Viscofan, S.a. · BME:VIS
Viscofan — FY2022 Earnings Presentation
38 slides from Viscofan's earnings presentation, February 2023
Slide 1: Results and outlook
Results and Viscpfan i ment outlook ‘ | -
Slide 2: Disclaimer
Disclaimer This document may include statements about This circumstance must be taken into account mainly intentions, expectations or forecasts of the for all persons or entities that may have to take Company additional to the mandatory financial decision, develop or spread opinions relative to valu
Slide 3: Index
Index 1_ 2_ 3_ 2022 2022 Beyond25 assessment financial update results 33
Slide 4: Index
Index 1_ 2022 assessment 2_ 3_ 2022 Beyond25 financial update results 44
Slide 5: Beyond25
Beyond25 An ambitious and transformative strategic plan New proposal >10% Reshaping food and wellbeing. For many, for long. Revenue acceleration CAGR 2021-2025e €425 Mn Capex 2022-2025e New organization Strategic pillars Service, technology, cost ,and sustainability 2022 assessment 2022FY results Be
Slide 6: The most adverse environment in decades
The most adverse environment in decades Not foreseen at the beginning of the year 2022 EU sanctions to Russia War in Ukraine ! Transport strike in Spain Energy crisis in Europe Supply chain disruptions Energy cost inflation Raw materials scarcity CO2 CO2 emissions allowance inflation Interest rates
Slide 7: We have strengthened our business model
We have strengthened our business model With an intense investment, commercial and operational activity Commercial discipline ! Collagen casings capacity increase in 5 Service assurance production plants CO2 Sustainability Action Plan New technology in the US % Green hydrogen trials in Cáseda H2 Con
Slide 8: Achieving the best results in our history
Achieving the best results in our history Reported numbers 2022FY Million euros ! 1,201.0 +24% +8%/+10% Revenue vs. 2021 guidance CO2 CO2 267.2 +8% +4%/+6% EBITDA vs. 2021 guidance % 139.4 +5% +5%/+8% Net profit vs. 2021 guidance H2 2022 assessment 2022FY results Beyond25 update 8
Slide 9: Increasing shareholder remuneration
Increasing shareholder remuneration Ordinary remuneration per share In euros +95.0% +6.0% 1.95 1.84 1.70 1.55 1.60 1.62 1.45 • 1.40 € per share paid on 1.35 22 December 2022 1.12 1.18 • 0.54 € per share to be 1.10 1.00 paid on 8 June 2023 • 0.01 € per share of AGM attendance premium 2011 2012 2013 2
Slide 10: Index
Index 2_ 2022 results 1_ 3_ 2022 Beyond25 assessment Update 10 10
Slide 11: Double-digit growth in revenue
Double-digit growth in revenue 2022FY revenue € million +74.8 +48.5 1,201.0 +108.5 969.2 +23.9% +11.2 p.p. +5.0 p.p. +7.7 p.p. Like-for-like 1 Like-for-like 1 Forex TB and NB energy 2021 2022 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchang
Slide 12: Positive contribution from all business
Positive contribution from all business 2022FY revenue rose by 23.9% year-on-year 2022FY revenue Breakdown by business division 963.1 New 808.1 Traditional 144.5 Business. TB Business. NB 117.1 +19.2% +23.4% vs. 2021 2021 2022 Group 2021 2022 vs. 2021 80% €1,201.0 million 12% 8% 93.5 44.1 +111.9% En
Slide 13: Growth in all geographical areas
Growth in all geographical areas Strong global growth 2022FY revenue 507.4 Breakdown by geographical area1 369.8 407.8 294.6 NAM EMEA + 12.5% + 25.5% + 24.4% +22.0% Like-for-like2 vs. 2021 2021 2022 2021 2022 vs. 2021 Like-for-like2 31% 42% Group €1,201.0 million 13% 121.3 155.0 SAM 14% APAC 145.5 1
Slide 14: New quarterly all-time high in revenue
New quarterly all-time high in revenue Double-digit growth in Traditional Business, in New Business, and in energy Group revenue. Quarterly 2020 2021 2022 € million 327.7 305.2 305.3 262.9 257.8 245.6 237.5 240.3 222.1 228.4 224.9 224.9 +11.9% +22.9% +19.8% +21.7% + 15.1% +17.2% + 28.5% +31.0% + 24.
Slide 15: Sound growth in the fourth quarter
Sound growth in the fourth quarter Driven by volume, price, energy, and forex Quarterly revenue Growth contribution (p.p.) +28.5% 27.1% +24.3% +14.7p.p. +14.4p.p. +15.1% +8.4p.p. +8.3p.p.+10.1p.p.+7.1p.p. +7.0p.p. +5.5p.p. +5.8p.p. +5.6p.p. +5.1p.p. +3.0 p.p. Like-for-like 1 Like-for-like 1 Reported
Slide 16: Inflation impacts all cost lines
Inflation impacts all cost lines Higher volumes, selling price, and efficiencies are transferred to EBITDA P&L 2022FY Year-on-year change +38% increase in the +53% rise in energy price of raw materials costs +76% co-generation gas and +39% growth in CO2 emission allowances transport costs +37.5% +5%
Slide 17: Outperforming EBITDA growth target
Outperforming EBITDA growth target Despite a higher-than-expected cost inflation EBITDA 2022 € million +31.4 -10.9 267.2 246.7 +8.3% Like-for-like Forex -4.4 p.p. +12.7p.p. 2021 2022 2022 assessment 2022FY results Beyond25 update 17
Slide 18: Higher EBITDA growth pace in Q4
Higher EBITDA growth pace in Q4 Together with a progressive margin recovery Reported quarterly EBITDA Quarterly EBITDA margin € million In percentage 2021 2022 2021 2022 76.6 68.0 63.8 64.8 64.1 26.9% 61.1 25.2% 26.1% 57.6 57.8 23.7% 23.4% 22.0% 22.3% 21.2% +0.3% +1.5% +6.1% +25.2% vs. 1Q21 vs. 2Q21
Slide 19: Net profit growth
Net profit growth Sharp increase in negative exchange rate differences and flat tax rate FY EBIT to NET PROFIT € million € million 2022 2021 % y-o-y Main components of the financial result 2021 2022 EBIT 189.0 174.4 +8.4% +2.2 Financial result -5.2 +2.0 s.c. -0.8 -1.4 Tax -44.4 -43.4 +2.2% -5.0 Fina
Slide 20: Investments in transforming projects
Investments in transforming projects And increasing shareholder remuneration Net Bank Debt 1 evolution € million +12.2 -5.7 +101.3 +84.5 Treasury Forex shares and others +1.8 -267.2 +106.1 Shareholders´ Net bank Net bank remuneration2 debt 1 debt 1 Dec’21 Dec’22 +125.6 • Higher quarterly revenue gro
Slide 21: Intense transformative activity
Intense transformative activity Accelerating investment projects given the expected growth Capex € million Spain (2Q22) Collagen Serbia (2Q22) casings capacity China (3Q22) increase Germany (3Q22) 40% USA (1Q23e) 30% 2021 2022 Converting capacity China (4Q22) USA (1Q23e) €92.0 €125.6 increase millio
Slide 22: Index
Index 3_ Beyond25 update 1_ 2_ 2022 2022 assessment results 22 22
Slide 23: A market with solid growth fundamentals
A market with solid growth fundamentals Viscofan reinforcing its leadership Growth in the customized casings market and Viscofan In volume Viscofan Market 7% 6% 5% 4% Historical 3% market growth range 2% 1% 0% 2017 2018 2019 2020 2021 2022 2022 assessment 2022FY results Beyond25 update 23
Slide 24: A market with solid growth fundamentals
A market with solid growth fundamentals Viscofan reinforcing its leadership Revenue in € of the main market players*. Casings Base 100 year 2015 159 133 126 130 Top 7 players 116 114 106 107 105 108 100 99 101 99 Top 6 ex Viscofan 96 113 103 95 98 98 98 95 2015 2016 2017 2018 2019 2020 2021 2022 * C
Slide 25: Market share
Market share 54% Casings 41% 46% Market by technology Animal gut €5,000 Player 2 million Player 2 Player 3 Player 4 Player 5 Player 6 2022 assessment 2022FY results Beyond25 update 25
Slide 26: Beyond25
Beyond25 Transformative projects Traditional Business: APAC Traditional Business: EMEA Beyond 25 Energy Traditional Business: North America and South America New Business 2022 assessment 2022FY results Beyond25 update 26
Slide 27: Transformative projects: Traditional Business Asia Pacific
Transformative projects Traditional Business: Asia Pacific New converting plant in Thailand Closer to Southeast Asia New comercial office in Philippines Improve the service in a country with a population of more than 115 million APAC China Commercial promotion to replace animal gut and market recove
Slide 28: Transformative projects: Traditional Business EMEA
Transformative projects Traditional Business: EMEA Opening of a commercial office in Italy Closer to a high value-added market EMEA New converting lines in the Czech Republic Gain productive flexibility Consolidation of the new capacity of collagen casings Capacity to help our customers in their que
Slide 29: Transformative projects: Traditional Business NAM and SAM
Transformative projects Traditional Business: NAM and SAM Technology Transfer Danville • Installation and commissioning of the second productive module • Learning curve Converting capacity consolidation in Montgomery Installation and commissioning of the investment NAM and SAM Capacity expansion in
Slide 30: Transformative projects: New Business
Transformative projects New Business Collagen hydrolyzates Responding to the expected growth of the market thanks to the new productive capacity, x5 Plastic casings capacity increase Responding to the expected growth of the market Czech Republic and Mexico NB Drive to industrialize New Business in C
Slide 31: Transformative projects: Energy
Transformative projects Energy Green H2 Promotion and projects to support decarbonization Cost and supply assurance Purchase agreements at a fixed price Additional energy cost in 2023 estimated at 95 million € Energy Long term PPA from renewable source Energy sources diversification Alliance Project
Slide 32: Lower investment requirements
Lower investment requirements Operating cash flow expansion Operating cash flow € million 282/292 267 247 234 209 201 141 >207 155 177 137 139 126 92 72 75 62 57 2018 2019 2020 2021 2022 2023e Operating cash flow(Mn €) = EBITDA - CAPEX 2022 assessment 2022FY results Beyond25 update 32
Slide 33: Guidance 2023
Guidance 2023 US$/€: 1.07 € million Figure % y-o-y Revenue 1,315-1,345 +9% / +12% EBITDA 282-292 6% / +9% Net profit 153-160 +10% / +15% Capex ≈75 2022 assessment 2022FY results Beyond25 update 33
Slide 34: Beyond25 ambition
Beyond25 ambition Raising our vision in absolute terms € million Current vision Prior vision Revenue 2025e 1,450 1,300 EBITDA 2025e 362 340 EBITDA margin 2025e 25% 26% Capex 2022-2025e 425 425 2022 assessment 2022FY results Beyond25 update 34
Slide 35: To wrap-up
To wrap-up 1 2 3 4 Viscofan has achieved High investment activity Viscofan expects to Our Beyond25 targets its financial targets in in the first year of the growth in the main include higher growth 2022FY despite a more Beyond25 strategic plan financial figures in pace in revenue and adverse context
Slide 36: Appendix. 4Q22 P&L
Appendix. 4Q22 P&L Like-for-like1 € million 4Q22 4Q21 % y-o-y % y-o-y Revenue 327.7 257.8 +27.1% +20.0% EBITDA 76.6 61.1 +25.2% +11.5% EBITDA margin 23.4% 23.7% -0.3p.p. -1.7p.p. Operating profit 56.2 43.1 +30.3% Profit before taxes 45.5 45.1 +0.7% Taxes -11.1 -11.9 -6.4% Net profit 34.3 33.2 +3.3%
Slide 37: Appendix. 2022FY P&L
Appendix. 2022FY P&L Like-for-like1 € million 2022 2021 % y-o-y % y-o-y Revenue 1,201.0 969.2 +23.9% +16.2% EBITDA 267.2 246.7 +8.3% -4.4% EBITDA margin 22.2% 25.4% -3.2p.p. -4.5p.p. Operating profit 189.0 174.4 +8.4% Profit before taxes 183.8 176.4 +4.2% Taxes -44.4 -43.4 +2.2% Net profit 139.4 133
Slide 38: Appendix. Alternative Performance Measures
Appendix. Alternative Performance Measures The Alternative Performance Measures included in this report are as follows: • The EBITDA, or operating profit before depreciation and • Net bank debt: This is calculated as non-current borrowings plus current amortization, is calculated excluding depreciat