Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — FY2021 Earnings Presentation
25 slides from Italian Wine Brands's earnings presentation, Mar 23, 2022
Slide 1: FY Results 2021 Investors Presentation
FY Results 2021 Investors Presentation 23 March 2022
Slide 2: Italian Wine Brands Today
Italian Wine Brands Today Largest Italian wine company with sales in over 70 countries. Award winning portfolio of proprietary brands Unique multichannel commercial distribution across the world Wholesale, Horeca and DTC State of the art operational facilities in Italy #2 wineries, #3 bottling plant
Slide 3: Our journey since IPO - 2015
Our journey since IPO - 2015 We changed the game rules in the Italian wine industry First ever Italian wine company to be listed with the aim of creating the 2015 italian champion Continous developement of 2017 brands and distribution. Reshaping of DTC. Acquisition of the digital platfom «Svinando.c
Slide 4: 2021 FY Results at a glance
2021 FY Results at a glance VOLUMES MARGINS RESULTS 408.9 €M 41.8 €M 20.5 €M NET SALES* EBITDA Adjusted*,** Adjusted NET +100.1% YOY +63.4% YOY INCOME*,** +30.8% YOY NET FINANCIAL RESULTS DIVIDEND INDEBTEDNESS 108.0 €M 0,1 € 18.3 €M per share NET INCOME* NET FINANCIAL +28.9% YOY INDEBTEDNESS 2.6X EB
Slide 5: What's next? Short and mid term strategies
What’s next? Short and mid term strategies Cope with Inflation and lack of SHORT supplies Through sharp and diverified strategy across differents products, channels, customers Organic Growth Through premiutization of existing brands, creation of new brands, expansion in new channels and new markets
Slide 6: Short term strategy – Cope with Inflation and lack of supplies (1/2)
Short term strategy – Cope with Inflation and lack of supplies (1/2) Cost increases for the period November 2021 – March 2022 of: • Bulk Wine • Glass • Caps, Capsules, Labels, packaging ….. have had a negative effect on P/L of November and December 2021 (0,5% margin on sales) but have been entirely
Slide 7: Short term strategy – Cope with Inflation and lack of supplies (2/2)
Short term strategy – Cope with Inflation and lack of supplies (2/2) Costs increased strongly following the outbreak of the war in Ukraine and, starting from April 2022, will have the following negative effects: • Glass: approximately +3 cents on the cost of a single bottle; • Electricity and Gas: +
Slide 8: Long term strategy – Organic Growth and selective M&A
Long term strategy – Organic Growth and selective M&A Italian Wine in the world / IWB EXPORTS MARKETS VALUE ~EUR 7.1 BLN Total €M IWB €M MS % USA 1,720.0 18.5 1.1% DOMESTIC MARKET VALUE DE 1,134.0 61.3 5.4% ~ EUR 6.0 BLN IWB revenues on domestic TOTAL MARKET VALUE ~EUR 13.1 BLN UK 743.0 92.4 13.2% m
Slide 9: Long term strategy – Organic Growth and selective M&A
Long term strategy – Organic Growhth and selective M&A Italian Wine in the world / IWB Italian wines growth +32.8% +0.2% +18.6% +12.4% +7,5% 2016/2021 From Eur 1.7m From Eur 7.5m From Eur 25.7m From Eur 33.7m From Eur 38.0m IWB To Eur 18.5 m To Eur 92.4 m To Eur 50.8 m To Eur 61.3 m To Eur 104.3 m G
Slide 10: Meet: Grande Alberone
Long term strategy – Wholesale / Horeca Consumer focused brand portfolio MEET: GRANDE ALBERONE Our Best Grand Tour. Launched in 2012 as a test of 10k bottles. >5m bottles sold in 2021
Slide 11: Meet: Elettra
Long term strategy – Wholesale / Horeca Consumer focused brand portfolio MEET: ELETTRA Shining Star! Launched in 2021 as a test of 10k bottles. >200k expected bottles in 2022
Slide 12: Meet: Raphael Dal Bo
Long term strategy – Wholesale / Horeca Consumer focused brand portfolio MEET: RAPHAEL DAL BO Our Sparkling Expert Launched in 2010. 2m expected bottles in 2022
Slide 13: Meet: Voga
Long term strategy – Wholesale / Horeca Consumer focused brand portfolio MEET: VOGA Sparkling Must! Launched in 2005 in USA and UK. >3m expected bottles in 2022
Slide 14: The Big Picture: IWB that we pursue in the mid-term
THE BIG PICTURE IWB that we pursue in the mid-term PREMIUMIZATION • Growth on high value added bottles Value vs Volume NO CAPEX • Optimization <<<<<<of production capacity INCREASE • Synergies CASH • M&A • Dividends <<<<<<<< GENERATION • Deleverage EBITDA MARGIN 12% NET LEVERAGE <2.0X
Slide 15: Financial Highlights
W ITALIAN WINE BRANDS Creatox dé Eccellenze Financial Highlights
Slide 16: Financial Highlights: Net Sales - Overall
Financial Highlights Net Sales - Overall *2021PF: combined net sales IWB + Enoitalia results as at 12.31.21 Italian Wine Brands Spa | www.italianwinebrands.it | info@italianwinebrands.it
Slide 17: Financial Highlights: Net Sales – Wholesale
2. Financial Highlights Net Sales – Wholesale Eur Millions 2016 2017 2018 2019 2020 2021 2021PF ∆ % 20/21 Cagr 18/21 Wholesale - Italy 0,0 0,0 2,5 3,6 5,5 24,7 42,6 346,33% 115,74% Wholesale - International 69,0 69,0 74,7 84,0 114,1 187,4 256,8 64,26% 35,88% UK 5,1 5,1 9,7 13,2 14,7 44,6 72,5 203,51
Slide 18: Financial Highlights: Net Sales – Distance Selling
2. Financial Highlights Net Sales – Distance Selling Eur Millions 2016 2017 2018 2019 2020 2021 2021PF ∆ % 20/21 Cagr 18/21 Distance selling Italy 37,3 37,3 31,4 29,7 34,0 32,8 32,8 (3,69%) 1,46% Direct Mailing 16,3 16,3 14,8 14,1 16,1 15,4 15,4 (4,14%) 1,36% Teleselling 17,8 17,8 12,7 11,3 9,8 10,0
Slide 19: Financial Highlights: Ebitda, Net Profit, Net Financial Position
Financial Highlights Ebitda, Net Profit, Net Financial Position Ebitda: almost 4x from Eur 11.0 m in 2016 to Eur 41.8 m in 2021 • Overall 2016/2021: increase over the 5 year period of raw material incidence on sales and decrease of OPEX due to change in revenues mix (+wholesale – distance selling),
Slide 20: Financial Highlights: Ebitda, Net Profit, Net Financial Position
Financial Highlights Ebitda, Net Profit, Net Financial Position Net Profit: nearly 6x from Eur 3.2 m in 2016 to Eur 18.3 m in 2021. Main costs below Ebitda Adjusted 2021: • Net interest of Eur 4.0m due to the bond issue and short term bilateral facilities; • Depreciation, Amortization and write- dow
Slide 21: Extended P&L 2016 - 2021
Historical Financial Highlights 2016-2021 Extended P&L 2016 - 2021 Restated Restated Restated Restated Restated Restated Restated Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2021PF Net Sales 145.937 149.736 149.863 157.494 204.311 313.227 408.934 Change in invento
Slide 22: Management Adj. 2021
Historical Financial Highlights 2016-2021 Management Adj. 2021 Reported Management adjustment Restated Management Adjustments Eur/000 31.12.2021PF 1 2 31.12.2021PF 1. Other income: Eur 22k related to Net Sales 408.934 408.934 legal expenses refund. Change in inventory 19.524 19.524 Services: Eur 725
Slide 23: Extended Balance Sheet 2016 - 2021
Historical Financial Highlights 2016-2021 Extended Balance Sheet 2016 - 2021 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 Intangibles & Goodwill net of tax reserves 75.890 76.656 78.385 79.424 94.288 208.620 Tangibles 15.526 14.232 14.736 14.539 15.104 50.124 Rights of u
Slide 24: Extended Cash flow 2016 - 2021
Historical Financial Highlights 2016-2021 Extended Cash flow 2016 - 2021 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021 31.12.2021PF Ebitda reported 14.158 13.422 16.304 23.604 31.009 38.809 +(-) changes in NWC 1.206 (2.186) (1.686) 440 (8.406) (13.487) + (-) Funds (622) (
Slide 25: Q&A Session
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