Anora Group Oyj — Earnings Release 2021

Mar 10, 2022

Anora: Strong full-year 2021, Q4 impacted by lower sales in monopolies and increasing costs

Anora: Strong full-year 2021, Q4 impacted by lower sales in monopolies and increasing costs

Anora Group Plc   Stock Exchange Release  10 March 2022 at 8:30 am EET

Anora: Strong full-year 2021, Q4 impacted by lower sales in monopolies and
increasing costs

This release is a summary of Anora Group Plc's Financial Statements Bulletin
2021. The complete report is attached to this release and is also available on
the company website at: www.anora.com/investors (https://anora.com/en/investors)

Pro forma financial information

· Q4 2021: net sales EUR 205.6 (196.5) million and comparable EBITDA 30.6
(36.3) million
· January-December 2021: net sales EUR 665.0 (627.7) million and comparable
EBITDA 101.0 (98.3) million

Q4 2021 compared to Q4 2020

· Reported net sales increased by 93.1% to EUR 205.6 (106.5) million; growth
in constant currencies 88.7%
· The Finland & Exports segment’s net sales were EUR 37.7 (34.4) million
· The Scandinavia segment’s net sales were EUR 47.2 (46.4) million; decrease
in constant currencies 0.8%
· Altia Industrial’s net sales were EUR 29.9 (25.7) million
· Arcus segment’s net sales were EUR 90.7 (-) million
· Comparable EBITDA was EUR 31.4 (19.0) million, 15.3% (17.9%) of net sales
· Reported EBITDA was EUR 31.3 (13.5) million, 15.2% (12.7%) of net sales
· Net cash flow from operating activities was EUR 57.6 (50.2) million
· Net debt / comparable EBITDA was 1.8 (-0.1)

January-December 2021 compared to January-December 2020

· Reported net sales increased by 39.7% to EUR 478.2 (342.4) million; growth
in constant currencies 38.3%
· Comparable EBITDA was EUR 71.7 (52.4) million, 15.0% (15.3%) of net sales
· Items affecting comparability were EUR -8.8 (-12.1) million, mainly relating
to the merger of Altia and Arcus
· Reported EBITDA was EUR 62.9 (40.3) million, 13.1% (11.8%) of net sales

Dividend proposal

Anora’s Board of Directors proposes to the Annual General Meeting that a
dividend of EUR 0.45 per share be paid for the financial year 2021. In its
proposal the Board has considered former Altia’s dividend policy to pay 60% or
more of the result for the period as a dividend to the shareholders. Anora’s
financial targets including a dividend policy will be set in connection with the
on-going strategy process.

Guidance

Anora’s comparable EBITDA in 2022 is expected to be between EUR 75-85 million.
This corresponds to the pre-pandemic level and takes into account the annual
impact of EUR 4.6 million of the divestment of Anora brands due to the merger.
More information on page 25.

Key figures

                                                  Q4 21  Q4 20   2021   2020

Net sales, EUR million 205.6 106.5 478.2 342.4
Comparable EBITDA, EUR million 31.4 19.0 71.7 52.4
   % of net sales 15.3 17.9 15.0 15.3
EBITDA, EUR million 31.3 13.5 62.9 40.3
Comparable operating result, EUR million 23.6 14.8 51.2 35.0
   % of net sales 11.5 13.9 10.7 10.2
Operating result, EUR million 23.5 9.3 42.4 22.9
Result for the period, EUR million 17.2 7.3 31.2 17.8
Earnings per share, EUR 0.25 0.20 0.67 0.49
Net cash flow from operating activities, EUR million 57.6 50.2 50.8 56.1
Net debt / comparable EBITDA 1.8* -0.1 1.8* -0.1
Personnel end of period 1 055 637 1 055 637

*If calculated using pro forma figures, net debt / comparable EBITDA would have
been 1.2 for 2021.

CEO Pekka Tennilä:

2021 was a historical year for us with the start of Anora’s journey as the
leading wine and spirits brand house in the Nordics, and the global industry
forerunner in sustainability. After the closing of the merger in September, we
have successfully re-structured our organisation and continued to serve our
partners and customers well. The work to capture the net synergies of EUR 8-10
million has continued as planned with several initiatives to drive efficiencies
and find new growth opportunities across our markets.

During 2021, the COVID-19 restrictions in on-trade and travelling continued to
impact our market environment in a significant way. Supported by extraordinary
high sales volumes in monopoly stores, we are reporting strong results for 2021:
net sales on a pro forma basis grew by 6% to EUR 665 million and comparable
EBITDA on a pro forma basis grew by 3% to EUR 101 million. I am extremely proud
and thankful for the great achievements that our employees have reached, and for
the true dedication and resilience they have shown during this exceptional year.

In Q4, we saw the wine and spirits market returning to normal which was
reflected also as lower monopoly volumes compared to the high volumes in Q4 last
year. Our net sales on a pro forma basis grew, supported by the gradual opening
of the restricted sales channels and the higher contract manufacturing volumes.
In this quarter, we were also faced with a historically sharp increase in input
costs, with specifically the cost of barley reaching a record-high level.
Comparable EBITDA, on a pro forma basis, declined mainly due to higher input
costs and more investments in marketing of our brands.

In sustainability, one of the topics that we have high on our priority list is
to secure a safe workplace for our employees, and we aim for zero accidents at
work. We continuously monitor and develop our processes and routines to prevent
accidents, and we actively promote a safety culture at our plants. This work has
given great results in 2021: at the Gjelleråsen plant no injuries were reported
and the Koskenkorva Distillery was granted The Year Award in Starch Europe’s
Safety Program.

For the year 2022 we expect Anora’s comparable EBITDA to be between EUR 75-85
million which corresponds to the pre-pandemic level and takes into account the
annual impact of EUR 4.6 million of the divestment of Anora brands due to the
merger. In 2022, we expect the volumes in the monopolies to be significantly
lower than in 2020 and 2021 as the lifting of COVID-19 restrictions result in
higher on-trade, border trade and duty-free sales, and input costs to remain at
a high level.

The newly formed Anora is the Nordic market leader in wine and spirits with #1
position across many categories and segments. We believe that we are uniquely
positioned to serve our customers and consumer in the Nordics, and beyond, with
our strong brands portfolio, strong route-to-market skills and pioneering
position in sustainability. We have already started to work on Anora’s strategy,
which will define our growth and equity story going forward, and will be
finalized during the summer. I am excited about the future and look forward to
continuing working closely with our partners, customers, suppliers and other
stakeholders in the year ahead.

Financial calendar

Anora will publish financial reports in 2022 as follows:

· 19 May: Interim Report for January-March 2022
· 1 September: Half-Year Report for January-June 2022
· 24 November: Interim Report for January-September 2022

The Annual Report 2021 including the financial statements, Board of Directors'
report, the Corporate Governance statement and the remuneration report will be
published in English and Finnish on Anora’s website in week 16. The Annual
Report includes also the Sustainability Report.

Annual General Meeting 2022

Anora Group Plc’s Annual General Meeting 2022 is planned to be held on 11 May
2022. The notice to and instructions for the AGM will be published on Anora’s
website.

ANORA GROUP PLC

Further information:

Pekka Tennilä, CEO

Sigmund Toth, CFO

Contacts:

Analysts and investors: Tua Stenius-Örnhjelm, Investor Relations, tel. +358 40
748 8864

Media: Petra Gräsbeck, Corporate Communications, tel. +358 40 767 0867

Results presentation:

CEO Pekka Tennilä and CFO Sigmund Toth will present the report today at 11:00 am
EET. The presentation will be held as a Microsoft Teams Meeting and we recommend
that participants join the event using the online meeting option: Join meeting
here (https://teams.microsoft.com/l/meetup
-join/19%3ameeting_MzBjOWFkZWYtMWM5Yi00MTNhLTllNWItZTY0NGQ5YzUzNjUx%40thread.v2/0
?context=%7b%22Tid%22%3a%22c32b30ff-5871-4a7d-a29e
-6f63e6b0ebfd%22%2c%22Oid%22%3a%22d962bdab-ca8e-4e3f-9cc3-2f868d5a7ef3%22%7d)

It is also possible to dial-in to the meeting about 5 minutes earlier at the
following numbers:

FI: +358 9 2310 6678

NO: +47 21 40 41 04

SE: +46 8 502 428 54

UK: +44 20 7660 8309

US: +1 917-781-4622

Conference ID: 562 150 307#

Q&A

Questions to the management can be sent through the Teams chat.

Presentation material

The presentation material will be shared in the online meeting and it can be
downloaded on the same day at:
www. (https://anora.com/en/investors)anora.com/investors (https://anora.com/en/in
vestors)

On-demand recording

A recording of the event will be available later on Anora’s website.

Distribution:

Nasdaq Helsinki Ltd

Principal media

www.anora.com

Anora is a leading wine and spirits brand house in the Nordic region and
aglobalindustry forerunner in sustainability. Our market-leading portfolio
consists of our own iconic Nordic brands and a wide range of prominent
international partner wines and spirits. We export to over 30 markets globally.
Anora Group also includes Anora Industrial and logistics company Vectura. In
2021, Anora’s pro forma net sales were EUR 665 million and the company employs
about 1,100 professionals. Anora’s shares are listed on Nasdaq Helsinki.

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