Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Investor Presentation (January 2024)
77 slides from Anora Group Oyj's investor presentation, January 2024
Slide 1: Pre-silent investor call
Pre-silent investor call Investor presentation January 2024
Slide 2: Contents
Contents 03 Introduction 07 Our strategy until 2030 10 Market and trends 14 Our sustainability roadmap 18 The leading wine and spirits brand house in the Nordics 28 Our industrial business 35 Financials 42 Why invest in Anora 45 Appendix: Latest quarterly results and governance 70 Appendix: M&A and
Slide 3: Outlook 2023
Financial review Outlook 2023 In 2023, Anora’s comparable EBITDA is expected to be EUR 66-69 million. (Guidance updated on 18 December) • Anora Group lowered its guidance for 2023 on 18 December 2023. Anora now expects the company’s comparable EBITDA for 2023 to be EUR 66-69 million. • Previously An
Slide 4: Leading wine and spirits brand house in the Nordic region
Anora | Market positions The leading wine and spirits brand house in the Nordic region and an industry forerunner in sustainability Forerunner in sustainability Norway Finland Wine Spirits Wine Spirits #1 #1 #1 #1 Sweden Denmark Wine Spirits Wine Spirits #2 #1 #1 #2 Baltics Germany Wine Spirits Aqua
Slide 5: A well-balanced business across categories and countries
Anora | Key figures A well-balanced business across categories and countries Net sales, MEUR Comparable EBITDA, MEUR (% of net sales) Personnel 703 76.1 (10.8%) 1,250 Industrial Industrial Sweden 19% 23% 27% Wine 44% DFTR & Anora Export Beverage brands Net sales 5% Net sales Partner net sales 48% by
Slide 6: Strong and versatile portfolio of leading own and partner brands
Anora | Brands Strong and versatile portfolio of leading own and partner brands Key Anora brands Key partner brands Wine Wine Spirits Spirits Investor presentation | January 2024 | 6
Slide 7: Our strategy up to 2030
Anora | Strategy Our strategy up to 2030 Lead category growth Scale our position in across consumer occasions Denmark and the Baltics and channels in the Swedish, to cement our regional Norwegian and Finnish markets as OUR AMBITION leadership the wine and spirits powerhouse Recognised #1 in ESG Acce
Slide 8: Our long-term financial targets for 2030
Financials | Targets Our long-term financial targets for 2030 Actual Actual Long-term financial targets for 2030 9/2023 (LTM) 2022 Annual net sales growth 3–5% 4.9% 5.7% including M&A, majority being organic Comparable EBITDA margin 16% 8.4% 10.8% Through focus on margin accretive business and scale
Slide 9: Strong values and company culture
Anora | Our values Strong values and company culture COURAGE ENERGY EMPOWERING TO EXPLORE TO INSPIRE TO WIN We are passionate and We share a can-do attitude Our dynamic, open and ambitious to lead the industry. and enjoy going the extra inclusive way of working We have the courage to mile. Positivit
Slide 10: The Nordic wine and spirits market
The Nordic wine and spirits market Investor presentation | January 2024 | 10
Slide 11: The Nordic wine and spirits market is large and non-cyclical
The Nordic market The Nordic wine and spirits market is large and non-cyclical Large and profitable market Non-cyclical business Stable historical growth and solid growth forecast Spirits: Wine: Value of the Nordic wine and spirits market1 Wine and spirits consumption vs. GDP growth (Norway)2 volume
Slide 12: Extensive experience operating with monopolies and regulated markets
The Nordic market | Monopolies We have extensive experience in operating with monopolies and in the regulated markets State retail monopolies are Special characteristics of the monopoly markets Anora’s largest sales channel* Monopoly route-to-assortment Alcoholic beverages in grocery • Tender proces
Slide 13: Key trends shaping our business
The Nordic market | Trends Key trends shaping our business Premiumisation Consumers Balancing Demand for and in-home Digital are going consumption convenience consumption disruption green habits after COVID 14% environmental & No- and low (NoLo) 16% global volume Long-term tailwinds to 93% of consum
Slide 14: Our sustainability roadmap
Our sustainability roadmap Investor presentation | January 2024 | 14
Slide 15: Our sustainability roadmap
Anora | Sustainability at the centre Our sustainability roadmap We are committed to set Science-Based Targets.Investor presentation | January 2024 | 15
Slide 16: Science-based targets: short-term and long-term
Sustainability | Roadmap We submitted our data for Science Based Targets initiative in Dec 2023 > Review process begins in April 2024 and we expect approval in 2024 FLAG targets Short-term Long-term 2030 targets targets Reduction target of 30.3% 2030 2050 of Forest, Land and Agriculture (FLAG) Reduc
Slide 17: Preparations for CSRD
Sustainability | Roadmap Preparations for CSRD 2023 2024 • Gap analysis • Hybrid report 2023 • Double-materiality analysis • External assurance • Human rights due diligence • ESG data automatisation process • Biodiversity assessment • Submitted application data to • Climate-scenario analysis SBTi •
Slide 18: Lead in growing sustainable wine, win share across markets
Wine Lead in growing sustainable wine, win share across markets Investor presentation | January 2024 | 18
Slide 19: Wine: We are the market leader in the Nordics
Wine | Introduction We are the market leader in the Nordics Capabilities in partner wine imports and own label wine make us unique Net sales, MEUR Gross margin Comparable EBITDA margin 316 30% 23.5% • Multiple independent wine • Developing, sourcing, filling and Partner import companies, long histor
Slide 20: Target to grow sales faster than the market: +3.6% annually
Wine | Growth ambition Target to grow sales faster than the market: +3.6% annually Improving profitability following increased share of own label wine Wines net sales ambition, EURm1 38% Anora Wines Vingruppen Partner Filling Market CAGR Market CAGR Market CAGR Market CAGR (21-30) 1,3% (21-30) 1,4%
Slide 21: Wine growth priorities
Wine | Growth priorities Lead in growing sustainable wine, win share across markets Our growth priorities Impact Target 2030 Grow Vingruppen NS +15% to Grow Vingruppen through focus on MEUR 260 and partner filling monopoly tenders and on-trade +20MEUR Grow faster than the overall market Win in the g
Slide 22: Long-term profitable growth in spirits
Spirits Long-term profitable growth in spirits Investor presentation | January 2024 | 22
Slide 23: Spirits: market leader in the Nordics and strong challenger internationally
Spirits | Introduction We are the market leader in the Nordics and a strong challenger internationally Net sales, MEUR Gross margin Comparable EBITDA margin 234 44% 28% Spirits – Monopoly market % of Spirits net sales 67% • Norway • Finland • Sweden Spirits – international % of Spirits net sales • D
Slide 24: Leader on the stable and profitable spirits market
Leader on the stable and profitable spirits market The strongest spirits portfolio in the market with iconic local and international brands Net sales, MEUR monopoly markets 156 Partner brands 27% Net sales by Anora’s hero brands brand type* are exported to some 30 countries Own brands 73% *Net sales
Slide 25: Triple the sales internationally and lead the Nordic markets
Anora’s growth strategy | Focus areas for Spirits Triple the sales internationally and lead the Nordic markets Our growth priorities Impact Target 2030 Strong development in on-trade channel drives us to Earn the right to expand partner business Monopoly markets reach above-market growth in partner
Slide 26: Spirits monopoly growth ambition
Spirits Monopoly | Growth ambition Growth driven by capturing market share and building new business with RTD and NoLo Topline projected to grow ~4% CAGR 2022-2030; profitability relatively flat in early years, increase in A&P investments in early years Market CAGR (21-26) 1,2% Market CAGR (21-30) 2
Slide 27: Tripling international spirits sales by 2030
Spirits International | Growth ambition Tripling international sales by 2030 and increasing share from 10% to 20% supported by M&As Topline projected to grow at ~17% CAGR 2022-2030; profitability weak in early years, given significant increase in A&P and people investments Net sales ambition of Spir
Slide 28: Funding the growth journey through efficiency
Industrial Funding the growth journey through efficiency Investor presentation | January 2024 | 28
Slide 29: State-of-the-art supply chain
Industrial | Introduction State-of-the-art supply chain Industrial and logistics business Supply chain footprint Net sales, MEUR* Comparable EBITDA margin Bottling production 160 17.7% 136 million litres Industrial Logistics services (Vectura) 35% Distillation production 30 15% million litres Ne
Slide 30: Efficient supply chain enables growth
Industrial | Supply chain Efficient supply chain enables growth Logistics centres Bottling plants Distilleries Outstanding route-to-market through efficient World class bottling plants for spirits and wines – Unique distillation and maturation logistics capabilities covering 23.3% of all forerunner
Slide 31: Koskenkorva is a unique distillery
Industrial | Industrial business Innovations enabling premium products and growth Koskenkorva is a unique distillery • Koskenkorva Climate Action Vodka of regeneratively farmed grain Sustainability, innovation, premium quality • Koskenkorva organic vodka and efficiency all in one • High quality etha
Slide 32: Performance and productivity developing positively
Industrial | Efficiencies Performance and productivity Execution of supply chain developing positively – Culture of synergy benefits is on track… continuous improvement Rajamäki • Strong execution capability: Prompt follow-up and Bottling OEE Working hours +44% actions of planned synergy benefits ac
Slide 33: Further efficiencies in the pipeline
Industrial | Improvement steps …with further efficiencies in the pipeline Estimated additional efficiency potential is EUR 5-10 million per year, implementation during next 3 years Execution of Supply Chain Platform, including Globus Wine Scope: 1. Scale benefits of Procurement Assessment 2. Logisti
Slide 34: Funding the growth journey through efficiency
Industrial | Closing Funding the growth journey through efficiency Internal culture Additional Sustainability drives efficiency efficiency potential identified and growth Continuous improvement Globus Wine volumes provide Pioneering sustainability work will culture enables positive performance addit
Slide 35: Financials: Value creation through profitable growth
Financials Value creation through profitable growth Investor presentation | January 2024 | 35
Slide 36: Key figures
Financials | Key figures Key figures (IFRS) 2022 2021 Net sales, EUR million 702.7 478.2 Comparable EBITDA, EUR million 76.1 71.7 % of net sales 10.8 15.0 Items affecting comparability, EUR million 67.9 -8.8 Result for the period, EUR million 18.1 31.2 Earnings per share, EUR 0.26 0.67 Net debt, EUR
Slide 37: Net sales grew by 5.7%
Financials | FY 2022 Net sales grew by 5.7 % Decline in profitability due to normalisation after Covid-19, higher opex and lower gross margin Market: The decline in volumes was related to the Anora: Net sales growth driven by the strong performance of the Globus Wine in Denmark, normalising of the c
Slide 38: All commercial units contributing to growth
Financials | Net sales All commercial units contributing to growth; strongest growth will come from outside the Nordic monopoly markets Illustrative Anora Group revenue development by unit 2021 PF actuals – 2030F, EUR millions ~950-1.150 +5% 3-5% 739 640 665 2019 PF 2021 PF Globus 2021 incl. Wine gr
Slide 39: Earnings driven by topline growth and efficiency improvements
Financials | Profitability Earnings driven by topline growth, incremental marketing investments financed by efficiency improvements and expanded margins Illustrative Anora Group EBITDA development 2021 PF actuals – 2030F, EUR millions; % of net sales 15% ~-3% ~0% ~2% ~-2% ~0% ~4% 16% ~150-180 101 80
Slide 40: Cash generation expected to remain stable
Financials | Cash generation Cash generation expected to remain stable throughout the strategy period thanks to stable margins, capex and working capital Anora’s underlying business will Anora is well invested. Capex will Throughout the strategy period, continue to produce strong remain at current l
Slide 41: Financial position affected by consolidation of Globus Wine
Financials | Key financials Financial position affected by consolidation of Globus Wine Net sales and comparable EBITDA1 EURm Net cash flow from operating activities1 EURm 478.2 357.3 359.6 342.4 52.6 56.1 50.8 71.7 76.1 37.6 52.4 40.0 44.8 6.5 -0,4 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021
Slide 42: Why invest in Anora?
Financials Why invest in Anora? Investor presentation | January 2024 | 42
Slide 43: Value creation through profitable growth, cash flow and stable dividends
Why invest in Anora | Value creation Value creation through profitable growth, strong cash flow generation and stable dividends • Increased revenue growth through market share gains in home markets Higher revenue growth and international expansion • M&A to strengthen our capabilities and expand our
Slide 44: www.anora.com investor.relations@anora.com
www.anora.com investor.relations@anora.com Follow us: Investor presentation | January 2024 44 |
Slide 45: Appendix: January – September 2023 results
Appendix: January – September 2023 results Investor presentation | January 2024 | 45
Slide 46: In Q3, price increases and cost cuts partly offset EBITDA decline
Business Review In Q3, price increases and cost cuts partly offset the decline in comparable EBITDA Net sales, Other operating Comparable EBITDA, EBITDA, EUR million income, EUR million EUR million EUR million 173.0 14.3 20.2 28.9 (181.9) (3.5) (23.4) (21.8) Price increases and cost cuts Guidance fo
Slide 47: Wine Q3 highlights
Business Review Wine New own and partner wines and tender wins Q3 Highlights NET SALES (TOTAL), MEUR -8.3% • Net sales decreased to EUR 78.1 million, due to weak currency exchange 85.1 78.1 rates for the SEK and NOK and previously lost partners in Sweden. • Anora own wines performed well in the loca
Slide 48: Spirits Q3 highlights
Business Review Spirits Successful product launches Sweden – Kron Vodka Rhubarb Finland – Leijona Capri Lemonello, Leijona Namu and Q3 Highlights NET SALES (TOTAL), MEUR Koskenkorva Winterapple as well as new no and low - 0% alcohol products in groceries • Net sales remained at the previous 57.2 57.
Slide 49: Industrial Q3 highlights
Business Review Industrial Q3 Highlights NET SALES (TOTAL), MEUR -9.5% • External net sales decreased by 9.2%. 78.5 71.0 • In industrial products, net sales were negatively impacted by the decreased Internal 36.9 33.2 starch sales volumes and lower demand from pulp and paper industry. Feed volumes w
Slide 50: Market development
Business Review Market development Sales in monopolies continued to decline slightly when returning to pre-pandemic levels • Overall sales volume in the Nordics declined by 2.7% in Q3, with DEVELOPMENT OF WINE AND SPIRITS SALES VOLUMES IN THE NORDICS spirits decreasing by 3.6% and wine by 2.6% compa
Slide 51: Net sales development
Q3 Financial Review Net sales development YTD net sales increased by 7.1% Group net sales, EUR million 2022: 702.7 1-9/2023: 515.3 (481.1) • Q3/23 net sales: 173.0 (181.9) MEUR, down by 4.9% 221.6 165.7 181.9 182.7 173.0 159.5 133.4 • 1-9/23 net sales: 515.3 (481.1) MEUR, up by 7.1% Q1 Q2 Q3 Q4 Q1 Q
Slide 52: In Q3 2023, net sales decreased by 4.9%
Q3 Financial Review In Q3 2023, net sales decreased by 4.9% Price increases were initiated as of September Net sales (external), EUR million Net sales (external), EUR million and change per segment • Net sales declined mainly due to weaker currencies and lost partners in Wine, partly -5% offset by p
Slide 53: Comparable EBITDA declined, partly offset by price increases
Q3 Financial Review Comparable EBITDA declined, partly offset by price increases and cost cuts Q3/2023 Comparable EBITDA, EUR million and % of net sales • Comparable EBITDA declined to EUR 20.2 (23.4) 2022: 76.1 (10.8%) 1-9/2023: 41.1 (8.0%) million, or 11.7% (12.8%) of net sales, down by 13.5% 23.4
Slide 54: Group comparable EBITDA weakened during Q3
Q3 Financial Review Group comparable EBITDA weakened during Q3 due to weaker currencies and poor performance in the Wine segment Spirits and Industrial increased their comparable EBITDA due to price increases, margin management and lower barley price Comparable EBITDA, EUR million and % of net sales
Slide 55: Barley sourcing
Financial review Barley sourcing In Q3 23 Anora used 43.5 (45.2) million kilos of grain Barley price development (EUR/tn)* 400 350 300 250 200 215 150 e/tn* 100 50 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ANORA’S MONTHLY SOURCING VOLUMES (TN) Key princip
Slide 56: Net working capital
Q3 Financial Review Net working capital Net working capital was at a level of 0 % of net sales at the end of September (LTM) • The Group’s net working capital improved to Net working capital, 2 EUR million and % of net sales, (LTM) EUR 2.0 (84.0) million at the end of September. • Inventories decrea
Slide 57: Cash flow
Q3 Financial Review Cash flow Operating cash flow improved in 1-9/2023 Net cash flow from operations, EUR million 2022: -0.4 1-9/2023: 35.2 (-36.4) • Net cash flow from operations improved to EUR 35.2(-36.4) million in 1-9/2023 45.3 36.1 • Overall cash flow developed positively due to the Larsen div
Slide 58: Leverage
Q3 Financial Review Leverage Net debt impacted by Larsen divestment, M&A and dividend payment Net debt incl. lease liabilities, MEUR and • Interest-bearing net debt incl. lease liabilities Net Debt / Comparable EBITDA (LTM) decreased to EUR 219.5 (315.7) million, excl. lease -30% liabilities: EUR 91
Slide 59: Summary of Q3 2023
Summary of Q3 2023 Sales decline mainly Net debt and cash due to lost partners in Price increases and flow developed Wine and weaker cost cuts partly offset positively due to the currencies, partly offset the decline in Larsen divestment and by price increases in comparable EBITDA continued sales of
Slide 60: Anora plans to develop its operating model
Press release on 9 November 2023 at 8.35 a.m. EET Anora plans to develop its operating model to better meet its strategic goals and improve profitability The goal of the planned changes is to strengthen the commercial focus on growth categories, reduce complexity, and find further synergies in line
Slide 61: Appendix
Appendix Investor presentation | January 2024 | 61
Slide 62: Q3 income statement
Financial Review Q3 income statement EUR million Q3 23 Q3 22 Q1-Q3 23 Q1-Q3 22 2022 Net sales 173.0 181.9 515.3 481.1 702.7 Other operating income 14.3 3.5 18.4 8.6 10.9 Materials and services -104.3 -108.7 -315.0 -279.5 -414.3 Employee benefit expenses -24.0 -22.9 -76.0 -69.3 -93.8 Other operating
Slide 63: Q3 balance sheet
Financial Review Q3 balance sheet EUR million 30 Jun 30 Jun 31 Dec EUR million 30 Jun 30 Jun 31 Dec 2023 2022 2022 2023 2022 2022 EQUITY AND LIABILITIES ASSETS Equity attributable to owners of the parent Non-current assets Share capital 61.5 61.5 61.5 Invested unrestricted equity fund 336.8 336.8 33
Slide 64: Thank you!
Our next scheduled event 14 February 2024 | Q4/FY Financial Statement Release Feb THANK YOU!
Slide 65: Appendix: Governance
Appendix: Governance Investor presentation | January 2024 | 65
Slide 66: Anora's top shareholders December 2023
Ownership structure Anora's top 10 shareholders 31 December 2023 Shareholder Shares % of shares ILLUSTRATION OF ANORA’S OWNERSHIP 13,097,481 19.4 Solidium Oy 2,031,240 3.0 Varma Mutual Pension Insurance Company Ilmarinen Mutual Pension Insurance Company 1,290,000 1.9 Rest of the world 1,199,705 1.8
Slide 67: Anora's Executive Management Team
Governance Anora’s Executive Management Team Jacek Pastuszka Janne Halttunen Risto Gaggl Johanna Sundén CEO SVP, Wine SVP, Industrial CHRO Sigmund Toth Kirsi Puntila Mikkel Pilemand CFO SVP, International CGO Joined Anora in October International career Previously, Risto worked as Prior to joining A
Slide 68: Anora's Board of Directors
Governance Anora’s Board of Directors Michael Holm Johansen Jyrki Mäki-Kala Kirsten Ægidius Christer Kjos Florence Rollet Chairperson Vice Chairperson Member Member Member Shareholdings: 80,000 Shareholdings: 13,600 Shareholdings: 6,100 Shareholdings: - Shareholdings: 4,620 Chair of the Human Resour
Slide 69: Building the future on our strong brands
History Building the future on our strong brands, continuous evolution and sustainable operations 2006– 1996 Expansion to other Nordic countries 1807 Arcus established Sale of industrial spirits business 2016 The oldest aquavit as a demerger from Arcus IPO at the Oslo brand in the world Vinmonopolet
Slide 70: Appendix: M&A and partnerships
Appendix: M&A and partnerships Investor presentation | January 2024 | 70
Slide 71: Altia and Arcus merger
Merger Altia and Arcus merger The leading wine and spirits brand house in the Nordic region and an industry forerunner in sustainability 1 September 29 September 23 July Merger completed: Brand divestments Anora is formed Merger plan agreed – all regulatory announced approvals for the merger 3 Septe
Slide 72: Step-change in scale with efficiencies across the value chain
Merger Step-change in scale with efficiencies across the value chain Increase scale and control of own operations leads to reduced carbon footprint, more sustainable operations and less complexity resulting in improved efficiency and profitability Strong manufacturing & logistics footprint Efficienc
Slide 73: Latest news
Latest news Acquisitions & investments Globus Wine – leading wine company in Denmark ISH – innovative scale-up in non-alcoholic beverages Divestments Larsen – cognac business divestment to International Beverage Holdings Limited Investor presentation | January 2024 | 73
Slide 74: Executing strategy through partnerships and M&A
Executing strategy through partnerships and M&A Acquisition of New partner Globus AB InBev Wine strengthening On Trade with leading wine company in Denmark solid brands Divestment of Larsen • A top partner for tapping the on- • Exiting a non-core category cognac trade horeca market • Sales price of
Slide 75: Acquisition of Globus Wine, the leading wine company in Denmark
Acquisition of Globus Wine Acquisition of Globus Wine, the leading wine company in Denmark Strengthens Anora's competitiveness in volume products Consistent above-market growth Near-market filling reduces CO2 foot print significantly. Market share 26% The Danish wine in still wines market is estimat
Slide 76: Market-leading wine company in Denmark
Acquisition of Globus Wine Market-leading wine company in Denmark Founded in 2006 Key figures Net sales split by line of business Sources wine in bulk to be filled in bag-in-boxes or bottles at Net sales Adjusted EBITDA Employees the production facility in Køge Filler 37% Products are sold under own
Slide 77: Anora invests in ISH, non-alcoholic beverages scale-up
Investment in ISH Anora invests in ISH, the award- winning Danish scale-up company in non-alcoholic beverages Anora has made an investment of EUR 5 million in ISH ISH is a Danish scale-up company in non-alcoholic beverages founded in 2018 by Morten Sørensen ISH is a global leader in non-alcoholic (N