Novabev Group · RUS:BELU
Novabev — Beluga Group — Investor Presentation (December 2020)
30 slides from Novabev's investor presentation, December 2020
Slide 1: Beluga Group Presentation December 2020
BELUGA GROUP PRESENTATION December 2020
Slide 2: BELUGA GROUP at a glance
BELUGA GROUP at a glance Diversified business with portfolio of own #1 Spirits producer in Russia and imported brands #4 In vodka globally One of the largest Growing scale of Importer in Russia export Focus on super- Portfolio of premium premium Beluga wines and spirits Vertically integrated operati
Slide 3: Beluga Group performance during COVID-19
Beluga Group performance during COVID-19 Volume growth in 9M 2020 Total shipment In-house brands shipment Import shipment 000, 9L cases 000, 9L cases 000, 9L cases +11% +8% +42% 11 572 10 095 1 477 9 342 10 383 1 041 9M2019 9M2020 9M2019 9M2020 9M2019 9M2020 Social responsibility The Group implement
Slide 4: Beluga turned from vodka producer into global diversified business
1 Over the recent years Beluga successfully turned from vodka producer onto global diversified and vertically integrated business 2010 Today Business line Products Business line Products Vodka Vodka Diversified spirits and wine 1 Brandy Other spirits 1 Brandy Other spirits producer focused on both d
Slide 5: Key investment highlights
Key investment highlights 1 Large and resilient spirits and wine market 2 Diversified business with vertically integrated operations 3 The leading spirits producer in Russia 4 Increasing footprint on the fast growing wine market Launch of own specialized retail chain to further increase level of 5 c
Slide 6: Large and resilient spirits and wine market
1 Large and resilient spirits and wine market Vodka is the most popular spirit across the world with Russia Despite economic slowdown, vodka consumption in Russia remains alongside USA being the key markets stable while market continue its growth in value terms Global spirits consumption Russian spi
Slide 7: Diversified business with high share of non-vodka products
2 Diversified business with high share of non-vodka products Key direction for business diversification BELUGA GROUP alcohol revenue evolution 2011 2019 Categories extension Acquisition of vineyards and winery in Russia, focus on premium Russian wines Expansion of imported brands portfolio Vodka
Slide 8: Diversified product portfolio: own brands
2 Diversified product portfolio: own brands Other spirits Vodka Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 8 Notes: Price range for every segment could differ based on product category
Slide 9: Diversified product portfolio: imported brands
2 Diversified product portfolio: imported brands Other spirits Brandy / Cognac / liquor Whisky Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 9 Notes: Price range for every segment could differ based on product category. Whiskys Cigars Barr
Slide 10: Vertically integrated operations
2 Vertically integrated operations 604 stores1 Premium spirits&wine stores with focus on development in Moscow, St. Petersburg and Far East Retail 117 imported brands in product portfolio 12 Federal logistic centers 50 suppliers from spread across Russia Import 18 countries 2,500 sales people 160K a
Slide 11: The leading spirits company in Russia
3 The leading spirits company in Russia Unmatched leadership in home country and further advance worldwide Russia #1 Distilled spirits producer #2 Russia Independent importer #1 Russia #1 Russia Brandy producer Flavored spirits producer1 Russia #4 Globally #1 Whiskey producer Vodka producer Globally
Slide 12: Unmatched leadership in Russia in major spirits categories
3 Unmatched leadership in Russia in major spirits categories Market share in 1H2020 by volume Top-5 vodka producers Top-5 flavored liquors producers Beluga Group 12,6% Beluga Group 16,7% Roust 12,0% OPVZ 11,2% Tatspirtprom 9,8% Sordis 7,5% ASG 8,7% Global Spirits 6,8% Global Spirits 6,4% Tatspirtpro
Slide 13: Beluga – flagship brand supplied all around the world
3 Beluga – flagship brand supplied all around the world… In Top-5 super-premium vodka brands globally #1 Super-premium vodka brand in Russia Market shares of super-premium vodka brands in globally2 54,1% #2 Super-premium vodka brand in travel retail globally #3 Super-premium vodka brand globally 14,
Slide 14: Increasing footprint on the fast-growing wine market
4 Increasing footprint on the fast-growing wine market Russia’s wine market Sales of imported wine brands: significant growth over last few years Exceeds vodka market by 33% in volume Share of imported Sales of imported wine by BELUGA GROUP in volume terms (‘000 9L terms 59% wine in total cases)
Slide 15: Development of own specialized retail chain Winelab
5 Development of own specialized retail chain to further increase level of controlled sales Winelab key facts Stores rollout dynamics Focus on 3 major regions: Moscow, 700 # of stores (end of 604 612 622 St. Petersburg and East Federal 570 600 period) 518 545 districts 468 Unique assortment with
Slide 16: Fast growth of Winelab's e-commerce. Omnichannel model
5 Fast growth of Winelab’s e-commerce. Omnichannel model. Launched in Aug’18, Omnichannel platform now: Share of e-commerce in total sales and in Moscow&SPB regions Winelab.ru web site Mobile App with > 600 off-line stores Presence in Social 5% with more than 340k more than 100k which support e- Med
Slide 17: Strong financial performance
6 Strong financial performance Net Revenue Gross profit & margin Key drivers of revenue RUB bn RUB bn growth in 1H2020: volume growth both +23% 26,3 +9% in-house and imported 21,5 9,2 brands; 8,4 increased revenue from Winelab retail chain; 39% 37% EBITDA increased by 23% in 1H2020 due to: 1H201
Slide 18: Segments financials
6 Segments financials Revenue split by segments1 Alcohol revenue1 Retail revenue1 As of 1H2020 RUB bn RUB bn +10% +53% Food 11,4 16,9 9% 15,4 Alcohol 7,4 36% 54% Retail 1H2019 1H2020 1H2019 1H2020 +[…]% – growth EBITDA split by segments Alcohol EBITDA2 Retail EBITDA2 As of 1H2020 RUB bn RUB bn +1% F
Slide 19: New initiatives aimed at further efficiency improvement
6 New initiatives in place aimed at further efficiency improvement Production platform Headcount optimization Расположение текста Расположение текста restructuring на цветной плашке Workforce reallocation through на цветной плашке Decrease Сноска in number of или примечание complete analyses
Slide 20: High level of corporate governance with independent Board members
7 High level of corporate governance with independent members on the Board of directors ALEXANDER MECHETIN NIKOLAY BELOKOPYTOV CEO Chairman of the BoD Founder of BELUGA GROUP CFO New members 4 on the Board of Directors SERGEY MOLCHANOV MIKHAIL KASHIRIN Chief Operating Officer Head of Business Develo
Slide 21: Shareholders structure, dividend policy
7 Shareholders structure, dividend policy Shareholders structure Dividend policy In September, the Board of Directors of BELUGA GROUP Management approved the company's new dividend policy, which sets 5% out a number of key principles: 1. The amount of dividend payments set as at least 25% of the com
Slide 22: Management team and revenue growth over 10 years
7 High level of corporate governance with independent members on the Board of directors Revenue has increased more than 3x over 10 years time frame 53,1 43,3 35,9 37,3 28,2 30,7 25,2 26,7 26,4 18,1 21,1 16,7 11,4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Key team members stay
Slide 23: Company strategy for further development
Company strategy for further development Retail and distribution Brand portfolio Continued development of the Diversified Расположение текста coverage of brand portfolio, distribution Расположение текста platform with a focus on на цветной плашке на цветной плашке all segments direct sales Снос
Slide 24: Appendix
Appendix 24
Slide 25: Debt Profile overview
Debt Profile overview Debt statistics summary RUB mln 30 Jun’19 30 Jun’20 Decrease in cost of borrowing from 8.9% p.a. in 2019 to 8.5% p.a. in 1H2020 Financial debt (loans and bonds) 16,084 19,703 The debt structure was improved through issuance of two 5 Cash and cash equivalents 812 3,017 bln., 5 y
Slide 26: Income statement
Income statement Rub mln 2018 2019 1H2019 1H2020 YoY, % Net revenue 43,411 53,074 21,450 26,283 23% Cost of sales (26,521) (33,547) (13,055) (17,097) 31% Gross profit 16,890 19,527 8,394 9,186 9% margin 38.9% 36,8% 39,1% 35,0% -4.1 pp G&A expenses (3,102) (3,042) (1,605) (1,553) -3% Distribution exp
Slide 27: Balance sheet
Balance sheet Rub mln 31 Dec’19 30 Jun’20 Rub mln 31 Dec’19 30 Jun’20 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Property, plant and equipment 13,885 13,382 Share capital 1,940 1,580 Goodwill 3,511 3,511 Treasury shares (669) (338) Intangible assets 10,017 10,
Slide 28: Cash Flow
Cash Flow Rub mln 2018 2019 1H2019 1H2020 Operating profit 3,273 4,392 1,734 2,167 Depreciation and amortization 978 2,103 969 1,158 Other non-cash transactions 28 229 32 153 Changes in working capital 466 (2,218) (2,834) (2,999) CF from operating activities 4,745 4,506 (99) 479 Interest paid (1,927
Slide 29: Key marketing activities
Key marketing activities Beluga global activations Sports events sponsorship Online Indoor activity On-trade 29
Slide 30: Non-core business
Non-core business Crops Poultry Meat processing Dairy = Crops/land operations are located in Saratov, the black earth belt region of Russia and managed by Russian Hectare ™ Over 110,000 ha of fertile land under control = 35% of land is cultivated ® Diversified crops enables the Company to optimize e