Viscofan, S.a. · BME:VIS
Viscofan — 9M 2023 Earnings Presentation
19 slides from Viscofan's earnings presentation, November 2023
Slide 1: Results 9M 2023
Results 9M 2023 Highlights Revenue EBITDA and Net profit Balance Sheets To wrap up 1
Slide 2: Disclaimer
Disclaimer This document may include statements about This circumstance must be taken into account mainly intentions, expectations or forecasts of the for all people or entities that may have to take decision, Company additional to the mandatory financial develop or spread opinions relative to value
Slide 3: Highlights 9M23
Highlights 9M23 €926.2 €192.6 €100.8 €108.6 million million million million Revenue EBITDA Net profit Net Bank Debt +6.1% +7.9% +1.1% +8.9% -4.1% -24.7% Like-for-like1 Like-for-like1 vs. June23 1 Like-for-like: Excludes the variation of the different exchange rates in 2023, and the non-recurring exp
Slide 4: Revenue driven by the improvement in price mix
Revenue driven by the improvement in price mix Against the negative fx impact and the lower co-generation remuneration Revenue 9M23 € million +72.1 -3.4 -15.9 926.2 873.4 +6.1% +8.3 p.p. -0.4 p.p. -1.8p.p. Like-for-like 1 Like-for-like 1 Forex TB and NB 2 energy 9M22 9M23 1 Like-for-like: For compar
Slide 5: Revenue growth in SAM, EMEA and NAM
Revenue growth in SAM, EMEA and NAM Weaker than expected volume performance in China and South East Asia Revenue 9M23 Breakdown by geographical area 1 398.6 280.5 363.1 274.8 NAM EMEA + 4.3% + 2.1% +9.8% +10.1% Like-for-like2 vs. 9M22 9M22 9M23 9M22 9M23 vs. 9M22 Like-for-like2 30% 43% Group €926.2
Slide 6: Revenue growth in main businesses
Revenue growth in main businesses Compared with the drop in co-generation electricity sales Revenue 9M23 Breakdown by business division 746.6 New 702.2 Traditional 116.5 Business. TB Business. NB 104.6 +6.3% + 11.4% vs. 9M22 9M22 9M23 Group 9M22 9M23 vs. 9M22 €926.2 81% million 12% 7% 66.6 63.1 - 5.
Slide 7: Quarterly revenue growth in like-for-like terms
Quarterly revenue growth in like-for-like terms 3Q impacted by the adjustment in customers´ inventories , fx erosión, and energy Quarterly revenue Growth contribution (p.p.) +17.3% +14.1p.p. +8.1 p.p. +3.4p.p. +4.9% +1.5 p.p. +1.7p.p. -0.7p.p. -1.7p.p. -2.5p.p. -2.5% -4.2p.p. Like-for-like 1 Like-fo
Slide 8: Quarterly revenue evolution
Quarterly revenue evolution 2.5% decline year-on-year in Q3 Group Revenue. Quarterly 2021 2022 2023 € million 327.7 320.2 308.3 305.2 305.3 297.6 262.9 257.8 245.6 237.5 228.4 +15.2% +6.0% -1.2% 17.3% + +28.5% 4.9% + +6.8% - 2.5% +1.2% vs. 1Q22 vs. 2Q22 vs. 3Q22 +23.3% -9.1% -19.8% 1Q 2Q 3Q 4Q Tradi
Slide 9: Growth in EBITDA
Growth in EBITDA Revenue strength, efficiencies and cost savings to offset energy inflation in Spain and forex P&L 9M23 +8% raw materials price Year-on-year change increase +85% rise in gas co-generation and CO2 alowances +1% rise in energy costs +13.5% +2% increase in the -20% decrease in transport
Slide 10: Higher EBITDA in reported and like-for-like terms
Higher EBITDA in reported and like-for-like terms Commercial and operational discipline offset a negative cost environment EBITDA 9M23 EBITDA margin 9M23 Like-for-like and forex breakdown Percentage +17.0 -13.1 -1.9 22.0% 21.8% 192.6 20.8% 190.6 Like-for-like 1 Forex Non-recurring1 +8.9p.p. -6.8p.p.
Slide 11: Focusing on margin recovery
Focusing on margin recovery In a quarter negatively impacted by forex Quarterly EBITDA Quarterly EBITDA margin € million Percentage 2022 2023 2023 Like-for-like1 2022 2023 2023 Like-for-like1 76.6 73.1 -1.0p.p. +1.2p.p. 67.6 68.0 vs. 3Q22 Like-for-like1 64.8 63.3 61.7 57.8 23.5% 23.4% 22.3% 22.0% 21
Slide 12: Negative impact of exchange differences on the evolution of Net Profit
Negative impact of exchange differences on the evolution of Net Profit EBIT-Net Profit evolution € million € million 9M23 9M22 % y-o-y Main components of Reported EBIT 130.5 132.8 -1.8% financial results 9M22 9M23 +5.6 Financial result -7.9 +5.5 c.s. -1.0 -5.1 -3.4 Taxes -21.8 -33.2 -34.5% Financial
Slide 13: Improving operating cash flow generation
Improving operating cash flow generation With lower investment needs and working capital optimization Net Bank Debt1 Evolution € million -€35.6 million 144.2 -24.7% 132.9 Implementing a strategy 108.6 aiming at reducing 101.3 inventories <0.5x EBITDA Maintaining a strong balance sheet against a toug
Slide 14: Lower capex needs
Lower capex needs Adapting investments to capacity requirements and to the market context Quarterly capex evolution € million 125.6 -€50.6 million -40.3% Recurring maintenance 4Q investments 75 Progress in construction of a new converting plant in Thailand 3Q 4Qe Investments in converting in 2Q 3Q t
Slide 15: Guidance 2023
Guidance 2023 US$/€: 1.07 Guidance February23 Update 9M23 € million y-o-y change y-o-y change Revenue +9% / +12% +4% / +5% EBITDA +6% / +9% +2% / +4% Net profit +10% / +15% +4% / +7% Capex €75 Mn €75 Mn Highlights Revenue EBITDA and Net profit Balance Balance Sheets Sheets To wrap up 15
Slide 16: 9M23. To wrap-up
9M23. To wrap-up 1 2 3 4 Customers` strategies Revenue and EBITDA The greater focus in The key strategic aiming at inventory growth driven by profitability and projects have achieved adjustment are lasting commercial and resources optimization better-than-expected longer than expected operational di
Slide 17: Appendix. P&L. 9 Months
Appendix. P&L. 9 Months Like-for-like1 € million 9M23 9M22 % y-o-y % y-o-y Revenue 926.2 873.4 +6.1% +7.9% EBITDA 192.6 190.6 +1.1% +8.9% EBITDA margin 20.8% 21.8% -1.0p.p. +0.2p.p. Operating profit 130.5 132.8 -1.8% Profit before taxes 122.6 138.3 -11.4% Taxes -21.8 -33.2 -34.5% Net profit 100.8 10
Slide 18: Appendix. P&L. Third Quarter
Appendix. P&L. Third Quarter Like-for-like1 € million 3Q23 3Q22 % y-o-y % y-o-y Revenue 297.6 305.3 -2.5% +1.7% EBITDA 63.3 68.0 -7.0% +7.4% EBITDA margin 21.3% 22.3% -1.0 p.p. +1.2 p.p. Operating profit 42.4 48.5 -12.6% Profit before taxes 45.2 49.8 -9.3% Taxes -7.2 -9.6 -24.5% Net profit 37.9 40.2
Slide 19: Appendix. Alternative Performance Measures
Appendix. Alternative Performance Measures The Alternative Performance Measures included in this report are as follows: • The EBITDA, or operating profit before depreciation and • Net bank debt: This is calculated as non-current borrowings amortization, is calculated excluding depreciation and plus