Arcus ASA — Q2 2021 Earnings Presentation
21 slides from Arcus ASA's earnings presentation, Aug 18, 2021
Slide 1: Second quarter results 2021
Second quarter results 2021 Michael Holm Johansen, Chairman of the Board Sigmund Toth, Interim Group CEO Kristoffer Loftesnes, Head of Business Controlling & Treasury 18 August 2021
Slide 2: Q2: Best second quarter in Arcus' history
Q2: Best second quarter in Arcus’ history Amounts in NOK million 2020 2021 Operating Revenues EBITDA (adj.) +0.7% RG +3.5% OG1 767 773 119.3 126.4 Q2 Q2 • Wine: Organic growth and strong margins • Spirits: Strong growth in external sales • Logistics: Continued high volume at high cost 1 Reported gro
Slide 3: Q2: Organic growth still impacted by Covid-19
Q2: Organic growth still impacted by Covid-19, although seasonal sale partly shifted to Q1 due to earlier Easter this year Organic growth1 overall and by reporting segment Percent Q2 June YTD Arcus ASA 3.5% Arcus ASA 5.5% Wine 2.5% Wine 5.9% Spirits2 5.6% Spirits2 4.8% Logistics 3.9% Logistics 3.5%
Slide 4: Q2 Wine: Organic growth and strong margins
Q2 Wine: Organic growth and strong margins Amounts in NOK million 2020 2021 Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) 2.5% OG1 497 495 84.1 17.0 66.6 13.4 Q2 Q2 Q2 • Sweden: Strong revenue increase despite lower volumes at Systembolaget, value shares slightly down • Norway: Slightly
Slide 5: Q2 Spirits: Strong growth in external sales
Q2 Spirits: Strong growth in external sales Amounts in NOK million 2020 2021 Operating revenues1 EBITDA (adj.) EBITDA (adj.) margin (%) 5.6% OG2 237 231 30.5 12.9 25.0 10.8 Q2 Q2 Q2 • Norway and Sweden: Strong revenue growth with positive market development despite the early Easter • Denmark: Lower
Slide 6: Q2 Logistics: Continued high volume at high cost
Q2 Logistics: Continued high volume at high cost Amounts in NOK million Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) +3.9% OG1 91 94 4.9 5.4 2020 2021 0.4 0.5 Q2 Q2 Q2 • Distributed volume in Q2 was 16.3 million liters, a decrease of 0.7 million liters from Q2 last year • Volumes to Vin
Slide 7: Financial performance
Financial performance Kristoffer Loftesnes, Head of Business Controlling & Treasury 7
Slide 8: Increased operating revenues although negative FX-effects
Increased operating revenues although negative FX-effects reduced the effect of organic growth Q2-21 Operating revenue growth Percent; NOK million +0.7% -2.8% 3.5% 773 +0.0% 767 Operating revenues Organic growth1 FX Structural Changes Operating revenues Q2-20 Q2-21 1Reported growth adjusted for curr
Slide 9: Q2 Group P&L: Revenues and Adjusted EBITDA above last year
Q2 Group P&L: Revenues and Adjusted EBITDA above last year Amounts in NOK million Profit and Loss This quarter Year-to-date 2021 2020 2021 2020 Operating revenues 772.5 767.2 1 441.3 1 378.3 EBITDA (adj.) 126.4 119.3 228.6 185.9 Depreciation. Amortization and Write-downs -38.5 -31.5 -70.3 -62.9 EBIT
Slide 10: Weaker EUR vs SEK and NOK give net positive effect on EBITDA
Weaker EUR vs SEK and NOK give net positive effect on EBITDA for the quarter, current rates indicate negative full year effects on revenues and positive on EBITDA Currency rate effects1 (Q2 2021 actuals vs. Q2 2020 actuals) Currency rate effects1 (2021F currency rate3 vs. 2020 actuals) Revenues (MNO
Slide 11: Cash flow below Q2 2020 due to working capital decline
Cash flow below Q2 2020 due to significant decline in working capital last year when Vinmonopolet temporarily reduced their own credit terms Q2-21 Cash Flow from Operations Amounts in NOK million Cash Flow last year was boosted by significant reduction in net working capital as accounts payables, al
Slide 12: Gearing well below target at the end of Q2
Gearing well below target at the end of Q2 Net Interest Bearing Debt (NIBD) / R12M Adjusted EBITDA by quarter (Excluding IFRS16 effects) Target < 2.5x 1,5 1,3 1,1 1,0 0,7 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 12
Slide 13: Michael Holm Johansen, Chairman of the Board
Michael Holm Johansen Chairman of the Board 13
Slide 14: Anora: Completion of the merger is planned for Sep 1st 2021
Anora: Completion of the merger is planned for Sep 1st 2021 • Brand divestment agreement reached with Galatea • All regulatory approvals received allowing for the completion of the Merger • Internal planning of the Merger integration has proceeded well • Completion of the Merger is now expected to o
Slide 15: Executive Management Team at Anora Group
Executive Management Team at Anora Group Pekka Tennilä Janne Halttunen Kirsi Puntila Hannu Tuominen Current position Current position Current position Current position CEO, Altia SVP, Scandinavia, Altia Henrik Bodekær SVP, Marketing, Altia SVP, Altia Industrial Sigmund Toth Thomsen Kirsi Lehtola Cur
Slide 16: Q&A
Q&A Financial calendar, 2021 New dates to be communicated after the merger 16
Slide 17: Condensed statement of income
Condensed statement of income MNOK Second quarter Year to date Full Year Note 2021 2020 2021 2020 2020 Sales 2,9 761.8 759.0 1 421.2 1 354.1 3 156.4 Other revenue 2 10.7 8.1 20.0 24.2 47.3 Total operating revenue 2,9 772.5 767.2 1 441.3 1 378.3 3 203.7 Cost of goods -433.1 -450.4 -796.1 -800.0 -1 81
Slide 18: Condensed statement of financial position
Condensed statement of financial position MNOK Second quarter Full Year Note 30.06.2021 30.06.2020 31.12.2020 Intangible assets 6 1 913.8 2 023.6 1 984.5 Tangible assets 5 1 345.1 1 402.1 1 391.9 Deferred tax asset 32.9 72.1 49.0 Financial assets 67.9 69.0 71.2 Total fixed assets 3 359.6 3 566.8 3 4
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
Slide 20: Important information
Important information The securities referred to in this document in relation to the merger have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States (as such term is def
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