wine and spirits brand house in the Nordic region and an industry forerunner in sustainability Key figures 2020, pro forma Distillery Production Net sales, MEUR Comparable Employees EBITDA, MEUR Logistics Sales Head office 628 98 1100 (629) (81) The leading player in the N
Slide 5: The leading wine and spirits brand house in the Nordics
Anora overview The leading wine and spirits brand house in the Nordics Superior Leading Market-leading Strongest route-to- digital Growth portfolio of own innovators in market and platforms in opportunities and partner the Nordics sales the Nordic in travel retail brands excellence wine and and expo
Slide 6: Must-win battles and enablers to deliver on ambition
Anora overview | Focus areas Must-win battles and enablers to deliver on ambition Phase 1: Synergy capture & reignite growth Phase 2: Expansion through M&As 1 2 3 4 5 Drive efficiency and Reignite own business Grow partner business Unlock value in Step-change Must-win battles effectiveness, focusing
Slide 7: Q3 Business review
Q3 Business review Highlights • Market development • Stand-alone review: Altia • Stand-alone review: Arcus Results presentation | Q3 21 | 25 November 2021 7
Slide 8: Market development
Q3 Business Review Market development DEVELOPMENT OF WINE AND SPIRITS SALES VOLUMES IN THE NORDIC MONOPOLIES Q3 21 Q3 20 Q1-Q3 21 Q1-Q3 20 2020 • Gradual recovery of travel retail and on-trade as Covid-19 restrictions have Nordics, total sales volumes* -2.8 18.2 2.4 16.5 17.1 been lifted Spirits 0.7
Slide 9: Q3 reported and pro forma Group figures
Q3 Business Review Q3 21 reported and pro forma Group figures Arcus consolidated as of 1 September 2021 Reported Group figures (MEUR) Pro forma figures (MEUR) Net sales Comparable EBITDA Net sales Comparable EBITDA 114.0 20.2 165.0 30.1 Q3 (86.6) (14.6) (160.0) (27.8) Q1-Q3 21 272.5 40.2 459.4 70.4
Slide 10: Former Altia
Q3 Business Review | Stand-alone information Former Altia Highlights Net sales, MEUR +3% +5% • Q3 net sales growth 2.7% to EUR 89.0 (86.6) million, in 87 89 236 248 constant currencies 1.8% • YTD net sales growth 4.9% to 247.5 (235.9) million, in constant currencies 3.4% Q3 20 Q3 21 Q1-Q3 20 Q1-Q3 2
Slide 11: Altia: Finland & Exports
Q3 Business Review Altia: Finland & Exports Highlights Net sales, MEUR Product launches in Q3 +3% • Net sales grew by 2.7% to EUR 30 31 30.7 (29.9) million Wine 11 12 • Key growth driver higher spirits sales in travel retail and exports following the lifting of Covid-19 restrictions Spirits 18 19 •
Slide 12: Altia: Scandinavia
Q3 Business Review Altia: Scandinavia Highlights Net sales, MEUR Product launches in Q3 +7% • Reported net sales grew by 29 27 7.0% to EUR 29.3 (27.4) million • Fx tailwind: sales growth in 15 Wine 14 constant currencies 4.0% • Growth in all markets – Sweden, Norway and Denmark Spirits 13 14 • Key g
Slide 13: Altia Industrial
Q3 Business Review Altia Industrial Highlights Net sales, MEUR Production and key projects -1% • Net sales declined by 1.4% to EUR 29 29 • Koskenkorva Distillery has run at full 29.0 (29.4) million capacity in Q3 • Good recovery of contract • Barley consumption in Q3 52.6 (53.1) million kilos, manuf
Slide 14: Former Arcus
Q3 Business Review | Stand-alone information Former Arcus Highlights Net sales, MEUR +5% +8% 76 79 220 203 • Q3 reported net sales growth 4.9% to EUR 79.4 (75.7) million • Fx tailwind: sales growth in constant currencies 0.2% • YTD reported net sales growth 8.5% to EUR 220.4 (203.2) million, in cons
Slide 15: Arcus: Wine
Q3 Business Review | Stand-alone information Arcus: Wine Highlights Net sales, MEUR Product launches in Q3 +3% • Reported net sales grew by 3.0% 47 48 to EUR 48.0 (46.7) million • Fx tailwind: net sales decline in constant currencies -1.7% • Volumes in the monopolies declined as markets normalised a
Slide 16: Arcus: Spirits
Q3 Business Review | Stand-alone information Arcus: Spirits Highlights Net sales, MEUR Product launches in Q3 +4% • Reported net sales grew by 4.0% 26 27 to EUR 26.8 (25.8) million • Fx tailwind: net sales growth in constant currencies 0.8% • Calculated on external spirits sales, net sales growth in
Slide 17: Arcus: Logistics
Q3 Business Review | Stand-alone information Arcus: Logistics Highlights Net sales, MEUR +5% • Distributed volume 16.5 million 10 9 litres, down 5.2% due to markets normalising • Reported net sales grew by 5.1% to EUR 9.6 (9.1) million • Fx tailwind: net sales decline in constant currencies -0.7% •
Slide 18: Q3 Financial review
Q3 Financial review Highlights • Barley • Group key figures • Pro forma • Purchase price allocation Results presentation | Q3 21 | 25 November 2021 18
Slide 19: Barley sourcing
Q3 Financial Review YTD Anora has Barley sourcing used 158.7 (160.5) million Barley price development (EUR/tn) * kilos of Finnish 300 Anora price quote, grain November: 295e/tn 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Anora’s monthly sourcing vo
Slide 20: Key figures
Q3 Financial Review Key figures Q3 21 Q3 20 Q1-Q3 21 Q1-Q3 20 2020 • Arcus has been consolidated to Anora as of 1 September 2021 Net sales, EUR million 114.0 86.6 272.5 235.9 342.4 • Key figures based on Anora income statement Comparable EBITDA, EUR million 20.2 14.6 40.2 33.4 52.4 include Arcus num
Slide 21: Balance sheet key figures
Q3 Financial Review Balance sheet key figures Q1-Q3 21 Q1-Q3 20 2020 • Arcus has been consolidated to Anora as of 1 September 2021 Reported net debt / comparable EBITDA 2.9 0.7 -0.1 • Key figures based on cash flow statement include Borrowings, EUR million 173.0 106.1 116.1 Arcus cash flow numbers f
Slide 22: Pro forma key figures
Q3 Financial Review Pro forma key figures Q3 21 Q3 20 Q1-Q3 21 Q1-Q3 20 2020 2019 • Presents an illustrative and hypotethical situation as if merger completed on 1 Jan Net sales, EUR million 165.0 160.0 459.4 431.2 627.7 629.0 2019 Comparable EBITDA, EUR million 30.1 27.8 70.4 62.0 98.3 80.7 • Asset
Slide 23: Arcus acquisition balance sheet
Q3 Financial Review | Purchase price allocation Arcus acquisition balance sheet EUR million Intangible assets 181.0 • Fair value of merger consideration shares of EUR 337.4 million Property, plant and equipment 15.5 (31 413 139 new shares * share price of EUR 10.74 on 31 Aug 2021) Right of use asset
Slide 24: Integration
Integration Results presentation | Q3 21 | 25 November 2021 24
Slide 25: Integration work and synergy capture progressing as planned
Integration Integration work and synergy capture progressing as planned Integration plan and synergies after Current update and progress at merger (Sep 1, 2021) Q3/2021 • Integration programme • Anora executive management structured and initiatives assigned team and EMT direct reports have been appo
Slide 26: Anora Group’s operating model
Integration Anora Group’s operating model Wine Spirits International Anora Industrial Offers a strong growth platform for The industry forerunner in sustainable Includes Anora’s operations in Comprises industrial operations, Anora’s partners through the drinks. Comprises leading global and Denmark a
Slide 27: Closing remarks and Q&A
Closing remarks and Q&A Results presentation | Q3 21 | 25 November 2021 27
Slide 28: Forerunner in sustainability: Q3 achievements
Closing remarks Forerunner in sustainability: Q3 achievements Striving for Supporting Leading in Promoting carbon neutral a responsible eco-friendly an inclusive and production drinking culture packaging safe workplace • The Koskenkorva • In Q3, new launches • By end of the quarter, • Koskenkorva Di
Slide 29: Strong combined offering for the Christmas season
Closing remarks Strong combined offering for the Christmas season New designs and blends for seasonal favourites Results presentation | Q3 21 | 25 November 2021 29
Slide 30: Short-term outlook
Closing remarks Short-term outlook • Anora has updated its short-term outlook but is not providing guidance for 2021. • Societies are returning to normal, which is expected to impact Anora’s channel mix with on-trade and travel retail growing share of sales. • In the Industrial segment, barley marke
Slide 31: Q&A
Q&A Results presentation | Q3 21 | 25 November 2021 31
Slide 32: Summary
Summary With less Covid-19 Integration Strong start for restrictions, markets progressing Anora with solid normalised according to plan business gradually – strong and on schedule – performance in Q3 development in synergy target spirits maintained Results presentation | Q3 21 | 25 November 2021 32
Slide 33: Thank you
Next event: Thank Thankyou 10 March 2021 you Financial Statements Bulletin More information: www.anora.com Investor Relations: tua.stenius-ornhjelm@anora.com Results presentation | Q3 21 | 25 November 2021 33
Slide 34: Appendix
Appendix ANORA
Slide 35: Strong value creation for shareholders from significant synergies
Integration Strong value creation for shareholders from significant synergies Synergy sources Sourcing and manufacturing Logistics and warehousing Cost SG&A Other OPEX Expansion in core Nordic markets Revenues Acceleration in non-core and new markets Potential run-rate EBITDA net synergies EUR ~8-10
Slide 36: Q3 income statement
Q3 Financial Review Q3 income statement EUR million Q3 21 Q3 20 Q1-Q3 21 Q1-Q3 20 2020 Net sales 114.0 86.6 272.5 235.9 342.4 Other operating income 1.6 1.5 4.7 4.4 6.2 Materials and services -63.1 -48.7 -151.9 -132.7 -192.5 Employee benefit expenses -16.0 -12.8 -41.6 -35.7 -49.1 Other operating exp
Slide 37: Pro forma income statement
Q3 Financial Review Pro forma income statement EUR million Q3 21 Q3 20 Q1-Q3 21 Q1-Q3 20 2020 Net sales 165.0 160.0 459.4 431.2 627.7 Other operating income 1.6 1.6 4.8 4.6 6.5 Materials and services -91.1 -89.4 -253.4 -242.8 -350.9 Employee benefit expenses -20,3 -21.6 -68,0 -65.0 -89.9 Other opera
Slide 38: Anora's top shareholders
Ownership structure Anora's top 10 shareholders Shareholder Shares Ownership in percent Canica AS 15 137 926 22.41 Rest of the world Prime Minister’s Office 13 097 481 19.39 1% Canica AS 22 % Geveran Trading 3 117 150 4.61 Other institutions Ilmarinen Mutual Pension Insurance Company 1 613 300 2.39
Slide 39: Board of Directors reflects diversity and relevant experience
Governance Board of Directors reflects diversity and relevant experience Michael Holm Johansen Sanna Suvanto-Harsaae Chairman Vice Chairman Kirsten Ægidius Ingeborg Flønes Sinikka Mustakari Jyrki Mäki-Kala Nils Selte Torsten Steenholt Investor presentation | September 2021 | 39
Slide 40: Executive Management Team at Anora Group
Governance Executive Management Team at Anora Group Pekka Tennilä Janne Halttunen Kirsi Puntila Hannu Tuominen CEO SVP, Wine SVP, International SVP, Industrial Henrik Bodekær Sigmund Toth Thomsen SVP, Spirits Kirsi Lehtola CFO CHRO Previously served as International career in the Previously worked w
Slide 41: More information
More information: www.anora.com Investor Relations: tua.stenius-ornhjelm@anora.com Follow us: