Arcus ASA — Q4 2020 Earnings Presentation
20 slides from Arcus ASA's earnings presentation, Feb 17, 2021
Slide 1: Fourth quarter results 2020
Fourth quarter results 2020 Sigmund Toth, Interim Group CEO Kristoffer Loftesnes, Head of Business Controlling & Treasury 17 February 2021
Slide 2: Q4: Best quarter in Arcus' history
Q4: Best quarter in Arcus’ history Amounts in NOK million 2019 2020 Operating Revenues EBITDA (adj.) +16.9% RG +10.9% OG1 1,008 205.1 862 172.0 Q4 Q4 • Wine: Strong growth, especially in Norway • Spirits: Continued growth in monopoly markets • Logistics: Increased revenues, high costs 1Reported grow
Slide 3: Q4: Organic growth significantly impacted by Covid-19
Q4: Organic growth significantly impacted by Covid-19 Organic growth1 overall and by reporting segment Percent Q4 December YTD Arcus ASA 10.9% Arcus ASA 9.3% Wine 16.8% Wine 12.3% Spirits2 3.6% Spirits2 2.5% Logistics 7.7% Logistics 13.6% 1Reported growth adjusted for currency translation effects an
Slide 4: Q4 Wine: Strong growth and improved margins
Q4 Wine: Strong growth and improved margins Amounts in NOK million 2019 2020 Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) 16.8% OG1 563 106.6 18.9 449 12.9 58.1 Q4 Q4 Q4 • Norway: Sales growth in line with the extremely fast-growing market • Sweden: Sales slightly below market growth, l
Slide 5: Q4 Spirits: Continued growth in monopolies during high season
Q4 Spirits: Continued growth in monopolies during high season Amounts in NOK million 2019 2020 Operating revenues1 EBITDA (adj.) EBITDA (adj.) margin (%) 3.6% OG2 393 93.5 24.0 23.8 362 86.7 Q4 Q4 Q4 • Norway, Sweden, Finland: Significant revenue growth driven by Covid-19 restrictions and high seaso
Slide 6: Q4 Logistics: Extraordinarily high volumes, increased personnel costs
Q4 Logistics: Extraordinarily high volumes, increased personnel costs Amounts in NOK million 2019 2020 Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) +7.7% OG1 10.6 10.7 106 99 -7.8 -7.4 Q4 Q4 Q4 • Distributed volume in Q4 was 19.1 million liters. an increase of 4.1 million liters from Q4
Slide 7: Financial performance
Financial performance Kristoffer Loftesnes, Head of Business Controlling & Treasury 7
Slide 8: Organic growth, positive FX-effect and structural changes increased operating revenues
Organic growth, positive FX-effect and structural changes all contributed to increased operating revenues Q4-20 Operating revenue growth Percent; NOK million +16.9% 1,008 +0.5% +4.9% 10.9% 862 Operating revenues Organic growth1 FX Structural Changes Operating revenues Q4-19 Q4-20 1Reported growth ad
Slide 9: Q4 Group P&L: Revenues and Adjusted EBITDA well above last year
Q4 Group P&L: Revenues and Adjusted EBITDA well above last year Amounts in NOK million Profit and Loss This quarter Year-to-date 2020 2019 2020 2019 Operating revenues 1 007.8 861.8 3 203.7 2 762.8 EBITDA (adj.) 205.1 172.0 543.5 397.1 Depreciation. Amortization and Write-downs -29.3 -30.1 -123.7 -1
Slide 10: Stronger SEK and EUR vs NOK results in positive FX-effect
Stronger SEK and EUR vs NOK results in positive FX-effect on revenues, and net positive effect on EBITDA with SEK stronger vs EUR than last year Currency rate effects1 (Q4 2020 actuals vs. Q4 2019 actuals) Currency rate effects1 (2020 actuals vs. 2019 actuals) +6,7% Revenues (MNOK) EBITDA (MNOK) +9,
Slide 11: Cash flow below last year due to larger increase in net working capital
Cash flow below last year due to larger increase in net working capital and non-recurring costs, partly offset by tax refund in Sweden Q4-20 Cash Flow from Operations Amounts in NOK million Positive cash effect in Sweden when 2019 settlement was received in Dec20. Prepayments in 2019 were based on h
Slide 12: Gearing well below target at the end of Q4
Gearing well below target at the end of Q4 Net Interest Bearing Debt (NIBD) / R12M Adjusted EBITDA by quarter (Excluding IFRS16 effects) Target < 2.5x 2,2 2,2 1,3 1,0 0,7 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 12
Slide 13: Sigmund Toth, Interim Group CEO
Sigmund Toth Interim Group CEO 13
Slide 14: Anora: The merger work is on-track
Anora: The merger work is on-track • On 12 November, Arcus held extraordinary general meetings to vote on the merger with Altia. 99,99 per cent voted in favour of the merger. Altia’s shareholders have also voted in favour of a merger. • Arcus and Altia are still competitors, but a legally compliant
Slide 15: Covid-19: Arcus works hard to keep our employees safe
Covid-19: Arcus works hard to keep our employees safe • Throughout the fourth quarter and into 2021, Arcus has continued to take many proactive measures to reduce infection. • In the latter part of November, a total of 25 employees/temps were infected by Covid-19. • The infection had very small cons
Slide 16: Q4: Concluding remarks
Q4: Concluding remarks • Q2, Q3 and Q4 results have been the best in Arcus’ history, both in terms of revenue and EBITDA • Strong Covid-19 effects as most tax-free and border- trade sales moved to monopoly stores across Nordics • Continued high focus on measures to reduce Covid-19 infection 16
Slide 17: Condensed statement of income
Condensed statement of income MNOK Fourth quarter Full Year Note 2020 2019 2020 2019 Sales 2,9 995.5 843.2 3 156.4 2 710.4 Other revenue 2 12.3 18.6 47.3 52.4 Total operating revenue 2,9 1 007.8 861.8 3 203.7 2 762.8 Cost of goods -552.4 -483.0 -1 815.7 -1 601.1 Gross Profit 455.3 378.8 1 388.0 1 16
Slide 18: Condensed statement of financial position
Condensed statement of financial position MNOK Fourth quarter Note 31.12.2020 31.12.2019 Intangible assets 6 1 984.5 1 923.2 Tangible assets 5 1 391.9 1 431.2 Deferred tax asset 49.0 86.1 Financial assets 71.2 65.3 Total fixed assets 3 496.7 3 505.8 Inventories 559.7 486.6 Accounts receivables and o
Slide 19: Historic quarterly distribution of top-/bottom-line last five years
Historic quarterly distribution of top-/bottom-line last five years 2016-2020. average 44% Operating revenues Adj. EBITDA 31% 26% 25% 24% 20% 21% 9% Q1 Q2 Q3 Q4 Average 2016 – 2020 Arcus ASA. rounded numbers 19
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