Italian Wine Brands S.p.a. · MIL:IWB
Italian Wine Brands — H1 2024 Earnings Presentation
52 slides from Italian Wine Brands's earnings presentation, Sep 16, 2024
Slide 1: 2024 HY Results
2024 HY RESULTS Milan, September 16 th 2024
Slide 2: Our brand everywhere making customers happy and us too
Our brand everywhere making customers happy and us too.
Slide 3: 3
3
Slide 4: Our Team
4 Our Team Presenting Today ALESSANDRO MUTINELLI GABRIELLA FABOT TI Chairman & CEO CFO & IR
Slide 5: Agenda
5 1 The business in numbers 1.1 IWB at a glance 1.2 First Half 2024 Results 1.3 Business Numbers 2 How the market cap has moved 2.1 M&A Journey and Value Creation Path 2 . 2 S h a r e s V a l u e & E v a l u at io n v s P e e r s 2.3 Share Value & Market cap AGENDA 2 . 4 C o n s e n s us 2 . 5 G o v
Slide 6: The business in numbers
6 01 The business in numbers 1.1 IWB at a glance 1.2 First Half 2024 Results 1.3 Business Numbers 1.4 IWB M&A journey
Slide 7: 1.1 IWB at a glance
1.1 IWB at a glance 7 This is 70+ 430 80 Italian Wine Brands TOTAL EXPORT BUSINESS in numbers TURNOVER: 430 mln euros IN THE WORLD: over 80% MODEL: Over 70 Owned Brands, Private Labels We have a light asset model, not owning the land, but taking care of the key points of the value chain: winemaking,
Slide 8: 1.2 First Half 2024 Results
1.2 First Half 2024 Results THE GROUP EXCEEDS THE MARKET'S ECONOMIC AND FINANCIAL ESTIMATES DOUBLE-DIGIT INCREASE IN ALL PROFITABILITY INDICATORS NET INCOME DOUBLES CASH GENERATION EQUAL TO EURO 46.1 MILLION FCF YIELD(0) HIGHER THAN 20% IN THE 12 MONTHS TO JUNE 30, 2024
Slide 9: 1.3 Business Numbers
1.3 Business Numbers 9 EBITDA (€m) Revenues (€m) 25 11,9% 11,5% 13% 250 11,6% 10,4% 11% 20 9,1% 8,7% 8,8% 200 8,0% 9% 15 6,2% 150 7% 21,9 5% 100 10 196,8 191,2 177,3 17,3 14,2 3% 10,7 11,8 50 92,2 99,5 5 64,6 69,0 69,9 70,1 6,3 6,1 7,3 1% 4,0 0 0 -1% H1 2016 H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H
Slide 10: How the market cap has moved
10 02 How the market cap has moved 2.1 M&A Journey and Value Creation Path 2.2 Shares Value & Evaluation vs Peers 2.3 Share Value & Market cap 2.4 Consensus 2.5 Governance & Shareholder structure
Slide 11: 2.1 M&A Journey and Value Creation path
2.1 M&A Journey and Value Creation path 11 BUSINESS EVOLUTION • Integration of acquisitions to maximize synergies and • 1° ever Italian company to • Exploiting value, volumes • Strong market and • Aim to create a unique simplify the business be listed with the aim of and margins from the resilience
Slide 12: 2.2 Shares Value
2.2 Shares Value 12 vs Peers Vs EGM Index 2015 M&A track record source
Slide 13: 2.3 Evaluation vs peers
2.3 Evaluation vs peers 13 Market CAP EV EV/Ebitda (x) COMPANY Country Eur Mil Eur Mil 2024 E 2025 E 168 207 315 285 6,3x 5,8x 5.318 6.361 11,7x 10,3x 917 1.205 8,1x 6,9x 734 747 7,6x 7,2x 733 1.206 8.9x 8,2x 2015 272 776 13,3x 12,6x 160 195 16,3x 13,5x 142 816 15x 14,3x M&A track record 126 263 5,3
Slide 14: 2.3 Shares Value & Market Cap
2.3 Shares Value & Market Cap 14 2015 M&A track record MARKET 60 55 72 88 94 154 365 260 180 207 mil mil mil mil mil mil mil mil mil mil CAPITALISATION source
Slide 15: 2.4 Consensus
2.4 Consensus 15 Broker Analyst Target Recommendation Status Quo Price Banca Akros Andrea Bonfà 28 eur BUY andrea.bonfa@bancaakros.it 4 brokers currently cover IWB CFO SIM Gianluca Mozzali 33 eur BUY gianluca.mozzali@cfosim.com Mickael Daponte all have BUY recommendation IT ICAP mickael.daponte@tpic
Slide 16: 2.6 Governance & Shareholder structure
2.6 Governance & Shareholder structure 16 Shareholders' 5,71% Board of Directors 14,80% 7,10% 72,39% Free float Provinco srl Gruppo Pizzolo Otus Capital Giorgio Pizzolo Alessandro Mutinelli Sofia Barbanera
Slide 17: IWB reshaped the wine Industry in Italy
17 03 IWB reshaped the wine Industry in Italy
Slide 18: IWB reshaped the wine industry in Italy
18 In an extremely fragmented market characterized by thousands of small businesses, IWB was the first winery to be listed on the stock exchange in Italy in 0 2015, with the aim of consolidating the sector and expanding competitively across all markets. IWB We achieved the target to become the large
Slide 19: We are asset light and we focus on cash generation
19 IWB has no agricultural investments, which are capital intensive, have too low profitability, are subject to climate 0 change, and do not allow flexibility in terms of production based on market demands. WE ARE ASSET LIGHT THE VALUE CHAIN: AND WE FOCUS ON 3 Vinification, Sales, Agricultural blend
Slide 20: We are market driven
20 We don't produce anything that isn't already sold! It's a reversed approach compared to agricultural producers, who first produce and then seek customers. 0 We can do that, because we have no investments in vineyards, and we offer to our customers what they love to buy, keeping low inventories, h
Slide 21: Scale, efficiency, power
21 We are the largest private producer of Italy, we run three state of the art and highly efficient, conveniently located facilities. 0 SCALE, EFFICIENCY, THE IWB COMPETITIVE FACTORS RAW MATERIAL SOURCING HIGHLY COMPETITIVE PRODUCTION LARGEST PORTFOLIO OF BRAND BUILDING STRONG SALES 3 POWER ITALIAN
Slide 22: Our team: Italian wine people
22 The strength of IWB lies in a highly qualified team. 350 motivated employees are committed to delivering 700,000 bottles worldwide every 0 single day. IWB KEY PEOPLE OUR TEAM: ITALIAN > 20 > 30 > 40 QUALITY CONTROLS KEY ACCOUNT WINE 3 WINEMAKERS EMPLOYEES MANAGERS PEOPLE IWB CORE COMPETENCE Growi
Slide 23: Sustainability
SUSTAINABILITY 23 ISO 14001:2015 – July, 2 nd 2024 For the following activities Development, processing, production and bottling of wines and wine products. Storage and delivery. We look ahead and innovate to keep up with the times. VIVA Certification Everyone is responsible for ▪ Air indicator seiz
Slide 24: 2024 Half Year Results
24 04 2024 Half Year Results
Slide 25: 2024 HY Financial achievements
25 HIGHER PROFITABILITY AND OUTSTANDING 0 CASH GENERATION STABLE OUTSTANDING REVENUES CASH GENERATION 2024 HY Eur 192,2 m Revenues +46,1 m Financial 4 Slight below vs HY 2023 Vs NFP HY 2023 achievements SOUND & INCREASED IMPROVED PROFITABILITY NET RESULT Eur 21,9 m Eur 9,1 m Eb i t d a Ad j u s t e
Slide 26: 4.1 Financial Highlights
26 4.1 Financial Highlights NET SALES – KEY HIGHLIGHTS WHOLESALE + Better Mix: Top Brands +9,2% • +29% Italy; +12,8% US;+7,4%Switzerland. • - 19% Germany; -18%UK. 196,3 191,1 DISTANCE SELLING 100% • WEB Revenues increase higher than market 90% 27,0 27,6 trends 80% 29,2 28,1 70% 60% • Low performance
Slide 27: 4.1 Financial Highlights
27 4.1 Financial Highlights ITALY & EUROPE REVENUES BY AREA • High performance in Italy: +15% 2% 10% •Strong presence in key markets (UK DE/CH/). 19% • Increasing revenues in strategic & high potential markets: East Europe +17%) AMERICAS 68% • IWB’s own distributor in NA.+7,3% (+10% in Italy Europe
Slide 28: 4.3 Distance Selling channel mix trend
28 4.3 Distance Selling channel mix trend NET SALES – GROWTH PATH 1°Half 2017 1° Half 2024 8% 33% 47% 51% 41% 20% Direct Mailing Teleselling Digital/Web Direct Mailing Teleselling Digital/Web The share of digital sales is constantly growing. Positive Ebitda Margin in a high competitive market. Sourc
Slide 29: 4.4 Financial Highlights
29 4.4 Financial Highlights NET REVENUE – EBITDA MARGIN 8,8% EBITDA margin 11,5% EBITDA margin 1HY2023 1HY2024 250,0 200,0 196,8 191,2 150,0 100,0 50,0 17,3 21,9 0,0 Revenues EBITDA Source:
Slide 30: 4.4 Financial Highlights: Cost structure
30 4.4 Financial Highlights COST STRUCTURE RAW MATERIAL SERVICES PERSONNEL 65% 67,3% 16,5% 17,5 6,8% 6,3% 34,6 13,1 133,5 31,9 12,5 125,4 67,6% 67,2% 17,9% 16,4% 5,6% 5,8% 1° Half 23 1° Half 24 1° Half 23 1° Half 24 1° Half 23 1° Half 24 • Mix improvements; dry products • 0,4 mil utilities. • Increa
Slide 31: 4.4 Financial Highlights: EBITDA increase
31 4.4 Financial Highlights EBITDA INCREASE EBITDA INCREASE DUE TO: • Price increase.still effective 25,0 • Better product mix. • Dry products cost reduction. • Utility and operative costs efficiency. 20,0 21,9 15,0 17,3 WE SEE: 10,0 • Better customer mix. • Glass cost reduction double digit. • Sola
Slide 32: 4.4 Financial Highlights
32 4.4 Financial Highlights 20 21,9 6,3 18 +98% vs 16 1,6 1H° 23 14 14,0 1,7 12 12,3 3,2 10 8 9,1 1HY2024 6 4 2 0 Ebitda 2024 Depr. Amort. & Non Recurring EBIT 2022 Net Fin. Inc / (Costs) EBT 2022 Taxes Net Result 2024 Provisions 20 18 16 17,3 14 6,3 12 10 1,0 8 9,9 3,6 1HY2023 6 6,2 1,6 4 4,6 2 0 E
Slide 33: 4.4 NFP walking & Free cash flows yield
33 4.4 NPF walking & Free cash flows yield +11,4 mil Free Cash Flow FCF Yield Ltm> 20% 1HF2024 - 8,2 mil Free Cash Flow 1HY2023 Source:
Slide 34: 4.4 Net financial position trend
34 4.4 Financial Highlights NET FINANCIAL POSITION TREND 156,4 mil 154,2 mil 108,1 mil LEVERAGE 3,54 LEVERAGE 3,83 LEVERAGE 2,21 180,0 160,0 7,4 4,5 140,0 12,2 15,7 120,0 1,4 100,0 14,5 80,0 136,8 134,1 60,0 92,1 40,0 20,0 - H1 2022 H1 2023 H1 2024 Net Debt (€m) IFRS 16 (€m) Def Price (€m) 46,1 mil
Slide 35: How do we intend to increase value creation?
35 05 How do we intend to increase value creation?
Slide 36: A) Global export wine market expected to grow
5 36 How do we intend to increase value creation? A) The global export wine market is expected to grow and Italy and IWB are leading exporters EXPORT WINE The value of the International MARKET VALUE wine trade is 37 B € (of which (€ Billions) France 12 B €, and Italy 7,7 B €) Source Ismea – mod. And
Slide 37: B) IWB is in the right product categories
5 37 How do we intend to increase value creation? B) IWB is in the right product categories, which are expected to grow the most Sparkling and Premium wine is forecasted 11% Sparkling/Prosecco to become a >$100bn market by 2025, 5,0% IWB FOCUS 1 and we intend to be leaders globally 3,5% • Sparkling/
Slide 38: C) We will focus on USA and Emerging Markets
5 38 How do we intend to increase value creation? C) We will focus on USA and Emerging Markets A selected number of markets matter most in the premium and luxury segment • Global premium and luxury wine segment sales totaled $60bn in 2020, with US being the predominant market Largest premium and lux
Slide 39: D) Improve Net Financial Position and selected M&A
5 39 How do we intend to increase value creation? D) We will improve our Net Financial Position and exploit new selected M&A activities We have a historic high cash generation, which allows us to improve consistently our net financial position. For example, as of 31.12.23, this reduction in NFP has
Slide 40: What's Next
40 ° = cc] ro 9 Dnt CONCONE TOSGANA What’s Next
Slide 41: Value Growth
6 41 Value Growth SYNERGIES AI M&A TARGET Commercial Synergies: Data Analysis and Business Premium price products. at least 1% increased Value Opportunities Identification. Accellerate products’ distribution added US margin 50% higher. Customer Engagement Increase. into international markets. Indust
Slide 42: Conclusion and Q&A
42 07 Conclusion and Q&A Appendix Follow us: rirowines.com
Slide 43: 7.1 Financials: Net Sales – Wholesale
43 7.1 Financials NET SALES – WHOLESALE Eur Millions 1H2016 1H2017 1H2018 1H2019 1H2020 1H2021 1H2022 1H2023 1H2024 ∆ % 23/24 Cagr 16/24 Wholesale - Italy 0,0 0,0 0,7 1,5 2,6 3,2 19,5 18,6 24,2 29,9% N/A Wholesale - International 25,3 30,4 34,5 35,8 48,0 53,3 106,3 121,5 111,2 (8,5%) 20,3% UK 1,4 2,
Slide 44: 7.1 Financials: Net Sales – Ho.re.ca
44 7.1 Financials NET SALES – HO.RE.CA Eur Millions 1H2022 1H2023 1H2024 ∆ % 23/24 Cagr 16/24 Ho.re.ca - Italy 0,2 1,5 1,0 (32,6%) N/A Ho.re.ca - International 17,7 25,4 26,6 4,5% N/A UK 12,0 12,4 15,1 21,3% N/A Switzerland 0,0 0,2 0,3 68,0% N/A Germany 0,6 1,6 1,4 (10,5%) N/A Belgium 0,0 0,1 0,2 15
Slide 45: 7.1 Financials: Net Sales – Distance Selling
45 7.1 Financials NET SALES – DISTANCE SELLING Eur Millions 1H2017 1H2018 1H2019 1H2020 1H2021 1H2022 1H2023 1H2024 ∆ % 23/24 Cagr 17/24 Distance selling Italy 18,0 15,1 13,9 16,8 16,4 13,0 11,2 11,0 (1,3%) (6,7%) Direct Mailing 7,3 7,0 6,5 7,6 7,6 5,8 4,4 4,3 (3,5%) (7,5%) Teleselling 9,5 6,4 5,6 4
Slide 46: 7.1 Financials: Extended P&L 2016-2024
46 7.1 Financials EXTENDED PL 2016-2024 Restated Restated Restated Restated Restated Restated Restated Restated Restated Eur/000 30.06.2016 30.06.2017 30.06.2018 30.06.2019 30.06.2020 30.06.2021 30.06.2022 30.06.2023 30.06.2024 Net Sales 64.586 68.989 69.940 70.073 92.158 99.501 177.266 196.778 191.
Slide 47: 7.1 Financials: Extended BS 2016-2024
47 7.1 Financials EXTENDED BS 2016-2024 (migliaia di Euro) Eur/000 30.06.2016 30.06.2017 30.06.2018 30.06.2019 30.06.2020 30.06.202130.06.2021PF 30.06.2022 30.06.2022 30.06.2023 30.06.2024 Intangibles & Goodwill net of tax 75.081 76.074 78.039 78.765 93.687 95.135 211.251 227.058 227.058 248.013 246
Slide 48: 7.1 Financials: Extended Cash Flow 2016-2024
48 7.1 Financials EXTENDED CASH FLOW 2016-2024 Eur/000 30.06.2016 30.06.2017 30.06.2018 30.06.2019 30.06.2020 30.06.2021 30.06.2022 30.06.2023 30.06.2024 Ebitda reported 3.150 6.301 5.328 6.670 10.151 11.640 13.849 16.224 20.309 +(-) changes in NWC (4.406) (5.686) (5.471) (7.162) (5.292) (4.779) (17
Slide 49: Conclusion
49 Conclusion 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 th
Slide 50: 1.3 Cash Flow Generation
1.3 Cash Flow Generation 50 100.000 105% 110% 90% 80.000 67% 70% 58% 60.000 50% 42.926 40.000 18% 30% 17% 14% 10% 20.000 7.226 8.871 -15% 7.029 6.314 3.460 -24% -10% 0 -30% -2.236 -6.093 -20.000 -50% H1 2017 H1 2018 H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 H1 2024 Cash Generation Excluding Dividend a
Slide 51: 1.4 IWB M&A journey
1.4 IWB M&A journey 51 Provinco Italia, founded in Barbanera is based in 1970, had become leader Tuscany and was founded in the production and Enoitalia founded in 1986, had in 1938. It had been export of wine to Italian online shop grown significantly over the years producing wines with internation
Slide 52: Thank You
Thank You Italianwinebrands.it