Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — FY2020 Earnings Presentation
24 slides from Italian Wine Brands's earnings presentation, Mar 22, 2021
Slide 1: FY Results 2020
FY Results 2020 22 March 2021 1
Slide 2: Agenda
Agenda Alessandro Mutinelli 1. 2020 at a glance Chairman and Group CEO 2. Management strategic view Agenda Pier Paolo Quaranta 3. Financial highlights Managing Director 4. Q&A 2
Slide 3: 2020 at a glance
2020 at a glance We never stop to grow and 2020 has been a record year for IWB. We proved the validity of our business model and we confirm the path of organic growth also for the coming years. We are also ready to expand our business through M&A with companies that desire to join us and become toge
Slide 4: 2020 at a glance
2020 at a glance Italian Wine Brands is the third largest non- Eur 204.3 m 80.6% cooperative wine groups in Italy, the first to be listed NET SALES 2020 (+29,7% YOY) SALES ON INTERNATIONAL MARKETS on the Milan stock market. Eur 25.6 m Eur 1.4 m Adj. EBITDA 2020 (+41,6% YOY) NET CONSOLIDATED CASH We
Slide 5: 2020 at a glance
2020 at a glance • 2020 sales up to Eur 204.3 m from Eur 157.5 m in 2019 (+29.7% yoy) Net Sales Strong growth both organic and through M&A • International Eur 164.1 m, +32,8% YOY, 80,6% on total • Domestic Eur 39.5 m, +18.6% YOY, 19,4% on total Wholesale • 2020 sales up to Eur 119.6 m (+36.5% yoy) O
Slide 6: We confirm the strengthening of all our brands
2020 at a glance We confirm the strengthening of all our brands Our entire team, from marketing to production and sales, at any level, strives to get to this goal: creating and positioning unique quality wines and brands, tailor made for our customers made of retail chains (“wholesale”) and private
Slide 7: Focus on brand development
2020 at a glance Focus on Brand development New Winemakers’ New High-end products Low-alcohol products • Integration of RdB inside IWB fully operating, with synergies already on the way in terms of revenues and costs • New lines of products added and new costumer addressed, with revenues up of more
Slide 8: Distance selling structural growth and M&A
2020 at a glance The repositioning of commercial channels (e-commerce vs teleselling) allowed for an outstanding increasing of all the kpi’s of the business. Distance selling channel is now projected on a path of sustainable growth with structural and increasing margins. Distance selling Structural
Slide 9: Shareholders structure and governance
2020 at a glance Shareholders structure as at 09.11.2020 Governance Name Role Alessandro Mutinelli Chairman and Group CEO The BoD has been renewed by the General Shareholders’ Simone Strocchi Vice – Chairman meeting on 13 April 2018 with Pier Paolo Quaranta Executive Director and MD a three years ma
Slide 10: Management Strategic view
Management Strategic view The best is yet to come. We are ready to build the first non-coop wine group in Italy in terms of dimension, solidity and margins in order to accomplish our vision: “A branded bottle of ours everywhere“ Alessandro Mutinelli Chairman and Group CEO March 22, 2021 10
Slide 11: Management Strategic view – Reference market
Management Strategic view – REFERENCE MARKET THE WINE MARKET OVER THE LAST 15 YEARS: STABLE WITH A POSITIVE OUTLOOK FOR “EXPORTERS”… • Production and consumption have been globally stable in the last 10 years (~250 mln/hl) • International trade has doubled in terms of volumes over the past 15 years
Slide 12: Management Strategic view – Reference market
Management Strategic view – REFERENCE MARKET • Internationalization, research for new countries, focus on high-end products THERE WAS A WORLD • Strenghtening of small wineries from traditional and fragmented «producer» (Italy, France, South America…) BEFORE COVID 19 • On-trade channel first choice,
Slide 13: What does it mean for wine producers?
Management Strategic view – REFERENCE MARKET WHAT DOES IT MEAN FOR WINE PRODUCERS? SMALL WINERIES MEDIUM TO BIG WINERIES focused on on-trade, will suffer hard both in terms of revenues with scalable business models will have multiple advantages if and cash, even if with strong brands and high-end pr
Slide 14: Management Strategic view – IWB core assets
Management Strategic view – IWB core assets Scalable Business Model and • Management team fully in place and committed to lead the grow organically and through M&A with a long term perspective ability to integrate other companies • Demonstrated capabilities to manage both organic and M&A growth, thr
Slide 15: Financial Highlights
Financial Highlights We delivered strong financial results in 2020 thanks to the implementation of successfully strategies aimed at reinforcing revenue streams and controlling operating expenses. The actions taken in the past, assures now for a long-term sustainable and enduring growth for the whole
Slide 16: Net Sales - Total
Financial Highlights Net Sales - Total • Growth of Net Sales 2016-2020 with a five years Cagr of 7.0%, compared to 2/3% of growth of Italian wines on international reference markets 204,3 157,5 • Increased market shares compared to competitors in Switzerland, 145,9 149,7 149,9 first market for the g
Slide 17: Net Sales - Wholesale
Financial Highlights Net Sales - Wholesale • Net Sales 2016-2020 almost doubled with a five years Cagr of 14.8% • M&A: Completion of RdB acquisition and full exploitation of 204,3 commercial and cost synergies, +Eur 11.9 m of revenues • Organic: Growth on existing customers, new customers and Strong
Slide 18: Net Sales – Distance Selling
Financial Highlights Net Sales – Distance Selling • Distance Selling achieved strong growth in 2020 as a result of the structural shifting of sales from traditional Teleselling versus e- Commerce and Direct Mailing. • Sales repositioning allowed for a strong improvement of KPI’s and a 204,3 structur
Slide 19: Ebitda, Net Profit, Net Financial Position
Financial Highlights Ebitda, Net Profit, Net Financial Position • Ebitda: more than doubled from Eur 11.0 m in 2016 to Eur 25.6 m in 2020 25,6 • Overall increase over the period of raw material incidence on sales due to change in revenues mix (+wholesale –distance selling) • Strong OPEX decrease ove
Slide 20: Extended P&L 2016 - 2020
Financial Highlights Extended P&L 2016 - 2020 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 Net Sales 145.937 149.736 149.863 157.494 204.311 Change in invetory 825 2.402 (1.162) 1.329 4.780 Other income 1.901 1.278 1.486 1.220 1.538 Total Revenues 148.664 153.416 150.187 160.043 21
Slide 21: 2020 P&L – Management adjustments
Financial Highlights 2020 P&L – Management adjustments Reported Management adjustment Restated Management Adjustments • Services: Eur 57k related to legal advice for the Eur/000 31.12.2020 1 2 31.12.2020 acquisition of Raphael Dal Bo AG by Provinco Italia S.p.A. Net Sales 204.311 204.311 Change in i
Slide 22: Extended Balance Sheet 2016 - 2020
Financial Highlights Extended Balance Sheet 2016 - 2020 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 Intangibles & Goodwill net of tax reserves 75.890 76.656 78.385 79.424 94.288 Tangibles 15.526 14.232 14.736 14.539 15.104 Rights of use (Ex IFRS 16) 0 0 0 10.860 9.637 Fixed Assets
Slide 23: Extended Cash Flows statements 2016 - 2020
Financial Highlights Extended Cash Flows statements 2016 - 2020 Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 Ebitda reported 14.158 13.422 16.304 23.604 +(-) changes in NWC 1.206 (2.186) (1.686) 440 + (-) Funds (622) (808) (82) (763) (-) taxes paid (2.499) (2.391) (3.600) (5.089) O
Slide 24: Q&A
Q&A 24