presentación 4t19 v6 en v2 - viscofan · 2020. 3. 10. · africa asia pacífic latam europe north...

1January-December 2019 results

January– December 2019February 28, 2020


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<<<<<<<<1 MORE TO BE Progress

2 2019 Results

3 Initiatives and 2020 outlook


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2 2019 Results



Cellulose

Collagen

Plastics

Fibrous

Casings

market

Veggie

Technology

ServiceCost

Vision: The Casing Company

Leadership in the three key strategic axis

Reinforce

leadership in Cellulose and Collagen

Reach

leadesrship in

Plastics and Fibrous

A transformation to change the industry of casings

2019 Landmarks

Turnover record

Growth above the market

Exploring new opportunities

Acquisition of Nitta Casings


ServiceLargest commercial launch of new products: Natur, Veggie, Marathon, among others…

Diversification

Completion of the projectof a new cellulosetechnologyDevelopment of a new veggie technology

Higher productivespeedEmployeeproductivity

Cardiomesh. First implant in a human beingCommercialization of collagenhydrolysates

Sustainability Action Plan

Technology Cost

MORE TO BE 2019. Progression

2019

Proyectos


Russia

UK

Thailand

Costa Rica

USA

Nitta y Vector

Fibrous technology

improvement

Canada

Transform Pack

and Nitta

Mexico

Energetic model shift

Plastic production

stability

Uruguay

Higher capacity and

speed

Brazil

Higher converting capacity

Production stability

Germany

Veggie technology

Supralon

Production

improvement

Czech Republic

Improvement of productivity

4.0 Industry - converting

Serbia

Small-caliber collagen

capacity.

Large-caliber collagen

technology improvement

France

Supralon

Belgium

Vector

Spain

New cellulose and

fibrous technology

Increased collagen

capacity

Australia and New Zealand

China

Self-sufficiency

Higher flexibility and

production speed

MORE TO BE 2016-2019. A renewed industrial park, more efficient and global.

2016-2019

Progress


1.45

2016

54%

2017

1.55

60%

1.60

2018

59%Ordinary remuneration

Pay-out*

1.35

2015

52%

+1.3%

+20.0%

2019 vs. 2015

MORE TO BE. Increasing shareholder remuneration

1.62

2019

71%

ORDINARY DIVIDEND(€ per share)

+€5.3 Millon

cancellation of treasury shares in 2019

€0.13 Extraordinary dividend

8January – December 2019 results

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2 2019 Results



Revenue

EBITDA

EBITDA margin

Operating profit

Net Profit

2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.

Recurring 1

1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and NittaCasings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businessesfrom the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.

€ million Guidance

+5.9%

+0.5%

-1.2 p.p.

849.7 +8.1%

2019 % y-o-y

198.0 +4.4%

23.3% -0.8 p.p.

127.4 +0.1 %

101.5 -6.4%

% y-o-yLike-for-like2

Profit before taxes 127.2 -0.9 %

Taxes -25.7 +29.6 %

Outperformance

In line

In line

2019Main financial figures


Business combinationnet of relate expenses

Goodwill impairment

Strike in the USA

Mivisa claim

Million € 2018

+€3.7Mn

EBITDA contribution

Net Profit contribution

+€15.4Mn

+€19.1Mn

+€15.3Mn

Globus

2019

+€8.7Mn

-€3.5Mn

-€2.3Mn

+€2.9Mn

+€4.1Mn

NittaCasings

Non-recurring impacts


New all-time in revenue driven by volume growth in all technologies, price/mix improvement, Globus and forex strength.


REVENUE 2019.Growth contribution (€ million)

849.7

786.0

2018 Guidance

July

ForexCo-generationLike-for-like 1

casings

+46.4MN

2019 vs. 2018

+8.1%

+0.1MN+17.1MN

+5.9 p.p. +0.0 p.p. +2.2 p.p.

2019

825/840

Guidance

February

833/850


EUROPE AND ASIA PACIFIC

NORTH AMERICA LATAM

56.5%

14.9%

+7.3% +8.6% +10.3%+3.2%+6.3% +9.7%

vs. 2018 vs. 2018 vs. 2018 Like-for-like2Like-for-like2Like-for-like2

126.4114.6

243.1223.8

2018 2019 2018 2019 2018 2019

480.1447.6

REVENUE 2019. Breakdown by geographical area 1 (€ million) +8.1% +5.9%

vs. 2018 Like-for-like2

1 Revenue per origin of sales. 2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts.

GROUP

Growth in all reporting areas combining volumes and price/mix growth.

28.6%


1Q 3Q

2018 2019

CO-GENERATION REVENUE (€ million)

10.5

REVENUE. Viscofan Group (€ million)

2Q1Q 3Q 4Q

2Q1Q 3Q 4Q

2Q

CASING SALES (€ million)

2018 2019

177.3

4T

187.8

197.9

186.8

11.1

192.2

180.3

11.9

197.0

11.2

201.2

191.2

10.0

197.0

11.6

208.6 208.2

204.4

11.6

215.9 +3.1%

+3.7%223.9

vs. 4Q18+7.5%

211.9+3.7%

vs. 4Q18+7.6%

12.0

vs. 4Q18+6.9%

Speeding up revenue in the second half of the year…


ForexCo-generation

REVENUE.Quarterly growth contribution


Like-for-like1

casings

- 0.3p.p.+2.1p.p.

+ 2.9p.p.+4.6p.p.

+3.1p.p.

+0.2p.p.

1Q 2Q 1Q 2Q 1Q 2Q

vs. 4Q18

+6.3%

Like-for-like14Q19 +7.5%

+10.0p.p.

3Q 3Q

-0.2p.p.

+ 2.6p.p.

3Q

+6.0p.p.

4Q

+0.3 p.p.

4Q

+ 1.2p.p.

4Q

…driven by higher volume and price.


Europe, Asia and Pacific

REVENUE. Quarterly change

Like-for-like1Reported

2.5%4.2%

13.7%

8.7%

1Q 2Q 3Q 4Q

1.2%

3.5%

12.9%

7.7%

1Q 2Q 3Q 4Q

Volume recovery consolidation

in China, pig gut susbtitution

Progress in Continental Europe


Growing in Europe and Asia


North America



Recovery in cellulose volume

Growth in collagen products


10.6%

7.5%8.8%

7.8%

2.9%1.7%

4.1% 4.3%

Growing in North America

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q


Latam



Demanding comparative base

due to the strong volumes

performance in 4Q18

Maintaining a solid

performance with higher

volumes in all technologies


19.1%

6.1%

14.7%

2.4%

19.6%

5.9%

9.9%

4.3%

Growing in Latam

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q


2 Cost of consumption = Net purchases +/- Change in inventories of finished and unfinished products.

Revenue Cost of consumption2

Personnelcosts

Other operatingcosts

Revenuelike-for-like1

EBITDAlike-for-like1

D&A Recurring3

EBIT

Revenue growth offsets higher energy costs and wage inflation.

+6.4%

+0.4%

+19.4%

+13.2%

+0.1%

+8.1%+4.4%

1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.

+5.9%

+0.5%

P&L 2019. % year-on-year change

Recurring3

EBITDA

3 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) and Nitta Casings Canada Inc., theimpairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combination of businesses from the acquisition of the Globus companies inAustralia and New Zealand, and the lawsuit with Mivisa.

• Energy costs and CO2 emission

allowances (+14.4% vs. 2018)• Globus incorporation• Growth mix

EBITDA

-3.7%

• Investments in thenew Cáseda plant


46.3

48.6

44.6

50.3

45.9

48.9

1Q 2Q 3Q 4Q

2018

Quarterly recurring1 EBITDA. (€ million)

2019

1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) andNitta Casings Canada Inc., the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combinationof businesses from the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.

50.852.5

-0.8% -8.3%

vs. 1Q18 Like-for-like2

+0.7% -1.7%vs. 2Q18 Like-for-like2

+13.8%+9.5%


+4.4%+2.8%


Recovering profitability in the second half of the year…

2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.


Recurring1 EBITDA 2019. y-o-y growth contribution (€ million)

189.7

2018

Like-for-like 2

+1.0MN

+0.5 p.p.

Forex

+7.3MN

+3.9 p.p.

2019

198.0

+4.4%

2019 vs. 2018

… offsetting a lower growth in the first half of the year.

1 Recurring results. Exclude non-recurring impacts in operating profit, +€2.9 million in 2019 arising from the business combination from the acquisition of Nitta Casings Inc. (USA) andNitta Casings Canada Inc, the impairment of goodwill for Nanopack Technology & Packaging S.L. and the impact of the strike in the U.S. In 2018 +€19.1 million from the combinationof businesses from the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa.2 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates in 2019 and non-recurring impacts.


The main transformation projects are on track

CAPEX 2016-2019. Breakdown by type (€ million)

Capacity Processupgrade

Others EHS*

CAPEX 2019. Breakdown by region (€ million)

Spain

Other Europe, Asia Pacific

Latam

North America

12%

45%

32%

11%

71,6

€62,1Mn

*Environment, Health and Safety

62,1

86,7

107,2

2016 2017 2018 2019


79,

7

-198.0

26.7

62.1 -6.1 1.5

74.3

6.5 -4.1

42.5 19.3

27.689.4

Net bankdebt1 Dec’18

Capex

Workingcapital change

Forex and others

Acquisitions Share buyback

Directshareholder

remuneration3

Net bankdebt1 Dec’19

Leasing

IFRS 16

Other net

financial

liabilities

Net financial

debt 2

Dec’19

79.6

RecurringEBITDA

Tax paid

Results strength, lower capex needs and the reduction in working capital lead to lowerindebteness.

2 Net financial debt= Net bank debt + Non-current and current other financial liabilities + IFRS 16Leasing impact – Non-current and current financial assets.

3Direct remuneration: Includes €0.95 per share 2018 FY final dividend paid in June 2019 and €0.65 per share 2019 FY interim dividend paid in December 2019

1 Net bank debt = Non-current bank borrowings + Current bank borrowings – Cash and equivalents.

NET BANK1AND NET FINANCIAL DEBT2 bridge (€ million)


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2 2019 Results



Acquisition EV: €12.8 Mn 2020e figures: Revenue €33 Mn, EBITDA €1 Mn, Capex €6 Mn

€

€3/4 Mn savings goal in 2021Higher sproduction speed, lower waste, savings in RawMaterials and Other Operating expenses

Collagen casings leadership in the USViscofan + Nitta Casings

Completing our footprintCollagen casings, coextrusion and biomaterials

Nitta Casings acquisition drives up our positioning and leadership in collagen casings.


Extrusion Converting Served market

All markets benefit from a local service thanks to our global presence in collagen casings


CelluloseCollagen Fibrous Plastic

VISCOFAN´S FOOTPRINT. Available capacity

Africa

Asia

Pacífic

Latam

Europe

North

America

Vegetable

Extrusion Converting Long term

“share”

opportunity

Long term

"growth”

opportunity

We have built the most comprehensive commercial and productive footprint of the market.


Higher animal protein consumptionFAO: Annual estimated growth at 1/2% in 2020-2025

Searchig for a larger product offerFeeding habits globalization

Searching for industralizationUncertainty and inflation in animal gut supply

Emerging areas. Focused on organic growth

Casings market in €

30%

33%

24%

11%2%

North America

Europe

Asia

LatamAfrica


Global footprintFacilities and broad commercial experience in Asia and Latam

The only one with the main technologiesThe largest product portfolio in the industry, more than13,000 sold references in 2019

Suitable product to replace pig gutNatur casing launched in May 2019.

Viscofan´s approach

Emerging areas. Focused on organic growth

Higher animal protein consumptionFAO: Annual estimated growth at 1/2% in 2020-2025

Searchig for a larger product offerFeeding habits globalization

Searching for industralizationUncertainty and inflation in animal gut supply


Consumer looking for “convenience”Higher variety, flavours, food safety, health,…

Higher vegetable proteinMore vegetarian, vegan and flexitarian

Searching high added value productsto save on costs, production stages and to offer a widerproduct portfolio.

Developed areas. Focused on high value addedproducts

Casings market in €

30%

33%

24%

11%2%

North America

Europe

Asia

LatamAfrica


More casings varietyEg) New casings transfering flavours, aromas, colours, …

New Veggie technologySales growth and great acceptance in the market

Viscofan´s approach

Consumer looking for “convenience”Higher variety, flavours, food safey, health,…

Higher vegetable proteinMore vegetarian, vegan and flexitarian

Searching high added value productsto save on costs, production stages and to offer a widerproduct portfolio.

Developed areas. Focused on high added value products

The only one with the main technologiesThe largest product portfolio in the industry, more than13,000 sold references in 2019


Diversification and new products

MarathonNaturFunctional

solutions

Sustainable

plasticsVeggie

Take production

yields to the next

level with

extra-long sticks

Collagen casings

with extra glossy

appearance

and superior

productivity.

A natural,

edible choice

Casings adding

new colour,

flavour, and

species in food

Casings with reduced

thickness and

developmentof a

natural-based casing

Titanium

fibrousThe next

generation of

fibrous casing


Soluble Collagen Hydrolysate. Nutritional supplement to improve the health of the skin, bones or joints

Collagen hydrolysate plant installed in Weinheim

Commercial drive through distributors.

Device safety test phaseA sample of 10 patients with myocardial insufficiency

Expanding borders with new uses of collagen


Cáseda. The best technology in the industry in cellulose and fibrous has become a reality

€86 million investmentCarried out in the period 2016-2019

Cellulose. Producing 50% of the Group total capacityYear-on-year savings of €10 million + Improvements in the learning curve

Fibrous. Looking for leadership……in a market worth €300 Mn with a better product, technology and time-to-market to the European customers


2015 2016 2017 2018 2019

694.7 691.2

734.1 741.4

804.5

CASINGS REVENUE AND MARKET SHARE (€ million)

30%

36%

NittaCasings

+4 p.p.Viscofan´s market share gain

34%

2%

A stronger leader…


100 99

106107

116

96

10199

103

94

98 9495

2015 2016 2017 2018 2019 e**

Top 6 players

Top 6 ex Viscofan

CASINGS PLAYERS* REVENUE (Base 100 year 2015)

* IncludesViscofan, Viskase, Devro, Kalle, Visko Teepak and Shenguan

** Results release and internal estimates

…in a growing market.


10095

99 9894

87 88

78

72

78 77

58

49

2015 2016 2017 2018 2019 e**

CASINGS PLAYERS* EBITDA (Base 100 year 2015)

Top 6 players

Top 6 ex Viscofan

Improving leadership also in EBITDA within and adverse environment.

* IncludesViscofan, Viskase, Devro, Kalle, Visko Teepak and Shenguan

** Results release and internal estimates


Rawmaterialsstability

Improvement of the efficiency of plants

New technologyin Cáseda

Integration of acquiredcompanies

Optimise

operations

Challenge

Challenge 2020. Optimise our operations and improve our margins


Capacity

27%

Processupgrade

19%

Recurring

28% 26%

€54MnCapex 2020e

Sustainability

Adapting cogeneration engines for hydrogen fuel

Water treatment plant expansion in Cáseda

Use of non-fossil gases

Safety and ergonomics projects

CAPEX BREAKDOWN 2020e (€ million)

Optimising our operations


A year characterized by cash flow expansion.

204 211 209 201

215-220

EBITDA - CAPEXOperating Cash Flow (Mn €) =

OPERATING CASH FLOW (€ Million)

117 104 137 >160

87

107

7262

2016 2017 2018 2019 2020e

139

54

+16%vs 2019


33

1

-1

6

870-888(+2%/4%)

214-219(+6%/9%)

113-116(+7%/10%)

48(-23%)

Guidance 2020

Revenue

EBITDA

Net Profit

Capex

Million € Nitta CasingsTraditional Viscofan

903-921(+6%/8%)

215-220(+7%/9%)

112-115(+6%/9%)

54(-13%)

Viscofan Group

US$/€: 1.13


The acquisition of Nitta Casings reinforces our leadership in collagen casings and completes our productive portfolio in North America.

Robust finantial position and shareholder remuneration

A unique position in the industry that makes us await revenue, EBITDA and net result growth for 2020, together with a lower need for investment.

Conclusions

New all-time high in annual revenue led by the exceptional performance in the second half of the year that allow us to keep gaining market share.

We have carried out a transformation that puts us in a unique position for the future of the Group at the same time as we continue taking advantage of growth opportunities in the casing market and other business.


Reported

+6.3%

+2.8%

-0.8p.p.

223.9 +7.5%

4Q19 % y-o-y

52.5 +4.4%

23.5% -0.7p.p.

35.3 +3.1%

27.1 -10.3%

4Q19 % y-o-y

223.9 +7.5%

57.7 +5.3%

25.8% -0.5p.p.

40.5 +4.5%

32.9 -6.0%

Recurring 1

Revenue

EBITDA

EBITDA margin

Operating profit

Net profit

% y-o-yLike-for-like 2

Appendix. 4Q19. Main financial figures

(€ million)




Reported

+5.9%

+0.5%

-1.2p.p.

849.7 +8.1%

2019 % y-o-y

198.0 +4.4%

23.3% -0.8p.p.

127.4 +0.1%

101.5 -6.4%

2019 % y-o-y

849.7 +8.1%

201.0 -3.7%

23.7% -2.9p.p.

130.3 -11.0%

105.6 -14.7%

Recurring 1

Revenue

EBITDA

EBITDA margin

Operating profit

Net profit

% y-o-yLike-for-like 2

Appendix. 2019. Main financial figures

(€ million)




Appendix. Alternative Performance MeasuresThe Alternative Performance Measures included in this report are as follows:

• The EBITDA, or operating profit before depreciation and amortisation, is calculated excluding depreciation and amortisation costs from the operating profit. The EBITDA is a measure that is commonly reported and widespread among analysts, investors and other stakeholders in the casing industry. The Viscofan Group uses this measure to monitor the business' development and to establish operational and strategic objectives in Group companies. However, it is not a defined indicator in IFRS and, therefore, it may not be compared with other similar indicators employed by other companies in their reports.

• Cost of consumption: This is calculated as the net amount of supplies plus the change in finished and unfinished products. Management monitors cost of consumption as one of the main cost components for Viscofan. The weight of net revenue for this cost component on revenue or gross margin is also analysed to study the operating margin's development. However, it is not a defined indicator in IFRS and cost of consumption must not be considered a substitute for the different items in the profit and loss account that comprise them. Furthermore, it may not be compared with other similar indicators employed by other companies in their reports.

• Net bank debt: This is calculated as non-current borrowings plus current borrowings netted from cash and cash equivalents. Management considers net bank debt to be relevant to shareholders and other stakeholders as it provides an analysis of the Group's solvency. However, net bank debt should not be considered a substitute for gross bank debt in the consolidated balance sheet, nor other liability or asset items that may affect the Group's solvency.

• Like-for-like revenue and EBITDA: This measure excludes the impact of exchange rate variations on the comparable previous period and the non-recurring impacts of the business in order to present a homogeneous comparison of the Viscofan Group's development. However, like-for-like revenue and EBITDA are not defined indicators in IFRS and, therefore, they may not be compared with other similar indicators employed by other companies in their reports, nor may they be considered a substitute for the business development indicators defined in IFRS.


Appendix. Disclaimer

This document may include statements about intentions, expectations or forecasts of the Company additional to the mandatory financial reporting whose sole purpose is to provide information more accurately about the perspectives of future behaviours.

Such intentions, expectations or forecasts do not constitute any guaranties of compliance and involve risks, uncertainties and other relevant factors that could cause actual developments and results to differ materially from those states in such forward-looking statements.

This circumstance must be taken into account mainly for all persons or entities that may have to take decision, develop or spread opinions relative to values issued by the Company and particularly by analysts and investors that handle this document.

The financial statements contained in this document have been prepared under International Financial Reporting Standards (IFRS). This financial statements has not been audited and consequently is susceptible to potential future modifications.

presentación 4t19 v6 en v2 - viscofan · 2020. 3. 10. · africa asia pacífic latam europe north...

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