Slide 1: Earnings Presentation for the six months ended 30 June 2015
Earnings Presentation for the six months ended 30 June 2015 Speakers: Alexander Mechetin, CEO Nikolay Belokopytov, CFO 31 August, 2015 Sergey Kuptsov, Head of corporate finance
Slide 2: • changes in political, social, legal or economic conditions in Russia generally, or in
This presentation has been prepared by Synergy, Co. (the “Company“, or “Synergy”) and together with its subsidiaries. By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitations and notifications. This presentation is strictl
Slide 3: Synergy reports 1H2015 financial results
Synergy, a leading alcohol company in Russia reports 1H2015 financial results • Sales grew 15% and reached 20.3 bln. rubles • Net Revenue increased by 18% to 13.0 bln. Rubles • Gross Profit raised by 13% to 5.5 bln. rubles 1H2015 vs • EBITDA grew 9% to 1.4 bln. rubles 1H2014 • EBITDA margin decrease
Slide 4: Consolidated Revenue for 1H2015
Consolidated Revenue for 1H2015 Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) +16% Y-o-Y 14 000 +18% Y-o-Y 13 022 10 000 8 455 9 768 Alcohol (1) 12 000 11 032 10 000 5 000 8 000 0 6 000 1H2014 1H2015 3 300 +26% Y-o-Y 3 238 4 000 Food (1) 2 577 2 000 2 200 0 1 100 1
Slide 5: Consolidated Gross Profit for 1H2015
Consolidated Gross Profit for 1H2015 Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) Gross Profit 5 000 4 305 +9% Y-o-Y 4 691 Gross Margin Alcohol (1) +13 % Y-o-Y 6 000 5 483 4 864 51% 2 500 48% 0 1H2014 1H2015 44.1% 3 000 42.1% 900 763 +33% Y-o-Y 600 573 F
Slide 6: Alcohol segment breakdown
Alcohol segment breakdown(1) Alcohol segment revenue breakdown, million RUB Alcohol segment gross profit breakdown, million RUB 1H2014 4 500 +5% 9 000 +9% 4 091 1H2014 7 894 1H2015 3 897 1H2015 7 224 6 000 3 000 53.9% 51.8% 3 000 +52% 1 500 1 875 +47% 1 231 600 408 33.1% 32.0% 0 0 Spirits Production
Slide 7: Consolidated EBITDA and Net Profit for 1H2015
Consolidated EBITDA and Net Profit for 1H2015 EBITDA, million RUB G&A and distribution expenses , million RUB EBITDA General & Administrative expenses EBITDA Margin Distribution expenses 4 789 1 500 +9 Y-o-Y 1 418 3 903 1 301 4 000 1 000 3 000 3 551 11.8% 2 750 +29% Y-o-Y 10.9% 2 000 500 +7% Y-o-Y 1
Slide 8: Company's debt
Company’s debt Debt breakdown, million RUB Net debt (1) evolution, million RUB Long-term debt 8 708 Short-term debt 8 163 7 731 6 679 5 544 4 907 6 670 8 226 7 732 5 804 5 919 6 212 2 824 3 164 1 493 875 YE2012 YE2013 YE2014 1H2015 YE2013 1H2014 YE2014 1H2015 As of 31 December, 2014 As of 30 June, 2
Slide 9: Appendices
APPENDICES 9
Slide 10: Company Strategy
COMPANY STRATEGY Become the dominant spirits company in Russia with a diversified portfolio of brands and products and best in class distribution platform Balanced portfolio of brands covering all price Strong distribution platform with focus on direct categories sales Focus on three key upper
Slide 11: Diversified portfolio of national brands with focus on key brands
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS WITH FOCUS ON 3 KEY BRANDS Well-established portfolio of brands with high awareness is serious competitive advantage on “dark market” for advertisement Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium portfolio Vodka Average retail price per
Slide 12: Developing portfolio of national brown spirits brands
DEVELOPING PORTFOLIO OF NATIONAL BROWN SPIRITS BRANDS Brandy Whisky Infusions Balsam and herbal liqueurs Rum Sub-premium Brown spirits Low-middle Middle portfolio Average retail price per 0.5 liter from Jan 2013 RUR 400 RUR 460 RUR 500 RUR 500 RUR 250- 290 RUR 610 RUR 560 RUR 350 Increase in net pri
Slide 13: Synergy is #1 independent spirits distributor in Russia
SYNERGY IS #1 INDEPENDENT SPIRITS DISTRIBUTOR IN RUSSIA portfolio of premium international brands. • Synergy distributes in Russia a comprehensive Dedicated team (Synergy Import) – more than 400 people • Key partners: William Grant & Sons, Camus, Distell, Great Valley, Ron Barcelo Scotch Whisky Cogn
Slide 14: Synergy launched wine distribution
SYNERGY LAUNCHED WINE DISTRIBUTION Synergy provides the best platform for massive and qualitative wine distribution in Russia. Wine producers from France, Italy, Spain, Chile, Germany, South Africa Categories: red and white still wines, sparkling wines France Chile Italy Germany South Africa Spain 1
Slide 15: Restyling and new products
RESTYLING NEW PRODUCTS Dr. August infusion Beloe Ozero Ussuri family (Middle) (Premium Bitter) 28 SKU’s Syli Prirodi (Middle) Captain’s Spirit Line Captain’s Rum Tigroff Arkhangelskaya (Sub-premium) (Sub-premium) Rzhanoy Kolos (Middle) Captain’s Gin FOCUS ON NEW PRODUCT DEVELOPMENT. RECENT LAUNCHES
Slide 16: Focus on quality distribution
FOCUS ON QUALITY DISTRIBUTION Domestic sales breakdown by geographical regions, % of Group’s volume, 2013 • 3 key brands: BELUGA, Myagkov and North-Western Federal Urals Federal district Siberian Federal Far Eastern Federal Belenkaya district Population: 12 million district district Focus Focus • Hi
Slide 17: 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 Contacts: Sergey Kuptsov, Head of Corporate finance Prokhor Malutin, PR director www.sygroup.ru 17