Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — FY2023 Earnings Presentation
31 slides from Italian Wine Brands's earnings presentation, May 22, 2024
Slide 1: 2023 FY Results
2023 FY RESULTS London, May 22nd 2024
Slide 2: Our Team - Presenting Today
OUR TEAM Presenting Today Alessandro Mutinelli Gabriella Fabotti Chairman & CEO CFO & IR
Slide 3: 1° Listed Italian Wine Group
1° Listed Italian Wine Group Our brand everywhere, Making customers happy and us too 3
Slide 4: This is Italian Wine Brands in numbers
This is Italian Wine Brands in numbers 430 80 70+ 90/5 170 200+ Business model: Destinations around Award Winning Export in the Total turnover: Over 70 the World: Total bottles sold: portfolio: World: 430 mln euros Owned Brands, 90 countries 170 mln Over 200 wines over 80% Private Labels 5 continent
Slide 5: IWB M&A journey
IWB M&A journey Provinco Italia, founded in 1970, had Enoitalia founded in 1986, had Barbanera is based in Tuscany, was become leader in the production and grown significantly over the years to founded in 1938, producing wines with Italian online shop with a export of wine to international become th
Slide 6: One Company
One Company IWB 2023 IWB 2024 Italian Wine Brands S.p.A. Italian Wine Brands S.p.A. Giordano Vini S.p.A. Pro.di.ve S.r.l. 100% 100% Giordano B2C Enoitalia S.p.A. 100% Enovation Brands Inc Raphael 85% IWB Italia Provinco Deutschland Dal Bo AG GmbH Provinco Italia 100% Spa 100% Raphael Dal Bo AG Enova
Slide 7: 2023 Outstanding Financial Achievements
2023 Outstanding Financial Achievements Higher profitability and outstanding cash generation STABLE OUSTANDING REVENUES CASH GENERATION Eur 429,1 m + 30,6 m Revenues In line vs FY 2022 Vs PFN 2022 SOUND & IMPROVED INCREASED PROFITABILITY NET RESULT Eur 44,3 m Eur 18,9 m Ebitda Adjusted Net Result Ad
Slide 8: Quality, Innovation and Entrepreneurship - Awards
Q u a l i t y, I n n o vat i o n a n d E nt re p re n e u rs h i p Awards Sakura Wine Awards 2024: Grande Alberone Luxorius, Grande Alberone Moscato Dolce Best Producer "Still wine“ Italy - Provinco Italia, SpA 8
Slide 9: ESG
ES G We look ahead and innovate to keep up with the times. Everyone is responsible for seizing VIVA Certification opportunities, solving ❖ Air indicator problems quickly and ❖ Water indicator making things happen. ❖ Territory indicator RECYCLING SOLAR PLANT 100% wastes 80% ❖ 1.466 CO2 tons 19.058 Tr
Slide 10: Italian Wine Brands confirms 2023 growth on international markets
ITALIAN WINE BRANDS CONFIRMS 2023 GROWTH ON INTERNATIONAL MARKETS (+1.73%) AND IN THE WHOLESALE CHANNEL (+2.76%) WITH CONSOLIDATED BUSINESS SALES OF EURO 429,1 million IN LINE WITH 2022 10
Slide 11: Revenues Highlights - Net Sales Key Highlights
Re ve n u e s H i g h l i g ht s Net Sales – Key Highlights + Stable Revenues despite market decrease Wholsale 430,3 429,1 ▪ +2,7% despite market ▪ +26% Revenues «Other» Countries 500,0 450,0 Distance Selling 400,0 56,9 54,8 Ho.re.ca ▪ Channel «to be present »: 350,0 68,5 62,3 Distance selling creat
Slide 12: Revenues Highlights - Net Sales Growth path
Re ve n u e s H i g h l i g ht s Net Sales – Growth path + 9,8% YoY Wholsale ▪ Revenues about X3 since 2020 390,7 429,1 ▪ Worldwide presence 80 Countries driver to 500,0 additional Growth 450,0 400,0 54,8 Ho.re.ca: +31,4% Distance Selling 41,7 350,0 62,3 Distance selling: -9,1% ▪ Channel «to be pres
Slide 13: Revenues Highlights - Revenues by Area and Channel
Re ve n u e s H i g h l i g ht s Revenues by Area Italy & Europe 9% 2% ▪ Strong presence in key Asia Oceania markets (UK DE/CH/) North America 16% Italy ▪ Increasing revenues in strategic & high potential markets (i.e East Europe 73% +25%) Europe Americas ▪ IWB’s own distributor in NA Revenues by Ch
Slide 14: Financial Highlights - Net Revenue and EBITDA Margin
Financial Highlights 3 Net Revenue – Ebitda Margin Ebitda increase due to : 500,0 ❖ Price increase 450,0 430,3 429,1 ❖ Better product mix 400,0 ❖ Dry products cost reduction 350,0 ❖ Utility and operative costs efficiency 300,0 250,0 We see: 200,0 8,6% 10,3 % ❖ Better customer mix 150,0 100,0 ❖ Glass
Slide 15: Cash Generation & Free Cash Flows Yield
Cash Generation & Free Cash Flows Yield 3 +33,7 mil Free Cash Flow 44,3 3,4 -3,4 94,7 -7,6 -3,1 2023 -7,8 71,2 0.0 70,9 61,0 -15,7 -0,3 FCF Yield > 17% +18,1 mil Free Cash Flow 37,2 -1,3 15,8 87,4 -4,2 77,2 -9,9 -3,7 2022 59,1 -5,6 -22,5 -3,8 61,0 15
Slide 16: Financial Highlights - Net Financial Position trend
Financial Highlights 3 Net Financial Position trend 146,5 mil 121,2 mil 115,9 mil 140 7,6 0 17,2 120 13,3 4,4 100 15,1 80 60 121,9 107,9 96,3 40 20 0 2021 2022 2023 Net Debt IFRS 16 Def Price LEVERAGE 2,9 3,94 2,62 ➢ 30,6 mil Cash Generation ➢ 2022 M&A «paid» in less than one year 16
Slide 17: What's Next?
W ITALIAN WINE BRANDS Creatori di Eccellence WHAT’S NEXT ?
Slide 18: Value Growth
VA LU E G ROW T H ▪ Commercial Synergies: at least 1% increased Value added US margin 50% higher SYNERGIES ▪ Industrial Synergies: 1 mil lower utility 2 mil efficiency for B2C business ▪ Financial Synergies: 0,5/1 mil lower G&A 25/30 mil average lower debt ▪ Premium price products M&A target ▪ Accel
Slide 19: IWB as an opportunity
W ITALIAN WINE BRANDS Creatori di Eccellence IWB as an opportunity
Slide 20: Value creation path
Value creation path EBITDA HYSTORICAL INCREASE 47,0 44,3 41,8 42,0 37,2 37,0 32,0 27,0 25,6 22,0 18,1 17,0 16,0 14,6 11,3 12,0 7,0 2,0 -3,0 31/12/16 31/12/17 31/12/18 31/12/19 31/12/20 31/12/21 31/12/22 31/12/23 Values in millions of euro OUTSTANDING AND CONTINUOS EBITDA INCREASE AND CASH GENERATION
Slide 21: There is room for improvement?
IWB & Peers Price & EV multiples x PER FY1 (2024) Concha y Toro Winery Inc 12,7 Lanson BCC SA 9,1 Laurent Perrier SA 12,5 Masi Agricola SpA 69,7 Schloss Wachenheim AG 11,5 Treasury Wine Estates Ltd 22,6 Vranken Pommery Monopole SA 16,7 Wine producers median 12,7 Hawesko Holding SE 13,1 Naked Wines P
Slide 22: Conclusion and Q&A
Conclusion and Q&A Thank you for your attention! Italian Wine Brands S.p.A. | www.italianwinebrands.it | info@italianwinebrands.it
Slide 23: Appendix
VY ITALIAN WINE BRANDS Creatori dé Eccellence Appendix
Slide 24: We present at IWB stand
en , ITALIAN WINE BRANDS Creatori dé Eccellence
Slide 25: Financials - Net Sales Wholesale
Financials 5 Net Sales – Wholesale 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 16/23 Wholesale - Italy 0,0 0,0 2,5 3,6 5,5 42,6 43,4 40,1 (7,76%) NA Wholesale - International 60,1 69,0 74,7 84,0 114,1 256,8 260,0 271,8 4,52% 24,06% UK 1,1 5,1 9,7 13,2 14,7 72,5 64,5 71,2 10,31% 81,42%
Slide 26: Financials - Net Sales Ho.Re.Ca
Financials 5 Net Sales – Ho.Re.Ca Eur Millions 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 16/23 Ho.re.ca. - Italy 0,3 2,4 2,9 19,60% NA Ho.re.ca. - International 25,7 54,5 51,9 (4,68%) NA UK 16,5 27,4 27,9 1,80% NA USA 3,9 10,2 8,8 (14,11%) NA Germany 1,0 3,3 3,8 14,83% NA Canada 1,6
Slide 27: Financials - Net Sales Distance Selling
Financials 5 Net Sales – Distance Selling Eur Millions 2016 2017 2018 2019 2020 2021PF 2022PF 2023 Δ % 22/23 Cagr 17/23 Distance selling Italy 41,0 37,3 31,4 29,7 34,0 32,8 27,7 24,4 (11,69%) (6,80%) Direct Mailing 18,1 16,3 14,8 14,1 16,1 15,4 12,3 9,9 (19,37%) (7,98%) Teleselling 20,6 17,8 12,7 11
Slide 28: Financials - Extended PL 2016-2023
Financials 5 Extended PL 2016-2023 (migliaia di Euro) Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Net Sales 145.937 149.736 149.863 157.494 204.311 408.934 430.312 429.127
Slide 29: Financials - Extended BS 2016-2023
Financials 5 Extended BS 2016-2023 (migliaia di Euro) Eur/000 31.12.2016 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Intangibles & Goodwill net of tax reserves 75.890 76.656 78.385 79.424 94.288 208.620 245.899 247.952 Tangibles 15.526 14.232 14.736 14.539 15.104
Slide 30: Financials - Extended Cash Flow 2016-2023
Financials 5 Extended Cash Flow 2016-2023 Eur/000 31.12.2017 31.12.2018 31.12.2019 31.12.2020 31.12.2021PF 31.12.2022PF 31.12.2023 Ebitda reported 14.158 13.422 16.304 23.604 38.809 35.871 40.962 +(-) changes in NWC 1.206 (2.186) (1.686) 440 (13.487) (4.346) 3.220 + (-) Funds (622) (808) (82) (763)
Slide 31: Disclaimer
Disclaimer This document has been prepared by IWB SpA (“IWB SpA” or the “Company”) solely for this presentation and does not represent any investment research, recommendation, consulting or suggestion, concerning the Company or its shares or any other securities/financial instruments issued by the C