Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — Q3 2019 Earnings Presentation
32 slides from Anora Group Oyj's earnings presentation, Nov 7, 2019
Slide 1: Q3 results presentation
7 NOVEMBER 2019 Q3 results presentation CEO PEKKA TENNILÄ CFO NIKLAS NYLANDER
Slide 2: Agenda
Agenda Leading Nordic alcoholic beverage brand company operating in the wines and spirits markets in the Nordic countries, Estonia and Latvia. We also have production in 1. HIGHLIGHTS Cognac, France. 2. MARKET 3. SEGMENTS 4. FINANCIALS 5. STRATEGY 6. Q&A 7.11.2019 2
Slide 3: Leading Nordic alcoholic beverage brand house
Leading Nordic alcoholic beverage brand house WE OPERATE ON THE STABLE AND PROFITABLE NORDIC MARKETS Exports to approx. 30 countries Head office Production Sales office Distillery Warehouse 7.11.2019 3
Slide 4: Solid net sales growth of spirits in core markets, profitability improved in Q3
Solid net sales growth of spirits in core markets, profitability improved in Q3 HIGHLIGHTS FROM Q1-Q3 19 Reported net sales Comparable EBITDA Comparable EBITDA margin 249.5 (246.4) 25.1 (24.1) 10.1% (9.8%) EUR million EUR million Net sales Comparable EBITDA Comparable EBITDA margin grew by 2.1% with
Slide 5: Market development
Market development APPROXIMATELY TWO THIRDS OF CONSUMER PRODUCT SALES COME FROM STATE RETAIL MONOPOLIES Combined spirits and wine sales volume development in the state retail monopolies Change compared to Q1-Q3 Q1-Q3 • Nordic spirits and wine market in total (%) Q3 19 Q3 18 2018 previous year, % 19
Slide 6: Net sales highlights
Net sales highlights JANUARY–SEPTEMBER 2019 Q1-Q3 19 Q1 –Q3 19 • Reported net sales grew by 1.3% to EUR 249.5 (246.4) million • Net sales of spirits and wine at last year’s level • Continued headwind from weak SEK, in constant currencies net • Partner portfolio changes in other beverages drive total
Slide 7: Finland & Exports
Finland & Exports JANUARY–SEPTEMBER 2019 The Finland & Exports segment comprises the import, sale and marketing of wine and spirits, and other beverages in Finland and the Baltics, as well as exports and travel retail. Highlights Key financials Product launches & events 15 • Net sales were 90.9 (94.
Slide 8: Scandinavia
Scandinavia JANUARY–SEPTEMBER 2019 The Scandinavia segment comprises the import, sale and marketing of wine and spirits, and other beverages in Sweden, Norway and Denmark. Highlights Key financials, MEUR Product launches & events • Reported net sales were EUR 76.3 (74.9) 80 5 million, up by 1.8% 70
Slide 9: Altia Industrial
Altia Industrial JANUARY–SEPTEMBER 2019 The Altia Industrial segment comprises Koskenkorva plant operations, starch, feed component and technical ethanol businesses, as well as contract manufacturing services at Rajamäki. It also includes supply chain operations, i.e. production operations in differ
Slide 10: Blossa
Blossa MINDRE SOCKER | Lika god smak! ALTIA 7.11.2019
Slide 11: Financials
Financials CFO NIKLAS NYLANDER
Slide 12: Initiatives taking effect – profitability improving slightly in Q3
Initiatives taking effect – profitability improving slightly in Q3 IMPORTANT LAST QUARTER AHEAD Q3 19 Q1-Q3 19 • Comparable EBITDA was EUR 11.4 (10.3) million, excluding IFRS 16 • Comparable EBITDA was EUR 25.1 (24.1) million, excluding IFRS 16 impact impact EUR 10.5 million EUR 22.2 million • Compa
Slide 13: Comparable EBITDA by segment
Comparable EBITDA by segment IMPROVED PROFITABILITY IN CONSUMER SEGMENTS; NEGATIVE IMPACT FRO M FX AND BARLEY Q3 19 Q1-Q3 19 EUR million Q3 19 Q3 18 Q1-Q3 19 Q1-Q3 18 2018 excl. IFRS 16 excl. IFRS 16 Finland & Exports 5.0 5.0 4.9 13.3 13.1 13.0 19.2 % of net sales 16.1 16.0 15.6 14.6 14.4 13.8 14.3
Slide 14: Barley price development and sourcing
Altia’s use of Barley sourcing barley in Q1-Q3 19 reached 162 (165) million kilos Barley price development and Altia’s monthly volumes 2007-2019 (Jan-n) EUR/tn tn 250 30 000 25 000 200 20 000 150 15 000 100 10 000 50 5 000 2007 2009 2011 2013 2015 2017 2019 0 0 July July July July July July July Jul
Slide 15: Financial position and balance sheet KPI's
Financial position and balance sheet KPI’s AS AT 30 SEPTEMBER Net cash flow from operating activities EUR -0.8 (-31.1) million Receivables sold EUR 44.8 (48.3) million Net debt EUR 81.4 /70.5 excl. IFRS 16 (82.9) million Gearing 57.9% / 50.2% excl. IFRS 16 (58.4%) Equity ratio 37.4% / 38.6% excl. IF
Slide 16: Financial position and balance sheet KPI's
Financial position and balance sheet KPI’s Gearing, % 56,9 % 56,7 % 58,4 % 58,1 % 59,1 % 57,9 % Net debt 51,6% 50,6% excl. 50,2% excl. Net debt, EUR million IFRS 16 excl. 86,8 IFRS 16 IFRS 16 Net debt / Comparable 82,9 81,3 81,4 34,9 % 77,4 31,6 % EBITDA (rolling 12m) 75,9 9,8 11,6 10,9 19,2 % 77,0
Slide 17: Strategy
Strategy CEO PEKKA TENNILÄ
Slide 18: Our financial targets aim towards stable shareholder returns
Our financial targets aim towards stable shareholder returns Net sales growth +2% • Altia’s target is to achieve an annual net sales growth of 2 per cent over time (CAGR) CAGR Comparable EBITDA margin 15 % • Comparable EBITDA margin target to reach 15 per cent in the long-term Net debt / comparable
Slide 19: The core of our strategy is to deliver profitable growth
The core of our strategy is to deliver profitable growth Commercial battles 1 • Expand into new geographical markets Growth and Grow Nordic Core Brands • Innovate into new occasions and profitability consumer segments Active brand portfolio through the five • Grow wine segment with innovations and m
Slide 20: Strengthening the strategy execution
Strengthening the strategy execution FURTHER INITIATIVES IDENTIFIED TO REACH LONG-TERM NET SALES AND PROFITABILITY TARGETS Based on our Initiatives within: strategy to create • Revenue management profitable growth, Growth • Expansion in growing categories in Sweden and Norway we have identified • Ex
Slide 21: Guidance 2019
Guidance 2019 REMAINS UNCHANGED • The comparable EBITDA is expected to improve from the 2018 level. – The positive trend of Altia’s Nordic core brand portfolio is expected to continue. – Market development in Finland is expected to flatten out in comparison to 2018 and the markets in Sweden and Norw
Slide 22: Next events
Q&A AND SUMMARY Next events 13 Feb – Financial Statements Bulletin 25 Mar – Annual General Meeting Profitability improved in third quarter Solid development Guidance remains of spirits net sales unchanged 7.11.2019 22
Slide 23: Thank you
Thank you www.altiagroup.com IR: tua.stenius-ornhjelm@altiacorporation.com
Slide 24: Appendices
Appendices 7.11.2019 24
Slide 25: Key ratios
Key ratios EUR million Q3 19 Q3 18 Q1-Q3 19 Q1-Q3 18 2018 Net sales, EUR million 84.5 85.7 249.5 246.4 357.3 Comparable EBITDA, EUR million 11.4 10.3 25.1 24.1 40.0 % of net sales 13.5 12.0 10.1 9.8 11.2 EBITDA, EUR million 9.8 10.3 23.3 19.6 34.0 Comparable operating result, EUR million 6.9 6.6 11.
Slide 26: Consolidated income statement
Only H1 and FY published Consolidated income statement EUR million Q2 19 Q2 18 H1 19 H1 18 2018 NET SALES 91.2 87.1 165.0 160.6 357.3 Other operating income 2.0 2.0 3.9 3.5 7.4 Materials and services -54.4 -49.1 -99.4 -91.0 -206.8 Employee benefit expenses -11.6 -12.9 -23.1 -27.1 -49.9 Other operati
Slide 27: Consolidated balance sheet
Only H1 and FY published Consolidated balance sheet EUR million EQUITY AND LIABILITIES H1 19 H1 18 2018 EUR million H1 19 H1 18 2018 Equity attributable to owners of the parent ASSETS Share capital 60.5 60.5 60.5 Invested unrestricted equity fund 1.2 1.2 1.2 Non-current assets Fair value reserve 0.6
Slide 28: Cash flow from operations
Only H1 and FY published Cash flow from operations EUR million Q2 19 Q2 18 H1 19 H1 18 2018 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 4.5 4.2 4.7 2.0 18.6 Adjustments Depreciation, amortisation and impairment 4.5 3.5 9.0 7.0 14.4 Share of profit in associates and income from investment
Slide 29: Quarterly net sales and comparable EBITDA by segment
Quarterly net sales and comparable EBITDA by segment Net sales by segment EUR million Q3 19 Q2 19 Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Q4 16 Q3 16 Q2 16 Q1 16 Finland & 31.2 34.7 25.0 39.5 31.8 35.4 27.1 40.7 31.4 35.7 26.0 41.1 31.6 33.9 27.3 Exports Scandinavia 25.6 29.0 21.7 42.8
Slide 30: Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC)
Reconciliation of alternative performance measures (APM) and items affecting comparability (IAC) EUR million Q3 19 Q3 18 Q1-Q3 19 Q1-Q3 18 2018 Items affecting comparability Net gains or losses from business and assets disposals -0.0 - -0.2 0.4 0.4 Cost for closure of business operations and restruc
Slide 31: Shareholder structure
Shareholder structure AS AT 31 OCTOBER 2019 Number of Shareholders % of shares shares 1 Valtion Kehitysyhtiö Vake Oy 13 097 481 36.2 Non-financial corporations 2 Varma Mutual Pension Insurance Company 1 550 000 4.3 5% 3 Ilmarinen Mutual Pension Insurance Company 973 300 2.7 Rest of the world Househo
Slide 32: Grocery trade offering
Grocery trade offering 7.11.2019 32