Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — H1 2021 Earnings Presentation
25 slides from Anora Group Oyj's earnings presentation, Aug 18, 2021
Slide 1: H1 21 results presentation
18 AUGUST 2021 H1 21 results presentation CEO PEKKA TENNILÄ INTERIM CFO JUHANA JOKINEN
Slide 2: Important information
IMPORTANT INFORMATION The securities referred to in this document in relation to the merger have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States (as such term is def
Slide 3: Good net sales growth in Q2, merger expected to be completed on 1 September 2021
Good net sales growth in Q2, merger expected to be completed on 1 September 2021 H1 2021 HIGHLIGHTS Net sales 158.5 (149.3) • Net sales increased by 6.2%; in constant MEUR currencies +4.4% Comparable EBITDA • Comparable EBITDA improved by 7%, in Q2 negative impact due to increased barley price 20.1
Slide 4: Market development
Market development APPROXIMATELY TWO THIRDS OF CONSUMER PRODUCT SALES COME FROM STATE RETAIL MONOPOLIES Combined spirits and wine sales volume development in the state retail monopolies Change compared to previous year, % Q2 21 Q2 20 H1 21 H1 20 2020 Finland Nordics in total -4.0 +20.9 +5.2 +15.6 +1
Slide 5: H1: Net sales grew in all segments
H1: Net sales grew in all segments SPIRITS PERFORMING STRONGLY IN MONOPOLIES AND SALES IN EXPORTS AND TRAVEL RETAIL INCREASED Q2 21: H1 21: Net sales by segment, MEUR • Net sales increase in constant • Net sales increase in constant currencies was 5.4% currencies was 4.4% 6.2% • Restrictions in on-t
Slide 6: Finland & Exports
Finland & Exports JANUARY–JUNE 2021 The Finland & Exports segment comprises the import, sale and marketing of wine and spirits, and other beverages in Finland and the Baltics, as well as exports and travel retail. Highlights Net sales, MEUR Product launches in Q2 21 • Net sales grew by 2.2% to EUR 5
Slide 7: Scandinavia
Scandinavia JANUARY–JUNE 2021 The Scandinavia segment comprises the import, sale and marketing of wine and spirits, and other beverages in Sweden, Norway and Denmark. Highlights Net sales, MEUR Product launches in Q2 21 • Reported net sales grew by 6.3% to 6.3% EUR 53.3 (50.1) million 53 • Net sales
Slide 8: Altia Industrial
Altia Industrial JANUARY–JUNE 2021 The Altia Industrial segment comprises Koskenkorva plant operations, starch, feed component and technical ethanol businesses, as well as contract manufacturing services at Rajamäki. It also includes supply chain operations, i.e. production operations in different c
Slide 9: Financials
18 AUGUST 2021 Financials INTERIM CFO JUHANA JOKINEN
Slide 10: Barley sourcing
In H1 21, Altia used Barley sourcing 106.2 (107.4) million kilos of Barley price development and Altia’s monthly volumes 2007-2021 (June) Finnish grain EUR/tn tn 250 30 000 25 000 200 20 000 150 15 000 100 10 000 50 5 000 2007 2009 2011 2013 2015 2017 2019 2021 0 0 January May January May January Ma
Slide 11: H1 21: Profitability improved
H1 21: Profitability improved IN Q2 NEGATIVE IMPACT DUE TO INCREASED BARLEY PRICE AND COVID-19 COST SAVINGS IN PREVIOUS YEAR Quarterly net sales and comparable EBITDA, EUR million H1 21: 110 107 • Comparable EBITDA improved by 7% to EUR 20.1 91 87 87 85 81 (18.8) million 19,7 72 68 19,0 • Key driver
Slide 12: H1 21: Profitability improved in Finland & Exports and Scandinavia
H1 21: Profitability improved in Finland & Exports and Scandinavia POSITIVE SALES DEVELOPMENT, PRODUCT MIX AND REVENUE MANAGEMENT Comparable EBITDA by segment, MEUR and margins EUR million Q2 21 Q2 20 Change H1 21 H1 20 Change 2020 H1 21: Finland & Finland & Exports 5.3 5.5 -3.9% 8.8 8.3 +6.1% 19.8
Slide 13: Strong liquidity, net working capital increased in Q2
Strong liquidity, net working capital increased in Q2 Net cash flow from operating activities, MEUR Gearing, % 59,1 % 57,9 % 65,9 66,9 71,2 59,3 56,1 52,6 44,2 36,8 53,4 33,2 % 29,2 50,2 24,5 % 19,1 % 20,0 % 24,7 25,7 3,2 -15,4 -4,4 -0,3 -1,3 6,5 % 7,8 % -2,5 % Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 14: Concluding remarks and Q&A
18 AUGUST 2021 Concluding remarks and Q&A CEO PEKKA TENNILÄ
Slide 15: Sustainability
Sustainability • Koskenkorva Distillery achieved record high steam energy self-sufficiency in H1 21: 68.5% • Consumer engagement on low- and non-alcoholic drinks • Occupational safety is one of the focus areas of Altia's Sustainability Roadmap and is the tool for achieving the goal of zero absences
Slide 16: Forming a leading wine and spirits brand house in the Nordics
Forming a leading wine and spirits brand house in the Nordics MERGER OF ALTIA AND ARCUS Key milestones 29 Sep Announcement of merger plan 23 Oct Prospectus published 12 Nov EGM’s of Altia and Arcus 23 Jul Announcement of brand divestments to Galatea AB and approvals from competition authorities rece
Slide 17: Executive Management Team at Anora Group
Executive Management Team at Anora Group Pekka Tennilä Janne Halttunen Kirsi Puntila Hannu Tuominen Current position Current position Current position Current position CEO, Altia SVP, Scandinavia, Altia SVP, Marketing, Altia SVP, Altia Industrial Henrik Bodekær Sigmund Toth Thomsen Current position
Slide 18: Short-term outlook
Short-term outlook • Altia has updated its short-term outlook but is not providing guidance for 2021, due to the uncertainties caused by COVID-19 and the low predictability for the full year 2021. • In the second half of 2021, COVID-19 is still expected to impact travel retail, exports and the on-tr
Slide 19: Q&A
Q&A Raise your hand Chat 18.8.2021 19
Slide 20: H1 summary
H1 summary H2 outlook: COVID-19- Good net sales related growth driven by Merger expected uncertainty spirits and Altia to close on continues and Industrial 1 September 2021 weakened barley price outlook
Slide 21: Thank you
Next events 1 Sep: expected closing of merger 3 Nov: Q3 Business Review Thank you www.altiagroup.com www.altiagroup.com IR: tua.stenius-ornhjelm@altiacorporation.com
Slide 22: Appendices
Appendices 18.8.2021 22
Slide 23: Key ratios
KEY RATIOS EUR million Q2 21 Q2 20 H1 21 H1 20 2020 Net sales, EUR million 86.8 81.0 158.5 149.3 342.4 Comparable EBITDA, EUR million 12.3 13.2 20.1 18.8 52.4 % of net sales 14.2 16.3 12.7 12.6 15.3 EBITDA, EUR million 10.1 12.6 14.7 18.0 40.3 Comparable operating result, EUR million 8.5 8.9 12.4 9.
Slide 24: Quarterly net sales and comparable EBITDA by segment
QUARTERLY NET SALES AND COMPARABLE EBITDA BY SEGMENT Net sales by segment EUR million Q2 21 Q1 21 Q4 20 Q3 20 Q2 20 Q1 20 Q4 19 Q3 19 Q2 19 Q1 19 Q4 18 Q3 18 Q2 18 Q1 18 Q4 17 Q3 17 Q2 17 Q1 17 Finland & 31.1 23.0 34.4 29.8 29.2 23.8 37.8 31.2 34.7 25.0 39.5 31.8 35.4 27.1 40.7 31.4 35.7 26.0 Export
Slide 25: Shareholder structure
Shareholder structure AS AT 31 JULY 2021 Shareholders Number of shares % of shares 1 Valtion Kehitysyhtiö Vake Oy 13 097 481 36.2 Non-financial corporations 2 Ilmarinen Mutual Pension Insurance Company 1 113 300 3.1 6% 3 Varma Mutual Pension Insurance Company 1 050 000 2.9 Non-profit Rest of the ins