Refresco reports Q3 2018 results 20 November 2018 I Rotterdam, the - - PowerPoint PPT Presentation

Refresco reports Q3 2018 results

20 November 2018 I Rotterdam, the Netherlands

Financials

Agenda

• Refresco at a glance
• Q3 2018 highlights
• Financials
• Key take-aways
• Q&A

20-11-2018 Q3 2018 results

Refresco at a glance

TB

20-11-2018 Q3 2018 results

Q3 2018 highlights

• Volume 3,019 million liters (Q3 2017: 1,853 million liters).
• Gross profit margin per liter 13.5 euro cents (Q3 2017: 13.9 euro cents).
• Adjusted EBITDA increased to €97 million (Q3 2017: €61 million).
• Working capital improvement of €53 million vs. Q2 2018.
• Headwinds in packaging material costs & supply chain hiccups.
• Integration of Cott’s bottling activities well on track.

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Q3 & YTD 2018 Financials

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Key financials Q3 and YTD 2018

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In millions of € unless stated otherwise, (Unaudited) Q3 2018 Q3 2017 YTD 2018 YTD 2017 Volume (millions of liters) 3,019 1,853 8,332 5,579 Revenue 1,026 583 2,836 1,749 Gross profit margin 408 258 1,163 769 Gross profit margin per liter (euro cents) 13.5 13.9 14.0 13.8 EBITDA 84 48 162 151 Adjusted EBITDA 97 61 240 164 Net profit/(loss) 4 11 (60) 43 Adjusted net profit/(loss) 14 20 31 54 Net debt 2,400 597

1 The YTD 2018 financial information comprises the financial information of Refresco Group N.V. for the period January 1, 2018 - March 31, 2018 and the financial information of Sunshine Top B.V for the period April 1, 2018 - September 30, 2018. The YTD 2017 financial information relates to Refresco Group N.V. All values are rounded to the nearest million unless otherwise stated. 2 Cott's bottling business in North America and in the UK was consolidated in Refresco's financial information as of January 30, 2018. 3 2017 amounts for adjusted net profit have been adjusted so that tax effect is included 4 Net debt includes €100 million of shareholder funding.

Gross profit margin per liter

• Gross profit margin per liter

was 13.5 cents vs. 13.9 euro cents in Q3 2017 reflecting mix changes and impact of the acquisition of Cott’s bottling business.

• In line with the seasonal

pattern, the gross profit margin per liter is typically lower in Q2 & Q3.

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14.2 14.2 14.0 14.4 14.1 13.5

2 4 6 8 10 12 14

2015 2016 2017 Q1 2018 Q2 2018 Q3 2018 Gross margin per liter (in euro cents)

One-off acquisition costs and headwinds in input cost affected net results

In millions of € Unaudited YTD 2018 Transaction cost1 43 PPA (non-cash) 22 Integration & other cost 13 Breakdown of one-off costs

1 The transaction cost is related to the acquisition of Cott’s bottling activities and the acquisition of Refresco by PAI and BCI.

In millions of €, Unaudited Q3 2018 Q3 2017 YTD 2018 YTD 2017 Operating profit 45 25 54 80 D&A and impairment 39 23 108 71 EBITDA 84 48 162 151 One-off costs / (benefits) 13 13 78 14 Adjusted EBITDA 97 61 240 164 Adjusted net profit 14 20 31 54

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Balance sheet and financial position

• Continued strong cash position
• Net debt €2,400 million as of

September 30, 2018 includes €100 million shareholder funding.

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Unaudited1 Audited2 Unaudited2 In millions of € 30 September 2018 31 December 2017 30 September 2017 Total assets 4,485 1,928 1,956 Total non-current liabilities 2,657 800 808 Total current liabilities 946 572 604 Total equity 882 556 544 Cash and cash equivalents 198 146 150

• 1. Sunshine Top B.V

.

• 2. Refresco Group N.V

.

Cash flows

• Cash flows include the

acquisition of Cott’s bottling activities and take-over of Refresco by PAI & BCI

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In millions of €, Unaudited YTD 2018 YTD 2017 EBITDA 162 151 Working capital change 27 (5) Net cash operating activities 104 109 Net cash investing & acquisition activities (2,712) (63) Net cash financing activities 2,662 (34) Movement in cash 52 11

Working capital

• Working capital improvement
• f €53 million vs. Q2 2018.

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Working capital (€m)

2017

Q3 2018 results

2018

42 75 38 43 70 78 61 50 77 58 55 42 185 156 103

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2015 2016

Key takeaways

Key takeaways

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Q3 2018 results

Key takeaways

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Synergy realization well on track Headwinds in packaging materials Solid underlying volumes across the business Attractive market dynamics

Q3 2018 results

One-off acquisition costs impacted net results

Appendix: Reconciliation from operating profit to adjusted net profit

In millions of €, Unaudited Q3 2018 Q3 2017 YTD 2018 YTD 2017 Operating profit 45 25 54 80 Net finance cost (34) (5) (125) (16) Profit / (loss) before income tax 11 20 (71) 64 Income tax (expense) / benefit (6) (9) 16 (21) Minority interest (2)

• (5)
• Profit / (loss)

4 11 (60) 43 One off cost EBITDA 13 13 78 14 One off cost Finance cost

• 43
• Tax effect on one off costs

(3) (3) (30) (3) Adjusted net profit 14 20 31 54

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Appendix: Net debt as of September 30, 2018

In millions of € Amount Cash and cash equivalents 198 Senior notes (EUR) 445 Revolving Credit Facility (€200million) 1 90 Term Loan B (equiv.)2 1,977 Shareholder loan 100 Mortage Loan 20 Finance leases and other loans 3 Capitalized finance costs (41) Other loans 3 2,400

All values are rounded to the nearest million. 1 €90mm RCF was drawn in connection with the acquisition of Refresco by PAI & BCI. 2 Represents the euro-equivalent aggregate amount outstanding under the Term Loan B (denominated in EUR, USD and GBP) based on EUR/USD FX rate of 1.160 and on EUR/GBP FX rate of 0.888 as of September 30, 2018.20-11-2018

Q3 2018 results