Q3 2016 results 27 October 2016 Danko Maras, Interim President and - - PowerPoint PPT Presentation

q3 2016 results 27 october 2016
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Q3 2016 results 27 October 2016 Danko Maras, Interim President and - - PowerPoint PPT Presentation

Q3 2016 results 27 October 2016 Danko Maras, Interim President and CEO/CFO Jacob Broberg, SVP IR 2 Q3 highlights Continued improved operating profit Net sales for the quarter decreased by 0.8 per cent to SEK 1,448m (1,459), including


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SLIDE 1

Q3 2016 results – 27 October 2016

Danko Maras, Interim President and CEO/CFO Jacob Broberg, SVP IR

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SLIDE 2

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Continued improved operating profit

  • Net sales for the quarter decreased by 0.8 per cent to SEK 1,448m (1,459),

including a negative impact of foreign exchange rates of -0.1 per cent.

  • Operating profit increased to SEK 216m (212).
  • Operating profit, adjusted, increased to SEK 224m (194).
  • Cash flow from operating activities amounted to SEK 116m (174).
  • Net debt/EBITDA ratio was 2.76x (3.39).
  • New loan agreement has been entered into and senior secured notes have been

redeemed.

Q3 highlights

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SLIDE 3

Overall market and sales development

Sales declined somewhat

Cloetta´s main markets

  • Overall slightly positive or unchanged market

development in all countries, except Denmark and Norway.

  • Organic sales growth -0.7 per cent.
  • Sales grew in Sweden, Finland, Italy, Norway

and the export markets, and declined in the Netherlands, the UK, Germany and Denmark. Also contract manufacturing declined.

  • Positive sales trend in Sweden and Finland

predominantly driven by pick-and-mix.

  • Drop in sales in the UK partly attributable to

weaker British pound. In the Netherlands, sales

  • f special products to discounters declined.

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SLIDE 4

4 Key ratios, SEKm Jul-Sep 2016 Margin % Change % Jul-Sep 2015 Margin % Rolling 12 Full year 2015 Net sales 1,448

  • 0.8

1,459 5,790 5,674 Gross profit 574 39.6 1.6 565 38.7 2,283 2,211 Operating profit, adjusted 224 15.5 15.5 194 13.3 755 690 Operating profit (EBIT) 216 14.9 1.9 212 14.5 705 671 Net financial items

  • 71
  • 43
  • 197
  • 178

Profit before tax 145

  • 14.2

169 508 493 Profit for the period 108

  • 16.9

130 386 386

Continued improved operating profit

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SLIDE 5

5 Changes in net sales Jul-Sep 2016 Jan-Sep 2016 Full year 2015 Organic growth

  • 0.7%

0.2% 1.5% Structural changes

  • 3.1%

3.9% Changes in exchange rates

  • 0.1%
  • 0.4%

1.4% Total

  • 0.8%

2.9% 6.8%

Changes in net sales

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SLIDE 6

Net sales, Operating profit and Operating profit, adjusted

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Net sales Operating profit (EBIT) Operating profit, adjusted

52 85 178 262 90 130 212 239 108 142 216 50 100 150 200 250 300

Q1 Q2 Q3 Q4 SEKm

74 108 193 257 108 133 194 255 126 150 224 50 100 150 200 250 300

Q1 Q2 Q3 Q4 SEKm

1,200 1,700 1,600 1,500 1,400 1,300

Q4

1,622 1,579

Q3

1,448 1,459 1,303

Q2

1,362 1,280

SEKm

1,238

Q1

1,358 1,313 1,193

2016 2015 2014

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SLIDE 7

Strong cash flow from operating activities

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  • 35

125 93 147

  • 16
  • 23

54 116 91 44 75 290 223 163 174 367 253 114 116 330 131 500 927

  • 200

200 400 600 800 1000 1200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 SEKm Cash flow from operating activities Cash flow from operating activities (rolling 12 months) 2012 2013 2014 2015 2016

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8 SEKm Jul-Sep 2016 Jul-Sep 2015 Rolling 12 Full year 2015 Cash flow from operating activities before changes in working capital 219 236 784 697 Cash flow from changes in working capital

  • 103
  • 62

66 230 Cash flow from operating activities 116 174 850 927 Cash flow from investments in property, plant and equipment and intangible assets

  • 42
  • 30
  • 160
  • 161

Cash flow from other investing activities

  • 105
  • 206
  • 105
  • 206

Cash flow from investing activities

  • 147
  • 236
  • 265
  • 367

Cash flow from operating and investing activities

  • 31
  • 62

585 560 Cash flow from financing activities 213

  • 28
  • 320
  • 518

Cash flow for the period 182

  • 90

265 42

Cash flow

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SLIDE 9

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Stable net debt/EBITDA despite dividend payments

2013

Financial leverage

4,5 4,0 5,0 3,5 3,0 2,5 0,0 Q3 Q2 Q1 Q4 Q3 Q2 2,50 Target Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 2014 2015 2016

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SLIDE 10

New loan agreement will reduce cost

  • New loan agreement with four banks equivalent to SEK 3,700m

– Term loan of EUR 175m with a tenor of three to five years – Credit facility of EUR 120m with a tenor of five years – Bridge loan of SEK 1,000m with a tenor of one to two years to redeem Bond

  • The SEK 1,000m Bond was redeemed in September
  • Net financial items will be reduced by SEK 140m over a five year period compared to

previous financing – Whereof SEK 50m in 2017 – One-off expenses of SEK 49m in net financial items in Q3, 2016

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SLIDE 11

Seasonal sales in Italy and abolition of confectionery tax in Finland Closure and transfer of factory in Dieren Drive initiatives within pick-and- mix

In focus

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Profitable growth

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SLIDE 12

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Sweden Denmark

Q3 selection of product launches

Finland The Netherlands Norway Italy Travel retail and Denmark Sweden and Norway

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SLIDE 13

Q&A

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SLIDE 14

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

  • perate 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.

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