Arcus ASA — Q1 2021 Earnings Presentation
21 slides from Arcus ASA's earnings presentation, May 20, 2021
Slide 1: First quarter results 2021
First quarter results 2021 Sigmund Toth, Interim Group CEO Kristoffer Loftesnes, Head of Business Controlling & Treasury 20 May 2021
Slide 2: Q1: Strong start of 2021
Q1: Strong start of 2021 Amounts in NOK million 2020 2021 Operating Revenues EBITDA (adj.) +9.4% RG 4.7% April +8.2% OG1 YTD 669 102.2 611 66.6 Q1 Q1 • Wine: Continued growth, strong margins • Spirits: Solid growth across the Nordics • Logistics: Increased volume at higher costs 1Reported growth adj
Slide 3: Q1: Organic growth significantly impacted by Covid-19
Q1: Organic growth significantly impacted by Covid-19 Organic growth1 overall and by reporting segment Percent Q1 April YTD Arcus ASA 8.2% Arcus ASA 4.7% Wine 10.8% Wine 6.0% Spirits2 4.1% Spirits2 2.0% Logistics 3.0% Logistics 2.8% 1Reported growth adjusted for currency translation effects and stru
Slide 4: Q1 Wine: Continued growth and improved margins
Q1 Wine: Continued growth and improved margins Amounts in NOK million 2020 2021 Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) 10.8% OG1 425 67.5 15.9 377 9.7 36.6 Q1 Q1 Q1 • Sweden: Strong revenue increase and increased market shares • Norway: Strong revenue increase driven by Covid-19 a
Slide 5: Q1 Spirits: Solid growth across the Nordics
Q1 Spirits: Solid growth across the Nordics Amounts in NOK million 2020 2021 Operating revenues1 EBITDA (adj.) EBITDA (adj.) margin (%) 4.1% OG2 217 26.7 12.3 200 18.8 9.4 Q1 Q1 Q1 • Norway, Sweden, Finland: Significant revenue growth driven by Covid-19 restrictions and early Easter • Norway: High s
Slide 6: Q1 Logistics: Extraordinarily high volumes, smooth deliveries
Q1 Logistics: Extraordinarily high volumes, smooth deliveries Amounts in NOK million 2020 2021 Operating revenues EBITDA (adj.) EBITDA (adj.) margin (%) +3.0% OG1 78 80 -1.8 -2.3 -4.3 -5.4 Q1 Q1 Q1 • Distributed volume in Q1 was 14.5 million liters, an increase of 1.6 million liters from Q1 last yea
Slide 7: Financial performance
Financial performance Kristoffer Loftesnes, Head of Business Controlling & Treasury 7
Slide 8: Organic growth and positive FX-effect contributed to increased operating revenues
Organic growth and positive FX-effect contributed to increased operating revenues Q1-21 Operating revenue growth Percent; NOK million +9.4% 669 +0.0% +1.1% 8.2% 611 Operating revenues Organic growth1 FX Structural Changes Operating revenues Q1-20 Q1-21 1Reported growth adjusted for currency translat
Slide 9: Q1 Group P&L: Revenues and Adjusted EBITDA well above last year
Q1 Group P&L: Revenues and Adjusted EBITDA well above last year Amounts in NOK million Profit and Loss This quarter 2021 2020 Operating revenues 668.8 611.2 EBITDA (adj.) 102.2 66.6 Depreciation. Amortization and Write-downs -31.8 -31.4 EBIT (adj.) 70.4 35.3 Other income and expenses -21.7 0.1 EBIT
Slide 10: Weaker EUR vs SEK and NOK give net positive effect on EBITDA
Weaker EUR vs SEK and NOK give net positive effect on EBITDA for the quarter, current rates indicate negative full year effects on revenues and positive on EBITDA Currency rate effects1 (Q1 2021 actuals vs. Q1 2020 actuals) Currency rate effects1 (2021F currency rate3 vs. 2020 actuals) Revenues (MNO
Slide 11: Cash flow below Q1 2020 due to larger increase in working capital
Cash flow below Q1 2020 due to larger increase in working capital, positive FX translation effects last year and non-recurring costs Q1-21 Cash Flow from Operations Amounts in NOK million 102 -118 This translation effect was +36MNOK last year due to significant changes in currency rates at the begin
Slide 12: Gearing well below target at the end of Q1
Gearing well below target at the end of Q1 Net Interest Bearing Debt (NIBD) / R12M Adjusted EBITDA by quarter (Excluding IFRS16 effects) Target < 2.5x 2,2 1,3 1,1 1,0 0,7 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 12
Slide 13: Sigmund Toth, Interim Group CEO
Sigmund Toth Interim Group CEO 13
Slide 14: Anora: The merger work is on-track
Anora: The merger work is on-track • Arcus and Altia continue to be fully committed to the merger • In April, Altia received conditional approval for the merger between Arcus and Altia from the Finnish Competition and Consumer Authority (FCCA) and from the Swedish Competition Authority (SCA), and in
Slide 15: Covid-19: Arcus works hard to keep our employees safe
Covid-19: Arcus works hard to keep our employees safe • Throughout he pandemic, Arcus has had a series of proactive measures to reduce risk of infection • Operations at the Gjelleråsen facility is running smooth, despite Covid-19 measures making some of the processes more cumbersome • All employees
Slide 16: Q&A
Q&A Financial calendar, 2021 Will be adjusted/aligned 18 August Quarterly report Q2 after merger 10 November Quarterly report Q3 16
Slide 17: Condensed statement of income
Condensed statement of income MNOK First quarter Year to date Full Year Note 2021 2020 2021 2020 2020 Sales 2,9 659.5 595.1 659.5 595.1 3 156.4 Other revenue 2 9.3 16.1 9.3 16.1 47.3 Total operating revenue 2,9 668.8 611.2 668.8 611.2 3 203.7 Cost of goods -363.0 -349.6 -363.0 -349.6 -1 815.7 Gross
Slide 18: Condensed statement of financial position
Condensed statement of financial position MNOK First quarter Full Year Note 31.03.2021 31.03.2020 31.12.2020 Intangible assets 6 1 930.5 2 080.1 1 984.5 Tangible assets 5 1 368.8 1 427.0 1 391.9 Deferred tax asset 43.3 79.4 49.0 Financial assets 67.8 69.8 71.2 Total fixed assets 3 410.4 3 656.4 3 49
Slide 19: Historic quarterly distribution of top-/bottom-line last five years
Historic quarterly distribution of top-/bottom-line last five years 2016-2020 average 44% Operating revenues Adj. EBITDA 31% 26% 25% 24% 20% 21% 9% Q1 Q2 Q3 Q4 Average 2016 – 2020 Arcus ASA. rounded numbers 19
Slide 20: Important information
Important information The securities referred to in this document in relation to the merger have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States (as such term is def
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