Sig Group Ag · SIX:SIGN
Sig — Non-Deal Roadshow (November 2021)
35 slides from Sig's roadshow presentation, November 2021
Slide 1: SIG Combibloc UBS Rheinfall Tour
SIG COMBIBLOC UBS RHEINFALL TOUR CEO SAMUEL SIGRIST CFO FRANK HERZOG NOVEMBER 2021
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is not for use within any country or securities of SIG in any state or jurisdiction in which, or to any person to whom such Adjusted net income is defined as profit or loss adjusted to exclude certain items of jurisdiction or by any persons w
Slide 3: Leading Systems & Solutions Provider for Aseptic Packaging
LEADING SYSTEMS & SOLUTIONS PROVIDER FOR ASEPTIC PACKAGING GLOBAL FOOTPRINT1 WITH INTEGRATED SUPPLY CHAINS #2 system Razor/razor- 1,266 fillers in the provider globally blade business field in resilient, growing model with long- end-markets term customer relationships Core revenue Adj. EBITDA Track
Slide 4: Benefits of Aseptic Carton Packaging
BENEFITS OF ASEPTIC CARTON PACKAGING ▪ RETAINS NUTRIENTS AND VITAMINS ▪ NO PRESERVATIVES ▪ ALLOWS AMBIENT STORAGE AND DISTRIBUTION ▪ LONG SHELF LIFE AND CONVENIENCE ▪ HIGH RESOURCE EFFICIENCY AND LOWEST CARBON FOOTPRINT COMPARED WITH ALTERNATIVES 4 NOVEMBER 2021
Slide 5: Sustainable by Nature: SIG Aseptic Carton Packaging
SUSTAINABLE BY NATURE SIG ASEPTIC CARTON PACKAGING FULLY RECYCLABLE RENEWABLE In 2019, 51%1 of beverage cartons in the EU were recycled. Beverage cartons are made RESPONSIBLE Notable examples: on average with 75% paperboard, a renewable 100% of the paperboard used to Germany: 76%2 material. manufact
Slide 6: Lowest Carbon Footprint: Cartons Win Every Time
LOWEST CARBON FOOTPRINT: CARTONS WIN EVERY TIME IN END-TO-END ANALYSIS LIQUID DAIRY NON-CARBONATED FOOD kg CO2 equivalent per packaging required for 1,000L UHT milk SOFT DRINKS kg CO2 equivalent per packaging required for 1,000L food kg CO2 equivalent per packaging required for 1,000L non-carbonated
Slide 7: Sustainable Innovation
SUSTAINABLE INNOVATION NOVEMBER 2021
Slide 8: Next Level Sustainable Innovation in Aseptic Carton
NEXT LEVEL SUSTAINABLE INNOVATION IN ASEPTIC CARTON 1st with recycled Ist linked to 100% forest 1st alu-free based materials polymers 8 NOVEMBER 2021
Slide 9: Sustainability of Cartons Drives New Launches
SUSTAINABILITY OF CARTONS DRIVES NEW LAUNCHES VOLVIC FLAVOURED WINS FOR SIGNATURE FULL WATERS IN COMBISMILE BARRIER PACKAGING Intermarché 100% pure juice 9 NOVEMBER 2021
Slide 10: Sustainability of Cartons Drives New Launches
SUSTAINABILITY OF CARTONS DRIVES NEW LAUNCHES FIRST LAUNCH OF SIGNATURE LAUNCH OF COMBISMILE PACKAGING IN EASTERN IN JAPAN WITH COSMO FOODS EUROPE COPACKER OF BEVERAGES IN EUROMILK SWITCHING FROM PLASTIC PACKAGING PET TO CARTON FOR WILL INSTALL HIGH SPEED KUKKONIA MILK FILLER WITH DRINKSPLUS TECHNOL
Slide 11: Quality
QUALITY IN A SERVICE OR PRODUCT IS NOT WHAT YOU PUT INTO IT. IT IS WHAT THE CUSTOMER GETS OUT OF IT. PETER DRUCKER
Slide 12: Consumer Led Innovation: We Think Consumers
On-the-go breakfast Target new consumers milk with healthy cereals with rich protein drinks Premiumise Deliver nutritious soups juices through real fruit inclusions with food particulates New consumption Add perceptible value: occasions with drinkable snacks Tomato passata with real tomato chunks CO
Slide 13: Expanding Our Leading R&D Capability
EXPANDING OUR LEADING R&D CAPABILITY THREE-FACETED TESTING THREE TECH CENTRES AT THREE REGIONAL TECH CENTRES LINNICH CHINA DUBAI (inaugurated Nov 2021) WE TEST 1 2 3 1 2 1 2 Innovative structures, 1 new shapes, product formulations and product safety OUR CUSTOMERS CAN TEST 2 Upstream, downstream, pr
Slide 14: SIG Neo: World's Fastest Filling Machine for Family Sized Packs
SIG NEO: WORLD’S FASTEST FILLING MACHINE FOR FAMILY SIZED PACKS UP TO 18,000 LITRE IMPROVED IMPROVED PACKS PER HOUR OPERATING COST SUSTAINABILITY 50% higher output with 50% higher output with 25% lower greenhouse similar footprint. similar footprint. emissions / filled pack. Lower consumption of Fou
Slide 15: Combivita - Live It Up! Unique and Convenient
COMBIVITA - LIVE IT UP! UNIQUE AND CONVENIENT TRUTWIST CLOSURE SLANTED Brand new closure from SIG, TOP tailor-made for combivita. Easy pouring until the last drop. EXTRA SIDE PANELS ENHANCED IN THE FRONT FUNCTIONALITY For brand communication Easy grip, convenient handling for all age groups. INCREAS
Slide 16: Sustainable Business
SUSTAINABLE BUSINESS NOVEMBER 2021
Slide 17: Contributing to a Circular Economy
CONTRIBUTING TO A CIRCULAR ECONOMY SOURCING INNOVATION AND COLLECTION + RECYCLING SOURCING: SIG BEVERAGE CONSUMPTION RE-USE CARTON PRODUCTION PAPERBOARD FROM & INNOVATION RESPONSIBLY RECYCLING COLLECTION MANAGED FORESTS Average SIG leading material POLYMERS FROM 75% stewardship with FSC™-sourced woo
Slide 18: Industry Commitments by 2030: 90% EU Cartons Collected, 70% Recycled
INDUSTRY COMMITMENTS BY 2030 90% EU CARTONS COLLECTED, 70% RECYCLED EU beverage carton recycling rate 10% 49% 51% 90% 1994 2019 30% 40% 60% 70% 2025 2030 18 NOVEMBER 2021
Slide 19: New Recycling Initiatives Outside Europe
NEW RECYCLING INITIATIVES >50% OF CARTONS OUTSIDE EUROPE RECYCLED IN EUROPE AUSTRALIA INDONESIA NEW FACILITY TO CARTON TURN BEVERAGE COLLECTION AT CARTONS INTO SCHOOLS, WASTE HIGH PERFORMANCE BANKS AND BUILDING SUPERMARKETS MATERIALS PARTNERSHIP WITH INDUSTRY INITIATIVE DUITIN TO RECYCLE WITH STATE
Slide 20: Climate: Greenhouse Gas Reduction Targets
CLIMATE: GREENHOUSE GAS REDUCTION TARGETS SIG COMMITS TO REDUCE ANNUAL EMISSIONS 2020 SCOPE 1,2 GR CO2 SCOPE 1 AND 2 GHG (TOTAL) (KTCO2) PER LITRE PACKED EMISSIONS 60% BY 2030 SCOPE 1,2,3 (1563 KT) FROM A 2016 BASE-YEAR - ALL CATEGORIES 250 250 120 18 16 200 200 SIG COMMITS TO REDUCE 100 14 GHG EMIS
Slide 21: New Asia Pacific Plant: Highest Environmental Standards
NEW ASIA PACIFIC PLANT HIGHEST ENVIRONMENTAL STANDARDS NEW ASIA PACIFIC PHOTOVOLTAIC ROOF PLANT CONSTRUCTED PANELS CAN PROVIDE IN 2020 1.5M KWh OF SOLAR AT SUZHOU ENERGY INDUSTRIAL PARK IN CHINA COLLECTED RAINWATER TREATED AND REUSED TO SAVE ~28K TONNES OF TAP WATER pa 8 BILLION PACKS PRODUCTION CAP
Slide 22: Responsibility an Integral Part of Our Business Strategy
RESPONSIBILITY AN INTEGRAL PART OF OUR BUSINESS STRATEGY EXTENSIVE THIRD PARTY VALIDATION Operations: ▪ All plants SEDEX/SMETA audited ISO9001:2015, ISO14001:2015; ISO 50001:2018 (EU) Supply chain certification: ▪ Responsible forestry: using FSC™ certified mills since 2009 ▪ Responsible aluminium: A
Slide 23: Q3 2021 Financial Performance
Q3 2021 FINANCIAL PERFORMANCE NOVEMBER 2021
Slide 24: Q3 2021 Highlights
Q3 2021 FULL YEAR GUIDANCE HIGHLIGHTS MAINTAINED SOLID REVENUE GROWTH COVID 19 EFFECTS CONTINUE: ENERGY, SUPPLY CHAIN AND AFTER STRONG FIRST HALF POSITIVE IN EUROPE AND LOGISTICS CHALLENGES AMERICAS, NEGATIVE IN APAC AND EFFECTIVELY MANAGED MIDDLE EAST AFRICA INITIATING PRICE INCREASES STRONG CASH F
Slide 25: Q3 2021 Key Figures
Q3 2021 STRONG CASH FLOW KEY FIGURES GENERATION CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €506.7 MILLION REVENUE UP LIKE- INCOME FOR-LIKE (1) +14.7% +4.2% AT €137.1 €60.6 €116.7 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (Q3 2020: (Q3 2020: €77.4m) (Q3 2020: €
Slide 26: 9 Months 2021 Key Figures
9 MONTHS 2021 MEA BUSINESS CONSOLIDATED KEY FIGURES FOR SEVEN MONTHS CORE REVENUE CORE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW €1,457.6 MILLION REVENUE UP LIKE- INCOME FOR-LIKE (1) +15.1% +7.1% AT €401.2 €170.2 €141.7 AT CONSTANT CONSTANT MILLION MILLION MILLION CURRENCY CURRENCY (9M 2020: (9M 2
Slide 27: Core Revenue Growth by Region at Constant Currency
CORE REVENUE GROWTH BY REGION COVID IMPACTS AT CONSTANT CURRENCY POSITIVE AND NEGATIVE EUROPE ▪ At home consumption remains high ▪ Changes in working patterns may be favourable longer term ▪ Consistent above market growth Q3 2021(1) 9M 2021(1) ▪ Hochwald fillers to come onstream in 2022 3.0% 1.7% MI
Slide 28: Core Revenue Growth by Region at Constant Currency
CORE REVENUE GROWTH BY REGION YEAR END RALLIES AT CONSTANT CURRENCY EXPECTED TO BE LOW ASIA PACIFIC ▪ Demand for white milk in China remains solid ▪ Solid Q3 in SE Asia despite continuing restrictions; some customers building safety stocks ▪ New fillers ramping up in Korea and Taiwan Q3 2021(1) 9M 2
Slide 29: Adjusted EBITDA Evolution 9 Months and Q3
ADJUSTED EBITDA EVOLUTION MARGIN SEASONALITY 9 MONTHS AND Q3 LESS MARKED IN 2021 9M 2021 Q3 2021 € MILLIONS 27.2% (1) € MILLIONS 26.8% (1) 30.2% (1) 27.1% (1) 2 -5 2 -2 -12 33 -6 40 401 349 344 -1 13 -5 -5 -7 -5 12 3 134 112 132 137 120 9M 2020 FX Net of FX Top Line Raw Production SG&A JV JV Misc. 9
Slide 30: Managing Supply Chains and an Inflationary Environment
MANAGING SUPPLY CHAINS AND AN INFLATIONARY ENVIRONMENT SUPPLY CHAINS RAW MATERIALS PRICING WELL DIVERSIFIED SUPPLIER MULTI-YEAR LIQUID PAPER INITIATING PRICE INCREASES BASE BOARD CONTRACTS ENSURE TO OFFSET HIGHER COSTS SECURITY OF SUPPLY AND RESILIENT LOCAL SUPPLY PROVIDE PROTECTION PERSISTENT INFLA
Slide 31: Adjusted Net Income First Nine Months
ADJUSTED NET INCOME FIRST NINE MONTHS €million 9M 2021 9M 2020 PROFIT FOR THE PERIOD 128 56 Financing costs and exchange rate impacts and net effect of early repayment of secured term loans (6) 42 Onex acquisition PPA depreciation and amortisation 78 95 Other (2) - Adjustments to EBITDA: (12) (2) Of
Slide 32: Capital Expenditure
CAPITAL INCREASING INVESTMENT EXPENDITURE IN FILLERS €million 9M 2021 9M 2020 2020A PROPERTY, PLANT & EQUIPMENT 50 47 77 GROSS FILLER CAPEX 121 93 122 UPFRONT CASH (67) (30) (54) NET FILLER CAPEX 55 63 68 TOTAL NET CAPEX 105 109 145 TOTAL NET CAPEX AS % REVENUE 7.1% 8.4% 8.0% Differences due to roun
Slide 33: Leverage
LEVERAGE STABLE LEVERAGE YOY AFTER FINANCING ACQUISITION €million 9M 2021 9M 2020 2020A CASH (1) 228 249 355 TERM LOANS 550 550 550 CREDIT FACILITY 50 - - NOTES ISSUES 1’000 1’000 1’000 LEASE LIABILITIES 181 74 147 NET TOTAL DEBT 1’553 1’375 1’342 TOTAL NET LEVERAGE RATIO (2) 2.7x 2.7x 2.7x . (1) In
Slide 34: Financial Guidance
FINANCIAL FULL YEAR GUIDANCE GUIDANCE MAINTAINED FY 2021E CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY) ADJ. EBITDA MARGIN 27 – 28% EFFECTIVE TAX RATE 27 - 28%(1) NET CAPEX (% REVENUE) 8 - 10% 50 - 60% OF ADJUSTED NET DIVIDEND PAYOUT INCOME(2) MID-TERM CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY)
Slide 35: Thank You
THANK YOU NOVEMBER 2021