Cloetta - Interim Report Q4 2015 – Presentation

15
Q4 2015 results 18 February 2016 David Nuutinen, CEO Danko Maras, CFO Jacob Broberg, SVP IR

Transcript of Cloetta - Interim Report Q4 2015 – Presentation

Title

Arial, Bold, 40 pt, red

Subtitle

Arial, Bold, 40 pt, grey

Q4 2015 results – 18 February 2016

David Nuutinen, CEO

Danko Maras, CFO

Jacob Broberg, SVP IR

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Q4 highlights

2

Strong cash flow, decreased debt and proposed dividend

• Net sales for the quarter increased by 2.7 per cent to SEK 1,622m (1,579). For

the full year 2015 net sales increased by 6.8 per cent to SEK 5,674m (5,313).

• Operating profit was SEK 239m (262). For the full year 2015 operating profit

improved to SEK 671m (577).

• Operating profit, adjusted was SEK 255m (257). For the full year 2015

operating profit, adjusted improved to SEK 690m (632).

• Cash flow from operating activities improved to SEK 367m (290). For the

full year cash flow from operating activities improved to SEK 927m (500).

• Net debt/EBITDA was 3.03x (3.97).

• The Board proposes a dividend of SEK 0.50 (-) per share.

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Overall market and sales development

Total sales growth of 2.7 per cent

• Positive to flat total market developments, except

seasonal products in Italy

• Organic growth -2.3 per cent for the quarter.

Excluding Italy, organic growth was 1.8 per cent

• Sales grew or was unchanged in all markets

except Italy, Denmark and UK.

• Positive sales trend in Sweden and Finland

driven by pick-and-mix.

• In Denmark sales of pastilles declined.

• Decline in Italy driven by a sharp decrease in

seasonal sales due to price increases to off-set

raw material price increases.

3

Cloetta´s main markets

Net sales and EBIT

4

1) Organic growth at constant exchange rates and comparable units -2.3% for the quarter and 1.5% for the year.

SEKm Oct-Dec

2015

Margin

%

Change

%

Oct-Dec

2014

Margin

%

Full year

2015

Full year

2014

Net sales 1,622 2.71 1,579 5,674 5,313

Operating profit, adjusted 255 15.7 -0.8 257 16.3 690 632

Operating profit (EBIT) 239 14.7 -8.8 262 16.6 671 577

Profit for the period 157 -0.6 158 386 242

Changes in net sales

5

Changes in net sales, % Oct-Dec

2015

Oct-Dec

2014

Full year

2015

Full year

2014

Organic growth -2.3% 1.7% 1.5% 1.0%

Structural changes 4.8% 4.8% 3.9% 4.3%

Changes in exchange rates 0.2% 3.1% 1.4% 3.3%

Total 2.7% 9.6% 6.8% 8.6%

-4,1%

1,4% 1,6%

0,6%

2,2%

-0,6%

1,7%

4,0%

0,8%

4,2%

-2,3%

3,0% 3,6%

5,8%

4,8%

2,7%

1,2%

6,6%

4,8%

4 200

4 400

4 600

4 800

5 000

5 200

5 400

5 600

5 800

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015

Organic growth, %

Structural changes, %

Net Sales LTM

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Net sales, Operating profit (EBIT) and

Operating profit, adjusted

6

Net sales Operating profit (EBIT) Operating profit, adjusted

1193 1 238

1 303

1 579

1 313 1280

1459

1622

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

Q1 Q2 Q3 Q4

SE

Km

2014 2015

52

85

178

262

90

130

212

239

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

2014 2015

74

108

193

257

108

133

194

255

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

2014 2015

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

-16 -23

54

116 91

44

75

290

223

163 174

367

-50

0

50

100

150

200

250

300

350

400

Q1 Q2 Q3 Q4

SE

Km

2013 2014 2015

Strong cash flow from operating activities

7

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Cash flow 8

SEKm Oct-Dec

2015

Oct-Dec

2014

Full year

2015

Full year

2014

Cash flow from operating activities before changes in working

capital

295 267 697 492

Cash flow from changes in working capital 72 23 230 8

Cash flow from operating activities 367 290 927 500

Cash flows from investments in property, plant and equipment

and intangible assets

-48 -64 -161 -182

Cash flow from other investing activities - 4 -206 -187

Cash flow from investing activities -48 -60 -367 -369

Cash flow from operating and investing activities 319 230 560 131

Cash flow from financing activities -211 -114 -518 -24

Cash flow for the period 108 116 42 107

2,0

2,5

3,0

3,5

4,0

4,5

5,0

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

9

Financial leverage

Net debt/EBITDA, x

Target

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Cloetta stands strong

10

Dividend of SEK 0.50 (-) per share proposed

• Improved EBITDA and very strong cash flow for the year.

– Cash flow from operating activities improved to SEK 927m (500).

• Net debt/EBITDA decreased to 3.03x (3.97).

– Well on track towards the target of Net debt/EBITDA of 2.5x

• The Board proposes a dividend of SEK 0.50 (-) per share

• Ambition is to use future cash flows for repayment of debts and payment of share

dividend, while at the same time providing financial flexibility for complementary

acquisitions.

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Integration of Lonka according to plan

11

Will in 2017 support Cloetta’s margin target of 14%

• Decision to close the factory in Dieren, the Netherlands and transfer

production to Levice, Slovakia

– One-off costs and capital investments of approximately SEK 120m

• Joint sales and marketing organisation created in the Netherlands

• Savings from the closure of the factory in Dieren, insourcing of

production and synergies will generate savings of at least SEK 35m

• Plans for how to operate and launch Lonka in other markets finalised

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

In focus

12

Profitable growth

Integration of

Lonka and closure

of factory in

Dieren

Implement and

drive initiatives

within Pick & Mix

Operational

excellence in

supply chain

through Lean2020

initiative

Q4 selection of product launches 13

Italy Finland

Sweden

Baltics

The Netherlands

Switzerland

Title

Arial, Bold, 80 pt, white Q&A

Title

Arial, Bold, 40 pt, red

Text/Bullets, Level 1-5

Arial, Regular, 20 pt, grey

Subtitle

Arial, Bold, 40 pt, grey

Disclaimer

• This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

• This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended.

• This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.

• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

15