Slide 1: BELUGA GROUP 1H2021 financial results
BELUGA GROUP 1H2021 financial results August
Slide 2: Disclaimer
To be updated if needed Disclaimer The information contained herein has been prepared by operate in the future. Although the Company believes studies and surveys generally state that the data contained The information must not be acted on or relied on (i) in the Beluga Group PJSC (the “Company”). Th
Slide 3: Key financial and operational highlights
Key financial and operational results for 1H2021 Ongoing diversification Strong growth of key financials: of business with strong Net Revenue: +20% portfolio of own and Gross profit: +21% imported brands Net Income: +150% Continuous Solid resilience deleverage and amid pandemic with improvement of r
Slide 4: BELUGA GROUP at a glance
BELUGA GROUP at a glance № 1 № 4 RUB 97bn RUB 68bn RUB 9.5bn Spirits producer Vodka producer (+18% y-o-y) (+23% y-o-y) (+31% y-o-y) In Russia1 Globally2 LTM Gross revenue3 LTM Net revenue3 LTM EBITDA3 14.3% 713 BB- ruA 1.5x ≥ 25% ROIC3 stores4 Fitch Expert RA Net debt / EBITDA4 of Net Income One of
Slide 5: Robust operational performance
Robust operational performance Total shipment Import In-house brands In-house brands shipment Import brands shipment shipment, % shipment, % 000, 9L cases 000, 9L cases 000, 9L cases 21% 1.3% 15% 1.5% 85% 21% 17.4 14.4 15.7 14% 14.0 15.0 2.4 11% 13.0 9% 86% 89% 1.7 91% 7.2 7.3 1.3 6.3 6.2 1.1 13% 16
Slide 6: Selected brands' performance in 1H2021
Selected brands’ performance in 1H2021 shows ongoing trend of sales mix premiumization In-house brands Vodka Spirits Wine Beluga Arkhangelskaya Belaya Fox & Dogs, Green Golubitskoe Beluga (export) sova whiskey Baboon, gin Estate, Tete de Cheval + 61% + 107% + 25% + 21% + 64% + 24% + 36% Partners’ br
Slide 7: Continuous focus on innovations with successful ramp-up of new products
Continuous focus on innovations with successful ramp-up of new products Track record of launching new products 2016 2017 2018 2019 2020 1H2021 – new products R – rebranded products R R R R Continuous focus on innovations enables the Group to respond to the changing customer preferences Winelab is an
Slide 8: №1 spirits producer in Russia and №4 vodka producer globally
№1 spirits producer in Russia and №4 vodka producer globally Russia Globally #1 Distilled spirits producer #4 Vodka producer Unmatched leadership In Duty-Free super-premium domestically and further #1 Flavored spirits producer1 #2 vodka segment advance worldwide #1 Whiskey producer #9 Spirits compan
Slide 9: Unmatched leadership in Russia in major spirits categories
Unmatched leadership in Russia in major spirits categories Market share in 2020 by volume №1 vodka & flavored liquors producer1 №1 flavored liquors producer Global Spirits 13.6% 17.7% OPVZ 11.9% 18.7% Roust 10.4% Sordis 6.8% ASG 8.1% Global Spirits 6.6% Tatspirtprom 6.8% Tatspirtprom 5.1% №2 brandy
Slide 10: Beluga – flagship brand supplied all around the world
Beluga – flagship brand supplied all around the world #1 Top-5 ultra-premium vodka brands globally Market shares of ultra-premium vodka brands globally by volumes, 20201 #2 32.2% #3 27.0% Premium vodka brand 10.4% 7.4% Premium vodka in Russia and CIS 4.5% brand globally Ultra-premium Prestig
Slide 11: Successful ramp-up of own specialized retail chain
Successful ramp-up of own specialized retail chain applying efficient Direct-to-customer approach Stores rollout dynamics Higher profitability comparing to public # of stores (end of period) 713 Like-for-like sales: Russian retailers1, Gross margin in 2020, % 665 +15.4% (1H 21’ YoY) 545 604 622 645
Slide 12: Financial results update
FINANCIAL RESULTS UPDATE
Slide 13: Financial performance summary
Financial performance summary In RUB bn unless stated otherwise 1H 2019 1H 2020 1H 2021 CAGR'19-21 Revenue reached RUB 30.8 bn growing at CAGR of 19.7% since 1H 2019 Total shipment, mn 9L cases 6.3 7.2 7.3 7.9% 20% y-o-y revenue growth in 1H 2021 # of stores 545 622 713 14.4% Revenue Revenue growt
Slide 14: Strong financial performance
Strong financial performance Net revenue1 EBITDA Net income In 1H 2021, consolidated RUB bn RUB bn % EBITDA margin RUB bn % NI margin revenue grew by 20% mainly 12.6% 13.4% 12.0% 2.1% 1.8% 3.7% due to growth of exports as well as steady growth of Winelab retail chain CAGR 20% CAGR 17% CAGR 60% 30,8
Slide 15: Consistent growth across all segments
Consistent growth across all segments Production & Distribution Retail revenue Food revenue Strong top-line growth across revenue dynamics dynamics dynamics all business segments RUB bn RUB bn RUB bn Segment share, % Segment share, % Segment share, % Production & Distribution 61.6% 55.2% 55.5% 26.0%
Slide 16: The Group significantly de-levered in the last years
The Group significantly de-levered in the last 3 years Total debt evolution Total debt statistics summary Net Debt / LTM EBITDA RUB bn Total Debt / LTM EBITDA RUB mn 30 Jun’20 30 Jun’21 declined significantly from 3.7x in 1H 2019 to 1.5x in 1H 2021 3.9x 3.2x 2.1x 23,1 Loans and bonds 19,703 16,483 3
Slide 17: Shareholder structure and dividend policy
Shareholder structure and dividend policy Shareholder structure1 Dividend policy A. Mechetin Free float In September 2020, the Board of Directors of BELUGA GROUP approved the Group's new dividend policy, 58% 24% which sets out the following key principles: Quasi-treasury Management 13% 5% At least 2
Slide 18: Income statement
Income statement RUB mn 1H 2019 1H 2020 1H 2021 YoY, % Net revenue 21,450 25,629 30,752 +20% Cost of sales (13,056) (16,452) (19,624) +19% Gross profit 8,394 9,177 11,128 +21% margin 39.1% 35.8% 36.2% +0.4 bp G&A expenses (1,605) (1,468) (1,796) +22% Distribution expenses (4,851) (5,201) (6,783) +30
Slide 19: Balance sheet
Balance sheet RUB mn 30 Jun’19 30 Jun’20 30 Jun’21 RUB mn 30 Jun’19 30 Jun’20 30 Jun’21 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Share capital 1,940 1,580 1,580 Property, plant and equipment 14,202 13,382 13,839 Treasury shares (618) (338) (206) Goodwill 3,0
Slide 20: Cash Flow
Cash Flow RUB mn 1H 2019 1H 2020 1H 2021 Operating profit, continuing operations 1,734 2,303 2,423 Operating loss, discontinued operations - (136) (16) Depreciation and amortization 969 1,158 1,278 Other non-cash transactions 50 148 92 Other gain / losses (18) 5 (26) Changes in working capital (2,83
Slide 21: Key components of BELUGA GROUP's strategy
Key components of BELUGA GROUP's strategy Further diversification of brand portfolio with focus Expanding retail on high-margin products 01 02 network Benefiting from customer demand shift Increasing number of stores to 2,500, from vodka into categories with higher targeting mainly Moscow and St
Slide 22: Appendix
BELUGA APPENDIX
Slide 23: BELUGA GROUP's efficient route to the market
BELUGA GROUP’s efficient route to the market 5 production facilities across Russia with >20mn 9L total capacity 1 ethanol plant with 1mn 9L total capacity 42 Saint Petersburg 1 vineyard Riga 241 ha fertile vineyards Saint Petersburg Arkhangelsk 40 Arkhangelsk region 900 ha additional land Moscow Kra
Slide 24: Diversified business with large share of non-vodka categories
Diversified business with large share of non-vodka categories Key direction for business diversification BELUGA GROUP Production & Distribution revenue evolution3 100% 100% Distribution platform focused Growing share on direct sales of export operations Import 4% High and growing level of the Ex
Slide 25: Strong brand portfolio: own brands
Strong brand portfolio: own brands Vodka Brandy / Cognac / Wine Other spirits Liquor (gin, tequila, rum, etc.) Super Super premium premium Sub-premium / Sub-premium / premium premium Middle Middle Mainstream Mainstream Sources: Company data Notes: Price range for every segment could differ based on
Slide 26: Strong brand portfolio: imported brands
Strong brand portfolio: imported brands Brandy / Cognac / Whisky Wine Other spirits Liquor (gin, tequila, rum, etc.) Super Super premium premium Sub-premium / Sub-premium / premium premium Middle Middle Mainstream Mainstream Sources: Company data Notes: Price range for every segment could differ bas
Slide 27: Continuous adherence to high ESG standards
Continuous adherence to high ESG standards 88% 209k industrial waste cubic meters of water Environmental recycled, 2020 consumed, 2020 ISO 9001:2018, Organic Donations Switch to NNPB2 ISO 22000:2018, vodka to Ocean technology, HACCP 22000 development in Foundation decreasing bottle weight 100% 153k
Slide 28: Supporting the UN Sustainable Development Goals
Supporting the UN Sustainable Development Goals High priority Decent work and Responsible consumption economic growth and production SDGs1 of 10,000 employees in BELUGA GROUP Increasing the efficiency BELUGA Ensuring opportunities for career development of natural resources usage Using energ
Slide 29: High standards of corporate governance with independent members on the Board
High standards of corporate governance with independent members on the Board of directors ALEXANDER NIKOLAY 4 New members on MECHETIN CEO Founder of BELUGA GROUP BELOKOPYTOV Chairman of the BoD CFO the Board of Directors SERGEY MIKHAIL MOLCHANOV KASHIRIN Head of Business Chief Operating Officer Deve
Slide 30: Non-core business
Non-core business Divested Divested Crops Poultry Meat processing Dairy Crops/land operations 100% vertically integrated business Operations in the Far East Operations in the Far are located in Saratov, the black located in Saratov region consists Region of Russia East Region of Russia earth
Slide 31: Contact us!
IR Contact Details Sergey Kuptsov Anton Chertkov Head of Corporate Finance Investor Relations Manager Tel: +7 (495) 510-26-95 Tel: +7 (495) 775-30-50 E-mail: ir@belugagroup.ru E-mail: ChertkovAA@belugagroup.ru Contact us! 31