January December 2019 February 28, 2020 January-December 2019 - PowerPoint PPT Presentation

January– December 2019 February 28, 2020 January-December 2019 results 1

1 MORE TO BE Progress <<<<<<< < 2 2019 Results <<<<<<< < 3 Initiatives and 2020 outlook <<<<<<< < January-December 2019 results 2

1 MORE TO BE Progress <<<<<<< < 2 2019 Results <<<<<<< < 3 Initiatives and 2020 outlook <<<<<<< < January-December 2019 results 3

A transformation to change the industry of casings Vision: Leadership in the 2019 Landmarks The Casing Company three key strategic axis Turnover record Veggie Growth above the market Exploring new opportunities Technology Cellulose Acquisition of Nitta Casings Casings Plastics market Cost Service Fibrous Collagen Reinforce Reach leadership in leadesrship in Cellulose and Plastics and Collagen Fibrous January-December 2019 results 4

MORE TO BE 2019. Progression Proyectos 2019 Technology Cost Completion of the project Higher productive Sustainability Action Plan of a new cellulose speed technology Employee Development of a new productivity veggie technology Diversification Service Largest commercial launch of new Cardiomesh. First implant in a products: Natur, Veggie, human being Marathon, among others… Commercialization of collagen hydrolysates January-December 2019 results 5

MORE TO BE 2016-2019. A renewed industrial park, more efficient and global. Belgium 2016-2019 Vector Australia and New Zealand UK Russia Progress France Canada Spain Supralon Transform Pack New cellulose and Thailand and Nitta fibrous technology Increased collagen USA capacity China Nittay Vector Self-sufficiency Germany Fibrous technology Higher flexibility and Veggie technology improvement production speed Supralon Serbia Production Small-caliber collagen improvement capacity. Large-caliber collagen technology improvement Czech Republic Brazil Mexico Costa Rica Improvement of productivity Higher converting capacity Energetic model shift 4.0 Industry - converting Production stability Plastic production Uruguay stability Higher capacity and speed January-December 2019 results 6

MORE TO BE. Increasing shareholder remuneration ORDINARY DIVIDEND (€ per share) +20.0 % 2019 vs. 2015 +1.3 % 1.62 1.60 +€5.3 Millon 1.55 cancellation of 1.45 treasury shares in 1.35 2019 2015 2016 2017 2018 2019 Pay-out* 71% 52% 54% 59% 60% Ordinary remuneration €0.13 Extraordinary dividend January-December 2019 results 7

1 MORE TO BE Progress <<<<<<< < 2 2019 Results <<<<<<< < 3 Initiatives and 2020 outlook <<<<<<< < January – December 2019 results 8

2019 Main financial figures Recurring 1 % y-o-y % y-o-y Guidance € million 2019 Like-for-like 2 Revenue 849.7 +8.1% +5.9% Outperformance EBITDA 198.0 +4.4% +0.5% In line EBITDA margin 23.3% -0.8 p.p. -1.2 p.p. Operating profit 127.4 +0.1 % Profit before taxes 127.2 -0.9 % Taxes -25.7 +29.6 % In line Net Profit 101.5 -6.4% 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 Nitta 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 combination of 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 and non-recurring impacts. January – December 2019 results 9

Non-recurring impacts 2018 Million € 2019 Business combination +€8.7Mn +€3.7Mn net of relate expenses NittaCasings Globus Goodwill impairment -€3.5Mn Strike in the USA -€2.3Mn Mivisa claim +€15.4Mn +€2.9Mn +€19.1Mn EBITDA contribution +€4.1Mn +€15.3Mn Net Profit contribution January – December 2019 results 10

New all-time in revenue driven by volume growth in all technologies, price/mix improvement, Globus and forex strength. REVENUE 2019 . Growth contribution (€ million) +8.1 %  2019 vs. 2018 + 17.1 MN + 46.4 MN + 0.1 MN 849.7 833/850 825/840 786.0  + 5.9 p.p. + 0.0 p.p. + 2.2 p.p. Like-for-like 1 Forex Co-generation casings 2018 Guidance Guidance 2019 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts. July February January – December 2019 results 11

Growth in all reporting areas combining volumes and price/mix growth. REVENUE 2019. Breakdown by geographical area 1 (€ million) + 8.1 % + 5.9 % GROUP Like-for-like 2 vs. 2018 56.5% 28.6% EUROPE AND NORTH AMERICA LATAM ASIA PACIFIC 14.9% + 7.3 % +6.3 % + 8.6 % +3.2 % + 10.3 % + 9.7 % Like-for-like 2 Like-for-like 2 Like-for-like 2 vs. 2018 vs. 2018 vs. 2018 480.1 447.6 243.1 223.8 126.4 114.6 2018 2019 2018 2019 2018 2019 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. January – December 2019 results 12

Speeding up revenue in the second half of the year… REVENUE . Viscofan Group (€ million) CASING SALES (€ million) 211.9 +3.7 % 223.9 204.4 +3.7 % 197.0 197.0 +3.1 % 215.9 191.2 186.8 208.2 208.6 180.3 201.2 177.3 197.9 192.2 187.8 + 7.6 % vs. 4Q18 1Q 2Q 3Q 4Q + 7.5 % CO-GENERATION REVENUE (€ million) vs. 4Q18 12.0 11.9 11.6 11.6 11.1 11.2 10.5 10.0 1Q 2Q 3Q 4Q 2018 2019 + 6.9 % 2Q 3Q 4T 1Q vs. 4Q18 2018 2019 January – December 2019 results 13

…driven by higher volume and price. REVENUE. Quarterly growth contribution + 7.5 % + 6.3 % 4Q19 Like-for-like 1 vs. 4Q18 + 10.0 p.p. + 6.0 p.p. + 4.6 p.p. + 3.1 p.p. + 2.9 p.p. + 2.6 p.p. +2.1 p.p. + 1.2 p.p. + 0.3 p.p. + 0.2 p.p. - 0.3 p.p. - 0.2 p.p. 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Like-for-like 1 Co-generation Forex casings 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts. January – December 2019 results 14

Growing in Europe and Asia REVENUE . Quarterly change Europe, Asia and Pacific Reported Like-for-like 1 13.7% Volume recovery consolidation 12.9% in China, pig gut susbtitution 8.7% Progress in Continental Europe 7.7% 4.2% 3.5% 2.5% 1.2% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts. January – December 2019 results 15

Growing in North America REVENUE . Quarterly change North America Reported Like-for-like 1 Recovery in cellulose volume 10.6% Growth in collagen products 8.8% 7.8% 7.5% 4.1% 4.3% 2.9% 1.7% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts. January – December 2019 results 16

Growing in Latam REVENUE . Quarterly change Latam Reported Like-for-like 1 Demanding comparative base due to the strong volumes 19.6% 19.1% performance in 4Q18 14.7% Maintaining a solid performance with higher 9.9% volumes in all technologies 5.9% 6.1% 4.3% 2.4% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1 Like-for-like: For comparative purposes, like-for-like growth excludes the impact of the different exchange rates and non-recurring impacts. January – December 2019 results 17

Revenue growth offsets higher energy costs and wage inflation. P&L 2019. % year-on-year change • Energy costs and CO 2 emission • Investments in the allowances ( +14.4% vs. 2018) new Cáseda plant • Globus incorporation + 19.4 % • Growth mix + 13.2 % + 8.1 % + 6.4 % + 5.9 % +4.4 % + 0.1 % +0.5 % + 0.4 % -3.7 % Revenue Revenue Cost of Recurring 3 Recurring 3 Personnel Other operating EBITDA EBITDA D&A like-for-like 1 consumption 2 like-for-like 1 EBIT costs costs EBITDA 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. 2 Cost of consumption = Net purchases +/- Change in inventories of finished and unfinished products. 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., 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 businesses from the acquisition of the Globus companies in Australia and New Zealand, and the lawsuit with Mivisa. January – December 2019 results 18