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Q2 2016 results – 15 July 2016
David Nuutinen, CEO
Danko Maras, CFO
Jacob Broberg, SVP IR
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Good sales growth and improved operating profit
• Net sales for the quarter increased by 6.4 per cent to SEK 1,362m (1,280),
including a negative impact from foreign exchange rates of 0.5 per cent.
• Operating profit increased to SEK 142m (130).
• Cash flow from operating activities amounted to SEK 114m (163).
• Net debt/EBITDA ratio was 2.82x (3.30).
Q2 highlights
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Overall market and sales development Total sales growth of 6.4 per cent
• Somewhat negative market developments, except
in Sweden and Italy.
• Organic growth 2.0 per cent.
• Sales grew in Sweden, Finland, Norway, Denmark,
were unchanged in Germany, and declined in Italy,
the UK, the Netherlands and export markets.
• Positive sales trend in Sweden driven by improved
distribution and pick-and-mix. In Finland sales were
fueled by pick-and-mix and pastilles.
• Drop in sales in the UK partly attributable to weaker
British pound.
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Cloetta´s main markets
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1) Organic growth at constant exchange rates and comparable units was 2.0 per cent for the quarter and 0.6 per cent for the first half year.
Key ratios,
SEKm
Apr-Jun
2016
Margin
%
Change
%
Apr-Jun
2015
Margin
%
Rolling
12
Full year
2015
Net sales 1,362 6.41 1,280 5,801 5,674
Gross profit 572 42.0 9.2 524 40.9 2,274 2,211
Operating profit, adjusted 150 11.0 12.8 133 10.4 725 690
Operating profit (EBIT) 142 10.4 9.2 130 10.2 701 671
Net financial items -32 -39 -169 -178
Profit before tax 110 20.9 91 532 493
Profit for the period 77 16.7 66 408 386
Good sales growth and improved
operating profit
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Changes in net sales Apr-Jun
2016
Apr-Jun
2015
Full year
2015
Organic growth 2.0% 0.8% 1.5%
Structural changes 4.9% 1.2% 3.9%
Changes in exchange rates -0.5% 1.4% 1.4%
Total 6.4% 3.4% 6.8%
Changes in net sales
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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
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4
SE
Km
74
108
193
257
108
133
194
255
126
150
0
50
100
150
200
250
300
Q1 Q2 Q3 Q4
SE
Km
1.600
0
1.400
1.500
1.300
1.200
1.700
1.193
Q4 Q1
1.313
1.238
1.622
1.358 SE
Km
1.579
1.303
Q2
1.459
Q3
1.362
1.280
2015 2016 2014
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-35
125 93
147
-16 -23
54
116
91 44
75
290 223
163 174
367
253
114
330
131
500
927
-200
0
200
400
600
800
1000
1200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
SE
Km
Cash flow from operating activities Cash flow from operating activities (rolling 12 months)
Strong cash flow from operating activities
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2012 2013 2014 2015 2016
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SEKm Apr-Jun
2016
Apr-Jun
2015
Rolling
12
Full year
2015
Cash flow from operating activities before changes in working
capital
149 100 801 697
Cash flow from changes in working capital -35 63 107 230
Cash flow from operating activities 114 163 908 927
Cash flow from investments in property, plant and equipment
and intangible assets
-32 -28 -148 -161
Cash flow from other investing activities - - -206 -206
Cash flow from investing activities -32 -28 -354 -367
Cash flow from operating and investing activities 82 135 554 560
Cash flow from financing activities -232 -34 -561 -518
Cash flow for the period -150 101 -7 42
Continued strong cash flow
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Stable net debt/EBITDA despite dividend payments
2013
Financial leverage
0,0
5,0
4,0
3,5
3,0
2,5
4,5
Q3 Q4 Q1 Q1 Q3 Q1 Q2 Q3 Q4
2,50 Target
Q2 Q2 Q1 Q2 Q4
2014 2015 2016
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Profitable growth Closure of factory
in Dieren
Implement and
drive initiatives
within pick-and-mix
Operational
excellence in
supply chain
through Lean2020
initiative
In focus
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Sweden
Norway and Finland
Travel Retail Nordic
Q2 selection of product launches
Sweden and Norway
Finland
The Netherlands
Norway
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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 operate 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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