Slide 1: Earnings Presentation for the year ended 31 December 2014
Earnings Presentation for the year ended 31 December 2014 Speakers: Alexander Mechetin, CEO Nikolay Belokopytov, CFO 07 April, 2015
Slide 2: • changes in political, social, legal or economic conditions in Russia generally, or in
This presentation has been prepared by Synergy, Co. (the “Company“, or “Synergy”) and together with its subsidiaries. By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitations and notifications. This presentation is strictl
Slide 3: Synergy reports 2014 financial results
Synergy, a leading distilled spirits producer in Russia reports 2014 financial results • Sales grew 5% and reached 46.8 bln. rubles • Net Revenue increased by 7% to 28.1 bln. Rubles • Gross Profit raised by 7% to 12.0 bln. rubles • Gross profit margin remain stable at 42,7% 2014 vs • EBITDA declined
Slide 4: Consolidated Revenue for FY2014
Consolidated Revenue for FY2014 Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) +6% +7% 24 000 21 150 22 441 30 000 28 163 Alcohol (1) 26 378 16 000 20 000 8 000 0 2013 2014 10 000 +9% 5 722 6 000 5 228 Food (1) 0 3 000 2013 2014 0 Consolidated Revenue split, % 2013
Slide 5: Consolidated Gross Profit for FY2014
Consolidated Gross Profit for FY2014 Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) Gross Profit 12 000 10 779 10 253 +5% Gross Margin +7% 12 028 Alcohol (1) 8 000 12 000 11 280 48,4% 48,0% 4 000 8 000 0 2013 2014 42.8% 42.7% 1 500 1 369 4 000 +28% 1 066 F
Slide 6: Alcohol segment breakdown. Ongoing diversification.
Alcohol segment breakdown(1). Ongoing diversification. Alcohol segment revenue breakdown, million RUB Alcohol segment gross profit breakdown, million RUB -0,8% -0,7% 2013 10 000 9 570 9 496 20 000 18 458 18 336 2013 2014 2014 15 000 7 500 10 000 5 000 +52% 51.8% 51.8% 5 000 4 105 2 500 +88% 2 692 1
Slide 7: Consolidated EBITDA and Net Profit for FY2014
Consolidated EBITDA and Net Profit for FY2014 EBITDA, million RUB G&A and distribution expenses , million RUB General & Administrative expenses EBITDA Distribution expenses 4 000 10 000 9 800 3 674 -19% Y-o-Y EBITDA Margin 7 924 2 973 3 000 +26% 7 389 2 000 5 000 5 871 13.9% +10% 10.6% 1 000 +17% 2
Slide 8: The Company's debt structure
The Company’s debt structure Debt breakdown, million RUB Net debt (1) evolution, million RUB Long-term debt Short-term debt 8 708 6 626 6 679 5 567 5 544 4 963 8 226 5 804 4 324 5 919 6 212 4 849 3 164 1 243 1 663 875 YE2011 YE2012 YE2013 YE2014 YE2011 YE2012 YE2013 YE2014 As of 31 December, 2013 As
Slide 9: Appendices
BRANDS WITH SPIRIT APPENDICES
Slide 10: Company Strategy
COMPANY STRATEGY Become the dominant spirits company in Russia with a diversified portfolio of brands and products and best in class distribution platform Balanced portfolio of brands covering all price Strong distribution platform with focus on direct categories sales Focus on three key upper
Slide 11: Diversified portfolio of national brands with focus on key brands
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS WITH FOCUS ON 3 KEY BRANDS Well-established portfolio of brands with high awareness is serious competitive advantage on “dark market” for advertisement Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium portfolio Vodka Average retail price per
Slide 12: Developing portfolio of national brown spirits brands
DEVELOPING PORTFOLIO OF NATIONAL BROWN SPIRITS BRANDS Brandy Whisky Infusions Balsam and herbal liqueurs Brown spirits Low-middle Middle Sub-premium portfolio Average retail price per 0.5 liter from Jan 2013 RUR 400 RUR 460 RUR 500 RUR 500 RUR 250- 290 RUR 610 RUR 560 Increase in net price to distri
Slide 13: Synergy is #1 independent spirits distributor in Russia
SYNERGY IS #1 INDEPENDENT SPIRITS DISTRIBUTOR IN RUSSIA • Synergy distributes in Russia a comprehensive portfolio of premium international brands. Dedicated team (Synergy Import) – more than 400 people • Key partners: William Grant & Sons, Camus, Distell, Great Valley, Ron Barcelo Scotch Whisky • Ma
Slide 14: Focus on quality distribution
FOCUS ON QUALITY DISTRIBUTION Domestic sales breakdown by geographical regions, % of Group’s volume, 2013 • 3 key brands: BELUGA, Myagkov and North-Western Federal Urals Federal district Siberian Federal Far Eastern Federal Belenkaya district Population: 12 million district district Focus Focus • Hi
Slide 15: Synergy's export represents 6% of the spirits sales and it is steadily growing
SYNERGY’S EXPORT REPRESENTS 6% OF THE SPIRITS SALES AND IT IS STEADILY GROWING World Duty Free Abkhazia Mexico Moldova Andorra Mongolia BELUGA is exported in 70 countries + World Duty Free Armenia Montenegro Australia Netherlands Austria New Zealand Azerbaidjan Oman Bahrein Portugal Baltic Belarus P
Slide 16: Contacts
CONTACTS Address: 30/1 Obrucheva Str., bldg. 1 Moscow 117485 Russia Phone: +7 495 510 2695 +7 495 775 3050 Fax: +7 495 510 2697 +7 495 775 3052 E-mail: ir@sygroup.ru Contacts: Sergey Kuptsov, Head of Corporate finance Prokhor Malutin, PR director www.sygroup.ru 16