Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — 6M19 Earnings Presentation
38 slides from Kofola Ceskoslovensko As's earnings presentation, Aug 3, 2019
Slide 1: Kofola ČeskoSlovensko 6M19 Results Investor Presentation
W kofola GeskoSlavensko GMZ0I9 RESULTS Investor presentation 3 August 2019
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 Revenue 6M19: € 118.1 mil. EBITDA 6M19: € 16.5 mil. 8 production plants 1,947 employees countries for expansion CZK/EUR average FX rate: 25.684 2
Slide 3: Market positions in soft drinks and water
No. 2 player in the soft drinks market No. 1 player in the soft drinks market No. 1 water brand No. 1 player in the soft drinks market No. 2 water brand Source: AC Nielsen (value) - for market shares 3
Slide 4: Sale of Hoop Polska and segment structure
• On 18 March 2019, the Group has sold Hoop Polska. The result of Hoop Polska was therefore part of the Group until 18 March 2019. The consolidated statement of profit or loss is divided into Continuing and Discontinued operations. • 6M19 and 6M18 Continuing operations exclude Hoop Polska. • 6M19 an
Slide 5: Country Overview
o ´ o ´ o o o * Adjusted for one-offs 5
Slide 6: Reconciliation of reported and adjusted results
Reconciliation of reported and Reported One-offs Adjusted One-offs: adjusted results In Other operating income/(costs), net – Continuing operations: CZK mil. CZK mil. CZK mil. • Costs connected with the maintenance of closed Grodzisk Wielkopolski Revenue 3,032.3 - 3,032.3 plant of CZK 4.1 mil. (Fres
Slide 7: Results comparison 6M19 vs 6M18
Results comparison 6M19 6M18 Change Change Continuing operations: CZK mil. CZK mil. CZK mil. % • Total Group’s revenue increased by 3.4%. CzechoSlovakia segment Revenue 3,032.3 2,933.4 98.9 3.4% sales grew by 1.1% and the growth was mainly driven by sales of Kofola, Rajec, Royal Crown Cola and Semte
Slide 8: Key figures 2Q19
o ´ o ´ o o o * Adjusted for one-offs 8
Slide 9: Results comparison 2Q19 vs 2Q18
Results comparison 2Q19 2Q18 Change Change Continuing operations: CZK mil. CZK mil. CZK mil. % • Revenues in the second quarter were significantly influenced by Revenue 1,741.1 1,733.7 7.4 0.4% very cold and rainy May 2019. Despite this fact, total Group’s revenue increased by CZK 7.4 mil. (0.4%) wh
Slide 10: LTM EBITDA and EBITDA margin
(CZK mil.) 18,1% 17,6% 17,0% 17,0% 16,5% 16,2% 5,883 5,969 6,088 6,157 6,249 6,256 971 1,052 1,100 1,047 1,060 1,014 16.5% 17.6% 18.1% 17.0% 17.0% 16.2% 1,100 1,052 1,047 1,060 1,014 Decrease of LTM EBITDA as at 30.6.19 in comparison to 971 31.3.19 is mainly a result of the coldest and rainiest weat
Slide 11: Slide 11
Slide 12: CzechoSlovakia adjusted EBITDA and margin
Main drivers: Adjusted EBITDA & EBITDA margin • The coldest and rainiest weather in May 2019 for the last decade. • Increased logistic, payroll, packaging and (CZK mil.) repair and maintenance costs, partially compensated by savings from lower sugar 600 25% price. 500 19,3% • Increased proportion of
Slide 13: Means of air temperature
18 133 13965% 13937% 13909% 13881% 13853% 13825% 13797% 13769% 13742% 13714% 13686% 13658% 13630% 13602% 13574% 13546% 13518% 13490% 13462% 13434% 13406% 13378% 13351% 13323% 13295% 13267% 13239% 13211% 13183% 13155% 13127% 13099% 13071% 13043% 13015% 12987% 12960% 12932% 12904% 12876% 12848% 12820%
Slide 14: Kofola sales on Retail & HoReCa CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK mil.) CzechoSlovak market 3,000 60% 47,6% 48,6% 50% 2,000 40% Gross Profit 811 853 Margin 30% 1,000 20% HoReCa 1,284 1,265 10% Retail 0 0% 6M18 6M19 14
Slide 15: Retail & HoReCa sales in Adriatic market
Retail & HoReCa sales in Adriatic market (CZK mil.) 900 50% 800 40,0% 40,4% 40% 700 600 Gross Profit 500 30% Margin 263 240 400 20% 300 HoReCa 200 10% 308 326 100 Retail 0 0% 6M18 6M19 15
Slide 16: UGO sales and number of bars
UGO sales + UGO franchise sales* Highest number of bars in CEE (CZK mil.) 84 81 81 318 333 78 73 89 99 61 50 42 49 46 229 234 20 12 36 32 35 6M18 6M19 2012 2013 2014 2015 2016 2017 6M18 2018 6M19 Own Franchises * Not included in the Group´s results 16
Slide 17: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 18: Sales growth by segment
• 3.4% growth of sales in Group, 2.4% without effect of LEROS acquisition. • 1.1% growth of sales in CzechoSlovakia, significant effect of the coldest and rainiest weather in May 2019 for the last decade. • 7.2% growth of sales in Adriatic. Double digit growth of Studenac. Weather effect compensated
Slide 19: Sales by country
(CZK mil.) 6M18 6M19 1 574 1 518 811 809 365 382 148 166 62 65 31 34 Czech Republic Slovakia Slovenia Croatia Poland** Other * Continuing operations ** Sales in Poland mainly from Premium Rosa. 19
Slide 20: Adjusted EBITDA development
• The Group’s adjusted EBITDA decreased by CZK 33.3 mil. (7.3%) in comparison with 6M18. • The adjusted EBITDA in the CzechoSlovakia decreased by CZK 36.9 mil. (9.1%). Decrease influenced mainly by logistics costs, payroll costs, repair and maintenance expenses and decreased revenues in May 2019 due
Slide 21: Net debt and net debt/adjusted LTM EBITDA
(CZK mil.) Net debt Net debt/adjusted LTM EBITDA 2,9 2,6 2,923 2,741 6M18 6M19 Increase of Net debt is mainly caused by new IFRS 16 (capitalization of leases) and capital expenditures. 21
Slide 22: Operating cash flow, capex and working capital
Working • Decreased operating cash flow in 6M19 is mainly a result of lower net cash flow from operating result before tax and Operating CF Capex Capital* higher payments of advances for income tax. 600 • Increase in CAPEX is mainly a result of the investment in 500 the new production line (Slovakia
Slide 23: Soft drink market data by country
210 960 213 657 199 119 204 458 94 937 94 274 67 551 70 515 105 157 99 075 49 939 52 079 64 736 71 490 72 928 78 844 38 098 40 284 27 446 28 876 32 817 42 380 20 158 21 382 275 696 285 147 272 047 283 302 133 035 134 558 94 997 99 391 137 974 141 455 70 097 73 461 141 721 150 052 149 189 151 137 71
Slide 24: Kofola INFO
Kotola INFO an ae
Slide 25: Company history and acquisitions
Acquisition of Vinea Take over of Titbit Acquisition of brand in Slovakia (no. 1 salad producer (most popular CSD in Czechia) in Slovakia) Acquisition 2019 of UGO group (fresh juices) 2017-2018 HoReCa started Sale of Hoop Polska in Czechia & Slovakia 2015-2016 Expansion into a new Establishment of s
Slide 26: Kofola facts
• Kofola is among the most admired companies in the Czech Republic according to the Czech Top 100 Awards. • Kofola is a herbal drink made from 14 herbs. • Kofola has 30% less sugar then other cola drinks. • Kofola contains no acid phosphoric. • Water makes 30% of our product portfolio. • We use HPP*
Slide 27: Complete portfolio of strong brands
The complete porttolio of strong brands 2s §LEROS GID OIC ME x 1: QA ee ADASTORN A Studenac =D studena. Ora istribute assert ) t icense a GAD cy HA g aaa a evian. BADOIT.
Slide 28: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola´s HoReCa sales in total sales 6M19** 41% 40% 31% 30% 26% 20% 20% 10% 40% 41% 0% 59% 60% HoReCa Retail * Based on Data Servis and Canadean (volume terms) ** share within CzechoSlovakia business segment 28
Slide 29: Kofola retail market share (value)
Kofola Retail market share (VALUE) 35% 35% 30% 30% Kofola gain vs. Competitor 1 +0.2 p.p. 25% Kofola loss vs. Competitor 1 25% 20% -2.5 p.p. 20% 15% 15% 10% 10% 5% 5% 2015 2016 2017 2018 6M19 2015 2016 2017 2018 6M19 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data Servis,
Slide 30: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +8.7 p.p. Kofola gain vs. Competitor 1 30% +14.7 p.p. 30% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 2017 2018 6M19 2012 2013 2014 2015 2016 2017 2018 6M19 Kofola Competitor 1 Competitor 2 Based on AC Nielsen and Da
Slide 31: Current ownership structure
Current ownership structure Free float* 27.8% AETOS a.s. 67.2% Kofola Group via RADENSKA d.o.o. 5.0% * 6 million shares 31
Slide 32: Aim of dividend distribution of at least 60% of 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 Y16 Y17 Y18 Y16 * Y16 Y17 Y18 until 2020, subject to sufficient distributable * advance dividend ** suggested dividend profits. 500 1 400 310 1 300 400 308
Slide 33: Board of Directors
Jannis Samaras René Musila Daniel Buryš Chairman of the BoD, CEO, founder Vice-Chair of the BoD, COO Vice-Chair of the BoD, Country In Kofola since 1993 manager CzechoSlovakia 67.2% stake in Kofola (via AETOS) In Kofola since 2010 Jiří Vlasák Pavel Jakubík Marián Šefčovič Member of the BoD Member of
Slide 34: Appendix
ae ae
Slide 35: Adjusted consolidated financial results
Adjusted consolidated financial results 6M19** 6M18** 2018* 2017* 2016* 2015* 2014* CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 Revenue 3,032.3 2,933.4 7,118.8 6,963.3 6,999.0 7,190.8 6,275.4 Cost of sales (1,621.5) (1,552.1) (4,053.4) (4,134.1) (4,211.6) (4,3
Slide 36: Consolidated statement of financial position and cash flows
Consolidated statement of financial position 30.6.2019 30.6.2018 31.12.2018 31.12.2017 31.12.2016 31.12.2015* 31.12.2014 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 CZK´000 000 Non-current assets 4,318.8 4,903.8 4,348.8 4,786.2 4,915.9 5,095.7 4,172.0 Current assets 2,360
Slide 37: 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 37
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. — 6M19 Earnings Presentation on 6ix