Sig Group Ag · SIX:SIGN
Sig — H1 2024 Earnings Presentation
25 slides from Sig's earnings presentation, Jul 30, 2024
Slide 1: H1 2024 financial results
H1 2024 financial results SIG Group AG Samuel Sigrist, CEO Anne Erkens, CFO July 30, 2024
Slide 2: Disclaimer and cautionary statement
Disclaimer and cautionary statement The information contained in this presentation is not for use within any Neither SIG nor any of its directors, officers, employees, agents, affiliates or These alternative non-IFRS measures are presented as we believe that they country or jurisdiction or by any pe
Slide 3: H1 2024 overview
H1 2024 overview Samuel Sigrist, CEO
Slide 4: H1 2024 business summary
H1 2024 business summary Carton outperformance while in bag-in-box decline slowed Continued solid H1 revenue Bag-in-box 2024 guidance Strong demand for demand for growth North America update debt re-financing aseptic fillers H1 carton growth at Improvement in Q2 Revenue growth at Continue to expect
Slide 5: H1 2024 financial summary
H1 2024 financial summary Revenue growth gained momentum throughout H1 Revenue Adjusted EBITDA Adjusted net Free cashflow €1,573 million income +2.2% €369 million €120 million €(77) reported million (H1 2023: €384 m) (H1 2023: €144 m) (H1 2023: €(213) m) +3.0% Adjusted EBITDA Adjusted diluted consta
Slide 6: Q2 2024 financial summary
Q2 2024 financial summary Q2 2024 over Q1 2024 sequential improvement across KPIs Revenue Adjusted EBITDA Adjusted net income Free cashflow €852 million +5.0% reported €214 million €80 million €24 million (Q2 2023: €209 m) (Q2 2023: €80 m) (Q2 2023: €(118) m) +5.7% Adjusted EBITDA constant currency
Slide 7: Regional summary: Europe
Regional summary Europe Performance driven by volume growth in dairy • H1 revenue growth at constant currency and constant resin 6.6% € million H1 2023 H1 2024 Q2 2024 • Growth driven by previous filler placements and Revenue 486 517 266 increased milk supply for aseptic processing Revenue growth1 6
Slide 8: Regional summary: India, Middle East and Africa
Regional summary India, Middle East and Africa Strong Q2 performance after slow start to the year • H1 revenue growth at constant currency and constant resin 11.2% € million H1 2023 H1 2024 Q2 2024 • Continued strong demand in India, construction of Revenue 200 221 130 aseptic sleeves plant on sched
Slide 9: Regional summary: Asia Pacific
Regional summary H1 revenue growth at constant currency and Asia Pacific • constant resin 2.8% Some market weakness in China but • Strong prior year Q2 comparison SIG gaining share • Carton continues to gain share despite end market softness € million H1 2023 H1 2024 Q2 2024 • In aseptic carton, SIG
Slide 10: Regional summary: Americas
Regional summary Americas Return to growth in Q2 • H1 revenue declined by 4.9% at constant currency and constant resin € million H1 2023 H1 2024 Q2 2024 • Aseptic carton growth gaining momentum after slow start to the year Revenue 435 419 225 • Bag-in-box volume decline slowed in Q2 although Revenue
Slide 11: Financials
Financials Anne Erkens, CFO
Slide 12: H1 Adjusted EBITDA
H1 Adjusted EBITDA Q2 2024 adjusted EBITDA margin above 25% • Negative FX impact mainly driven € million by non-repeat of 2023 benefit in 24.9% 1 23.5% 1 Americas and transactional FX effects in H1 2024 • Positive top line contribution in Q2 16 as revenue growth gains 6 -12 momentum -12 -8 -4 • Raw
Slide 13: EBITDA reconciliation
EBITDA reconciliation • Gain from unrealized operating Six months Six months ended June ended June derivatives reflects favorable € million 30, 2023 30, 2024 hedging for raw materials vs. spot EBITDA 350 394 market development Unrealized (gain)/loss on operating derivatives 11 (11) Restructuring cos
Slide 14: Net income reconciliation
Net income reconciliation Six months ended Six months ended June June € million 30, 2023 30, 2024 Profit for the period 53 85 Non-cash foreign exchange impact of non-functional currency loans and realized 1 1 foreign exchange impact due to refinancing Amortization of transaction costs 2 2 Net change
Slide 15: Capital expenditure
Capital expenditure Six months Six months ended ended • PP&E reflects investment in aseptic June 30, 2023 June 30, 2024 € million carton plant India and China chilled PP&E and intangible assets (net of sales) 93 61 plant Filling lines and other related equipment 129 106 • H1 filler CAPEX below prior
Slide 16: Free cash flow
Free cash flow Six months 12 months Six months ended ended ended June 30, Dec 31, June 30, € million or % 2023 2023 2024 • H1 2024 improvement in free cash Net cash from operating activities 31 663 116 flow generation reflects higher cash Acquisition of property, plant and flow from operations and l
Slide 17: Leverage and financing
Leverage and financing Leverage reflects cash flow seasonality • Increase in gross debt reflects H1 cashflow seasonality € million Jun 30, 20231 Dec 31, 2023 Jun 30, 2024 • Net leverage improvement compared Gross debt 2,794 2,458 2,772 with same period 2023 Cash 212 281 286 • Initial phase of refina
Slide 18: Update on bag-in-box
SIG Update on regional bag-in-box overview Samuel Sigrist, CEO JULY 30, 2024 | HALF YEAR RESULTS 2024 18
Slide 19: SIG's portfolio enhanced by geographic and category expansion
SIG’s portfolio enhanced by geographic and category expansion Years 2018 2019 2020 2021 2022 2023 Acquisition milestones Scholle Visy Obeikan JV Evergreen Asia IPN SIG’s acquisitions along strategic growth vectors Geographical expansion New categories New channels Scholle IPN Scholle IPN Visy (Austr
Slide 20: Bag-in-box and spouted pouch enhance SIG's position as a leader in sustainable packaging
Bag-in-box and spouted pouch enhance SIG’s position as a leader in sustainable packaging Scholle IPN (bag-in-box & spouted pouch) Similarities Strong business model Foundation of system offering top-10 average customer existing w/ packaging, fitments, relationships 30+ years equipment, and service B
Slide 21: Transition in bag-in-box and spouted pouch
Transition in bag-in-box and spouted pouch Innovation and geographical expansion key to achieve higher levels of sustained growth *Top-line performance and geographical expansion indicative only. Prior to acquisition H2 ‘22 – H1 ‘23 H2 ‘23 – H1 ‘24 2025 - 2026 2027+ First year o f ownership Transfor
Slide 22: Guidance
Guidance Anne Erkens, CFO
Slide 23: 2024 financial guidance updated
2024 financial guidance updated Reflects current softness in US foodservice and capacity constraints in bag-in-box North America Previous guidance Updated guidance 4–6% Around 4% Revenue growth At low end of the +/- 50 bps (constant currency range and constant resin) Adjusted EBITDA 25-26% 24-25% Wi
Slide 24: Mid-term financial guidance
Mid-term financial guidance Confirmed 4-6% Revenue growth Upper half of range • Best-in-class margins (constant currency and constant resin) Strong cash generation 27% • Adjusted EBITDA margin Above • Attractive pay-out policy with progressive 7-9% Net CAPEX dividend growth (% revenue) Dividend payo
Slide 25: Thank you!
Thank you! www.sig.biz