Sig Group Ag · SIX:SIGN
Sig — SIG Combibloc Group — H1 2019 Earnings Presentation
19 slides from Sig's earnings presentation, Jul 30, 2019
Slide 1: SIG Combibloc H1 2019 Results
SIG COMBIBLOC H1 2019 RESULTS CEO ROLF STANGL CFO SAMUEL SIGRIST H1 2019 RESULTS 30 JULY 2019
Slide 2: Disclaimer
DISCLAIMER The information contained in this presentation is not for use within information provided in this presentation and we disclaim any liability for the expense, depreciation of property, plant and equipment and right-of-use any country or jurisdiction or by any persons where such use would u
Slide 3: H1 2019 Financial Highlights
H1 2019 FINANCIAL STRONG HIGHLIGHTS TOP LINE GROWTH CORE REVENUE ADJUSTED EBITDA ADJUSTED NET FREE CASH FLOW ROCE (LTM) MARGIN INCOME +5.1% 25.6% €80.5 €36.8 20% AT CONSTANT (H1 2018: 25.9%) MILLION MILLION CURRENCY (H1 2018: (H1 2018: €2.0 m) €48.4 m) CORE REVENUE ADJUSTED EBITDA ADJUSTED – NET CAP
Slide 4: H1 2019 Performance on Track to Meet FY Targets
H1 2019 PERFORMANCE ON TRACK KEY POINTS TO MEET FY TARGETS CONTINUING STRONG ROBUST SALES IN BRAZIL FAVOURABLE CURRENCY PERFORMANCE IN AND STRONG H1 FOR MIDDLE AND RAW MATERIAL TRENDS GROWTH MARKETS EAST JOINT VENTURE ONGOING INVESTMENT EXPANSION OF PLANT LEADING THE WAY IN INNOVATION NETWORK IN APA
Slide 5: Leading the Way in Sustainability
LEADING THE WAY ON A JOURNEY IN SUSTAINABILITY TO BECOME NET POSITIVE SIGNATURE PACK PROMOTING SALES UP 10X RECYCLING FIRST CARTON SUSTAINABLE COMPANY TO PACKAGING OFFER A FOR WATER PAPER STRAW 5 30 JULY 2019 H1 2019 RESULTS
Slide 6: Revenue Evolution Half Year and Q2
REVENUE EVOLUTION CONTINUING STRONG PERFORMANCE HALF YEAR AND Q2 IN GROWTH MARKETS H1 2019 Q2 2019 €MILLION €MILLION 20 14 3 8 -19 12 1 763 744 794 802 -9 6 0 8 11 2 4 CONSTANT CURRENCY CONSTANT CURRENCY GROWTH RATE 417 408 GROWTH RATE 435 439 +0.3% +7.7% +10.7% +0.2% +5.1% +13.3% 2018 H1 Non-core C
Slide 7: Adjusted EBITDA Evolution Half Year and Q2
ADJUSTED EBITDA EVOLUTION TOP LINE CONTRIBUTION HALF YEAR AND Q2 IMPROVED IN Q2 H1 2019 Q2 2019 €MILLION €MILLION MARGIN 25.6%1 7 0 3 -4 -6 -1 9 MARGIN 27.3%1 198 207 206 3 6 0 2 0 -4 1 112 115 120 2018 H1 FX NET OF FX TOP LINE RAW PRODUCTION JV SGA MISC 2019 H1 2018 Q2 FX NET OF FX TOP LINE RAW PRO
Slide 8: Adjusted EBITDA Margin Development by Region
ADJUSTED EBITDA MARGIN DEVELOPMENT BY REGION EMEA APAC AMERICAS ▪ Lower dividend from Middle ▪ Strong revenue growth ▪ Strong revenue growth East joint venture ▪ Favourable currencies ▪ Favourable currencies ▪ Negative mix effect ▪ Combismile ramp-up costs ▪ Higher freight costs €million EMEA APAC A
Slide 9: Adjusted Net Income Significant Increase
ADJUSTED NET INCOME ADJUSTMENTS LOWER SIGNIFICANT INCREASE THAN IN PREVIOUS YEARS €million 2019H1 2018H1 PROFIT / (LOSS) FOR THE PERIOD 25 (48) Financing costs and exchange rate impacts (2) 16 PPA depreciation and amortisation 69 70 Adjustments to EBITDA 3 25 Of which: Share of profit or loss of joi
Slide 10: Free Cash Flow Higher Cash Conversion
FREE CASH FLOW CASH GENERATION HIGHER CASH CONVERSION WEIGHTED TO H2 €million 2019H1 2018H1 NET CASH FROM OPERATING ACTIVITIES 121 105 Dividends received from joint ventures 7 11 Acquisition of property, plant and equipment and intangible assets (87) (113) Payment of lease liabilities (4) (1) FREE C
Slide 11: Working Capital
WORKING CAPITAL WORKING CAPITAL REMAINS WELL CONTROLLED €million 2019H1 2018H1 2018A INVENTORY 194 155 144 TRADE RECEIVABLES 90 92 135 TRADE PAYABLES (165) (168) (166) NET WORKING CAPITAL 118 78 114 OTHER RECEIVABLES / PAYABLES1 (121) (95) (179) OPERATING NET WORKING CAPITAL (3) (17) (66) (1) Includ
Slide 12: Capital Expenditure
CAPITAL FY NET CAPEX GUIDANCE EXPENDITURE 8–10% OF REVENUE €million 2019H1 2018H1 PROPERTY, PLANT & EQUIPMENT 20 29 GROSS FILLER CAPEX 66 84 UPFRONT CASH (26) (25) NET FILLER CAPEX 41 59 TOTAL NET CAPEX 61 88 TOTAL NET CAPEX AS % REVENUE 7.6% 11.5% ADJUSTED EBITDA - NET CAPEX MARGIN 18.0% 14.4% Diff
Slide 13: Leverage
LEVERAGE DIVIDEND PAYMENT IN Q2 €million 2019H1 2018A CASH1 79 157 SENIOR SECURED TERM LOANS 1’577 1’592 LEASE LIABILITIES2 45 26 NET TOTAL DEBT 1’543 1’462 TOTAL NET LEVERAGE RATIO 3.3X 3.2X (1) Includes restricted cash (2) Lease liabilities include €14 million related to the adoption of IFRS 16 Di
Slide 14: Financial Guidance
FINANCIAL FULL YEAR FINANCIAL GUIDANCE GUIDANCE MAINTAINED FY 2019E This Presentation includes mid-term goals that are forward-looking, are subject to significant business, CORE REVENUE GROWTH 4 - 6% (CONSTANT CURRENCY) economic, regulatory and competitive uncertainties and contingencies, many of wh
Slide 15: Aseptic Carton Outpacing Other Forms of Packaging
ASEPTIC CARTON OUTPACING SIG INVESTMENTS OTHER FORMS OF PACKAGING IN HIGH GROWTH REGIONS GLOBAL DAIRY TOP 10, 2018(2) EXPECTED GROWTH NESTLÉ ASEPTIC CARTON PRODUCTION VOLUMES 1 Switzerland (BN LITRES)1 LACTALIS 2 France DANONE 3 France +3.6% 17-22 DAIRY FARMERS OF AMERICA 109.4 CAGR 4 US ~55% OF SIG
Slide 16: Expansion of Plant Network in APAC to Deliver Continuing Growth
EXPANSION OF PLANT NETWORK IN APAC OPTIMISED TO DELIVER CONTINUING GROWTH FINANCING SOLUTION ROBUST DEMAND FOR LOCATED CLOSE TO LIQUID DAIRY IN CHINA NEW SIG TECH CENTRE: AND SOUTH EAST ASIA COMPREHENSIVE ABILITY LEADING TO SERVE CUSTOMERS TO HIGH CAPACITY UTILISATION AT CHINESE TOTAL INVESTMENT AND
Slide 17: New Plant Designed for World Class Performance
NEW PLANT DESIGNED FOR WORLD CLASS PERFORMANCE ENVIRONMENTAL PRODUCTIVITY & SAFETY PERFORMANCE ▪ PROCESS HEAT RECOVERY ▪ CAPACITY UP TO 8BN PACKS ▪ SOLAR ROOFING ▪ INCREASED AUTOMATION: HIGHEST NET SPEEDS WITHIN SIG PLANT NETWORK ▪ MINIMUM WASTE WITH RECYCLING OF PROCESS WASTE ▪ OPTIMISED PLANT LAYO
Slide 18: Summary: Resilient Growth
SUMMARY CONTINUING TRACK RECORD RESILIENT GROWTH OF GROWTH TOP LINE PERFORMANCE RESILIENT END MARKETS FOCUS ON MARGIN DEMONSTRATES CONTINUING AND RAZOR-RAZORBLADE QUALITY AND BUSINESS SUCCESS OF GROWTH BUSINESS MODEL EFFICIENCY STRATEGY DISCIPLINED CAPEX TO BEST-IN-CLASS NEW LEADING THE WAY IN DRIVE
Slide 19: Thank You
THANK YOU First carton company to offer a paper straw CEO ROLF STANGL CFO SAMUEL SIGRIST H1 2019 RESULTS 30 JULY 2019