Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Q4 2021 Earnings Presentation
35 slides from Anora Group Oyj's earnings presentation, Mar 10, 2022
Slide 1: Q4 21 Results presentation
Q4 21 Results presentation CEO Pekka Tennilä CFO Sigmund Toth 10 March 2022
Slide 2: Today’s agenda and speakers
Q4 21 Results presentation Today’s agenda and speakers Anora overview Business Review • Market development • Stand-alone review: Altia • Stand-alone review: Arcus Financial Review Closing remarks and Q&A CEO Pekka Tennilä CFO Sigmund Toth Financial Statements Bulletin 2021 | 10 March 2022
Slide 3: Anora overview: leading wine and spirits brand house in the Nordics
Anora overview The leading wine and spirits brand house in the Nordic region and an industry forerunner in sustainability Key figures 2021 (pro forma) Distillery Production Net sales, MEUR Comparable Employees EBITDA, MEUR Logistics Sales Head office 665 101 1055 (628) (98) The leading player in the
Slide 4: By joining our forces we are stronger and have better growth opportunities
Anora overview | Key investment highlights By joining our forces we are stronger and have better growth opportunities 1. 4. Market leader 2. 3. Capacity to in the profitable Global industry Step-change grow in and and stable forerunner in scale drives outside the Nordic wine in sustainability produc
Slide 5: Strong full-year 2021, Q4 impacted by lower sales in monopolies and increasing costs
Business Review Strong full-year 2021, Q4 impacted by lower sales in monopolies and increasing costs • COVID-19 restrictions in on-trade and travelling continued to Pro forma Reported impact market environment Q4 2021 Q4 2021 • Strong results for 2021 – supported by the extraordinary high sales volu
Slide 6: Market development
Business Review Market development Monopoly volumes are expected to return to pre-pandemic levels DEVELOPMENT OF WINE AND SPIRITS SALES VOLUMES IN THE NORDIC MONOPOLIES During the pandemic, the monopoly volumes* have been Q4 21 Q4 20 2021 2020 extraordinarily strong, and the 2021 volumes remained we
Slide 7: Former Altia
Business Review | Stand-alone information Former Altia Highlights Net sales, MEUR +8% +6% • Q4 net sales growth 7.9% to EUR 114.9 (106.5) million, growth 115 362 in constant currencies 6.8% 107 342 • 2021 net sales growth 5.8% to 362.3 (342.4) million, growth in constant currencies 4.4% Q4 20 Q4 21
Slide 8: Altia: Finland & Exports
Business Review Altia: Finland & Exports Q4 Highlights Net sales, MEUR Product launches in Q4 +10% • Net sales grew by 9.8% to EUR 38 34 37.7 (34.4) million 15 • Key growth drivers were the good Wine 15 recovery of travel retail, exports and on-trade, and the positive sales development in the Baltic
Slide 9: Altia: Scandinavia
Business Review Altia: Scandinavia Q4 Highlights Net sales, MEUR Product launches in Q4 +2% • Reported net sales grew by 1.7% to 46 47 EUR 47.2 (46.4) million • In constant currencies net sales -0.8% Wine 30 31 • Merger-related divestment of brands impacted spirits sales • In Sweden, strong Blossa s
Slide 10: Altia Industrial
Business Review Altia Industrial Q4 Highlights Net sales, MEUR Production and key projects +16% • Net sales grew by 16.4% to EUR 29.9 30 • To mitigate the impact of the record-high cost of (25.7) million 26 barley, the Koskenkorva Distillery’s running speed • Higher contract manufacturing was lowere
Slide 11: Former Arcus
Business Review | Stand-alone information Former Arcus Highlights Net sales, MEUR -3% +5% 94 91 297 311 • Q4 reported net sales declined 3.0% to EUR 90.7 (93.5) million • In constant currencies net sales declined 5.9% • 2021 reported net sales growth 4.7% to EUR 311.1 (297.1) million, in constant cu
Slide 12: Arcus: Wine
Business Review | Stand-alone information Arcus: Wine Q4 Highlights Net sales, MEUR Product launches in Q4 -6% • Reported net sales declined by 52 49 6.0% to EUR 49.0 (52.2) million • Net sales in constant currencies -8.5% • Lower market volumes in all three monopolies after COVID-19, weaker demand
Slide 13: Arcus: Spirits
Business Review | Stand-alone information Arcus: Spirits Q4 Highlights Net sales, MEUR Product launches in Q4 -3% • Reported net sales declined by 37 35 3.3% to EUR 35.3 (36.5) million • Net sales in constant currencies -6.4% • Calculated on external spirits sales, net sales in constant currencies 6
Slide 14: Arcus: Logistics
Business Review | Stand-alone information Arcus: Logistics Q4 Highlights Net sales, MEUR +9% • Distributed volume 17.0 million 11 10 litres, down 10.9% due to markets normalising • Reported net sales grew by 8.5% to EUR 10.7 (9.8) million • Net sales in constant currencies 1.8% • Price adjustments a
Slide 15: Financial review
Financial review Financial Statements Bulletin 2021 | 10 March 2022
Slide 16: Barley sourcing
Financial Review In 2021, Anora Barley sourcing used 208.5 (214.1) million kilos of Finnish grain Barley price development (EUR/tn)* Average barley price increased by +34% from 2020 to 2021 316e/tn** 300 250 200 150 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Slide 17: Key figures
Financial Review Key figures Q4 21 Q4 20 2021 2020 • Arcus has been consolidated to Anora as of 1 September 2021, full-year figures include Anora for Net sales, EUR million 205.6 106.5 478.2 342.4 four months (Sep-Dec) Comparable EBITDA, EUR million 31.4 19.0 71.7 52.4 • Positive impact on net sales
Slide 18: Balance sheet key figures
Financial Review Balance sheet key figures 2021 2020 • Arcus has been consolidated to Anora as of 1 Sep 2021 Reported net debt / comparable EBITDA 1.8* -0.1 • Full-year key figures based on cash flow statement include Arcus cash flow numbers for four months Borrowings, EUR million 162.6 116.1 • Key
Slide 19: Pro forma key figures
Financial Review Pro forma key figures Q4 21 Q4 20 2021 2020 2019 • Presents an illustrative and hypotethical situation as if merger completed on 1 Jan 2019 Net sales, EUR million 205.6 196.5 665.0 627.7 629.0 • Assets acquired and liabilities assumed recognised Comparable EBITDA, EUR million 30.6 3
Slide 20: Dividend proposal by Anora’s Board of Directors
Dividend proposal by Anora’s Board of Directors • Anora’s Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.45 per share be paid for the financial year 2021. • In its proposal the Board has considered former Altia’s dividend policy to pay 60% or more of the result fo
Slide 21: Outlook 2022
Financial Review Outlook 2022 • Comparable EBITDA expected to be between EUR 75-85 million • Corresponds to the pre-pandemic level • Takes into account the annual impact of EUR 4.6 million of the divestment of Anora brands due to the merger • Volumes in the monopolies are expected to be significantl
Slide 22: Closing remarks and Q&A
Closing remarks and Q&A Financial Statements Bulletin 2021 | 10 March 2022
Slide 23: Integration work and synergy capture progressing as planned
Closing remarks Change new image with Linie Integration work and synergy capture progressing as planned Integration plan and synergies after Current update and progress closing of merger • Focus on people processes, negotiations • Integration programme structured completed by year-end – today we and
Slide 24: Forerunner in sustainability: a selection of achievements in 2021
Closing remarks Forerunner in sustainability: a selection of achievements in 2021 Striving for Supporting Leading in Promoting carbon neutral a responsible eco-friendly an inclusive and production drinking culture packaging safe workplace • Nearly 100% • 16% of former Altia’s • 32% of entire Anora’s
Slide 25: Q&A
Q&A Financial Statements Bulletin 2021 | 10 March 2022
Slide 26: Summary
Summary 2022 expected comparable EBITDA Q4 impacted by Strong full-year EUR 75-85 million: lower monopoly results – Board’s lower monopoly sales and dividend proposal volumes, increasing increasing costs EUR 0.45 per share input costs and significant uncertainties Financial Statements Bulletin 2021
Slide 27: Thank you!
Thank you! Our next events: Week 16 Annual Report 11 May Annual General Meeting 19 May Q1 Interim Report More information: www.anora.com/investors Investor Relations: tua.stenius-ornhjelm@anora.com Financial Statements Bulletin 2021 | 10 March 2022
Slide 28: Appendix
Appendix Financial Statements Bulletin 2021 | 10 March 2022
Slide 29: 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 30: Q4 income statement
Financial Review Q4 income statement EUR million Q3 21 Q3 20 2021 2020 Net sales 205.6 106.5 478.2 342.4 Other operating income 5.9 1.8 10.5 6.2 Materials and services -114.2 -59.8 -266.1 -192.5 Employee benefit expenses -28.0 -13.4 -69.6 -49.1 Other operating expenses -38.0 -21.5 -90.2 -66.6 Deprec
Slide 31: Q4 pro forma income statement
Financial Review Q4 pro forma income statement EUR million Q3 21 Q3 20 2021 2020 Net sales 205.6 196.5 665.0 627.7 Other operating income 5.9 1.8 10.7 6.5 Materials and services -113.6 -108.2 -367.0 -350.9 Employee benefit expenses -27.6 -24.9 -95.7 -89.9 Other operating expenses -38.0 -29.7 -117.8
Slide 32: Anora's top shareholders
Ownership structure Anora's top 10 shareholders Shareholder Shares Ownership in percent Solidium Oy 13 097 481 19.4 Rest of the world Ilmarinen Mutual Pension Insurance Company 1 613 300 2.4 1% Canica AS Varma Mutual Pension Insurance Company 1 300 000 1.9 22% WestStar Oy 1 099 705 1.6 Other institu
Slide 33: 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
Slide 34: 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 35: More information: www.anora.com
More information: www.anora.com Investor Relations: tua.stenius-ornhjelm@anora.com Follow us: