Consolidated sales reached 491 million euros (Mâ¬) plus 28 M⬠(+6%);. â¢. Growth justified by the effect of volume a
CORTICEIRA AMORIM, S.G.P.S., S.A. Consolidated results September, 30
1. CONSOLIDATED RESULTS Organizational chart Highlights Consolidated key indicators (thousand euros)
2
INTEGRAL VERTICALISATION
3
HIGHLIGHTS
•
Consolidated sales reached 491 million euros (M€) plus 28 M€ (+6%);
•
Growth justified by the effect of volume and mix. Exchange rate effect with little impact on sales. All Business Units (BU) registered more sales.
•
Highlight for Cork Stoppers BU (+9.3%) and Floor and Wall Coverings BU (+6.3%). This BU managed to regain the positive trend of its sales;
•
Slower growth rate in Q3 (1H16: 8% vs. 9M16: 6%): one-off destocking effect in the US in the Cork Stoppers BU and comparison difficult with 3Q15 in Cork Composites BU (3Q15 registered a sales increase of 27%);
•
NDTech® sales initiated (with materiality) in the semester;
•
Growing importance of Hydrocork® in Floor and Wall Coverings BU; promising start to Authentica® sales.
4
HIGHLIGHTS
•
Increased sales, more favorable mix, improves percentual gross margin and lower operating costs justify an increase of 19.1% in EBITDA (95.5 M€ vs. 80.2 M€);
•
EBITDA/Sales 9M16: 19.4% (9M16: 17.3%);
•
EBITDA/Sales 9M16 for Raw Materials + Cork Stoppers: 21.8% (9M15: 20.4%);
•
Positive effect of 1.8 M € in the financial function resulting from the favorable resolution of a tax dispute concerning the stamp duty;
•
Net Profit of 35.145 M€ (+34%);
•
The Board of Directors decided to propose to the Shareholders General Meeting the distribution of a dividend of € 0.08 per share, on the top of the €0.16 per share payed during 2016 first half;
•
Disclosure of the sale of US Floors associate, to be made during 4T16, without effect in 9M16 accounts. 5
CONSOLIDATED KEY INDICATORS
SALES
EBITDA (current) +6.0%
490.857
462.889
429.685
140,000 120,000
16.8%
15.4%
80,000
156.900
153.692
80,155
66,083 ***
20.0%
95,446
**
100,000
19.4%
18.9%
17.3%
9M 15
3Q 16
9M 16
14.0%
8.0%
29,592
25,776
6.0% 4.0% 2.0%
0
3Q 15
16.0%
10.0%
20,000
9M 14
18.0%
12.0%
60,000 40,000
*
0.0%
9M 14
3Q 15 EBITDA
9M 15
3Q 16
9M 16
EBITDA (%sales)
* excludes 3730 K€ due to non-current results ** excludes 2907 K€ due to a Goodwill impairment *** excludes 3514 K€ due to an industrial reorganization
ASSET
NET DEBT
+1.4%
-25.5%
716.871
727.063
94.754
86.277 64.255
655.457
9M 14
9M 15
9M 16
9M 14
9M 15
9M 16
6
2. HIGHLIGHTS AND KEY INDICATORS BY BUSINESS UNIT (thousand euros)
7
HIGHLIGHTS AND KEY INDICATORS: RAW MATERIALS BU
SALES
Activity increase 10.6% +10.6%
•
Sales for the value chain increased 9% slightly above the increase of activity of the Cork Stoppers, its main customer);
•
EBITDA reached 13.9 M€, a increase of 3.3% compared to 13.4 M€ in the 9M15;
•
Impact of increased price of the cork year 2014 and 2015 offset by increased activity and improving operating efficiency;
•
Campaign 2016 (Portugal / Spain) was held as planned;
112,506 101,696
98,490
9M 14
9M 15
9M 16
EBITDA (current) 30,000
25,000
16.0%
13.2%
11.9%
12.3%
12.0%
20,000
15,000
11,736
14.0%
**
13,407
*
13,851
10.0% 8.0%
* excludes 55 K€ due to non6.0% current results
10,000
4.0%
** excludes 303 K€ due to 2.0% non-current results
5,000
0
0.0%
9M 14 EBITDA
9M 15
9M 16 EBITDA (%sales)
8
HIGHLIGHTS AND KEY INDICATORS: CORK STOPPERS BU
Increased sales by 7.4% •
Sales reached 324 M€ (9M15: 302 M€) driven by volume and by the mix effect (more natural cork stoppers + NDtech®);
•
One-off effect: destocking USA (wine industry consolidation) with a material impact in Q3;
•
Highlighting the favorable performance of Natural and Neutrocork® stoppers;
•
First sales, with materiality, of cork stoppers treated with the innovative NDtech® technology;
•
Relevant performance in the traditional European markets;
•
Sales growth higher than growth market pace;
•
EBITDA reached 58.6 M€ (+21%): increased sales and better mix led to EBITDA/Sales to move from 16% (9M15) to 18.1% (9M16);
•
EBITDA/Sales of Cork Stoppers + Raw Materials reached 21.7% (9M15: 20.4%).
9
HIGHLIGHTS AND KEY INDICATORS: CORK STOPPERS BU
SALES Cork stoppers +7.4%
323,995
EBITDA (current)
301,756
Cork Stoppers + Raw Materials
275,841 100,000
80,000
9M 14
9M 15
40,000
Cork Stoppers
20,000
16.0%
80,000
13.9%
60,000 50,000 40,000
60,000
EBITDA (current) 90,000
70,000
9M 16
38,229 ***
48,419 **
18.1%
21.0% 19.0%
*
58,598
17.0%
17.9%
20.2% **
***
49,965
61,826
25.0%
21.7% *
20.0%
71,779
15.0% * excludes 3730K€ due to noncurrent costs 10.0% ** excludes 2907 K€ due to a Goodwill impairment 5.0% *** excludes 687 K€ due to noncurrent costs
0
0.0%
9M 14 EBITDA CS + RM
9M 15
9M 16 EBITDA (%sales)
15.0% 13.0% * excludes 3675K€ due to non11.0%costs current 9.0%
** excludes 2907 K€ due to a 7.0% Goodwill impairment ***5.0% excludes 384 K€ due to non3.0% costs current
30,000 20,000 10,000 0
1.0%
9M 14 EBITDA
9M 15
9M 16 EBITDA (%sales)
10
HIGHLIGHTS AND KEY INDICATORS: FLOOR & WALL COVERINGS BU
SALES
Sales increase of 6.4% (manufactured products: +7.1%) +6.4%
89,831
88,800 84,465
9M 14
9M 15
9M 16
EBITDA (current) 18,000
13.6%
14.0%
16,000 14,000
12,064
12,000 10,000
10.4% 8.5%
Sales reached 89.8 M€;
•
Upturn confirmed in sales growth;
•
Hydrocork® increases weight in total sales and promising early Authentica® sales;
•
Recovery of sales in the US; negative impact on the Russian market continues;
•
Sales growth and reduced operating costs more than offset less favorable mix: EBITDA reaches 9.3 M€ (29.9% higher than 9M15).
10.0%
9,341
7,192
8,000
12.0%
•
8.0% 6.0%
6,000 4.0% 4,000 2.0%
2,000 0
0.0%
9M 14 EBITDA
9M 15
9M 16 EBITDA (%sales)
11
HIGHLIGHTS AND KEY INDICATORS: CORK COMPOSITES BU
Increased sales: 2.4%
SALES +2.4%
76,957
75,136
•
Sales reached 77 M€;
•
Increase in sales is mainly due to volume effect, with currency effects much lower than in recent quarters;
•
Sales of 3Q16 decrease 3.4%, resulting from exceptional comparative 3Q15 (3Q15 sales: + 27%);
•
Highlight for Retail, Industry and Construction and Inlay (Hydrocork®);
•
Asian market and US with good performance;
•
Better percentual gross margin (lower price and better performance of some raw materials), stable operating costs and increased activity justify EBITDA growth (9M16: 14.8 M€ vs 9M15: 11.5 M€).
62,918
9M 14
9M 15
9M 16
EBITDA (current) 19.2% 20,000
15,000
10,000
15.3% 10.9%
14,812
20.0%
15.0%
11,495 10.0%
*
6,827
* excludes 2827 K€ 5.0% due to industrial reorganization
5,000
0
0.0%
9M 14 EBITDA
9M 15
9M 16 EBITDA (%sales)
12
HIGHLIGHTS AND KEY INDICATORS: INSULATION CORK BU
Sales increase: +18.8%
SALES +18.8%
9,001
9M 14
9M 15
9M 16
EBITDA (current) 3,000
21.4%
16.8%
15.8%
2,000
1,927
25.0%
•
Sales growth influenced by the supply of crushed cork to Composite Cork BU;
•
Sales increase of the main product (expanded corkboard) justified by volume (+2%);
•
Increase in sales regranulates);
•
EBITDA reached 1.9 M€ (+61%), representing 21.4% of sales;
1,278
•
EBITDA/Sales: 21.4%, comparing to 15.8% registered on 9M15.
of
specialties
(MDFaçade
1,196 10.0%
1,000 5.0%
500
0
0.0%
9M 14 EBITDA
9M 15
9M 16 EBITDA (%sales)
+
20.0%
15.0% 1,500
Sales reached 9 M€;
7,577
7,622
2,500
•
13
3. APPENDICES Consolidated indicators (thousand euros)
14
BREAKDOWN SALES BY BUSINESS UNIT Composite Cork 14%
Insulation Cork 2%
Raw Materials 1%
Floor and Wall Coverings 18%
Cork Stoppers 65%
Raw Materials
9M 2014 1%
9M 2015 1%
9M 2015 1%
Cork Stoppers
64%
65%
65%
Floor and Wall Coverings
20%
18%
18%
Composite Cork
14%
15%
14%
Insulation Cork
1%
1%
1% 15
EBIT & EBITDA EVOLUTION
15.4%
17.3%
16.8%
18.9%
19.4%
20.0% 15.0%
95,446 80,155 66,083
77,385
61,441
5.0%
49,397 9M 14
25,776 21,120 3Q 15
10.0%
9M 15
24,682 29,592 3Q 16
0.0%
9M 16 -5.0%
9M 14
3Q 15
9M 15 EBIT
3Q 16
9M 16
-10.0%
EBITDA
EBITDA (%sales)
Gross Margin Other operating costs (current) EBIT EBITDA
9M 14 213,126 163,729 49,397 66,083
3Q 15 77,080 55,960 21,120 25,776
9M 15 242,339 180,898 61,441 80,155
3Q 16 79,899 55,217 24,682 29,592
9M 16 256,175 178,791 77,385 95,446 16
BREAKDOWN EBITDA BY BUSINESS UNIT
95,446
14,812 13,851
1,927
Raw-Materials
Insulation Cork
9,341
3,082
58,598
Cork Stoppers
Floor & Wall Coverings
Composite Cork
Other
Consolidated EBITDA
17
OPERATING COSTS BREAKDOWN
38.0%
37.7%
240,000 190,000
37.9%
37.6%
180,898
37.0% 178,791
163,729
39.0% 37.0% 35.0% 33.0%
140,000
31.0% 29.0%
90,000
55,960
55,217
27.0%
40,000
25.0%
9M 14
3Q 15
9M 15
Total Operating Costs (current)
3Q 16
9M 16
% Production
External supplies Staff costs Depreciation Provisions Other operating (-) expenses and (+) profits Total Operating Costs (current) % Production
9M 14 71,731 76,169 16,687 1,315 2,173 163,729 38.0%
3Q 15 25,012 23,918 4,657 1,865 -509 55,960 37.7%
9M 15 76,425 81,127 18,715 2,692 -1,940 180,898 37.9%
3Q 16 25,071 24,898 4,910 1,042 703 55,217 37.6%
9M 16 77,187 84,128 18,061 2,022 2,607 178,791 37.0% 18
STAFF COSTS
VALUE AND % (SALES) 20.0% 120,000
17.7%
100,000 80,000
76,169
17.5%
81,127
17.1%
18.0%
84,128
16.0%
60,000
14.0%
40,000
12.0%
20,000
10.0%
9M 2014
9M 2015 Staff Costs
NUMBER OF EMPLOYEES
9M 2016 % Sales
Average September, 30
3,657
3,697
3,674
3,716
3,521 3,459
9M 2014
9M 2015
9M 2016 19
NET PROFIT
95,446 453 18,061
EBITDA current
2,306 55,224
3,730
Depreciation Non-current Interest and costs other similar costs
Gains of Associates
EBIT current Net financial costs Non-current costs Gains of associates EBT Tax Minority interests Net Profit
20,179
1,011
Tax
Noncontrolling interests
Net Profit
9M 14 49,397 3,154 3,514 926 43,655 13,926 695 29,034
3Q 15 21,120 558 -5 956 21,522 6,006 128 15,388
9M 15 61,441 1,696 2,907 2,040 58,878 17,088 181 41,610
3Q 16 24,682 -1,405 0 1,365 27,453 7,100 274 20,078
9M 16 77,385 -453 3,730 2,306 76,414 20,179 1,011 55,224
20
DEBT AND GEARING
190,000
52.1%
53.4%
170,000
150,000
48.3%
130,000
110,000
94,754
90,000
86,277 64,255
70,000 50,000
9M 14
3Q 15 Net Debt
56.0% 54.0% 52.0% 50.0% 48.0% 46.0% 44.0% 42.0% 40.0% 38.0%
9M 15 Equity / Total Assets
Net Debt Equity and Minority interests EBITDA / Net Interest Equity / Total Assets Gearing Net interest bearing debt /EBITDA
9M 15 9M 14 94,754 86,277 316,650 373,217 69.5 29.1 52.1% 48.3% 23.1% 29.9% 0.86 1.14
9M 16 64,255 388,455 105.6 53.4% 16.5% 0.55 21
TOTAL ASSETS Other current assets 7% Non-current assets 32% Customers 20%
10% 30% 20%
9M 15 9M 16
40%
Inventories 41%
Non-current assets Inventories Customers Other current assets Total Assets Capex
9M14 213,438 257,934 137,649 46,436 655,457
9M15 213,041 286,153 144,287 73,390 716,871
9M16 234,505 294,198 146,836 51,524 727,063
15,023
16,681
20,248 22
EQUITY AND LIABILITIES
Other noncurrent liabilities Provisions 8% 5%
4%
Trade payables 19%
11% 20%
13% 52%
Other current liabilities 15% 9M 15 9M 16
Equity 53%
9M 14
9M 15
9M 16
Equity Provisions Other non-current liabilities Trade payables
316,650 373,217 388,455 24,596 28,653 34,478 53,634 81,617 55,752 125,948 142,109 141,313
Other current liabilities Total Liabilities
134,629 91,275 107,065 338,807 343,654 338,607 23
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Non-current assets
September 2016
December 2016
September 2015
234,505
223,689
213,041
294,198 198,360 492,558 727,063 388,455
271,705 171,824 443,530 667,219 354,133
286,153 217,677 503,830 716,871 373,217
38,160 52,070 90,230
41,211 48,985 90,196
61,521 48,749 110,270
36,019 212,359 248,378 727,063
50,146 172,744 222,890 667,219
29,059 204,325 233,384 716,871
Current a s s ets Inventori es Other current a s s ets Total current assets Total Assets Equity (M. I. included) Non-current l i a bi l i ties Ba nk borrowi ngs Other non-current l i a bi l i ties Total non-current liabilities Current l i a bi l i ties Ba nk borrowi ngs Other current l i a bi l i ties Total current liabilities Total Liabilities and Equity
24
KEY FIGURES
9M16
9M15
Variation
3Q16
3Q15
Variation
Sa l es
490,857
462,889
6.0%
156,900
153,692
2.1%
Gros s Ma rgi n – Va l ue
256,175
242,339
5.7%
79,899
77,080
3.7%
50.7% + 2.3 p.p.
54.4%
1)
Opera ting Cos ts - current EBITDA - current
53.0%
52.0% + 2.4 p.p.
178,790
180,899
-1.2%
55,217
55,961
-1.3%
95,446
80,155
19.1%
29,592
25,777
14.8%
17.3% + 2.1 p.p.
18.9%
EBITDA/Sa l es
19.4%
EBIT - current
77,385
61,440
26.0%
24,682
21,120
16.9%
3,730
2,907
N/A
0
-5
N/A
55,224
41,610
32.7%
20,078
15,388
30.5%
0.415
0.330
25.9%
0.151
0.122
23.8%
-
-
Non-current cos ts
2)
Net Income Ea rni ngs per s ha re
16.8% + 2.1 p.p.
Net Ba nk Debt
3)
64,255
86,277
-22,022
-
Net Ba nk Debt/EBITDA (x)
4)
0.55
0.86
-0.31 x
-
EBITDA/Net Interes t (x)
5)
105.6
69.5
36.12 x
46.5
62.5
-16.05 x
52.1% + 1.4 p.p.
-
-
-
Equi ty/Net As s ets 1)
53.4%
-
-
Related to Production
2) Figures refer to the provision for labor and customs litigation in Amorim Argentina, deferred costs concerning business started in the previous year and adjustments related to non-controlling interests (2016) and write-off of Goodwill (2015) 3) 9M 15: Excluding the value of the dividend proposal of the Board of Directors to the GSM amounting to 32.6 M €to be paid in November 4)
Current EBITDA of the last four quarters
5)
Net interest includes interest from loans deducted of interest from deposits (excludes stamp tax and commissions)
25
CORTICEIRA AMORIM, S.G.P.S., S.A. Rua de Meladas, nº 380 Apartado 20 4536-902 MOZELOS VFR PORTUGAL Tel.: 22 747 54 00 Fax: 22 747 54 07 Email:
[email protected] www.corticeiraamorim.com
26
