Vidrala Sa · BME:VID
Vidrala Sa — Investor Presentation (May 2019)
26 slides from Vidrala Sa's investor presentation, May 2019
Slide 1: Company Presentation May 2019
COMPANY PRESENTATION MAY 2019
Slide 2: Disclaimer
DISCLAIMER This presentation includes or may include representations or estimations concerning the future about intentions, expectations or forecasts of VIDRALA or its management. which may refer to the evolution of its business performance and its results. These forward looking statements refer to
Slide 3: Index
INDEX 1. GENERAL OVERVIEW 2. BUSINESS FUNDAMENTALS 3. FINANCIALS 4. TARGETS 5. ANNEXES
Slide 4: Vidrala, at a glance
VIDRALA, AT A GLANCE Vidrala manufactures glass containers for a wide variety of products in the food and beverage industry. We are one of the main glass container manufacturer in Western Europe, leaders in the Iberian market, co-leaders in the British market and supplier of reference in Italy, Fran
Slide 5: Main figures FY 2018
MAIN FIGURES FY 2018 SALES EARNINGS 955.4 EUR million 4.47 EUR per share +3.8% YoY organic +30.0% YoY EBITDA FREE CASH FLOW 239.4 EUR million 101.3 EUR million +7.9% YoY organic CREATING VALUE AND FUTURE IN A SUSTAINABLE WAY 5
Slide 6: Our history
OUR HISTORY 1965 The origin of Vidrala 1965 - Vidrala begins operations in Alava (Spain) 1975 Vidrala goes public 1985 1985 - IPO Madrid and Bilbao stock exchanges Domestic expansion 1989 - Second greenfield in Albacete (Spain) 1995 Internationalisation 2003 - Acquisition of one plant in Portugal 20
Slide 7: Operating profile
OPERATING PROFILE NET SALES. EBITDA MARGIN. Since 2000, EUR million. Since 2000, as percentage of sales. 1.000 30% 800 20% 600 400 10% 200 0 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2
Slide 8: Cash profile
CASH PROFILE EBITDA. FREE CASH FLOW. Since 2011, EUR million. Since 2011, EUR million. 250 120 100 200 80 150 60 100 40 50 20 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2011 2012 2013 2014 2015 2016 2017 2018 52% CASH CONVERSION OF EBITDA 2011-2018 VALUE CREATION, MATERIALISED IN A SUSTAINED CASH G
Slide 9: Financial profile
FINANCIAL PROFILE FINANCIAL SOLVENCY. Six-monthly evolution of debt since 2015, EUR million and times EBITDA. 2.9x 750 3x 2.5x 600 2.2x 2.2x 2.1x 1.9x 1.7x 2x 450 1.6x Acquisition of Santos Barosa EUR 252.7 300 million (EV) 474 487 478 1x 404 370 411 150 322 299 0 0x Jun-15 Dec-15 Jun-16 Dec-16 Jun-
Slide 10: Earnings profile
EARNINGS PROFILE EARNINGS PER SHARE. Since 2011, EUR per share. 5,0 4,0 3,0 2,0 1,0 0,0 2011 2012 2013 2014 2015 2016 2017 2018 10
Slide 11: Shareholder remuneration
SHAREHOLDER REMUNERATION CASH DIVIDENDS. Since 2000, EUR million. 35 +15% 30 25 20 15 10 5 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 A DIVIDEND POLICY FOCUSED ON LONG TERM STABILITY ANNUAL GROWTH, COHERENT WITH PREVAILING BUSINESS CONDITION
Slide 12: 2018 results distribution
2018 RESULTS DISTRIBUTION PROPOSED DIVIDEND PAYMENTS FOR 2019. EUR cents per share. February 14th, 2019 Interim dividend EUR 76.64 +10% cents per share YoY change July 12nd, 2019 Complementary dividend EUR 29.17 +10% cents per share YoY change + EUR 4.00 cents per share as attendance bonus to the sh
Slide 13: Business fundamentals
BUSINESS FUNDAMENTALS Understanding the european glass packaging industry
Slide 14: Industry fundamentals
INDUSTRY FUNDAMENTALS 1 LOGISTICS. Local sales nature. Natural characteristics of hollow glass containers limit logistics. Customers’ packaging activity demands service on time and supply flexibility. Proximity to the customer and service quality determines sales capabilities. 2 CONTINUOUS PROCESS.
Slide 15: Demand fundamentals: glass packaging production
DEMAND FUNDAMENTALS The glass packaging market in Europe Our key geographical regions SOLID AND STABLE STRATEGIC MARKETS FOR THE SECTOR Glass containers demand in Europe vs GDP. Glass packaging production vs GDP per capita. Annual variation (accumulated), base year 2000. 70 GLASS PACKAGING PRODUCTIO
Slide 16: Product fundamentals
PRODUCT FUNDAMENTALS GLASS, THE BEST OPTION Environmentally friendly Glass is a 100% recyclable material that can be shaped over and over again without losing any of its properties or advantages. The healthiest type of packaging It is a completely hygienic material, impervious to gases, vapour, and
Slide 17: Vidrala fundamentals
VIDRALA FUNDAMENTALS Vidrala’s commercial positioning is focused on geographic regions and product segments of long term strategic value. Vidrala sells its products to a strong customer base composed of a solid balance between blue chip customers, multinational brand owners and domestic packagers. 2
Slide 18: Competitive landscape
COMPETITIVE LANDSCAPE EVOLUTION OF MARKET SHARES IN WESTERN EUROPE. 2018 vs 1990. TOP 4 PLAYERS 1990 TOP 4 PLAYERS 2014 14% 20% 29% 13% 20,0% 58% 1990 2018 12% 29,1% 11,5% 15% 8% 12,0% AVIR 29% 8,0% 13,3% 2% 1,8% 28,6% TOP 4 PLAYERS: 41,8% TOP 4 PLAYERS: 82,6% A DYNAMIC ATTITUDE TOWARDS CONSOLIDATIO
Slide 19: Competitive landscape: location of production sites
COMPETITIVE LANDSCAPE LOCATION OF PRODUCTION SITES Internal sources. Some facilities, especially in Eastern Europe, are not identified in the map. 19
Slide 20: Financials
FINANCIALS Latest earnings release
Slide 21: Q1 2019 results. Sales
Q1 2019 RESULTS. Sales. SALES. YoY change, EUR million. +10.1% 300 YoY +9.6% +0.5% 250 240.3 200 218.2 150 100 50 0 Q1 2018 Organic FX Q1 2019 change effect 21
Slide 22: Q1 2019 results. EBITDA
Q1 2019 RESULTS. EBITDA. EBITDA. YoY change, EUR million. 70 +11.4% YoY 60 +10.9% +0.5% 50 57.2 51.3 40 30 20 10 0 Q1 2018 Organic FX Q1 2019 change effect 22
Slide 23: Q1 2019 results. EBITDA margin
Q1 2019 RESULTS. EBITDA margin. EBITDA MARGIN. YoY change, as percentage of sales. 27% 25% 23.5% 23.8% 23% +30 bps 21% 19% 17% 15% Q1 2018 Q1 2019 23
Slide 24: Q1 2019 results. Debt
Q1 2019 RESULTS. Debt. NET DEBT. YoY evolution since 2015, in EUR million and times EBITDA. 800 2.9x 3,0x 700 2.5x 2,5x 2.2x 600 1.9x 2,0x 500 1.7x 400 1,5x * 300 1,0x 491 503 200 402 426 327 0,5x 100 0 0,0x mar-15 mar-16 mar-17 mar-18 mar-19 *The increase is due to the acquisition of Santos Barosa,
Slide 25: 2019 Outlook
2019 OUTLOOK Actuals Last Twelve Months Full Year 2019 Full Year at March 2019 Trends 2018 Sales +3.8% YoY organic +5.4% YoY organic Mid-digit growth supported on price/mix growth like-for-like like-for-like and moderate volume contribution. Gradual modest expansion supported on Operating 25.1% 25.1
Slide 26: Vidrala, S.A. Investor Relations
VIDRALA, S.A. Investor Relations Tel: +34 94 671 97 50 atencion_al_inversor@vidrala.com www.vidrala.com