Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — FY2024 Earnings Presentation
60 slides from Italian Wine Brands's earnings presentation, Mar 21, 2025
Slide 1: 2024 FY Results
2024 FY RESULTS Milan, March 21st, 2025
Slide 2: Our brands everywhere making customers happy and us too
Our brands everywhere making customers happy and us too.
Slide 3: 3
3
Slide 4: Our Team
4 Our Team Presenting Today ALESSANDRO MUTINELLI GABRIELLA FABOT TI Chairman & CEO CFO & IR
Slide 5: Agenda
5 1 The business in numbers 1.1 IWB at a glance 1 . 2 2 0 2 4 M a i n F i n a n c ia l R e s u l t s 1.3 Value creation path - key numbers 2 How the market cap has moved 2.1 Shares Value 2.2 IWB vs Peers 2.3 Share Value & Market cap AGENDA 2 . 4 C o n s e n s us 2 . 5 G o v e r n an c e & S h a r e
Slide 6: The business in numbers
6 01 The business in numbers 1.1 IWB at a glance 1.2 2024 Main Financial Results 1.3 Value creation path -key numbers
Slide 7: IWB at a glance
1.1 IWB at a glance 7 This is 70+ 402 80 Italian Wine Brands TOTAL EXPORT BUSINESS in numbers TURNOVER: 402 mln euros IN THE WORLD: over 80% MODEL: Over 70 Owned Brands, Private Labels We have a light asset model, not owning the land, but taking care of the key points of the value chain: ➢ winemakin
Slide 8: 2024 Main Financial Results
8 IN THE 10th YEAR SINCE THE LISTING, ITALIAN WINE BRANDS ANNOUNCES FOR 2024: TOP BRANDS GROWTH STRATEGY SUCCESS (+9%) WITH HIGH MARGINS 1.2 AND TOTAL REVENUES EQUAL TO € 401.8 MILLION 2024 Main Adj EBITDA EXCEEDS EXPECTATIONS AND REACHES A HISTORICAL HIGH OF € 50,4 MILLION EQUAL TO. 12.5% Financial
Slide 9: Value creation path – key numbers
1.3 Value creation path – key numbers 9 Revenues (€m) 500 EBITDA adj. (€m) 12,5% 450 55 12,5% 13% 11,5% 400 50 10,7% 10,9% 10,3% 11% 45 9,7% 350 9,2% 40 7,8% 8,0% 9% 300 35 250 30 7% 200 429,1 401,9 25 50,4 390,7 5% 44,3 150 313,2 20 34,0 31,1 3% 15 100 204,3 25,6 144,8 145,9 149,7 149,9 157,5 10 18
Slide 10: How the market cap has moved
10 02 How the market cap has moved 2.1 Shares Value 2.2 IWB vs Peers 2.3 Share Value & Market cap 2.4 Consensus 2.5 Governance & Shareholders’ structure
Slide 11: Shares Value
2.1 Shares Value 11 IWB shares compared to EGM Index (LTM) LTM performance is better than EGM but Market Cap at 200 mil corresponds to ✓ 4x compared to Ebitda Adj ✓ 8,8x compared to Net Result 2015 ✓ 7,5x compared to 2024 Cash generation EV/Ebitda adj: 5,7 - - - EV/Ebitda: 6,2 M&A track record Sourc
Slide 12: IWB vs Peers
2.2 IWB vs Peers 12 Market CAP Sales Ebitda EV/Ebitda (x) COMPANY Country Eur Mil Eur Mil % 2024 E 2025 E 220 402 12,5% 6,2x 5,6x 5.261 1.857 31,1% 10,8x 9,6x 626 294 30,3% 9,4x 8,7x 239 255 22% 13,2x 11,6x 114 303 16,7% 14,5x 14x 141 66 11,7% 22x 15,9x 818 923 15,8% 8,9x 8,3x 112 467 11,1% Wine pro
Slide 13: Shares Value & Market Cap
2.3 Shares Value & Market Cap 13 2015 M&A track record MARKET 60 55 72 88 94 154 365 260 180 200 mil mil mil mil mil mil mil mil mil mil CAPITALISATION source
Slide 14: Consensus
2.4 Consensus 14 Broker Analyst Target Recommendation Status Quo Price Banca Akros Andrea Bonfà 32,0 eur BUY andrea.bonfa@bancaakros.it 4 brokers currently cover IWB CFO SIM Gianluca Mozzali 37,5 eur BUY gianluca.mozzali@cfosim.com all have BUY recommendation Mickael Daponte with an average Target P
Slide 15: Governance & Shareholders' structure
2.5 Governance & Shareholders’ structure 15 Shareholders' 5,71% Board of Directors 14,80% 7,10% 72,39% Free float Provinco srl Gruppo Pizzolo Otus Capital Giorgio Pizzolo Alessandro Mutinelli Sofia Barbanera
Slide 16: 2024 FY Results
16 03 2024 FY Results
Slide 17: 2024 FY Financial achievements
17 HIGHER PROFITABILITY AND OUTSTANDING 0 CASH GENERATION STABLE OUTSTANDING REVENUES CASH GENERATION 2024 FY Eur 401,9 m Revenues +26,6 m Financial 3 -6,3% vs FY 2023 Vs NFP YE 2023 achievements SOUND & INCREASED IMPROVED NET PROFITABILITY RESULT Eur 50,4 mil + Eur 22,6 mil Eb i t d a Ad j u s t e
Slide 18: Financial Highlights
3.1 Financial Highlights IWB GROUP 18 NET SALES – KEY HIGHLIGHTS • - 4 mil euros Distance Selling • - 12 mil euro due to lower volumes/PL + Better Mix: Top Brands* about +9% • - 11 mil euros lower prices 428,9 401,8 HO.RE.CA 100% • Export revenue increase: +10% of which: 54,8 Uk + 20,5% 90% 59,3 Ire
Slide 19: Financial Highlights: revenues by area and channel
3.1 Financial Highlights 19 REVENUES BY AREA ITALY & EUROPE 2023 2024 3% 3% • High performance in Italy: +9.3% 9% 16% 10% 18% • Strong presence in key markets (UK /DE/CH/). • Increasing revenues in strategic & high potential markets: East Europe +17%) AMERICAS 72% 69% Italy Europe North America Othe
Slide 20: Distance Selling channel mix trend
20 3.1 Financial Highlights Distance Selling channel mix trend FY 2017 FY 2024 11% 36% 46% 37% 53% 18% Direct Mailing Teleselling Digital/Web Direct Mailing Teleselling Digital/Web The share of digital sales is constantly growing. Positive Ebitda Margin in a high competitive market.
Slide 21: Net Revenue – EBITDA Margin
21 3.2 Financial Highlights NET REVENUE – EBITDA MARGIN 10,3% EBITDA margin 12,5% EBITDA margin FY 2023 FY 2024 500,0 450,0 429,1 401,9 400,0 350,0 300,0 250,0 200,0 150,0 100,0 44,3 50,4 50,0 0,0 FY 2023 FY 2024 Revenues EBITDA
Slide 22: Cost Structure
22 3.2 Financial Highlights COST STRUCTURE RAW MATERIAL SERVICES PERSONNEL 291,6 70,9 262,3 25,1 25,4 65,7 FY 2023 FY 2024 FY 2023 FY 2024 FY 2023 FY 2024 • Mix improvements • 0,6 mil utilities. Increase due to additional internal • Dry products cost reduction./ • 1,8 mil sinergies productions that
Slide 23: EBITDA Increase
23 3.2 Financial Highlights EBITDA INCREASE 8,8% 11,7% 11,5% 13,5% 30,0 28,5 27,1 25,0 21,9 20,0 17,3 Better mix and Sinergies 15,0 impact 10,0 5,0 0,0 Ebitda H1 Ebitda H2 2023 2024 Revenues 196,8 191,2 232,4 210,7
Slide 24: Segment Reporting
3.3 Financial Highlights 24 SEGMENT REPORTING 2015 B2B: 41% Revenues 400,0 B2C: 59% Revenues 350,0 343,8 300,0 2020 250,0 B2B: 59 % Revenues B2C: 41% Revenues 200,0 14,5% 2,1% 150,0 2024 100,0 B2B: 71 % Revenues 49,9 58,1 50,0 B2C: 29% Revenues 0,0 1,2 B2B B2C Revenues EBITDA Increasing revenues wit
Slide 25: Ebitda to Net Result bridge
25 3.4 Financial Highlights 50 45 50,4 10,8 40 3,8 35 35,8 5,0 30 25 30,8 8,2 20 22,6 +37% vs FY 23 FY2024 15 10 5 0 Ebitda 2024 Depr. Amort. & Non Recurring EBIT 2024 Net Fin. Inc / EBT 2024 Taxes Net Result 2024 Provisions (Costs) 50 45 40 44,3 13,6 35 30 3,4 25 27,4 7,8 20 FY2023 19,6 3,1 15 16,5
Slide 26: NFP walking & Free cash flow yield
3.4 NPF walking & Free cash flows yield 26 140,0 +31,3 mil Free Cash Flow 120,0 50,4 46,6 FCF Yield Ltm> 18% -2,0 102,2 100,0 -5,0 -8,2 -5,0 80,0 70,9 65,1 0,0 59,5 60,0 -32,2 -5,6 40,0 FY2024 20,0 0,0 120,0 +33,7 mil Free Cash Flow 41,0 3,4 100,0 94,7 -7,6 -3,1 80,0 -7,8 71,2 0,0 70,9 61,0 -15,7 -0
Slide 27: Net Financial Position Trend
27 3.4 Financial Highlights NET FINANCIAL POSITION TREND 146,5 mil 115,9 mil 89,3 mil LEVERAGE 4,72 LEVERAGE 2,62 LEVERAGE 1,77 160,0 7,6 140,0 17,0 12,2 15,7 120,0 4,4 100,0 15,2 14,5 0,4 80,0 13,4 136,8 134,1 60,0 121,9 92,1 96,3 40,0 75,5 20,0 - FY 2022 FY 2023 FY 2024 Net Debt (€m) IFRS 16 (€m)
Slide 28: Market
POGGIO Dnt CONCONE TOSGANA Market 28
Slide 29: 2024 Wine Import
4 How do we intend to increase value creation? 29 A) 2024 Wine Import Import: % change in values 2024 vs 2023, total wine From the World From Italy United States 1,6% 6,6% Canada 0,2% 1,3% Japan -7,7% -0,7% China 37,6% -9,8% Switzerland -7,1% -2,9% Australia -6,4% -0,1% South Korea -8,7% -9,6% Norwa
Slide 30: Sparkling import
4 How do we intend to increase value creation? 30 B) Sparkling Import: % change in values 2024 vs 2023, on sparkling wines 11,2% 11,0% 10,2% 9,4% 8,9% 5,9% 4,8% 4,5% 3,8% 1,2% -2,0% -2,0% -4,4% -5,1% -6,3% -6,9% -7,3% -7,8% -9,6% -11,4% -12,1 -12,3% -12,6% -12,7% -14,4% -15,9% United Japan Switzerla
Slide 31: The most interesting niches
4 31 The most interesting niches C) IWB is in the right product categories, which are expected to grow the most Organic Wines – Key drivers Market ➢ Millennials CAGR 25 Bn US$ 11,3%* ➢ Quality, Health, Sustainability ➢ Packaging innovation 9Bn US$ ➢ European leadership NO- LOW Alcohol – Key drivers
Slide 32: What's next
32 05 What’s next
Slide 33: Value Growth Actions
5 Value Growth Actions 33 TOP LINE TOP BRANDS NO ALCOHOL AI Revenues Increase LAUNCH (Artificial Intelligence) COSTS Full Year Synergies M&A Near to be closed Sustainability 2024 CSRD Report to be published 1° Half
Slide 34: Sustainability
SUSTAINABILITY 34 ISO 14001:2015 – July, 2nd 2024 For the following activities Development, processing, production and bottling of wines and wine products. Storage and delivery. We look ahead and innovate to keep up with the times. VIVA Certification Everyone is responsible for ▪ Air indicator seizi
Slide 35: Conclusion and Q&A
35 06 Conclusion and Q&A Appendix Follow us: rirowines.com
Slide 36: Appendix: Financials
Appendix 1 Financials Italianwinebrands.it
Slide 37: Net Sales – Wholesale
37 7.1.1 Financials NET SALES – WHOLESALE Eur Millions 2016 2017 2018 2019 2020 2021 2022 2023 2024 ∆ % 23/24 Cagr 16/24 Wholesale - Italy 0,0 0,0 2,5 3,6 5,5 24,7 42,5 40,1 48,7 21,54% NA Wholesale - International 60,1 69,0 74,7 84,0 114,1 187,4 236,6 271,8 235,7 (13,29%) 18,62% UK 1,1 5,1 9,7 13,2
Slide 38: Net Sales – Ho.re.ca
38 7.1.2 Financials NET SALES – HO.RE.CA Eur Millions 2016 2017 2018 2019 2020 2021 2022 2023 2024 ∆ % 23/24 Cagr 16/24 Ho.re.ca. - Italy 0,2 0,5 2,9 2,2 (23,77%) NA Ho.re.ca. - International 17,4 41,2 51,9 57,2 10,10% NA UK 12,8 26,8 27,9 33,6 20,51% NA USA 1,8 7,3 8,8 8,3 (4,93%) NA Germany 0,5 1,
Slide 39: Net Sales – Distance Selling
39 7.1.3 Financials NET SALES – DISTANCE SELLING 2016 2017 2018 2019 2020 2021 2022 2023 2024 ∆ % 23/24 Cagr 16/24 Distance selling Italy 41,0 37,3 31,4 29,7 34,0 32,8 27,6 24,4 22,7 (7,00%) (7,11%) Direct Mailing 18,1 16,3 14,8 14,1 16,1 15,4 12,3 9,9 8,5 (13,76%) (8,92%) Teleselling 20,6 17,8 12,7
Slide 40: Extended P&L
40 7.2 Financials EXTENDED PL 2016-2023 Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 31.12.2024 Net Sales 145.937 149.736 149.863 157.494 204.311 408.934 430.312 42
Slide 41: Extended Balance Sheet
41 7.3 Financials EXTENDED BS 2016-2023 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 31.12.2024 Intangibles & Goodwill net of tax reserves 75.890 76.656 78.385 79.424 94.288 208.620 245.899 247.952 246.749 Tangibles 15.526 14.232 14.736 14.539 1
Slide 42: Extended Cash Flow
42 7.4 Financials EXTENDED CASH FLOW 2016-2024 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 31.12.2024 Ebitda reported 14.158 13.422 16.304 23.604 38.809 35.871 40.962 46.620 +(-) changes in NWC 1.206 (2.186) (1.686) 440 (13.487) (4.346) 3.220 (
Slide 43: EBITDA Increase
43 7.4 Financial Highlights EBITDA INCREASE 8,8% 11,7% 11,5% 13,5% 30,0 28,5 27,1 25,0 21,9 20,0 17,3 15,0 10,0 5,0 0,0 2023 2024 Ebitda H1 Ebitda H2 Source:
Slide 44: Assets held for sale
44 7.5 Assets held for sale ASSET Book Value Euro th Land and building 7.381 Plants 1.928 Equipments 367 Others 64 TOTAL 9.740 The asset represents the previous Valle Talloria plant & building located in Piedmont in the prestigious Langhe area. Potential Value is represented on both - productive and
Slide 45: Appendix: M&A Journey & Business Model
• Appendix 2 M&A Journey & Business Model • Italianwinebrands.it
Slide 46: Business Evolution
BUSINESS EVOLUTION M&A Journey and Value Creation path 46 • Integration of acquisitions to maximize synergies and • 1° ever Italian company to • Exploiting value, volumes • Strong market and • Aim to create a unique simplify the business be listed with the aim of and margins from the resilience to C
Slide 47: IWB M&A journey
IWB M&A journey 47 Provinco Italia, founded in Barbanera is based in 1970, had become leader Tuscany and was founded in the production and Enoitalia founded in 1986, had in 1938. It had been export of wine to Italian online shop grown significantly over the years producing wines with international w
Slide 48: IWB reshaped the wine industry in Italy
48 08 IWB reshaped the wine Industry in Italy
Slide 49: IWB reshaped the wine industry
49 In an extremely fragmented market characterized by thousands of small businesses, IWB was the first winery to be listed on the stock exchange in Italy in 0 2015, with the aim of consolidating the sector and expanding competitively across all markets. We achieved the target to become the largest p
Slide 50: We are asset light and focus on cash generation
50 IWB has no agricultural investments, which are capital intensive, have too low profitability, are subject to climate 0 change, and do not allow flexibility in terms of production based on market demands. WE ARE ASSET LIGHT THE VALUE CHAIN: AND WE FOCUS ON 8 Vinification, Sales, Agricultural blend
Slide 51: We are market driven
51 We don't produce anything that isn't already sold! It's a reversed approach compared to agricultural producers, who first produce and then seek customers. 0 We can do that, because we have no investments in vineyards, and we offer to our customers what they love to buy, keeping low inventories, h
Slide 52: Scale, efficiency, competitiveness
52 We are the largest private producer of Italy, we run three state of the art and highly efficient, conveniently located facilities. 0 SCALE, EFFICIENCY, THE IWB COMPETITIVE FACTORS RAW MATERIAL SOURCING HIGHLY COMPETITIVE PRODUCTION LARGEST PORTFOLIO OF BRAND BUILDING STRONG SALES 8 POWER ITALIAN
Slide 53: Our Team: Italian wine people
53 The strength of IWB lies in a highly qualified team. 350 motivated employees are committed to delivering 700,000 bottles worldwide every 0 single day. IWB KEY PEOPLE OUR TEAM: ITALIAN > 20 > 30 > 40 WINE QUALITY CONTROLS KEY ACCOUNT 8 WINEMAKERS EMPLOYEES MANAGERS PEOPLE IWB CORE COMPETENCE Growi
Slide 54: How do we intend to increase value creation?
54 09 How do we intend to increase value creation?
Slide 55: Global export wine market
9 55 How do we intend to increase value creation? A) The global export wine market is expected to grow and Italy and IWB are leading exporters EXPORT WINE The value of the International MARKET VALUE wine trade is 37 B € (of which (€ Billions) France 12 B €, and Italy 7,7 B €) Source Ismea – mod. And
Slide 56: Right product categories: sparkling and premium
9 56 How do we intend to increase value creation? B) IWB is in the right product categories, which are expected to grow the most Sparkling and Premium wine is forecasted 11% Sparkling/Prosecco to become a >$100bn market by 2025, 5,0% IWB FOCUS 1 and we intend to be leaders globally 3,5% • Sparkling/
Slide 57: Focus on USA and Emerging Markets
9 57 How do we intend to increase value creation? C) We will focus on USA and Emerging Markets A selected number of markets matter most in the premium and luxury segment • Global premium and luxury wine segment sales totaled $60bn in 2020, with US being the predominant market Largest premium and lux
Slide 58: Improve net financial position and selected M&A
9 58 How do we intend to increase value creation? D) We will improve our Net Financial Position and exploit new selected M&A activities We have a historic high cash generation, which allows us to improve consistently our net financial position. For example, as of 31.12.23, this reduction in NFP has
Slide 59: Conclusion
59 Conclusion This document has been prepared by IWB SpA (“IWB SpA” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by th
Slide 60: Thank You
Thank You Italianwinebrands.it