Kofola Ceskoslovensko As · PSECZ:KOFOL

Kofola Ceskoslovensko As — H1 2018 Earnings Presentation

43 slides from Kofola Ceskoslovensko As's earnings presentation, Aug 13, 2018

  1. Slide 1: H1 2018 Results Investor Presentation

    W kofola GeskoSlavensko GMZ20I8 RESULTS Investor presentation 13 August 2018

  2. Slide 2: One of the most significant producers of non-alcoholic beverages in CEE and SEE

    One of the most significant producers of non-alcoholic beverages in CEE and SEE Revenues 6M18: € 134.8M EBITDA 6M18: € 17.2M 8 production plants 2,184 employees EUR/CZK ex. rate: 25.500 countries for expansion

  3. Slide 3: Market positions and brand rankings

    No. 2 player in the soft drinks market No. 1 player in the soft drinks market No. 1 water brand in both Retail & HoReCa No. 3 water brand No. 1 player in the soft drinks market No. 2 syrup brand both in Retail & HoReCa No. 2 syrup brand No. 3 cola brand Leading private label soft drinks producer Sou

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  5. Slide 5: Reconciliation of reported and adjusted results

    Reconciliation of reported and adjusted results Reported One-offs Adjusted One-offs: CZK mil. CZK mil. CZK mil. • Net other operating income from the sale of Revenue 3 436.4 - 3 436.4 production lines in Poland of CZK 4.5 mil. Cost of sales (1 953.3) 1.1 (1 952.2) Gross profit 1 483.1 1.1 1 484.2 •

  6. Slide 6: Results comparison 6M18

    Results comparison 6M18 6M17 Change Change • Revenue grew in all segments except Poland (CzechoSlovakia by 7.1 %, Slovenia+Croatia by CZK mil. CZK mil. CZK mil. % 6.6 %). In CzechoSlovakia increase in all Revenue 3 436.4 3 371.0 65.4 1.9% distribution channels thanks to sales of Kofola, Cost of sale

  7. Slide 7: LTM EBITDA and margin

    (CZK m) 14,8% 13,7% 6 866 6 927 6 963 7 054 7 029 13,6% 2 762 2 808 2 829 2 909 2 984 899 919 950 968 1 040 13,1% 13,3% 1,040 13.1% 13.3% 13.6% 13.7% 14.8% 968 950 919 899 2Q17 3Q17 4Q17 1Q18 2Q18 LTM EBITDA LTM EBITDA margin * adjusted for one-offs

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  9. Slide 9: Results comparison 2Q18

    Results comparison 2Q18 2Q17 Change Change •Revenue slightly decreased (by 1.2 %), a net effect of decreased revenue in Poland in amount of CZK 101 mil. (26.8 %) CZK mil. CZK mil. CZK mil. % and increased revenue in the rest of the group. Revenue 2 002.5 2 027.5 (25.0) (1.2%) (1 057.9) (1 157.6) •Hi

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  11. Slide 11: Kofola sales on Retail & HoReCa, CzechoSlovak market

    Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 3,000 60% 51% 2,500 48% 50% Gross Profit 2,000 40% 778 811 Margin 1,500 30% HoReCa 1,000 20% 1,393 1,516 500 10% Retail 0 0% 6M17 6M18

  12. Slide 12: CzechoSlovakia adjusted EBITDA & EBITDA margin

    6M18 EBITDA margin influenced by Adjusted EBITDA & EBITDA margin decreased prices of sugar and very good sales of Kofola. Lower COGS/revenues, lower sales (CZK m) support/revenues. 500 17% 18% 450 400 13% 396 13% 350 300 250 273 8% Share in group’s 200 EBITDA: 90.1% 150 3% 100 50 0 -2% 6M17 6M18

  13. Slide 13: Ugo sales and franchise sales

    Ugo sales + Ugo franchise sales* Highest number of bars in CEE (CZK m) 84 78 78 73 286 61 218 89 42 62 197 156 36 6M17 6M18 2012 2013 2014 2015 2016 1H17 2017 6M18 Own Franchises * not included in the Group´s results

  14. Slide 14: Continuing growth of Ugo bottles sales

    Continuing growth ot Ugo bottles sales 33 29 6M17 6M18

  15. Slide 15: Kofola sales on Polish Retail & Private label market

    Kofola sales on Polish Declining private label sales (CZK m) Retail & Private label market Declining Gross profit 1,200 margin 20% 18% 20% 1,000 800 15% Gross Profit Margin 600 10% Private label 345 400 293 5% 200 Other Retail 311 236 0 0% 6M17 6M18

  16. Slide 16: Poland adjusted EBITDA & EBITDA margin

    Savings from consolidation of Adjusted EBITDA & EBITDA margin Polish production capacities to 1 production plant are not sufficient. Effect of decreased (CZK m) revenues (continuing drop in 10 10% private label sales) still exceeds decrease of costs. 8 8% 6 5 6% Effect on groups´ EBITDA decreasing.

  17. Slide 17: Poland strategy

    • Experienced management with commercial background and focus on results improvement. • Production efficiency optimization with focus on own brands, supported by private labels. • Lower sales but standard profitability (10%). Strong brand • Concentration of production in one plant acquisition (Kutno

  18. Slide 18: HOOP exit effect on Kofola Group

    A contingency plan ASSUMES divestment of the HOOP business before Y/E 2018. The decision has not been made yet. Our successful Polish acquisition of Premium Rosa will be integrated with LEROS – a new segment based on authentic healthy raw materials. 12M17 12M16 Change Change Group Results 12M* - wit

  19. Slide 19: Retail & HoReCa sales in Adriatic market

    Retail & HoReCa sales Continuing growth despite in Adriatic market very cold June. Excellent (CZK m) growth of Radenska water 800 50% sales in Croatia. 700 38% 39% 40% 600 Gross Profit 500 30% Margin 400 224 229 300 20% HoReCa 200 284 10% 100 247 Retail 0 0% 6M17 6M18

  20. Slide 20: Adriatic adjusted EBITDA & EBITDA margin

    Lower EBITDA margin due to Adjusted EBITDA & EBITDA margin changed portfolio – more CSD, less water – higher material costs. Higher energy and logistic costs. Increased (CZK m) marketing in Croatia. 100 18% 90 15% 16% 80 14% 70 12% 60 71 10% 10% Share in group’s 50 50 8% EBITDA: 11.3 % 40 30 6% 20 4

  21. Slide 21: Consolidated Financial Performance Indicators

    Consolidated Financial Performance Indicators

  22. Slide 22: Group revenue 6M17 vs 6M18

    (CZK m) Total CZ+SK 3,371 3,436 2 171 2 327 6M17 6M18 7.1 % growth of sales in CzechoSlovakia 1.9 % growth of sales in Group (effect of lower sales in Poland)

  23. Slide 23: Revenue by segment

    (CZK m) 6M17 6M18 Czech Republic Revenues increased by 8.9 %, due to increased sales of 1 507 Kofola, Rajec, Vinea and Rauch. UGO increased revenue by 1 384 24.1%. Slovakia Revenues growing by 4.1%, keeping leading position in both 819 Retail and HoReCa segment in terms of market share. Sales in our

  24. Slide 24: EBITDA by segment

    (CZK m) Total CZ+SK 439 396 349 273 6M17 6M18 Increased EBITDA in all segments except Poland. EBITDA achieved by the Group in Poland decreased as a result of decreased sales mainly of private labels.

  25. Slide 25: Net debt and net debt/adjusted EBITDA

    (CZK m) Net debt Net debt/adjusted EBITDA 2,6 2,5 2,741 2,376 2017 6M18 Healthy Net debt/adj. EBITDA (<3). Decrease of cash in 6M18 due to purchase of subsidiary LEROS and dividend payment.

  26. Slide 26: Operating CF, Capex, Working Capital

    Operating CF Capex Working Capital •Operating CF increased, thanks to higher profit before tax adjusted for non-cash movements (by CZK 93 mil.), by balanced cash flow effect from 378 working capital changes (by CZK 37 mil.) and lower tax paid (by CZK 20 mil.). 253 232 225 •Decrease of Capex – LY cap

  27. Slide 27: 70 515 105 157 47 026 48 829 55 320 57 658 64 736

    186 947 190 038 210 960 213 657 199 119 92 444 94 937 67 551 70 515 105 157 47 026 48 829 55 320 57 658 64 736 71 490 72 928 36 674 38 098 27 446 28 876 32 817 18 015 19 724 242 267 247 696 275 696 285 147 272 047 129 118 133 035 94 997 99 391 137 974 65 041 68 553 121 820 127 242 141 721 150 052 14

  28. Slide 28: Acquisitions of LEROS and Minerálka

    In March 2018 acquired LEROS – producer In June 2018 acquired Minerálka s.r.o.that of high quality products from medicinal owns brand Kláštorná – quality natural plants and quality natural teas. mineral water with long-term tradition 40-year tradition, leading share in Included in Slovak segment pha

  29. Slide 29: Kofola info

    Kotola INFO an ae

  30. Slide 30: Company history and acquisitions

    Acquisition of Vinea Acquisition Take over of Titbit brand in Slovakia of Ugo group (no. 1 salad producer (most popular CSD (fresh juices) in Czechia). in Slovakia) 2017-2018 HoReCa started 2015-2016 Expansion into a new in Czechia & 2012 segment of healthy Slovakia products Establishment of Expansi

  31. Slide 31: 100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%

    100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%

  32. Slide 32: The complete portfolio of strong brands

    The complete portfolio of strong brands Distributed REG RAUCH Vincenes & Licensed

  33. Slide 33: Kofola share in HoReCa channel

    Kofola´s HoReCa sales in total sales Kofola share in HoReCa channel* 6M18 40% 36% 31% 30% 24% 21% 20% 32% 10% 40% 60% 0% 2012 2013 2014 2015 2016 2017 6M18 68% HoReCa Retail** * based on Data Servis and Canadean (volume terms); ** including private label

  34. Slide 34: Kofola retail market share (value)

    Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +2.6 %p. +8.0 %p. 20% 20% 19% 15% 15% 17% 14% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 6M18 2012 2013 2014 2015 2016 6M18 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data

  35. Slide 35: Kofola HoReCa market share (volume)

    Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +3.4 %p. Kofola gain vs. Competitor 1 30% +8.0 %p. 36% 30% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 6M18 2012 2013 2014 2015 2016 6M18 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen

  36. Slide 36: Current ownership structure

    Current ownership structure 1. On 9 May 2018 CED announced its intention to sale its entire Free float stake in Kofola. 14.58% Kofola Group via AETOS a.s. 2. On 13 June 2018 CED sold its RADENSKA d.o.o. 5.00% 68.00% 8.54% stake in Kofola. 3. If CED sells its remaining stake, CED Group the free float

  37. Slide 37: Dividend policy

    Aim of dividend distribution to shareholders of Kofola of at least 60% of its consolidated net profit achieved in each financial year from 2017 Y15 Y16 Y17 Y15 Y16 Y17 Y18 until 2020, subject to sufficient distributable profits. 500 1 300 427 308 400 1 200 300 1 100 200 1 000 KOFOLA ČS PX 1 064 980

  38. Slide 38: Board of directors and management

    Jannis Samaras Daniel Buryš Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Country manager Poland 68% stake in Kofola (via In Kofola since 2010 In Kofola since 2010 AETOS) René Musila Tomáš Jendřejek Marián Šefčovič Board member, COO Board member, Procurement Director Board m

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  40. Slide 40: Adjusted consolidated financial results

    Adjusted consolidated financial results 6M18 6M17 2017* 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 3,436,419 3,370,982 6,963,278 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (1,952,207) (2,030,857) (4,134,081) (4,211,593) (4,352,102) (3,881 359)

  41. Slide 41: Consolidated statement of financial position

    Consolidated statement of financial position 30.6.2018 30.6.2017 31.12.2017 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,903,918 4,851,498 4,786,195 4,915,863 5,095,724 4,171,985 6,287,894 Current assets 2,402,031 3,277,39

  42. Slide 42: Kofola ČeskoSlovensko a.s. investor relations

    Should you have any question related to Kofola Group do not hesitate to contact our investor relations office: e-mail: investor@kofola.cz tel.: +420 735 749 576 http://investor.kofola.cz/en Kofola ČeskoSlovensko a.s. Nad Porubkou 2278/31A 708 00 Ostrava Czech Republic Follow us at

  43. Slide 43: Disclaimer

    This presentation (“the Presentation”) has been prepared by Kofola ČeskoSlovensko a.s. (“the Company”). The Company has prepared the Presentation with due care, however certain inconsistencies or omissions might have appeared in it. Therefore it is recommended that any person who intends to undertak

Kofola ČeskoSlovensko a.s. — H1 2018 Earnings Presentation on 6ix