Albea Q1 2018 trading update VDER - albea-group.com · INNOVATION, DEVELOPMENT & DESIGN - Trading...
Transcript of Albea Q1 2018 trading update VDER - albea-group.com · INNOVATION, DEVELOPMENT & DESIGN - Trading...
Trading Update Q1 2018Albéa Group
GennevilliersMay 31, 2018
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COMPANYOVERVIEW
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Albéa is a global leader in beauty, personal care, oral care, pharmaceutical
and food packaging.
At a glance Albéa
15,500+EMPLOYEES
39INDUSTRIAL FACILITIES
IN 16COUNTRIESWORLDWIDE
$1.5BILLION
IN 2017 (+4% vs 2016)
$70MILLION
IN 2017
~200 PEOPLE
IN TOP 50 PATENTFILERS IN FRANCE
SALES INVESTMENTINNOVATION,
DEVELOPMENT & DESIGN
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of growth and expertiseA history
2004 2010 2011 2012
#1 IN PLASTIC TUBES #1 IN LAMINATE TUBES #1 IN COSMETIC RIGID PACKAGING
#2 IN DISPENSING SYSTEMS
2016
2004
Cebal and Techpack –
previously part of
Pechiney Emballages –
become Alcan Packaging
(AP) Beauty
July 2010
AP Beautyis acquired
by Sun Capital Partners
private equity fund
November 2010
AP Beauty
becomes Albéa
January 2011
Acquisition of Betts(laminate tubes)
November 2011
Acquisition of Eyelematic(decoration &
surface treatment) April 2012
Acquisition of Tex China(rigid cosmetic packaging)
December 2012
Acquisition of Rexam PC(rigid cosmetic packaging
& dispensing systems)
February 2016
Acquisition of
Silgan’s plastic tube
assets (North America)
August 2016
Acquisition of
Scandolara Tub-Estlaminate tube facility
(Slovakia)
March 2018
PAI Partnersprivate equity fund
is Albéa’s
new shareholder
February 2018
Acquisition of
Covit metal parts
expert (Spain)
2018
CONSOLIDATION
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Global reach, local presence39 facilities in 16 countries
Sales by regions
23 sites triple-certified
ISO9001 ISO14001
OHSAS18001
12 sites holdPharma/Foodspecifications
49%
37%
14%
Europe Americas Asia
SPAIN
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METAL
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(*) Cash and Availability position includes $98.9 million of net cash and $153.2 million of undrawn lines as of March 31, 2017 (it includes $85.3 million RCF undrawn)
(**) Net Debt (non-GAAP IFRS measure) , defined as total Albéa Gross Debt minus Cash and Cash equivalent as of March 31, 2018 at Albéa SA level . Net Debt does not include post PAI acquisitions impacts as equity/net debt IFRS classification still under review with auditors.
.
Key Organic Financials
� Q1 2018 Group Sales at $402.6 million, up 3.8% year-on-year at same rate and perimeter
� Q1 2018 Group EBITDA at $49.0 million, up 1.8% year-on-year at same rate and perimeter
� LTM Reported EBITDA of $194.7 million as of March 31, 2018
Cash and Liquidity
� Negative Operating Free Cash Flow of ($12.1) million in Q1 2018
� Total Cash and Availability (*) of $252.1 million as of March 31, 2018
� Net Debt (**) of $ 867.2 million as of March 31, 2018 excluding acquisition debt
Encouraging sales growth with still margin expansion in Q1 2018
Other
� Completion of COVIT acquisition the 27th February, 2018
7(*) 2017 sales/Adjusted Ebitda at 2018 rates
2018 sales/Adjusted Ebitda restated with perimeter effect
Q1 2018 Growth up by 3.8% driven by strong Europe and America
In $ million Q1 2018 Q1 2017 Delta
Organic sales (*) 402,6 388,1 3,8%
Europe 217,1 204,8 6,0%
America 144,1 140,4 2,6%
North america 120,7 119,4 1,1%
South America 23,4 21,0 11,4%
Asia 53,9 56,3 -4,2%
China & Hong Kong 29,7 35,0 -15,1%
Southeast Asia 24,2 21,3 13,6%
Perimeter effect (Covit) 1,6 1,6
FX translation effects 29,2
Organic Sales by segment (*) 402,6 388,1 3,8%
Tubes 178,0 166,2 7,1%
CRP 224,3 221,9 1,1%
Reported sales 404,2 358,9 12,6%
Organic Adjusted Ebitda (*) 49,0 48,1 1,8%
Europe 27,7 25,3 9,6%
America 21,3 21,2 0,3%
North america 16,1 17,7 -9,2%
South America 5,2 3,5 49,4%
Asia 6,6 6,4 3,1%
China & Hong Kong 2,1 4,0 -47,5%
Southeast Asia 4,5 2,3 89,9%
Perimeter effect (Covit) 0,3 0,6
FX translation effects 3,1
Organic Adjusted Ebitda by segment 49,0 48,1 1,8%
Tubes 25,2 23,3 8,2%
CRP 30,4 29,6 2,7%
Reported Adjusted Ebitda 49,3 45,0 9,4%
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Underlying negative Free Cash Flow impacted by the growth of our activity
Operating Free Cash flow is negative in Q1 impacted by :
� Significant growth on Sales (+ 3.8%) with temporary hit on Overdues
� Higher level of Inventories to secure good trend on Sales for the coming month
� Capex expenditures continue to be under close monitoring (3.9% of the sales in Q1)
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Cash Flow - Albéa Group Q1 2018 Q1 2017
Adjusted EBITDA 49,3 45,0
Trade WC (41,8) (15,5)
Capex (15,9) (13,1)
Restructuring (1,3) (1,5)
Other WC (2,4) 0,7
Operating Free Cash Flow (12,1) 15,6
Tax paid (5,1) (3,1)
Projects costs 0,1 (4,1)
Sun Management fees (0,8) (1,2)
Interest costs (2,0) (1,7)
Other (3,1) (2,2)
Underlying Free Cash Flow (22,9) 3,2
Shenzhen net disposal 3,2
Covit acquisition (23,2)
Repricing effects (*) 47,4
Free Cash Flow 1,3 6,4
(*) Positive realized forex USD 63 million, fees USD (2.2) million and interest paid in advance USD (13.5) million
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Adequate liquidity
In $ millionAs of Mar 31,
2018
Cash on hand Of which:- Europe- Americas- Asia
98.9 (*)
37.152.19.8
North America ABL facility amount 60.0
Facility borrowing base as of Mar. 31, 2017 55.3
Less amount utilised under NA ABL (3.0)
Additional FILO availability under NA ABL 4.7
North America ABL Net Availability 57.0
Europe Factoring facility amount 141.7
Facility borrowing base as of Mar. 31, 2017 26.2
Less amount utilised under EUR Factoring (15.3)
Europe A/R Net Availability 10.9
RCF Availability 85.3
Total Liquidity 252.1
(*) Excluding cash in Hercule holdings - Trading Update – Q1 2018
In $ million As of Mar 31,
2018
Consolidated Senior Secured Net Debt (*) 846,2
LTM Adjusted EBITDA 194,7
Leverage 4,35
(*) Consolidated Senior Net Debt Albéa Beauty Holding is calculated in accordance the definition disclosed in the Term Loan B Agreement
Leverage at 4.35x
PRODUCTS& MARKETS
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Cat’s Eyesfamiy
D.N.AirlessNew Actuators
Our latest product innovations
Ovation™ Reflexion™ tubes O2 Wall™ tubes Tear Drop Artist Bubble
Nea Platform SP22 Panache Pulse
Sofix Premia Fancy & SatinyFoam Actuators
Magic Lashes family
Parisian Kiss Skyline SticksMaestro Onyx & QuartzCompacts
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Hypnotic Lash Care brush Clarins – Teint Compact Haute Tenue Algenist - Hydrating Setting Mist
Proud of our achievementsAwards
Estée Lauder – Pure Color EnvyL’Oréal – Ice Tube Jean-Paul Gaultier - Scandal
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GOING FORWARD
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Our vision has remained unchangedThroughout our history,
We want to be
the best Beauty company
for all our stakeholders –
customers, employees, shareholders, suppliers, communities....
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Albéa Management Team
VP & GMBeauty
SolutionsLaurent
Bourgoin
Albéa CEO & PresidentFrançois Luscan
Executive VP, Global Business Services & Solutions
François Tassart
Executive VP, Human Resources & EHS
Axel Moreau
Executive VP, Americas
Jose Filipe
Executive VP & General Counsel, Company SecretaryCharles-Antoine Roucayrol
Executive VP, Transformation
Luc Rousselet
VP, Communications
Cécile Tuil
Executive VP, Tubes Arnaud Schuh
Executive VP, Cosmetic Rigid Packaging & Dispensing Systems
Guillaume de Demandolx
Executive VP, Beauty Solutions Xavier Leclerc de Hauteclocque
VP & GMDispensing
SystemsJoseFilipe
VP & GMChina
Michael Zhang
VP & GMCRP
EuropeSerge Darsat
VP & GMCRP
N. AmericaCarlosRubio
VP & GMBrazil
Rodrigo Brett
VP & GMTubes
EuropeFrederic Schryve
VP & GMTubes
N. AmericaRoy
Turner
VP & GMIndia
LesterPinto
VP & GMIndonesia
David Tanudisast
ro
Chief Financial Officer & Executive VP
Bruno Manac’h
Executive Committee
As of May 31, 2018
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PAI Partners – pan-European leader in Private EquityExperienced, committed and focused Fund has consistently delivered long-term performance
Sample of General Industrials Realised Investments
� Leading pan-European private equity firm and amongst the most experienced of its asset class
� Origins dating back to 1872 as the principal investment arm of Paribas; raising third party funds since 1998
� 8 offices across Europe and North America
� 60 experienced investment professionals of which 19 Partners have an average tenure at PAI of 16 years
� €13.8bn of capital raised to date and €8.4bn current AuM
� Our investors are global pension funds, insurance companies, governmental organisations, banks, fund of funds and HNW individuals
� Invests out of PAI Europe VI, a €3.3bn fund which closed in March 2015
� Since 1998, invested over €9.4bn in 63 buyout transaction across Europe with strong track record of outperformance for our investors
� Focuses on five core sectors, enabling deep sector knowledge
� Transformational investment strategy creating market leaders through consolidation and strategic partnerships
� Focused on markets where growth can be sustained through economic and financial market cycles
� Outstanding track record in General Industrials sector
� 11 Investments representing a total EV of €8.0bn accounting for some of the most successful PAI investments
Sample of other benchmark PAI Investments
VI
VIV
III
VI VIV
IV
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Organization chart –Post PAI Acquisition
Albéa Group structure – [March 31, 2018]
- Trading Update – Q1 2018
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