Slide 1: January-September 2013 Results
January-September 2013 Results Results January – September 2013
Slide 2: Disclaimer
Disclaimer This document may contain additional non- non-compulsory forward- forward-looking statements on intentions or expectations of the Company as of the date of its publication whose only purpose is to provide further information on perspectives on future performance. Such forward- forward-loo
Slide 3: Consolidated results 9M13
Consolidated results 9M13 Quarterly evolution negatively affected by the depreciation of main trading currencies, higher raw material prices and energy. % y- y-o-y MM € 9M13 % y- y -o - y ex- ex-forex1 3Q13 % y-o-y Revenue 578.8 +2.8% +5.7% 191.3 -0.3% EBITDA 136.1 -2.5% +1.4% 44.3 -8.6% EBITDA Marg
Slide 4: Organic growth and control of operational costs remains stable
Consolidated results 9M13 Organic growth and control of operational costs (personnel and efficiencies) remains stable, but the pressure on cost of raw materials and energy continues. 9M13. % y- y-o-y 3Q13. % y- y-o-y +5.7% +6.8% (ex-forex) +4.6% +6.1% +4.9% (ex-forex) +1.4% +3.4% +1.9% (ex-forex) +2
Slide 5: Revenue growth led by casings division volumes
Consolidated results 9M13 Revenue growth led by casings division volumes… not transferred to EBITDA due to weak currencies, inflation of raw materials and co-generation regulation. Revenue Ex- Ex-forex EBITDA Ex- Ex-forex +6.7% +5.9% +5.5% +5.1% +4.6% +3.8% +2.6% +2.0% -0.3% -1.1% -8.6% -3.0% 1Q 2Q
Slide 6: Lower exchange differences and fiscal optimization transferred to Net profit
Consolidated results 9M13 Lower exchange differences and fiscal optimization are transferred to Net profit. 136.1 -36.3 99.8 -2.9 -19.5 * 77.4 EBITDA D&A EBIT Net financial results Taxes Net profit Net financial results (MM €) Effective tax rate: 0.5 0.4 22.1% 22.1% 20.1% 9M13 -0.8 9M12 -2.4-2.5 -3.
Slide 7: Solid balance sheet and strong operations to finance expansion plan
Consolidated results 9M13 Solid balance sheet and strong operations to finance the expansion plan (both capex and working capital) and dividends payment. +41.0% +4.5% 69.5 64.7 67.5 49.3 CAPEX CAPEX Net bank Net bank 9M12 9M13 debt dec’12 debt sep’13 • Building a new facility in Uruguay. • Financial
Slide 8: Casing business
Casing business Results January – September 2013 8
Slide 9: Viscofan continues capturing market growth
CASINGS Viscofan continues capturing market growth, but this is not transferred to revenue and EBITDA because of weakness in main currencies, energy regulation in Spain and raw material inflation. Organic MM € 9M12 growth Forex RDL * 9M13 Revenue 485.8 +31.0 -16.2 -1.1 499.5 (+6.4%) (+2.8%) EBITDA 1
Slide 10: Positive year on year performance on revenue, driven by casings volumes
CASINGS Positive year on year performance on revenue, driven by casings volumes (especially on collagen family)… but eroded in 3Q13 by currencies and co- generation… Revenue (MM €) Contribution to growth. Quarterly evolution. 1Q 2Q 3Q +6.1 p.p. +0.0p.p. -3.3 p.p. 499.5 485.8 +6.7 p.p. +5.9 p.p. ex-f
Slide 11: Significant growth in emerging areas despite currency depreciation
CASINGS … that has not prevented to achieve significant growth in emerging areas, in an environment in which almost all trade currencies have depreciated against the €. Revenue breakdown by geographic area (MM €) 251.1 263.1 31.4% 52.7% 159.3 156.8 North America Europe & Asia 15.9% 75.4 79.6 Latam +
Slide 12: Lower revenues than expected in the quarter
CASINGS Reporting in the quarter lower revenues than expected, despite y-o-y improvement on volumes and price mix… Revenue performance (MM €) +4.9% ex-forex 175.5 173.4 160.0 166.6 165.3 164.0 163.4 154.0 +3.9% +5.4% -0.8% 1Q 2Q 3Q 4Q Casings +3.7% +5.3% +0.2% 0.2% +6.3% ex-forex Co -generation +5.8
Slide 13: Costs scenario eroding margin evolution
CASINGS … in a costs scenario (start-up in China, collagen hides prices and new co- generation taxes) that erode margin evolution… Quarterly EBITDA margin Quarterly EBITDA (MM €) 2012 2013 2013 2012 28.1% 47.3 46.4 27.7% 46.1 26.9% 41.4 41.1 42.1 43.4 26.9% 26.6% 25.7% 25.7% 25.7% 1Q 2Q 3Q 4Q 1Q 2Q
Slide 14: Operational improvements partially offset erosion on profitability
CASINGS … and however, the strength and operational improvements of the division enable to partially offset the erosion on profitability. Cumulative EBITDA (MM (MM €) +6.9 -5.4 133.9 -4.9 130.5 EBITDA Operational Forex Co-generation EBITDA 9M12 improvements effect effect 9M13 (+5.1 p.p.) (-4.0 p.p.)
Slide 15: Vegetable Food: increasing revenue backed by Carretilla brand
VEGETABLE FOOD Increasing revenue backed by Carretilla brand strength, the search for new export markets and portfolio diversification. Revenue (MM €): EBITDA (MM €): Net profit (MM €): +2.9% -0.3% 27.9% 79.2 77.0 5.6 5.6 3.3 2.6 9M12 9M13 9M12 9M13 9M12 9M13 EBITDA margin 7.3% 7.1% 9M12 9M13 Result
Slide 16: To sum up
To sum up Viscofan Group keeps the growth trend in an environment of market growth , particularly in emerging areas. Margin pressure due to raw material prices , co- co-generation taxes and currency weakness (BRL & US$), which have worsened quarterly growth, although the Group keep positive organic