SIG Group AG
SIX:SIGN
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SIG Group AG
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Good
morning,
and
thank
you
for
joining
us
today.
Today's
call
is
hosted
by
Samuel
Sigrist,
CEO;
and
Frank
Herzog,
CFO.
We
had
planned
to
have
a
video
presentation
this
morning.
Unfortunately,
we
have
had
to
change
the
format
slightly
as
Samuel
is
in
quarantine.
So,
while
you
will
be
able
to
see
the
slides,
the
rest
of
the
presentation
will
be
in
audio
format.
We
will
be
taking
your
questions
verbally
after
our
presentation.
For
the
few
of
you
having
to
join
by
Vimeo,
please
submit
your
questions
in
writing.
The
slides
for
the
call
are
available
for
download
on
our
Investor
website.
This
presentation
may
contain
forward-looking
statements
involving
risks
and
uncertainties
that
may
cause
results
to
differ
materially
from
those
statements.
A
full
cautionary
statement
and
disclaimer
can
be
found
on
slide
2
of
the
presentation,
which
participants
are
encouraged
to
read
carefully.
And
with
that,
let
me
hand
you
over to
Samuel
to
begin
the
presentation.
Thank you,
Ingrid.
Good
morning,
everybody.
2021
was
a
year
in
which
SIG
once
again
proved
the
resilience
of
its
business.
We
achieved growth
in
all
regions
despite
the
continuation
of
negative
COVID-19
effects.
And
we
also
successfully
overcome
supply
chain
challenges,
which
affected
most
industries.
We
continue
to
invest
in
our
manufacturing
presence
with
the
ramping
up
of
the
new
APAC plant
and
the
start
of
construction
of
our
new
plant
in
Mexico.
We
also
saw
the
fruits
of
our
significant
investments
in
R&D
with
groundbreaking
innovation
in
both
filling
machines
and
carbon
packs
with
an
expansion
of
our
alu-free
portfolio.
We
continue
to
demonstrate
our
leadership
in
sustainability
with
notably
a
significant
reduction
in
carbon
emissions.
To
take
account
of
the
current
inflationary
environment,
we
have
initiated
price
increases
to
offset
higher
cost.
Last
and
certainly
not least,
we
identified
two
acquisition
opportunities,
which
culminated
in
the
announcements
made
earlier
this
year.
With
these
acquisitions,
we
will
further
strengthen
our
company,
cementing
our
position
as
a
solutions
provider
for
sustainable
aseptic
food
and
beverage
packaging,
and
position
ourselves
for
sustained
growth
and
best
in
class
profitability
across
an
expanded
platform.
I
will
comment on
some
of
these
topics
in
more
detail
in
a
moment.
But
let's
first
take
a
look at
the
financial
performance
in
2021,
which
illustrates
the
ongoing
momentum
and
strength
of
our
aseptic
carton
business.
We
already
pre-released
the
key
numbers
on
February
1
this
year.
We
are
pleased
to
have
exceeded
our
core
revenue
guidance
with
like-for-like
growth
at
constant
currency
of
6.6%.
This
reflects
a
stronger
than
expected
fourth
quarter,
with
robust
at-home
consumption
in
Europe
and
the
Americas
and
improving
conditions
in
Southeast
Asia.
The
strong
top
line
growth
contributed
to
an
increase
in
the
adjusted
EBITDA
margin
to
27.7%,
a
record
level.
This
was
achieved
despite
a
further
negative
impact
from
currencies,
although
less
than
in
previous
years
and
higher
freight
and
raw
material
costs.
ROCE
also
reached
a
record
level
of
31%
and
free
cash
flow
of
€258
million
was
comfortably
ahead
of
last
year.
Adjusted
net income
increased
to
€252
million,
enabling
us
to
propose
a
7%
increase
in
the
dividend to CHF
0.45
per
share.
Let
us
now
look
at
the
performance
by
region.
Our
business
in
Europe
is
predominantly
in
liter-packs
and
therefore
continued
to
benefit
from home
office
working.
In
this
context,
growth
of
2.1%
for
the
full
year
may
look
modest.
But
remember
that
the
comparison
is
with
an
exceptional
2020
which
featured
consumer
stockpiling
as
well
as
increased
at-home
consumption.
And
in
fact,
2021
continues
our
track
record
of
growth
in
Europe,
which
is
a
mature
market
where
we
have
been
gaining
share.
Thanks
to
our
innovative
product
portfolio,
which
has
allowed
us
to
expand
into
new
categories
with
new
customers
and
grow
our
share
of
wallet.
Our
most
significant
win
in
recent
years
has
been
a
contract
to
place
15
fillers
with
the
German
dairy, Hochwald.
Most
of
these
fillers
were
installed
in the
course
of
2021
and
they
will
start
to
contribute
to
growth
in
early
2022, with
the
contribution
steadily
growing
as
the
fillers
ramp
up
throughout
2022.
As
anticipated
when
we
spoke
in
October,
the
Middle
East
and
Africa
business
saw
a
strong
rebound
in
the
fourth
quarter.
This
resulted
in
positive
growth
for
the
full
year
despite
significant
COVID-19
effects
and
the
impact
on
the
liquid
dairy
business
of
a
drought
in
South
Africa
in
the
first
half of
the
year.
The
underlying
growth
drivers
remained
positive
and
we
achieved
a
number
of
new
business
wins
during
the
year,
including
the
placement
of
our
first
food
filler
in
the
region.
When
we
took full
control
of
the
Middle
East
and
Africa
business,
we
talked
about
bringing
more
innovation
tailored
specifically
to
the
needs
of
consumers
in
these
countries.
And
we
have
been quick
to
put
this
into
practice
with
the
opening
in
November
of
a
new
tech
center
in
Dubai
to
support
co-development
of
products
with
our
customers.
In
Asia Pacific,
China
saw
a
return
to
more
normal
market
conditions.
Demand
for
white
milk,
which
grew
substantially
during
the
pandemic,
remains
strong
and
is
one
of
the
key
factors
behind
our
expansion
into
the
fresh
segment with
the
acquisition
of
Evergreen
Asia.
Southeast
Asia
delivered
robust
growth,
even
though
demand
continued
to
be
affected
by
COVID-19
in
many
countries.
This
led
to
a
focus
on
affordable
products,
which
we
were
able
to
serve,
thanks
to
the
flexibility
of
our
system.
The
ramping-up
of
new
fillers
in
a
number
of
countries
also
contributed
to
growth,
a
function
of
our
ability
to
continue
installing
fillers
even
during
the
pandemic.
In
the
Americas,
we
saw
a
continuing
benefit
from
the
nine
new
fillers
we
placed in
[ph]
Campo Largo (00:06:32) in
the
course
of
2020. As
these
fillers
were
largely
in
place
by
Q4
2020,
the
benefit
tapered
off
towards
the
end
of
the
year.
But
we
still
saw
solid
Q4
growth.
At-home consumption
of
liquid
dairy
and
culinary
products
remained
strong
in
Brazil
and
Mexico.
We are
also
seizing
new
opportunities
with the
development
of
categories
such
as
high
protein
drinks
and
plant-based
dairy.
In
the
US,
foodservice
sales
recovered
with
the
reopening
of
fast
food
restaurants.
Growth
in
premium
plant-based
dairy
alternatives
and
creamers
continued,
particularly
with
emerging
brands.
Returning
now
to the
topic
of
innovation.
We
are
constantly
upgrading
and
refining
the
filling
machines
we
have
in
[ph]
fill (00:07:18). But
in
2021, we
made
a
step
change
with
our
new
generation
filling
machine.
That
is
why
we
are
so
excited
about
the
launch
of
SIG
NEO,
which
took
place
last
November.
With
a
speed
of
up
to
18,000
packs
per
hour,
SIG
NEO
is
quite
simply
the
world's
fastest
filling
machine
for
family
size
carton
packs.
It
compares
with
the
top
speed
for
these
larger
packs
on
our
current
fillers
of
12,000
packs
per
hour.
SIG
NEO has
a
carbon
footprint
per
filled
pack,
which
is
25%
lower
than
existing
machines,
reflecting
low
waste
rates
and
a
30%
reduction
in
the
consumption
of
utilities.
SIG
prides
itself
on
its
system
offering.
Alongside
SIG
NEO,
we
are
also
launching
a
new,
fully
automated
sleeved
magazine
powered
by
a
robotic
arm
and
a
new
user
interface,
which
operates
the
entire
filling
line
end
to
end.
This
also
enables
digital
connectivity
with
remote
monitoring
and
serviceability.
And
of
course, we
have not
forgotten
the
packaging.
With
SIG
NEO
comes
combivita,
a
new
family-sized
aseptic
carton
pack.
Combivita
has
been
developed
following
extensive
consumer-centric
research
and
provides
new
levels
of
convenience
and
differentiation.
It
has
a
new tethered and
resealable
closure,
which
ensures
smooth
and
easy
pouring
and
is
easy
to
transport,
thereby
reducing
secondary
packaging
and
logistics
costs.
Sustainability
underlies
our
entire
carton
[ph]
offer (00:08:54),
with
our
SIGNATURE
packaging
range
in
the
vanguard
of
innovation.
We
have
just
made
another
major
breakthrough
with
the
launch
of
SIGNATURE
EVO.
Until
now,
our
aluminium-free
solutions
have
only
been
able
– available
for
milk.
Oxygen-sensitive
products
such as
juices
with
high
vitamin
C
content
have
still
needed
an
ultra-thin
aluminium
layer
to
protect
them. With
SIGNATURE
EVO,
we
have
engineered
an
aluminium-free
solution
which
can
be
used
for
juices,
nectars
and
plant-based
milks,
as
well
as
for
dairy
milk.
It
will
be
available
in
portion
packs
and
will
facilitate
the
development
of
SIGNATURE
packaging
in
the
markets
outside
of
Europe.
These
product
innovations
are
just
one
part
of
our
sustainability
journey.
Today,
we
have
published
for
the
first
time
a
combined
annual
and
corporate
responsibility
report
where
you
can
see
a
[ph]
wide (00:09:46) range
of
metrics
against
which
we
monitor our
progress.
Prior to
acquisition
of
the
Middle
East
business,
our
Scope
2
emissions
were
already
at
zero.
In
2021,
we
succeeded
in
eliminating
Scope
2
emissions
in
the
business
and
the
entire
group
is
now
at
zero.
For
all
our
operations
globally
have
also
exceeded
the
target
of
a
60%
emissions
reduction
of
Scope 1
and
2
which
was
set for
2030.
We
have
also
made
further
progress
on
our
goal
of
reducing
the
emissions
of
our
entire
value
chain
per
liter-pack.
In
total,
these
emissions,
including
Scope
3,
have
been
reduced
by
20%
compared
with
our
2016
baseline.
We
have
achieved
this
mainly
by
working
with
our
suppliers,
developing
more
efficient
filling
machines
and
innovating
our
packaging
solutions,
amongst
other
factors.
We
have
many
endorsements
from
external
rating
agencies
for
what
we
have
achieved.
But
we
are
absolutely
not
resting
on
our
laurels.
On
the
contrary,
we
will
drive
further
progress
with
a
commitment
to
best-in-class
ESG
performance.
And
this
across
the
enlarged
business
following
the
recently
announced
acquisitions. As
evidence
of
our
determination
to
go
further,
the
weighting
of
the
sustainability
metric
in
variable
remuneration
for
management
will
increase
this
year.
I
shall return
to
elaborate
on
the
acquisition
shortly,
but
first,
let
me
hand
you
over
to
Frank
for
a
more
detailed
review
of
the financials.
Frank.
Thank
you,
Samuel
and
good
morning
everybody
also
from
my
side.
I
look
forward
to
taking
you
in
more
detail
through
the
strong
financial
performance
for
2021.
These
very
good
results
are
testimony
to
the
strength
of
our
aseptic
carton
business
and
our
solid
foundation
for
the
recently
announced
acquisitions.
As
Samuel
has
detailed,
we
saw
sales
growth
across
all
regions
in
2021
and
the
like-for-like
core
revenue
growth
at
constant
currency
of
6.6%.
This
exceeded
the
upper
end
of
our
mid-term
guidance
range
of
4%
to
6%.
In
the
second
half
of
2021,
we
benefited
from
some
initial
price
increases
in
selected
markets.
The
contribution
from
the
Middle
East
reflects
the
first
time
consolidation
of
our
former
joint
venture,
which
we
acquired
at
the
end
of
February
2021.
As
a
reminder,
when
we're
showing
the
contribution
from
the
Middle
East
on
the
following
slides,
this
reflects
the
additional
revenue
and
adjusted
EBITDA
generated
by
the
former
joint
venture
in
the
period,
offset
by
the
loss
of
third
party
revenue
and
dividends
that
SIG
received
from
the
joint
venture
in
the
comparative
period.
Going
forward,
the
sale
of
the
non-core
paper
mill
in
New
Zealand
will
only
report
total
revenue
with
no
more
reference
to
core
or
non-core
revenue.
In
2022,
the
loss
of
the
paper
mill
revenue
will
be
broadly
offset
by
the
additional
two
months
of
net
revenue
effect
from
Middle
East
business.
We
will
therefore
consider
growth
in
the
Middle
East
business
as
organic
on
a
full
year
basis.
In
2021,
we
continue
to
increase
our
EBITDA
margin
by
30
basis
points
to
now
27.7%.
We
achieved
a
record
level
of
adjusted
EBITDA
of
€571
million,
a
14.5%
increase
compared
to
2020.
The
strong
revenue
growth
was
the
key
driver
of
this
EBITDA
growth,
contributing
€47
million.
With
only
minor
headwinds
from
raw
material
costs
and
production
is
our
hedging
strategy
dampen
the
effect
of
commodity
price
inflation
and
production
efficiencies
largely
balanced
rising
energy
and
freight
costs.
While
SG&A
costs
grew
in
absolute
terms,
they
declined
as
a
percentage
of
revenue
due
to
cost
discipline
and
operating
leverage.
The
net
contribution
of
€34
million
from
the
consolidation
of
the
Middle
East
joint
venture
was
another
major
contributor
to
the
EBITDA
growth.
This
is
a
one-off
effect,
but
we will
continue
to
benefit
from
the
attractive
margins
in
this
region.
FX
effects
played
only
a
minor
role
this
year.
Q4
shows
strong
revenue
growth
of
5.1%
as
the
basis
for
our
robust
finish
of
the
year.
All
regions
contributed
to
this
excellent
performance.
Looking
at
the
Q4
adjusted
EBITDA
bridge,
top
line
growth
drove
EBITDA
improvement
and
that
more
than
compensated
raw
material
headwinds.
Improvements
in
production
more
than
offset
a
slight
headwind
in
SG&A,
again,
the
first-time
consolidation
of
the
EMEA
region
resulted
in
the
step-up
of
EBITDA
from
this
region
with
attractive
margins.
There's
been
a
lot
of
discussion,
obviously,
about
raw
material
price
inflation
in
2021.
We're
able
to
contain
much
of
this
inflation
due
to
the
type
and
mix
of
our
raw
materials,
and
our
policy
to
hedge
aluminium
and
polymers.
As
you
can
see
from
the
graph,
liquid
paperboard
or
LPB,
is
the
largest
component
of
our
raw
materials
at
20%
of
2021
revenues
close
to
the
level
for
2020.
We've
multiyear
supply
agreements
for
our
LPB
that
give
us
a
high
level
of
price
visibility.
Polymers
represent
10%
of
our
cost
base
as a
percentage
of
2021
revenues
and
aluminium
represents
6%,
of
which
the
metal
component
is
only
3%.
Again,
no
material
changes
to
the
2020
levels.
It
is
our
policy
to
hedge
the
majority
of
our
polymer
and
aluminium
needs
for
a
given
year
during
the
preceding year.
We
retain
both
risks
and opportunities
on
the
unhedged
portion
of
our
requirements
as
the
year
progresses,
depending
on
the
evolution
of
price
movements.
As
we
discussed
during
the
Q3
results
call,
we
have
initiated
price
increases
to
offset
the
impact
of
higher
costs
on
our
absolute
EBITDA
in
2022.
These
annual
price
negotiations
are
continuing
during
the
first
quarter
of
this
year.
2021
was
a
year
of
continuing
investment
in
our
business.
PP&E
CapEx
increased
and
included
investments
in
the
growth
of
our
European
factories
in
the
areas
of
digital
printing
and
tooling
for
sustainable
packaging.
We
also
made
further
investments
in
the
new
APAC
plant
and
started
work
on
the
new
plant
in
Mexico.
Gross
filler
CapEx
was
also
higher,
reflecting
strong
order
flow
from
our
customers.
Net
filler
CapEx,
however,
declined
due
to
a
substantial
increase
in
upfront
cash
received
from
our
customers.
The
level
of
upfront
cash
largely
depends
on
a
geographic
split
of
filler
placements,
with
some
regions
more
likely
to
enter
into
contracts
with
higher
upfront
payments.
Because
of
the
high
level
of
upfront
cash,
total
net
CapEx
as
a
percentage
of
revenue
of
6.9%
came
in
clearly
below
the
guided
range
of
8%
to
10%.
The
numbers
of
fillers
in
the
field
increased
in
2021
by
29
net
additions
to
now
1,295.
More
meaningful,
however,
is
the
high
number
of
gross
additions
at
76.
These
new
fillers
generally
have
much
higher
output
than
the
ones
we
retire,
which
tend
to
be
less
productive
with
lower
volumes
of
packaging
material.
We,
therefore,
saw
in
2021
a
significant
expansion
of
our
filler
base, which
will
contribute
to
sustainable
volume
growth
going
forward.
Strong
working
capital
management
was
an
important
contributor
to
cash
flow
generation.
On
a
comparable
basis,
taking
account
of
the
acquisition
of
the
Middle
East
joint
venture,
net
working
capital
as
a
percentage
of
revenues,
was
more
than
a
100 basis
points
lower
than
at
the
end
of
2020.
Operating
net
working
capital
includes
volume
rebates,
which
are
a
function
of
our
strong
revenue
growth. And
it
also
showed
meaningful
improvements.
The
good
operating
performance
drove
our
strong
cash
flow
generation.
Net
cash
from
operating
activities
was
positively
impacted
by
the
growth
in
adjusted
EBITDA,
operating
net
working
capital
inflows
and
the
non-recurrings
of
refinancing-related
payments
in
2020.
Upfront
cash
is
included
in
net
cash
from
operating
activities
and
contributed
to
free
cash
flow
generation.
The
contribution
of
the
Middle
East
business
more
than
offset
the
loss
of
dividends
from
the
joint
venture.
As
a
result,
free
cash
flow
was
up
by
€25
million
and
cash
conversion
increased
from
71%
to
75%.
This
strong
cash
flow
generation
will
support
our
planned
acquisitions
and
underpins
our
confidence
in
the
continued
leverage
reduction.
We
have
a
strong
track
record
of
deleveraging
since
the
IPO
with
an
average
reduction
of
approximately
[ph]
a
quarter
turn (00:19:13)
per
annum.
In
2021,
net
leverage
declined
to
2.5
times
despite
the
acquisition
of
the
joint
venture
in
the
Middle
East,
which
had
a
net
debt
impact
of
about
€200
million. And
despite
an
increase
in
lease
liabilities
largely
related
to
the
new
Chinese sleeve
plant
and
the
consolidation
of
the
former
Middle
East
joint
venture.
Our
post-tax
return
on
capital
employed
reached
a
record
level
of
31%
in
2021.
This
is
at
our
customary
referenced
tax
rate
of
30%
to
enable
better
comparison.
At
the
actual
adjusted
effective
tax
rate
of
23.3%,
ROCE
reached
34%.
This
strong
performance
reflected
growth
in
EBITDA
and
the
contribution
of
EMEA
business.
The
high
level
of
ROCE
is
due
to
the
strong
underlying
returns
of
our
business,
especially
driven
by
the
attractive
profitability
of
our
long-term
customer
contracts.
In
conclusion,
we
delivered
a
very
strong
performance
in
2021
with
top
line
growth
of
6.6%,
a
further
EBITDA
margin
increase
of
30 basis
points
to
now
27.7%
as
well
as
strong
cash
generation.
This
is
a
solid
foundation
for our
recently
announced
transaction,
and
Samuel
will
now
provide
you
a
summary
of
the
compelling
rationale
for
the
Evergreen
Asia
and
Scholle
IPN
acquisitions.
Thank
you,
Frank.
Let me
start
with
Evergreen
Asia,
which
is
an
opportunity
in
line
with
our
strategy
for
category
expansion and
enables
us
to
tap
into
a
new
pocket
of
growth
in
Asia
Pacific.
As
already
alluded
to,
demand
for
white
milk
in
China
is
growing
fast
driven
by
awareness
of
its
health
benefits.
Aseptic
remains
the
preferred
form
in
many
parts
of
the
country,
but
there
are
pockets
of
growth
for
fresh
milk
in
urban
areas.
We
see
significant
cross-selling
opportunities
and
we
will
be
able
to
strengthen
our
relationship
with
existing
customers
while
gaining
new
access
to
regional
and
city
dairies.
In
addition
to
the
top line
growth,
we
expect
to
realize
cost
synergies
in
the
amount
of
around
€6
million.
SIG
opened
its first
factory
in
China
in
2004, and
we
have
a
longstanding
focus
on
the
liquid
dairy
market.
We
are
well
able
to
leverage
our
marketing
and
technical
expertise
into
fresh
and
extend
the
shelf
life
products,
as
well
as
bringing
important
innovation
to
this
segment.
Evergreen
Asia
reported
revenue
of
€135
million
in
2021,
which
is
5%
of
the
combined
group.
The acquisition
of
Scholle IPN
will
broaden
our
leadership
in
sustainable
packaging
systems
and
solutions.
This
business,
comprising
bag-in-box
and
spouted
pouch
solutions,
has
many
similarities
with
our
own
that
make
us
very
confident
in
a
successful
integration.
Like
I
said
to
you
today,
Scholle
IPN
serves
resilient
food
and
beverage
end
markets.
It
enjoys
high
barriers
to
entry
arising
from
its
use
of
aseptic
technology
and
its
knowhow
and
IP
in
barrier
films
and
fitments.
Its
solutions
are
deeply
embedded
with
customers'
value
chain,
contributing
to
the
development
of
longstanding
customer
relationships
that
generate
recurring
revenues.
And
Scholle
IPN's
focus
on
sustainability
set
the
scene
for
the
enlarged
group
to
offer
the
most
sustainable
packaging
solutions
across
a
wide
range
of
categories
and
product
sizes.
Our
businesses
are
also
highly
complementarity. SIG
today
is
present
largely
in
the
retail
sector
whereas
Scholle
IPN
also
has
a
strong
institutional
and
industrial
presence.
Whilst
our
largest
carton
size
is
2
liters,
bag-in-box
caters
for volumes
ranging
from
above
2
liters
to
well
over 1,000
liters.
Pouches,
on
the
other
hand,
are
ideally
suited
for
very
small
sizes
of 100
milliliters
or
less,
particularly
when
filling
[indiscernible]
(00:23:27) products.
Geographically,
Scholle
IPN
will
significantly
increase
our
US
revenues,
while
we
will
use
our
established
platform
to
expand
their
business
into
emerging
markets.
We
will
also
be
able
to
expand
their
use
of
aseptic
technology
particularly
in
pouches.
And
think
back
to
the
first
part
of
the
presentation
when
I
talked
about
the SIGNATURE
EVO,
Scholle
IPN's
barrier
film
expertise
can
accelerate
our
alu-free
journey
through
the
development
of
new
alternative
structures.
The
strong
strategic
fit
of
Scholle
IPN
with
SIG is
not
only
the
source
of
additional
growth
and
revenue
synergies.
It
is
also
the
basis
for
significant
cost
synergies
in
the
amount
of
€17
million.
Scholle
IPN
reported
revenue
of
€474
million
in
2021, which
is
18%
of
the
combined
group.
Together,
Evergreen
Asia
and
Scholle
IPN
represent
just
over
20%
of
the
group's
revenue.
SIG
aseptic cartons
will
continue
to
drive
the
group's
performance
from
a
financial
perspective
and
in
terms
of
using
our
established
platforms
to
drive
growth
at
both
acquisitions.
And
now
Frank
will
walk
you
through
the
financing
of
these
acquisitions
and
the
timeline
for
refinancing.
Thank
you,
Samuel.
As
previously
discussed,
we've
arranged
committed
bridge
facilities
to
fund
the
transactions
when
they're
expected
to
close
in
the
second
or
third
quarter.
We'll
then
have
the
flexibility
of
up
to
18-month
to
arrange
long-term
financing
whenever
market
conditions
are
suitable
to
execute
the
planned
capital
increase
of €200
million
to
€250 million
and
to
place
long-term
debt.
We
currently
have
authorized
capital
with
our
subscription
rights
equivalent
to
10%
of
our
share
capital.
This
corresponds
to
the
34
million
shares
that
will
be
transferred
to
the
owner
of
Scholle
IPN
as
part
of
the
consideration
for
this
acquisition.
At
the
AGM
on
April
7,
we'll
propose
a
replenishment
of
the
authorized
capital
without
subscription
rights
in
order
to
accommodate
the
planned
capital
increase,
which
will
take
place
in
the
form
of
an
accelerated
book
building
as
a
standard
practice
in
the
Swiss
market.
This
capital
increase
will
ensure
that
our
pro
forma
net
leverage
at
year-end
2021
following
the
transaction
does
not
exceed
[ph]
3.25
(00:25:54)
times.
Finally,
we're
pleased
to
see
that
both
S&P
and
Moody's
have
confirmed
their
respective
ratings
at
BBB minus
and
Ba1,
both
maintaining
the
stable
outlook.
This
is
a
further
endorsement
of
the
acquisitions
and
the
strength
of
the
combined
business.
Now,
moving
on
to
the
last
part
of
the
presentation.
I'll
turn
now
to
the
guidance
for
2022.
For
this
purpose,
we're
assuming
the
consolidation
of
Scholle
IPN
and
Evergreen
Asia
businesses
with
effect
of
July
1,
2022.
This
timing
could
vary
depending
on
the
fulfillment
of
the
closing
conditions.
For
the
full
year,
we
expect
revenue
growth
of
22%
to
24%
at
constant
currency,
with
growth
of
approximately
15%
due
to
the
acquisitions.
This
implies
organic
revenue
growth
for
the
standalone
aseptic
carton
business
of
7%
to
9%
at
constant
currency,
taking
account
of
continuing
volume
growth
supplemented
by
price
increases
to
offset
the
impact
of
higher
raw
material
costs.
For
the
enlarged
group,
the
adjusted
EBITDA
margin
is
expected
to
be
around
26%.
The
aseptic
carton
business
is
expected
to
deliver
an
adjusted
EBITDA
margin
at
the
lower
end
of
our
past
performance
range
of
27%
to
28%.
Considering
that
passing
absolute
cost
increases
has
a
dilutive
effect
on
margin.
In
light
of
the
current
volatile
inflationary
environment
and
the
recent
geopolitical
developments,
our
revenue
and
margin
guidance
assumes
no
major
changes
in
input
costs
our
FX
rates
from
current
levels.
Net
capital
expenditure
is
forecast
to
be
within
the
range
of
7%
to
9%
of
revenue,
reflecting
the
lower
CapEx
intensity
of
the
acquired
businesses.
We
expect
the
dividend
payout
ratio
to
be
within
or
slightly
above
a
range
of
50%
to
60%
of
adjusted
net
income
as
we
plan
to
continue
our
established
dividend
policy
of
progressive
dividend
per
share
growth
also
after
the
recent
acquisitions.
Samuel
will
now
take
you
through
the
mid-term
guidance
and
to
conclude
our
presentation.
We
are
maintaining
our
mid-term
revenue
guidance
of
4%
to
6%
at
constant
currency, with
the
two
acquisitions
expected
to
enable
resilient
growth
in
the
upper
half
of
this
range
across
an
expanded
platform.
Both
Evergreen
Asia
and
Scholle
IPN
offer
substantial
cost
synergies,
which
together
with
the
top
line
growth
and
continued
margin
expansion
in
the
aseptic
carton
business,
we
expect
to
deliver
a
best-in-class
EBITDA
margin
of
above
27%.
Starting
from
this
year
and
continuing
mid-term,
our
CapEx
guidance
is
down
a
percentage
point
at
7%
to
9%
of
revenue,
reflecting
lower
CapEx
needs
of
the
acquired
businesses.
We
are
maintaining
our
dividend
payout
ratio
of
50%
to
60%
to
continue
the
progressive
dividend
per
share
growth.
Our
mid-term
leverage
target
of
towards
2
times
is
also
maintained
with
a
milestone
of
2.5
times
by
the
end
of
2024,
supported
by
the
strongly
cash
generative
nature
of
the
combined
business.
The
Scholle
IPN
and
Evergreen
Asia
acquisitions
increased
our
presence
in
resilient
end
markets
and
add
further
long-term
customer
relationships
supported
by
a
large
installed
base.
We
will
extend
the
reach
of
our
aseptic carton
technology
across
substrates
and
formats.
Expansion
into new
categories
has
been
a
hallmark
of
SIG's
development
to-date.
Now,
we
have
much
broader
scope
for
expansion,
including
entry
into
the
institutional
and
industrial
segment,
and
new
retail
opportunities
in
wine
and
water.
Equally, SIG
owes
its
record
of
the
vast
market
growth
to
the
decision
taken
more
than
10 years
ago
to
expand
the
business
outside
Europe.
Now,
we
have
the
opportunity
to
do
that
again
by
bringing
the
Scholle
IPN
portfolio
to
the
emerging
markets
of
Asia
Pacific,
Latin
America,
and
the
Middle
East
and
Africa.
We
will
do
this
with
the
benefit
of
many
years'
experience
and
a
strongly
established
local
presence.
We
are
committed
to
achieving
the
highest
ESG
standards
across
the
group,
and
we'll
use
our
larger
presence
to
drive
progress
in
areas
such
as
recycling.
Sustainability
will
govern
the
development
of
new
technologies,
which
will
be
able
to
deploy
– which
we
will
be
able
to
deploy
globally,
and this
is
across
substrates
and
across
categories,
building
on
our
barrier
film
capabilities
and
leadership
in
aluminium-free
solutions.
We
will
continue
to
deliver
best-in-class
financial
performance
with
resilient
growth,
expanding
margins,
and
strong
cash
flows.
These
acquisitions
strengthened
SIG
as
a
company,
cementing
our
position
in
aseptic
packaging
solutions
for
liquid,
food
and
beverage,
bringing
benefits
to
consumers,
customers
and
shareholders,
as
well
as
the
environment.
That
concludes
our
presentation.
We
are
now
happy
to
take
your
questions.
We
will
now
take
a
question
from
UBS.
Yeah.
Hello, Samuel,
Frank,
and
Ingrid.
Thanks
for
taking
my
questions and
just
two
technical
questions, please.
The
first
one
is,
I
mean, can
you
clarify
of
Evergreen and
Scholle if
you
expect
that their
total
EBITDA
is
growing
in 2022
versus 2021,
considering
the
inflationary
environment?
And
if
they
also
have
as seasonality
on
EBITDA,
like
SIG
has
first half
or
the
second
half.
And
the second
question
please
on
your
organic
business.
Can
you
give
us
an
update
where
you
stand
on
the
price negotiations
and
has all
done
now,
and
you
can
or
have
passed
on
the
inflationary costs
already or
is there
still negotiations
ongoing,
which
will
result in
a
quite
[ph]
severe (00:32:41)
back-end
loaded
here on
EBITDA
margins
for
SIG
standalone.
Thanks
a
lot.
Thanks
for
your
question, Joern.
Maybe
I
start
with
the
second
one
and
then, Frank,
you
can
cover
the
first one.
Price
increases
and price
drops as
you're
familiar with,
normally
takes
place
in
the first
quarter. They
are
well
underway
and
we
are
right
now
executing
those price
increases. It
might
be
that
one
of
the
other
drags
into
Q2,
but
so far
I
think
we
see
progress
in
line
with
our
expectations.
I think from
a
margin
seasonality
perspective,
I
think
what
you can
expect
this
year,
in
general,
from
a
seasonality
perspective,
it's
going
to
be
a year
more
in
line
with
the
seasonality.
You're
familiar
with
pre-COVID where
we
are
more
back-end
loaded.
So,
it
is
just
also
a
function
of
how
revenues
are
generated.
And
maybe on
to
first
question,
Frank?
Thank
you.
On
the
first
question
for
the
EBITDA
of
both
Scholle
and
Evergreen
Asia.
We
do
expect
growth
of
these
businesses
and
that
will
also
then
translate
into
growing
EBITDA.
We
also
talked
about
some
of
the
synergies
where
there
maybe
earlier
wins
in
the
second
half
of
the
year,
starting
already
a
little
bit.
So,
there's
[ph]
benefit
plus (00:33:58)
they
don't
have
a
particularly
pronounced
seasonality.
So,
I
think
for
that
half
year,
when
you're
trying
to
incorporate
that
into
your
forecast,
it's
probably
good
to
just
assume,
yeah,
straight
12
months
without
big
seasonality.
Okay.
Thanks
very
much.
And
just
one
follow-up.
The
total
EBITDA
contribution
from
Scholle
and
Evergreen,
we're
speaking
around
€60
million
[ph]
than (00:34:27)
you
are
putting
in
your
guidance?
Now,
you're
obviously
going
to
a
very
specific
number.
And
I
think
it's
probably
an
order
of
magnitude
that
wouldn't
be
mathematically
correct.
But
I
don't
want
to specifically
communicate
on
the
particular
number.
Yeah.
Sure.
Thanks
a
lot.
Thanks,
Joern.
Our
next
question
comes
from
Alessandro
at
Octavian.
We
can't hear
you,
Alessandro.
Can
you
hear me
now?
Now
we
can hear
you.
Good
morning.
Sorry.
Good
morning.
Thank
you
for
taking
my
questions.
I
have
four,
if
I'm
not
exaggerating,
please.
But
they
are
quite
quick
and
I
would
like
to
go
one
by
one,
makes
it
may
be
easier.
Two
related
to
the
past
year,
the
margin
in
Americas
was
down
in
H2.
Can
you give
a
bit
of
an
indication
what
happened
there?
Why?
Okay. Yeah,
I
think
I
mean,
you
saw
obviously
the
very
strong
growth
in
the
first
half
of the
year.
So,
I
think
that
has
an
impact
on
this.
But
overall,
we're
very
pleased
with
the
margin
development
in
the
Americas
business
and
you've
seen
the
year-on-year
important
step-up.
And
I
think
that's
really
what
we're
looking
at
that
that
this
business
is
growing
fast,
but
also
increasing
its
margin
quite
well.
Yes.
But
it
was
really
down.
Sorry,
to
contradict
at
least
over
H1
2021.
Yeah.
Again,
I
think
we're
very
pleased
with
the
development
there.
And
you
saw
the
strong
growth
in
the
regions.
So,
that's
where
this
is
a
region
where
we
have
had the
benefits
from
the
filler
placements
that
ramped
up
during
the
course
of
last
year.
So,
this
is
benefits
that
we
see
really
in
this
region
and
we're
very
pleased
with
it.
I
cannot
say
I'm
satisfied,
but
I'll
leave
it there.
Yeah.
But
I think,
Alessandro, I
would
also
read
too
much
into
the
half
year
marks,
and
I
think
it's important
for
us
[ph]
as well
as (00:37:03)
we've
talked about
that
when
we
presented
2020 numbers
that
we
believe
that
we
can
get
margins
in
the
Americas
region
further after
the
hit
that
we
took
there
as
a
function
of
the
currencies.
And
I
think that's
what
we
clearly demonstrated
last
year.
And
also,
I
think
we're confident
to
continue
that path.
And
back
then
we
already
talked
about
what
are
the
levers
that
we see,
I
mean,
that
the
margin
improvement
is
definitely
a
function
of
operating
leverage
in
the
business.
But
also,
I
think,
Frank,
a
year
ago,
you
explained
that
we
have levers
to further
localize
supply,
which
we
now
see
also
the
benefits
coming
through,
and
that
explains
the
margin
improvement
also
in
the
Americas
region.
Okay,
okay.
Let's
leave
it
there.
On
the
Middle
East,
maybe
two
questions
here.
One,
the
quarterly
development,
the
Q3
was
down
almost
20%
if
I
have
calculated
properly,
and
now
Q4
was
up
20%.
Again
there,
can
you
give
a
bit
of
an
indication
what
happened
in
that
region?
Sure.
I mean
and
we
talked
about
that,
I
believe,
on
the
Q3
call also.
So,
what
we
do
see
in
the
Middle
East,
and
I
think
you
recall
that
from
earlier
reporting
periods,
there
are
some
customers
that
have
a
bit
of
a
– for
the
lack
of
a
better
word,
lumpy,
on
their
behavior.
They
placed
whenever
they have
cash
and
whenever
central
banks
allowed
them
to
tap
into
hard
currencies
and
to
pay
in
hard
currencies
to
place
significant
orders.
And
that
can
lead
to
distortion
from
one
quarter
to the
other.
But
I
think
the
underlying
market
environment
in
the
Middle East
last
year
was
difficult.
I
mean,
COVID
did
leave
its
mark
on
our
top
line
as
a
function
of,
for
example,
schools
in
the
Arabian
Peninsula,
in
North
Africa
far
beyond
the
summer
break
remaining
closed,
and
obviously
the
schools
generate
for
us
this
juice
box
business
and
that
simply didn't
take
place.
And
then,
on
the
other
hand,
there
was
this
drought
in
South
Africa,
especially
in
the
first
and
into
the
third
quarter
where
we
just
saw
that
raw
milk
production
came
down
and
there
was
less
milk
to
pack
for
us.
[ph]
We
have
already alluded
into (00:29:17)
Q3
call
positive on
the
outlook
for
the
Middle
East,
and
obviously we
remain
positive
in
the
outlook
also
into
medium-term
as
it
is
a
very
attractive
region.
And
so
we
said
we
expect
in
the
fourth
quarter to
be
back
on
a
growth
trajectory.
But
I
mean
we
probably
have
to
admit
that
the
Middle
Eastern
growth
if
you
look
quarter-by-quarter
and
we
tend
to
look
rather
it
on an
annual
base,
but
if
you
quarter-by-quarter,
it
might
come
a
little bit more
fluctuation.
But
frankly,
it
also
comes
with
a
very
decent
margin.
Okay. Thanks.
That's
helpful.
Can
you
maybe
indicate
if
how
the
start
was
in
the
year
or
if
we
are
going
more
towards
a
normal
business
with
probably
more
volatility,
but
more
normalized?
I
definitely
expect
now
a
continuation
of
the
normalization
in
the
Middle
East Eastern
business
as
obviously
COVID
restrictions
have
lifted
and
we
expect
a
continuing
improvement.
All
right.
Okay,
thank
you.
Then
I
would
like
to
move
towards
the
outlook.
Can
you
give
an
indication
about
the
magnitude
of
the
price
increases?
Yeah.
If
you
look
to the
7%
to
9%,
I
mean,
very
ballpark,
you
can
think
of
maybe
3%
to
4%
being
related
to
pricing.
You
know,
and
you
know
us
well
since
the
IPO.
We
never
have
been
very
outspoken
about
splitting
revenue
growth
into
price
mix
volume,
as
normally
volume
is
clearly
the
driver
for
our
top line
growth.
But
we
do
understand
that
we
operate,
obviously,
in
an
unprecedented
environment
when
it
comes
to
input
cost
changes.
So,
we
want
to
give
a
bit
more color
there.
So,
ballpark
I
would
say
3%
to
4%.
All
right.
Great.
And
did
I
understand
correctly,
Frank
when
you
mentioned
that
the
price
increases
have
a
dilutive
effect
on
the
margin,
that
basically
the
combibloc
margin
is
probably
drizzling
a
little
bit
down
than
in
2022?
Yeah.
I
think
there is
just
a
mathematical
effect
if
we're –
we're
raising
prices
in
order
to
offset
the
increase
in
raw
material
cost
and the
cost of
inflation
on
the
input
side.
And
so
mathematically,
you
will
have
a
margin
dilution
from
that.
Right,
but
that
would
be
all
if,
let's
say
for
my
modeling
purposes.
That
– I mean,
we've
given
our
margin
guidance,
and
that's
where
we
see
we
get
to
the
margin
that
we
said
at
the
lower
end
of
the
range
of
27%
to
28%.
So
I
don't
know
how
your
model
works,
but
I
think
that's
an
important
effect
if
you
think
about
margin
for
next
year.
Right.
And
my
very
last
question
on
the
15%
outlook
from
M&A.
To
understand
you
properly,
this
excludes
the
two
months
from
the
Middle
East
joint
venture?
That's
right,
yeah.
We
take
that
as
organic.
We
just
looked
at
this.
And
if
you
think
about
it
for
the
full
year,
we
have
the
core
and
non-core
distinction
with
the
Whakatane
paper
mill
where
we
don't
have
that
distinction
anymore.
So
there's
some
revenues
in
the
first
half
of
the
year
last
year
that
we
don't
have
this
year.
And
then
there
obviously
the
net
effect
of
– on
revenue
from
the
Middle
East
joint
venture
in
the
first
two
months
of
this
year
and
for
the
full
year
that
roughly
balances
out.
Understood.
I
give
it
back.
Thank
you.
Thank
you,
Alessandro.
Our
next
question
comes
from
George
Borrows
at
BNP.
Good
morning,
everyone.
Thank
you
for
taking
my
question.
My
first
is
on
the
filling
line.
So,
you
called
out
several
new
filling
line
installations,
including
the hot
cold
dairy
contracts
for
2022. Can
you
just
remind
us
what
your
typical
guidance
is
for,
say,
revenue
contribution
per
filling
line
once
fully
ramped,
and
how
the
ramp-up
curves
start to
look
in
terms
of
months,
please?
Yeah.
You're
absolutely
right.
We
talked
about
deployments
of
new
fillers
across
all
geographies, and
we
also
continue
to
look
at
filler
pipelines,
i.e.
opportunities
to
win
fillers
for
future
placements
that
are very
solid.
Now,
we
don't
tend
to
guide
in
a
relation
from
one
filler
place
this year
leads
to
revenue
of
X
next
year.
And
we
do
not
do
this
because
it's
also
not
how
we
budget
ourselves.
We
look
at
our
installed
base
and
budget
bottom
up.
And
if
you
think
about
a
filler
place
this
year
that
can
go
through
different
ramp-up
curves,
it
can
go
up
to
18, 24
months
until
the
filler
is
fully
ramped
up.
And
it's
really
a
function
of
is
it
the
growth
expansion
of
the
customer?
How
fast
is
the
customer
growing
the
new
product
where
it's
depending
on
market
excess
– success?
And
that's why
we don't
look
at
that
and
don't
guide
specifically
for
a
number
of
fillers
this
year
leads
to
growth
of
X
next
year.
But
to
give
you
a
bit
more
color
around
the
Hochwald fillers,
these
15
fillers,
they
are
now –
right
now
under
installation.
The
majority
by
far
is
now
already
in
this
new
greenfield
site,
and
they're
going
to
go
through
a
ramp-up,
and
we
expect
the
major
contribution
to
the
European
top
line
to
happen
in
the
second
and
the
third
quarter.
Okay.
Thanks
very
much.
That's
useful
color.
And
in
terms
of
the
76
new
filling
lines
that
were
installed
in
2021,
can
you
give
any
detail
in
terms
of
any
of
those
that were
potentially
related
to
plastic
replacement
contracts?
I
know
you've
given
some
examples
previously
of
the
contract
[ph]
you're
delaying (00:45:07)
in
France,
for
example.
Is
there
– are
there
any
particular
filling
line
installations
that
are
related
to
plastic
replacement?
Well, yes,
they
are.
We
haven't
quantified
them.
And
I
think
from
today's
perspective,
it's
still
a
very
small
number
out
of
this
total.
But
it's
a
trend
that
continues
to
take
place.
And
I
think
we
were
on
the
last
[ph]
quarter
(00:45:31) calls
where
we're
very
outspoken
about
the
new
win
in
Japan
where
for
the
first
time,
a
co-packer
that
used
to
be
in
plastic-only
opted
for
a
carton
line.
So
it definitely
is
taking
place.
But
it's
a
fraction
of
the
total
numbers
of
filler
[ph]
that
we
replace (00:45:46)
in
a
given
year
at
this
stage,
but
it's
a
trend
that
continues.
Great. Thanks
very
much.
That's
all
my
questions.
Thanks,
George.
Our
next
question
is
from
Christian
Arnold
at
Stifel.
Yes,
good
morning.
Can
you
hear
me?
Very
well.
Good
morning.
Good
morning.
Two
question
left.
First,
maybe
on
to
Frank, and
did
I
understand
you
correctly
that
when
you
gave
the
financial
guidance
outlook
for 2022
in
terms
of
dividend
payout
ratio, you
were
saying,
yeah,
50%
to
60%
or
slightly
above?
Yes,
let
me
take
that
first
question.
Yes,
that's
what
I
said.
Because
it's
also
important
for
us
that
we
continue
the
growth
of
our
dividend
per
share
at
the
absolute
dividend
per
share
that
we're
paying.
And
so,
depending
on
really
the
outturn,
it
could
be
slightly
above
the
60%.
And
what
I
want
to indicate
with
that
is
if
it
were
to
take
an
increase
above
the
60%
level
to
maintain
an
increase
in
the
dividend
per
share,
that
wouldn't
be
precluded.
Okay.
Very
clear.
Thank
you.
And
then
on,
yeah –
on
the
Ukraine-Russia
crisis,
I
think
your
exposure
here
[ph]
says
(00:47:11) exposure
of
some
1%
to
2%.
What
do
you
expect
from
the
crisis?
I
mean, how
much
does
it
impact
you
and
as
your
customers
maybe
don't
have
now
hard
currencies
available
anymore.
I
mean,
is
your
business
paying
[ph]
to
a
stop (00:47:28)
in
these
regions
or
are
you
thinking
that it
will
be.
And
have
you
considered
this
somehow
in
your
2022
guidance?
Thank
you.
Thanks
for
the
question.
Obviously,
we
are
saddened
as
I
guess
everybody
about
this
development.
I
think
with regards
to
the
implications
on
our
business,
I
think
we
can
say
they
are
very
moderate
as
you
rightly
say.
The
business
– the
combined
business
in
Russia
and
Ukraine
is
below
2%
and
they're
really –
Ukraine
is
the
minuscule
part
of
that.
We
have
a
handful
of
fillers
into
Ukraine
about
those five
fillers.
Most
of
them
were
used
fillers
that
we
deployed
there.
And
in
Russia,
we
mainly
work
with
the
big
global
brands
like
Pepsi,
Coke,
Danone.
And
we
are
right
now
assessing
with
our
customers
the
continuation
of
the
business
going
forward.
Obviously,
we
operate
as
you're
well
aware
in
the
packaging
for
the
food
and
beverage
products,
very
basic
products.
And
we
try
to
support
the
customers
in
the
market
as
long
as
we
can.
But
from
this
perspective,
it's
difficult
to
assess.
But
I
think
from an
overall
materiality,
we
don't
expect
material
impact
on
our
2021 – 2022
numbers.
And
we
have
kind
of
considered
that
also
in
our
guidance
range
as
a
function
of
the
smaller
business
that
we
have
there.
You
might
recall
we
discussed
that
a
lot
during
IPO.
We
have
partially
withdrawn
from
our
Russia
business
back
in
2014 when first
import
duties
were
put
in
place.
So,
that's
why
since
the
years,
Russia
doesn't
play
a
very
relevant
role
in
our
business.
Okay.
And
the
remaining
Russian
business
is
mainly,
yeah,
linked
to
these
global
customers
as
you
said.
That's
correct.
Yes.
That's
correct.
Thank
you
very
much.
Thank
you.
We
now
have
a
question
from
Bank
of
America
via
Vimeo,
which I
will
read
out.
There
are
two
parts
of
the
question.
The
first
part
it
looks like
the
underlying
margin
of
the
core
business
was
more
around
26.2%
when
you
take
out
the
JV
effect
on
slide 16.
If
this
is
the
case,
where
do
you
see
high
input
costs
and
how
are
you
trying
to
mitigate
them
in
full year
2022?
The
second
part
of
this
question,
do
you
see
an
increased
risk
on the
energy
side
from
the
current
situation?
Frank,
do
you
want to
take
the
first
one?
Yeah.
Let
me
take
the
first
one.
I
think
the
way
we
look
at
the
margin
is
really
what
the
business
has
delivered,
and
that
was
the
actual
performance
of
the
Mid East
joint
venture
and –
or
former
Mid East
joint
venture,
now
the
EMEA
region. There's
obviously
the
puts
and
takes
when
you
have
the
adjustments
here,
but
you
could
also
obviously
see
the
very
attractive
margin
of
the
region
there
with
31%.
So,
for
us,
the
27.7%
is
really
the
underlying
and
profitability
of
the
business
as
it
currently
stands.
And
on
the
second
one,
the
energy
cost,
I
mean,
if
you
look
to
overall
energy
cost
in
our
business,
it's
around
1%.
So,
we
don't
expect
here
a
significant
impact
on
our
business.
Thank
you.
The
second
part
of
the
question,
would
it
be
possible
for
you
to
provide
more
details
on
the
historic
margins
of
the
acquired
businesses? It
looks
like
that
it is
not
necessarily
including
any
operating
leverage
at
this
stage,
do
you
see
scope
for
improvement?
I
mean, we
discussed
this
question
already
earlier,
right?
And
we
were
very
clear
that
we
buy
a business
from
a
private
owner
who
hasn't disclosed
the
financials
mainly
for
commercial
reasons
because
we
didn't
want to
have
customers
selling
all
this
transparency.
Going
forward, we're
going
to
report
the
acquired
business
as
part
of
our
regional
segment.
So
also
there
one
is
not
going
to
Scholle IPN
or
even
Evergreen
Asia
dedicated
numbers.
And
against
this
backdrop,
there
will
not
be
further
disclosure
of
historic
data.
But
we
talked
about
also,
for
example,
historic
growth
rate,
especially
in
the
Scholle IPN
case.
And
we
gave
some
additional
color
by
describing
the
business'
footprint
today.
They're
predominantly
in
Europe
and
in
the
Americas
or
North
America,
where
you
can
think
of
fair
market
growth
rate
of
rather
2%
to
3%.
Whereas
the
emerging
markets
grow
with
5%
to
6%.
So
in other
words,
given
their
footprint,
it's
a
business
that
rather
attract
these
mature
market
growth
rates.
And
we
obviously
have
the
ambition
to
bring
them
to
our
emerging
markets
platform
and
clearly
accelerate
the
growth
in
this
acquired
business
and
for
the
combined
group.
We
definitely
see
margin
expansion
potential
and
we
have
quantified
cost
synergies
of
€6
million
in
the case
of
Evergreen
and
€17 million
in
the
case
of
Scholle
IPN.
And
we
believe
this
together
with
a
continued
margin
expansion
in
our
core
business,
we
will
be
able
to
deliver
a
margin
of
above
27%.
Thank
you.
There
are no
further
questions
at
this
stage.
In
this
case,
I
would
like
to
thank
you
for
participating
in
today's
call. Have
a
very
good
day
and
we
hope
to
catch
up
soon
maybe
also
on
the
road
show
that
follows
the
results
call.
Thank
you
very
much
for your
time
today.
Have
a
good
day,
everybody.