Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — FY2023 Earnings Presentation
39 slides from Italian Wine Brands's earnings presentation, Mar 18, 2024
Slide 1: 2023 FY Results
2023 FY RESULTS Milan, March 18 th, 2024
Slide 2: Our brand everywhere, making customers happy and us too
Our brand everywhere, Making customers happy and us too
Slide 3: Italian Wine Brands
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Slide 4: Our Team
OUR TEAM Presenting Today Alessandro Mutinelli Gabriella Fabotti Chairman & CEO CFO & IR
Slide 5: Where are we now?
WHERE ARE WE NOW? 1 2023 Achievements 4 Value creation path v Highlights v Relaibility v Values & Results v M&A Journey v Digital & Social media v Ebitda hystorical increase v Value Growth 2 Market 5 Appendix v Wholesale v Ho.re.ca 3 Financial Highlights v Net Sales v Distance selling v Sales by cha
Slide 6: 2023 Financial Achievements
2023 Financial Achievements 1 Higher profitability and outstanding cash generation STABLE OUSTANDING REVENUES CASH GENERATION Eur 429,1 m + 30,6 m Revenues In line vs FY 2022 Vs PFN 2022 SOUND & IMPROVED INCREASED PROFITABILITY NET RESULT Eur 44,3 m Eur 18,9 m Ebitda Adjusted Net Result Adjusted +19
Slide 7: This is Italian Wine Brands in numbers
This is Italian Wine Brands in numbers 430 80 70+ 90/5 170 200+ Business model: Destinations around Award Winning Export in the Total turnover: World: Over 70 the World: Total bottles sold: portfolio: 430 mln euros Owned Brands, 90 countries 170 mln Over 200 wines over 80% Private Labels 5 continent
Slide 8: Confirms 2023 growth on international markets and in wholesale
ITALIAN WINE BRANDS CONFIRMS 2023 GROWTH ON INTERNATIONAL MARKETS (+1.73%) AND IN THE WHOLESALE CHANNEL (+2.76%) WITH CONSOLIDATED BUSINESS SALES OF EURO 429,1 million IN LINE WITH 2022 08
Slide 9: Customers at the center
Customers at the center Turkey NEW «GEOGRAFY» Brasil (3 customers) Africa (Nigeria, Mozambico), Angola In addiition to +25% in East Europe NEW CHANNELS/ Travel Retail & Duty Free NEW CUSTOMERS Tesco Migros Forst + Beverage Network (Horeca Italy) Launch of Poggio del Concone & Ronco di Sassi (in the
Slide 10: Quality, Innovation and Entrepreneurship
Q u a l i t y, I n n ovat i o n a n d E n t re p re n e u r s h i p Awards Sakura Wine Awards 2024: Grande Alberone Luxorius, Grande Alberone Moscato Dolce Best Producer "Still wine“ Italy - Provinco Italia, SpA 10
Slide 11: Respect for the rules, people and promises
Respect for the rules, people and promises We look ahead and innovate to keep up with the times. Everyone is responsible for seizing VIVA Certification opportunities, solving v Air indicator problems quickly and v Water indicator making things happen. v Territory indicator RECYCLING SOLAR PLANT 100%
Slide 12: Digital & Social Media
Digital & Social Media We support our brands with Digital and Social media activities @vogaitalia @albertonaniprosecco LAST 30 DAYS LAST 30 DAYS Accounts reached: +13,5% Accounts reached: +6,6% Total followers: +4,4% Total followers: +0,8% @vogaitalia vogaitalia.com Albertonani.com @shesalwaysroswin
Slide 13: 2023 – Market Overview
2023 – MARKET OVERVIEW 2 v European (France, Italy and Spain) wines remain the reference products; the «interest» vs sparkling wine and prosecco is increasing worldwide v Online sales will keep increasing trend v Short term outlook hit by inflation and reduced purchasing power of consumers. Internat
Slide 14: Financial Highlights: Net Sales Key Highlights
Financial Highlights 3 Net Sales – Key Highlights + Stable Revenues despite market decrease Wholsale 430,3 429,1 § +2,7% despite market § +26% Revenues «Other» Countries 500,0 450,0 Distance Selling 400,0 56,9 54,8 Ho.re.ca § Channel «to be present »: 350,0 68,5 62,3 Distance selling create & mainta
Slide 15: Financial Highlights: Net Sales Growth path
Financial Highlights 3 Net Sales – Growth path + 9,8% YoY Wholsale § Revenues about X3 since 2020 390,7 429,1 § Worldwide presence 80 Countries driver to 500,0 additional Growth 450,0 400,0 54,8 Ho.re.ca: +31,4% Distance Selling 41,7 350,0 62,3 Distance selling: -9,1% § Channel «to be present »: 300
Slide 16: Financial Highlights: Revenues by Area and Channel
Financial Highlights Revenues by Area Italy & Europe 9% 2% § Strong presence in key Asia Oceania markets (UK DE/CH/) North America 16% Italy § Increasing revenues in strategic & high potential markets (i.e East Europe 73% +25%) Europe Americas § IWB’s own distributor in NA Revenues by Channel § Just
Slide 17: FY 2023 Achievements: Wholesale
FY 2023 Achievements Wholesale: + 11,8% v Overall Revenues increase higher than market performance +16,4% +7,9% Europe Europe remains the main Area North America Main drivers: v Prosecco + 4,8% v Ronco dei Sassi +10% v Grande Alberone + 2% - 5,6% Italy -18,8% v US: agreement with Southern Asia - Pac
Slide 18: FY 2023 Achievements: Ho.re.ca
FY 2023 Achievements H o . r e . c a + 3 1 ,4% v IWB is present in the main markets with a strong capacity +22,0% to increase sales thanks to its Europe product portfolio +21,3% North America v UK first on- trade market; Revenues increasing 3,6% PF v Widespread increase in all the other countries +4
Slide 19: FY 2023 Distance Selling
FY 2023 Distance Selling FY2017 FY2023 11% Digital / Web 32% Digital / Web 53% 49% Direct Mailing Direct Mailing 37% Teleselling 19% Telesseling Ø The share of digital sales is constantly growing Ø Positive Ebitda Margin in a high competitive market 19
Slide 20: Net Revenue – EBITDA Margin
Financial Highlights 3 Net Revenue – Ebitda Margin 500,0 450,0 430,3 429,1 400,0 350,0 300,0 250,0 200,0 150,0 8,6% 10,3% 100,0 50,0 37,2 44,3 0,0 FY 2022 FY 2023 EBITDA 20
Slide 21: Cost Structure
Financial Highlights 3 Cost Structure Raw Material Services 78,2 Personnel 300,0 80,0 295,1 17,9% 26,0 25,1 67,6% 291,6 78,0 5,8% 295,0 24,3 67,2% 76,0 25,0 5,6% 24,0 290,0 74,0 70,9 72,0 16,4% 23,0 285,0 70,0 22,0 280,0 68,0 21,0 66,0 275,0 FY 2022 FY 2023 20,0 FY 2022 FY 2023 FY 2022 FY 2023 § Dry
Slide 22: EBITDA Increase
Financial Highlights 3 EBITDA INCREASE Ebitda increase due to : v Price increase 10,3% v Better product mix v Dry products cost reduction 46,0 44,3 v Utility and operative costs efficiency 44,0 42,0 8,6% We see: 40,0 v Better customer mix 38,0 37,2 v Glass cost reduction double digit 36,0 v Solar pl
Slide 23: Net Result
Financial Highlights 3 50 Net Result 45 40 44,3 35 13,6 30 3,4 2023 25 27,4 7,8 20 19,6 3,1 15 16,5 10 5 0 Ebitda 2023 Depr. Amort. & Non Recurring EBIT 2023 Net Fin. Inc / EBT 2023 Taxes Net Result 2023 Provisions (Costs) 50 45 40 35 37,2 2022 30 12,3 25 1,3 20 23,5 5,6 15 17,9 3,7 10 14,2 5 0 Ebit
Slide 24: FCF Yield, NPF walking & Free cash flows yield
2023 3 > 17% 2022 FCF Yield 100,0 120,0 20,0 40,0 60,0 80,0 0,0 Ne tC Ne 100,0 120,0 20,0 40,0 60,0 80,0 0,0 as h tC De as h c3 De 1/1 c3 2 / 21 1/1 2 / 22 59,1 61,0 EB I TD EB I A TD A 37,2 44,3 No n-r ecu No rrin n-r g exp ecu ens rrin es g… -1,3 -3,4 DN DN WC WC 3,4 -4,2 Ca Ca pe pe x x -9,9 -7,6
Slide 25: Net Financial Position trend
Financial Highlights 3 Net Financial Position trend 146,5 mil 121,2 mil 115,9 mil 140 7,6 0 17,2 120 13,3 4,4 100 15,1 80 60 121,9 107,9 96,3 40 20 0 2021 2022 2023 Net Debt IFRS 16 Def Price LEVERAGE 2,9 3,94 2,62 Ø 30,6 mil Cash Generation Ø 2022 M&A «paid» in less than one year 25
Slide 26: Value creation path
Value creation path 4 Relaibility 2023 2023 OUTLOOK RESULTS +40- 44 mil +44,3 mil Ebitda* Ebitda* +15- 18 mil + 18,9, mil Net Result* Net Result* 55% 69% +109- 105 100,7 mil Cash Generation Cash Generation mil NFP NFP One DONE company in Live 1/1/24 6 months 26 Adjusted Net Result(*) excluding incen
Slide 27: IWB M&A journey
IWB M&A journey Enoitalia founded in 1986, had Barbanera is based in Tuscany, was Provinco Italia, founded in 1970, had grown significantly over the years to founded in 1938, producing wines with become leader in the production and Italian online shop with a become the largest private wine company p
Slide 28: Value creation path: EBITDA historical increase
Value creation path 4 EBITDA HYSTORICAL INCREASE 47,0 44,3 41,8 42,0 37,2 37,0 32,0 27,0 25,6 22,0 18,1 17,0 16,0 14,6 12,0 11,3 7,0 2,0 -3,0 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 Values in millions of euro OUTSTANDING AND CONTINUOS EBITDA INCREASE FROM IPO 28
Slide 29: What's next?
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Slide 30: Value Growth
VALUE GROWTH 4 § Commercial Synergies: at least 1% increased Value added US margin 50% higher SYNERGIES § Industrial Synergies: 1 mil lower utility 2 mil efficiency for B2C business § Financial Synergies: 0,5/1 mil lower G&A 25/30 mil average lower debt § Premium price products M&A target § Acceller
Slide 31: Conclusion and Q&A
Conclusion and Q&A Thank you for your attention! Italian Wine Brands S.p.A. | www.italianwinebrands.it | info@italianwinebrands.it
Slide 32: Appendix
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Slide 33: Financials: Net Sales – Wholesale
Financials 5 Net Sales – Wholesale 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 16/23 Wholesale - Italy 0,0 0,0 2,5 3,6 5,5 42,6 43,4 40,1 (7,76%) NA Wholesale - International 60,1 69,0 74,7 84,0 114,1 256,8 260,0 271,8 4,52% 24,06% UK 1,1 5,1 9,7 13,2 14,7 72,5 64,5 71,2 10,31% 81,42%
Slide 34: Financials: Net Sales – Ho.Re.Ca
Financials 5 Net Sales – Ho.Re.Ca Eur Millions 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 16/23 Ho.re.ca. - Italy 0,3 2,4 2,9 19,60% NA Ho.re.ca. - International 25,7 54,5 51,9 (4,68%) NA UK 16,5 27,4 27,9 1,80% NA USA 3,9 10,2 8,8 (14,11%) NA Germany 1,0 3,3 3,8 14,83% NA Canada 1,6
Slide 35: Financials: Net Sales – Distance Selling
Financials 5 Net Sales – Distance Selling Eur Millions 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 17/23 Distance selling Italy 41,0 37,3 31,4 29,7 34,0 32,8 27,7 24,4 (11,69%) (6,80%) Direct Mailing 18,1 16,3 14,8 14,1 16,1 15,4 12,3 9,9 (19,37%) (7,98%) Teleselling 20,6 17,8 12,7 11
Slide 36: Financials: Extended PL 2016-2023
Financials 5 Extended PL 2016-2023 (migliaia di Euro) Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Net Sales 145.937 149.736 149.863 157.494 204.311 408.934 430.312 429.127
Slide 37: Financials: Extended BS 2016-2023
Financials 5 Extended BS 2016-2023 (migliaia di Euro) Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Intangibles & Goodwill net of tax reserves 75.890 76.656 78.385 79.424 94.288 208.620 245.899 247.952 Tangibles 15.526 14.232 14.736 14.539 15.104
Slide 38: Financials: Extended Cash Flow 2016-2023
Financials 5 Extended Cash Flow 2016-2023 Eur/000 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Ebitda reported 14.158 13.422 16.304 23.604 38.809 35.871 40.962 +(-) changes in NWC 1.206 (2.186) (1.686) 440 (13.487) (4.346) 3.220 + (-) Funds (622) (808) (82) (763)
Slide 39: Disclaimer
Disclaimer This document has been prepared by IWB SpA (“IWB SpA” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the C