Elopak Asa · OSL:ELO
Elopak Asa — Q4 2021 Earnings Presentation
30 slides from Elopak Asa's earnings presentation, Feb 23, 2022
Slide 1: Q4-21 Quarterly Results
Q4-21 Quarterly Results 23 RD FEBRUARY 2022 AMARCH Leading2021 Global Fresh Liquid Packaging Company and True Sustainability Champion March 2021
Slide 2: Disclaimer
Disclaimer Certain statements included in this announcement contain forward -looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Elopak management concerning plans, objectives and strategies, such as planned expansio
Slide 3: Chosen by people, packaged by nature
AR ae j Chosen 6 by people, packaged by nature : E
Slide 4: As worldwide makers of carton-based packaging, we are committed to remaining our customers' partner
As worldwide makers of carton-based packaging, we are committed to remaining our customers’ partner and the consumers’ favorite, through relentlessly developing new solutions for an expanding range of content. Applying market-leading technology, skills and natural material sourcing, we always aim to
Slide 5: Elopak at a Glance
Elopak at a Glance 11 A Leading Global Player in Fresh Liquid Carton Packaging 22 14 Billion Cartons Produced Across 9 Manufacturing Sites in 2020 3 Product Suite With More Than 400 SKUs 44 Sales to 70+ Markets With ~2,600 Employees 56 Established and Owned by Ferd Since 1957 Revenue (€m) Adj. EBITD
Slide 6: 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 7: Q4-21 Business Performance
Q4-21 Business Performance CEO Thomas Körmendi
Slide 8: Q4 2021 Business Highlights
Q4 2021 Business Highlights Continued solid financial performance while advancing strongly on growth strategy All-time high Input costs impacting Revenue growth of Revenue FY 2021 margins – 12 % compared to 940mEUR Adj. EBITDA of Q4-20 YOY-growth of 3.5% 22 mEUR in Q4-21 Continued solid Naturepak ac
Slide 9: Revenues – Elopak Group
Revenues – Elopak Group Significant revenue growth of 12% compared to fourth quarter last year Revenues (EURm), CAGR (%) Key commentary mEUR 3% ▹ Revenue growth of 12% compared to fourth quarter 1 000 2020 940 909 900 ▹ All time high revenue in 2021 at 940 mEUR, healthy 800 growth of 3.5% YoY (4.3%
Slide 10: Business update: EMEA
Business update: EMEA Solid Q4-21 performance, especially in Aseptic segments Revenues Q4-21 (EURm) – EMEA Key commentary ▹ Revenue growth of 6% in fourth quarter, compared to +2% mEUR relatively weak quarter in Q4 2020 800 741 760 ▹ Volume growth both for Roll Fed and Pure-Pak Aseptic 700 products
Slide 11: Business update: Americas
Business update: Americas Quarterly revenue is up by 39% compared to Q4-20, and continued strong profitability performance Revenues Q4-21 (EURm) – Americas Key commentary mEUR -1% ▹ Significant revenue growth of 39 % compared to fourth 200 194 192 quarter 2020 – Attractive mix effects in carton busi
Slide 12: Elopak's Profitable Growth Drivers
Elopak’s Profitable Growth Drivers Commercial Excellence Plastic to Carton 5 Broaden Conversion Geographic Footprint 4 Margin optimization Aseptic Growth 3 Purchasing and Fresh Opportunity Roadmap Imagine carton value engineering in North America 2 launch Growth on the back Operational Mid to Long T
Slide 13: Awarded the highest EcoVadis rating level
Awarded the highest EcoVadis rating level We are in the Top 1% of reporting companies across all industries
Slide 14: New filling machine sales is a key leading indicator for Elopak's revenue growth
New filling machine sales is a key leading indicator for Elopak’s revenue growth Key filling machine signings in Q4-21 Key commentary UK’s largest ▹ Contract signings for new filling machines is an independent dairy important leading KPI for Elopak growth processor ▹ Key features of Elopak Filling m
Slide 15: Naturepak acquisition
Naturepak acquisition On track to close the transaction during H1-22 Key commentary ▹ Naturepak Beverage Packaging (“NBP”), the MENA region’s leading provider of fresh liquid cartons and packaging ▹ On track to close transaction in during H1-22, competition authority approval obtained ▹ Naturepak to
Slide 16: Q4-21 Financial Performance
Q4-21 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 ▹ Aseptic volume growth compared to last -6% year, both dairy and juice segments 12.6% 9.3% 13.5% 12.9% -31% 111 104 ▹ Fresh Dairy development in line with historic -1
Slide 18: Adjusted EBITDA, fourth quarter 2021
Adjusted EBITDA, fourth quarter 2021 EBITDA decline in fourth quarter 2021 compared to 2020, primarily due to higher input costs Quarterly Adjusted EBITDA (EURm) Key commentary ▹ Positive revenue impact, reduced mix effects 26,8 2 ▹ Raw material prices remained high throughout -7 the fourth quarter:
Slide 19: Adjusted EBITDA 2021
Adjusted EBITDA 2021 Adjusted EBITDA 2021 is largely in line with 2020 Annual Adjusted EBITDA (EURm) Key commentary ▹ Positive impact from price and mix 10 ▹ Raw material price increases started to impact 122 -17 2 121 margins from Q2 -1 5 ▹ Continuous improvements in plants in EMEA and Americas ▹ G
Slide 20: Financial position strengthened through IPO
Financial position strengthened through IPO Leverage Ratio for fourth quarter 2021 at 2.0x Leverage Ratio significantly improved Key commentary Net Debt (mEUR) Leverage Ratio ▹ Healthy financial position with a 350 345 347 329 4,0 Leverage Ratio of 2.0x as of 311 318 300 fourth quarter 2021 255 3,5
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 ▹ Some increase in operating costs expected due to inflation and normalization post pandemic ▹ Naturepak acquisition expected to be accretive to margi
Slide 22: Summary
Summary ▹Strong revenue growth in the fourth quarter of 12%, resulting in full-year revenue of 940mEUR ▹Strategy implementation on track; – Americas business delivering growth – Aseptic volume growth in both Dairy and juice – MENA acquisition on track to completion – Positive momentum on filling mac
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix
Slide 25: Elopak to Target Profitable Growth and a Robust Capital Structure
Elopak to Target Profitable Growth and a Robust Capital Structure Mid-term 3-5 years targets Revenue growth 2-3% organic growth p.a. and selectively pursue M&A opportunities EBITDA margin 14-15% adjusted EBITDA margin Capex EUR ~50m p.a. Dividend policy ~50-60% pay-out ratio % of adjusted net profit
Slide 26: 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 25
Slide 27: 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 – Dividend at EUR 20.2m* – Adjusted profit at EUR 39.0m – D
Slide 28: Quarterly financials – Q1-20 to Q4-21
Quarterly financials – Q1-20 to Q4-21 % Adj.EBITDA EURm Quarterly Revenue, Adj.EBITDA and Adj.EBITDA margin (%) margin 260 253 20 242 237 239 240 233 19 223 220 210 213 18 200 Revenue 17 180 Adj. EBITDA 160 16 Adj. EBITDA margin 140 14,7% 14,5% 15 14,3% 14,0% 120 14 13,4% 100 13 12,3% 12,5% 80 12 60
Slide 29: Strong Development in Cash Conversion Driven by resilient Adj. EBITDA and delayed investments
Strong Development in Cash Conversion Driven by resilient Adj. EBITDA and delayed investments Simplified free cash flow and cash conversion1 Key commentary 89 88 • Continued strong cash 82 83 conversion due to resilient 72 adj. EBITDA and reduced 72,4% capex 70,0% 68,6% 65,2% • Reduced capex due to
Slide 30: Strong Balance Sheet with Moderate Leverage of 2.0x
Strong Balance Sheet with Moderate Leverage of 2.0x Q4-2021 LTM EBITDA Balance sheet overview Q4-2021 (EURm) Recognised net debt Dec- Q1- Q2- Q3- Dec- 792 792 overview (EURm) 2020 2021 2021 2021 2021 Bank debt 214 230 175 155 170 Overdraft facilities utilised 16 13 7 27 14 Equity 272 Cash and cash e