Elopak Asa · OSL:ELO
Elopak Asa — Q4 2022 Earnings Presentation
29 slides from Elopak Asa's earnings presentation, Feb 21, 2023
Slide 1: Q4 2022 Quarterly Presentation
Q4 2022 Quarterly Presentation AMARCH Leading2021 Global Fresh Liquid Packaging Company and True Sustainability Champion March 2021 FEBRUARY 21, 2023
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: Elopak at a Glance
Elopak at a Glance 11 The World’s Largest Player in Fresh Liquid Carton Packaging 22 14 Billion Cartons Produced in 2022 Across 11 Manufacturing Sites 3 Product Suite with More Than 400 SKUs 44 Sales to 70+ Markets with ~2,600 Employees 56 Preferred choice among customers since 1957 Historical Reven
Slide 4: We're in the business of sustainable packaging
We’re in the business of sustainable packaging
Slide 5: We're in the business of protecting essential commodities
We’re in the business of protecting essential commodities
Slide 6: We're in the business of enabling world nutrition
We’re in the business of enabling world nutrition
Slide 7: Sustainability is at the core of who we are and everything we do
Click to edit Master text styles Sustainability is at the core of who we are and everything we do PEOPLE PLANET PROFIT Sustainable carton makers Towards net-zero Packaging by Nature® The 2022 Annual and Sustainability Reports will be published on March 31, 2023
Slide 8: Russia Entity Deconsolidated as of July 15, 2022
Russia Entity Deconsolidated as of July 15, 2022 On July 15, 2022 Elopak entered into an agreement to divest the Russian legal entity. The agreement terms implies that Elopak lost control of the Russian entity on the date it was signed, hence the entity is no longer consolidated in the Elopak Group.
Slide 9: Q4 and FY 2022 Business Performance
Q4 and FY 2022 Business Performance CEO Thomas Körmendi
Slide 10: Summarizing 2022: Resilience in Changing Climates
Summarizing 2022: Resilience in Changing Climates Significant Extraordinary Global disruptions in inflation on input costs - board, price initiatives in EMEA supply chains aluminum, LDPE, utility, other implemented throughout the year Positive customer reception of Divested Russian operational Conti
Slide 11: Q4 2022 Business Highlights
Q4 2022 Business Highlights Profitable growth in Q4, despite the continued volatile environment - driven by price increases on our products, continued growth in Americas, and acquisitions Revenue at Adjusted EBITDA of EMEA Price initiatives in Americas with strong 267 EURm 36 EURm and new revenue fr
Slide 12: Financial Highlights
Financial Highlights Q4 2022 strong revenue and Adj. EBITDA growth. FY 2022 strong growth and maintained Adj. EBITDA despite significant inflation. Group Revenues (EURm), CAGR (%) Group Adjusted EBITDA (EURm) 9.7% 13.5% 13.3% 11.7% +20% +5% 1.024 119 114 855 +73% +24% 2021 2021 36 267 2022 2022 215
Slide 13: Business Update: EMEA
Business Update: EMEA Solid Q4-22 performance – growth mainly driven by price increases and acquisitions in MENA & India Revenues (EURm) - EMEA Key Commentary ▹ Main drivers for revenue growth are: – Price increases (19 EURm) +16% – New revenue from acquisitions (14 EURm ) EURm – Volume growth on Ro
Slide 14: Business Update: Americas
Business Update: Americas Quarterly revenue is up by 25% YoY, continued strong profitability Revenues (EURm) - Americas Key Commentary ▹ Main drivers for revenue growth are: – Growth in juice and plant-based segments – Stable school milk volumes YoY EURm – Price increases in passthrough contracts +3
Slide 15: Five Profitable Growth Drivers Steer Elopak's Future Direction
Five Profitable Growth Drivers Steer Elopak’s Future Direction TODAY MID TO LONG TERM GOAL FRESH BROADEN ASEPTIC GROWTH PLASTIC TO CARTON COMMERCIAL OPPORTUNITY GEOGRAPHIC ROADMAP CONVERSION EXCELLENCE IN NORTH AMERICA FOOTPRINT Global Fresh Execute Americas Growth on the MENA: Profitable Non-Food g
Slide 16: Examples of Our Growth Strategy in the Market
Examples of Our Growth Strategy in the Market Alpro, Finland and Sweden Don Simon, Spain Glanbia, Ireland Boxed Water Is Better®, USA New plant-based drink in Pure- First to launch products in Switches no 1 fresh milk brand Joined forces with CorePower Yoga Pak® cartons Pure-Pak® eSense cartons in I
Slide 17: Q4 and FY 2022 Financial Performance
Q4 22 and FY 2022 Financial Performance CFO Bent Kilsund Axelsen
Slide 18: Q4 Adjusted EBITDA
Q4 Adjusted EBITDA EBITDA growth YoY in Q4, primarily driven by price increases in Europe, acquisitions in MENA & India, growth in Americas Adj. EBITDA (EURm), CAGR % and Adj. EBITDA Margin (%) Key Commentary ▹ EMEA EMEA Americas – Q4 strong revenue growth supported margins – Price increases (+19 EU
Slide 19: Adjusted EBITDA, Q4 2022
Adjusted EBITDA, Q4 2022 EBITDA growth YoY in fourth quarter, primarily driven by volume growth, price increases and acquisitions Quarterly Adjusted EBITDA (EURm) +15 EURm +73% 9 36 4 2 0 26 21 Q4 2021 EBITDA Net Revenue Mix Raw materials* Operations FX** Other Q4 2022 EBITDA *Raw materials are only
Slide 20: Adjusted EBITDA, FY 2022
Adjusted EBITDA, FY 2022 EBITDA growth, primarily driven by price increases, volume growth, and acquisitions. FY 2022 Adjusted EBITDA (EURm) +6 EURm +5% 50 72 22 119 114 5 1 FY 2021 EBITDA Net Revenue Mix Raw materials* Operations FX** Other FY 2022 EBITDA *Raw materials are only related to carton p
Slide 21: Cash Flow FY 2022
Cash Flow FY 2022* Working capital build-up is driven by inflation and price increases Cash Flow from Operations Cash Flow to Investments Cash Flow from Financing 76 70 15 34 0 24 26 88 142 42 5 20 20 Cash at Profit Depreciation, Change Other Acquisitions Purchase Other Dividend Other Net FX Cash at
Slide 22: Financial Position
Financial Position Leverage Ratio in Q4 2022 remains at 3.3x, as improved EBITDA is offset by increased lease liability and bank debt Leverage Ratio1 Key commentary Net Debt Leverage (mEUR) Ratio 400 391 5.0 ▹ Net debt of EUR 391 million 363 350 345 347 340 347 4.5 – Bank debt EUR 301 million 91 329
Slide 23: Dividend Proposal of NOK 0.86 Per Share
Dividend Proposal of NOK 0.86 Per Share Dividend Policy Historical Dividend Payments 0.86 0.75 52% 50% Elopak will initially target a dividend pay-out ratio of approximately 50-60% of the Group’s Adjusted net profit. Dividend NOK per share % of Adj. Net Profit 2021 2022 22
Slide 24: Outlook
Outlook ▹ Geopolitical and macro-economic uncertainty in 2022 continues into 2023 ▹ Increased liquid board cost for Elopak will take effect from Q1 FY 2023 ▹ Significant inflationary pressures on input costs, continue to impact our EBITDA margin in 2023 ▹ There will be volatility between quarters as
Slide 25: Summary
Summary ▹ Elopak ended the year on a strong note, delivering solid profitable organic growth ▹ We have proactively responded both strategically and operationally and positioned the company for the future ▹ Although we proved our resilience in a demanding year, we recognize that we are still in volat
Slide 26: Financial calendar
Financial calendar Event Date Q1 2023 Financials May 4, 2023 Annual General Meeting May 11, 2023 Q2 2023 Financials August 17, 2023 Q3 2023 Financials November 2, 2023
Slide 27: Q&A
Q&A
Slide 28: Appendix
Appendix
Slide 29: Quarterly Financials Q1 20 to Q4 22
Quarterly Financials Q1 20 to Q4 22 Quarterly Revenue (EURm), Adj. EBITDA (EURm), and Adj. EBITDA Margin (%) 280 0.30 272 270 267 260 259 253 0.25 250 240 233 230 226 0.20 220 220 216 215 213 210 210 204 0.15 200 50 14.7% 0.10 13.5% 14.9% 11.7% 40 12.3% 14.0% 14.8% 13.9% 12.6% 11.1% 10.2% 30 9.7% 0.