Sig Group Ag · SIX:SIGN
Sig — H1 2023 Earnings Presentation
16 slides from Sig's earnings presentation, Jul 25, 2023
Slide 1: SIG H1 2023 Results, Samuel Sigrist, CEO
B SIG a \ ’ Samuel Sigrist, CE July 25, 2023
Slide 2: Disclaimer
The information contained in this presentation is not for use within any Neither SIG nor any of its directors, officers, employees, agents, affiliates or These alternative non-IFRS measures are presented as we believe that they country or jurisdiction or by any persons where such use would constitut
Slide 3: Price increases driving top line growth
Price increases driving Margin improvement Developments in Growth in non-filler top line growth continues carton structure capex to support increasing fibre global footprint Acquisitions continue content expansion to perform well New single serve Increase in filler carton bottle capex to meet high F
Slide 4: H1 2023 key figures
€ 1,540.0 million +35.1% €384 €144 €(213) constant currency million million million (H1 2022: €281 m) (H1 2022: €124 m) (H1 2022: €(9) m) +6.6% organic(1) constant currency 24.9% €0.38 +34.8% reported (H1 2022: 24.6%) (H1 2022: €0.36) (1) Organic growth represents SIG aseptic carton revenue growth,
Slide 5: Q2 2023 key figures
€811.0 million +27.6% €209 €80 €(118) constant currency million million million (Q2 2022: €162 m) (Q2 2022: €80 m) (Q2 2022: €15 m) +6.4% organic(1) constant currency 25.7% +25.6% reported (Q2 2022: 25.1%) (1) Organic growth represents SIG aseptic carton revenue growth, excluding the impacts from th
Slide 6: A carton with the convenience of a plastic bottle
Launch of 2nd generation >85% A carton with the convenience of a plastic SIG Neo CleanPouch 60 bottle AND all the sustainability of a carton >90% New inline sterilization Compatible with mono- materials Scalable for high speeds
Slide 7: Strong revenue and adj. EBITDA margin recovery: regional summary
Strong revenue and adj. EBITDA margin Regional summary recovery H1 2022 Organic revenue growth primarily reflected price increases to recover cost inflation 376 Strong growth in SIG Terra Alu-free and SIG Terra Alu-free + forest-based polymers Margin improvement despite dilution from acquisitions re
Slide 8: Strong margin expansion: regional summary
Strong margin expansion Regional summary H1 2022 Strong prior year revenue growth (H1 2022: 16.8%) 155 Restriction of foreign currency availability in Egypt Sub Sahara and West Africa leading growth primarily in liquid dairy Strong margin expansion reflected price rises and lower freight costs 40 Br
Slide 9: Good volume recovery in Q2: regional highlights
Good volume recovery in Q2 Regional highlights H1 2022 Q2 recovery reflects improved demand in China 367 Integration of chilled cartons: product improvements and enhanced customer service driving growth SIG volume flexibility helping customers tackle inflation in SE Asia 116 High level of filler pla
Slide 10: Strong revenue growth and margin improvement: regional highlights
Strong revenue growth and margin Regional highlights improvement H1 2022 Deployment of new fillers for portion packs in South America supporting volume growth 243 Continued growth in food service in carton and bag-in-box in USA Price increases, mix benefits and currency tailwinds more than offset ma
Slide 11: Price increases recovering cost inflation
€ million Strong top line growth including 24.6% (1) 24.9%(1) price and positive mix 2 Price increases recovering cost -18 -15 -23 50 inflation 11 96 Raw material costs hedged 53% for 2023 281 292 384 Lower production costs in Q2 as freight costs reduced (2) SG&A costs reflect investment in H1 2022
Slide 12: Capital expenditure
H1 2023 includes: - Ramp up of sleeves plant in Mexico - Investment in sleeves plant in India - Digital printing in Europe Six months Six months - Expansion investments in bag- ended ended € million June 30, 2023 June 30, 2022 in-box and spouted pouch - High net filler capex PP&E and intangible asse
Slide 13: Cash generation weighted to second half of year
Cash generation weighted to second half of year Six months Six months 12 months Elevated capital expenditure in H1 ended ended ended € million or % June 30, 2023 June 30, 2022 Dec 31, 2022 Net cash flow from operating activities Net cash from operating activities 31 94 578 included: Acquisition of p
Slide 14: H1 cashflow reflects usual NWC seasonality, dividend payment and capital investment
€ million June 30, 2023(1) Dec 31, 2022(2) H1 cashflow reflects usual NWC seasonality, dividend payment and capital Gross debt 2,794 2,684 investment Cash 212 504 €450 million loan repayment partially Net debt 2,583 2,180 funded by a bridge facility of €350 million Net leverage ratio(3) 3.4x 3.1x Co
Slide 15: 2023 guidance
Revenue growth (constant currency) 20–22% Includes organic(1) growth of 7-9% ▪ Pass through resin escalator for bag-inbox and spouted pouch excluded from guidance Adjusted EBITDA Range of margin 24-25% ▪ Guidance subject to input cost and forex Adjusted effective tax rate volatility Net CAPEX (% rev
Slide 16: Thank you!
Thank you!