Be ONE: Our strategy in the current environment. Guidance 2010

Transcription

1 Results February January-December 25th,

2 Disclaimer This document contains additional non-compulsory forward-looking statements on intentions or expectations of the Company as of the date of its publication whose only purpose is to provide further information on perspectives on future performance. Such forward-looking statements do not constitute any guarantee of future performance and involve risks and uncertainties as well as other important factors that could cause actual developments or results to differ essentially from those expressed in our forwardlooking statements. Analysts and investors in particular as well as any other persons or entities who must take decisions or give advise on investments in the Company should not place undue reliance on those forward-looking statements. The financial information contained in this document has been prepared under International Financial Reporting Standards (IFRS). This financial information is unaudited and, therefore, subject to potential future modifications. 2

3 Consolidated Results 2009 Be ONE: Our strategy in the current environment? Guidance

4 Consolidated results 2009 Highlights FY09 Financial results +25% Net Net profit profity-o-y y-o-yup up to to 64.3MM. +22% Consolidated EBITDA EBITDAy-o-y y-o-yup up to to 129.0MM p.p. Consolidated EBITDA EBITDA margin marginto to 22.1% leaded leaded by by casings (+3.7 p.p. margin margin vs. vs up up to to 25.3%). Revenue growth growth +6% y-o-y, y-o-y, in in an an environment of of global global economic recession. Vegetable food foodbusiness (Grupo (GrupoIAN) keep keep top top line line stable stable despite despite economic crisis crisis in in Spain Spain and and market market competition MM Decline Decline on on net net debt debtwith a a +2.8% +2.8% y-o-y y-o-yincrease in in Capex Capexto to 46MM 46MM and and +32.0% +32.0% y-o-y y-o-yincrease in in payments to to shareholders. 4

5 Consolidated results 2009 Exceeding main financial targets Revenues 09 x 583MM EBITDA MM Net Profit 1 09 Capex MM 45MM 10%-11% 6% 16%-20% 24% 10%-15% 27% Revenues EBITDA Net profit Guidance x 1 Guidance on recurrent results, In MM has been registered as a non-recurrent cost as a consequence of the restructuring cost in Germany 2 Excluding 1MM investment in China US$ 5

6 Consolidated results 2009 Growth expansion along P&L MM 4Q09 % y-o-y 2009 % y-o-y %y-o-y ex-forex 1 Revenues % % +4.9% EBITDA % % +14.3% EBITDA margin 22.1% +2.1 p.p. 22.1% +3.0 p.p. EBIT % % PBT % % Net profit % % 1 For comparison purposes, ex-forex growth excludes the impact of the different exchange rates used in the consolidated accounts and the USD impact in commercial transactions. 6

7 Consolidated results 2009 Lower debt and financial expenses Net Debt % 90.5 Net financial result Breakdown (MM ) -30.2% -37.9% +29.6% Dec-08 Dec Finantial cost 1 3.6% -2.4 p.p % Net financial Results Gross financial Results Forex & Others Dec-08 Dec Effective financial cost = cost from interest and others / Average gross financial debt 7

8 Consolidated results 2009 Strong Operating Cash Flow: more remuneration and less financial debt x Net Debt /EBITDA x Net Debt /EBITDA Net Debt Dec 2008 y-o-y change Adjusted effective Operating cash flow 1 Capex Change in Working Capital Dividends & buybacks Forex & Others Net Debt Dec % +2.8% -88.1% +32.0% -13.0% -26.1% Significant improvement as a consequence of value focus and risk control 1 Adjusted effective operating cash flow = Effective operating cash flow Changes in working capital 8

9 CASINGS Growth in all geographic areas in an environment of global recession Revenues per origin of sales (MM ) North America +9.8% Europe +6.2% Latam +2.5%

10 CASINGS as a consequence of value focus, commercial discipline and higher capacity in our cogeneration plant Revenues (MM ) % Growth contribution (p.p.) 1.0 p.p. 1.7 p.p. 4.2 p.p. 1 For comparison purposes, ex-forex growth excludes the impact of the different exchange rates used in the consolidated accounts and the USD impact in commercial transactions. Organic growth Cogeneration Forex 1 10

11 CASINGS a sound performance although Q4 figure was impacted by the fast weakness of US$ ,0 Quarter Revenues (MM ) % vs. 4Q08 at constant forex % +7.8% +7.8% -1.5% 1 For comparison purposes, ex-forex growth excludes the impact of the different exchange rates used in the consolidated accounts and the USD impact in commercial transactions. 1Q081Q09 2Q08 2Q09 3Q083Q09 4Q08 4Q09 y-o-y growth US$/ y-o-y 13.1% 12.8% 4.9% -12.1% 1Q 2Q 3Q 4Q 11

12 CASINGS Outstanding double-digit growth onebitda in everyquarter Quarter EBITDA (MM ) EBITDA (MM ) % +31.2% % ,7% % Q 2Q 3Q 4Q y-o-y growth

13 CASINGS led by a significant y-o-y improvement on margins EBITDA margin 25.4% 25.9% 24.7% 25.3% 25.3% 22,9% 22,1% 21,3% 20,2% 21.6% +3.7 p.p. 1Q 2Q 3Q 4Q

14 CASINGS y-o-y improvement in every Quarter meant best ever cumulative Net profit Quarter Net profit (MM ) Net profit (MM ) % +25.9% +62.4% +10.7% +32.1% 1Q 2Q 3Q 4Q y-o-y growth

15 VEGETABLE FOODS Revenue and EBITDA recovery in every Quarter led by product mix and strong Carretilla brand. Revenues (MM ) Revenues stable (+0.1%) as a consequence of product mix and Carretilla strength Maintaining our strategy of new commercial launches of high-added value products Q09 2Q09 3Q09 4Q09 EBITDA margin 8.1% 6.9% EBITDA (MM ) % % 5.7% 4.8% 4.1% % Decline on margin impacted by market competitiveness and promotions Partially offset by austerity plans and cost control Q09 2Q09 3Q09 4Q09 15

17 Be ONE: Our strategy in the current environment Initiatives Goal: Reinforce our market leadership B E O N E Be aligned with the rest of the Group Enhance added value Organic growth New businesses Excellence centers by family product Casings market share 1 Rest (more than 40 players) Visko-Teepak Devro Viskase Leverage to create value 1 Market share in : includes skinless, collagen, fibrous, tubular plastics and bags. Source: Viscofan Group Growth in current environment Cost reduction 17

18 Artificial casing markets keep intact their solid fundamentals despite global economic crisis. Growth drivers Animal protein Gut casing Vegetables diet collagen Population growth + Feeding habits + Technology migration E Market growth on volumes (Base 2006) Range +5% CAGR 06-09: +4% Range +3% 18

19 Undeveloped areas on artificial casing will be the areas that will lead economic growth in the next years. World GDP 2010E: +3.9%; (+2.1% Developed; +6.0% Developing) GDP growth per country 10% or more 6% - 10% 3% - 6% Source: IMF 0% - 3% Less than 0% No data Pacific Population (MM) Expense on artificial casing per capita ( ) North America Latam Europe Africa Asia Source: Population and vital statistic report (United Nations) and Viscofan China:

20 and Viscofan is the only one that combines own production footprint in both areas World GDP 2010E: +3.9%; (+2.1% Developed; +6.0% Developing) GDP growth per country 10% or more 6% - 10% 3% - 6% Source: IMF 0% - 3% Less than 0% No data with solutions in all casing s technologies Skinless Collagen Fibrous Plastics Viscofan #1 #2 #4 Competitive position 20

21 with key value proposal to our customers Casing provides final shape to the sausage and contributes to improve speed of production automate production process Improve product quality Reduce waste in the production process Facilitate the development of new products Improve health control To sum up: provides new growth opportunities for our customers and a significant source of production savings in an environment of optimization and production excellence 21

22 Record on Revenues for the 5th year in a row Revenues (MM ) CAGR 06-10E >+5% E x x x US$ Revenue growth drivers Commercial discipline Worldwide leadership in a market that, despite decelerating in 2009, continue to be backed by solid growth fundamentals Footprint and competitive positioning unique with a sound customer base 22

23 Operations: A permanent-improving model Contribution Improvement path Excellence centers No competitive capacity Competitive advantage Costs Low cost centers Pressure in cost workforce /structure Best practices Excellence centers Technology upgrades (product+innovation+ service) Automation Intermediate Centers Competitive advantage Technology 23

24 Initiatives and improvement plans for Excellence centers Technology upgrade increasing speed of production in skinless and collagen Adapt fibrous portfolio to market needs Intermediate centers Transfer converting capacity to low cost centers Process improvements based on excelence centers technology, looking for higher productivity yields and energy savings Low cost centers Increasing capacity on non-edible collagen in Serbia and transfer of curved non-edible collagen from Germany to Serbia. Increasing converting capacity. 24

25 Ongoing EBITDA growth with room to keep improving margins EBITDA (MM ) CAGR 06-10E EBITDA margin Casings E 25.3% 18.7% 21.9% 21.6% EBITDA margin Group 16.8% 19.5% 19.1% 22.1% >22.4% >5 p.p. >+13% Drivers for cost reduction Raw material costs will be more stable in 2010 vs. upward trend during Significant production improvements and process automation Less intensity on labour costs Energy optimization 25

26 Taking advantage of our operating leverage for further value creation 46.3 <40 EBITDA Capex E CAGR 06-10E OpCF 1 (MM ) >98 >+17% 1 OpCF = EBITDA - Capex Cash flow growth drivers Better operating margins and strong operating leverage Improvements on efficiencies and automation enables better investment level. Investment above average in 2008 and 2009 due to efforts to improve production process and new businesses (co-generation), In 2010, even including China investment, capex will be around depreciation level. 26

27 with shareholders benefiting from Viscofan s growth Dividends CAGR % 12.1 Dividends (MM ) Buy-Backs (% Equity) Interim dividend Return of issue premium 1.4% % 0.3% 0.0% Interim dividend paid on Dec % y-o-y Interim dividend 27

28 Viscofan in China: An opportunity encompassing growth and competitiveness Suzhou ( 80 km from Sanghai) China GDP 2010E: +10.0% Population: 1,317 MM % Worldwide meat production: 30% Goals: Develop a huge potential market Adapt Asian converting capacity for that market in that region Quality control and technology protection New production plant in a non- area Viscofan Technology (Suzhou) Co. Ltd Ownership: 100% Viscofan SA Mission: Artificial casing converting plant Capex 2010E: 7MM Start of operations: 2011 Reinforce Viscofan leadership increasing market share in Asia/Pacific 28

29 New businesses: Consolidating Co-generation in Spain Power capacity 16,6 16,6 Phase III (2009) Phase II (2008) Phase I (1993; Replaced in 2010) 16,6 11,8 Replaced by 2 seminew engines Capex: 2MM 16,6 12,4 December 2009 December 2010E Power capacity: 44,9MW Ingresos: 20MM; Margen EBITDA 25% Power capacity: 45,5MW Ingresos: > 25MM; Margen EBITDA 25% Benefits from a co-generation plant Be self-sufficient in our energy needs in Spain Offset energy cost with electricity sales Assuring positive margin under a fixed-price scheme for 12 months since February 2010 Better sustainability, our technology contributes to reduce CO 2 emissions 29

30 New businesses: Satisfactory progress in Viscofan Bioengineering activity combines natural sciences and engineering to provide innovative biomaterials based on collagen as new solutions for cell biology, tissue engineering and regenerative medicine Life sciences Cell culture based on collagen (CCC) Health care Regenerative medicine Potential markets Cellular biology Collagen biocompatible membrane Tissue engineering Short term Mid term (3-8 years) Long term (10-15 years) Collaboration agreements: 30

32 ? Guidance 2010 Main financial figures (MM ) Revenues EBITDA Net Profit Capex % y-o-y. 4%-5% 7%-10% 8%-13% < 40MM US$ 1.45 Revenues EBITDA Net profit 2009 Guidance

33 To Sum up New high record on on results, exceeding initial initial expectatives despite despite worse worse than than expected market market (lower (lower demand demand growth growth and and weaker weaker US$) US$) A Group in in an an excellent situation considering growth growth opportunities and and Group s Group s low low exposure to to the the specific specific risks risks derived derived from from worldwide economic crisis. crisis. With a unique business model and positioning which which enables enables us us to to capture capture that that growth growth and and keep keep improving our our operating margins. Significant progress in in expected Cash Cash Flow Flow for for 2010, 2010, even even including ambicious investment plans and higher shareholder remuneration. 33