Aryzta Ag · SIX:ARYN
Aryzta — H1 2021 Earnings Presentation
31 slides from Aryzta's earnings presentation, Mar 15, 2021
Slide 1: ARYZTA AG H1 Results, FY21
ARYZTA AG H1 Results, FY21 15 March 2021
Slide 2: Forward Looking Statement
Forward Looking Statement This document contains forward looking statements which reflect the Board of Directors' current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actu- al results to differ materially from those contained in the for
Slide 3: H1 2021 Overview and Key Developments
H1 2021 Overview and Key Developments − Disposal agreement signed for ARYZTA North American businesses (ANA) for USD850m − Good progress on simplifying the business and reducing costs − On track to deliver a 25% annualised reduction in Group overhead in FY21 − H1 revenue and underlying EBITDA perfor
Slide 4: Disposals
Disposals − Agreed disposal of 100% of the North American business to Lindsay Goldberg LLC for USD850m − The sale price of USD850m equates to an Enterprise Value to LTM adjusted EBITDA of 13.6x on a Pre IFRS 16 basis and 10.3x on a post IFRS 16 basis − Transaction involves assets in USA and Canada o
Slide 5: Business improvement
Business improvement − Targeting EBITDA margin run rate of 12.5% in FY22; this is a intermediate target and will need to improve further over time − Multi-local business model with local empowerment over customer decision making and costs progressing well − Delayering of reporting structures across
Slide 6: Cost savings
Cost savings − Renewed Board unanimously endorsed new strategic plan in December − Management changes swiftly implemented to deliver plan − Direct reporting structure in place across entire Group − Restructuring in progress in Europe with strong focus on delivering improvements in Germany − Targetin
Slide 7: Financial Review
Financial Review 7 March 2021
Slide 8: H1 2021 Key Financial Highlights
H1 2021 Key Financial Highlights H1 FY21 H1 FY20 €m €m ∆ Continuing Revenue (ARYZTA Europe & ARYZTA Rest of World) 752.5 952.2 (21.0)% Discontinued Revenue (ARYZTA North America) 533.4 704.0 (24.2)% Total Revenue 1,285.9 1,656.2 (22.4)% Continuing Underlying EBITDA (ARYZTA Europe & ARYZTA Rest of Wo
Slide 9: ARYZTA Group Underlying Income Statement
ARYZTA Group Underlying Income Statement 26-week period ended 30 January 2021 H1 FY21 H1 FY20 €m €m % Change Continuing Operations Group revenue 752.5 952.2 (21.0%) Underlying EBITDA1 76.1 119.1 (36.1%) Underlying EBITDA margin 10.1% 12.5% (240) bps Depreciation and ERP amortisation (54.4) (57.9) 6.
Slide 10: Underlying Income Statement Reconciliation to IFRS
Underlying Income Statement Reconciliation to IFRS 26-week period ended 30 January 2021 H1 FY21 H1 FY20 26 week period ended €m €m Continuing Operations Underlying EBITDA 76.1 119.1 Depreciation (49.1) (52.5) ERP amortisation (5.3) (5.4) Underlying EBITA 21.7 61.2 Amortisation of other intangible as
Slide 11: ARYZTA Group Revenue Performance
ARYZTA Group Revenue Performance Period ended 30 January 2021 ARYZTA Total Total Total ARYZTA Rest Continuing Discontinued ARYZTA Europe of World Operations Operations Group €m €m €m €m €m Group revenue 631.7 120.8 752.5 533.4 1,285.9 Organic movement (19.5)% (6.9)% (17.6)% (14.8)% (16.4)% Disposals
Slide 12: Organic Revenue Development
Organic Revenue Development Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 H1 FY21 ARYZTA Europe Volume % (22.2%) (28.3%) (15.6%) (23.4%) (19.4%) Price/Mix % (1.4%) (1.0%) (0.1%) (0.1%) (0.1%) Organic movement % (23.6%) (29.3%) (15.7%) (23.5%) (19.5%) ARYZTA Rest of World Volume % (18.0%) (26.0%) (10.1%) (5.1%) (7
Slide 13: EBITDA & EBITDA Margin
EBITDA & EBITDA Margin H1 FY21 H1 FY20 Underlying EBITDA €m €m ∆ ARYZTA Europe 59.1 97.1 (39.1)% ARYZTA Rest of World 17.0 22.0 (22.7)% ARYZTA Continuing Operations1 76.1 119.1 (36.1)% ARYZTA Discontinued Operations 48.7 50.7 (3.9)% ARYZTA Group 124.8 169.8 (26.5)% Underlying EBITDA Margin ARYZTA Eu
Slide 14: Impairment, Disposal, Restructuring and COVID-Related Costs
Impairment, Disposal, Restructuring and COVID- Related Costs 26-week period ended 30 January 2021 Disposal of ARYZTA Total Total equity ARYZTA Rest of Continuing Continuing investment Europe World Operations Operations H1 FY21 H1 FY21 H1 FY21 H1 FY21 H1 FY20 €m €m €m €m €m Net loss on disposal of bu
Slide 15: Cash Generation
Cash Generation 26-week period ended 30 January 2021 H1 FY21 H1 FY20 €m €m Underlying EBITDA - continuing operations 76.1 119.1 Underlying EBITDA - discontinued operations 48.7 50.7 ARYZTA Underlying EBITDA 124.8 169.8 Working capital movement 32.2 (35.3) Working capital movement from debtor securit
Slide 16: Net Debt Evolution
Net Debt Evolution Six-month period ended 30 January 2021 H1 FY21 H1 FY20 €m €m Opening net debt (1,010.7) (1,054.3) Cash flow generated from activities 33.8 23.2 Net movements on lease liabilities 13.6 17.4 Disposal of businesses, net of cash and leases 58.8 7.0 Disposal of joint venture1 – 145.5 D
Slide 17: Segmental Review
Segmental Review 17 March 2021
Slide 18: Our Business Model - Four Revenue Drivers
Our Business Model - Four Revenue Drivers Excellence in Channel Solutions Excellence in Innovation / Category Know- Channels: Food Service, Convenience, Bakery, how Retail, QSR Within 6 Product Groups Proposition Gold Standard for ovenbaked freshness Excellence in Quality & Efficiency Excellence in
Slide 19: ARYZTA Europe
ARYZTA Europe H1 FY21 H1 FY20 ∆ Revenue €631.7m €807.3m (21.8)% EBITDA1 €59.1m €97.1m (39.1)% EBITDA Margin 9.4% 12.0% (260) bps – COVID-19 restrictions and lockdowns continue to impact Europe with significant variation across the region – Retail and QSR winners while Foodservice and Independents lo
Slide 20: ARYZTA Rest of World
ARYZTA Rest of World H1 FY21 H1 FY20 ∆ Revenue €120.8m €144.9m (16.6)% EBITDA1 €17.0m €22.0m (22.7)% EBITDA Margin 14.1% 15.2% (110) bps − Rest of World continues to show solid recovery as COVID-19 well controlled in most countries in APAC − Brazil continues to be impacted by COVID-19 but near-term
Slide 21: Discontinued Operations (ARYZTA North America)
Discontinued Operations (ARYZTA North America) H1 FY21 H1 FY20 ∆ Revenue €533.4m €704.0m (24.2)% EBITDA1 €48.7m €50.7m (3.9)% EBITDA Margin 9.1% 7.2% 190 bps – North America continuing to recover well from its COVID lows – Improvement in EBITDA reflecting swift strategic pricing and cost containment
Slide 22: Value Creation Plan Well Underway
Value Creation Plan Well Underway North Current Debt Value + America & LATAM + reduction + Operational Improvement = Future Value Disposals Disposals & Over next 18 Six to nine months Cost Savings months, driven by new local focus business model – Disposal of ARYZTA North America (ANA) signed; LATAM
Slide 23: Thank You
Thank You 23 March 2021
Slide 24: Appendix
Appendix | ay za | ARYZTA | March 2021
Slide 25: ARYZTA Group Balance Sheet
ARYZTA Group Balance Sheet as at 30 January 2021 January 2021 FY 2020 €m €m Property, plant and equipment 896.4 1,323.4 Investment properties 6.4 6.4 Goodwill and intangible assets 686.1 1,143.1 Deferred tax on goodwill and intangibles (19.2) (37.1) Working capital (119.2) (70.9) Other segmental ass
Slide 26: ARYZTA Senior Debt Financing
ARYZTA Senior Debt Financing The covenants are summarised in the table below: Reset after FY 2020 H1 FY 2021 FY 2021 FY 2021 Leverage covenant maximum 6.0x maximum 6.0x maximum 6.0x maximum 3.5x Interest cover covenant minimum 1.5x minimum 1.0x minimum 1.0x minimum 3.0x The Group’s key financial rat
Slide 27: ARYZTA Group Gross Term Debt Financing Facilities and Maturities
ARYZTA Group Gross Term Debt Financing Facilities and Maturities 30 January 2021 1 August 2020 €m €m Syndicated Bank RCF (664.2) (790.8) Term loan facility (193.2) (210.0) State sponsored COVID-19 related loans (22.3) (2.0) Schuldschein (178.3) (178.6) Gross term debt (1,058.0) (1,181.4) Upfront bor
Slide 28: ARYZTA Hybrid Financing
ARYZTA Hybrid Financing Perpetual callable subordinated instruments Currency Coupon Coupon rate if not called €m Not called CHF 400m CHF 5.3% 6.045% +3 Month Swiss Libor (371.5) Not called CHF 190m CHF 3.5% 4.213% +3 Month Swiss Libor (176.5) Not called EUR 250m EUR 6.8% 6.82% +5 Year Euro Swap Rate
Slide 29: Return on Invested Capital – Continuing Operations
Return on Invested Capital – Continuing Operations ARYZTA ARYZTA Rest of ARYZTA Europe World Group €m €m €m 30 January 2021 Segmental net assets 1,141.9 136.7 1,278.6 TTM EBITA 20.7 14.5 35.2 ROIC 1.8% 10.6% 2.7% 1 August 2020 Segmental net assets 1,255.1 145.9 1,401.0 TTM EBITA 56.0 18.6 74.6 ROIC
Slide 30: EUR Closing and Average FX Rates
EUR Closing and Average FX Rates Average Average Closing Closing H1 FY21 H1 FY20 % Change H1 FY21 FY FY20 % Change CHF 1.0781 1.0920 1.3% 1.0767 1.0783 0.1% USD 1.1928 1.1082 (7.6)% 1.2099 1.1894 (1.7)% CAD 1.5560 1.4625 (6.4)% 1.5566 1.5957 2.5% GBP 0.9020 0.8749 (3.1)% 0.8827 0.9054 2.5% 30 March
Slide 31: Presentation Glossary
Presentation Glossary – ‘Organic revenue’ – presents the revenue movement during the period, excluding impacts from acquisitions/(disposals) and foreign exchange translation. – 'Underlying EBITDA' – presented as earnings before interest, taxation, depreciation and amortisation; before impairment, di