Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — Q1 2021 Earnings Presentation
15 slides from Scandinavian Tobacco Group A/s's earnings presentation, May 6, 2021
Slide 1: Investor Presentation First Quarter 2021
INVESTOR PRESENTATION FIRST QUARTER 2021 6 MAY 2021
Slide 2: Agenda
AGENDA 01 Q1 2021 highlights 02 Divisional update NIELS FREDERIKSEN CEO 03 Group financials 04 Regulatory update 05 2021 outlook MARIANNE RØRSLEV BOCK CFO 06 Q&A session All statements except for statements of historical fact in this presentation are forward-looking. Forward-looking statements give
Slide 3: Q1 2021 Highlights
Q1 2021 HIGHLIGHTS • Strong start to the year • Net sales remains strong driven by handmade cigars • Agio integration is ahead of plan and expectation to total savings raised to DKK 250 million • Full year guidance raised and range introduced to reflect continued forecast uncertainty Net sales EBITD
Slide 4: Highlights of Q1 2021 - North America Online & Retail
NORTH AMERICA ONLINE & RETAIL HIGHLIGHTS OF Q1 2021 • Consumption of handmade cigars remained strong in the first quarter with a continued increase in number of active customers and improving retention rates • 26% organic net sales growth still reflects pre-COVID volumes in first quarter 2020 • Stra
Slide 5: Looking Ahead - North America Online & Retail
NORTH AMERICA ONLINE & RETAIL LOOKING AHEAD • Strong consumption of handmade cigars expected to continue but uncertainty relating to the second half of the year remains high • A substantial part of new active customers in online business to be retained post COVID-19 supported by strategic initiative
Slide 6: Highlights of Q1 2021 - North America Branded & ROW
NORTH AMERICA BRANDED & ROW HIGHLIGHTS OF Q1 2021 • All product categories delivered positive organic net sales growth, but was particularly strong in handmade cigars • The new distribution network, The Forged Cigar Company, has come off to a good start • Margin improvement supported by mix, price i
Slide 7: Looking Ahead - North America Branded & ROW
NORTH AMERICA BRANDED & ROW LOOKING AHEAD • Volume increase in handmade cigars expected to continue in 2021 with higher consumption of handmade cigars expected to continue but uncertainty relating to the second half of the year remains high • Positive organic growth in net sales expected for full ye
Slide 8: Highlights of Q1 2021 - Europe Branded
EUROPE BRANDED HIGHLIGHTS OF Q1 2021 • Market trends varies from country to country due to COVID-19 impacts and comparisons to Q1 2020 is difficult • The combined volume market share following the commercial integration of Agio Cigars is developing well (33.3%) with particular good performance in Fr
Slide 9: Looking Ahead - Europe Branded
EUROPE BRANDED LOOKING AHEAD • Structural decline in cigar volumes to continue in 2021 • Focus on market shares and price improvements to secure sustainable flat to slightly increasing organic net sales growth • Full year 2021, the organic net sales growth is however expected to decline slightly due
Slide 10: Q1 2021 Results
Q1 2021 RESULTS Q1 Q1 FY DKK million Q1 2021 (Q1 2020) 2021 2020 2020 Net sales 1,883 1,756 8,006 12.5% Organic net sales growth (5.3%) Gross profit (before special items) 955 781 3,712 50.7% Gross margin (44.5%) OPEX -428 -456 -1,886 22.7% OPEX ratio (25.9%) EBITDA before special items 527 326 1,82
Slide 11: Net Debt and Leverage
NET DEBT AND LEVERAGE • NIBD increased by DKK 116 million versus Q4 2020 and decreased by more than 1 billion versus Q1 2020 • Leverage ratio down to 1.7x EBITDA versus 1.8x end 2020 and 2.8x end Q1 2020 • Decrease driven by strong cash flow generation NIBD AND LEVERAGE 4.444 3.274 3.390 Share buy-b
Slide 12: Regulatory Update
REGULATORY UPDATE EUROPE • Excise Directive Revision • Tobacco Products Directive Revision USA • Biden Administration and FDA re-addresses potential legislation on flavors and nicotine • Excise taxes 12
Slide 13: 2021 Full-Year Guidance
2021 FULL-YEAR GUIDANCE GUIDANCE 2021 Organic EBITDA growth 12%-18% (>7%) FCF before acquisitions DKK 1,0-1,3 billion (>DKK 1,0 billion) Adjusted Earnings Per Share >25% increase (>10% increase) KEY ASSUMPTIONS • Organic net sales growth High-end range: Demand for handmade cigars remains strong • Co
Slide 14: Q&A
Q&A 14
Slide 15: Event Calendar & Contact
EVENT CALENDAR & CONTACT EVENT CALENDAR 2021 10 MAR 14 APR 6 MAY 7 MAY-14 MAY 25 AUG 4 NOV FY/Q4 Annual Q1 Interim Q1 2021 Virtual H1/Q2 Q3 Interim 2020 General Road-show Interim Meeting INVESTOR RELATIONS CONTACT Scandinavian Tobacco Group A/S Torben Sand Sandtoften 9 Head of Investor Relations 282
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