Sig Group Ag · SIX:SIGN
Sig — SIG Combibloc Group — Q3 2018 Earnings Presentation
13 slides from Sig's earnings presentation, Oct 30, 2018
Slide 1: SIG Combibloc Q3 2018 Earnings
SIG COMBIBLOC Q3 2018 EARNINGS OCTOBER 30, 2018
Slide 2: Disclaimer
Disclaimer This presentation may contain “forward-looking statements” that are based on our current expectations, assumptions, estimates and projections about us and our industry. Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply futu
Slide 3: SIG Combibloc returns to SIX Swiss Exchange
SIG Combibloc returns to SIX Swiss Exchange Listing and first day of trading 28 September 2018 New shares issued 105m ▪ Priced at CHF 11.25 per share Existing shares sold 46.8m ▪ Offering size including greenshoe CHF 1.7 bn ▪ Net proceeds to SIG of CHF 1.1bn for debt reduction Total number of shares
Slide 4: Leading Systems and Solutions Provider for Aseptic Packaging
Leading Systems and Solutions Provider for Aseptic Packaging Highly Attractive Business Model Highly Attractive Financial Profile #2 Globally with Track record of long- 2017 Revenue: #2 aseptic carton packaging player globally exposure to resilient and growing term growth, margin expansion and €1.7b
Slide 5: Nine Months 2018 Highlights
Nine Months 2018 Highlights Core revenue up 7% y-o-y at constant currencies Stable performance in Europe Broad-based growth in Asia Pacific Americas - Brazil softer in Q3 after strong H1; underlying demand remains strong Adjusted EBITDA up 5% with increase in margin to 26% (2017 9M: 25%) Leverage re
Slide 6: Q3 2018 Highlights
Q3 2018 Highlights Q3 core revenue up 4% y-o-y at constant currencies, Q3 Core Revenue* up 1% actual € millions 1% 4% Weakness of key currencies against the Euro: €410 €409 • 3% adverse top line impact Core revenue €398 €403 • 8% adverse adjusted EBITDA impact Total revenue % Actual growth % Constan
Slide 7: Core revenue seasonality
Core revenue seasonality Business seasonality 9 months Core Revenue* € millions ▪ Q4 historically has the highest sales: customers aim to reach bonus targets 4% 7% €1,166 €1,173 ▪ Margins also highest in Q4 Core revenue Total revenue €1,106 €1,146 % Actual growth % Constant currency 9M 2017 9M 2018
Slide 8: Adjusted EBITDA
Adjusted EBITDA 9M Adjusted EBITDA Bridge First nine months €311 € millions 8.4 ▪ Strong top line contribution 4.5 31.6 -8.1 -0.5 -1.7 ▪ Higher raw material costs: -18.3 310.6 aluminium 294.7 276.4 ▪ Production efficiencies AC 2017/09 FX Impacts Net of FX Top line Raw material Production JV Dividend
Slide 9: Adjusted net income
Adjusted net income Q3 2018 € millions Pro forma Q3 2018 Q3 2017 Adjusted net income 48.7 26.8 28.2 9 months € millions 2018 Pro forma 9 months 2018 9 months 2017 Adjusted net income 139.6 76.0 41.0 ▪ Cost efficiencies drive improvement in 9 months 2018 ▪ Favourable impact from realized foreign exch
Slide 10: Leverage
Leverage Dec 31 Sept 30 Sept 30, € millions 2017 2018 pro forma1 Cash2 102 132 132 ▪ Term loans refinanced at attractive rates ▪ Cost of debt 2.00 - 2.25% Senior Secured Term Loans 1’939 1’957 1’600 ▪ New multi-currency RCF €300 million for 5 years Finance Lease Liabilities 12 24 24 ▪ Early redempti
Slide 11: Financial Guidance
Financial Guidance FY 2017A FY 2018E Mid-Term Core Revenue €1’590m 4 - 6% (constant currency) 4 - 6% (constant currency) Adj. EBITDA Margin 27.3% 28%+ ~29% Net Capex (% Revenue) 9.9% 9 - 10% 8 - 10% Dividend Payout - - 50 - 60% of adjusted net income1 Net Leverage 5.5x 3.2x (at IPO) Towards ~2x Cost
Slide 12: Business Outlook
Business Outlook Ongoing demand supported by non-discretionary consumer spending Continuous innovation Well invested footprint: significant growth potential from existing filler base Promising white space opportunities: recent entries into new countries and categories Strong cash flow generation: at
Slide 13: Thank You
THANK YOU