Belysse Group NV · EURONEXT:BELYS
Belysse Group NV — Balta Group — FY2020 Earnings Presentation
18 slides from Belysse Group NV's earnings presentation, 2021
Slide 1: Full Year 2020 Results
Full Year 2020 Results Confidential
Slide 2: Disclaimer
Disclaimer In considering any performance information contained herein, you should bear in mind that past or projected performance is not necessarily indicative of future results, and there can be no assurance that any entity referenced herein will achieve comparable results or that illustrative ret
Slide 3: Introduction
Introduction Cyrille Ragoucy Chief Executive Officer Chairman of the Board Jan-Christian Werner Emmanuel Rigaux Chief Financial Officer Chief Transformation Officer 3
Slide 4: Full Year 2020 Financial Summary
Full Year 2020 Financial Summary • FY 2020 Consolidated revenue of €561.8m (16.0%) organic (16.3%) • Revenue decline across all divisions - Rugs (14.2%), Residential (11.9%) and Commercial (19.2%) YoY sales growth (consolidated) • Strong recovery from Rugs and Residential in H2 2020, while (0.3%) FX
Slide 5: Balta's Strategic Priorities
Balta’s Strategic Priorities Environmental, Social and Digital Transformation NEXT Governance (ESG) Earnings enhancement program Increased recycled content and Digital Transformation on track for 2021 targets making products recyclable to achieve a circular lifecycle. • Delivering sustainable growth
Slide 6: NEXT Revenue: +€43m incremental revenues in 2020
NEXT Revenue + €43m incremental revenues in 2020 Well on track to meet the €85m target for 2021 (vs 2018) 2019 2020 Cumulative Key Drivers (vs 2018) (vs 2019) (vs 2018) Balta e-commerce + €5m + €8m + €13m New Segment Revenue + €10m + €7m + €17m Direct route to market Other Revenue Initiatives + €10m
Slide 7: NEXT Margin Improvement: +€7m incremental savings in 2020
NEXT Margin Improvement : +€7m incremental savings in 2020 On track to meet the €16m target for 2021 (vs 2018) 2019 2020 Cumulative Key Drivers (vs 2018) (vs 2019) (vs 2018) Lean +€6m +€6m +€12m Procurement +€4m +€3m +€7m Margins Incremental OPEX (€4m) (€2m) (€6m) Total EBITDA savings +€6m + €7m + €
Slide 8: Lean Case study: Rugs – Avelgem Plant
Lean Case study: Rugs – Avelgem Plant Increase Overall Equipment Effectiveness of New Generation finishing lines • Reducing tact-time of the bottleneck operation in the line by 12%. • Adding cameras and screens, giving the operator better overview on the total line. • Detailed data capturing and rep
Slide 9: Group Q4 2020 Revenue
Group Q4 2020 Revenue €m • Rugs continued the rebound following the COVID-19 related revenue drop in H1. US revenues are well above last year. E- commerce still impacted by fixed costs until it reaches critical mass. Europe was slightly below 2019. 1.0% -25.2% 9.7% -40.7% • Commercial continued to b
Slide 10: Group Q4 2020 Adjusted EBITDA and Margins
Group Q4 2020 Adjusted EBITDA and Margins Adj. EBITDA margin (%) Q4 Q4 % €m 2020 2019 Change 12.1% 18.5% Rugs 9.5 5.0 90.7% €m Commercial 9.6 10.7 (10.6)% Residential 8.6 3.7 136.5% Non-Woven 0.1 0.4 (66.6)% Consolidated 27.9 19.8 40.9% Adjusted EBITDA • All divisions benefited from strict cost cont
Slide 11: Group FY 2020 Revenue Performance
Group FY 2020 Revenue Performance €m • Rugs declined, following the COVID-19 related revenue drop in H1. North-America well above last year, while e-commerce is still impacted by fixed costs until it reaches critical mass. Full year revenue dropped in Europe, -14.2% -19.2% -11.9% -38.4% despite a st
Slide 12: Group FY 2020 Adjusted EBITDA and Margins
Group FY 2020 Adjusted EBITDA and Margins Adj. EBITDA margin (%) FY FY % €m 2020 2019 Change 11.1% 12.1% Rugs 17.5 16.8 4.3% €m Commercial 30.7 40.5 (24.2)% Residential 19.0 15.1 26.0% Non-Woven 0.9 2.1 (58.3)% Consolidated 68.0 74.4 (8.6%) Adjusted EBITDA • All divisions were impacted by COVID-19 r
Slide 13: Cash Flow FY 2020: +€24.3m net cash improvement
Cash Flow FY 2020: +€24.3m net cash improvement • Positive net cash flow of €24.3m in FY2020, excluding €62.8m drawn from RCFs • As of 31 December 2020, we held cash and cash equivalents of €106.3m, with a further €7.4m headroom under the US RCF. • Cashflow increased through focus on cash preservati
Slide 14: Leverage of 4.2x, excluding IFRS16
Leverage of 4.2x, excluding IFRS16 Strong liquidity and reducing leverage through effective WC management and Adjusted EBITDA growth Leverage €m 21 20 7 19 80 88 118 106 • Leverage in FY20 negatively impacted by COVID-19 disruption 73 72 70 67 66 47 51 59 327 312 319 314 320 • Effective cost and wor
Slide 15: Extension of €235m Senior Secured Notes and €61m RCF to 2024
Extension of €235m Senior Secured Notes and €61m European Super Senior Revolving Credit Facility to 2024 Senior Secured Notes due December 2024 • 99.22% support for exchange offer in February 2021 Extension to June • Issued replacement senior secured notes due 2024 31 December 2024 on 8 March 2021 •
Slide 16: Conclusion
Conclusion The second half of 2020 was strong • Full revenue recovery in Rugs and Residential versus H2 2019 • Commercial rebounded less strongly and volumes are still to recover • Material increase in Adjusted EBITDA YoY by 34% and in Adjusted EBITDA margin from 11.6% to 16.8% • Continued trend in
Slide 17: Q&A Session
Q&A Session 17
Slide 18: Reconciliation of Adjusted EBITDA to Net Income
Reconciliation of Adjusted EBITDA to Net Income FY 2020 FY 2019 €million Revenues 561.8 671.2 Adjusted EBITDA 68.0 74.4 Depreciation and amortisation (40.0) (39.6) Adjusted Operating Profit 28.0 34.8 Non-recurring FY 2020 primarily in relation to advisers’ fees for the NEXT (7.8) (6.6) income/expens