Viscofan, S.a. · BME:VIS
Viscofan — H1 2019 Earnings Presentation
17 slides from Viscofan's earnings presentation, Jul 31, 2019
Slide 1: Results January-June 2019
Visc)fan The casing company Results January — June 2019 31 July 2019
Slide 2: 2Q19 results highlights
2Q19 results highlights Quarterly revenue was up 5.4% setting a new all-time high. €208.6mn Revenue growth driven by the strength of North America and Latam . Recurring EBITDA grew by 0.7% against a backdrop of higher energy costs and €48.9mn wage inflation. If we include in 2018 the non-recurring i
Slide 3: New all-time high in quarterly revenue
New all-time high in quarterly revenue... REVENUE. Viscofan Group (€ million) 208.6 208.2 201.2 () 1878 M922 1Q 2Q 3Q 4Q 2018 2019 Vise)fan CASING SALES (€ million) 197.0 197.0 1912 | 73 180.3 1Q 2Q 3Q 4Q CO-GENERATION REVENUE (€ million) 105 10.0 mi 1.6 8 plies 1Q 3Q 4Q 2018 2019 January June 2019
Slide 4: Driven by better price mix and forex
...driven by better price mix and forex. REVENUE. Quarterly growth contribution 2Q19 45.4% 7 13.3.) vs. 2Q18 Like-for-like! +4.6p.p. v +3.1p.p. +2.9pp — +21 pp. 10 2Q 1Q 2Q 1Q 2Q Like-for-like! Co-generation Forex casings 1 Like-for-like: For comparative purposes, like-for-like growth excludes the i
Slide 5: Growth in all reporting areas against market weakness
Growth in all reporting areas against a backdrop of market weakness, primarily on the Europe and Asia region. REVENUE. Quarterly change MReported Mi Like-for-like! ~~ NORTH AMERICA é\ — LATAM “y) ——2 +19.1% +19.6% ___ EUROPE AND Va ASIA-PACIFIC / { +10.6% +6.1% +5.9% soem 43.5% : +1.2% Oy 423% 704 1
Slide 6: Revenue growth driven by price/mix, forex and Globus acquisition
Vise)fan Revenue growth driven by price/mix, forex and Globus acquisition REVENUE. Growth contribution (€ million) +6.3 % 1H19 vs. 1H18 +9.6MN +14.8MN -0.2 MN (3857) V3.9 p-p. -0.1 p.p. +2.5 p.p. Like-for-like 1 casings Co-generation Forex me 1H19 1 Like-for-like: For comparative purposes, like-for-
Slide 7: Strengthening our competitive position in all reporting areas
Strengthening our competitive position in all reporting areas. REVENUE 1H19. Breakdown by geographical area ' (€ million) ( 33.4 ) croup ..10:3%, | V5.1 H18 _ Like-for-like2 | N SJ 55.7% 291% EUROPE AND =) é ” &) 2 ASIA-PACIFIC Z NORTH AMERICA- oe LATAM vy) —~ 7 15.2% \ 34. QB 90) By tas. GE / vs. 1
Slide 8: Top line growth against higher energy costs and wage inflation
Top line growth against a backdrop of higher energy costs and wage inflation, and non- recurring impacts. P&L1H19. % year-on-year change __ Energy costs and CO, 15.7% emission allowances +15.1% || (116.8% vs. 1H18) + Globus incorporation = Non-recurring impact in 2019. Strike in the US: -€1.9 Mn 415
Slide 9: Costs headwinds offset by forex tailwinds
Costs headwinds offset by forex tailwinds. Recurring! EBITDA 1H19. y-o-y growth contribution(€ million) 0.0% 1H19 vs. 1H18 -4.6MN -4.9 p.p. Like-for-like 7 Casings Forex 744, -8.3p.p. -1.7 p.p. 1Q19 vs.1Q18 — 2Q19 vs.2Q18 1H18 1H19 Margin 24.6% * 23.1% 1 Recurring results: a) In 2019 the amount excl
Slide 10: Capex requirements reduced significantly after upgraded assets
Capex requirements reduced significantly after upgraded assets... CAPEX 1H19 (€ million) CAPEX 2019e. Breakdown New cellulose technology in by type Caseda. i ¥ New production modules installed in Capacity Pos p SP April and June 2019. 70% of the project ve Process \, upgrade Vv Learning curve accord
Slide 11: Financed with operating cash flow while increasing shareholder remuneration
Vise)fan ... financed with operating cash flow while increasing shareholder remuneration. NET BANK DEBT bridge (€ Million) +79.7 — -92.9 +44.2 3.4 473.0 Forex and others +15.4 Net bank Net bank debt! 422.9 Shareholder debt! Dec'18 remuneration’ Jun’19 Working 471 capital - change Capex EBITDA Tax pa
Slide 12: Guidance update
Guidance update (€ million) 2019e €825/840Mn | €193/200Mn €95/102Mn +5%/7T% +2%/5% -12%/-6% Revenue Recurring’ EBITD, Recurring’ Net profit New Guidance Former Guidance 1 Recurring results: a) In 2019 the amount excludes €1.9 million of non-recurring expenses related with the strike at the Danville
Slide 13: To wrap-up
To wrap-up v Revenue growth in all reporting areas, highlighting the strength in Latam and North America, but with lower growth in Europe and Asia due to market weakness (ASF, competitive environment). ¥ Higher operating costs driven by Globus incorporarion, energy costs and wages, and the strike in
Slide 14: Appendix. 2Q19 Main financial figures
Vise)fan Appendix. 2Q19. Main financial figures (€ million) ——Recurring * —__Reported ___ % y-o- 2Q19 %y-o-y “elect 2Q19 %y-o-y Revenue 208.6 +5.4% +3.3% 208.6 +5.4% EBITDA 48.9 +0.7% -1.7% 47.0 -14.2% EBITDA margin 23.4% -11p.p. -11 p.p. 22.5% -5.2p.p. Operating profit 31.2 -5.0% 29.3 -25.0% Net pr
Slide 15: Appendix. 1H19 Main financial figures
Appendix. 1H19. Main financial figures (€ million) ——Recurring * —__Reported ___ % y-o- 1H19 %y-0-Y titer uce 1H19 %y-o-y Revenue 409.9 46.3% +3.8% 409.9 +6.3% EBITDA 94.8 0.0% -4.9% 92.9 -15.0% EBITDA margin 231% -1.5 p.p. -2.1 p.p. 22.7% -5.6p.p. Operating profit 59.2 -75% 574 -26.9% Net profit 47
Slide 16: Appendix. Alternative Performance Measures
Appendix. Alternative Performance Measures The Alternative Performance Measures included in this report are as follows: Vise)fan The EBITDA, or operating profit before depreciation and amortisation, is calculated excluding depreciation and amortisation costs from the operating profit. The EBITDA is
Slide 17: Appendix. Disclaimer
Vise)fan Appendix. Disclaimer Free translation from the original in Spanish, in event of discrepancy, the Spanish- language version prevails. This document may include statements about intentions, expectations or forecasts of the Company additional to the mandatory financial reporting whose sole pur