Bewi Asa · OSL:BEWI
Bewi Asa — Q3 2021 Earnings Presentation
25 slides from Bewi Asa's earnings presentation, Nov 3, 2021
Slide 1: Results for the third quarter of 2021
Results for the third quarter of 2021 CEO Christian Bekken, CFO Marie Danielsson 3 November 2021
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation, prepared by BEWI ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, with
Slide 3: Highlights
Third quarter of 2021 Highlights 1
Slide 4: Continued solid demand and strong growth
Continued solid demand and strong growth Delivering another quarter with record-high results • Improved volumes and prices in all segments o Food packaging in Norway particularly strong EUR million o Weaker automotive market from shortage of components • Completed refinancing in August o Issuance of
Slide 5: Financial highlights
Financial highlights Record-high results driven by solid demand Third quarter 2021 First nine months 2021 • Net sales up by 58%, to EUR 193.0 million • Sales growth of 62% from first nine months of, to EUR 540.0 million o 43% organic growth from increased volumes and prices in all segments o 40% org
Slide 6: Acquisition of Jackon Holding
Acquisition of Jackon Holding The most transformative transaction so far in BEWI’s history Transaction summary Jackon is a vertically integrated insulation and packing provider Jackon is one of Europe’s leading manufacturers of XPS and EPS • 1 October 2021: Launch of offer to acquire 100% of the sha
Slide 7: Jackon and BEWI complements each other well
Jackon and BEWI complements each other well Complementary footprint and portfolio Strategic rationale Facilities • Improve customer share-of-wallet through an improved Growth product portfolio BEWI - RAW acceleration • Cross-sell a broader set of premium solutions to a wider BEWI - Downstream • EPS
Slide 8: Pro-forma key figures for combined company
Pro-forma key figures for combined company Relative contribution to a combined company Combined EBITDA LTM Q3 2021 EURm1) (except employees) EURm1) ~12-15 ~153 ~10% 39 Net sales LTM Q3’21 64% 36% 1041 26% 992) EBITDA LTM Q3’212) 72%2) 28% 138 65% Employees 69% 31% ~2,9002) 3) Synergies Combined BEWI
Slide 9: Acquisition of UK based recycling company Volker Gruppe
Acquisition of UK based recycling company Volker Gruppe Securing streams of collected material to become fully circular • Acquisition of 51% of UK based recycling company Volker Gruppe • Operating 2 facilities in the UK and Scotland • Compacting material and leasing compators to customers • One of t
Slide 10: Acquisition of Belgian insulation company Kemisol
Acquisition of Belgian insulation company Kemisol Strengthening position in market for insulation soutions in Benelux region • Agreement to acquire 100% of Belgian insulation Key figures Kemisol Group company Kemisol Group Amounts in EUR million 1H 2021 1H 2020 %-change 2020 • Family-owned company f
Slide 11: Financials
Third quarter of 2021 Financials 1
Slide 12: Financial overview
Financial overview EUR million ~40% ~36% ~21% RAW Packaging & Components Insulation 27.0 19.4 79.8 11.5 46.8 9.4 9.3 36.9 5.9 5.4 62.4 50.2 35.2 3.9 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Gross sales Adj. EBITDA Gross sales Adj. EBITDA Gross s
Slide 13: RAW
RAW Improved volumes and EBITDA following strong demand Third quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 89.5 million, up 101% o Increase explained by higher volumes and sales prices 21.7 % 20% 80 27.0 • Adj. EBITDA increase to EUR 19.4 million (3.9), a margin of 21
Slide 14: Packaging & Components
Packaging & Components Increased sales and improved EBITDA primarily from organic growth Third quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 79.8 million, up 59% o 28% organic growth, mainly explained by strong volume growth in Norway, as well as increase in 80 18.5 %
Slide 15: Insulation
Insulation Strong demand resulting in improved volumes in all regions Third quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 46.8 million, up by 27% o Organic growth of 22% from volume increase in Benelux, and increased sales prices 50 20% 40 16.0 % 15% • Adj. EBITDA of E
Slide 16: Circular
Circular Strong demand resulting in improved volumes in all regions Third quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 5.9 million, up by 273.2% o Increase explained by higher volumes and increased sales prices following significant increase in 8 -2.3 % 0% the virgin
Slide 17: Minority interests
Minority interests Positive contribution from shares in associated companies TOTAL • Shares in associated companies are consolidated into BEWI’s accounts with the value of the owned interest of net profit Production sites 16 • Consolidated as a net in one line within EBITDA, “Share of income Owned i
Slide 18: Consolidated P&L
Financials Consolidated P&L Amounts in EUR million Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020 Third quarter of 2021 Net Sales 193.0 122.1 540.0 332.3 462.6 • Net sales up by 58% Total operating income 193.0 122.1 540.0 332.3 462.6 o 43% organic growth from improved volumes & prices in all segments Raw m
Slide 19: Capital structure
Financials Capital structure Leverage: Net debt/ EBITDA ratio(1) • Net debt EUR 188 million on 30 September EUR million 2021 o EUR 111 million excluding IFRS 16 • Leverage significantly improved o Improved EBITDA 2.4 2.7 2.2 2.6 2.8 3.0 2.9 2.9 2.4 2.7 1.5 2.5 1.8 2.6 1.5 2.2 1.3 1.9 o Leverage affe
Slide 20: Cash flow and CAPEX
Financials Cash flow and CAPEX EUR million • Operating cash flow of EUR 31.2 million o Decrease in working capital of EUR 8.3 million • Cash flow for investments EUR 21.7 million o CAPEX of EUR 7.2 million, EUR 1.8 related to greenfield projects • Ongoing investment programmes 2021 22.9 19.4 7.4 10.
Slide 21: Refinancing to fuel growth
Refinancing to fuel growth Established a Sustainability Linked Finance Framework • Refinancing to fuel growth and pursue attractive opportunities • Established a new framework of up to EUR 250 million o Issuance of EUR 160 million bond loan on 3 September o Listed on Nasdaq Stockholm 28 October o La
Slide 22: Summary and outlook
Third quarter of 2021 Summary and 1 outlook
Slide 23: Outlook
Outlook Volume development remains solid • Experience solid demand, despite challenging market conditions in some end-markets • Most industries currently impacted by increased uncertainty related to shortage and/ or delay in deliveries of components, as well as cost inflation on several operational
Slide 24: Set to continue growth journey next five years
Set to continue growth journey next five years >2x ~20% <2.5x 30-50% Adj. EBITDA ROCE1 NIBD/Adj. EBITDA Dividend Through organic growth Increase towards 20% Leverage target Of underlying net profit and acquisitions by 2026 unchanged going forward Third quarter 2021 24
Slide 25: Next event
Next event Fourth quarter 2021 24 February 2021