Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — Q1 2017 Earnings Presentation
38 slides from Kofola Ceskoslovensko As's earnings presentation, May 2017
Slide 1: 3M17 Results Investor Presentation
W kofola GeskoSlavensko SMZ0I7 RESULTS Investor presentation | May 20l?
Slide 2: One of the most significant producers of non-alcoholic beverages in CEE
One of the most significant producers of non-alcoholic beverages in Central and Eastern Europe Revenues 3M17: € 50M EBITDA 3M17: € 3M 7 production plants 2,100 employees countries for expansion EUR/CZK ex. rate: 27.02
Slide 3: Market positions and brand rankings
No. 2 player in the soft drinks market No. 2 syrup brand Kofola and Jupí the most trustful brands in No. 3 cola brand 2016 survey Leading private label soft 3rd most admired company in 2016 survey drinks producer No. 1 player in the soft No. 1 Player in the soft drinks market drinks market in Sloven
Slide 4: Kofola Group Key Highlights
Kotola Group Key Highlights* Profit for the period (€2« mil) a Net debt / EBITDA “68 ame 3ML7 EBITDA margin (%) 3M17 59 3M16 10,5 * adjusted for one-offs
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. Revenue 1 343.5 - 1 343.5 • Costs connected with maintenance of Bielsk Cost of sales (875.4) 2.1 (873.3) production hall – CZK 2.1 mil. 468.1 2.1 470.2 Gross profit (440.8) - (440.8) • Cos
Slide 6: Results comparison 3M17 vs 3M16
Results comparison 3M17 3M16 Change Change •Revenue decrease attributable to Poland and Czechia (syrups and Kofola), partly offset by growth of sales in Adriatic region and CZK mil. CZK mil. CZK mil. % Slovakia (Rauch, Semtex, Kofola) and increased sales in Ugo. Revenue 1 343.5 1 466.3 (122.8) (8.4%
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Slide 8: Kofola sales on CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 1,200 50% 44% 42% 45% 1,000 40% 35% Gross Profit 800 298 30% Margin 331 600 25% 20% HoReCa 400 15% 597 543 10% 200 5% Retail 0 0% 3M16 3M17
Slide 9: Adjusted EBITDA & EBITDA margin
3M16 EBITDA margin reflects high Adjusted EBITDA & EBITDA margin operational efficiency due to high market share and share of HoReCa business. 3M17 influenced by lower (CZK m) sales due to shift of Easter, 200 20% increased prices of sugar and increased selling and marketing 15% 16% costs which will
Slide 10: Mr. Ugo sales and number of bars
Mr. Ugo sales + Ugo franchise sales Substantial increase in number of bars (CZK m) 73 75 61 96 50 38 83 28 26 20 68 12 37 57 3M16 3M17 2012 2013 2014 2015 2016 3M17 Own Franchises
Slide 11: Excellent growth of Ugo bottles sales
Excellent growth of Ugo bottles sales 3M16 3M17
Slide 12: Kofola sales on Polish Retail & Private label market
Kofola sales on Polish (CZK m) Retail & Private label market 25% 600 20% 500 20% 18% Gross Profit 400 15% Margin 300 218 10% Private 200 139 label 5% 100 188 140 Retail 0 0% 3M16 3M17
Slide 13: Adjusted EBITDA & EBITDA margin Poland
Market investments should be Adjusted EBITDA & EBITDA margin financed by further cost reduction resulting from business optimization (CZK m) 50 10% 40 8% 30 6% 5% Share in group’s 20 4% EBITDA: 8.7% 20 3% (3M16: 13.1%) 10 2% 7 0 0% 3M16 3M17
Slide 14: New management appointed in Poland
New management appointed Production efficiency optimization with focus on own brands, supported by private labels Development/acquisitions of additional 2–3 brands Lower sales but standard profitability (10%) Discontinuation of production in Bielsk Podlaski with concentration of production in two re
Slide 15: Retail & HoReCa sales in Adriatic market
Retail & HoReCa sales • Still room to grow in (CZK m) in Adriatic market HoReCa with full soft drink portfolio 200 39% 40% 34% Gross Profit 150 30% 37 Margin 28 100 20% HoReCa 109 122 50 10% Retail 0 0% 3M16 3M17
Slide 16: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 17: Revenue
(CZK m) Total CZ+SK 1,466 1,344 895 874 3M16 3M17 3M17 – Revenue decrease attributable to Poland and Czechia, partly offset by growth of sales in Adriatic region and Slovakia and increased sales in Ugo.
Slide 18: Revenue by country
(CZK m) 3M16 3M17 Czech Republic Revenues decreased by 4.3%, also due to shift of Easter to 2Q17 which had effect on lower sales of Kofola. Syrup sales 592 lower when compared to 3M16 but exceeding budget, this 566 category is sensitive to increased purchasing power of customers. UGO increased reven
Slide 19: Adjusted EBITDA
(CZK m) Total CZ+SK 154 131 79 74 3M16 3M17 The net decrease of EBITDA is caused by decreased performance in Poland and CzechoSlovakia which was not fully compensated by increased performance in Slovenia. The EBITDA achieved by the Group in Poland decreased as a result of decreased sales mainly of p
Slide 20: Net debt and Net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 2,0 1,6 1,5 1,988 1,703 1,689 3M16 2016 3M17 Net debt in 3M17 vs. 2016 influenced by decreasing cash (1Q17 is off-season) exceeding decrease of debt. Decrease of cash in 3M17 vs. 2016 due to capex and working capital changes.
Slide 21: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital •Operating CF on the same level as in 3M16, 214 thanks to positive working capital cash flow effect (vs. 3M16) despite decreased profit. 103 •Decrease of Capex – comparative figure influenced by the payment of the new production hall in Poland (CZK 100 mil.) •Incre
Slide 22: Updates on Adriatic and Ugo acquisition
Ti • Continuing integration (sales team, SAP, • The biggest salad producer in Czechia, production processes). expected effect of CZK 50 mil. on 2017 • Decrease of revenues because customers did revenues. a frontloading before the takeover and timing • Production of approx. 5000 salads daily. of the
Slide 23: Kofola INFO
Kotola INFO an ae
Slide 24: Company history and acquisitions
Acquisition of Studenac – no. Acquisition 2 mineral water brand of Ugo group in Croatia Acquisition of Hoop (fresh juices) (Hoop and Paola 2016 brands) 2015 HoReCa started in 2012 Czechia & Slovakia 2008 Acquisition Establishment of of Radenska, the Kofola brand Acquisition of Vinea No. 1 water 2004
Slide 25: Portfolio and sales structure
100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%
Slide 26: The complete portfolio of strong brands
The complete portfolio of strong brands arctic” GRODZISKA WI Studenac Ciera) studena. viNcewn KA, Aaa ne icense evian BADOIT.
Slide 27: Market positions by category and country
Legend: Strong second position in Czech market and leading position in Leader Viceleader PL CZ SK SI Slovak market. Leading position in carbonated beverages segment in Slovakia was Cola beverages 3 2 1 3 achieved due to acquisition and further development of Vinea brand. Carbonated beverages - 3 1 2
Slide 28: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 3M17 40% 35% 35% 31% 30% 36% 25% 23% 21% 42% 20% 58% 64% 15% 10% 5% 0% 2012 2013 2014 2015 2016 3M17 HoReCa Retail** * based on Data Servis and Canadean (volume terms); ** including private label
Slide 29: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +4.2 %p. +6.2 %p. 20% 20% 15% 17% 18% 15% 15% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 3M17 2012 2013 2014 2015 2016 3M17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data
Slide 30: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +2.8 %p. Kofola gain vs. Competitor 1 35% 30% +6.4 %p. 30% 31% 20% 23% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 3M17 2012 2013 2014 2015 2016 3M17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen
Slide 31: Management board
Jannis Samaras Daniel Buryš Roman Zúrik Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Commercial Director Board member, 50.78% stake in Kofola In Kofola since 2010 In Kofola since 2011 Country manager Poland In Kofola since 2010 René Musila Tomáš Jendřejek Marián Šefčovič Bo
Slide 32: Shareholder structure
Others 6.72% KSM Investment S.A. 50.78% CED Group S.a.r.l. 37.28% The Founders Group Tomáš Jendřejek René Musila 2.61% 2.61%
Slide 33: Share price information 3M17
Share price information 3M17 (CZK) KOFOLA ČS PX (CZK) 12M average share price 408 CZK 600 1 200 490 12M average daily transaction activity 1 531 pcs. 1 150 500 400 1 100 1 050 400 1 000 938 300 950 1 008 900 200 850 800 100 750 0 700
Slide 34: Appendix
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Slide 35: Adjusted consolidated financial results
Adjusted consolidated financial results 3M2017** 3M2016** 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 1,343,528 1,466,304 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (873,303) (949,944) (4,211,593) (4,352,102) (3,881 359) (4,300,767) Gross profit 470,225
Slide 36: Consolidated statement of financial position
Consolidated statement of financial position 31.3.2017*** 31.3.2016*** 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4 930 977 5 072 457 4,915,863 7,190,838 6,275,391 6,287,894 Current assets 2 922 661 3 119 454 3,104,020 3,395,290 1
Slide 37: Kofola ČeskoSlovensko a.s. 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
Slide 38: 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. — Q1 2017 Earnings Presentation on 6ix