Kofola Ceskoslovensko As · PSECZ:KOFOL

Kofola Ceskoslovensko As — Q1 2018 Earnings Presentation

42 slides from Kofola Ceskoslovensko As's earnings presentation, May 5, 2018

  1. Slide 1: 3M 2018 Results Investor presentation

    W kofola GeskoSlavensko 3M20I8 KESULTS Investor presentation 5 May 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 3M18: € 56.5M EBITDA 3M18: € 3.8M 8 production plants 2,182* employees EUR/CZK ex. rate: 25.402 countries for expansion * as of 31 December 2017

  3. Slide 3: Market positions in soft drinks

    No. 2 player in the soft drinks market No. 1 player in the soft drinks No. 1 syrup brand market No. 1 water brand in both Retail & HoReCa No. 2 water brand No. 1 player in the soft drinks market No. 2 syrup brand both in Retail & HoReCa 35% HoReCa market share No. 2 syrup brand No. 3 cola brand Lead

  4. Slide 4: Kofola Group Key 3M Highlights

    ofola Group Key 3M Highlights* Net debt / EBITDA Revenue per countries {C2K mil) 3M18 277 2017 2,50 279 254 3M17 2,01 Profit for the period (C2K mil) 3M17 EBITDA (CZK mil.) * adjusted for one-offs

  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 1 434.0 - 1 434.0 production lines in Poland of CZK 4.6 mil. Cost of sales (894.3) - (894.3) Gross profit 539.7 - 539.7 • Costs connec

  6. Slide 6: Results comparison 3M18 vs 3M17

    Results comparison 3M18 3M17 Change Change • Revenue grew in all segments except Poland. Main increase in Czechia, thanks to Kofola, CZK mil. CZK mil. CZK mil. % Rauch, Vinea and increased sales in Ugo. Sales in Revenue 1 434.0 1 343.5 90.4 6.7% the Adriatic region increased by 17.2 %. Cost of sales

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  8. Slide 8: Kofola sales on CzechoSlovak Retail & HoReCa market

    Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 1,200 49% 50% 42% 45% 1,000 40% 35% Gross Profit 800 303 30% Margin 331 600 25% 20% HoReCa 400 661 15% 543 10% 200 5% Retail 0 0% 3M17 3M18

  9. Slide 9: Adjusted EBITDA & EBITDA margin CzechoSlovakia

    3M18 EBITDA margin influenced by Adjusted EBITDA & EBITDA margin decreased prices of sugar and very good sales of Kofola and Rauch. Lower sales support and maintenance (CZK m) costs. 180 15% 160 140 11% 120 9% 10% 100 103 80 60 75 5% Share in group’s 40 EBITDA: 106% 20 0 0% 3M17 3M18

  10. Slide 10: Ugo sales and franchise sales

    Ugo sales + Ugo franchise sales* Highest number of bars in CEE (CZK m) 84 82 73 75 61 39 119 38 43 96 35 28 45 39 84 37 68 3M17 3M18 2012 2013 2014 2015 2016 3M17 2017 3M18 Own Franchises * not included in the Group´s results

  11. Slide 11: Excellent growth of Ugo bottles sales

    Excellent growth of Ugo bottles sales 3M17 3M18

  12. Slide 12: Kofola sales on Polish Retail & Private label market

    Kofola sales on Polish Growing Retail sales (CZK m) Retail & Private label market Declining Gross profit margin 350 20% 20% 300 15% 250 15% Gross Profit Margin 140 99 200 150 10% Private label 100 139 155 5% 50 Other Retail 0 0% 3M17 3M18

  13. Slide 13: Adjusted EBITDA & EBITDA margin Poland

    Consolidation of Polish Adjusted EBITDA & EBITDA margin production capacities to 1 production plant in Kutno will lead to cost reductions. A (CZK m) production plant (Grodzisk Wielkopolski) was closed at 11 2% 3% YE2017. 9 2% 2% 7 7 1% Share in group’s 5 1% EBITDA: -0.8 % 3 0% (3M17: 8.7 %) 1 0% 0%

  14. Slide 14: Poland: priorities and actions

    • 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

  15. Slide 15: HOOP exit effect on Kofola Group

    A contingency plan assumes divestment of the HOOP business in 2018 Our successful acquisition Premium Rosa will be integrated with LEROS – a new healthy segment 12M17 12M16 Change Change Group Results 12M* - without HOOP CZK mil. CZK mil. CZK mil. % HOOP exit effect on Kofola Group: Revenue 5 761.0

  16. Slide 16: Retail & HoReCa sales in Adriatic market

    Retail & HoReCa sales in Adriatic market Higher material and energy costs in (CZK m) SI+CRO (more CSD). Cold March in CRO. 300 40% Lower production costs 1Q17 in 34% CRO (products on stock from 2016, 250 acquired at 2016 YE). 30% 30% 200 Gross Profit 42 Margin 150 20% 37 HoReCa 100 144 10% 122 50 Re

  17. Slide 17: Adjusted EBITDA & EBITDA margin Adriatic

    Lower EBITDA margin due to Adjusted EBITDA & EBITDA margin changed portfolio – more CSD – higher material costs. Higher energy costs. (CZK m) 10% 20 8% 15 5% 5% Share in group’s 10 10 EBITDA: 10.6 % 5 7 0 0% 3M17 3M18

  18. Slide 18: Consolidated Financial Performance Indicators

    Consolidated Financial Performance Indicators

  19. Slide 19: Total revenue 3M17 vs 3M18

    (CZK m) Total CZ+SK 1,434 1,344 964 874 3M17 3M18 10.3 % growth of sales in CzechoSlovakia 6.7 % growth of sales in Group

  20. Slide 20: Revenue by country

    (CZK m) 3M17 3M18 Czech Republic Revenues increased by 14.0 %, due to increased sales of 646 Kofola, Rauch and Vinea. UGO increased revenue by 32.4%. 566 Slovakia Revenues growing by 3.4%, keeping leading position in both Retail and HoReCa segment in terms of market share. Sales in our most profitab

  21. Slide 21: EBITDA by segment

    (CZK m) Total CZ+SK 103 97 79 74 3M17 3M18 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.

  22. Slide 22: LTM EBITDA and EBITDA margin

    (CZK m) 14,4% 13,7% 13,6% 6 876 6 866 6 927 6 963 7 054 2 741 2 762 2 808 2 829 2 909 13,3% 990 899 919 950 968 13,1% 990 14.4% 13.1% 13.3% 13.6% 13.7% 968 950 919 899 1Q17 2Q17 3Q17 4Q17 1Q18 LTM EBITDA LTM EBITDA margin * adjusted for one-offs

  23. Slide 23: Net debt and Net debt/adjusted EBITDA

    (CZK m) Net debt Net debt/adjusted EBITDA 2,8 2,5 2,687 2,376 2017 3M18 Healthy Net debt/adj. EBITDA (<3). Decrease of cash in 3M18 due to purchase of subsidiary LEROS.

  24. Slide 24: Operating CF, Capex, Working Capital

    Operating CF Capex Working Capital •Operating CF increased, thanks to positive working capital changes vs. YE values (high 102 decrease of payables 3M17/2016 and lower 84 increase of inventory 3M18/2017 than in 51 3M17/2016 which exceeded increase of receivables 3M18/2017). •Decrease of Capex – LY c

  25. Slide 25: 70 515 105 157 18 791 20 378 55 320 57 658 64 736

    186 947 190 038 210 960 213 657 199 119 38 428 46 471 67 551 70 515 105 157 18 791 20 378 55 320 57 658 64 736 71 490 72 928 14 630 16 028 27 446 28 876 32 817 2 863 3 567 242 267 247 696 275 696 285 147 272 047 53 058 62 499 94 997 99 391 137 974 21 654 23 945 121 820 127 242 141 721 150 052 149 18

  26. Slide 26: Acquisition of LEROS in March 2018

    In March 2018 acquired LEROS – producer of high quality products from medicinal plants and quality natural teas. 40-year tradition, leading share in pharmacy channel. Together with Premium Rosa (acquired in 2017), Kofola will create another segment based on herbs and authentic healthy raw materials.

  27. Slide 27: Kofola INFO

    Kotola INFO an ae

  28. Slide 28: 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

  29. Slide 29: 100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%

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

  30. Slide 30: The complete portfolio of strong brands

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

  31. Slide 31: Kofola share in HoReCa channel

    Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 2017 40% 35% 31% 30% 24% 21% 20% 33% 10% 39% 61% 0% 2012 2013 2014 2015 2016 2017 67% HoReCa Retail** * * based on Data Servis and Canadean (volume terms); ** including private label

  32. Slide 32: Kofola Retail market share (value)

    Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +3.7 %p. +7.1 %p. 20% 20% 19% 15% 15% 17% 15% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data

  33. Slide 33: 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% +7.4 %p. 30% 35% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen

  34. Slide 34: Current and target ownership structure 2018

    Current ownership structure Target ownership structure 2018 Free float 6.04% Free float Kofola Group via 27.00% RADENSKA d.o.o. 5.00% AETOS a.s. CED Group S.a.r.l. 68.00% 20.96% AETOS a.s. 68.00% Kofola Group via Radenska 5.0%

  35. Slide 35: Ownership changes completed and planned

    Already has taken place (2017): 1. Establishment of AETOS a.s. 2. KSM (Jannis Samaras and his family), René Musila and Tomáš Jendřejek transfered their shares in Kofola to AETOS. 3. CED Group S.a.r.l. (private equity fund) sold 12 % of its shares in Kofola to AETOS for 440 CZK/share. 4. RADENSKA d.o

  36. Slide 36: Dividend policy: at least 60% of consolidated net profit

    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. * suggested by majority shareholder 500 1 300 402 407 400 1 200 300 KOF

  37. Slide 37: Board of Directors

    Jannis Samaras Daniel Buryš Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Country manager Poland 56% 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

  38. Slide 38: Appendix

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  39. Slide 39: Adjusted consolidated financial results

    Adjusted consolidated financial results 3M18 3M17 2017* 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 1,433,952 1,343,528 6,963,278 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (894,272) (873,303) (4,134,081) (4,211,593) (4,352,102) (3,881 359) (4,3

  40. Slide 40: Consolidated statement of financial position

    Consolidated statement of financial position 31.3.2018 31.3.2017 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 4,843,700 4,930,977 4,786,195 4,915,863 5,095,724 4,171,985 6,287,894 Current assets 1,935,599 2,922,66

  41. Slide 41: Kofola ČeskoSlovensko a.s. investor relations contact

    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

  42. Slide 42: 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

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