Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — Non-Deal Roadshow (September 2017)
24 slides from Kri-kri Milk Industry's roadshow presentation, September 2017
Slide 1: KRI KRI Milk Industry September 2017
KRI KRI Milk Industry September 2017
Slide 2: Table of Contents
Table of Contents 1 KRI KRI at a glance 2 Segments Strategic Choices 3 Facilities, CapEx, Location 4 Management 5 Financials 6 Share Information | September 2017 | 2
Slide 3: KRI-KRI at a glance
KRI-KRI at a glance Basic Figures – Investment Summary Investment FY 2016 ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. Turnover EBITDA ✓ High returns and dividend payments to shareholders. €67 m €11 m Management ✓ An experienced and loyal manag
Slide 4: KRI-KRI at a glance: Achievements
KRI-KRI at a glance Achievements ✓ Exports increase ✓ Performance during Greek crisis -26% Greek GDP (€bn) 250 239 226 205 190 Exports €m per year 24,0 184 185 185 185 2008 2009 2010 2011 2012 2013 2014 2015 2016 16,0 KRI KRI Sales & Profit before Taxes Performance (€m) 11,4 11,6 12,0 +68% +133% 9,9
Slide 5: Basic Segments
Basic Segments Yogurt Greece Ice Cream Greece FY 2016: €33,3 m FY 2016: €17,4 m H1 ‘17 YoY: +6,3% H1 ‘17 YoY: +8,8% Yogurt Exports Ice Cream Exports FY 2016: €13,3 m FY 2016: €2,4 m H1 ‘17 YoY: +71,8% H1 ‘17 YoY: -3,7% Source: Company data (IFRS) | September 2017 | 5
Slide 6: Strategic choices – Yogurt Greece: Market Outlook
Strategic choices – Yogurt Greece Market Outlook • Market Size in retail prices • Market Size per Category (€m) • Market Share per Player (>10%) as per July 2017 14,1 KRI KRI 8% 13,4 11% 14 Strained 21,9 Leader 20 23,9 Set 7% 179 €m 13 Fruit Competitor 2 11,8 15,7 97 55% Functional 14 8% 8,9 Kids Co
Slide 7: Strategic choices – Yogurt Greece: Branded products strategy
Strategic choices – Yogurt Greece Branded products strategy • Maintain 2nd Place in Market • Innovation • Maintain leader position in & profitable position kids yogurt (market share 32%) Brand re-launch in Increase product Strained Category Quality with ✓ New High Protein yogurt 0% combined with sup
Slide 8: Strategic choices – Yogurt Greece: Private label products strategy
Strategic choices – Yogurt Greece Private label products strategy ✓ Maintaining around 70-80% of total Leading to considerable • Also improving relationships with yogurt private label Production Economies of Scale large retailers in Greece Indicative co-operations KRI KRI | September 2017 | 8
Slide 9: Strategic choices – Yogurt Exports: Basic European Markets
Strategic choices – Yogurt Exports Basic European Markets United Kingdom Italy of interest Outlook in retail prices Total Yogurt: 1.623m -1% (FY2016 in € & YoY) Total Yogurt: 1.721m +15% Greek/Greek Style: 205m -3% Greek/Greek Style: 179m +17% Germany Netherlands Total Yogurt: 1.907m 0% Total Yogurt
Slide 10: Strategic choices – Yogurt Exports: Private Label
Strategic choices – Yogurt Exports Private Label products United Kingdom Strategy Private label products capture a big share of It offers a strategic way to enter markets consumers wallet in Europe of interest with lower entry cost and build relationships Italy Indicative private label co-operations
Slide 11: Strategic choices – Yogurt Exports: Branded products
Strategic choices – Yogurt Exports Branded products Strategy Careful examination of opportunities in basic markets of Interest Italy United Kingdom Germany • Specialization - Differentiation • Detail plan for marketing • Maintain Position spending | September 2017 | 11
Slide 12: Strategic choices – Ice Cream Greece: Market Outlook
Strategic choices – Ice Cream Greece Market Outlook • Market Size in retail • Market Share per Player (>10%, excluding bulk) prices as per July 2017 15,2 KRI KRI 16,0 25,9 Leader 36,9 220 €m 20,6 Competitor 2 28,8 24,6 Private Label 10,0 Volume Value (€m) Source: Nielsen (Dec2016, July2017) | Septem
Slide 13: Strategic choices – Ice Cream Greece: Ice Cream Strategy
Strategic choices – Ice Cream Greece Ice Cream Strategy ✓ Maintain high profitability ✓ Strengthen market position ✓ Private Label products for Greek SM | September 2017 | 13
Slide 14: Strategic choices – Ice Cream Exports: Market Outlook
Strategic choices – Ice Cream Exports Market Outlook • Global Market Size and Trends • Private Label products market Share in basic European countries (in billion US $) 69,3 Volume Value 66,6 64,1 61,6 59,2 Belgium 54,3% 33,1% 56,9 54,7 52,5 49,4 50,4 Germany (multipacks) 67,0% 56,6% Hungary 53,4% 4
Slide 15: Strategic choices – Ice Cream Exports: Exporting strategy
Strategic choices – Ice Cream Exports Exporting Ice Cream strategy • Distribution Network building in • Looking for opportunities in ✓ Won a contract in a large SM Countries with proximity: Private Label products in retailer in United Kingdom, • Cyprus European Market starting co-operation from • Al
Slide 16: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Current Capacity Ε=25.000m² Utilization • Capability of further Yogurt 70% development in land Ε= 68.000 m² Ice Cream 50% Planned CapEx for 2017-2018 (€m) Capacity Utilization after investment: The amount of planned CapEx is eligible for
Slide 17: Raw milk supply
Raw milk supply Raw milk production map ✓ Sufficiency in Milk supply ✓ Proximity to farms allows us to deliver products with daily fresh milk increasing their quality ✓ 2-year program in collaboration with the Aristotle University of Thessaloniki Central ✓ Participation of more than 50 farmers Maced
Slide 18: Management & HR
Management & HR Experienced and loyal management team Human Resources 16% 36% By age Group 21-30 Panagiotis Tsinavos George Kotsampasis (CEO & Chairman) (COO) 31-40 • MBA • BSc in Chemical >41 Engineering 48% Primary 6% 6% Kostas Sarmadakis Andreas Mylonas school (CFO) (Exports Director) High-school
Slide 19: Risk & Strategies
Risk & Strategies Risks Strategies Sudden changes in raw material prices Examining ways of hedging Competition threats ‘Barriers to entry’ investments Lowering growth of Greek/Greek style yogurt in European markets Exploring Diversification opportunities Consolidation of retail sector in Greece | Se
Slide 20: H1 2017 - Financial results
H1 2017 - Financial results Key Financial figures Looking ahead to H2 2017 IFRS - €m H1 2017 H1 2016 YoY% Sales 41,2 34,8 +18,4% • Impressive Sales increase , • Sales trend to continue mainly driven from Exporting Gross Profit 16,3 14,2 +14,4% Yogurt activity Operating Profit 8,0 5,9 +34,5% EBITDA 8
Slide 21: Key Financials per year
Key Financials per year ✓ Sales by BU (€m) 68 67 67 Operating cash 63 Liquidity Gearing Net Debt (€m) flows (€m) 58 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 2014 1,6 1,5 16% 6,1 45 47 Total Indicators 45 40 35 2013 5,6 3,0 16% -4,3 2012 5,2 3,6 8%
Slide 22: KRI KRI Share information
KRI KRI Share information 3,50 Share performance 2012 2013 2014* 2015 2016 3,00 Stock price 5y Performance as Total stockholder return 3,9% 34,4% -8,0% 5,9% 6,2% 2,50 per 15/9/2017 2,00 +250% Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 1,50 Share price increase (decrease) 0% 31,4% -8,0% 2,7% 1,6% 1,00 P
Slide 23: Share information, shareholders' structure, contact
KRI KRI Share information Share Shareholders’ Contact information structure information KRI KRI share is listed on the Tsinavos Family: 78% IRO: Stefanos Tentolouris Athens Stock Exchange. Legal Entities: 11% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Market: Main market Individuals: 11% Serres
Slide 24: 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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