Slide 1: 1H2018 Earnings Presentation
1H2018 Earnings Presentation August 2018
Slide 2: Disclaimer
This presentation has been prepared by Beluga Group, Co. (the “Company“, or about health related issues; “Beluga Group”) and together with its subsidiaries. By attending the meeting where the • increased competitive product and pricing pressures and unanticipated actions by presentation is made, or
Slide 3: Company's 1H2018 Financial Highlights
COMPANY’S 1H2018 FINANCIAL HIGHLIGHTS 3% total volume increase Sales grew 13% and reached 29,2 bln. Rubles Net Revenue increased by 19% to 18,8 bln. Rubles* Operating profit increased by 16% to 1,4 bln. Rubles EBITDA grew 20% to 1,9 bln. Rubles EBITDA and Operating margins remained stable 79% growth
Slide 4: Company's Highlights
COMPANY’S HIGHLIGHTS LEADERSHIP •#1 distilled spirits producer in Russia •#1 independent importer in Russia •#1 flavored spirits producer including bitters, herbal liquors, flavored liquors •# 2 brandy producer MARKET POSITION* •12% legal vodka & LVI*** market share •14% brandy market share •22% fla
Slide 5: Consolidated Revenue
CONSOLIDATED REVENUE Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) +19% Alcohol (1) Food (1) Consolidated Revenue split, % 1H2017 1H2018 Revenue increased by 19% mainly due to 3% volume growth Food Retail and Winelab’s financial results consolidation. Since 1H2018
Slide 6: Consolidated Gross Profit
CONSOLIDATED GROSS PROFIT Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) 10 000 +32% 8 016 Alcohol (1) 6 078 5 000 Food (1) 0 1H2017 1H2018 Consolidated Gross Profit split, % 1H2017 1H2018 Consolidated Gross Profit and the Alcohol segment Gross Food Retail
Slide 7: Consolidated EBITDA and Net Profit
CONSOLIDATED EBITDA AND NET PROFIT EBITDA, million RUB G&A and distribution expenses , million RUB +20% Operating profit and Net Income, million RUB G&A expenses increased in line with revenue growth. +16% 45% year-on year increase in distribution expenses due to the changes in PnL structure which w
Slide 8: Beluga Group Debt Structure
BELUGA GROUP GROUP DEBT STRUCTURE 2017 1H2018 Change, % Debt evolution, million RUR Long tem debt Short term debt Net debt Debt 11 012 14 062 +28% 14 062 Cash & cash equivalents 819 680 -17% 11 012 Net Debt 10 193 13 382 +31% 9 503 Equity & reserves 19 448 19 129 -2% (1) Total capital 30 404 33 562
Slide 9: Income Statement
INCOME STATEMENT 2015 2016 2017 1H2017 1H2018 YoY, % Net revenue 30 706 35 903 37 303 15 735 18 782 19% Cost of sales (18 033) (21 385) (23 628) (9 657) (10 766) 11% Gross profit 12 673 14 518 13 675 6 078 8 016 32% Gross margin 41,0% 40,4% 36,7% 38,6% 42,7% +4,1 pp. G&A expenses (2 582) (2 478) (2
Slide 10: Cash Flow
CASH FLOW 2015 2016 2017 1H2017 1H2018 Operating profit 2 109 2 486 2 848 1 221 1 412 Depreciation and amortisation 776 726 768 379 507 Other non-cash transactions (123) 183 200 28 13 Changes in working capital 1 332 (1 231) (1 860) (1 519) (2 292) CF from operating activities 4 094 2 164 1 956 109
Slide 11: Appendices
APPENDICES APPENDICES
Slide 12: Company's Strategy
COMPANY’S STRATEGY STRATEGY BECOME THE DOMINANT SPIRITS COMPANY IN RUSSIA WITH A DIVERSIFIED PORTFOLIO OF BRANDS, BEST IN CLASS DISTRIBUTION PLATFORM, AND PROPRIETARY RETAIL CHAIN DIVERSIFIED BRAND PORTFOLIO, COVERAGE OF ALL CONTINUED DEVELOPMENT OF THE DISTRIBUTION SEGMENTS PLATFORM WITH A FOCUS ON
Slide 13: Beluga Group Russian Market
BELUGA GROUP RUSSIA MARKET RUSSIAN SPIRITS MARKET (MAIN CATEGORIES), 2017 TOP 5 BRANDY PRODUCERS, 1H2018 100 000 82 723 000, 9L Cs. - 30 000 20 000 11 770 9 462 10 000 4 200 - Vodka Brandy & Flavoured Whisky Cognac Liqours (LVI) TOP 5 VODKA & LVI* LEGAL PRODUCERS, 1H2018 TOP 5 FLAVORED LIQUORS PRODU
Slide 14: Leading Brands, Segment Shares
LEADING BRANDS* SEGMENT’S SHARES VODKA PORTFOLIO SUPER-PREMIUM LOW-PREMIUM *Source: Nielsen 2017 STANDARD ECONOMY 14
Slide 15: Diversified Portfolio of National Brands
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS VODKA PORTFOLIO Economy Standard Sub-premium Premium Super-premium, Ultra-premium Retail Price per 0,75 L RUR RUR RUR RUR 405 RUR 525 RUR 600 RUR 1200 – RUR 5000 750 975 855 Russky Mednaya Beluga Belenkaya Lyod VEDA Belaya Sova Loshadka Trans Beluga Noble Bel
Slide 16: Beluga Group Imported Spirits Portfolio
BELUGA GROUP IMPORTED SPIRITS PORTFOLIO IMPORT. SPIRITS Scotch Whisky Irish Whisky Brandy Cognac Tequila Bourbon Gin Sambuca Bitter Rum Absinthe 16
Slide 17: Beluga Group Strategy in Imported Wine Business
BELUGA GROUP STRATEGY IN IMPORTED WINE BUSINESS IMPORT. WINE FOCUS ON LEVERAGE DEVELOPMENT INVEST IN TRADE MIDDLE&PREMIUM DISTRIBUTION BELUGA BOUTIQUE MARKETING AND PRICE SEGMENTS PLATFORM IN WINE FOR PREMIUM BRAND BUILDING DEVELOPMENT IMPORTED PRODUCTS 17
Slide 18: Contacts
CONTACTS Address: 4/1 Yakimanskaya emb., Moscow 119180 Russia Phone: +7 495 510 2695 +7 495 775 3050 Fax: +7 495 510 2697 +7 495 775 3052 E-mail: ir@belugagroup.ru www.belugagroup.ru 18
Slide 19: ers
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