Anora Group Oyj · OMXHEX:ANORA
Anora Group Oyj — Altia — FY2020 Earnings Presentation
29 slides from Anora Group Oyj's earnings presentation, Feb 25, 2021
Slide 1: Full-year 2020 results
25 FEBRUARY 2021 Full-year 2020 results 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: Exceptionally strong performance in a COVID-19 year
Exceptionally strong performance Comparable Dividend, in a COVID-19 year Net sales EBITDA margin EUR per share 2020 HIGHLIGHTS 342.4 15.3 % 0.35 MEUR For the financial year 2020 0.40 • Q4 in line with expectations Renewed authorisation for extra dividend • Full-year net sales declined due to COVID-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, % Q4 20 Q4 19 2020 2019 Finland Nordics in total +18.6 +1.4 +17.1 +0.1 • The hig
Slide 5: Net sales impacted by COVID-19
Net sales impacted by COVID-19 CLOSED OR RESTRICTED SALES CHANNELS AND LOWER CONTRACT MANUFACTURING VOLUMES Q4 20: 2020: Net sales by segment, MEUR • Net sales declined by 3.5% in constant • Net sales declined by 4.4% in constant -4.8% currencies currencies • Spirits sales declined due to travel ret
Slide 6: Finland & Exports
Finland & Exports JANUARY-DECEMBER 2020 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 Q4 20 • Net sales declined by 8.9%
Slide 7: Scandinavia
Scandinavia JANUARY-DECEMBER 2020 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 Q4 20 • Reported net sales grew by 2.7% to +2.7% EUR 123.9 (120.7) million 124 121
Slide 8: Altia Industrial
Altia Industrial JANUARY-DECEMBER 2020 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 differe
Slide 9: Financials
25 FEBRUARY 2021 Financials INTERIM CFO JUHANA JOKINEN
Slide 10: Barley sourcing
In 2020, Barley sourcing Altia’s use of Finnish grain reached 214 (212) Barley price development and Altia’s monthly volumes 2007-2020 (September) million kilos. 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 0 0 Altia's grain purchases to Ko
Slide 11: 2020: Positive profitability development
2020: Positive profitability development LONG-TERM FINANCIAL TARGET REACHED Quarterly net sales and comparable EBITDA, EUR million 111 110 107 91 2020: 85 81 87 74 19,7 • Comparable EBITDA improved by 17% or EUR 68 19,0 15,9 7.6 million to EUR 52.4 (44.8) million 14,6 13,2 • Key drivers 9,4 11,4 – A
Slide 12: Improved profitability in Scandinavia and Altia Industrial
Improved profitability in Scandinavia and Altia Industrial Comparable EBITDA by segment, MEUR and margins 2020: Finland & Exports EUR million Q4 20 Q4 19 Change % 2020 2019 Change % • Strong monopoly sales, revenue management and cost savings Finland & Exports 6.0 7.3 -17.6 19.8 20.6 -3.7 • Signific
Slide 13: Strong financial position and liquidity situation
Strong financial position and liquidity situation Net cash flow from operating activities, MEUR Gearing, % 58,1 % 59,1 % 57,9 % 31,6 % 33,2 % 24,5 % 19,1 % 20,0 % -2,5 % Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Net cash flow from ope
Slide 14: Free cash flow & working capital
Free cash flow & working capital SIGNIFICANT IMPROVEMENT IN FREE CASH FLOW Free cash flow* Net working capital Capital expenditure 134% 122% 88% 8% 75% 5% 3,3 % 38% 3% 3% 2,4 % 2,2 % 2,0 % 1,9 % 31 37 15 55 70 16 11 29 11 -14 9 12 8 7 7 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 2016 2017 201
Slide 15: Concluding remarks and Q&A
25 FEBRUARY 2021 Concluding remarks and Q&A CEO PEKKA TENNILÄ
Slide 16: Sustainability 2020
Our Distillery Sustainability 2020 • Recycling and reutilisation rate 95.5% • CO2 reduction from 2014 58% • 214 million kg Finnish barley Our Drink • The first regeneratively farmed vodka in the world produced – Koskenkorva Climate Action • New rPET bottles containing 25% recycled plastic launched •
Slide 17: 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 • H1 21 Payment of extra dividend 0.40e per share • H1 21 Expected closing of the combination 2
Slide 18: Dividend proposal by Altia's Board of Directors
Dividend proposal by Altia’s Board of Directors • In line with Altia’s dividend policy, Altia’s Board of Directors proposes to the Annual General Meeting that an annual dividend of EUR 0.35 per share be paid for the financial year 2020. 0,40 – Record date: 23 March 2021 – Payment date: 30 March 2021
Slide 19: Short-term outlook
Short-term outlook • Altia has decided to provide a short-term outlook but no guidance for 2021, due to the uncertainties caused by COVID-19 and the low predictability for the full year 2021. • In the first half of 2021, COVID-19 is expected to impact travel retail, exports and on-trade. The channel
Slide 20: Q&A
Q&A Raise your hand Chat 25.2.2021 20
Slide 21: Summary
Summary Exceptionally strong Important initiatives and performance in 2020 – steps taken on the Board’s dividend proposal Sustainability Roadmap EUR 0.35 per share Altia and Arcus merger closing expected in H1 2021 – Market predictability is low – authorisation for an extra short-term outlook given
Slide 22: Thank you
Next events 19 Mar: AGM 28 Apr: Q1 Thank you www.altiagroup.com IR: tua.stenius-ornhjelm@altiacorporation.com
Slide 23: Appendices
Appendices 25.2.2021 23
Slide 24: Key ratios
KEY RATIOS Q4 20 Q4 19 2020 2019 Net sales, EUR million 106.5 110.1 342.4 359.6 Comparable EBITDA, EUR million 19.0 19.7 52.4 44.8 % of net sales 17.9 17.9 15.3 12.4 EBITDA, EUR million 13.5 19.8 40.3 43.1 Comparable operating result, EUR million 14.8 15.2 35.0 26.8 % of net sales 13.9 13.8 10.2 7.5
Slide 25: Quarterly net sales and comparable EBITDA by segment
QUARTERLY NET SALES AND COMPARABLE EBITDA BY SEGMENT Net sales by segment EUR million 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 Q4 16 Q3 16 Q2 16 Q1 16 Finland & 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 41.1
Slide 26: Consolidated income statement
CONSOLIDATED INCOME STATEMENT EUR million Q4 20 Q4 19 2020 2019 NET SALES 106.5 110.1 342.4 359.6 Other operating income 1.8 2.3 6.2 7.6 Materials and services -59.8 -63.2 -192.5 -213.1 Employee benefit expenses -13.4 -11.7 -49.1 -45.9 Other operating expenses -21.5 -17.6 -66.6 -65.0 Depreciation, a
Slide 27: Consolidated balance sheet
CONSOLIDATED BALANCE SHEET EUR million 31 Dec 2020 31 Dec 2019 EQUITY AND LIABILITIES EUR million 31 Dec 2020 31 Dec 2019 Equity attributable to owners of the parent ASSETS Share capital 60.5 60.5 Invested unrestricted equity fund 1.2 1.2 Non-current assets Fair value reserve 0.6 0.6 Goodwill 81.4 8
Slide 28: Net cash flow from operations
NET CASH FLOW FROM OPERATIONS EUR million Q4 20 Q4 19 2020 2019 CASH FLOW FROM OPERATING ACTIVITIES Result before taxes 8.2 15.0 21.3 24.6 Adjustments Depreciation, amortisation and impairment 4.3 4.5 17.4 17.9 Share of profit in associates and joint ventures and income from interests in joint opera
Slide 29: Shareholder structure
Shareholder structure AS AT 31 JANUARY 2020 Shareholders Number of shares % of shares 1 Prime Minister’s Office 13 097 481 36.2 Non-financial corporations 2 Ilmarinen Mutual Pension Insurance Company 1 113 300 3.1 6% Non-profit Rest of the 3 Varma Mutual Pension Insurance Company 1 050 000 2.9 insti