Fine Foods & Pharmaceuticals N.t.m. Spa · MIL:FF
Fine Foods & Pharmaceuticals N.t.m. Spa — H1 2023 Earnings Presentation
40 slides from Fine Foods & Pharmaceuticals N.t.m. Spa's earnings presentation, Sep 14, 2023
Slide 1: H1 2023 Results Presentation
H1 2023 RESULTS PRESENTATION 14/09/23
Slide 2: Index
FINE FOODS H1 2023 INDEX 2 RESULTS PRESENTATION INDEX WE CREATE FINANCIALS SHAREHOLDING VALUE STRUCTURE INVESTOR BACK UP INFORMATION ESG DETAILS & CONTACTS
Slide 3: Disclaimer
FINE FOODS H1 2023 DISCLAIMER 3 RESULTS PRESENTATION Disclaimer This document has been prepared by Fine Foods & The information contained in this document, unless Pharmaceuticals N.T.M. S.p.A. for the sole purpose otherwise specified is only current as of the date of this described herein. The infor
Slide 4: We Create Value
FINE FOODS H1 2023 4 RESULTS PRESENTATION WE CREATE VALUE
Slide 5: Fine Foods at a glance
FINE FOODS H1 2023 WE CREATE VALUE 5 RESULTS PRESENTATION Fine Foods Italian independent CDMO working in the pharmaceutical, nutraceutical Strong partnership with at a glance multinational clients in all our and cosmetics industries with three reference markets integrated Business Units Stable prese
Slide 6: Three production plants located in a European cluster
FINE FOODS H1 2023 WE CREATE VALUE 6 RESULTS PRESENTATION BREMBATE Three production LOMBARDIA plants located in a European cluster 1 BERGAMO of Excellence ZINGONIA 2 3 TRENZANO MILANO Italy and Lombardia, where our plants are located, are a cluster of excellence for our sectors. This has a positive
Slide 7: Strong Corporate culture
FINE FOODS H1 2023 WE CREATE VALUE 7 RESULTS PRESENTATION Strong Corporate culture Three different integrated and cross-functional FINE FOODS business units committed to Fine Foods’ key CORPORATE business principles STRUCTURE PHARMA
Slide 8: Business Units
FINE FOODS H1 2023 WE CREATE VALUE 8 RESULTS PRESENTATION 3 Business FOOD PHARMA COSMETICS Units PHARMACEUTICAL FORMS Cross-fertilised innovation is implemented by Capsules Tablets Powders Granules Liquids Creams Gels Toothpaste Parfum & Lotions exploiting our expertise in different fields, best pra
Slide 9: Flexible and integrated business model
FINE FOODS H1 2023 WE CREATE VALUE 9 RESULTS PRESENTATION Flexible NUTRACEUTICALS AND COSMETICS and integrated Concept Development Regulatory Compliance Formulation Production Distribution business model Distribution Companies Fine Foods is positioned within the value creation chain of pharmaceutica
Slide 10: R&D for efficient and high-quality product development
FINE FOODS H1 2023 WE CREATE VALUE 10 RESULTS PRESENTATION R&D for efficient OPPORTUNITY LAB and high-quality Formulae databank ➝ Wide range of ready-to-use product formulations product development Using different approaches, INNOVATION LAB Innovative products ➝ A lab to offer out-of-the-box ideas 1
Slide 11: Strong holistic ESG
FINE FOODS H1 2023 WE CREATE VALUE 11 RESULTS PRESENTATION 2010 2013 2015 2019 2022 Strong Organisation, holistic management and control systems Standard • Sustainability report Standard describing under Legislative which ensures • Impact report (Benefit Corporation) Continuous Decree 231, to avoid
Slide 12: ESG main initiatives and results
FINE FOODS H1 2023 WE CREATE VALUE 12 RESULTS PRESENTATION Social ESG Environment Governance main CIRCULAR ECONOMY WE ATTRACT BOARD OF DIRECTORS • Programs for reduction of ~ 8,000 applications/year • 3 Women out of 7 Directors • 3 Independent Directors initiatives environmental impact of waste • Te
Slide 13: Selection of products
FINE FOODS H1 2023 WE CREATE VALUE 13 RESULTS PRESENTATION Selection of products • Pharmaceuticals (Pharma BU) • Nutraceuticals (Food BU) • Cosmetics (Cosmetic BU)
Slide 14: Customers' loyalty
FINE FOODS H1 2023 WE CREATE VALUE 14 RESULTS PRESENTATION 2020 Customers’ 2010 loyalty 2000 Retained key clients acquired before 2000 with several new ones added afterwards, including those derived from our recent acquisitions in the cosmetic industry, which consolidated our high customer retention
Slide 15: European Reference Markets
FINE FOODS H1 2023 WE CREATE VALUE 15 RESULTS PRESENTATION European CAGR PHARMA1 (€BN) 5.5% PHARMA2 – CDMO Reference 9.6% 15% 23% Italy Markets 589 691 5% 7% Market value: Germany France 448 United Kingdom 11.8 €BN Spain 11% 21% Greece Others 18% 2019 2022 2025 FOOD – DIETARY SUPPLEMENT3 (€BN) COSME
Slide 16: Consistently outperforming Reference Markets
FINE FOODS H1 2023 WE CREATE VALUE 16 RESULTS PRESENTATION Consistently Reference markets show high steady growth and resilience during recessions Fine Foods has substantially outgrown its reference end-markets in the last decade, with outperforming 2022 sales at 2.6X the 2012 level Reference Europe
Slide 17: Why Fine Foods?
FINE FOODS H1 2023 WE CREATE VALUE 17 RESULTS PRESENTATION Why Fine Foods? Reliability Performance Positioning • Holistic sustainability • Solid track record with • Pharma Food since foundation a 10-year revenue Cosmetic CAGR of 10% unique presence • Solid track records • Long lasting • Critical mas
Slide 18: Financials
FINE FOODS H1 2023 18 RESULTS PRESENTATION FINANCIALS
Slide 19: H1 2023 Consolidated Revenues
FINE FOODS H1 2023 FINANCIALS 19 RESULTS PRESENTATION + 26.7% 127.5 H1 2023 (€M) Consolidated 100.6 Revenues Revenue Growth +26.9 €m vs H1 2022: H1 2022 H1 2023 • Pharma BU +9.0 €m vs H1 2022 REVENUE BREAK-DOWN • Food BU +18.6 €m vs H1 2022 Pharma Food Cosmetic • Cosmetic BU -0.8 €m vs H1 2022 75.4
Slide 20: H1 Group Revenue trends
FINE FOODS H1 2023 FINANCIALS 20 RESULTS PRESENTATION H1 Group (€M) Revenue trends 127.5 2020 - 2023 Significant progress of Revenues since 100.6 H1 2020 with a 19.1% CAGR 99.7 75.4 H1 2020 H1 2021 H1 2022 H1 2023
Slide 21: H1 2023 EBITDA
FINE FOODS H1 2023 FINANCIALS 21 RESULTS PRESENTATION % OF H1 2023 EBITDA REVENUES ADJUSTED EBITDA (€M) 50.5% EBITDA and EBITDA Margin 12.6 strongly increased compared to H1 8.4 2022 Improvement in marginality mainly H1 2022 * H1 2023 ** due to: • personnel cost impact reduction on turnover REPORTED
Slide 22: H1 2023 Energy Impact on EBITDA
FINE FOODS H1 2023 FINANCIALS 22 RESULTS PRESENTATION H1 2023 Energy (€M) Impact on % OF EBITDA REVENUES 6.5% H1 2023 Energy costs at 2 €M with an incidence on revenues of 1.6% compared to 2.8% in H1 2022 13.4 12.6 Assuming the same Energy Cost incidence on Revenues in 9M 2021 – i.e. before the stro
Slide 23: H1 2023 EBIT
FINE FOODS H1 2023 FINANCIALS 23 RESULTS PRESENTATION H1 2023 EBIT ADJUSTED EBIT (€M) % OF REVENUES Strong ADJ EBIT and ADJ EBIT 346% 4.8 Margin recovery following EBITDA and EBITDA Margin increase 1.1 REPORTED EBIT affected by H1 2022* H1 2023** Pharmatek’s goodwill impairment for 4.4 €m REPORTED E
Slide 24: H1 2023 Energy Impact on ADJ EBIT
FINE FOODS H1 2023 FINANCIALS 24 RESULTS PRESENTATION H1 2023 Energy (€M) Impact on ADJ % OF EBIT REVENUES 16.8% Assuming the same Energy Cost incidence on Revenues in 9M-2021 – i.e. before the strong price increase 5.7 occurred starting from Q4 2021 – EBIT in H1 2023 would be close to 4.4% 4.8 (3%
Slide 25: H1 2023 Net Income
FINE FOODS H1 2023 FINANCIALS 25 RESULTS PRESENTATION % OF REVENUES H1 2023 ADJUSTED NET INCOME (€M) Net Income 2.7 H1 2023 Net Income affected by: 1) Financial charges: -2.3 €m (increased by 1.7 €m compared to (5.6) H1 2022 due to higher interest rates) H1 2022 * H1 2023 ** 2) Non-cash effects for
Slide 26: Solid Capital Structure
FINE FOODS H1 2023 FINANCIALS 26 RESULTS PRESENTATION Solid Capital NET FINANCIAL POSITION (€M) Buy Back and Structure NFP Adj Net Adj Depreciation ∆ other equity NFP 31.12.2022 Income & Amotization* NWC Others CAPEX movements Dividends 30.06.2023 (43.6) Net Financial Position mainly (57.8) impacted
Slide 27: Shareholding Structure
FINE FOODS H1 2023 27 RESULTS PRESENTATION SHAREHOLDING STRUCTURE
Slide 28: Shareholding structure
FINE FOODS H1 2023 SHAREHOLDING 28 RESULTS PRESENTATION STRUCTURE Shareholding FINE FOODS SHARES N. OF SHARES (MLN) % FLOATING (ON LISTED SHARES) structure ~53.9% LISTED SHARES 22.1 86% UNLISTED SHARES* 3.5 14% As of 13.09.2023 TOTAL EQUITY CAPITAL 25.6 100% 4.1% * Unlisted shares are Multiple Votin
Slide 29: Investor Information & Contacts
FINE FOODS H1 2023 RESULTS PRESENTATION INVESTOR INFORMATION & CONTACTS
Slide 30: Investor Information
FINE FOODS H1 2023 INVESTOR INFORMATION 30 RESULTS PRESENTATION AND CONTACTS Investor MARKET EURONEXT STAR MILAN Information ISIN CODE IT0005215329 TICKER FF BANCA AKROS S.p.A. Analyst: Gian Marco Gadini SPECIALIST E-mail: gianmarco.gadini@bancaakros.it Recommendation: Accumulate INTERMONTE PARTNERS
Slide 31: Contacts
FINE FOODS H1 2023 INVESTOR INFORMATION 31 RESULTS PRESENTATION AND CONTACTS Contacts Fine Foods & Pharmaceuticals N.T.M. S.p.A. Tel. +39 035 4821382 Investor Relations & Communication Director: Carlo Larghi Investor Relations: ir@finefoods.it Media Relations: media.relations@finefoods.it
Slide 32: Back Up ESG Details
FINE FOODS H1 2023 32 RESULTS PRESENTATION BACK UP ESG DETAILS
Slide 33: Fine Foods' group sustainability pillars
FINE FOODS H1 2023 BACK UP – ESG DETAILS 33 RESULTS PRESENTATION People Fine Foods’ group sustainability pillars Environment Ethics & Governance Supply Sustainable Chain Products Land Development
Slide 34: Ratings, ESG Commitment and Certifications
FINE FOODS H1 2023 BACK UP – ESG DETAILS 34 RESULTS PRESENTATION Ratings, RATINGS ESG Sedex Member since 2016 Commitment (Business Units Food) and ESG COMMITMENT Certifications BENEFIT CORPORATION Since 2021 231 Organizational, managerial and control New membership to the models to prevent network o
Slide 35: People
FINE FOODS H1 2023 BACK UP – ESG DETAILS 35 RESULTS PRESENTATION People WE ATTRACT ~ 8,000 WOMEN ~ 47% of managers SAFETY AT WORK Management system for applications/year ~ 43% of Board health and safety We are committed members is internationally to creating an certified since 2014* environment taki
Slide 36: Corporate Governance
FINE FOODS H1 2023 BACK UP – ESG DETAILS 36 RESULTS PRESENTATION Corporate →3 Women out of 7 Directors Governance →3 Independent Directors out of 7 →2 Non-executive Directors out of 7 Our governance is structured around an ESG responsible approach. It allows us to pursue a sustainable growth while a
Slide 37: Suppliers' ESG management
FINE FOODS H1 2023 BACK UP – ESG DETAILS 37 RESULTS PRESENTATION Suppliers’ ENVIRONMENTAL AND SOCIAL ASSESSMENT OF OUR SUPPLIERS ESG 79% Value of purchases of raw materials management and packaging from suppliers assessed by EcoVadis on ESG criteria 92% Value of purchases of raw materials and packag
Slide 38: Environment
FINE FOODS H1 2023 BACK UP – ESG DETAILS 38 RESULTS PRESENTATION Environment We are committed to sustainably use our resources and reduce our environmental impact. CLIMATE WATER RESOURCES CIRCULAR ECONOMY ENVIRONMENT PROTECTION • - 15% CO2 • Programs for • Programs for emissions reduction of water r
Slide 39: Relations with local communities
FINE FOODS H1 2023 BACK UP – ESG DETAILS 39 RESULTS PRESENTATION Relations SOCIAL RESPONSIBILITY TRADE ASSOCIATIONS with local >230 communities students involved in meetings on sustainability and orientation issues 10 students accepted for internships and school-to-work projects MAIN COLLABORATIONS
Slide 40: Sustainable products
FINE FOODS H1 2023 BACK UP – ESG DETAILS 40 RESULTS PRESENTATION OUR SERVICES Sustainable products Environmental labelling Product carbon footprint calculation Product eco- design Support and service to consultation support support develop products that provide environmental, social and economic ben
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