Papoutsanis Sa · ATHEX:PAP
Papoutsanis Sa — Investor Presentation (January 2024)
41 slides from Papoutsanis Sa's investor presentation, Jan 25, 2024
Slide 1: Hellenic Fund & Asset Management Association
Hellenic Fund & Asset Management Association January 25th, 2024
Slide 2: Disclaimer
Disclaimer BY VIEWING OR RECEIVING THIS PRESENTATION, YOU ARE AGREEING TO BE BOUND BY THE FOLLOWING LIMITATIONS. This presentation has been prepared by Papoutsanis S.A. (the Company) solely for informational purposes and cannot be used for any other purpose nor can it be addressed to any other perso
Slide 3: Papoutsanis at a Glance
Papoutsanis at a Glance TURNOVER x2,5 in the last 5 YRS €62,3M 55% 19% 71 62 55 2023 NET SALES ΕXPORTS % IN TOTAL 5 YEAR CAGR 41 31 #1 50% 24 21 SOAP MANUFACTURER SPARE CAPACITY IN EUROPE CAN DOUBLE TURNOVER AS IS 2017 2018 2019 2020 2021 2022 2023 Papoutsanis Financial Statements, FY 2017-2023
Slide 4: 2023 Highlights
2023 Highlights ARKADI full Merger 1/1/23 OWN BRANDS Strong Growth ECOVADIS Certification Important New PARTNERSHIP HOMECARE production in-house IFS HPC Certification
Slide 5: Who We Are
AN PAPOUTSANIS SINCE 1870
Slide 6: 154 Years of Uninterrupted Presence
1967 154 Years of Operations transferred to Kifissia. The company expands into new Uninterrupted business units and enters the Athens Stock Exchange in 1972. Presence In 2001 operations move to Ritsona. 1870 2010 Company is founded in New management buy-out and Plomari, Lesvos business turnaround. b
Slide 7: Four Inter-related Business Segments
Own Brands Hotel Amenities 3rd Party & PL Specialty Bases Four Inter-related Business Segments Third Party Production represents 40% of 2023 turnover, followed by Our Own Consumer Brands (27%), Hotel Amenities (17%) and Specialty Soap Bases (16%) FY 2023
Slide 8: The Papoutsanis World
The Papoutsanis World 44% 6% EUROPE 45% 5% N.AMERICA GREECE ASIA France, Italy, UK, Spain, Germany, Hungary, Portugal, Poland, Cyprus, Belgium, The Netherlands, Austria, Sweden, Denmark, Finland, Switzerland, Ireland, Serbia, Romania, Bulgaria, Lithuania, Ukraine, Czech Republic, Croatia, Slovenia,
Slide 9: Customers & Partners
Customers & Partners HOTEL AMENITIE S THIRD PARTY PRODUCTION SPECIALTY SOAP BASES
Slide 10: A state-of-the-art plant
A state-of-the-art plant 220 million Units/year | 200 Employees | 2.000 Customers 20.000 m2 fully integrated production plant Continuous & batch saponification| All types of bar soap/ Syndet Liquid Cosmetics, Sanitizers and Homecare filling lines PET, PE Bottles & PP Closing Cups
Slide 11: Our Certifications
f Our Certifications PAPOUTSANIS SINCE 1870 We is *e IFS 150003 | ar 1$0 22716 HPC g cosmos cosmos UL ORGANIC NATURAL <8 al ‘ > sy ro) a iN Ph ad £0 to wre” 2 2 > Z
Slide 12: Our Ambition
OUR AMBITION An iconic Greek corporation that leads sustainable innovation and financially solid growth. A reference for agility, consistency and resilience.
Slide 13: Strategic Imperatives
Strategic Imperatives 1 Aggressively drive own brands growth 2 Continue to build & diversify contract client base 3 Lead Sustainable Innovation in our industry 4 Attract & engage future-ready talent 5 Fuel a sustainable, profitable growth embracing value-adding change
Slide 14: Strategic Imperatives: Own Brands Performance
Strategic Imperatives Own Consumer & Hotel Brands Performance 1 Aggressively drive own brands growth +33% 35% YoY Turnover Growth 2023 Turnover Contribution 2 Continue to built & diversify (2023 vs 2022) in Total (+12pts) contract client base 3 Lead Sustainable Innovation in our industry 4 Attract &
Slide 15: Own Brands
28+ NEW LAUNCHES in 2023 OWN #1 in Hand Wash/ Sanitizers/ Baby BRANDS Detergent Fastest Growing in Bath & Shower 500M € MARKET size with the entry in 3 new categories
Slide 16: Strong Value Growth in all Categories
Strong Value Growth in all Categories +4,5 pts +230% +3,4 pts in Value Market Share in Value Market Share Value Growth #1 PLAYER FASTEST GROWING #1 PLAYER HAND WASH 22,2 BATH & SHOWER 5,7 SANITISERS 25,3 17,7 3 21,9 FY 2021 FY 2023 FY 2021 FY 2023 FY 2021 FY 2023 Nielsen scan track FY 2021- 2023, tt
Slide 17: Strategic Imperatives: Contract Customers
Strategic Imperatives 1 Aggressively drive own brands growth Contract Customers YoY Evolution 2 Continue to built & diversify 40% 10 CUSTOMERS contract client base TOP 5 - 2023 Turnover Make up 90% of contract Contribution in Total (-9pts) client turnover (5 in 2022) 3 Lead Sustainable Innovation in
Slide 18: Strategic Imperatives: Innovation Projects
Strategic Imperatives 1 Aggressively drive own brands growth 2 Continue to built & diversify 2023 Innovation Projects contract client base 3 Lead Sustainable Innovation 80 NEW 1 in 3 in our industry Formulations developed Sustainable & Eco-Certified by in-house R&D new products 4 Attract & engage fu
Slide 19: Plastic reduction
Now in 35 countries UPCYCLE & UPLIFT 92% plastic reduction Via Refillable dispensers along with pouch refills repurposed ESPRESSO grounds
Slide 20: Environmental Responsibility
Environmental Responsibility 37% 1in 3 ENERGY FROM CARTONS CASES RENEWABLE FROM RECYCLED SOURCES PAPER 7% -10% OF PACKAGING IN CO2 EMISSIONS MADE OF RECYCLED (SCOPE 1) PET 2022 Papoutsanis ESG Report
Slide 21: Strategic Imperatives: Supporting Future Professionals
Strategic Imperatives 1 Aggressively drive own brands growth 2 Continue to built & diversify contract client base 3 Lead Sustainable Innovation Supporting Future Professionals in our industry 4 Attract & engage future-ready 48% 8 INTERNSHIPS talent Employees with a 1 in 2 hired in higher education d
Slide 22: Engaging & Nurturing Talent
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Slide 23: Our People, our Most Valuable Asset
Βράβευση επιτυχόντων τέκνων στις Ασκήσεις ετοιμότητας εισαγωγικές στην τριτοβάθμια εκπαίδευση & ασφάλειας Κοπή της Πίττας & Kick Off INVOLVE & Εργασιακό Πρωτάθλημα ENGAGE Σχηματαρίου Ημέρες Καριέρας Our People, our Most Χριστουγεννιάτικη Εκπαίδευση Valuable Asset Παιδική Γιορτή πρώτων βοηθειών
Slide 24: Care for the Society
Care for the Society Our company consistently supports organizations to benefit children and youth in Greece. Moreover, in 2023: ▪ 85,000+ pieces of personal care products donated to those in need ▪ 20 families received sponsored summer vacation in collaboration with the non-profit organization «Φίλ
Slide 25: Strategic Imperatives
Strategic Imperatives 1 Aggressively drive own brands growth 2 Continue to built & diversify contract client base 3 Lead Sustainable Innovation in our industry 4 Attract & engage future-ready talent 5 Fuel a sustainable, profitable growth embracing value-adding change
Slide 26: Our Financials
OUR FINANCIALS
Slide 27: Key 2023 Macroeconomic Drivers
Key 2023 Macroeconomic Drivers ▪ Raw Materials' prices decline ▪ Reduced energy cost ▪ Overseas transportation cost improvement ▪ Inflation ▪ EURIBOR increase ▪ Consumer Buying power drop
Slide 28: Turnover & Gross Profit Evolution YTD Q3 2023
Turnover & Gross Profit Evolution YTD Q3 2023 (in €‘000) TURNOVER YTD Q3 -11% +39% +24% +38% 53.252 47.436 +23% +20% 30.842 38.240 ▪ Gross Profit improvement 22.400 15.217 18.239 attributed to: 2017 2018 2019 2020 2021 2022 2023 ▪ RM costs prices ▪ Energy cost GROSS PROFIT & GP% YTD Q3 33,5% 34,1% ▪
Slide 29: EBITDA & EBT Evolution YTD Q3 2023
EBITDA & EBT Evolution YTD Q3 2023 (in €‘000) EBITDA & EBITDA MARGIN% YTD Q3 21% 18% 15% 12% 12% 12% 11% 6.707 6.946 ▪ Turnover decrease did not result 6.481 6.540 in EBITDA decline, which is 2.100 2.766 1.647 improved by: 2017 2018 2019 2020 2021 2022 2023 0,4M in absolute numbers EBT & EBT MARGIN
Slide 30: 2023 FY Turnover
2023 FY Turnover (in €‘000) Turnover Growth 33% 34% 27% 29% Evolution per Category 17% ▪ Own Brands +36% -12% 70.749 ▪ Hotel Amenities -32% 54.769 62.300 ▪ 3rd Party & PL -11% ▪ Specialty Soap Bases -32% 40.842 30.667 24.241 20.775 2017 2018 2019 2020 2021 2022 2023
Slide 31: 2023 Sales Mix vs 2022
2023 Sales Mix vs 2022 (in % of total turnover) 2022 2023 SPECIALTY SOAP BASES 20 16 HOTEL AMENITIES 43 40 17 OWN CONSUMER BRANDS 19 THIRD PARTY & PL 18 27 Own brands Contribution Increase Drive
Slide 32: 2023 FY EBITDA & EBITDA Margin Estimate
2023 FY EBITDA & EBITDA MARGIN ESTIMATE (in €M) EBITDA 19% 15% 11% 12% 13% 15% 10% 9,0+ 8,4 7,7 7,4 3,8 2,9 2,3 2017 2018 2019 2020 2021 2022 2023E
Slide 33: 2024 Outlook
AN PAPOUTSANIS SINCE 1870 2024 OUTLOOK
Slide 34: 2024 Opportunities & Challenges
2024 Opportunities & Challenges ▪ Continuation of War in Ukraine ▪ New war in the Middle East ▪ Inflation/ Declining Consumer Disposable Income ▪ Volatility & Uncertainty ▪ Interest rates ▪ Political stability
Slide 35: 2024 Opportunities & Challenges
2024 Opportunities & Challenges ▪ Continuation of War in Ukraine ▪ Materials & energy pricing correction ▪ New war in the Middle East ▪ Further Production Cost Consolidation ▪ Hotel & Tourism upside ▪ Inflation/ Declining Consumer Disposable Income ▪ Exports expansion ▪ Volatility & Uncertainty ▪ En
Slide 36: Guidance for 2024
Guidance for 2024 €70M €5,5M 37% 0,03 TURNOVER TOTAL CAPEX OF CAPEX ON ENERGY SAVING & INTERIM DIVIDENT PAID IN 2023 TARGET (1M FOR SOLAR PANELS) SUSTAINABILTIY PROJECTS TOTAL TO EXCEED 2022 LEVELS PENETRATION NEW CATEGORIES GEOGRAPHICAL GROWTH & CHANNELS EXPANSION 12% TURNOVER GROWTH THROUGH Papout
Slide 37: Why Papoutsanis
Why Papoutsanis Own Brands ▪ Entry in sizable Homecare categories ▪ Strong innovation pipeline ▪ Sustainable-affordable & Greek portfolio positioning ▪ Significant growth space (domestic& exports) ▪ Multinationals divestment /exit
Slide 38: Why Papoutsanis
Why Papoutsanis Own Brands Hotel Amenities ▪ Entry in sizable ▪ Tourism upside in Homecare categories Greece ▪ Strong innovation ▪ Exports network pipeline expansion (35 ▪ Sustainable-affordable countries) & Greek portfolio ▪ Broad sustainable positioning portfolio choices ▪ Significant growth space
Slide 39: Why Papoutsanis
Why Papoutsanis Own Brands Hotel Amenities 3rd Party & PL ▪ Entry in sizable ▪ Tourism upside in ▪ Globally recognized Homecare categories Greece leader in industry ▪ Strong innovation ▪ Exports network ▪ Cutting-edge plant, pipeline expansion (35 vertically integrated ▪ Sustainable-affordable count
Slide 40: Why Papoutsanis
Why Papoutsanis Own Brands Hotel Amenities 3rd Party & PL Specialty Bases ▪ Entry in sizable ▪ Tourism upside in ▪ Globally recognized ▪ Largest soap producer Homecare categories Greece leader in industry in Europe ▪ Strong innovation ▪ Exports network ▪ Cutting-edge plant, ▪ Eco/ Certified Specialt
Slide 41: Thank you!
Thank you! Happy to answer any questions you may have