Viscofan, S.a. · BME:VIS
Viscofan — 1H 2013 Earnings Presentation
20 slides from Viscofan's earnings presentation, Jul 31, 2013
Slide 1: January-June 2013 Results
January-June 2013 Results 31st July 2013 Results January– June 2013
Slide 2: Disclaimer
Disclaimer This document may contain additional non- non-compulsory forward- forward-looking statements on intentions or expectations of the Company as of the date of its publication whose only purpose is to provide further information on perspectives on future performance. Such forward- forward-loo
Slide 3: Consolidated results 1H13
Consolidated results 1H13 Robust operational results backed by strong revenue: % y-o-y MM € 2Q13 % y-o-y 1H13 % y -o - y ex- ex-forex1 Revenue 202.9 +5.1% 387.5 +4.5% +6.3% EBITDA 49.5 +2.6% 91.8 +0.8% +3.8% EBITDA margin 24.4% -0.6 p.p. p.p. 23.7% p.p. -0.9 p.p. -0.6 p.p. p.p. EBIT 37.4 +1.1% 67.8
Slide 4: Solid balance sheet and strong operations to finance expansion plan
Consolidated results 1H13 Solid balance sheet and strong operations to finance expansion plan (both capex and working capital) and higher dividends. Net bank debt (MM €) +9.6 93.7 +32.3 64.7 -91.8 +17.2 Financial +51.4 Financial leverage: leverage: 13.0% 18.2% +10.3 Net bank EBITDA Taxes paid Capex
Slide 5: Top line growth acceleration pushes EBITDA growth despite currency weakness
Consolidated results 1H13 Top line growth acceleration push EBITDA growth despite the weakness in some currencies +6.7% +5.1% +5.9% +5.5% +3.8% +2.6% +2.0% -1.1% 1Q13 2Q13 1Q13 2Q13 1Q13 2Q13 1Q13 2Q13 vs. 1Q12 vs. 2Q12 vs. 1Q12 vs. 2Q12 vs. 1Q12 vs. 2Q12 vs. 1Q12 vs. 2Q12 Revenue Revenue ex-forex E
Slide 6: Top line and EBITDA growth against adverse raw material, energy and currency backdrop
Consolidated results 1H13 Top line and EBITDA growth against an adverse backdrop on raw material, energy and currency… and start-up cost in the new Chinese plant. % y- y-o-y +6.3% 7.2% +7% (ex-forex) +5.6% +3.8% +4.3% (ex-forex) +4.5% +0.8% -1.2% Revenue Cost of Personnel Other operating EBITDA D&A
Slide 7: Long term fiscal optimization due to a strong balance sheet
Consolidated results 1H13 Long term fiscal optimization due to a strong balance sheet. 67.8 -0.6 +4.5% -16.2 vs. 1H12 +2.8 53.8 EBIT Net financial - results Taxes Balance sheet Net profit revaluation Net financial results (MM €) 1H13 Effective tax rate: 1H12 0.8 0.30.2 22.4% 20.0% -0.6 -1.0 -1.5 -1.
Slide 8: Casing business
Casing business Results January– June 2013 8
Slide 9: New record revenue boosted by higher volumes in all casing families
CASINGS New record figure on revenue boosted by higher volumes in all casing families… especially on collagen Revenue (MM €) 175.5 160.0 166.6 165.3 163.4 154.0 +3.9% +5.4% 1Q 2Q 3Q 4Q Casings sales Co-generation +5.3% vs. 2Q12 +6.8% vs. 2Q12 Results January– June 2013 9
Slide 10: Organic growth offsetting Brazilian Real and US$ weakness
CASINGS … with a sound organic growth offsetting Brazilian Real and US$ weakness… +6.7 p.p. +5.9 p.p. 1Q 2Q +0.5 p.p. +0.5 p.p. Revenue (MM €) +4.7% -2.4 p.p. - 1.9 p.p. ex-forex vs. 1H12 casings Co-generation Forex +6.3 p.p. +0.5p.p. +0.5p.p. -2.1 p.p. 335.5 320.5 ex-forex Co-generation Forex1 casi
Slide 11: Top line growth in all reporting areas, strength in emerging areas
CASINGS … delivering top line growth in all reporting areas… with a significant strength in the emerging areas1. Revenue breakdown by geographic area (MM €) 31.5% 52.4% North America Europe & Asia 16.2% 166.6 175.7 Latam 1H13 104.8 105.5 1H12 49.1 54.2 +5.5% +0.7% +10.4% 1 Revenue per origin of sale
Slide 12: Growth in a cost environment that erodes margin evolution
CASINGS ... Growth in a cost environment (start-up in China, split prices, new co- generation taxes) that erode margin evolution… 2012 2013 EBITDA margin by Quarter Cumulative EBITDA margin 28.1% 27.7% 27.3% 26.9% 26.9% 26.6% 26.3% 25.7% 1Q 2Q 3Q 4Q 1H12 1H13 Results January– June 2013 12
Slide 13: Revenue strength offsets cost pressure, EBITDA back on growth path
CASINGS … but revenue strength offset cost pressure and places the EBITDA on the growth path again... EBITDA (MM €) 46.1 47.3 46.4 2012 2013 41.4 41.1 43.4 1Q 3Q 4Q 2Q +5.5% y-o-y change +2.5% +2.5% ex - forex -0.8% 1Q13 vs. 1Q12 2Q13 vs. 2Q12 Results January– June 2013 13
Slide 14: Positive y-o-y EBITDA growth for the cumulative period
CASINGS … providing a positive y-o-y growth for the cumulative period. EBITDA (MM €) EBITDA +1.0% against a backdrop: 87.5 88.4 Cost of consumption1 +7.8% (double digit price increase on collagen hides) Personnel costs +5.6% (deployment of personnel and hires) Energy supply costs: +2.1% 1H12 (€2.4MM
Slide 15: Vegetable food: IAN Group increases sales backed by Carretilla brand
VEGETABLE FOOD IAN Group increase sales again backed by Carretilla brand strength despite the adverse environment of economic crisis and lower household consumption in Spain. Revenue (MM €): EBITDA (MM €): Net profit (MM €): +3.2% -2.6% 57.9% 50.4 52 3.6 3.5 2.3 1.5 1H12 1H13 1H12 1H13 1H12 1H13 EBI
Slide 16: Challenges 2H13
Challenges 2H13 …Fulfil investment plan. …impact (estimated) of the new regulatory reform on electricity in Spain. Results January– June 2013 16
Slide 17: Fulfil investment plan (capex 50MM € in 2H13)
Challenges 2H13 …Fulfil investment plan (capex 50MM € in 2H13): • Installing new equipment in China in 2H13 • Assembling equipment in Uruguay and start trial production (4Q13) (deployment personnel and hire new people) • Maintenance stoppages in Europe during 3Q13 to install new production improveme
Slide 18: Impact of new regulatory reform on electricity in Spain
Challenges 2H13 …impact (estimated) of the new regulatory reform on electricity in Spain. Co- Co -generation: a high efficiency model to optimize energy Co- Co -generation plant in Spain: Sale to the grid Electricity (€22.2MM in 1H13) Steam RDL 09/2013 Spanish Government wants to reduce the deficit
Slide 19: Updated Guidance
Challenges 2S13 Updating targets according with he last available information: Operating results are in line with our goals with the exception of RDL 9/2013 Impact RDL US$ & BRL Operational Updated Guidance 9/20131 forex improvements2 Guidance Revenue 800 - 805 -3 -5 +3 795- 795-800 EBITDA 198 - 200
Slide 20: To sum up
To sum up Growth acceleration in an environment where the market keeps its growth trend, particularly in the emerging areas. Margin pressure due to raw material prices, cogeneration taxes and currency weakness (BRL & USA), against this backdrop Viscofan Group achieve new historic highs in quarterly