Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — Q1 2020 Earnings Presentation
20 slides from Scandinavian Tobacco Group A/s's earnings presentation, May 20, 2020
Slide 1: Investor Presentation First Quarter 2020
INVESTOR PRESENTATION FIRST QUARTER 2020 20 MAY 2020
Slide 2: Agenda
AGENDA Quarterly Highlights Covid-19 Update Agio Cigars Divisions - Update Financials Guidance 2020 Q&A This presentation contains forward-looking statements. All statements other than statements of historical fact included in the presentation are forward-looking statements. Forward-looking statemen
Slide 3: Highlights
HIGHLIGHTS COVID-19 GUIDANCE INTEGRATION OF AGIO CIGARS 3
Slide 4: Financial Highlights
FINANCIAL HIGHLIGHTS Q1 2020 DKK 1,791 million Net sales organic growth 5.0% EBITDA DKK 326 million before special items organic growth 23.9% Free cash flow DKK 122 million before acquisitions Q1 2019: DKK 72 million 4
Slide 5: Update on Covid-19
UPDATE ON COVID-19 I FROM SUSPENSION TO RELEASE OF NEW GUIDANCE ▪ 19 March 2020: Suspension of guidance driven by lack of transparency and increased uncertainty ▪ January-April 2020 financial performance gives improved visibility for full-year 2020 ▪ 20 May 2020: Release of new guidance, including A
Slide 6: Covid-19: A Dynamic Approach
COVID-19 A DYNAMIC APPROACH High impact RISK SCENARIOS MITIGATING ACTIONS Disruption in global retail Mitigating actions taken already and/or considered Supply chain disruption STG Considerations in case of Factory shutdowns further COVID-19 development Restocking of materials Low impact 6
Slide 7: Creating One STG
CREATING ONE STG INTEGRATION OF AGIO CIGARS Commercial activities to be focused Three production sites to be closed in 3 new divisions (Moca, Duizel and Eersel) Europe North America North America Branded Online & Retail Branded & RoW Synergies within sales & marketing, production and back-office ▪ C
Slide 8: Three New Divisions
THREE NEW DIVISIONS Division: Division: Division: Europe North America North America Branded Online & Retail Branded & RoW (Rest of World) Share of Group net Share of Group net Share of Group net sales sales sales (2019-numbers incl. Agio) ~37% (2019-numbers incl. Agio) ~29% (2019-numbers incl. Agio
Slide 9: North America Online & Retail
NORTH AMERICA ONLINE & RETAIL Q1 2020 Highlights Market trends and COVID-19 Continued high level of promotional activity in the online channel, although easing by the end of Q1 Since the outbreak Online has experienced increasing customer activity and net sales, whereas Retail has been impacted by s
Slide 10: North America Branded
NORTH AMERICA BRANDED Q1 2020 Highlights Market trends and COVID-19 Positive organic growth in net sales for all product categories until outbreak of Covid-19 in March Organic net sales growth Positive price/mix in handmade cigars could not off- set negative volume development. Canada gained partly
Slide 11: Region Machine-Made Cigars
REGION MACHINE-MADE CIGARS Q1 2020 Highlights Market trends and COVID-19 Total market estimated to be down by about 3.5% driven by France and COVID-19. The Top 5 Market Share Index was 46.5% up from 31.0% in Q4 2019 driven by the acquisition of Agio Cigars Organic net sales growth Acquisitions accou
Slide 12: Region Smoking Tobacco & Accessories
REGION SMOKING TOBACCO & ACCESSORIES Q1 2020 Highlights Market trends and COVID-19 By the end of Q1 fine-cut tobacco was impacted by Covid-19 Organic net sales growth Net sales growth of 29% driven by acquisitions & divestments by 18%, FX -1% and organic growth of 12%. The organic growth was partly
Slide 13: Key Data
KEY DATA Q1 2020 Q1 2020 Q1 2019 FY 2019 DKKm DKKm Growth, % DKKm Organic 1 Net sales 1,791 1,464 22% 5.0% 6,870 Gross profit (before special items) 819 684 20% 3,314 OPEX (ex other income) -494 -445 11% -1,807 Other income 6 EBITDA before special items 326 239 36% 23.9% 1,513 EBITDA margin before s
Slide 14: Leverage and Capital Allocation
LEVERAGE AND CAPITAL ALLOCATION 2015-2020 Decision to initiate up to DKK 300 million share buy-back program in 2020 is 14 unchanged.
Slide 15: Guidance 2020
GUIDANCE 2020 INCLUDING AGIO CIGARS GUIDANCE EBITDA Organic growth >2% FREE CASH FLOW BEFORE ACQUISITIONS ~ DKK 850 million ASSUMPTIONS ORGANIC NET SALES GROWTH Moderate decline FINANCIAL EXPENSES 1) DKK 90-100 million EFFECTIVE TAX RATE 21-22% SPECIAL ITEMS, NET DKK 415-435 million EXCHANGE RATES C
Slide 16: Scandinavian Tobacco Group
SCANDINAVIAN TOBACCO GROUP
Slide 17: Investor Relations Contact, Financial Calendar
INVESTOR RELATIONS CONTACT FINANCIAL CALENDAR Scandinavian Tobacco Group A/S 2020 Sandtoften 9 2820 Gentofte 27 Annual report 2019* Denmark FEB www.st-group.com 2020 26 Annual General Meeting MAR 2020 20 2020* First quarter 2019* MAY 2020 28 Half year report 2020* AUG Torben Sand 2020 Head of Invest
Slide 18: Market Share Performance
MARKET SHARE PERFORMANCE FY 2016 – Q1 2020 Top 5 EU Markets: France, Belgium, The Netherlands, UK and Spain 18
Slide 19: CSR in STG
CSR IN STG Our Approach Selected 2019 Results • Responsibility is a core STG value 6.4% Energy Consumption In 2019, energy consumption in Group production facilities decreased by 6.4% compared to 2018. • We have for many years engaged in CSR work, now we want to increase our ambition and attention t
Slide 20: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements. All statements other than statements of historical fact included in the presentation are forward-looking statements. Forward-looking statements give Scandinavian Tobacco Groups (“STG”) current expectations and projecti
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