Novabev Group · RUS:BELU
Novabev — Beluga Group — H1 2017 Earnings Presentation
20 slides from Novabev's earnings presentation, August 2017
Slide 1: 1H2017 Earnings Presentation
1H2017 Earnings Presentation August 2017
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 1H2017 Financial Highlights
COMPANY’S 1H2017 FINANCIAL HIGHLIGHTS 8% volume increase Sales grew 5% and reached 25.9 bln. Rubles Net Revenue decreased by 2% to 15.7 bln. Rubles* Operating profit increased by 4% to 1,2 bln. Rubles EBITDA grew 2% to 1.6 bln. Rubles EBITDA and Operating margins improved by 0.5 pp. 79% growth of Ne
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 • 16% legal vodka market share • 9% brandy market share • 21% flavored
Slide 5: Consolidated Revenue
CONSOLIDATED REVENUE Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) 20 000 15 000 12 806 -4% 12 353 16 106 -2% 15 735 10 000 Alcohol (1) 5 000 10 000 0 1H2016 1H2017 4 000 3 273 +1% 3 304 Food (1) 2 000 0 1H2016 1H2017 0 1H2016 1H2017 Consolidated Revenue split, % 1
Slide 6: Consolidated Gross Profit
CONSOLIDATED GROSS PROFIT Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) 8 000 8 000 6 854 -11% 6 067 -13% 5 289 6 078 Alcohol (1) 4 000 4 000 0 1H2016 1H2017 1 000 764 -1% 755 Food (1) 500 0 1H2016 1H2017 0 1H2016 1H2017 Consolidated Gross Profit split, %
Slide 7: Consolidated EBITDA and Net Profit
CONSOLIDATED EBITDA AND NET PROFIT EBITDA, million RUB G&A and distribution expenses , million RUB G&A Distribution expenses 2 000 6 000 +2% 1 604 1 569 4 000 4 552 -25% 1 000 10.2% 3 435 9.7% 2 000 +12% 1152 1291 0 0 1H2016 1H2017 1H2016 1H2017 Main reasons of 12% year-on-year increase in G&A: Oper
Slide 8: Beluga Group Debt Structure
BELUGA GROUP GROUP DEBT STRUCTURE 2016 1H2017 Change, % Debt evolution, million RUR Debt 9 053 10 319 +14% 12 000 Long tem debt Short term debt Net debt Cash & cash equivalents 1 010 583 -42% 10 319 9 503 Net Debt 8 043 9 736 +21% 8 449 8 000 Equity & reserves 19 453 19 540 +1% (1) 9 736 Total capit
Slide 9: Income Statement
INCOME STATEMENT 2014 2015 2016 1H2016 1H2017 YoY, % Net revenue 28 163 30 706 35 903 16 106 15 735 -2% Cost of sales (16 135) (18 033) (21 385) (8 573) (10 206) 19% Gross profit 12 028 12 673 14 518 6 854 6 078 -11% Gross margin 43,0% 41,0% 40,4% 42,6% 38,6% -4 pp. G&A expenses (2 411) (2 582) (2 4
Slide 10: Cash Flow
CASH FLOW 2014 2015 2016 1H2016 1H2017 Operating profit 2 274 2 109 2 486 1 170 1 221 Depreciation and amortisation 699 776 726 396 379 Other non-cash transactions 90 (123) 183 (82) 28 Changes in working capital (2 316) 1 332 (1 231) (1 775) (1 519) CF from operating activities 747 4 094 2 164 (291)
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 and products and best in class distribution platform DIVERSIFIED BRAND PORTFOLIO, COVERAGE OF ALL CONTINUED DEVELOPMENT OF THE DISTRIBUTION SEGMENTS PLATFORM WITH A FOCUS ON DIRECT SALES
Slide 13: Beluga Group Russia Market
BELUGA GROUP RUSSIA MARKET Russian spirits market (main categories), 2016, 000, Dcl TOP 5 brandy producers in volume, 2016 160 000 150 000 120 000 13,7% 80 000 40 000 9,0% - 8,2% 30 000 6,9% 6,8% 20 000 9 975 8 202 10 000 3 213 1 606 - Vodka Russian brandy Infusions Whisky Armenian Allians Beluga Gr
Slide 14: Leading Brands: Vodka Portfolio
LEADING BRANDS* VODKA PORTFOLIO Super-Premium Low-Premium 70% 16% 14,7% 60,1% 13,4% 12% 8,3% 7,8% 35% 8% 6,5% 6,5% 5,9% 11,3% 9,4% 4% 3,1% 3,1% 2,8% 2,4% 0% 0% Standard Economy 16% 7% 6,2% 12,6% 5,6% 5,5% 12% 4,9% 9,9% 4,6% 3,9% 3,7% 8% 7,4% 7,4% 6,6% 4% 5,6% 5,3% 4% 0% 0% *Source: Nielsen DJ2015 -
Slide 15: Diversified Portfolio of National Brands: Vodka Portfolio
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS VODKA PORTFOLIO Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium RUR 270 RUR 320 RUR 360-375 RUR 445 RUR 1100 – RUR 4500 Russky Beluga Trans Beluga Belenkaya VEDA Beluga Beluga Beluga TSAR Lyod Myagkov Arkhangelskaya atlantic Noble (Whitish)
Slide 16: Developing Portfolio of National Brown Spirits Brands
DEVELOPING PORTFOLIO OF NATIONAL BROWN SPIRITS BRANDS BROWN SPIRITS PORTFOLIO Brandy Whisky-based Flavored liquors Balsam and herbal liqueurs Rum Gin Low-middle Middle Low-premium Premium RUR RUR RUR 590- RUR 560 RUR 355 RUR 215-310 RUR 410 RUR 390 RUR 380 RUR 355 470 510 750 Zolotoy Staraya Kamenny
Slide 17: 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 17
Slide 18: Beluga Group Strategy in Imported Wine Business
BELUGA GROUP STRATEGY IN IMPORTED WINE BUSINESS IMPORT. WINE Focus on Invest in Trade Leverage distribution Development Noble middle&premium price Marketing and Brand platform in wine House for premium segments Building development imported products 18
Slide 19: Contacts
CONTACTS Address: 30/1 Obrucheva Str., bldg. 1 Moscow 117485 Russia Phone: +7 495 510 2695 +7 495 775 3050 Fax: +7 495 510 2697 +7 495 775 3052 E-mail: ir@sygroup.ru www.sygroup.ru 19
Slide 20: ers
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