Sig Group Ag · SIX:SIGN
Sig — Q3 2021 Earnings Presentation
16 slides from Sig's earnings presentation, Oct 26, 2021
Slide 1: SIG Combibloc Q3 2021 Trading Statement
SIG COMBIBLOC Q3 2021 TRADING STATEMENT CEO SAMUEL SIGRIST CFO FRANK HERZOG 26 OCTOBER 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is not for use within any country or securities of SIG in any state or jurisdiction in which, or to any person to whom such Adjusted net income is defined as profit or loss adjusted to exclude certain items of jurisdiction or by any persons w
Slide 3: Q3 2021 Highlights
Q3 2021 FULL YEAR GUIDANCE HIGHLIGHTS MAINTAINED SOLID REVENUE GROWTH COVID 19 EFFECTS CONTINUE: ENERGY, SUPPLY CHAIN AND AFTER STRONG FIRST HALF POSITIVE IN EUROPE AND LOGISTICS CHALLENGES AMERICAS, NEGATIVE IN APAC AND EFFECTIVELY MANAGED MIDDLE EAST AFRICA INITIATING PRICE INCREASES STRONG CASH F
Slide 4: Q3 2021 Key Figures
Q3 2021 STRONG CASH FLOW KEY FIGURES GENERATION CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €506.7 MILLION REVENUE UP LIKE- INCOME FOR-LIKE (1) +14.7% +4.2% AT €137.1 €60.6 €116.7 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (Q3 2020: (Q3 2020: €77.4m) (Q3 2020: €
Slide 5: 9 Months 2021 Key Figures
9 MONTHS 2021 MEA BUSINESS CONSOLIDATED KEY FIGURES FOR SEVEN MONTHS CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €1,457.6 MILLION REVENUE UP LIKE- INCOME FOR-LIKE (1) +15.1% +7.1% AT €401.2 €170.2 €141.7 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (9M 2020: (9M 2
Slide 6: Core Revenue Growth by Region at Constant Currency
CORE REVENUE GROWTH BY REGION COVID IMPACTS AT CONSTANT CURRENCY POSITIVE AND NEGATIVE EUROPE ▪ At home consumption remains high ▪ Changes in working patterns may be favourable longer term ▪ Consistent above market growth Q3 2021(1) 9M 2021(1) ▪ Hochwald fillers to come onstream in 2022 3.0% 1.7% MI
Slide 7: Core Revenue Growth by Region at Constant Currency
CORE REVENUE GROWTH BY REGION YEAR END RALLIES AT CONSTANT CURRENCY EXPECTED TO BE LOW ASIA PACIFIC ▪ Demand for white milk in China remains solid ▪ Solid Q3 in SE Asia despite continuing restrictions; some customers building safety stocks ▪ New fillers ramping up in Korea and Taiwan Q3 2021(1) 9M 2
Slide 8: Sustainability of Cartons Drives New Launches
SUSTAINABILITY OF CARTONS DRIVES NEW LAUNCHES FIRST LAUNCH OF SIGNATURE LAUNCH OF COMBISMILE PACKAGING IN EASTERN IN JAPAN WITH COSMO FOODS EUROPE COPACKER OF BEVERAGES IN EUROMILK SWITCHING FROM PLASTIC PACKAGING PET TO CARTON FOR WILL INSTALL HIGH SPEED KUKKONIA MILK FILLER WITH DRINKSPLUS TECHNOL
Slide 9: New Recycling Initiatives Outside Europe
NEW RECYCLING INITIATIVES >50% OF CARTONS OUTSIDE EUROPE RECYCLED IN EUROPE AUSTRALIA INDONESIA NEW FACILITY TO CARTON TURN BEVERAGE COLLECTION AT CARTONS INTO SCHOOLS, WASTE HIGH PERFORMANCE BANKS AND BUILDING SUPERMARKETS MATERIALS PARTNERSHIP WITH INDUSTRY INITIATIVE DUITIN TO RECYCLE WITH STATE
Slide 10: Adjusted EBITDA Evolution 9 Months and Q3
ADJUSTED EBITDA EVOLUTION MARGIN SEASONALITY 9 MONTHS AND Q3 LESS MARKED IN 2021 9M 2021 Q3 2021 € MILLIONS 27.2% (1) € MILLIONS 26.8% (1) 30.2% (1) 27.1% (1) 2 -5 2 -2 -12 33 -6 40 401 349 344 -1 13 -5 -5 -7 -5 12 3 134 112 132 137 120 9M 2020 FX Net of FX Top Line Raw Production SG&A JV JV Misc. 9
Slide 11: Managing Supply Chains and an Inflationary Environment
MANAGING SUPPLY CHAINS AND AN INFLATIONARY ENVIRONMENT SUPPLY CHAINS RAW MATERIALS PRICING WELL DIVERSIFIED SUPPLIER MULTI-YEAR LIQUID PAPER INITIATING PRICE INCREASES BASE BOARD CONTRACTS ENSURE TO OFFSET HIGHER COSTS SECURITY OF SUPPLY AND RESILIENT LOCAL SUPPLY PROVIDE PROTECTION PERSISTENT INFLA
Slide 12: Adjusted Net Income First Nine Months
ADJUSTED NET INCOME FIRST NINE MONTHS €million 9M 2021 9M 2020 PROFIT FOR THE PERIOD 128 56 Financing costs and exchange rate impacts and net effect of early repayment of secured term loans (6) 42 Onex acquisition PPA depreciation and amortisation 78 95 Other (2) - Adjustments to EBITDA: (12) (2) Of
Slide 13: Capital Expenditure
CAPITAL INCREASING INVESTMENT EXPENDITURE IN FILLERS €million 9M 2021 9M 2020 2020A PROPERTY, PLANT & EQUIPMENT 50 47 77 GROSS FILLER CAPEX 121 93 122 UPFRONT CASH (67) (30) (54) NET FILLER CAPEX 55 63 68 TOTAL NET CAPEX 105 109 145 TOTAL NET CAPEX AS % REVENUE 7.1% 8.4% 8.0% Differences due to roun
Slide 14: Leverage
LEVERAGE STABLE LEVERAGE YOY AFTER FINANCING ACQUISITION €million 9M 2021 9M 2020 2020A CASH (1) 228 249 355 TERM LOANS 550 550 550 CREDIT FACILITY 50 - - NOTES ISSUES 1’000 1’000 1’000 LEASE LIABILITIES 181 74 147 NET TOTAL DEBT 1’553 1’375 1’342 TOTAL NET LEVERAGE RATIO (2) 2.7x 2.7x 2.7x . (1) In
Slide 15: Financial Guidance
FINANCIAL FULL YEAR GUIDANCE GUIDANCE MAINTAINED FY 2021E CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY) ADJ. EBITDA MARGIN 27 – 28% EFFECTIVE TAX RATE 27 - 28%(1) NET CAPEX (% REVENUE) 8 - 10% 50 - 60% OF ADJUSTED NET DIVIDEND PAYOUT INCOME(2) MID-TERM CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY)
Slide 16: Thank You
THANK YOU 26 OCTOBER 2021