Slide 1: Earnings Presentation for the six months ended 30 June 2013
Earnings Presentation for the six months ended 30 June 2013 Speakers: Alexander Mechetin, CEO Nikolay Belokopytov, CFO 30 August, 2013
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 1H2013 financial results
Synergy, a leading distilled spirits producer in Russia reports 1H2013 financial results • Sales slightly declined 1% and reached 17.4 bln. rubles • Net Revenue decreased by 6% to 10.8 bln. Rubles • Gross Profit remains stable 4.6 bln. rubles • Gross profit margin improved from 40.4% to 42.7% • 2% i
Slide 4: Consolidated Revenue for 1H2013
Consolidated Revenue for 1H2013 Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) 14 000 8 979 -8% Y-o-Y 8 296 9 000 Alcohol (1) 12 000 11 393 -6% Y-o-Y 10 763 6 000 10 000 3 000 8 000 0 1H2012 1H2013 6 000 3 000 +2% Y-o-Y 4 000 2 466 Food (1) 2 414 2 000 2 000 0 1 000
Slide 5: Consolidated Gross Profit for 1H2013
Consolidated Gross Profit for 1H2013 Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) Gross Profit 3 886 0 Y-o-Y 4 000 3 895 Gross Margin Alcohol (1) 5 000 4 599 4 591 3 000 +0 % Y-o-Y 2 000 47% 43% 4 000 1 000 0 3 000 1H2012 1H2013 42.7% 641 705 40.4% +10%
Slide 6: Consolidated EBITDA and Net Profit for 1H2013
Consolidated EBITDA and Net Profit for 1H2013 EBITDA, million RUB G&A and distribution expenses , million RUB EBITDA General & Administrative expenses EBITDA Margin Distribution expenses 1 500 +7 Y-o-Y 1 383 1 293 4 000 3 153 3 348 1 000 3 000 12.9% +6% Y-o-Y 2 236 2 371 2 000 500 11.3% 1 000 +7% Y-
Slide 7: The Company continues to apply conservative debt management policy
The Company continues to apply conservative debt management policy Debt breakdown, million RUB Net debt (1) evolution, million RUB Long-term debt Short-term debt 6 677 6 626 6 161 5 567 5 919 6 023 4 963 5 307 4 967 4 849 4 324 4 161 1 194 1 243 1 663 1 370 YE2010 YE2011 YE2012 1H2013 YE2010 YE2011
Slide 8: Strategic directions widen our growth potential
Strategic directions widen our growth potential The leading spirits producer in Russia Strong international brand awareness of BELUGA Target vodka 1 2 Approach Organic growth and selective M&A Focus on operational efficiency Global export strategy • Widening and balancing portfolio of own brands • E
Slide 9: Diversified portfolio of national brands with focus on key brands
Diversified portfolio of national brands with focus on 3 key brands Brandy Whisky Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium Average retail RUR 380 RUR 500 RUR 200 RUR 235 RUR 265 RUR 275 RUR 340 RUR 420 RUR RUR RUR RUR price per 0.5 liter ~12US$ ~16US$ ~7US$ ~8US$ ~9US$ ~9.5
Slide 10: New product development of Russian Ice and Myagkov
1 Myagkov (Sub-Premium) Russian Ice (Sub-premium) Brand extension RESTYLING (1H2013) (Launch in Oct 2013) Limited Edition New product development of Russian Ice and Myagkov (Launch July 2013) 10
Slide 11: Synergy's distribution portfolio
1 Synergy’s distribution portfolio • Synergy distributes in Russia a comprehensive portfolio of premium international brands • Key partners: William Grant & Sons, Camus Scotch Whisky • Main categories: Scotch and Irish whiskies, French Cognac, Tequila, Gin, Brandy Cognac Armenian Brandy Irish Whisky
Slide 12: Recent updates: implementation of new distribution strategy
1 Implementation of new distribution strategy and dedicated sales team • 3 key brands: BELUGA, Myagkov and Belenkaya Domestic sales breakdown by geographical regions, % of total volume, 2011 • Trade Marketing is the main sales growth driver North-Western Federal district Urals Federal district Popul
Slide 13: 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 13