Elopak Asa · OSL:ELO
Elopak Asa — Q2 2022 Earnings Presentation
23 slides from Elopak Asa's earnings presentation, Aug 18, 2022
Slide 1: Q2-22 Quarterly Presentation
Q2-22 QUARTERLY PRESENTATION 18 AUGUST 2022 AMARCH Leading2021 Global Fresh Liquid Packaging Company and True Sustainability Champion March 2021
Slide 2: Disclaimer
Disclaimer Certain statements included in this announcement contain forward -looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Elopak management concerning plans, objectives and strategies, such as planned expansio
Slide 3: Today's presenters
Today’s presenters Thomas Körmendi Bent Kilsund Axelsen Chief Executive Officer - CEO Chief Financial Officer - CFO
Slide 4: Elopak at a Glance
Elopak at a Glance 11 A Leading Global Player in Fresh Liquid Carton Packaging 22 14 Billion Cartons Produced in 2021 Across 11 Manufacturing Sites 3 Product Suite with More Than 400 SKUs 44 Sales to 70+ Markets with ~2,600 Employees 56 Established and Owned by Ferd Since 1957 Revenue (€m) Adj. EBIT
Slide 5: AR ae
AR ae j Chosen 6 by people, packaged by nature : E
Slide 6: Committed to remaining our customers' partner
As worldwide makers of carton-based packaging, we are committed to remaining our customers’ partner and the consumers’ favorite, through relentlessly developing new solutions for an expanding range of content. Applying market-leading technology, skills and natural material sourcing, we always aim to
Slide 7: Q2-22 Business Performance
Q2-22 BUSINESS PERFORMANCE CEO Thomas Körmendi
Slide 8: Q2 2022 Business Highlights
Q2 2022 Business Highlights Revenue growth and strong performance in Americas, offset by high input costs impacting margins Adj. EBITDA of Price initiatives, supported Revenue at EUR 259 25 mEUR, 9.8% margin revenue growth by 12 million, 7% y-o-y growth - higher input costs mEUR reduced margins y-o-
Slide 9: Revenues – Elopak Group
Revenues – Elopak Group Revenue growth of 7% y-o-y - mainly driven by price increases and strong Americas performance Revenues (EURm), CAGR (%) Key commentary EURm ▹ Revenue growth of EUR 17m, 7% y-o-y 600 8% ▹ EUR 12m of revenue growth in the quarter from the newly 502 acquired Naturepak business i
Slide 10: Business update: EMEA
Business update: EMEA Solid Q2-22 performance – growth despite loss of Russia business, mainly driven by Naturepak and price increases Revenues Q2-22 (EURm) – EMEA Key commentary EURm ▹ Revenue growth of EUR 4m, 2% y-o-y +4% – EUR 12m positive impact from acquired business (6 % y-o-y) 398 400 381 –
Slide 11: Business update: Americas
Business update: Americas Quarterly revenue is up by 43% y-o-y, and continued strong profitability performance Revenues Q2-22 (EURm) – Americas Key commentary EURm ▹ Significant revenue growth of EUR 18m, 43 % y-o-y – Positive currency translation effects of EUR 7m +35% – Attractive mix effects in c
Slide 12: Full exit from Russian operations through sale of JSC Elopak
Full exit from Russian operations through sale of JSC Elopak On 15th July 2022, Elopak announced the signing of an SPA to sell our Russian operations to local management Main transaction terms ▹ Local management to acquire 100% of shares St Petersburg ▹ From 15 July 2022, operational activities in (
Slide 13: Profitable Growth Drivers
Profitable Growth Drivers Commercial Excellence Plastic to Carton 5 Broaden Conversion Geographic Footprint 4 Margin Aseptic Growth optimization 3 Fresh Opportunity Roadmap Imagine carton Purchasing and in North America 2 launch value engineering Mid to Long 1 Growth on the back MENA: Profitable Non
Slide 14: Pure-Pak eSense carton roll-out
Pure-Pak® eSense carton roll-out A more environmentally friendly aseptic carton made without an aluminum layer Aluminum-free and instead made with a polyolefin blend barrier Up to 50% lower carbon footprint than a standard Pure-Pak® aseptic carton Unlocks the potential to be fully renewable A milest
Slide 15: Q2-22 Financial Performance
Q2-22 FINANCIAL PERFORMANCE CFO Bent Kilsund Axelsen
Slide 16: Satisfactory margins despite input cost headwind
Satisfactory margins despite input cost headwind Adj. EBITDA (EURm), CAGR (%) and Adj. EBITDA margin (%) Key commentary Group EMEA ▹ Margin pressure in the second quarter, -29% resulted in EBITDA margin 4.5 pp lower 14.3% 9.8% 14.4% 10.4% -34% than a very strong second quarter in 60 -22% 43 2021 31
Slide 17: Adjusted EBITDA, second quarter 2022
Adjusted EBITDA, second quarter 2022 EBITDA decline in second quarter 2022 compared to 2021, primarily due to higher input costs Quarterly Adjusted EBITDA (EURm) Key commentary ▹ Positive margin impact from revenue growth 11.7 ▹ Raw material prices remained high throughout -14.3 34.7 the second quar
Slide 18: Financial position
Financial position Leverage Ratio for second quarter 2022 at 3.4x Leverage Ratio Key commentary Net Debt Leverage Ratio (mEUR) ▹ Leverage Ratio of 3.4x as of second 400 363 4.5 quarter 2022, primarily driven by 345 347 340 dividend payment in May and lower 350 329 318 311 4.0 300 LTM EBITDA compared
Slide 19: Outlook
Outlook ▹ Revenues around EUR 1 billion ▹ Price increases implemented on our products will largely compensate for FY 2022 increased input costs – margins expected to improve towards the end of the year ▹ Supply chain challenges remain a concern going forward 18
Slide 20: Summary
Summary ▹ Despite challenging environment, Elopak continues to deliver growth and profitability, as we further develop the company ▹ We are in extraordinary times – Elopak is resilient and well positioned ▹ Strategy implementation on track; – Americas business delivering profitable growth – Integrat
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Slide 22: Appendix
APPENDIX
Slide 23: Financial calendar
Financial calendar Event Date Q3 2022 Financials 26 October 2022 Q4 2022 Financials 21 February 2023 Q1 2023 Financials 4 May 2023 Q2 2023 Financials 17 August 2023 Q3 2023 Financials 2 November 2023 22