Aryzta Ag · SIX:ARYN
Aryzta — Investora Conference 2024
19 slides from Aryzta's conference presentation, Sep 18, 2024
Slide 1: ARYZTA AG – Investora Conference
ARYZTA AG – Investora Conference September 18, 2024
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains forward looking statements which reflect the Board of Directors' current views and estimates. The forward-looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forwa
Slide 3: Strategic overview
Strategic overview
Slide 4: Key highlights half year results to June 2024
STRATEGIC OVERVIEW Key highlights half year results to June 2024 ▪ Revenue €1,055.2m ▪ Innovation share almost doubled to 19.4% of revenues ▪ Organic growth -0.7%, on flat volume ▪ EBITDA €149.8m ▪ EBITDA margin 14.2% ▪ New RCF – Hybrid bond repurchase 4
Slide 5: Innovation key performance driver
STRATEGIC OVERVIEW Innovation key performance driver ▪ Innovation almost doubled to 19.4% of revenue Artisanal products, buns, pastries ▪ Premium products accounting for c. 40% of revenue ▪ Solid organic growth performance in France, Switzerland, Denmark, Poland, Fornetti and Rest of World ▪ Other F
Slide 6: Investing in innovation-led growth
STRATEGIC OVERVIEW Investing in innovation-led growth ▪ State-of-the-art innovation center in Germany: ➢ Available to all Group’s businesses from H1 2025 ➢ Covering ARYZTA’s entire portfolio capabilities ➢ Serving all customers and channels New capacity coming on stream to leverage consumer trends:
Slide 7: Delivering commitments
STRATEGIC OVERVIEW Delivering commitments ▪ One remaining mid-term target to deliver ▪ New CEO appointed ▪ Dual role ends ▪ New mid-term targets expected in H1 2025 ▪ Continued investment in innovation and growth 7
Slide 8: Financial review
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Slide 9: Key financial highlights
FINANCIAL REVIEW Key financial highlights ▪ Profitability, driven by innovation and active portfolio management ▪ Solid cash generation to improve our financial position ▪ Early achievement of mid-term leverage ratio target of <3x ▪ ROIC1.) improves strongly – 300bps to 13.1% ▪ Balance sheet renovat
Slide 10: Resilient results, strong margin expansion despite flat volume
FINANCIAL REVIEW Resilient results, strong margin expansion despite flat volume Organic Growth % EBITDA % Free Cash Flow (€m) ROIC2.) % 22.0% 14.2% 72.1 13.1% 13.2% 10.1% 53.0 WACC: 8% -0.7% H1 FY231.) H1 FY24 H1 FY231.) H1 FY24 H1 FY231.) H1 FY24 H1 FY231.) H1 FY24 Revenue EBITDA (€m) 1,060.2 1,055
Slide 11: Portfolio management impacted OG by c. 2.5%
FINANCIAL REVIEW Portfolio management impacted OG by c. 2.5% In €m / % of revenue Organic Growth -0.7% 1,060.2 0.0% -0.4% Key Highlights: 1,055.2 — Subdued consumer sentiment -0.3% 0.2% — Geopolitical events in QSR — Active portfolio management in Retail, mainly Ireland/UK Revenue Growth -0.5% H1 FY
Slide 12: EBITDA driven by margin enhancing innovation and portfolio management
FINANCIAL REVIEW EBITDA driven by margin enhancing innovation and portfolio management In €m / % of revenue -70bps Key Highlights: +290bps -130bps 13.2% 14.2% +10bps — Gross Margin improvement: — 190bps from innovation and portfolio management — 100bps from cost optimisations and input cost 140.0 14
Slide 13: Early achievement of mid-term leverage ratio target of <3x
FINANCIAL REVIEW Early achievement of mid-term leverage ratio target of <3x Total net debt (incl. hybrid & leases) in €m 8 Leverage Ratio Total net debt 6 Key Highlights: 3.8x 3.3x 4 2.9x <3.0x — Total net debt reduction supported by: 1,018 1,001 2 927 — Improved profitability — Solid Cash flow gene
Slide 14: Hybrid buy-back savings driving reduced financing costs
FINANCIAL REVIEW Hybrid buy-back savings driving reduced financing costs Financing costs incl. lease interest (in €m) 35.8 4.8 Key Highlights: 7.1 33.5 — Net reduction of €2.3m: — Hybrid buy-back delivered €7.1m of savings — €4.8m gross increase → mainly higher weighted average interest rates and bo
Slide 15: New RCF agreed – further hybrid buy-back
FINANCIAL REVIEW New RCF agreed – further hybrid buy-back New 5-year re-financing Hybrid bonds outstanding • €930m RCF - same terms as existing facility • Hybrid 6.045%: CHF 325.4m Significant annual interest arbitrage • Term-Loan repaid • Hybrid 4.213%: CHF 144.3m • Extends maturity and headroom 15
Slide 16: Organic growth strategy continues to support performance
FINANCIAL REVIEW Organic growth strategy continues to support performance Our strategy is delivering: ▪ Innovation-led organic growth ▪ Good progress on cost optimisations ▪ Continued strengthening and restructuring of balance sheet → Well on track to deliver last remaining mid-term target 16
Slide 17: Five out of six mid-term targets delivered
STRATEGIC OVERVIEW Five out of six mid-term targets delivered Organic growth (CAGR) EBITDA Margin ROIC 4.5%–5.5% ≥14.5% ≥11.0% Revenue (€) CAPEX as % of revenue Total net debt leverage (incl. hybrids) >2bn 3.5%–4.0% <3x 17
Slide 18: Thank you
Thank you | ARYZTA
Slide 19: Presentation Glossary
Presentation Glossary ‘Organic growth’ – represents the revenue growth during the period, after removing the impact of acquisitions and divestures and foreign exchange translation. This provides a “like-for-like” comparison with the previous period in constant scope and constant currency. ‘EBITDA’ –