Elopak Asa · OSL:ELO
Elopak Asa — Q1 2022 Earnings Presentation
27 slides from Elopak Asa's earnings presentation, May 5, 2022
Slide 1: Q1-22 Quarterly Report
Q1-22 QUARTERLY REPORT 5 TH MAY 2022 AMARCH Leading2021 Global Fresh Liquid Packaging Company and True Sustainability Champion March 2021
Slide 2: Today's Presenters
TODAY’S PRESENTERS Thomas Körmendi Bent Kilsund Axelsen Thomas Haave Askeland Chief Executive Officer - CEO Chief Financial Officer - CFO Head of IR
Slide 3: Q1-22 Business Performance
Q1-22 BUSINESS PERFORMANCE CEO Thomas Körmendi
Slide 4: Q1 2022 Business Highlights
Q1 2022 Business Highlights Strong performance in Americas, but challenging outlook in Russia and Ukraine Value initiatives, including Input costs impacting Revenue growth of price increases, supported margins – 9 % compared to revenue growth by 12 Adj. EBITDA of Q1-21 mEUR 27 mEUR in Q1-22 Americas
Slide 5: Revenues – Elopak Group
Revenues – Elopak Group Significant revenue growth of 9% compared to first quarter last year - mainly driven by price increases Revenues (EURm), CAGR (%) Key commentary mEUR 9% ▹ Revenue growth of 9% compared to first quarter 250 243 2021, (7% on a constant currency basis) 223 ▹ Main drivers for the
Slide 6: Business update: EMEA
Business update: EMEA Solid Q1-22 performance, mainly driven by price increases Revenues Q1-22 (EURm) – EMEA Key commentary mEUR +7% ▹ Revenue growth of 7% in the first quarter 200 193 180 – Volume growth of 9% on Roll Fed Aseptic products – Sales of coated board contributed positively 150 – Signing
Slide 7: Business update: Americas
Business update: Americas Quarterly revenue is up by 28% compared to Q1-21, and continued strong profitability performance Revenues Q1-22 (EURm) – Americas Key commentary mEUR +28% ▹ Significant revenue growth of 28 % compared to first 60 58 quarter 2021 (19% on constant currency) – Attractive mix e
Slide 8: Profitable Growth Drivers
Profitable Growth Drivers Commercial Excellence Plastic to Carton 5 Broaden Conversion Geographic Footprint 4 Margin Aseptic Growth optimization 3 Fresh Opportunity Roadmap Imagine carton Purchasing and in North America 2 launch value engineering Growth on the back Mid to Long 1 MENA: Profitable Non
Slide 9: Elopak among first three companies with approved Net-Zero targets
Elopak is one of the first three companies in the world to have Net-Zero targets approved after the official launch of the Net-Zero standard by Science Based Targets initiative 12
Slide 10: Americas continue to deliver in line with strategy
1 Fresh opportunity in North America Americas continue to deliver in line with strategy Growth of 28% confirms Elopak’s growth strategy – several new filling machine contracts will support further growth Americas delivering in line with strategy Secured several new filling machine contracts in the U
Slide 11: Joint venture agreement in India signed with GLS
3 Broaden geographic footprint Joint venture agreement in India signed with GLS The JV with GLS will give Elopak a quick entry to the high growth packaging market in India Investment rationale Attractive plant location and local know-how through GLS Population: 1,38 Bn A ticket to enter the highest
Slide 12: Growth opportunity in line with Elopak's growth strategy
3 Broaden geographic footprint Growth opportunity in line with Elopak’s growth strategy Strong underlying market growth of ~7%, supporting a high growth JV business in India Indian liquid carton market size (Bn liter)… …supports an attractive business case with low initial capex Projected Investment
Slide 13: Pricing actions implemented, with effect from Jan-22
5 Commercial Excellence Pricing actions implemented, with effect from Jan-22 Further price increases are currently being implemented, with effect from June 2022 Positive value impact on Q1-22 revenues in both Americas and Europe Key commentary 4 243 ▹ Price increases implemented in Europe with finan
Slide 14: Elopak in Ukraine and Russia
Elopak in Ukraine and Russia Around 90 mEUR Revenues with a 10% EBITDA margin Elopak Russia ▹ Market Unit in Moscow ▹ Production facility in St Petersburg St Petersburg ▹ Sales 2021: 73 mEUR* + 3 mEUR in other countries in the region ▹ Employees: 185 ▹ Production: Pure-Pak cartons (primarily for Rus
Slide 15: Financial impact of situation in Ukraine and Russia
Financial impact of situation in Ukraine and Russia Write-downs and impairments of ~22 mEUR booked in Q1-22 financials Q1 2022 Financial impact Strategic plans and outlook Impairments/ write downs Amount (mEUR) ▹ Maintain the safety and minimize risk for our local employees Fixed asset impairment (P
Slide 16: Q1-22 Financial Performance
Q1-22 FINANCIAL PERFORMANCE CFO Bent Kilsund Axelsen
Slide 17: Satisfactory margins despite raw material headwind
Satisfactory margins despite raw material headwind Adj. EBITDA (EURm), CAGR (%) and Adj. EBITDA margin (%) Key commentary Group EMEA ▹ Margin pressure in the first quarter, due -23% to inflationary pressure resulted in EBITDA 14.5% 11.1% 29 margin 3.4% lower than a very strong first 22 -17% quarter
Slide 18: Adjusted EBITDA, first quarter 2022
Adjusted EBITDA, first quarter 2022 EBITDA decline in first quarter 2022 compared to 2021, primarily due to higher input costs Quarterly Adjusted EBITDA (EURm) Key commentary 3,4 ▹ Positive revenue impact, but reduced mix 32,4 effects -8,9 0,2 27,0 ▹ Raw material prices remained high throughout -0,8
Slide 19: Adjustments in Q1-22
Adjustments in Q1-22 Adjustments in the first quarter related to Russia/ Ukraine conflict amounts to ~21 mEUR Adjustments (MEUR) Q1-22 Q1-21 Key commentary Reported EBITDA 12.4 30.7 ▹ Impairments related to Russia and Ukraine; Adjustments to EBITDA: – EBITDA impact: 7.7 mEUR - Russia/ Ukraine: Short
Slide 20: Financial position
Financial position Leverage Ratio for first quarter 2022 at 2.9x Leverage Ratio Key commentary Net Debt Leverage Ratio (mEUR) ▹ Leverage Ratio of 2.9x as of first 400 4,5 quarter 2022, primarily driven by 345 347 340 acquisition of Naturepak 350 329 318 311 4,0 300 ▹ Cash flow positively impacted by
Slide 21: Outlook
Outlook ▹ Revenues above 2021 levels, in line with mid-term guiding ▹ The sustained raw material headwind is expected to still impact margins, FY 2022 especially in the second quarter ▹ Loss of business in Russia to have a negative impact from Q2 ▹ Naturepak acquisition expected to be accretive to m
Slide 22: Summary
Summary ▹ Despite challenging environment, Elopak continue to deliver growth and further develop the company ▹ The packaging industry is living through extraordinary times – Elopak is well positioned ▹ Strategy implementation on track; – Americas business delivering growth – MENA acquisition complet
Slide 23: Q&A
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Slide 24: Appendix
APPENDIX
Slide 25: Financial calendar 2022
Financial calendar 2022 Event Date Q4 Financials February 23rd Annual report 2021 April 1st Q1 Financials May 5th Annual General Meeting May 12th Q2 Financials August 18th Q3 Financials October 26th 28
Slide 26: Dividend for 2021 proposed at 0.75 NOK per share
Dividend for 2021 proposed at 0.75 NOK per share In line with mid-term targets Key commentary ▹ Resolution: The Board recommends to AGM to approve a dividend at 0.75 NOK per share for 2021 at the General Assembly May 12th. ▹ Key information – Last day including right: 12 May 2022 – Ex-date: 13 May 2
Slide 27: Quarterly financials – Q1-20 to Q1-22
Quarterly financials – Q1-20 to Q1-22 % Adj.EBITDA EURm Quarterly Revenue, Adj.EBITDA and Adj.EBITDA margin (%) margin 260 253 20 242 239 243 240 233 237 223 Revenue 220 210 213 Adj. EBITDA 200 14,7% 14,5% 14,3% Adj. EBITDA margin 14,0% 15 180 13,4% 12,3% 12,5% 160 11,1% 140 9,3% 10 120 100 80 60 5