2022 ORIOR Group

HALF YEAR RESULTS

Disclaimer

This presentation is not a prospectus within the meaning of Article 652A of the Swiss Code of Obligations, nor is it a listing prospectus as defined in the listing rules of the Six Swiss Exchange AG or a prospectus under any other applicable laws.

These materials do not constitute or form part of any offer to sell or issue, or any solicitation or invitation of any offer to purchase or subscribe for, any securities, nor shall part, or all, of these materials or their distribution form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities.

The materials might contain forward-looking statements based on the currently held beliefs and assumptions of the management of ORIOR AG. Management believes the expectations expressed in such statements are based on reasonable assumptions. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, financial condition, performance, or achievements of ORIOR AG, or industry results, to differ materially from the results, financial condition, performance or achievements expressed or implied by such forward-looking statements.

Note to performance measures

ORIOR uses alternative performance measures in this presentation which are not defined by Swiss GAAP FER. These alternative performance measures provide useful and relevant information regarding the operative and financial performance of the Group. The document "Alternative Performance Measures Half Year 2022", which is available on https://orior.ch/en/financial-reports, defines these alternative performance measures.

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Agenda

1H 2022

  • CEO statement
  • ORIOR Group's operating profile
  • Group initiatives
  • ORIOR segments
  • Consolidated income statement and balance sheet
  • Additional key figures ORIOR Group

Outlook

  • CEO statement
  • ORIOR Group
  • ORIOR segments

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CEO statement

Broadly based organic growth

Top line > Strong 5.9% increase in revenues to CHF 309.2 million

  • Organic: +7.7%, currency exchange effect -1.8%
    Well over half of this growth was driven by higher volumes - in every segment
  • Key growth drivers: the International segment with exceptionally good growth from Casualfood and Culinor; and the continued positive performance at Convenience, largely fueled by trending product categories such as plant-based, regional and organic products.

Profitability > Considering the general environment, EBITDA was solid at CHF 30.2 million (H1 21: CHF 31.1 million)

  • 9.8% EBITDA margin
  • Key factors: growth in high-margin product categories; foresighted procurement; responsible, staggered price adjustments from spring 2022 on; and significantly lower pandemic relief payments.

Key Group initiatives

  • ORIOR 2025 Strategy
  • "ORIOR New Normal" / Site management:
    • New plant-based production capacity goes into operation
    • Two factories closed; production volumes transferred to existing, larger production facilities
  • The ORIOR Responsibility / ESG:
    • All ORIOR operations in Switzerland are climate neutral certified, as of January 2022
    • Systematic sustainability management plan for the entire Group
    • Several upgrades from external sustainability rating agencies

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CEO statement

Update on impact of challenging global economic situation

  • The increase in input costs has a variety of consequences:
    • Durum wheat is in tight supply around the world, prices have soared
      • ORIOR sources durum wheat from Canada; prices for H1 were fixed in advance; negotiations for subsequent periods are currently ongoing (crop numbers and Ukrainian exports are critical factors).
    • Energy > A significant share of our electricity needs was secured in advance at fixed prices > subsequent cost increases cannot be passed through > efficiency-enhancing measures have been initiated.
    • In Switzerland, pork and beef (two most important commodities in CHF) are subject to a dynamic price adjustment mechanism (markups or markdowns) arranged by food manufacturers and retailers.
    • Rising prices for other commodities such as poultry, eggs, other types of meat, plastics, etc.
      • constant negotiations on price adjustments to pass on increase in costs; gradual, delayed cost

pass-through from spring 2022 on.

    • Logistics > ORIOR's supply chains are generally short and usually completely located within its target markets, but the scope for passing on cost increases is very limited.
    • Energy and raw materials prices have risen the most in Belgium > challenging price negotiations > innovative new product launches have provided some relief.
    • Casualfood is less affected by rising costs because its B2C business model gives it more pricing power.
  • Inflation is putting pressure on household budgets
    • ORIOR's target German and Belgian markets are clearly impacted by high inflation, currently at about +7.5% and +9.6%.
  • Forex > strong Swiss franc
    • Slightly positive impact on the procurement of foreign goods.
    • Negative impact on the Group's top and bottom lines stemming from the International segment.

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Orior AG published this content on 16 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 04:11:10 UTC.