Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — Non-Deal Roadshow (September 2018)
28 slides from Kri-kri Milk Industry's roadshow presentation, September 2018
Slide 1: Kri-Kri Milk Industry S.A. September 2018
Kri-Kri Milk Industry S.A. September 2018
Slide 2: Table of Contents
Table of Contents 1 KRI KRI at a glance 2 Segments Strategic Choices 3 Facilities, CapEx, Location 4 Financials 5 Share Information | Sep 2018 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance Basic Figures Investment FY 2017 ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. Turnover EBITDA ✓ High returns and dividend payments to shareholders. €79m €13m Management ✓ An experienced and loyal management team that has led
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Increase ✓ Performance during Greek crisis -25% 250 239 Exports €m per year 226 Greek GDP (€bn) 205 190 185 185 185 187 184 24.1 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Kri Kri Sales & Profit before Taxes Performance (€m) 16.0 +99% +183% 11.4 11.6
Slide 5: KRI KRI at a glance: Awards
KRI KRI at a glance Awards «Employment Growth» Best Company’s award for MID – SMALL CAP 2017 Innovative product Super Spoon (ice cream) - ANUGA 2017 • One of the most profitable companies • Staff Growth • Leading Position in the Industry Gold & Silver award 2017 for • High Credit Standing innovative
Slide 6: KRI KRI at a glance: Human Resources
KRI KRI at a glance Human Resources • An experienced and effective management team Employee Satisfaction Survey 2017 • 94% «I feel proud of all we have succeeded» • 350 Employees • 95% «I feel like I offer to the company» • 91% «I would like to continue to work here for a long time» • 3.000 training
Slide 7: Basic Segments
Kri Kri at a glance Basic Segments (Sales in € m) Yogurt Greece Ice Cream Greece FY17: 36.1 1H18: 20.3 FY17: 18.9 1H18: 13.6 Δ: +8.4% Δ: +16.3% Δ: +8.2% Δ: +15.2% Yogurt Exports Ice Cream Exports FY17: 21.4 1H18: 14.1 FY17: 2.7 1H18: 2.9 Δ: +60.4% Δ: +37.2% Δ: +15.3% Δ: +109.8% Source: Company data
Slide 8: Strategic Choices – Yogurt Greece
Strategic Choices – Yogurt Greece Market Outlook * 1 in 4 Greeks consume yogurt produced by Kri Kri • Market size in retail prices • Market share per Category (%,€m) • Market Share per Supplier, (Share >10%) {FY 2017} {FY 2017} {YTD Jul 2018} 15.2 +1.1% yoy KRI KRI 7% 14.6 11% Strained 20.8 12 Leade
Slide 9: Yogurt Greece: Branded products strategy
Strategic Choices – Yogurt Greece Branded products strategy • 2nd place in the Greek Yogurt market Improving the quality of products with continuous investments • Focus on Strained Category Brand re-launch in strained yogurt category 6% “my authentic Greek yogurt” 11% Strained 6 12 Set • Impact of r
Slide 10: Yogurt Greece: Branded products strategy, innovation
Strategic Choices – Yogurt Greece Branded products strategy • Innovation • Leader in kids yogurt (market share 39%) ✓ Strained Yogurt 0% ✓ High Protein ✓ Super fruits & cereals ✓ Perfect snack for people who exercise 6% 11% 6% 11% Strained Strained 6 ✓ Responding to international nutrition 12 6 Set
Slide 11: Yogurt Greece: Private label products strategy
Strategic Choices – Yogurt Greece Private label products strategy ✓ Maintaining around 70-80% of total Leading to considerable Indicative Customers in Greece yogurt private label Production Economies of Scale ΚRΙ ΚRΙ | Sep 2018 | 11
Slide 12: Yogurt Exports: Market Outlook
Strategic Choices – Yogurt Exports Market Outlook United Kingdom (£m) Italy (€m) Basic European markets Total Yogurt: 1,487 +2% Total Yogurt: 1,580 -3% size in retail prices Greek/Greek style Greek/Greek style (strained): 324 +7% (strained): 173 -4% Germany (€m) Netherlands (€m) {2016} Total Yogurt:
Slide 13: Yogurt Exports: Private label products strategy
Strategic Choices – Yogurt Exports Private label products strategy • Private label for effective and efficient Indicative private label Customers in Europe market penetration. • It offers a strategic way to enter markets UK of interest with lower entry cost and build relationships Italy Belgium | Se
Slide 14: Yogurt Exports: Strategy per Country
Strategic Choices – Yogurt Exports Strategy per Country UK Central Europe • Placing branded products to existing customers • Brand re-launch in strained yogurt category • Expanding PL products portfolio • Maintaining position in Germany • Increasing PL products sales in Belgium H1 results: >35% Grow
Slide 15: Ice Cream Greece: Market Outlook
Strategic Choices – Ice Cream Greece Market Outlook *2nd brand in the Greek ice cream market • Market size in retail • Market Share per Brand prices {2017} Kri Kri 15,5 +0.5% yoy Leading Brand 20,7 Brand 3 13,0 220 €m Brand 4 9,6 Private Label 25,3 Rest 15,9 Volume Market trend +5.3% Source: Nielsen
Slide 16: Ice Cream Greece: Branded products strategy
Strategic Choices – Ice Cream Greece Branded products strategy ✓ Expand distribution network (currently 15,000 points of sale) ✓ Increase market share ✓ Maintain high profitability ✓ Private label products for Greek S/M ✓ KRI KRI SA represents Greece in the World Ice Cream Producers Organization IIC
Slide 17: Ice cream Exports
Strategic Choices – Ice cream Exports • Global Market size in Increasing • Europe is around 35% of Global market and 2017 trend reaching PL products are around 50% of European Target Market $69b in 2022 market $10 billion $ 57 PL Europe billion Source: Statista (2017), Company estimations | Sep 2018
Slide 18: Ice cream Exports: Private label and branded strategy
Strategic Choices – Ice cream Exports Private label products strategy Branded products strategy • Distribution Network building in Countries with proximity: • Looking for opportunities for Private Label products in • Cyprus European Market • Albania • FYROM ✓ Won a contract with ALDI-UK • Iraq Total
Slide 19: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Ε=25.000m² The amount of planned CapEx is eligible for 35% state subsidy as • Capability of further income tax deduction. development in land Ε= 68.000 m² Planned CapEx for 2017-2018 (€m) Capacity Utilization Before After Investment Inve
Slide 20: Raw milk supply
Raw milk supply Raw milk production map ✓ Sufficiency in Milk supply ✓ Proximity to farms allows us to deliver products with daily fresh milk increasing their quality ✓ 2-year program in collaboration with the Aristotle University of Thessaloniki ✓ Participation of more than 50 farmers Central Maced
Slide 21: Risks & Strategies
Risks & Strategies Risks Strategies Sudden changes in raw material prices Examining ways of hedging ‘Barrier to entry’ investments Competition threats Improving competitiveness Lowering growth of Greek/Greek style yogurt in European markets Exploring Diversification opportunities Consolidation of re
Slide 22: H1 2018 – Financial Results
H1 2018 – Financial Results Financial Performance IFRS - €m H1 2018 H1 2017 YoY% Sales 51.0 41.2 +24% Margins H1 2018 H1 2017 Change Gross Profit 21.4 16.3 +32% Gross Profit 42.0% 39.5% +254bps EBITDA* 12.0 8.5 +43% EBITDA* 23.5% 20.7% +280bps EBIT 10.3 6.9 +48% EBIT 20.2% 16.9% +333bps Profit befor
Slide 23: Key Financials per year
Key Financials per year ✓ Sales per business unit (€m) Operating cash 79 Liquidity Gearing Net Debt (€m) flows (€m) 68 67 67 2017 8.0 2.3 17% 0.3 63 22 58 23 21 20 2016 8.5 2.8 17% 2.2 23 Financial 23 Ice Cream 2015 7.9 1.8 21% 5.7 Yogurt Position 47 57 Indicators 2014 1.6 1.5 16% 6.1 45 40 45 35 20
Slide 24: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +95% 2012 2013 2014* 2015 2016 2017 08.2018 (as per 31/8/2018) Total stockholder return 3.9% 34.4% -8.0% 5.9% 6.2% 59.0% 33.2% 5,00 4,50 Dividend yield 3.9% 3.0% 0.0% 3.2% 4.7% 3.0% 2.9% 4,00 Share price increase 0% 31.4% -8.0% 2
Slide 25: Share information, shareholders' structure, contact
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 75% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Serres Legal Entities : 15% PC 62125 Individuals : 10% Greece Ticker symbols: Tel.: +30 23210 68300
Slide 26: Appendix: FY 2017 – Financial Results
KRI KRI Αppendix 1 FY 2017 – Financial Results Key Financial figures IFRS - €m 2017 2016 YoY% Sales 79.2 66.6 +19.0% Margins 2017 2016 Change Gross Profit 28.4 25.7 +10.4% Gross Profit 35.9% 38.7% -282bps EBITDA 12.4 11.0 +13.3% EBITDA 15.7% 16.5% -80bps EBIT 9.9 8.9 +11.9% EBIT 12.5% 13.3% -80bps P
Slide 27: Appendix: Operating result per Segment
KRI KRI Αppendix 2 FY 2017 – Financial Results Operating result per Segment Calculations – Reconciliation with P&L Operating IFRS - €m IFRS - €m Sales Margins Change (bps) 2017 Result Yogurt Total 57.4 9.8 17.0% +60 Operating Result 12.0 Greece 36.1 6.1 17.0% +273 Plus / (Minus) Exports 21.4 3.6 17.
Slide 28: 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 — Non-Deal Roadshow (September 2018) on 6ix