Frigoglass S.a.i.c. · ATHEX:FRIGO

Frigoglass S.a.i.c — Frigoglass — Q2 2016 Earnings Presentation

17 slides from Frigoglass S.a.i.c's earnings presentation, Aug 4, 2016

  1. Slide 1: Results Presentation

    Results Presentation Second quarter 2016 results Nikos Mamoulis │Chief Executive Officer Manolis Fafalios │Chief Financial Officer 4 August 2016

  2. Slide 2: Second quarter highlights

    Second quarter highlights  Lower y-o-y Cool sales – Sustained weak environment in Russia – Continued recovery in Western Europe through ICOOL  Cool EBITDA margin up 100bps y-o-y – Favorable geographic sales mix – Service business performance  Glass business impacted by Nigeria’s Naira devaluation

  3. Slide 3: Ongoing challenges in Russia impacted Cool sales

    Ongoing challenges in Russia impacted Cool sales 2Q Cool sales by region (in €m) Beer industry challenges and weak macroeconomic conditions in Russia impacted -24% sales in Eastern Europe 50 Continued recovery in Western Europe through 38 sustained momentum of ICOOL among Coca-Cola +14% +27% -1% bot

  4. Slide 4: Significantly lower sales to brewery customers in Russia

    Significantly lower sales to brewery customers in Russia 2Q Cool sales by customer group (in €m) Continued growth momentum with Coca-Cola +8% bottlers 71 65 Lower cooler investments from breweries, mainly in Russia -31% 29 -15% 20 18 15 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 Coca-Cola Breweries Other Bottler

  5. Slide 5: Naira’s devaluation impacted Glass business

    Naira’s devaluation impacted Glass business 2Q Glass Sales (in €m) 2Q Glass EBITDA (in €m) 28 25 25 8  Naira devaluation  Lower sales in Plastic 5 Crates 9 8 2Q16 2Q16 2Q15 2Q16 2Q15 2Q16 2Q15 FX-Neutral 15.0% 22.3% EBITDA margin, % Nigeria FJA Glass Second quarter 2016 results 5 4 August 2016

  6. Slide 6: Manufacturing base rationalization in Asia

    Manufacturing base rationalization in Asia India  Closure of manufacturing operations in China by end of 3Q16  Production volume consolidation in India and Indonesia  Commercial and customer service Indonesia activities maintained  Enabler for: – Capacity optimization – Fixed cost structure impr

  7. Slide 7: Financial review

    Financial review Second quarter 2016 results 7 4 August 2016

  8. Slide 8: Financial performance overview

    Financial performance overview Group (in €m) 2Q16 2Q15 Change, % Weak macroeconomic Sales 137.8 145.2 -5.1% environment in Russia EBITDA 17.3 19.6 -11.4% EBITDA margin decline due to EBITDA margin 12.6% 13.5% -0.9pp Naira devaluation, impacting Net Profit -16.8 0.0 n.m. Nigerian Glass business Adj.

  9. Slide 9: 2Q segmental performance overview

    2Q segmental performance overview Cool Operations (in €m) 2Q16 2Q15 Change, % Cool Operations Sales 105.0 111.2 -5.6% Weak sales to breweries in EBITDA 12.4 12.0 3.6% Russia EBITDA margin 11.8% 10.8% 1.0pp EBITDA margin improvement: Net Profit -23.2 -1.2 n.m. - Geographic sales mix Adj. Net Profit -

  10. Slide 10: 1H segmental performance overview

    1H segmental performance overview Cool Operations (in €m) 1H16 1H15 Change, % Cool Operations Sales 181.3 197.7 -8.3% EBITDA margin marginally EBITDA 18.5 20.1 -7.8% higher y-o-y, despite sales reduction EBITDA margin 10.2% 10.1% 0.1pp Net Profit -30.1 -4.0 n.m. Adj. Net Profit -13.8 -4.0 n.m. Glass

  11. Slide 11: 20bps operating expenses over sales improvement in 2Q

    20bps operating expenses over sales improvement in 2Q Gross Profit (in €m) 56 1H16 gross margin marginally 51 better than 1H15 due to Cool 33 business improvement 29 2Q16 2Q15 1H16 1H15 21.0% 22.5% 21.1% 21.0% Gross margin, % Operating Expenses (in €m) 25 Lower administration 24 expenses and cost ef

  12. Slide 12: Restructuring costs

    Restructuring costs  €11.4m restructuring cost in 2Q16 – Impairment of machinery and buildings – Severance and other expenses  Estimated cash cost of approx. €2.5m  Expected annualized cost savings of approx. €2.0m – Elimination of fixed production cost – Operating expenses reduction Second quart

  13. Slide 13: Net Debt at €320m, +13% y-o-y

    Net Debt at €320m, +13% y-o-y €10m repayment and 380 60 cancellation of RCFs’ principal Term Loan 20 amount RCFs 38 320 €20m draw down of Boval SA ST Loans 75 (“Term Loan”) Bond 247 June 2016 June 2016 June 2016 Gross Debt Cash Net Debt 13

  14. Slide 14: Business Outlook

    Business Outlook Second quarter 2016 results 14 4 August 2016

  15. Slide 15: Business Outlook

    Business Outlook  Sustained challenges in Russia  Service business expansion  Uncertainty regarding Naira devaluation  Successful execution of China closure and volume integration  Conclude capital structure review Second quarter 2016 results 15 4 August 2016

  16. Slide 16: Q&A

    Q&A 16

  17. Slide 17: Forward-looking statements

    For further information on Frigoglass, please visit our website at: www.frigoglass.com or contact: John Stamatakos Investor Relations Manager jstamatakos@frigoglass.com +30 210 61 65 767 Forward-looking statements This presentation contains forward-looking statements which are based on current expec

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