Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — ATHEX Mid Cap Conference 2019
25 slides from Kri-kri Milk Industry's conference presentation, May 2019
Slide 1: Company Presentation May 2019
COMPANY PRESENTATION May 2019
Slide 2: Table of Contents
Table of Contents • KRI KRI at a glance • Strategic Choices • Facilities, CapEx, Location • Hints for Financial Results • Share information | May 2019 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance 94 Sales per business unit (€m) Basic Figures 79 25 68 67 67 63 22 58 23 21 20 Ice Cream 23 CHANGE 23 Yogurt FY 2018 FROM 2017 69 57 45 40 45 47 35 Turnover € 94 m. +19% 2012 2013 2014 2015 2016 2017 2018 Exports € 34 m. +42% EBITDA (€’000s.) & EBITDA Margin Financial Position In
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Growth ✓ Performance during Greek crisis -24% 250 239 226 GDP(€bn) 205 190 184 185 185 185 187 191 34,2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 24,1 Kri Kri Turnover & Profit before Taxes Performance (€m) +137% +307% 54,5 94,2 16,0 29,1 12,0
Slide 5: Our people... Make a Difference!
KRI KRI at a glance Our people... Make a Difference! An experienced and effective management team Number of employees Employee Satisfaction Survey 2018 380 • 96% «I feel that the Administration is capable of running the company» 344 288 301 309 • 95% «I feel like I'm actually contributing to the com
Slide 6: Basic Segments
KRI KRI at a glance Basic Segments (€m) Yogurt Greece Ice Cream Greece Sales: 39,1 +8,3% Sales: 20,7 +9,8% Operating Earnings: 6,3 +3,1% Operating Earnings: 3,7 +41,7% Yogurt Exports Ice Cream Exports Sales: 29,8 +39,3% Sales: 4,4 +60,3% Operating Earnings: 6,6 +82,5% Operating Earnings: 0,4 +1.144,
Slide 7: Strategic Choices / Yogurt Greece
2018: 39,1m.€ Strategic Choices/ Yogurt Greece ΥoΥ +8,3% Market size in retail Market share Market Share per Supplier prices per Category (%,€m) (Share >10%) KRI KRI 15,2 +1.0% yoy 6% 14,7 11% 11 Leader 20,8 Strained 21,8 21 Set 9% 11,1 16 Competitor 2 183 €m 100 55% Fruit 15,2 16 Functional 10,2 8%
Slide 8: Strategic Choices / Yogurt Greece: Branded products strategy
2018: 39,1m.€ Strategic Choices/ Yogurt Greece ΥoΥ +8,3% Branded products strategy 6% 11% 11 • Aiming for the top positions • Focus on Strained Category Strained 21 9% 16 Set 100 55% Fruit 16 8% Functional 19 Market Share of Kri Kri in Volume 2013-2018 Kids 11% Infant Year Market Share Improving qua
Slide 9: Strategic Choices / Yogurt Greece: Innovation
2018: 39,1m.€ Strategic Choices/ Yogurt Greece ΥoΥ +8,3% Branded products strategy Innovation Leader in kids yogurt category Entering the Infant Yogurt Category ✓ High protein and super foods (Market Share 38,6% in Volume) New Product: ✓ Perfect snack for people who exercise Kri Kri Babies-My first
Slide 10: Strategic Choices / Yogurt Greece: Private label strategy
2018: 39,1m.€ Strategic Choices/ Yogurt Greece ΥoΥ +8,3% Private label products strategy KRI KRI produces 70-80% of all Private Indicative Customers in Greece Total Productive Share >25% Label yogurt products in Greece Kri-Kri Branded 15% Kri-Kri Priv.Label Kri 15,2 11% Private Label 14,3 1 in 4 Gre
Slide 11: Strategic Choices / Yogurt Exports
2018: 29,8m.€ Strategic Choices/ Yogurt Exports ΥoΥ +39,3% United Kingdom Italy Germany 176 279 Rest Yogurt 328 Greek/Greek 1.186 style Yogurt 1.340 1.967 £m. €m. €m. Total Yogurt: 1.514(£m) Total Yogurt : 1.600(€m) Total Yogurt : 2.246(€m) Source: Nielsen, IRI (Dec 2018) | May 2019 | 11
Slide 12: Yogurt Exports: Private label strategy and opportunities
2018: 29,8m.€ Strategic Choices/ Yogurt Exports ΥoΥ +39,3% Private label products strategy Opportunities • Private label products capture a big share of • Expanding PL products portfolio consumers wallet in Europe. • Placing branded products to existing customers • It offers a strategic way to enter
Slide 13: Indicative Customers Abroad
Indicative Customers Abroad UK: ITALY: GERMANY: BELGIUM: NETHERLANDS: | May 2019 | 13
Slide 14: Strategic Choices / Ice cream Greece
2018: 20,7m.€ Strategic Choices/ Ice cream Greece ΥoΥ +9,8% 2nd brand in the Greek ice cream market Market size in retail prices Market Share per Brand 15,4 +0.6% yoy Leading Brand 20,5 220 €m Brand 3 13,0 Brand 4 9,6 Private Label 25,2 Volume Market trend +2.5% Source: Nielsen (Dec 2018) | May 2019
Slide 15: Ice cream Greece: Branded products strategy
2018: 20,7m.€ Strategic Choices/ Ice cream Greece ΥoΥ +9,8% Branded products strategy ✓ The only Greek ice cream company with nationwide sales network ✓ Expand distribution network with 1.000 extra points (15.000 points of sale from 14.000 at 2017) ✓ Increased market share ✓ Maintain high profitabil
Slide 16: Strategic Choices / Ice cream Exports
2018: 4,4m.€ Strategic Choices/ Ice cream Exports ΥoΥ +60,3% Looking for opportunities for Private Global Market size $ 58 bn Label products in European Market European Market Size $ 18 bn Target Won a contract with European market Size Private label $ 10 bn ALDI-UK market Source: Statista (2018), C
Slide 17: Risk Management Strategies
Risk Management Strategies Risks Strategies Sudden changes in raw material prices Examining ways of hedging Competition threats ‘Barrier to entry’ investments Improving competitiveness Lowering growth of Greek/Greek style yogurt in European markets Exploring Diversification opportunities Consolidati
Slide 18: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Ε=25.000m² • Capability of further development in land Ε= 72.000 m² Three-year Investment Plan (2019-2021) 4 Investments totaling €18m. Prod.Capacity Increase have been included in the Modernization 5 12 Total:€27mil investment law to su
Slide 19: Hints for FY 2018 Financial Results
Hints for FY 2018 Financial Results Improved Ebitda Margin +2,6% Improved cash flow from Operating activities ➢ Raw materials: +2% ➢ Improved working capital ➢ Sales mix: +0,6% ➢ Lower taxes paid -2.641k€ Increased Distribution Cost +3.400k ➢ Advertisement +1.153k ➢ Transportation +752k ➢ Bad dept p
Slide 20: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +212% 2012 2013 2014* 2015 2016 2017 2018 (as per 3/5/2019) Total stockholder 6,00 3,9% 34,4% -8,0% 5,9% 6,2% 59,0% 44,7% return 5,50 5,00 Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 3,0% 3,5% 4,50 Share price increase 0% 31,4% -8,0%
Slide 21: KRI KRI Share Information
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 74% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Legal Entities : 16% Serres PC 62125 Ticker symbols: Individuals : 10% Greece Athens Stock Exchange
Slide 22: Investment Proposal Summary
Investment Proposal Summary Investment ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. ✓ High returns and dividend payments to shareholders. Management ✓ An experienced and loyal management team that has led KRI KRI from a local company to a major
Slide 23: Appendix 1: Key Financial figures
KRI KRI / Αppendix 1 Key Financial figures IFRS - €m 2018 2017 2016 Sales 94.23 79,2 66,6 Margins 2018 2017 2016 Gross Profit 36.66 28,4 25,7 Gross Profit 38.9% 35,9% 38,7% EBITDA 17.29 12,4 11,0 EBITDA 18.3% 15,7% 16,5% EBIT 14.48 9,9 8,9 EBIT 15.4% 12,5% 13,3% Profit before taxes 14.24 9,9 8,2 Pro
Slide 24: Appendix 2: FY 2018 Operating result per Segment
KRI KRI / Αppendix 2 FY 2018 - Operating result per Segment Calculations – Reconciliation with P&L Operating Change IFRS - €m Sales Margins Result (bps) IFRS - €m 2018 Yogurt Total 68,8 12,9 18,8% +183 Operating Result 16,8 Greece 39,1 6,3 16,1% -81 Plus / (Minus) Exports 29,8 6,6 22,3% +528 Adminis
Slide 25: Legal Disclaimer
Legal Disclaimer This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information contained herein also includes forward- looking stateme
Kri-kri Milk Industry — ATHEX Mid Cap Conference 2019 on 6ix