In 2020, the stock markets faced a very uncertain volatile climate marked by the COVID-19 pandemic. The world entered an economic recession, due mainly to the activity stoppage in many sectors caused by the measures implemented by governments seeking to halt the extension of the virus. In this regard, the International Monetary Fund is projecting a fall in the global GDP of -3.5% for the whole of the year.
The virus, originating in China, and which extended throughout the whole world, triggered the decline of over -30% on the main stock market indexes, coinciding with the lockdown of a significant percentage of the global population.
Subsequently, the stock markets commenced a recovery phase faced with the historical economic stimulation measures implemented by government and central banks.
Alongside this, on a global level, the search for and development of a vaccine against the virus commenced, which yielded its fruits in the last months of the year with the approval of the first vaccines. This represented a turning point in the fight against the pandemic, causing significant rises on the stock markets which, in some cases, ended the year with a positive balance.
Of note in the United States is the S&P 500 index, which closed with an appreciation of +16.3% in 2020 and, in Europe, the German DAX rose by +3.5%, as compared with the decrease of -15.5% on the Ibex 35 in Spain, of -7.1% on the French CAC and of -4.0% on the Euro Stoxx 600.
Viscofan share Year end 2020
Stock market capitalisation Year end 2020
Viscofan shares are listed on the Spanish stock markets of Madrid, Barcelona and Bilbao. In addition, the shares that have traded on the continuous market since its flotation in December 1986 belong in Spain to the Ibex 35 index and to the Madrid Stock Exchange General Index (IGBM) and form part of the Consumer Goods segment of the food subsector, to the Ibex Top Dividendo index and, at European level, to the Euro Stoxx Food & Beverage index and to the Eurostoxx 600 index.
Viscofan shares closed 2020 at €58.05, an increase of 23.2%, which rose to 28.3% once the shareholder remuneration paid in the year was included. The securities market acknowledged the strength of the earnings published throughout the year in a climate of uncertainty caused by COVID-19.
Strong earnings in a year in which Viscofan enjoyed a significant level of commercial and operating activities. Since casings are an essential food item, Viscofan’s rapid response of increasing the security measures of employees, maintaining the operating plants and ensuring supply was valued by customers, leading to a major leadership in a context of market growth. With this, the growth in sales was accompanied by improved profitability in all reported quarters with a higher level of production and use of installed capacity, together with improvements in plant efficiency
The average daily market price in the year was €55.88 and Viscofan’s market capitalisation stood at €2,699 million at the end of 2020.
*Graph on a baseline of 100 since 31 December 2019
Likewise, in the whole of the year, over 28.3 million shares in Viscofan were traded on the Spanish continuous market, with a trading volume of €1,562 million, which is equivalent to a daily average of €6.1 million.
Throughout the different strategic plans, the Viscofan Group has built a sound and flexible business model. This characteristic entails the creation of cash flows that allow investment projects to be carried out in order to improve value creation, which is shared with shareholders in cash and at the same time maintaining a sound balance sheet structure.
For example, in the period between 2016 and 2020, within the MORE TO BE Strategic Plan, Viscofan invested €384 million looking ahead in its value creation proposal, with the objective of leading the main casing markets in terms of service, technology and costs. It represents the greatest investment period in Viscofan’s history, which was combined with increased remuneration to shareholders, rising from €1.35 in 2015 to the €1.70 per share proposed in 2020, and which represents a total distribution of €374 million in the MORE TO BE period.
In this respect, the stock market continues to recognise the Viscofan Group’s value creation, and is combined with the Group’s commitment to shareholder remuneration. Thus, in the last ten years the average annual return has been 7%, and 10% taking into account shareholder remuneration. Analysing the creation of value over time, this is greater for shareholders who have held shares in Viscofan for a longer period of time. For example:
A shareholder that invested €1,000 in Viscofan shares at the end of December 2010, and held them at 31 December 2020, was worth €2,032, and in these 10 years this individual also received €490 in dividends, a combined return of 152%.
|Año de compra (31/12)||Year of sale (31/12)|
The proposed total shareholder remuneration with a charge to 2020 profit stood at €1.70 per share and exceeds, by 4.9%, the ordinary remuneration per share of €1.62 approved in the previous year. This proposal means distributing a total of €78.8 million, equivalent to the distribution of 64.3% of the Group’s net profit.
It's broken down into:
In terms of profitability, the total dividend proposed for 2020 is 3.0% of the average share price during the year
One of Viscofan’s objectives, through its Department of Investor and Shareholder Relations, is to create value for the investor community by improving accessibility, the transparency of information and providing shareholders with relevant information of a financial and non-financial nature, on its strategy and on its operations to gain a better understanding of the company.
To ensure this information flow and to grant certainty to shareholders, markets and other stakeholders on the transparency and access to information, Viscofan has a Communication policy with shareholders, institutional investors, proxy advisors on voting and economicfinancial, non-financial and corporate information, updated and approved by the Board of Directors in 2020, is defined in conformity with the good governance practices and recommendations applicable to listed companies
Viscofan provides the investment community with a multitude of communication channels: presentations at seminars and events organised by the financial community, road shows with institutional investors, whether they be promoted by the company or by brokers, earnings presentations, the General Shareholders’ Meeting, organised visits to Viscofan’s head office, telephone calls to a dedicated investor and shareholder helpline, a special e-mail address, the notifications and regular public information submitted to the CNMV, as well as the information published on the website www.viscofan.com, especially in the Investor Relations section in which Viscofan makes the latest news, reports and quarterly presentations of results, annual report, share price performance, among others.
Likewise, Viscofan maintains fluid communication with the financial markets, hence, at 2020 year-end, a total of 16 analysis companies, Spanish and international alike, covered Viscofan on a recurring basis
At the same time, Viscofan encourages direct contact with face-to-face meetings with investors, both shareholders and non-shareholders interested in the company. However, since March 2020, mobility restrictions and social distancing as a result of the COVID-19 pandemic has led meetings to be held virtually
Accordingly, in 2020, Viscofan held 214 face-to-face or video-call meetings with both shareholders and non-shareholders interested in the company, in the framework of seminars and events held by the financial community. In 2019, 223 face-to-face meetings were held
The communication effort carried out throughout all these years has been recognised by the investment community. In 2020, the newspaper The Economist awarded Viscofan its “Value Creation for the Shareholder” prize. Also, in the XIX edition of the Business Transparency Prizes, the Spanish Accounting and Business Administration Association granted Viscofan the “Most significant improvement” award for Ibex 35 companies.
Previously in 2019, “Institutional Investor” in its “All European Executive Team” awarded the prize to Viscofan for the 1st Best investor Relations Programme for Sell-Side of the Paper & Packaging sector and, in 2016, the 1st CEO for Sell-Side and 2nd Best CEO combined, and the 3rd IR for Sell-Side of the Paper & Packaging sector, in 2015, the 2nd Best IR for Sell-Side and, in 2012, the 1st Best IR professional for the Sell-Side in the packaging and food sector.
Bidirectional communication is important, since the questions and concerns of the Financial Community are taken into account and transmitted within the company, such as financial, strategy, sustainability and corporate governance matters.
In 2020, the most frequently asked questions related to the management of the COVID-19 pandemic, its risk for the business, its impact on casing demand, the savings from the new technology installed at Cáseda, the strategy and sustainability projects at Viscofan, shareholder remuneration, the influence of the vegan and vegetarian trend on the business, the impact of exchange rate variations, the acquisition of Nitta Casings, among others.
INVESTOR AND SHAREHOLDER PHONE NUMBER: +34948198436
INVESTOR RELATIONS EMAIL: email@example.com
WEBSITE, INVESTOR RELATIONS SECTION https://www.viscofan.com/investor-relations
|Strategy MORE TO BE period||Strategy Be MORE period||Strategy Be One Period|
|Share price €||2020||2019||2018||2017||2016||2015||2014||2013||2012||2011||2010||2009|
|Viscofan in the stock market evolution||Year end 2020||Year end 2019||Year end 2018||Year end 2017||Year end 2016||Year end 2015||Year end 2014||Year end 2013||Year end 2012||Year end 2011||Year end 2010||Year end 2009|
|% annual change Viscofan||23.2%||-2.1%||-12.5%||17.4%||-15.8%||26.3%||6.6%||-3.4%||49.4%||1.1%||59.7%||26.3%|
|% annual change IGBM||-15.4%||10.2%||-15.0%||7.6%||-2.2%||-7.4%||3.0%||22.7%||-3.8%||-14.6%||-19.2%||27.2%|
|% annual change IBEX 35||-15.5%||11.8%||-15.0%||7.4%||-2.0%||-7.2%||3.7%||21.4%||-4.7%||-13.1%||-17.4%||29.8%|
|% annual change Euro STOXX 600||-4.0%||23.2%||-13.2%||7.7%||-1.2%||6.8%||4.4%||17.4%||14.4%||-11.3%||8.6%||28.0%|
|% annual change IBEX Medium Caps||-9.7%||8.4%||-13.7%||4.0%||-6.6%||13.7%||-1.8%||52.0%||13.8%||-20.7%||-5.6%||13.8%|
|% annual change Sub sector Food and beverages IGBM||10.6%||1.8%||-8.4%||5.2%||-5.4%||26.4%||-5.2%||4.7%||25.0%||-6,.3%||25.3%||7.0%|
|Stock market trading dat||2020||2019||2018||2017||2016||2015||2014||2013||2012||2011||2010||2009|
|Market capitalization at year-end (millions of €)||2,699.3||2,190.2||2,242.6||2,563.7||2,183.4||2,593.0||2,053.6||1,927.1||1,995.1||1,335.7||1,321.7||827.7|
|Traded volume (million of €)||1,561.8||1,230.5||1,669.1||1,995.2||2,707.1||3,179.9||3,233.0||2,506.4||1,426.9||1,274.1||925.4||663.1|
|Daily average trading volume (million of €)||6.1||4.8||6.5||7.8||10.5||12.3||12.6||9.8||5.6||5.0||3.6||2.6|
|Daily average of traded shares||110,268||101,236||116,891||151,600||212,022||225,210||304,931||247,892||161,566||183,787||162,766||165,798|
|Share ratios||Year end 2020||Year end 2019||Year end 2018||Year end 2017||Year end 2016||Year end 2015||Year end 2014||Year end 2013||Year end 2012||Year end 2011||Year end 2010||Year end 2009|
|Acciones admitidas a cotización||46,500,000||46,500,000||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682||46,603,682|
|Beneficio por acción (1)||2.635||2,.273||2.658||2.620||2.684||2.575||2.284||2.178||2.254||2.172||1.745||1.379|
|Remuneración ordinaria propuesta por acción (2)||1.700||1.620||1.600||1.550||1.450||1.350||1.180||1.120||1.100||1.000||0.800||0.623|
(1) Net earnings per share is calculated by dividing net profit by the average weighted number of ordinary shares in circulation during the year, excluding treasury stock
(2) Includes: dividends, capital reimbursement, refund of issue premium and bonus for attending the General Meeting
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