Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — Investor Presentation (December 2018)
27 slides from Kri-kri Milk Industry's investor presentation, December 2018
Slide 1: Company Presentation December 2018
COMPANY PRESENTATION December 2018
Slide 2: Table of Contents
Table of Contents • KRI KRI at a glance • Strategic Choices • Facilities, CapEx, Location • Financials • Share information | December 2018| 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance Basic Figures Turnover Kri Kri 2003-2017 (€’000s) CHANGE FY 2017 9Μ 2018 79.200 Turnover € 79 m +19% 67.500 66.840 67.000 63.000 59.300 Exports € 24 m +39% 47.200 47.900 39.700 40.250 EBITDA € 13 m +35% 33.800 28.300 25.400 22.500 Total Assets € 82 m 19.500 No. of Employees 350 2
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Increase ✓ Performance during Greek crisis -25% 250 239 226 GDP(€bn) 205 190 184 185 185 185 187 34,5 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 24,1 Kri Kri Turnover & Profit before Taxes Performance (€m) +100% +183% 16,0 12,0 9,1 2014 2015 2016 201
Slide 5: KRI KRI at a glance: Our people make a difference
KRI KRI at a glance Our people... Make a Difference! • An experienced and effective Employee Satisfaction Survey 2018 management team • 96% «I feel that the Administration is capable of running the • 400 Employees company» • 43 New recruitments for 2017 • 35 New recruitments for 2018 • 95% «I feel l
Slide 6: KRI KRI at a glance: Basic Segments
KRI KRI at a glance Yogurt Greece Ice Cream Greece Basic Segments 36,1 │ 9Μ18: +11,7% 2017: 18,9 │ 9Μ18: +10,7% (Sales in € m) 2017: Yogurt Exports Ice Cream Exports 2017: 21,4 │ 9Μ18: +34,2% 2017: 2,7 │ 9Μ18: +71,8% | December 2018| Source: Company data (IFRS) 6
Slide 7: Strategic Choices / Yogurt Greece
2017: 36,1m € Strategic Choices/ Yogurt Greece 9Μ18: +11,7% Market size in retail Market share Market Share per Supplier prices per Category (%,€m) (Share >10%) KRI KRI 15,1 +1.2% yoy 7% 14,6 11% 20,7 12 Strained Leader 21,9 20 Set 7% Competitor 2 11,2 13 Fruit 180 €m Functional 15,2 15 99 55% Compe
Slide 8: Yogurt Greece: Branded products strategy
2017: 36,1m € Strategic Choices/ Yogurt Greece 9Μ18: +11,7% Branded products strategy • Yogurts with 100% Greek daily milk, • Improving quality by constantly investing our comparative advantage in new technology 8
Slide 9: Yogurt Greece: Branded products strategy, innovation
2017: 36,1m € Strategic Choices/ Yogurt Greece 9Μ18: +11,7% Branded products strategy Innovation Leader in kids yogurt category ✓ High protein and super foods (Market share 39%) Kids category in the total market ✓ Perfect snack for people who exercise 11% ✓ Responding to international nutrition tren
Slide 10: Yogurt Greece: Private label products strategy
2017: 36,1m € Strategic Choices/ Yogurt Greece 9Μ18: +11,7% Private label products strategy KRI KRI produces 70-80% of all Private Indicative Customers in Greece Total Productive Share >25% Label yogurt products in Greece Kri-Kri Branded 15% Kri-Kri Priv.Label 15,1 11% Private Label 14,2 1 in 4 Gree
Slide 11: Strategic Choices / Yogurt Exports
2017: 21,4m € Strategic Choices/ Yogurt Exports 9Μ18: +34,2% Basic European Greek/ Change of Change of Greek/ Greek markets size in Total Yogurt Greek style Total yogurt % style(strained) retail prices (strained) % United Kingdom(£m) 1.500 324 +2% +7% Italy (€m) 1.600 173 -3% -4% Germany (€m) 2.000
Slide 12: Yogurt Exports: Private label products strategy
2017: 21,4m € Strategic Choices/ Yogurt Exports 9Μ18: +34,2% Private label products strategy Opportunities • Private label products capture a big share of • Expanding PL products portfolio consumers wallet in Europe. • Placing branded products to existing customers • It offers a strategic way to ent
Slide 13: Indicative Customers Abroad
Indicative Customers Abroad UK: BELGIUM: GERMANY: ITALY: ΟΛΛΑΝΔΙΑ: | December 2018| 13
Slide 14: Strategic Choices / Ice cream Greece
2017: 18,9m € Strategic Choices/ Ice cream Greece 9Μ18: +10,7% 2nd brand in the Greek ice cream market Market size in retail prices Market Share per Brand 15,5 +0.5% yoy Leading Brand 20,4 220 €m Brand 3 12,9 Brand 4 9,6 Private Label 25,7 Volume Market trend +2.5% Source: Nielsen (Aug 2018) | Decem
Slide 15: Ice cream Greece: Branded products strategy
2017: 18,9m € Strategic Choices/ Ice cream Greece 9Μ18: +10,7% Branded products strategy ✓ The only Greek ice cream company with nationwide sales network ✓ Expand distribution network with 1.000 extra points (15.000 points of sale from 14.000 at 2017) ✓ Increased market share ✓ Maintain high profita
Slide 16: Strategic Choices / Ice cream Exports
2017: 2,7m € Strategic Choices/ Ice cream Exports 9Μ18: +71,8% Looking for opportunities for Private Global Market size $ 57 bn Label products in European Market European Market Size $ 20 bn Target Won a contract with European market Size Private label $ 10 bn ALDI-UK market Source: Statista (2017),
Slide 17: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings The amount of planned Ε=25.000m² CapEx is eligible for 35% state subsidy as income tax • Capability of further deduction. development in land Ε= 72.000 m² Planned CapEx for 2017-2018 (€m) Capacity Utilization Before After Investment Inve
Slide 18: 100% Greek daily milk
100% Greek daily milk ✓ Sufficiency in Milk supply Plain of Strymonas Central Macedonia ✓ Proximity to farms allows Sunshine and Clean Waters us to deliver products with daily fresh milk, Produces increasing their quality. Better Animal Feed 50% of raw milk High Quality milk | December 2018| 18
Slide 19: Corporate Social Responsibility
Corporate Social Responsibility Farmers Training Program Biogas • 2-year program in collaboration with the • Wastewater Management and Utilization Aristotle University of Thessaloniki • Biogas Renewable Energy Source Unit • Participation of more than 50 farmers • Theoretical and practical education
Slide 20: 9M 2018 / Financial Results
9M 2018 / Financial Results Financial Performance IFRS - €m 9Μ 2018 9Μ 2017 YoY% Sales 78.08 65.47 +19% Margins 9Μ 2018 9Μ 2017 Change Gross Profit 31.25 24.60 +27% Gross Profit 40.0% 37.6% +247bps EBITDA 17.24 12.75 +35% EBITDA 22.1% 19.5% +259bps EBIT 15.08 10.90 +38% EBIT 19.3% 16.7% +266bps Prof
Slide 21: Key Financials per year
Key Financials per year ✓ Sales per business unit (€m) Operating cash Net Debt Liquidity Gearing 79 flows (€m) (€m) 68 67 67 2017 8,0 2,3 17% 0,3 58 63 22 23 21 20 2016 8,5 2,8 17% 2,2 23 23 Ice Cream Financial 2015 7,9 1,8 21% 5,7 Yogurt Position 57 Indicators 2014 1,6 1,5 16% 6,1 45 45 47 35 40 20
Slide 22: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +109% 2012 2013 2014* 2015 2016 2017 11.2018 (as per 30/11/2018) Total stockholder return 3,9% 34,4% -8,0% 5,9% 6,2% 59,0% 48,8% 5,00 4,50 Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 3,0% 2,6% 4,00 Share price increase 0% 31,4% -8,0%
Slide 23: Investment Proposal Summary
Investment Proposal Summary Investment ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. ✓ High returns and dividend payments to shareholders. Management ✓ An experienced and loyal management team that has led KRI KRI from a local company to a major
Slide 24: KRI KRI Share Information
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 74% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Legal Entities : 16% Serres PC 62125 Ticker symbols: Individuals : 10% Greece Athens Stock Exchange
Slide 25: Appendix 1: FY 2017 Key Financial figures
KRI KRI / Αppendix 1 FY 2017 - Key Financial figures IFRS - €m 2017 2016 YoY% Sales 79,2 66,6 +19,0% Margins 2017 2016 Change Gross Profit 28,4 25,7 +10,4% Gross Profit 35,9% 38,7% -282bps EBITDA 12,4 11,0 +13,3% EBITDA 15,7% 16,5% -80bps EBIT 9,9 8,9 +11,9% EBIT 12,5% 13,3% -80bps Profit before tax
Slide 26: Appendix 2: FY 2017 Operating result per Segment
KRI KRI / Αppendix 2 FY 2017 - Operating result per Segment Calculations – Reconciliation with P&L Operating Change IFRS - €m Sales Margins Result (bps) IFRS - €m 2017 Yogurt Total 57,4 9,8 17,0% +60 Operating Result 12,0 Greece 36,1 6,1 17,0% +273 Plus / (Minus) Exports 21,4 3,6 17,0% -474 Administ
Slide 27: Legal Disclaimer
Legal Disclaimer This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information contained herein also includes forward- looking stateme
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