Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Purcari Wineries — Investor Day (September 2022)
23 slides from Purcari Wineries Public's investor day presentation, Sep 30, 2022
Slide 1: Investor Day
INVESTOR DAY PURCARI WINERIES PLC 30/09/2022 v01
Slide 2: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 2
Slide 3: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 3
Slide 4: Purcari Wineries Group at a Glance
PURCARI GROUP OVERVIEW PURCARI WINERIES GROUP AT A GLANCE Leading wine player in Central and Eastern Europe... … with a strong & expanding regional footprint Founded in 1827 by French colonists, Purcari group is now... Geographical breakdown of sales in value terms, 1H22, % RO MD PL UA CN #1 World’s
Slide 5: Strong Track Record of Growth
PURCARI GROUP OVERVIEW STRONG TRACK RECORD OF GROWTH Sustainable profitability accompanying strong growth Comments ▪ IPOed on Bucharest Stock Exchange in February 2018 2017 2018 2019 2020 2021 Revenue 142.3 168.1 199.1 203.7 248.1 ▪ 75% increase in revenues since pre-IPO CoS (74.5) (85.5) (100.2) (1
Slide 6: Our Mission, Vision and Values
PURCARI GROUP OVERVIEW OUR MISSION, VISION AND VALUES Our mission Our values To bring joy in people’s lives by offering Hungry them high quality, inspiring, ethical wines We win in the marketplace because we want it more. and excellent value for money. Ethical Always do the right thing and the money
Slide 7: Proven Resilient Business Model Even in Unstable Environments
PURCARI GROUP OVERVIEW PROVEN RESILIENT BUSINESS MODEL EVEN IN UNSTABLE ENVIRONMENTS Purcari business model: Affordable Luxury Lipstick effect With Recession Threatening, The Lipstick Effect Kicks In And Lipstick Sales Rise. Modern cost-competitive […] recessions are reliably associated with increas
Slide 8: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 8
Slide 9: COGS Breakdown of the Group, YTD 2022 vs 2021 YoY
OPERATIONAL UPDATES COGS BREAKDOWN OF THE GROUP, YTD1 2022 vs 2021 YoY COGS structure, % Wine Stock • Wine inventory cost component +28% higher in 2022 vs 2021 (due to higher cost of 2020 and 2021 vintages) 1 • 45% 3rd-party grape prices expected to be at 2019 levels (lower than 2020 and 2021) • 300
Slide 10: On Track for a Strong 2022 Harvest
OPERATIONAL UPDATES ON TRACK FOR A STRONG 2022 HARVEST Good 2022 harvest expected Comments Own harvest and 3rd party purchases of grapes, million kg 35.1 • Own vineyards fully recovered after an unprecedent draught in 2020. 30.0 • High attention in maintaining the vineyards has paid off, 27.1 ensuri
Slide 11: Portfolio Development: Continue Creating Inspired Products
OPERATIONAL UPDATES PORTFOLIO DEVELOPMENT: CONTINUE CREATING INSPIRED PRODUCTS PURCARI NOCTURNE ACADEMIA NATIVE, PROCIANO BARDAR, WINE CRIME HoReCa – focused edition ambitious oeno-project Adopting to wine trends Expanding the growth pillars in RO ▪ Launched in 2021, a bet on ▪ Launched in 2022, vin
Slide 12: Outstanding Results at Most Reputable Wine Competitions
OPERATIONAL UPDATES OUTSTANDING RESULTS AT MOST REPUTABLE WINE COMPETITIONS Best Producer Decanter Top TOP 10 BEST from Moldova Classic Wines Sparkling 2022 2021 among 50 Wines Mundus Vini much pricier Effervescents wines du Monde 2021 World’s Most Awarded Winery in 2021 333 Medals #1 Grand Gold Wor
Slide 13: Irrigation Systems to Secure Yield and Quality
OPERATIONAL UPDATES IRRIGATION SYSTEMS TO SECURE YIELD AND QUALITY ▪ Pioneering in irrigation of technical grapes vineyards in Moldova. ▪ Deployed an irrigation system for 300ha of vineyards at Chateau Purcari. ▪ Opted for an intelligent, fully automated sub-surface drip irrigation system. ▪ Two sto
Slide 14: Continuing Investing in Growth and Sustainability
OPERATIONAL UPDATES CONTINUING INVESTING IN GROWTH AND SUSTAINABILITY Solar panels and dedicated warehouse ▪ Solar Panels installed on the roof of the Purcari Winery, to provide 15% of annual electricity consumption for the winery. ▪ 1,025 m2 area covered by solar panels. ▪ Annual production 240 000
Slide 15: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 15
Slide 16: Waste Recycle Management
INSIGHT INTO ECOSMART WASTE RECYCLE MANAGEMENT Strong track-record, required clean-up History and actions taken Short-term plan Revenues, mRON ▪ In 2017 Crama Ceptura contributed to the foundation of ▪ Recover the misappropriated funds 85.8 Ecosmart Union SA with 108 kRON for a 27% share, to (ongoin
Slide 17: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 17
Slide 18: Acquisition of Angel's Estate in Bulgaria
M&A UPDATE ACQUISITION OF ANGEL’S ESTATE IN BULGARIA Key info on Angel’s Estate Revenues, mEUR ▪ 26/09/2022 – Signed SPA for 76% stake in Angel’s Estate. CAGR 2.51 2.55 +13% 2.31 ▪ Full cycle winery 1.90 ▪ Located near Stara Zagora, Thracian Lowlands 1.62 Wine region. 1.56 1.22 ▪ 14,000 m2 – product
Slide 19: Becoming the Undisputable Wine Champion in CEE
M&A UPDATE BECOMING THE UNDISPUTABLE WINE CHAMPION IN CEE Formula of becoming wine champion in CEE M&A focus map ▪ Growth components both organic and through M&A. ▪ Focus on fundamentals: top- and bottom-line line growth while delivering affordable luxury. ▪ Create local champions in the markets we
Slide 20: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 20
Slide 21: Valuation Relative to Wine Peers
PURCARI WINERIES STOCK VALUATION RELATIVE TO WINE PEERS Purcari vs selected wine public companies P/E LTM Multiples 37.0 22.1 21.9 21.2 20.4 19.2 15.6 Average P/E: 16.2x 11.7 10.8 10.6 10.1 10.0 8.4 7.7 1 Source: Net Income and Market Cap as per Capital IQ as of August 19 th, 2022 Note: Diluted EPS
Slide 22: Valuation Relative to Romanian Listed Peers
PURCARI WINERIES STOCK VALUATION RELATIVE TO ROMANIAN LISTED PEERS Purcari vs selected Romanian public companies P/E LTM Multiples 47.3 25.7 14.3 Average P/E: 14.2x 10.2 9.7 9.0 7.7 7.7 6.4 4.2 1 Source: Capital IQ, Company Data as per Capital IQ as of August 19 th, 2022 Note: Diluted EPS excluding
Slide 23: Agenda
AGENDA 1. PURCARI GROUP OVERVIEW 2. OPERATIONAL UPDATES 3. INSIGHT INTO ECOSMART 4. M&A UPDATE 5. PURCARI WINERIES STOCK 6. Q&A Purcari Wineries plc Slide 23