COMPANY PRESENTATION
MARCH 2015
100%45,045,546,046,547,047,548,048,549,010,012,014,016,018,020,046,047,048,049,050,051,052,053,054,0
DISCLAIMER
This presentation includes or may include representations or estimations concerning the future about intentions, expectations or forecasts of VIDRALA or its management. which may refer to the evolution of its business performance and its results. These forward looking statements refer to our intentions, opinions and future expectations, and include, without limitation, statements concerning our future business development and economic performance. While these forward looking statements represent our judgment and future expectations concerning the development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, (1) general market, macro-
economic, governmental and regulatory trends, (2) movements in local and international securities markets, currency exchange rates and interest rates as well as commodities, (3) competitive pressures, (4) technological developments, (5) changes in the financial position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings and reports, including those with the regulatory and supervisory authorities (including the Spanish Securities Market Authority – Comisión Nacional del Mercado de Valores - CNMV), could adversely affect our business and financial performance. VIDRALA expressly declines any obligation or commitment to provide any update or revision of the information herein contained, any change in expectations or modification of the facts, conditions and circumstances upon which such estimations concerning the future have been based, even if those lead to a change in the strategy or the intentions shown herein.
This presentation can be used by those entities that may have to adopt decisions or proceed to carry out opinions related to securities issued by VIDRALA and, in particular, by analysts. It is expressly warned that this document may contain not audited or summarised information. It is expressly advised to the readers of this document to consult the public information registered by VIDRALA with the regulatory authorities, in particular, the periodical information and prospectuses registered with the Spanish Securities Market Authority – Comisión Nacional del Mercado de Valores (CNMV).
2
INDEX
- General overview
- Business fundamentals
- Business figures
- Acquisition of Encirc
VIDRALA GROUP - Overview
Vidrala is Western Europe’s fourth glass container manufacturer through eight complementary sites located in five countries (Spain, Portugal, Italy, Belgium and the United Kingdom).
Vidrala supplies glass containers for a wide variety of products in the beverage and food industry, selling more than 3.5 billion bottles and jars per year to more than 1,500 clients and managing an annual turnover of approx. EUR 470 million.
Vidrala is public listed on the Spanish Stock Exchange. The Company has a market capitalisation of over EUR 1bn.
Vidrala acquired in 2015 ENCIRC, a glass packaging manufacturer operating two sites in UK and Ireland.
VIDRALA GROUP – Key milestones
1965 1985 1989 2003 2005 2007 2015
1965 – Vidrala begins operations in Alava, Spain-
1985 – IPO Madrid and Bilbao stock exchanges
1989 – Vidrala second greenfield in Albacete, Spain-
2003– Acquisition of one plant in Portugal
2005 – Acquisition of two plants, one in Barcelona (Spain) and one in Italy
2007– Acquisition of one plant in Belgium
2015– Acquisition of Encirc
50
100
150
200
250
300
350
400
450
2002 2004 2006 2008 2010 2012 2014
IBERIA
REST OF EU
Towards an international projection... ... Optimizing the product mix
SALES BREAKDOWN BY COUNTRY 2002-2014. EUR mm.
SALES BREAKDOWN BY PRODUCT 5 years average. As a percentage of sales.
WINE
45%
BEER15%
SPIRITS
10%
OLIVE OIL
10%
CHAMPAGNE8%
SOFT DRINKS4%
JUICES3%
PRESERVES3% WATER
1%
125
190
307
387 406
457 468
VIDRALA GROUP – Business profile
# OF CUSTOMERS: 1,518
TOP 10 CUSTOMERS: 28.9%
VIDRALA GROUP – Business profile
CUSTOMER LOYALTY: 96% 7
INDEX
- General overview
- Business fundamentals
- Business figures
- Acquisition of Encirc
BUSINESS FUNDAMENTALS – The market
0
5.000
10.000
15.000
20.000
2006 2007 2008 2009 2010 2011 2012 2013
The glass
packaging
market in
Europe:
a solid and
stable market
Demand for food and beverage packaging in Western Europe (2006-2013)
In thousands of tons. Source: FEVE
Average:
c.19mm tons
per year
Our key
geographical
markets,
the leading
glass
packaging
producers
Glass packaging production vs. GDP per capita
10
20
30
40
50
60
70
0 10 20 30 40 50 60
Iberia
FranceItaly
Germany
USAUK
JapanBrazil
China
GLA
SS P
AC
KA
GIN
G P
RO
DU
CTI
ON
PER
CA
PIT
A (
KG
)
GDP PER CAPITA ($000) 9
BUSINESS FUNDAMENTALS – The product
Glass, the
preferred
material:
premium
products
Glass,
the preferred
material:
health and
environment
Survey about preferred packaging material for food and beverage
59%17%
13%
4%2%
Glass
Paper and board
Plastic
Metal
Flexible pouches
N.A.
Healthiest
packaging
60%
6%
20%
8%4%
Glass
Paper and board
Plastic
Metal
Flexible pouches
N.A.
Best
preserving
taste
37%
30%
15%
10%
6%
Glass
Paper and board
Plastic
Metal
Flexible pouches
N.A.
Most
environment
friendly
Source: Consumer trends report 2012.
GLASS SHARE IN RIGID PACKAGING
FOR FOOD AND BEVERAGES IN
WESTERN EUROPE
YEAR 2013
GLASS SHARE IN RIGID PACKAGING
FOR TOP* BEVERAGES IN
WESTERN EUROPE
YEAR 2013
10
INDEX
- General overview
- Business fundamentals
- Business figures
- Acquisition of Encirc
VIDRALA – Profitable growth
REVENUES (EUR mm)
EBIT (EUR mm and % margin)
0
100
200
300
400
500
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
0%
5%
10%
15%
20%
0
20
40
60
80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
EBIT (EURmm) EBIT (% margin)
12
CASH GENERATION IN 2014
EUR in millions and as a percentage of sales
WORKING
CAPITAL INTERESTS
&
TAXES
CAPEX
23.2%
-2.1%
-6.5%
12.0%
EBITDA
2014
FREE CASH FLOW
2014
108.5
72.3
15.4%
+0.9%
13
VIDRALA – Focused on cash generation
DIVIDENDS AND ATTENDANCE BONUSES (EUR mm)
-
2
4
6
8
10
12
14
16
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
2014
+ 15%
14
VIDRALA – Shareholder remuneration
15
257.0
218.9
189.3 159.6
117.9
67.9
0
50
100
150
200
250
300
DEC 2009 DEC 2010 DEC 2011 DEC 2012 DEC 2013 DEC 2014
VIDRALA – Deleveraging profile
FINANCIAL PROFILE DEBT SINCE 2009 AT YEAR END EUR mm
INDEX
- General overview
- Business fundamentals
- Business figures
- Acquisition of Encirc
I. ENCIRC LIMITED - DESCRIPTION
DERRYLIN
County Fermanagh, Northern Ireland, UK
Built in 1998
The only glass container plant in Ireland
ELTON
County Chesire, England, UK
Built in 2005
Largest glass container plant in Europe
Includes filling and logistics facilities
Encirc Glass is a glass packaging manufacturer for the food and beverage markets in UK and Ireland.
It operates two sites: Derrylin in Northern Ireland and Elton in England.
It is the sole player in Ireland and the second player within the UK (roughly 27% market share).
Sales: FY2013 £237m, FY2014 £245m.
EBITDA: FY2013 £42m, FY2014 £46m.
18
SALES 2012A-2014A (GBP mm)
I. ENCIRC LIMITED - FINANCIALS
EBITDA 2012A-2014A (GBP mm)
236,6 237,0 245,5
2012A 2013A 2014A
41,0 42,3 45,9
2012A 2013A 2014A
II. UK&IRELAND – THE GLASS PACKAGING MARKET
MAIN GLASS
PACKAGING
MARKETS
IN EUROPE
SALES BY MARKET (IN ‘000 TONS) Source: FEVE
UK GLASS
PACKAGING
MARKET.
BREAKDOWN
BY PLAYERS.
Market share (est.): 41%
#2 worldwide, #3 in Europe
Market share (est.): 31%
Sole player in Ireland
Market share (est.): 12% #1 worldwide, #1 in Europe
Market share (est.): 11%
Niche player in premium spirits
Market share (est.): 5%
Niche player in food and pharma 20
PLAYERS IN UK&IRELAND:
2.312
3.755 3.548
3.326 3.774
2.345
3.661 3.286
2.923
3.429
2008 2013
2013/2008 +1.5%
-2.5% -7.4%
-12.1%
-9.1%
Iberia
35%
GB&Ireland
35%
Italy
8%
Rest of
continental Europe
22%
III. TRANSACTION RATIONALE
Iberia
54%
Italy
12%
Rest of
continental
Europe
34%
2014 REVENUES BY GEOGRAPHY
+
+
Great Britain
(GB)
77%
Ireland
23%
21
2014 REVENUES BY PRODUCT-MIX
III. TRANSACTION RATIONALE
Wine
49%
Beer
13%
Spirits
7%
Food
15%
Soft Drinks
8%
Others
8%
Wine
15%
Beer
45%
Spirits
16%
Food
10%
Soft Drinks
15%
Wine
37%
Beer
24%
Spirits
10%
Food
13%
Soft Drinks
10%
Others
6%
+
+
22
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