Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — Kri Kri S.A. Milk Industry — Investor Presentation (February 2018)
26 slides from Kri-kri Milk Industry's investor presentation, February 2018
Slide 1: Kri Kri S.A. Milk Industry February 2018
Kri Kri S.A. Milk Industry February 2018
Slide 2: Table of Contents
Table of Contents 1 KRI KRI at a glance 2 Segments Strategic Choices 3 Facilities, CapEx, Location 4 Financials 5 Share Information | February 2018 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance Basic Figures Investment (estimation FY 2017) ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. Turnover EBITDA ✓ High returns and dividend payments to shareholders. €79m €13m Management ✓ An experienced and loyal management team
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Increase ✓ Performance during Greek crisis -26% 250 239 Exports €m per year 226 Greek GDP (€bn) 205 190 185 185 185 184 24,1 2008 2009 2010 2011 2012 2013 2014 2015 2016 Kri Kri Sales & Profit before Taxes Performance (€m) 16,0 +68% +133% 11,4 11,6 12,0 9,9
Slide 5: KRI KRI at a glance: Awards
KRI KRI at a glance Awards «Employment Growth» Best Company’s award for MID – SMALL CAP 2017 Innovative product Super Spoon (ice cream) - ANUGA 2017 • One of the most profitable companies • Staff Growth • Leading Position in the Industry Gold & Silver award 2017 for • High Credit Standing innovative
Slide 6: KRI KRI at a glance: Human Resources
KRI KRI at a glance Human Resources • An experienced and effective management team Employee Satisfaction Survey 2017 • 94% «I feel proud of all we have succeeded» • 350 Employees • 95% «I feel like I offer to the company» • 91% «I would like to continue to work here for a long time» • 3.000 training
Slide 7: Kri Kri at a glance: Basic Segments
Kri Kri at a glance Basic Segments (in € m) Yogurt Greece Ice Cream Greece 2017Ε: 36,1 +8,4% 2017Ε: 18,9 +8,6% 2016: 33,3 2016: 17,4 Yogurt Exports Ice Cream Exports 2017Ε: 21,4 +60,9% 2017Ε: 2,7 +12,5% 2016: 13,3 2016: 2,4 Source: Company data (IFRS) | February 2018 | 7
Slide 8: Strategic choices – Yogurt Greece
Strategic choices – Yogurt Greece Market Outlook * 1 in 4 Greeks consume yogurt produced by Kri Kri • Market size in retail prices • Market share per Category (%,€m) • Market Share per Supplier (Share >10%) 14,2 KRI KRI 7% 13,5 11% Strained 21,8 12 Leader 23,8 20 Set 7% Fruit 11,4 13 Competitor 2 18
Slide 9: Strategic choices – Yogurt Greece
Strategic choices – Yogurt Greece Branded products strategy • 2nd place in the Greek Yogurt market • Focus on Strained Category Brand re-launch in strained yogurt category «my authentic Greek yogurt» 7% 11% Strained 12 20 Set 7% Fruit 13 15 99 55% Functional Improving the quality of 9% products with
Slide 10: Strategic choices – Yogurt Greece
Strategic choices – Yogurt Greece Branded products strategy • Innovation • Leader in kids yogurt (market share 35%) ✓ Strained Yogurt 0% ✓ High Protein ✓ Super fruits & cereals ✓ Perfect snack for people who exercise 7% 7% 11% 11% Strained Strained 12 ✓ Responding to international nutrition 20 12 Se
Slide 11: Strategic choices – Yogurt Greece
Strategic choices – Yogurt Greece Private label products strategy ✓ Maintaining around 70-80% of total Leading to considerable Indicative Customers in Greece yogurt private label Production Economies of Scale ΚRΙ ΚRΙ | February 2018 | 11
Slide 12: Strategic choices – Yogurt Exports
Strategic choices – Yogurt Exports Market Outlook United Kingdom (£m) Italy (€m) Basic European markets Total Yogurt: 1.585 +15% Total Yogurt: 1.623 -1% size in retail prices Greek/Greek style 190 - 3% Greek/Greek style (strained): 179 +17% Authentic Greek: 64 +14% Germany (€m) Netherlands (€m) Tota
Slide 13: Strategic Choices – Yogurt Exports
Strategic Choices – Yogurt Exports Private label products strategy United Kingdom Private label products capture a big share of It offers a strategic way to enter markets consumers wallet in Europe of interest with lower entry cost and build relationships Italy Indicative private label customers in
Slide 14: Strategic Choices – Yogurt Exports
Strategic Choices – Yogurt Exports Branded products strategy Indicative customers with European • Brand re – launch in strained yogurt Super Market chains: category • Expanding portfolio by placing branded United Kingdom Netherlands products to existing customers Belgium Germany | February 2018 | 14
Slide 15: Strategic Choices – Ice Cream Greece
Strategic Choices – Ice Cream Greece Market Outlook *2nd brand in the Greek ice cream market • Market size in retail • Market Share per Brand prices KRI KRI 15,0 Leading Brand 21,2 Brand 3 13,0 220 €mil Brand 4 12,7 Private Label 24,2 Rest 13,9 Volume Source: Nielsen (December 2017) | February 2018
Slide 16: Strategic Choices – Ice Cream Greece
Strategic Choices – Ice Cream Greece Branded products strategy ✓ Expand distribution network (currently 15.000 points of sale) ✓ Increase market share ✓ Maintain high profitability ✓ Private label products for Greek S/M ✓ KRI KRI SA represents Greece in the World Ice Cream Producers Organization IIC
Slide 17: Strategic Choices – Ice cream Exports
Strategic Choices – Ice cream Exports • Global Market Size and Trends (in billion US $) • Private Label products market Share in basic European countries 69,3 Volume Value 66,6 64,1 61,6 59,2 Belgium 54,3% 33,1% 56,9 54,7 52,5 49,4 50,4 Germany (multipacks) 67,0% 56,6% Hungary 53,4% 40,0% Portugal 6
Slide 18: Strategic Choices – Ice cream Exports
Strategic Choices – Ice cream Exports Branded products strategy Private label products strategy • Distribution Network building in Countries with proximity: • Looking for opportunities for • Cyprus Private Label products in • Albania European Market • FYROM ✓ Won a contract with ALDI-UK • Iraq Total
Slide 19: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Ε=25.000m² The amount of planned CapEx is eligible for 35% state subsidy as • Capability of further income tax deduction. development in land Ε= 68.000 m² Planned CapEx for 2017-2018 (€m) Capacity Utilization Before After Investment Inve
Slide 20: Raw milk supply
Raw milk supply Raw milk production map ✓ Sufficiency in Milk supply ✓ Proximity to farms allows us to deliver products with daily fresh milk increasing their quality ✓ 2-year program in collaboration with the Aristotle University of Thessaloniki ✓ Participation of more than 50 farmers Central Maced
Slide 21: Risks & Strategies
Risks & Strategies Risks Strategies Sudden changes in raw material prices Examining ways of hedging Competition threats ‘Barrier to entry’ investments Improving competitiveness Lowering growth of Greek/Greek style yogurt in European markets Exploring Diversification opportunities Consolidation of re
Slide 22: FY 2017 – Financial Results (Estimation)
FY 2017 – Financial Results (Estimation) Key Financial figures Looking ahead to 2018 IFRS - €m 2017E 2016 YoY% Sales 79,2 66,6 +19,0% • Impressive Sales increase , • Sales trend to continue Gross Profit 28,5 25,7 +10,9% mainly driven from Exporting Yogurt activity EBITDA 12,5 11,0 +13,6% EBIT 9,8 8,
Slide 23: Key Financials per year
Key Financials per year ✓ Sales per business unit (€m) Operating cash 79 Liquidity Gearing Net Debt (€m) flows (€m) 68 67 67 2016 8,5 2,8 17% 2,2 63 22 58 23 21 20 2015 7,9 1,8 21% 5,7 23 23 Ice Cream Financial 2014 1,6 1,5 16% 6,1 Yogurt Position 45 45 47 57 Indicators 2013 5,6 3,0 16% -4,3 35 40 2
Slide 24: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +92% 2012 2013 2014* 2015 2016 2017 02.2018 (as per 7/2/2018) Total stockholder return 3,9% 34,4% -8,0% 5,9% 6,2% 59,0% 4,00 Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 3,0% 3,50 Share price increase 3,00 0% 31,4% -8,0% 2,7% 1,6% 56,
Slide 25: KRI KRI Share Information
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 76% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Serres Legal Entities : 14% PC 62125 Individuals : 10% Greece Ticker symbols: Tel.: +30 23210 68300
Slide 26: Legal Disclaimer
Legal Disclaimer This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information contained herein also includes forward- looking stateme
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