First-half 2017 results

Transcription

1 30 September September 2017

2 Highlights of the period Antalis International was listed on the stock exchange on 12 June 2017 Admission of Antalis International shares to trading on Euronext Paris Ownership structure at 30 June 2017 Bpifrance Participations Free float 2.8% 81.7% 15.5% Governance complying with AFEP-MEDEF standards, i.e., Board of Directors comprising 8 members (of which 4 independent and 5 women directors), creation of Board committees (Audit Committee, Nominations and Compensation Committee) Refinancing of current credit facilities (expiring on 31 December 2018) initiated in June 2017 Decision in July to withdraw the planned issue of high-yield notes due to market conditions. The Company is currently studying various different refinancing solutions. 13/09/17 2

3 Key figures for first-half 2017 results (in millions) H H Change Sales 1, , % Gross margin % Gross margin (% of sales) 24.5% 24.2% point EBITDA % EBITDA margin 3.6% 3.3% points (as a % of sales) Net debt (268.6) (302.9) - Main European Geographies First-half sales of 1,205 million, down 4.1% on H (and down 2.1% at constant exchange rates). Improvement in gross margin rate year on year, from 24.2% in H1 2016, to 24.5% in H Increased gross margin in Packaging and Visual Communication sectors which now contribute 34% of consolidated gross margin (up 2 points) Rest of Europe Latin America South Africa Rest of the world Asia-Pacific EBITDA up 2.1% to 43 million and EBITDA margin up 0.3 points to 3.6% Homogeneous profitability across the three geographies 34 million reduction in net debt compared with 30 June /09/17 3

4 Market conditions in the first-half of the year More positive economic environment Slight upturn in European business despite a slowdown in the UK (Brexit) Currency volatility Markets performed better Good growth momentum in Packaging and Visual Communication markets Smaller decline in volumes in the Papers sector in H than in H Coated sheet: - 2% Copier: + 1% Continued consolidation in the competitive landscape in late 2016 / early 2017, providing market opportunities for Antalis 13/09/17 4

5 Results by geography 13/09/17 5

6 Main European Geographies millions H H Change Sales Main European Geographies % UK & Ireland % France % Germany & Austria % EBITDA Main European Geographies % EBITDA margin (as a % of sales) 3.6% 3.5% +0.1 points down 1.2% at constant exchange rates Sales of 611 million (down 6.5%) Impact of lower volumes in the Papers sector, amplified in the UK by the depreciation in sterling; sales in the Papers sector in France and in Germany & Austria were more resilient Partially offset by better performances in Packaging and Visual Communication Positive impact of acquisitions (Swan Paper in Ireland) H sales UK & Ireland 26% H EBITDA France 12% Germany & Austria 13% EBITDA down 4.8% to 22 million; EBITDA margin up by 1 point to 3.6% Negative impact of depreciation in sterling over the period Improved operating performances in France and in Germany & Austria Main European Geographies 51% 13/09/17 6

7 Rest of Europe H sales millions H H Change Sales % EBITDA % EBITDA margin (as a % of sales) 3.6% 3.2% points down 3.7% at constant exchange rates Sales of 482 million (down 3.5%) Drop in Paper volumes Partially offset by growth in Packaging and Visual Communication Positive impact of acquisitions (Gregersen in Norway) Rest of Europe 40% H EBITDA EBITDA up 9.5% to 17 million; EBITDA margin improved by 0.4 points to 3.6% Improved performances in Iberia, Scandinavia and Eastern Europe Rest of Europe 40% 13/09/17 7

8 Rest of the World (Latin America, South Africa and Asia-Pacific) H sales millions H H Change Rest of the world 9% Sales % EBITDA % EBITDA margin (as a % of sales) 3.4% 3.2% points down 0.2% at constant exchange rates Sales of 113 million (up 8%) Strong positive FX impact (South African rand, Chilean peso, Brazilian real) Positive impact of acquisitions in Latin America (TFM Industrial in Peru) H EBITDA Rest of the world 9% EBITDA up 15.2% to 4 million 13/09/17 8

9 Breakdown by business sector 13/09/17 9

10 Analysis of sales and gross margin Sales Gross margin Gross margin/sales (in millions) H H Change H H Change H H Change Papers % % 22.9% 23.0% -0.1 points Packaging % % 28.1% 27.4% +0.7 points Visual Communication % % 28.5% 27.8% +0.7 points TOTAL 1, , % % 24.5% 24.2% +0.3 points Contrib. of Packaging and Visual Com. to gross margin 34.2% 32.0% +2 points Stable gross margin rate for Papers Improvement in gross margins and gross margin rates for Packaging and Visual Communication, sectors that generate higher margin rates than the Papers sector 2 point increase (to 34%) in the contribution of the Packaging and Visual Communication sectors to the Group s total gross margin 13/09/17 10

11 Papers Market trends Wave of consolidation in the distribution sector Papyrus (France), Inapa (Switzerland), Igepa (Austria) Higher selling prices in the copier and uncoated paper segments H Gross margin 66% Sales 70% Initiatives to boost organic growth Expanding the service offering, generating a competitive advantage and additional revenue A dynamic marketing strategy to promote all product ranges Antalis Club Premium and the A4&More loyalty programme for office paper resellers Continued development of partnerships with OEMs in the digital printing sector Consolidation of Swan Paper in Ireland 13/09/17 11

12 Packaging Gross margin up 3.8% Gross margin rate up 0.7 points to 28.1% Margin growth, buoyed by our ability to deliver value-added solutions to all business sectors Example Customer business Antalis solution Customer benefit H Gross margin 23% IT components distributor Design of a recyclable corrugated-board packaging solution to protect 3 different sizes of hard disks - Lower costs - Eco-friendly solution Sales 21% Distributor of spare parts for agricultural machinery Optimisation of packing lines - Lower costs - Enhanced employee productivity - Reduction of carbon footprint Printers Packaging products for preparation and transportation - Time gains - One-stop shop Consolidation of TFM Industrial in Chile 13/09/17 12

13 Visual Communication Gross margin up by 2.9% and gross margin rate up 0.7 points to 28.5% Good momentum in Iberia and Germany Continued growth in flexible large-format printing (LFP) supported by the Coala range (sales up 13%) and by sales of equipment Development of cross selling with the Group s customers in the Papers sector H Sales 9% Gross margin 11% Consolidation of Gregersen in Norway 13/09/17 13

14 Further productivity gains Continued growth in e-commerce Lower commercial costs Continued optimisation of supply chain and IT systems Adaptation of warehouse network in Poland, Switzerland and Russia and outsourcing of a number of UK warehouses IT systems: deployment of new warehouse management software (WMS) in the UK and a new ERP system in Hungary All Danish entities merged (i.e., Papers, Packaging and Visual Communication) Deployment of CSR-based initiatives to enhance organisational performance Health and safety Continued deployment of awareness-raising and learning initiatives to reduce the number of lost-time accidents: slight drop in the incident rate* at end-june Academy dedicated to Purchasing training Launch of second training session Incident rate = number of lost-time accidents/number of full-time employees and temporary personnel x 1, /09/17 14

15 13/09/17 15

16 Consolidated income statement (in millions) H H Change down 2.1% at constant exchange rates Sales 1, , % Gross margin % EBITDA % EBITDA margin (as a % of sales) 3.6% 3.3% points Current operating income % Current operating margin (as a % of sales) 2.9% 2.4% points Acquisitions: 13 m FX impact: (25) m Acquisitions: 1.1 m FX impact: (1.4) m Non-recurring items (10.1) (8.4) NA Net financial expense (13.4) (13.0) NA Income taxes (3.8) 0.6 NA Net income (loss) attributable to owners NA (1) Includes a 2.3 million gain arising on a change to a Swiss pension plan. 13/09/17 16

17 EBITDA trends (1.4) 1.8 (5.6) 30 (4.4) H EBITDA Forex impact Acquisitions Margins/Mix/ Volumes Variable costs Inflation Overheads Bad debts H EBITDA 13/09/17 17

18 Breakdown of non-recurring items (in millions) at 30 June 2017 Restructuring costs Asset write-downs Other non-recurring items Proceeds from disposals of assets (6.4) (1.0) (8.7) 6.0 Non-recurring items (10.1) Costs related to IPO and refinancing 13/09/17 18

19 Consolidated statement of financial position millions 30 June Dec June 2016 Goodwill Property, plant & equipment and intangible assets Operating WCR Capital employed Other assets (net) Total Shareholders' equity Non-controlling interests Provisions Net debt Total /09/17 19

20 Breakdown of provisions (in millions) 30 June Dec Pension provisions Restructuring provisions Other risk and contingency provisions Total /09/17 20

21 Change in net debt (in millions) H H Consolidated net debt at beginning of period (254.4) (231.7) (231.7) EBITDA Change in WCR of businesses (21.0) (68.0) (15.3) CAPEX (6.4) (8.4) (16.4) Current Operating Cash Flow 15.4 (34.5) 56.5 Net finance costs (12.2) (12.8) (25.8) Income tax expense (2.2) (2.7) (5.5) Restructuring costs & other non-recurring items (9.3) (10.8) (23.3) Disposals Impact of changes in scope of consolidation - - (7.8) Dividends paid (8.0) (4.0) (8.0) Costs related to the IPO (2.4) - (0.4) Currency impact (4.8) (4.3) (5.6) Other items (2.1) (3.0) (5.4) (Increase)/decrease in net debt (14.3) (71.2) (22.6) Consolidated net debt at end of period (268.6) (302.9) (254.3) 13/09/17 21

22 Net debt Consolidated net debt of 269 million vs. 303 million at 30 June 2016 Reduction of 34 million thanks to efficient working capital management Financial covenants at 30 June 2017 Net debt / EBITDA = 3.00 (criteria 3.30) vs 3.26 in H Current operating income/net interest expense = 4.61 (criteria 2.35) vs 4.10 in H /09/17 22

23 Conclusion 13/09/17 23

24 Confirmation of full-year 2017 forecasts Low single-digit decrease in sales (before acquisitions and at constant exchange rates) compared with sales achieved for FY 2016 EBITDA margin between 3.4% and 3.8% 13/09/17 24

25 Q & A Hervé Poncin, Chief Operating Officer Xavier Roy-Contancin, Chief Financial Officer 13/09/17 25

26 contact@antalis.com 13/09/17 26