Vaa Vista Alegre Atlantis Sgps Sa · EURONEXT:VAF
Vaa Vista Alegre Atlantis Sgps Sa — Vista Alegre Atlantis — Debt Investor Presentation (October 2019)
31 slides from Vaa Vista Alegre Atlantis Sgps Sa's debt investor presentation, October 2019
Slide 1: Corporate Presentation October 2019
CORPORATE PRESENTATION OCTOBER 2019
Slide 2: Disclaimer
PRESENT ATI ON | VISTA ALE GR E ATLANTIS Disclaimer The purpose of this presentation is purely informative. By attending this presentation and/or reading this document, you agree to be bound to the terms contained herein. This document and the information contained herein is confidential and may not
Slide 3: Index
FI X E D I NCOM E PRESENT ATI ON | VISTA ALE GRE ATLANTIS Index 1. COMPANY OVERVIEW 3 2. INVESTMENT CASE 10 3. TRADING UPDATE AND RECENT EVENTS 25 4. ANNEX 28
Slide 4: Company Overview
1. COMPANY OVERVIEW 3
Slide 5: Vista Alegre (VAA) at a Glance
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW VISTA ALEGRE (“VAA”) AT A GLANCE • Vista Alegre is best known for its luxury porcelain and lead cristal products. However, the Company produces, through 6 factories in Portugal, a wide range of products that are differentiated by their un
Slide 6: Brief History of Vista Alegre
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW BRIEF HISTORY OF VISTA ALEGRE • Established in 1824 for “porcelain, glass and chemical processes”, VAA has grown to be a leading international tableware, glassware and giftware company with globally recognized brands • The Group has diver
Slide 7: Complete Product Range
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW COMPLETE PRODU C T RANGE • Vista Alegre is best known for its luxury porcelain and lead crystal products. However, the Company produces, through 6 factories in Portugal, a wide range of products that are differentiated by their unique des
Slide 8: Global Brand
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW GLOBAL BRAND • Its three main brands - Vista Alegre, Bordallo and Casa Alegre - enjoy strong brand awareness in Portugal and count with growing international prestige thanks to their multiple design recognitions, museum exhibitions and pa
Slide 9: VAA Group Structure
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW VAA GROUP STRUCTURE • As of 31st August 2018, Grupo VAA concluded the acquisition of Cerutil and Bordallo Pinheiro from Visabeira Indústria in Exchange of the Group’s non-operational Real Estate Assets (VA Grupo Vista Alegre Participações
Slide 10: Main Shareholder: Grupo Visabeira
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 1 . COMPANY OVERVIEW MAIN SHAREHOLDER: GRUPO VISABEIRA • Visabeira was founded in 1980 by Fernando Campos Nunes with a focus on offering infrastructure and network engineering servic es for the telecom and energy sectors in Portugal. Mr. Nunes currently contr
Slide 11: Investment Case
FANON y INS HN. Hift\\\\\ INVESTMENT CASE VISTA ALEGRE 1824
Slide 12: Investment Case
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE INVESTMEN T CASE Positive outlook for the table and Proven management team 10 1 ornamental ceramic industry Outstanding Financial Performance 9 2 Broad international presence Strong CAPEX Support by European funds 8 3 One of the market lea
Slide 13: Positive Outlook for the Table and Ornamental Ceramic Industry
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE POSITIVE OUTLOOK FOR THE TABLE AND ORNAMENTAL CERAMIC INDUSTRY • Expected high growth in ceramics market of around 6.6% CAGR until 2021 is accompanied by more complex and demanding customer preferences MAIN TRENDS Demand: Preferences: • In
Slide 14: Broad International Presence
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE BROAD INTERNATIONAL PRESENCE • VAA is strongly export-oriented with a focus on European markets but with sales in diverse countries such as Brazil and USA • Exports accounted for 70% of 2018 P r o - F o r ma sales – France (11%), Spain (10
Slide 15: Market Leader with Diversified Portfolio
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE MARKET LEADER WITH DIVERSIFIED PORTFOLIO • Vista Alegre has become the sixth largest ceramic producer globally by sales and third by EBITDA. The Group enjoys the highest EBITDA margin across its industry BENCHMARKING • Top sixth largest gr
Slide 16: Market Leader with Diversified Portfolio (Cont'd)
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE MARKET LEADER WITH DIVERSIFIED PORTFOLIO (CONT’D) • The Porcelain segment is the greatest contributor to VAA’s total turnover (44%), followed by Stoneware Oven-to-Tableware (20%) and Stoneware Tableware (17%) 2 0 1 8 T U R N OV E R BY P R
Slide 17: Diversified Multichannel Distribution
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE DIVERSIFIED MULTICHANNEL DISTRIBUTION • Retail channel comprises a network of 46 own stores (32 in Portugal), penetration of multi-brand specialty and department stores (i.e. corners in El Corte Inglés) and the 2 0 1 8 T U R N OV E R BY CH
Slide 18: Long-Term Contracts with Established Retailers and Brands
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE LONG-TERM CONTRACTS WITH ESTABLISHED RETAILERS AND BRANDS • Partnerships with key clients and brands (Hennessy, Rémy Martin, Zara Home, Cervera, Club Med) are driving the improvement in operational performance • Expected annual contracted
Slide 19: Strategic Plan Based on Innovation
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE STRATEGIC PLAN BASED ON INNOVATION • Under an increasingly competitive environment, VAA has been continuously investing with a specific focus on innovation in order to improve its production processes and sustain a standard of quality and
Slide 20: Strong Capex Support from European Funds
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE STRONG CAPEX SUPPORT FROM EUROPEAN FUNDS • Agência para o Investimento e Comércio Externo de Portugal (“AICEP” – Portuguese Trade & Investment Agency) is an independent public entity of the Government of Portugal, with the goal of attracti
Slide 21: State-of-the-Art Production Facilities
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE STATE-OF-THE-ART PRODUCTION FACILITIES Product Space Capacity Facility Location Brands Comments Line (sqm) (pieces/yr) • Founded in 1824 (195 Years) Porcelain & Ilhavo • Vista Alegre heritage (factory, museum, chapel, theatre, hotel, etc.)
Slide 22: State-of-the-Art Production Facilities (Cont'd)
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE STATE-OF-THE-ART PRODUCTION FACILITIES (CONT´D) • VAA has invested over the recent years with targeted benefits for increasing capacity across the highest margin business line s, lowering energy, labour and waste costs and technology-drive
Slide 23: Outstanding Financial Performance
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE OUTSTANDING FINANCIAL PERFORMANCE • With the acquisition of VAA by Grupo Visabeira in 2009, the company´s economic performance recorded a significant improvement despite adverse market conditions • Since 2014, the company showed particular
Slide 24: Outstanding Financial Performance (Cont'd)
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE OUTSTANDING FINANCIAL PERFORMANCE (CONT´D) • VAA´s significant growth in sales and improved operational efficiency led to enhanced operating cash flows • The company´s constant effort to enhance productivity and product quality, as well as
Slide 25: Proven Management Team
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 2 . INVESTMENT CASE PROVEN MANAGEMENT TEAM Nuno Pau l o Paulo Nuno Teodorico Alexandra Alda Marques Pires Soares Ba r r a Pais Lopes Costa EXECUTIVE EXECUTIVE EXECUTIVE CHAIRMAN CEO EXECUTIVE EXECUTIVE BOARD MEMBER BOARD MEMBER BOARD MEMBER 20 years of 23 yea
Slide 26: Trading Update and Recent Events
3. TRADING UPDATE AND RECENT EVENTS 25
Slide 27: 1H2019 Economic Performance
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 3 . TRADING UPDATE AND RECENT EVENTS 1H2019 ECONOMIC PERFORMANCE • Vista Alegre accomplished its best operating performance during a semester: turnover reached €57.4M (+14.0% yoy) and EBITDA €11.6 (+14.0% yoy), maintaining the excellent results achieved over
Slide 28: Bond Issuance
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 3 . TRADING UPDATE AND RECENT EVENTS BOND ISSUANCE • VAA completed a bond issuance in October 2019 of i) secured guaranteed bonds in the amount of €45.0M, with a fixed annual rate of 4.5% and maturity in October 2024 and ii) secured guaranteed bonds in the am
Slide 29: Annex
4. ANNEX 28
Slide 30: Capital Structure Overview
PRESENT ATI ON | VISTA ALE GR E ATLANTIS 4 . ANNEX CAPITAL STRUCTURE OVERVIEW J U N - 2 0 1 9 C AP I TA L S T R U C T U R E J U N - 2 0 1 9 C AP I TA L S T R U C T U R E – Proforma after the Bonds Issuance Capital Structure as of June 2019 (€M) Capital Structure as of June 2019 (€M) Long-Term Short-
Slide 31: Slide 31
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