Vidrala Sa · BME:VID
Vidrala Sa — Investor Presentation (February 2017)
33 slides from Vidrala Sa's investor presentation, February 2017
Slide 1: Company presentation
Company presentation February 2017
Slide 2: Disclaimer
DISCLAIMER This presentation includes or may include representations or estimations concerning the future about intentions, expectations or forecasts of VIDRALA or its management. which may refer to the evolution of its business performance and its results. These forward looking statements refer to
Slide 3: Index
Index 1. General overview 2. Business fundamentals 3. Financials 4. Targets 5. Annexes Company Presentation. │ 3
Slide 4: Vidrala, at a glance
Vidrala, at a glance General overview Vidrala manufactures glass containers for a wide variety of products in the beverage and food industry. We are Western Europe’s fourth glass container manufacturer through eight complementary sites located in five countries. We sell more than 6 billion bottles a
Slide 5: Main figures FY 2016
Main figures FY 2016 Sales Net profit 773.1 67.7 EUR million EUR million EBITDA Free Cash Flow 170.7 102.6 EUR million EUR million Company Presentation. │ 5
Slide 6: Our history
Our history Key milestones 1965 The origin of Vidrala 1965 - Vidrala begins operations in Alava (Spain) 1975 The listing in the stock exchange 1985 1985 - IPO Madrid and Bilbao stock exchanges National expansion 1989 - Second greenfield in Albacete (Spain) 1995 Internationalisation 2003 - Acquisitio
Slide 7: Operating profile
Operating profile Net sales. EBITDA margin. Since 2000, EUR in million. Since 2000, as percentage of sales. 800 30% 600 20% 400 10% 200 0 0% 2004 2006 2008 2004 2006 2008 2000 2001 2002 2003 2005 2007 2009 2010 2011 2012 2013 2014 2015 2016 2000 2001 2002 2003 2005 2007 2009 2010 2011 2012 2013 2014
Slide 8: Cash generation profile
Cash generation profile EBITDA. Free Cash Flow generation. Since 2011, EUR in million. Since 2011, EUR in million. 180 100 150 75 120 90 50 60 25 30 0 0 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 11.1% 10.9% 12.0% 15.4% 10.1% 13.3% Free Cash Flow, as percentage of annual sales. 60%
Slide 9: Financial profile
Financial profile Financial solvency. Debt evolution. Since 2015, EUR in million and times EBITDA. 600 2.9x 3x 2.5x 2.2x 450 1.9x 2x 300 474 404 370 1x 150 322 0 0x jun-15 dic-15 jun-16 dec-16 ON THE BASIS OF A SOLVENT FINANCIAL STRUCTURE Company Presentation. │ 9
Slide 10: Earnings
Earnings Earnings per share. Since 2011, EUR per share. 3,0 2,0 1,0 0,0 2011 2012 2013 2014 2015 2016 AND WITH THE ABILITY TO GENERATE A SUSTAINABLE GROWTH OF RESULTS Company Presentation. │ 10
Slide 11: Shareholder remuneration
Shareholder remuneration Cash dividends. Since 2000, EUR in million. +11.3% 20 15 10 5 0 2011 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 2013 2014 2015 2016 2017 Company Presentation. │ 11
Slide 12: Shareholder remuneration
Shareholder remuneration Proposed 2016 results distribution. Proposed dividend payments for 2017. 14th Feb EUR 58.06 +10% Interim dividend 2017 cents per share YoY change 14th Jul EUR 22.10 +15% Complementary dividend 2017 cents per share YoY change + EUR 3.00 cents per share as attendance bonus to
Slide 13: Business fundamentals
Business fundamentals Company Presentation. │ 13
Slide 14: Industry fundamentals: entry barriers
Industry fundamentals Logistics Natural characteristics of hollow glass containers limit logistics. Local sales nature Customers’ packaging activity demands service on time and supply ENTRY BARRIERS flexibility. Proximity to the customer and service quality determines sales capabilities. Continuous
Slide 15: Demand fundamentals
Demand fundamentals The glass packaging market in Europe. Our key geographical regions. Solid and stable. Strategic markets for the sector. . Glass containers demand in Europe vs GDP. Glass packaging production vs GDP per capita. Base year 2000, accumulated. 70 PER CAPITA (KG) GLASS PACKAGING PRODUC
Slide 16: Vidrala fundamentals
Vidrala fundamentals Sales breakdown. By geograpghy and segment. Vidrala’s commercial Others Rest of 6% positioning is focused on Continental Europe Soft drinks 10% Iberia geographic regions and 22% 35% Spirits Wine 10% 37% product segments of long Italy 8% term strategic value. Food 13% UK and Irel
Slide 17: The european glass packaging industry
The european glass packaging industry TOWARDS A CONSOLIDATION PROCESS Evolution of market shares in Western Europe. TOP 4 PLAYERS 1990 TOP 4 PLAYERS 2014 2016 vs 1990. 17% 20% 20,0% 29% 29,1% 12% 1990 2016 58% 12% 11,5% 12,0% 13% 8% AVIR 29% 2% 8,0% 13,3% 28,6% 1,8% TOP 4 PLAYERS 2016 ≈83% TOP 4 PLA
Slide 18: The european glass packaging industry: production sites location
The european glass packaging industry PRODUCTION SITES LOCATION 9 9 Company Presentation. │ 18
Slide 19: Financials
Financials Company Presentation. │ 19
Slide 20: FY 2016 Results: Sales
FY 2016 Results Sales. YoY change, EUR in million. 900 850 +1.6% -5.3% 802.6 800 773.1 750 700 650 600 2015 Organic FX 2016 EUR/GBP: EUR/GBP: 0,7258 0,8195 Company Presentation. │ 20
Slide 21: FY 2016 Results: EBITDA
FY 2016 Results EBITDA. YoY change, EUR in million. 200 +11.2% -5.4% 175 170.7 161.3 150 125 100 2015 Organic FX 2016 EBITDA margin. YoY change, as percentage of sales. 25% 23% 22.1% 21% 20.1% 19% 17% 15% 2015 2016 Company Presentation. │ 21
Slide 22: FY 2016 Results: Free Cash Flow
FY 2016 Results Free Cash Flow generation. 2016, EUR in million. 22.1% -7.1% -1.7% 13.3% 170.7 102.6 60% CASH CONVERSION EBITDA Capex Taxes, WC, Taxes FCF 2016 Financial Expense Financial Expense &y Others Others Company Presentation. │ 22
Slide 23: FY 2016 Results: Financial solvency
FY 2016 Results Financial solvency. Debt evolution. Since 2015, EUR in million and times EBITDA. 2.9x 2.9x 600 2.7x 3x 2.5x 2.5x +200 2.2x bps 450 2.0x 1.9x 2x 300 491 474 440 404 402 370 1x 150 345 322 0 0x Company Presentation. │ 23
Slide 24: Targets
Targets Company Presentation. │ 24
Slide 25: Development of operational performance
Development of operational performance EBITDA margins Capacity utilization. 100% EBITDA margin 90% 1. Operational 23-25% 80% leverage 70% 2011 2012 2013 2014 2015 2016 23.0% Pack-to-melt ratio. 90% Target 85% 80% 2. Internal efficiency 20.1% 70% Site 1 Site 2 Site 3 Site 4 Site 5 Site 6 Site 7 Site
Slide 26: Materialization of value
Materialization of value Sustained cash generation Cash generation origination rates. 5-year average rates (2015-20019), as percentage of sales. 22-23% 8% <3% <1.5% >10% EBITDA Capex WC & Others Financial Expense FCF >50% Capex in 5 years ≈EUR 350 million, accumulated CASH CONVERSION 2015-2019 capex
Slide 27: Guarantee of the profitability of the business
Guarantee of the profitability of the business Return on capital employed Return on capital employed. ROCE. 12.0% 12% 11.4% 11.5% 10.3% 10% 9.7% 9.4% 7.9% 8% 6% 4% 2% 0% 2011 2012 2013 2014 2015 2016 Target 2019 Company Presentation. │ 27
Slide 28: Annexes
Annexes Company Presentation. │ 28
Slide 29: Annex. Aquisition of Encirc.
Annex. Aquisition of Encirc. General Overview Encirc Glass is a glass packaging manufacturer for the food and beverage markets in UK and Ireland. It operates two sites: DERRYLIN, Northern ELTON, England Ireland • County Chesire, UK • County Fermanagh, UK • Built in 2005 • Built in 1998 • Largest gla
Slide 30: Annex. Aquisition of Encirc.
Annex. Aquisition of Encirc. Quality of assets High-scale facilities, triple gob and quad gob flexibility Highly modern inspection machines Filling capabilities Fully automated warehouse Company Presentation. │ 30
Slide 31: Annex. Aquisition of Encirc.
Annex. Aquisition of Encirc. Estimated cost structure. Encirc, in base 100. 120 100 80 Encirc Competitor 1 Competitor 2 Evolution of Encirc’s market share. In percentage. 12% 32% 35% 9% 27% 30% 2002 2005 2008 2011 2014 2016 Company Presentation. │ 31
Slide 32: Annex. Aquisition of Encirc.
Annex. Aquisition of Encirc. VIDRALA’S COMMERCIAL POSITIONING – TOWARDS A STRATEGIC DIVERSIFICATION Others Product-mix breakdown. 6% Others Vidrala pre-Encirc, Soft 8% Wine Soft drinks drinks Encirc and Vidrala Soft drinks 15% 8% 14% 10% Wine post-Encirc. Spirits + = Spirits 37% 7% Spirits Wine 10%
Slide 33: VIDRALA, S.A. Investor Relations
VIDRALA, S.A. Investor Relations Tel: +34 94 671 97 50 atencion_al_inversor@vidrala.com www.vidrala.com Company Presentation. │ 33