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Q3 2017
Noteholders’
Presentation
30 November 2017
May 28th, 2019
Quarterly Financial
Performance
Q1 2019
Disclaimer
May 28th, 2019 Q1 2019 Financial Performance
2
In this presentation, the terms “Group”, “we”, “us” and “our” refer to EVOCA S.p.A. (the “Company”) and its subsidiaries. No representation or
warranty (whether express or implied) is given in respect to any information on this presentation or that this presentation is suitable for the
recipient’s purposes. The information herein is not all inclusive nor does it contain all information that may be desirable or required in order to
properly evaluate the Group. Neither the Group nor any of its officers, directors, employees, affiliates or advisors will have any liability with respect
to any use of, or reliance upon, any of the information contained herein. The Group has no obligation whatsoever to update any of the information or
the conclusions contained herein or to correct any inaccuracies that may become apparent subsequent to the date hereof.
This presentation may contain “forward looking statements” within the meaning of the U.S. federal securities laws and the securities laws of certain
other jurisdictions. In some cases, these forward looking statements can be identified by the use of forward looking terminology, including the words
“aims,” “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “forecasts,” “future,” “guidance,” “intends,” “may,” “ongoing,” “plans,”
“potential,” “predicts,” “projects,” “seek,” “should,” “target,” “will,” “would” or, in each case, their negative or other variations or comparable
terminology or by discussions of strategies, plans, objectives, targets, goals, investments, future events, beliefs or intentions. These forward looking
statements are based on plans, estimates and projections as they are currently available to our management. Such forward looking statements are
not guarantees of future performance and are subject to, or are based on, a number of factors, assumptions and uncertainties that could cause
actual results to differ materially from those described in the forward looking statements. Due to such uncertainties and risks, readers are cautioned
not to place undue reliance on such forward looking statements. Any forward looking statements are only made as at the date hereof and, except to
the extent required by applicable law or regulation, we undertake no obligation to publicly update or publicly revise any forward looking statement,
whether as a result of new information, future events or otherwise.
This presentation does not constitute or form part of, and should not be construed as, an offer to sell or issue or the solicitation of an offer to buy or
acquire securities in any entity of the Group. The recipient acknowledges and agrees that it is responsible for making an independent judgment in
relation to information contained herein and for obtaining all necessary financial, legal, accounting, regulatory, tax, investment or any other advice
that it deems necessary or appropriate. This presentation is only for persons having professional experience in matters relating to investments and
must not be acted or relied on by any person.
All figures presented in this report are based on our consolidated management accounts and are unaudited. The financial information herein
includes certain non-IFRS measures that we use to evaluate our economic and financial performance. These measures include, among others,
EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin and Operating Profit Before Exceptional Items. The non-IFRS measures
may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in
isolation or as a substitute for analysis of our operating results as reported under IFRS.
May 28th, 2019 Q1 2019 Financial Performance
3
EVOCA S.p.A.
Quarterly Financial Performance
Q1 2019 – Period ended March 31st, 2019
I. Q1 2019 Financials Summary
II. Appendix
Pro forma economic results
May 28th, 2019 Q1 2019 Financial Performance
4
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with Lavazza
(€ thousands) March 31, March 31, Variance March 31, December 31, Variance
2019 2018 % 2019 2018 %
Results
Revenue 124,361 118,957 4.5% 467,304 461,900 1.2%
Adjusted EBITDA* 28,996 27,032 7.3% 108,692 106,729 1.8%
Adjusted EBITDA margin** 23.3% 22.7% 23.3% 23.1%
Operating profit *** 24,922 22,899 8.8% 83,937 81,914 2.5%
Profit for the period*** 15,220 11,780 26,159 22,718
(*)
(**) We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues.
(***) Excluding the impact of the Purchase Price Allocation
For the twelve months endedFor the three months ended
We define Adjusted EBITDA as net profit (loss) plus income tax expense, net f inancial income (expense), depreciation, amortization, special costs and the
Real/Euro and Argentinian Peso/Euro (since August 2018) foreign exchange adjustment. We present non-IFRS measures because w e believe they and similar
measures are w idely used by certain investors, securities analysts and other interested parties as supplemental measures of performance and liquidity and
are intended to assist in the analysis of our operating results, profitability and ability to service debt. Adjusted EBITDA is not a measure of f inancial
performance under IFRS and should not be considered in isolation or as an alternative to any other measures of performance derived in accordance w ith
IFRS. Adjusted EBITDA, as presented in this Report, may not be comparable to similarly titled measures reported by other companies.
Pro forma economic results
May 28th, 2019 Q1 2019 Financial Performance
5
Compared to the same period of 2018, three months ended March 31st, 2019 pro forma results of operations excluding discontinued
business show an increase in Revenue of Euro 5.4 million (+4.5%) and an Adjusted EBITDA of Euro 2 million (+7.3%).
Adjusted EBITDA has been Euro 29 million, compared to Euro 27 million in 2018 with Adjusted EBITDA margin at 23.3% in the three
months ended March 31st, 2019 compared to 22.7% in the three months ended March 31st, 2018.
In the three months ended March 31st, 2019 Operating profit increased by Euro 2 million compared to the three months ended March 31st,
2018, representing 20% of revenue in 2019 compared to 19.2% in 2018.
For the twelve months ended March 31st, 2019, pro forma Revenue reached Euro 467.3 million (Euro 5.4 million higher than December
31st, 2018 results), Adjusted EBITDA reached Euro 108.7 million (Euro 2 million more than December 31st, 2018 results) and Operating
profit reached Euro 83.9 million (Euro 2 million higher than December 31st, 2018 results) thanks to the solid performance of the Group.
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with Lavazza
Pro forma Revenue
May 28th, 2019 Q1 2019 Financial Performance
6
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with Lavazza
For the twelve
months ended
March 31, 2019 March 31, 2018 Variance % March 31, 2019
Revenue by geography (€ thousands) 124,361 118,957 4.5% 467,304
Italy 29,367 28,912 1.6% 110,351
France 16,113 16,378 (1.6%) 52,369
Spain 16,664 14,592 14.2% 56,511
UK 2,535 2,535 0.0% 11,013
Germany 5,939 5,270 12.7% 21,257
Nordics 5,090 5,289 (3.8%) 17,999
Other Europe 15,051 15,383 (2.2%) 58,647
East Europe 10,976 10,868 1.0% 41,850
Africa & Middle East 1,051 1,893 (44.5%) 4,750
Asia & Pacific 5,338 5,284 1.0% 19,721
North America 11,841 7,638 55.0% 47,923
Central & South America 4,397 4,913 (10.5%) 24,912
Revenue by segment (€ thousands) 124,361 118,957 4.5% 467,304
Auto coffee (1)
35,786 36,753 (2.6%) 131,634
Semi Auto coffee (2)
50,616 44,710 13.2% 192,396
Impulse (3)
12,818 14,086 (9.0%) 49,912
Accessories, Spares & Services 25,141 23,408 7.4% 93,362
(1) Auto coffee: machines for large sized location. Defined as machines with cup dispensing technology
(2) Semi auto coffee: machines for small/medium sized location without cup dispensing technology
(3) Impulse: machines dispensing snack&food and can&bottle
For the three months ended
Pro forma Revenue
May 28th, 2019 Q1 2019 Financial Performance
7
Very good results for I QRT ended March 31st, 2019 with Revenue increasing by Euro 5.4 million, or 4.5% compared to Pro forma I QRT
2018.
GEOGRAPHIES
In Western Europe, best performers were: i) Spain where Revenue increased by 14.2% or Euro +2.1 million compared to I QRT 2018 with
positive results both with key players and small/medium customers; good performances in all segments especially in Semi Auto Coffee
segment (in particular Ho.Re.Ca) and in Impulse segment thanks to small/medium customers; ii) Germany where Revenue increased by
12.7% or Euro 0.7 million compared to I QRT 2018, thanks to the positive results of small/medium customers in Semi Auto Coffee segment
(OCS Core and Capsules).
Positive results also in Italy: small/medium customers and Spares & Accessories segment good performances.
UK in line with I QRT 2018 trend: downturn of a key player compensated by small/medium customers good performance.
Slight decrease in France and Nordics mainly attributable to a couple of Key customers. Downturn in Other Europe is due to two key
customers underperformances in Belgium and Switzerland only partially offset by good performances in Balkans (Auto Coffee and OCS
Semi Auto Coffee), Holland (thanks to a key customer) and Austria (thanks to Auto Coffee and Semi Auto Coffee – Ho.re.Ca.).
In the Rest of world, the best performer was North America with Euro 4.2 million or 55% Revenue higher than the same period last year
thanks to Semi Auto Coffee machines (especially with a key player).
Asia and Pacific quarterly results were slightly better than the same period 2018 due to the high turnover linked to a China player and good
performance in Thailand, only partially offset by poor results in Japan, Korea, Taiwan and Singapore.
Positive performance also in East Europe mainly thanks to Ukraine and Poland (especially in Semi Auto Coffee) only partially offset by
downturn in Romania and Czech Republic (especially in Auto Coffee).
In Central & South America Revenue are Euro 0.5 million below the same quarter 2018 due to the underperformance of Argentina driven by
the country economic downturn and Colombia due a specific deal in 2018 (driven by Auto Coffee and Impulse segments) partially offset by
good performances in Mexico, Costa Rica and Peru (Ho.Re.Ca and Spares).
The decrease in Africa & Middle East of Euro 0.8 million is mainly driven by Turkey due to the country economic downturn (in Auto Coffee
and Semi Auto Coffee segments – especially OCS) and Kuwait due a specific deal in 2018 (Auto Coffee and Impulse segments).
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with
Lavazza
Pro forma Revenue
May 28th, 2019 Q1 2019 Financial Performance
8
SEGMENTS
Auto Coffee segment decrease in Revenue was driven by downturn of Table Top machines in Western Europe countries (Italy, Spain
and France) and Argentina and as well as of Free Standing machines in East Europe countries, partially offset by good performances in
China and with a key player.
Very good performance of Semi Auto Coffee segment: i) Ho.Re.Ca especially in Mexico, Spain, France and UK only partially offset by
Asia&Pacific countries; ii) OCS mainly in Germany, Russia, Ukraine and North America with one key player and iii) Liquid with a key
customer.
Impulse segment was Euro 1.3 million below the same period 2018 due to poor performances in some Western Europe countries
(France, Germany, Italy, Belgium only partially offset by good results in Spain, Poland, Balkans and Nordics countries), in Middle East
and Central & South America. Decrease in this segment is impacted both by market demand decrease and competition in Western
Europe countries.
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with
Lavazza
Pro forma Income Statement
May 28th, 2019 Q1 2019 Financial Performance
9
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business of SGL with Lavazza
(€ thousands) March 31, March 31, Variance %
2019 2018
Revenue from Sales 124,361 118,957 4.5%
Cost of Sales (76,278) (73,448) (3.9%)
Gross profit 48,082 45,509 5.7%
Gross profit margin 38.7% 38.3%
Sales & Marketing (11,487) (11,158) (2.9%)
Logistic (2,089) (2,093) 0.2%
Administration (5,262) (5,036) (4.5%)
Operating Exchange Difference (249) (190) (31.6%)
Total operating costs (19,087) (18,477) (3.3%)
Adjusted EBITDA 28,996 27,032 7.3%
Adjusted EBITDA margin 23.3% 22.7%
Depreciation (1,959) (1,881) (4.1%)
Amortisation (1,874) (1,237) (51.5%)
Operating profit non business related items 25,163 23,914 5.2%
Brazilian/Argentinian Operating Exchange Difference (*) 127 (280) 145.3%
Restructure costs (17) (10) (57.9%)
Other costs (351) (725) 51.6%
Operating profit 24,922 22,899 8.8%
Operating Profit margin 20.0% 19.2%
(*) includes Argentinian exchange difference since August 2018, given the high devaluation of local currency
For the three months ended
Pro forma Income Statement
May 28th, 2019 Q1 2019 Financial Performance
10
Including the result of Quality Espresso as if it was acquired on January 1, 2018 excluding the discontinued business SGL with Lavazza
Good results in the three months ended March 31st, 2019: Adjusted EBITDA increased by Euro 2 million compared to 2018 (with Adjusted
EBITDA margin at 23.3% compared to 22.7% for the three months ended March 31st, 2018), primarily as a result of revenue increase in
the different segments, product mix and synergies arising from the integration of companies acquired.
Operating profit is Euro 24.9 million for the three months ended March 31st, 2019, Euro 2 million more compared to Euro 22.9 million for
the three months ended March 31st, 2018, representing 20% of revenue compared to 19.2% of same period 2018.
Other costs of Euro 0.4 million included in Operating Profit refer to integration and acquisition expenses.
Actual Cash Flow
May 28th, 2019 Q1 2019 Financial Performance
11
Including the result of Quality Espresso from the date of its acquisition (**)
(**) Quality Espresso acquisition occurred on May 15th, 2018.
March 31, March 31, March 31, December 31,
Condensed cash flow statement 2019 2018 2019 2018
(€ thousands)
Adjusted EBITDA 28,990 26,261 108,335 105,605
Change in Trade Working Capital (8,914) (13,541) (1,436) (6,062)
Change in Other Working Capital (1,059) (6,782) (3,772) (9,496)
Taxes (682) (816) (6,736) (6,870)
Special costs (1,016) (597) (6,494) (6,075)
Cash flow from operations 17,319 4,525 89,897 77,102
Investment in assets (Capex) (5,637) (3,864) (27,630) (25,857)
Equity injection for tax settlement 2,251 2,247 8,997 8,993
Tax settlement instalment net of tax refund (2,251) (2,247) (8,997) (8,993)
Price paid for acquisition - (17,723) (17,723)
Cash flow utilised in investing activities (5,637) (3,864) (45,353) (43,580)
Interest and other financial charges paid (412) (814) (40,975) (41,377)
Financial debt raising/(repayment) (502) (1,271) (36,543) (37,311)
Financial debt raising 212 - 36,712 36,500
Cash flow (utilised in)/from financing activities (703) (2,085) (40,806) (42,188)
Cash flow (utilised in)/from the period 10,980 (1,424) 3,738 (8,666)
Cash at Beginning of Period (*) 47,673 56,340 54,915 56,340
Closing cash balance (*) 58,654 54,915 58,654 47,673
For the three months ended For the twelve months ended
(*) Excluding Euro 4.9 million in the escrow account
May 28th, 2019 Q1 2019 Financial Performance
12
Including the result of Quality Espresso from the date of its acquisition
Actual Cash Flow
For the three months ended March 31st, 2019 cash flow generation was positive of Euro 11 million compared to negative performance of Euro 1.4
million in the three months ended March 31st, 2018. Enhanced performance versus previous year mainly driven by cash flow from operating
activities.
Operating cash flow: for the three months period ended March 31st, 2019 cash flow generated from operating activities is Euro 17.3 million
compared to Euro 4.5 million of the three months period ended March 31st, 2018. The increase of Euro 12.8 million is attributable to better economic
performances and Working Capital results.
Investing cash flow: net cash used in investing activities is equal to Euro 5.6 million for the three months period ended March 31st, 2019, Euro 1.8
million more compared to Euro 3.9 million of the three months period ended March 31st, 2018 represented by the net capital expenditures of the
quarter.
Financing cash flow: net cash used in financing activities is equal to Euro 0.7 million for the three months period ended March 31st, 2019
compared to Euro 2.1 million of the three months period ended March 31st, 2018. This mainly comprises the repayment of bank loans and other
finance charges paid.
Actual Net Debt
May 28th, 2019 Q1 2019 Financial Performance
13
The ratio of Net Debt to Adjusted EBITDA of EVOCA Group (pro forma Adjusted EBITDA related to Quality Espresso) is equal to 4.2x as of March 31st,
2019 improving on the 4.3x ratio and the 4.4x ratio as of December 31st, 2018 and September 30th, 2018 respectively.
Including the result of Quality Espresso from the date of its acquisition
(€ thousand)March 31,
2019
December
31, 2018
September
30, 2018
June 30,
2018
March 31,
2018
Senior Secured Notes - Capital 410,000 410,000 410,000 410,000 410,000
Second Lien Notes - Capital 100,000 100,000 100,000 100,000 100,000
Revolving Facility 0 17,000 -
Senior Secured Notes - Interests 13,154 5,979 13,154 5,979 13,154
Second Lien Notes - Interests 4,813 2,188 4,813 2,188 4,813
Revolving Facility - Interests&Commit. Fee 12 10 7 114 12
Finance leases 364 409 114 105 168
Bank overdraft&other loans 0 246 0 0 58
Gross Debt (*) 528,343 518,832 528,088 535,385 528,205
Less: cash (**) (58,654) (47,673) (45,766) (56,701) (54,915)
Net Debt 469,689 471,159 482,321 478,684 473,289
Adjusted EBITDA 108,692 106,729 105,253 102,831 97,287
Net Debt (***)/Adjusted EBITDA 4.2 4.3 4.4 4.6 4.7
(*) Excluding Capitalized Financing Fees
(**) Cash excludes amounts in escrow accounts
(***) Net Debt excludes accrued interest on the Notes
May 28th, 2019 Q1 2019 Financial Performance
14
EVOCA S.p.A.
Quarterly Financial Performance
Q1 2019 – Period ended March 31st, 2019
I. Q1 2019 Financials Summary
II. Appendix
Actual Key figures
May 28th, 2019 Q1 2019 Financial Performance
15
Including the result of Quality Espresso from the date of its acquisition
(€ thousands) March 31, March 31, March 31, December 31,
2019 2018 2019 2018
Results
Revenue 124,398 111,535 464,616 451,753
Adjusted EBITDA* 28,990 26,261 108,335 105,605
Adjusted EBITDA margin** 23.3% 23.5% 23.3% 23.4%
Operation profit/(loss) 13,893 11,417 40,058 37,581
Profit/(Loss) for the period 4,191 464 (5,577) (9,304)
Cash flow
Cash at the beginning of period 47,673 56,340 54,915 56,340
Net cash flow from operating activities 17,321 4,525 89,898 77,102
Net cash flow from investing activities (5,637) (3,864) (45,353) (43,580)
Of which: capital expenditures (5,637) (3,864) (27,630) (25,857)
Of which: Acquisition - - (17,723) (17,723)
Net cash flow from financing activities *** (703) (2,085) (40,806) (42,188)
Cash at the end of period **** 58,654 54,915 58,654 47,673
Financial Position
Net debt***** 451,710 462,982
Net debt / Adjusted EBITDA ****** 4.2 4.3
(*)
(**) We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenues.
(***) Cash Flow from financing activities includes interest payment.
(****)
(*****)
(******) Adjusted EBITDA for the tw elve months ended March 31, 2019 pro forma for the ratio calculation is €108.7 million.
For the three months ended For the twelve months ended
We define Adjusted EBITDA as net profit (loss) plus income tax expense, net f inancial income (expense), depreciation, amortization,
special costs and the Real/Euro and Argentinian Peso/Euro (since August 2018) foreign exchange adjustment. We present non-IFRS
measures because w e believe they and similar measures are w idely used by certain investors, securities analysts and other interested
parties as supplemental measures of performance and liquidity and are intended to assist in the analysis of our operating results,
profitability and ability to service debt. Adjusted EBITDA is not a measure of f inancial performance under IFRS and should not be
considered in isolation or as an alternative to any other measures of performance derived in accordance w ith IFRS. Adjusted EBITDA, as
presented in this Report, may not be comparable to similarly titled measures reported by other companies.
Cash excludes Euro 4.9 million held in escrow accounts.
Net Debt at March 31, 2019 consists of Senior Secured Notes, Second Lien Notes and €0.4 million of other debt, less cash and cash
equivalents, net of escrow accounts of Euro 4.9 million.
Actual Balance Sheet
May 28th, 2019 Q1 2019 Financial Performance
16
Condensed balance sheetMarch 31,
2019
December 31,
2018
(€ thousands)
Property, plant and equipment 51,341 51,521
Goodwill and other intangible assets 659,999 667,808
Other non current assets 790 671
Fixed assets 712,130 720,000
Net trade receivables 109,454 98,631
Inventories 76,963 70,371
Trade payables (105,112) (96,971)
Other net working capital (55,438) (62,601)
Current and deferred income taxes (62,683) (59,755)
Assets classified as held for sale 2,160 2,160
Capital employeed 677,475 671,836
Equity 213,720 206,945
Secured Notes and Revolving Facilities 527,979 518,176
Financing fees (5,934) (6,268)
Bank and other borrowings - 246
Finance Leases 364 409
Cash (*) (58,654) (47,673)
Net financial debt (incl. financing fees) 463,755 464,890
(*) Cash excludes the escrow accounts of Euro 4.9 million
Actual Revenue
May 28th, 2019 Q1 2019 Financial Performance
17
Including the result of Quality Espresso from the date of its acquisition
March 31, 2019 March 31, 2018 Variance %
Revenue by geography (€ thousands) 124,398 111,535 11.5%
Italy 29,404 29,532 (0.4%)
France 16,113 16,189 (0.5%)
Spain 16,664 8,190 103.5%
UK 2,535 2,503 1.3%
Germany 5,939 5,234 13.5%
Nordics 5,090 5,273 (3.5%)
Other Europe 15,051 15,252 (1.3%)
East Europe 10,976 10,580 3.7%
Africa & Middle East 1,051 1,817 (42.1%)
Asia & Pacific 5,338 4,725 13.0%
North America 11,841 7,546 56.9%
Central & South America 4,397 4,695 (6.3%)
Revenue by segment (€ thousands) 124,398 111,535 11.5%
Auto coffee (1) 35,786 36,755 (2.6%)
Semi auto coffee (2) 50,617 38,186 32.6%
Impulse (3) 12,818 14,086 (9.0%)
Accessories, Spares & Services 25,177 22,508 11.9%
(1) Auto coffee: machines for large sized location. Defined as machines with cup dispensing technology
(2) Semi auto coffee: machines for small/medium sized location without cup dispensing technology
(3) Impulse: machines dispensing snack&food and can&bottle
For the three months ended
Actual Income Statement
May 28th, 2019 Q1 2019 Financial Performance
18
Including the result of Quality Espresso from the date of its acquisition
(€ thousands)
March 31,
2019
March 31,
2018
Revenue from Sales 124,398 111,535
Cost of sales (76,307) (67,910)
Gross profit 48,091 43,625
Sales & Marketing (11,495) (10,619)
Logistic (2,090) (2,062)
Administration (5,266) (4,494)
Operating Exchange Difference (250) (190)
Total operating costs (19,101) (17,365)
Adjusted EBITDA 28,990 26,261
Depreciation (1,959) (1,764)
Amortisation (1,874) (1,237)
Operating profit non business related items and PPA 25,158 23,259
Amortisation from PPA (11,024) (10,809)
Brazilian/Argentinian Operating Exchange Difference 127 (280)
Restructure costs (17) (10)
Special costs (351) (744)
Operating profit 13,893 11,417
Finance Income 632 47
Finance costs (10,591) (11,484)
Net finance expenses (9,960) (11,437)
(Loss) before income tax 3,933 (20)
Income tax expense 258 484
(Loss) for the period from continuing operations 4,191 464
For the three months ended
Q&A
www.evocagroup.com