Frigoglass S.a.i.c. · ATHEX:FRIGO
Frigoglass S.a.i.c — Investor Presentation (May 2013)
35 slides from Frigoglass S.a.i.c's investor presentation, May 2013
Slide 1: Investor Presentation
Investor Presentation May 2013 0 www.frigoglass.com
Slide 2: Disclaimer
Disclaimer This document and any related oral presentations are confidential and have been prepared by Frigoglass S.A.I.C. (the “Company”) solely for use at this presentation and may not be taken away, reproduced or redistributed to any other person. By attending this presentation, you are agreeing
Slide 3: Overview
Overview Frigoglass is currently 100% financed by bank loans Current Capital Structure x2012 xLTM (In €m unless noted otherwise) 2012 Mar-13 EBITDA EBITDA Cash and equivalents (77) (1.1x) (27) (0.4x) Short Term Debt 254 290 4.4x 5.0x Long Term Debt 46 29 Total Debt 300 4.4x 319 5.0x Net Debt 223 3
Slide 4: Today's Presenters
Today’s Presenters Torsten Tuerling Panos Tabourlos Chief Executive Officer Chief Financial Officer Pierre Boyer Lemonia Hanaki John Stamatakos Executive Director Head of Treasury Investor Relations ICM Europe & North America & Credit Control Manager 3 www.frigoglass.com
Slide 5: Introduction to Frigoglass
Introduction to Frigoglass 4 www.frigoglass.com
Slide 6: What We Do…Strategic Partner of Global Beverage Brands
What We Do…Strategic Partner of Global Beverage Brands Global Leader in Ice-Cold Merchandisers (ICM) Market Largest Glass Container Supplier in West Africa 79% of FY12 Group Revenues 21% of FY12 Group Revenues 59% of FY12 Group EBITDA 41% of FY12 Group EBITDA Growing Through Long Standing Relationsh
Slide 7: Customized and Diversified ICM Product Offering
Customized and Diversified ICM Product Offering Serving Different Channels Throughout the Retail Development Cycle Over 6,300,000 ICMs sold in the last 15 years We have provided >30% of the network’s needs worldwide (1) Note: (1) Since 1997, based on management estimates. 6 www.frigoglass.com
Slide 8: Diversified Glass Packaging Solutions
Diversified Glass Packaging Solutions Glass business benefits from strong ties with global beverage brands Leading supplier of glass containers in West Africa with established presence in Middle East – #1 in West Africa with 65% market share(1) Providing cross-selling opportunities with other
Slide 9: A Uniquely Positioned Global Leader
A Uniquely Positioned Global Leader Serving the Immediate Consumption Channel of the Beverage Industry, We Offer Superior Bespoke Ice Cold Merchandisers and Glass Containers that Enhance Customer Value FY2012 Sales Share by Geography of Customer FY2012 Sales by Business Unit Total sales: €581m Total
Slide 10: A Successful Growth Story
A Successful Growth Story Revenues (€m)1 700 Initially part of the industrial division of 600 Coca-Cola 555 581 Hellenic Bottling Company 501 500 Other (“CCH”), 461 457 Frigoglass formed as a spin off in 406 400 late 1996 347 Breweries 304 Revenue derived 300 from CCH down 256 to c.24% implying 209
Slide 11: Long Standing Relationships with Global Beverage Brands
Long Standing Relationships with Global Beverage Brands Length of 2012 Revenue Breakdown by Length of CCH & CC Other Breweries Relationship Customer Group Relationship Since Spin- off 7-10 Years Other 21% Coca-Cola Hellenic 24% 5 Years B.I.G. Other Breweries Coca-Cola 27% >10 Years 28% Length of Oth
Slide 12: Global, Growing ICM Service Business Supports Market Leadership
Global, Growing ICM Service Business Supports Market Leadership Services Revenues (€m) €40 €36 €33 €27 €24 €19 2007 2008 2009 2010 2011 2012 Service Scope: Maximises ICM asset utilisation Optimises costs of ownership Enables beverage companies to focus on core business ICM Service revenues h
Slide 13: Innovation Leadership
Innovation Leadership Continuous Energy HFC-free Energy Reduction and Improved HFC-free Full recyclability consumption insulation Performance refrigerants of units reduction processes Lower Unit Life-time Cost Reduce Carbon Footprint and Increase Sustainability 5 Global Innovation & Development Cent
Slide 14: Leading Market Position Where We Operate
Leading Market Position Where We Operate Global Geographic Footprint with Leading Positioning in High Growth Markets #1 W.Europe #1 >30% Market Share E.Europe >60% Market Share #2 North MENA (1) America #1 Africa >60% M.East Market Share Asia and Oceania Africa #1 India #1 W.Africa - Glass #1 >65% I
Slide 15: Corporate Strategy
Corporate Strategy 1 Grow with our global beverage clients Approximately €25m by 2 Improve working capital: inventory reduction initiatives 2014 Cost savings initiatives Approximately €20-25m by • Product cost optimization 3 • Production process optimization (Lean Manufacturing) 2016 (on EBITDA) • O
Slide 16: Shareholding
Shareholding Shareholder Composition (1) Truad Verwaltungs A.G. (“Truad”) Other Investors 16% Truad Truad is the primary trust for the Leventis Verwaltungs AG 44% family members Frigoglass Leventis family is also the leading 4% shareholder of the Coca-Cola Hellenic Bottling Company (market cap o
Slide 17: Industry Overview
Industry Overview 16 www.frigoglass.com
Slide 18: Industry Megatrends
Industry Megatrends Modernization of retail landscape and consumption patterns in 1 emerging markets Growing middle class and increasing disposable income in 2 Africa and Asia will drive beverage consumption Global Beverage Brands are 1 Expanding in Emerging and Developing Markets 3 Heavy investment
Slide 19: Modernisation of the Retail Landscape and Consumption Patterns
Modernisation of the Retail Landscape and Consumption Patterns Positive Correlation Between GDP/Capita Growth and Beverage Consumption Supports Consumption Growth Outlook in EMs Emerging Developed Western Northern Europe America Eastern Per Capita Consumption Europe Asia Africa 10K 20K GDP/Capita ($
Slide 20: Climate Change and Green Sustainability are Key Long-Term Drivers
Climate Change and Green Sustainability are Key Long-Term Drivers Carbon Footprint Contributors for Coca-Cola Enterprises (1) Beverage companies targeting low carbon intensity merchandising solutions Retailers seeking lower operational costs through energy requirements reduction 68.5% Sales and
Slide 21: Glass is the Preferred Packaging Solution in EMs
Glass is the Preferred Packaging Solution in EMs Glass Market is a Regional Market Due to High Costs to Ship Empty Glass Containers Driven by Region Specific Nigerian Beer Market: Strong Volume Development Dynamics (Million Hectolitres) 33 Glass is the preferred packaging solution in EMs 19 18 1
Slide 22: Frigoglass is Well Positioned to Capture Commercial Refrigeration Market Growth
Frigoglass is Well Positioned to Capture Commercial Refrigeration Market Growth Display Display Strong Growth of Display Cases in EMs Cases Cases (€bn) Industry Industry 04–11 04–11 11–16 CAGR CAGR CAGR € 4.5bn +3.9% +11.8% +5.0% 0.3 +6.8% +5.3% 0.3 +6.8% +30.6% +7.4% € 3.6bn € 3.2bn 0.2 1.6 +5.1% +
Slide 23: Financial Overview
Financial Overview 22 www.frigoglass.com
Slide 24: Most Recent Results: 1Q13 Highlights
Most Recent Results: 1Q13 Highlights Group ICM Operations Glass Operations All figures in €m Q1 12 Q1 13 FY12 All figures in €m Q1 12 Q1 13 FY12 All figures in €m Q1 12 Q1 13 FY12 Sales 159 141 581 Sales 133 108 459 Sales 26 32 122 Growth (%) 18% (12%) 5% Growth (%) 21% (18%) 2% Growth (%) 5% 22% 18
Slide 25: Q2 and FY13 Outlook
Q2 and FY13 Outlook 2Q13 Expect Group sales and EBITDA of around 2Q12 levels Continuing softness in European markets; however, expect higher year-on-year sales in Russia Significantly higher year-on-year sales in Glass business; currently operating at close to full capacity FY13 Expect a low
Slide 26: Historical Financial Performance
Historical Financial Performance Net Sales EBITDA Flexible cost base demonstrated by 2009 EBITDA reduction of 38% vs. revenue reduction of 31% €m €m 700 100 €91 90 €581 €86 600 €82 €555 €80 €15 80 €74 €501 €122 Glass €12 500 €104 €23 €466 70 €68 €457 €71 €28 €411 €59 €25 €82 60 400 €53 Glass €50 €34
Slide 27: High % of Variable Costs
High % of Variable Costs Variable costs are 2012 Revenue Breakdown(1) – 73% of sales – 82% of our total cost EBITDA 12% Other Fixed Variable Costs ICM operations are labour intensive due to highly 5% customised nature of the product, allowing us to Employee – Adapt output to sales 10% – Increase
Slide 28: Minimal Greek Risk
Minimal Greek Risk (in €m) 2012 (Consolidated Group) 2012 (Frigoglass S.A.I.C Parent) 1.6% of Net Sales is related to Net Sales 581 62 Greece (final destination of the product) COGS (481) (57) Opex (68) (25) €25m Operating Expenses of Frigoglass SAIC (Parent company) Other Operating Income 2 24 Mana
Slide 29: Historical Cash Flow Generation
Historical Cash Flow Generation (in €m) 2006 2007 2008 2009 2010 2011 2012 LTM 2013 EBITDA(1) 80 91 86 53 74 82 68 64 Cash Flow from Investing Activities (2) (13) (53) (38) (17) (29) (46) (41) (33) Change in NWC (12) (16) (28) 21 (22) (62) 48 35 Taxes Paid (14) (19) (14) (10) (14) (14) (10) (7) Free
Slide 30: Ratios
Ratios FY 2012 LTM 2013 EBITDA / Net Interest Expense 3.6x 3.5x Net Debt / EBITDA 3.3x 4.6x Net Debt as a % of (Debt + Total Book Equity) 60% 65% Note: EBITDA excludes losses from restructuring. 29 www.frigoglass.com
Slide 31: Frigoglass Investment Highlights
Frigoglass Investment Highlights 1 Global Market Leader Providing A Broad Range Of Highly Customised Solutions For The Beverage Industry 2 Product, Geographic And End-market Diversification 3 Strong And Long-standing Relationships With An Attractive Client Base 4 Proven Track Record Of Innovation, T
Slide 32: Appendix
Appendix 31 www.frigoglass.com
Slide 33: Divisional Financial Performance
Divisional Financial Performance ICM Europe and North America ICM Asia, Africa and Middle East Glass Operations: Revenue (€m) Revenue (€m) Revenue (€m) €336 €313 America €301 €278 €209 130 14 €250 119 Western 122 19 €174 €211 €164 Europe 101 7 103 75 €122 €137 72 €116 75 88 €104 26 €137 15 1 62 €82
Slide 34: Historical Income Statement
Historical Income Statement (in €m) FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 Sales 411 466 501 347 457 555 581 COGS (exc. Depr.) (287) (328) (368) (254) (331) (419) (455) Gross Profit 124 138 133 92 127 136 127 Opex (exc. Depr) (45) (50) (53) (42) (55) (58) (61) Other Income 2 2 6 3 2 3 2 EB
Slide 35: For further information on Frigoglass, please visit our website
For further information on Frigoglass, please visit our website at: www.frigoglass.com or contact: John Stamatakos Investor Relations Manager jstamatakos@frigoglass.com +30 210 61 65 767 Lemonia Hanaki Head of Treasury & Credit Control lhannaki@frigoglass.com +30 210 61 65 741 34 www.frigoglass.com
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