Aquafil Spa · MIL:ECNL
Aquafil Spa — Q3 2020 Earnings Presentation
31 slides from Aquafil Spa's earnings presentation, Nov 13, 2020
Slide 1: Aquafil Group 3Q2020 Financial Results
Aquafil Group 3Q2020 Financial Results 13rd November 2020
Slide 2: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 2
Slide 3: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 3
Slide 4: Volume improvement enhanced Group actions
Volume improvement enhanced Group actions REVENUES EBITDA NET PROFIT NFP 2019 2020 ∆% 2019 2020 ∆% 2019 2020 ∆% 31.12.2019 30.09.2020 ∆% 3QUARTER YTD 419.5 327.9 (21.8%) 3QUARTER YTD 54.9 40.1 (27.0%) 3QUARTER YTD 9.5 (2.9) n.s. 249.6 246.8 (1.1%) % on net s a l es 13.1% 12.2% % on net s a l es 2.3%
Slide 5: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 5
Slide 6: Volumes improvement, higher prices adjustment
Volumes improvement, higher prices adjustment • 3Q volumes: improvement with different speed in the different regions - Asia and North America recovery much stronger compared to Europe • 3Q prices: BCF and Polymers product lines more impacted by prices adjustment (1) - in 2Q2020 caprolactam price de
Slide 7: Volumes: stronger recovery in Asia Oceania and N.A.
Volumes: stronger recovery in Asia Oceania and N.A. • Asia Oceania: BCF volumes even above 2019 driven by automotive and residential • North America: closing the gap thanks to NTF application • Europe: the slowest restart due to contract weakness VOLUMES QUARTERLY VARIATION 0% 0.0% (50.0)% (50)% EME
Slide 8: Revenues: volumes improvement, higher prices adjustment
Revenues: volumes improvement, higher prices adjustment 3QUARTER BCF NTF POLYMERS TOTAL 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% 2019 2020 ∆ ∆% EMEA 46.6 33.3 (13.2) (28.4%) 19.6 14 (5.7) (28.9%) 8.0 6.2 (1.8) (22.5%) 74.1 53.5 (20.7) (27.9%) North America 26.8 20.6 (6.1) (22.9%) 7.1 7.8 0.7 10.
Slide 9: Revenues: stronger recovery in Asia Oceania and N.A.
Revenues: stronger recovery in Asia Oceania and N.A. SALES BREAKDOWN by MACRO AREA 120% 120% 100% 17.2% 16.8% 17.2% 20.6% 100% 16.8% 16.7% 80% 80% 26.6% 28.1% 23.2% 26% 60% 60% 40% 40% 20% 55.9% 50.8% 20% 59.8% 56.9% 0% 0% 3Q2019 3Q2020 3Q2019YTD 3Q2020YTD EMEA N.A. ASIA-OCEANIA 120% SALES BREAKDOWN
Slide 10: A different path for ECONYL®
A different path for ECONYL® • Sales: a decline of 31.3% in the quarter drove to a 19.9% reduction YTD - Pandemic fully impact shifted to 3Q due to the end markets later reaction • % on net sales: 38.1% as of September end ECONYL® DETAILS – INCIDENCE ON NET SALES 120% 120% 100% 100% 37,4% 46,2% 40,9
Slide 11: Group actions are paying off
Group actions are paying off • 3Q: EBITDA margin improvement, from 11.9% to 12.5% - Impact of Group actions strengthened by better volume - On going focus on “shift” management to maximise labour efficiency - Persistent attention on discretionary spending EBITDA EVOLUTION 9.1 2.5 34.8 8.9 10.8 3.8 1
Slide 12: Depreciation material increase influenced net result
Depreciation material increase influenced net result QUARTER 3QUARTER YTD 2019 2020 ∆% 2019 2020 ∆% REVENUES 132.9 105.2 (20.8%) 419.5 327.9 (21.8%) EBITDA 15.8 13.2 (16.7%) 54.9 40.1 (27.0%) Margin % 11.9% 12.5% 13.1% 12.2% EBIT (0.2) 0.2 n.s. 17.0 0.2 n.s. Margin % (0.1%) % 0.2 4.0% 0.0% • Depreci
Slide 13: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 13
Slide 14: NFP evolution consistent with expectation
NFP evolution consistent with expectation • Efficient inventories management and CAPEX discipline mitigated quarterly trend - CAPEX: - 48.8% to € 23.7m, focus on operating CAPEX (almost 90%) • 2 new medium long-term for a total amount of € 25 million - € 150.9m of liquidity as of 30 September NFP EV
Slide 15: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 15
Slide 16: Recent evolution consistent with 3Q trends
Recent evolution consistent with 3Q trends • Volumes: recovery undergoing with ASIA BCF and North America NTF accelerating • Prices: most recent prices in line with 3Q end • Until now no significant impact from partial lockdowns in some European countries «FIRST GRADE PRODUCT» REVENUES (1) 1Q2020 2Q
Slide 17: As of today, on track to deliver 2020 guidance
As of today, on track to deliver 2020 guidance • High attention on Europe where uncertainty and low visibility increased again • EBITDA: ready to enhance countermeasures to protect profitability • NFP: ongoing CAPEX discipline and NWC efficiency SALES 20% reduction 2020 GUIDANCE (1) EBITDA 20% reduc
Slide 18: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX 19 18
Slide 19: Disclaimer
Disclaimer This presentation and any material distributed in connection herewith (together, the “Presentation”) prepared by Aquafil S.p.A. (“Aquafil” or “Company”) do not constitute or form a part of, and should not be construed as, an offer for sale or subscription of or solicitation of any offer t
Slide 20: Definitions
Definitions “First choice revenues” are revenues generated by the sale of fibers and polymers, gross of any «FIRST CHOICE adjustments (for example, discounts and allowances), but excluding revenues generated by “non-first REVENUES» choice products”, revenues generated by Aquafil Engineering GmbH and
Slide 21: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 5 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 7 4. OUTLOOK 16 5. APPENDIX – SECTOR DATA 21 21
Slide 22: Sector Data – Caprolactam price evolution
Sector Data – Caprolactam price evolution 2018-2020YTD PRICE EVOLUTION €/ton. 2.500 2018: 2.123 2019: 1.896 2.000 2020 YTD: 1.521 1.500 1.000 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sept. Oct. Nov. 2018 2019 2020 2019-2020YTD QUARTERLY PRICE VARIATION 30% 8% 73,6% 0% -30% 1Q2019 2Q2019 3Q2019 4Q2019
Slide 23: Index Page
Index Page 1. 3Q2020YTD FINANCIAL RESULTS - HIGHLIGHTS 3 2. 3Q2020YTD FINANCIAL RESULTS – P&L DETAILS 6 3. 3Q2020YTD FINANCIAL RESULTS – NFP DETAILS 14 4. OUTLOOK 16 5. APPENDIX – GROUP DATA 24 23
Slide 24: Consolidate Income Statement
Consolidate Income Statement CONSOLIDATED INCOME STATEMENT September of wich September of wich Third of wich Third of wich €/000 2020 non- 2019 non- Quarter 2020 non- Quarter 2020 non- Revenue 327,930 current 287 419,537 current 105,197 current 120 132,870 current of which related parties 80 29 53 -
Slide 25: Consolidate Income Statement – EBITDA Adjusted
Consolidate Income Statement – EBITDA Adjusted September September Third Quarter Third Quarter RECONCILIATION FROM NET PROFIT TO EBITDA €/000 2020 2019 2020 2019 Net Profit (Including Portion Attr. to Minority ) (2,899) 9,533 (964) (1,120) Income Taxes (68) 3,714 (439) 77 Amortisation & Depreciation
Slide 26: Consolidate Balance Sheet
Consolidate Balance Sheet CONSOLIDATED BALANCE SHEET At September 30, At December 31, €/000 2020 2019 Intangible Assets 22,551 21,101 Goodwill 12,502 13,029 Tangible Assets 237,559 251,492 Financial Assets 630 765 of which related parties 318 313 Other Assets 1,336 2,189 Deferred Tax Assets 11,538 1
Slide 27: Debt overview – Outstanding gross debt
Debt overview – Outstanding gross debt AMOUT COVENANTS (2) BORROWINGS - 30 June 2020 ISSUE DATE CURRENCY COUPON ( 1 ) MATURITY (1) Total Drawn Undrawn Parameters Reference Check Private Placement B Sept 2018 EUR 4.70% Sept 2028 50 50 0 EBITDA / Net financial charges > 3.5 Net Debt / EBITDA < 3.75 Pr
Slide 28: Debt overview – Net financial position
Debt overview – Net financial position NET FINANCIAL DEBT At September 30, At December 31, €/000 2020 2019 A. Cash 150,921 90,400 B. Other cash equivalents - C. Securities held-for-trading - D. Liquidity ( A + B + C) 150,921 90,400 E. Current financial receivables 844 1,637 F. Current bank loans and
Slide 29: Debt overview – Net financial position – Details
Debt overview – Net financial position – Details 400 300 NFP EVOLUTION 200 250 250 100 157 112 0 2017 2018 2019 3Q2020YTD BREAKDOWN by CURRENCY BREAKDOWN by COUPON (1) 1% 46% 58% 54% 99% EURO USD FIXED FLOATING Data in € million - (1) Excluding lease liabilities 29
Slide 30: Cash Flow Statements
Cash Flow Statements CASH FLOW STATEMENT At September 30, At September 30, €/000 2020 2019 Operation Activities Net Profit (Including Portion Attr. to Minority ) -2,899 9,533 of which related parties -468 -484 Income Taxes -68 3,714 Income (loss) from Investments -353 -1,120 of which related parties
Slide 31: Investors Contact:
Investors Contact: Karim Tonelli Investor Relations & Performance Management Director karim.tonelli@aquafil.com Mob: +39 348 60 22 950 31