Slide 1: Q3 2015 presentation
Q3 2015 presentation 26 November 2015 Scandinavian market leader in chicken products 1
Slide 2: Summary, Q3 2015
Summary, Q3 2015 • Overall positive trends in sales and income, improved margins YoY • Our efforts in product development and production efficiency are paying off • Strong growth in sales and income in Sweden • Higher income and margin in Denmark • Gradual increase in sales in Norway • Integration o
Slide 3: Financial highlights, Q3 2015
Financial highlights, Q3 2015 • Sales up 2% at constant FX Q3 Q3 • Adjusted EBITDA up 7%, margin MSEK 2015 2014 Change improved to 8.6% (8.3) Net sales 1,396.1 1,358.9 3% -at constant FX - - 2% • Adjusted EBIT up 8%, margin EBIT* 71.7 66.5 8% improved to 5.1% (4.9) Margin* 5.1% 4.9% - • EBIT margin
Slide 4: Sweden – strong growth in sales and income
Sweden – strong growth in sales and income • Net sales up 5% • Continued good market growth • Strong sales increase in chilled products • Successful launches of seasonal products • Strong improvement in EBIT and margin • Higher volumes and improved mix • Operational efficiency gains • Investigation
Slide 5: Denmark – Strong growth in income
Denmark – Strong growth in income • Net sales down 2% in local currency • Weak export demand • Continued price pressure in local market and on exports • Stock build-up due to lower exports • Strong improvement in EBIT and margin • Continued efficiency gains in production and other parts of supply ch
Slide 6: Norway – sales gradually improving
Norway – sales gradually improving • Net sales up 5% in local currency • Increase in sales after deliveries to Coop started in August under new agreement incl. former ICA stores -370 stores vs 550 ICA stores supplied previously • Some growth in retail market after three quarters of decline • EBIT an
Slide 7: Improvement of retail market in Norway
Improvement of retail market in Norway • Growth in Q3 YoY after three quarters of decline • Will take time before the market is fully recovered Retail market development, chilled products YoY, value* 15% 10% 13%12% 5% 10% 0% 4% 4% 4% 4% 2% -5% 0% -2% -3% -2% -3% -10% -6% -7% -15% -11%-12% -20% -15%
Slide 8: Finland – integration proceeding as planned
Finland – integration proceeding as planned • Attractive market, but retail prices currently under pressure • Investments in factory to increase efficiency, capacity utilization is approx. 15% • Focus on increasing volumes, new farmers will be added during 2016 • Will take time to reach profitabilit
Slide 9: Income statement
Income statement • Higher depreciation due to investments in production • Group costs higher than in Q2 2015 due mainly to non-cash costs related to LTIP • Lower finance costs as a result of refinancing of bank loans in July 2014 MSEK Group (adjusted) Q3 2015 Q3 2014 9M 2015 9M 2014 EBITDA 119.7 112
Slide 10: Cash flow
Cash flow • Capex in line with plan, mainly relating to productivity improvement projects in production • Increase of inventories vs decrease last year, but positive impact from payables and receivables MSEK Q3 2015 Q3 2014 9M 2015 9M 2014 Adjusted EBITDA* 119.7 112.0 357.5 351.4 Capital expenditure
Slide 11: Lower debt and working capital
Lower debt and working capital • Working capital down to 6.3% of net sales from 6.6% at year-end • Leverage declined to 2.9x from 3.1x last year • Equity to assets ratio improved to 28.8% (25.5) MSEK 30 Sep-15 31 Dec-14 30 Sep-14 Inventory 545.3 546.6 527.2 Receivables 452.8 417.4 457.3 Payables -66
Slide 12: Summary
Summary • Strong market and performance in Sweden • Improved EBIT margin in Denmark, despite price pressure which is expected to continue • Gradual improvement in sales in Norway after start of deliveries to Coop under new agreement in August -Full recovery of Norwegian market expected to take time
Slide 13: Kronfagel Danpo €
Kronfagel Danpo € Scandi Standard
Slide 14: Segment information by quarter
Segment information by quarter Group (MSEK) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Sales 1 353.4 1 302.9 1 358.9 1 252.0 1 309.6 1 341.3 1 396.1 Sales growth 6% 1% 3% -4% -3% 3% 3% EBIT (Adj) 78.6 76.3 66.5 79.6 67.6 77.0 71.7 EBIT margin 5.8% 5.9% 4.9% 6.4% 5.2% 5.7% 5.1% Sweden (M
Slide 15: Segment information by quarter
Segment information by quarter Norway (MNOK) Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Sales 353.5 277.3 277.0 257.9 256.7 280.4 290.8 Sales growth 6% -20% -20% -29% -27% -7% 5% EBIT (Adj) 40.0 26.0 22.3 22.9 12.1 9.6 15.3 EBIT margin 11.3% 9.2% 7.9% 9.0% 4.8% 3.4% 5.3% Finland (MEUR)
Slide 16: Non-comparable items
Non-comparable items Non-comparable items in EBITDA and operating income: Q3 2015 Q3 2014 9M 2015 9M 2014 IPO costs - -3.5 - -36.5 Transition costs - -3.7 - -12.5 Monitoring fees - - - -5.8 Transaction costs -0.3 -1.6 -4.5 -1.6 Total -0.3 -8.8 -4.5 -56.4 Non-comparable items in finance net and tax e
Slide 17: Disclaimer
Disclaimer This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “targe