Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — 9M 2017 Earnings Presentation
44 slides from Kofola Ceskoslovensko As's earnings presentation, Nov 6, 2017
Slide 1: 9M 2017 Results Investor Presentation
W kofola GeskoSlavensko M2017 RESULTS Investor presentation 6 November 20I7
Slide 2: Leading producer of branded non-alcoholic beverages in CEE
One of the most significant producers of branded non-alcoholic beverages in Central and Eastern Europe Revenues 9M17: € 202M EBITDA 9M17: € 27M 7 production plants 2,150 employees end of production at the end of 2017 EUR/CZK ex. rate: 26.553 countries for expansion
Slide 3: Market positions and brand rankings
No. 2 player in the soft drinks market No. 2 syrup brand Kofola and Jupí the most trustful brands in No. 3 cola brand 2016 survey Leading private label soft 3rd most admired company in 2016 survey drinks producer No. 1 player in the soft No. 1 Player in the soft drinks market drinks market in Sloven
Slide 4: Kofola Group Key Highlights
ofola Group Key SM Highlights* Net debt / EBITDA Revenue per countries (C2K mil) 9M17 2,10 33243443, 2016 1,59 om16 141 EBITDA (CZK mil) * adjusted for one-offs
Slide 5: Reconciliation of reported and adjusted results
Reconciliation of reported and adjusted results Reported One-offs Adjusted One-offs: CZK mil. CZK mil. CZK mil. Revenue 5 354.1 - 5 354.1 • Costs connected with maintenance of closed Cost of sales (3 145.5) - (3 145.5) Bielsk production hall – CZK 6.2 mil. Gross profit 2 208.6 - 2 208.6 • Costs conn
Slide 6: Results comparison 9M17
Results comparison 9M17 9M16 Change Change •Revenue decrease caused by lower sales in Poland that were partially offset by the increase in CzechoSlovakia from Rajec, CZK mil. CZK mil. CZK mil. % Rauch, Semtex and mainly Vinea, increased sales in Ugo and Revenue 5 354.1 5 425.8 (71.7) (1.3%) increase
Slide 7: 3Q17 highlights
• increased revenues in 3Q17 vs. 3Q16 despite bad weather in September 2017 (September revenue decrease 9%) • increased gross profit despite higher costs of sugar • restructuring in Poland - another plant to be closed (Grodzisk) • Poland - acquisition of Premium Rosa and a new contract for distribut
Slide 8: Results comparison 3Q17
Results comparison 3Q17 3Q16 Change Change •Revenue increased by 3.2%, a net effect of decreased revenue in Poland in amount of cca CZK 107 mil. (25.3%) and increased CZK mil. CZK mil. CZK mil. % revenue in the rest of the group. Revenue 1 983.1 1 921.4 61.7 3.2% •Increasing gross profit despite hig
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Slide 10: Kofola sales on CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 4,500 60% 4,000 49% 49% 50% 3,500 Gross Profit 3,000 40% 1,193 1,269 Margin 2,500 30% 2,000 HoReCa 1,500 20% 1,000 2,131 2,175 10% 500 Retail 0 0% 9M16 9M17
Slide 11: CzechoSlovak adjusted EBITDA and margin
9M17 EBITDA margin influenced by Adjusted EBITDA & EBITDA margin increased prices of sugar and increased selling (logistic costs) and marketing costs (mainly in Ugo). (CZK m) The EBITDA decrease is higher in 20% Czechia due to the portfolio 700 18% structure (higher need of sugar) and 600 15% 16% in
Slide 12: Ugo sales and number of bars
Ugo sales + Ugo franchise sales Substantial increase in number of bars (CZK m) 348 287 97 82 73 93 61 38 50 251 194 20 44 12 9M16 9M17 2012 2013 2014 2015 2016 9M17 Own Franchises
Slide 13: Excellent growth of Ugo bottles sales
Excellent growth of Ugo bottles sales 9M16 9M17
Slide 14: Kofola sales on Polish market
Kofola sales on Polish Total gross profit margin influenced by private (CZK m) Retail & Private label market labels, gross profit margin from own brands 1,600 21% 19% is growing. 20% 1,400 1,200 15% Gross Profit Margin 1,000 832 800 523 10% Private label 600 400 5% 555 200 455 Retail 0 0% 9M16 9M17
Slide 15: Poland adjusted EBITDA and margin
Consolidation of Polish Adjusted EBITDA & EBITDA margin production capacities to 1 production plant in Kutno will lead to cost reductions. A (CZK m) production plant (Grodzisk 150 10% Wielkopolski) will be closed by 7% YE2017. 8% 102 6% 100 4% 2% 2% Share in group’s 0% EBITDA: 2.8% 50 -2% (9M16: 12.
Slide 16: Poland priorities
Experienced management with commercial background and focus on results improvement. Production efficiency optimization with focus on own brands, supported by private labels. Lower sales but standard profitability (10%). Acquisition of Premium Rosa. Concentration of production in one plant (Kutno), t
Slide 17: Sales in Adriatic market
Retail & HoReCa sales Still room to grow in in Adriatic market HoReCa with full soft (CZK m) drink portfolio 1,000 41% 900 39% 40% 800 700 212 30% Gross Profit 600 181 Margin 500 20% 400 HoReCa 300 611 486 10% 200 100 Retail 0 0% 9M16 9M17
Slide 18: Adriatic adjusted EBITDA and margin
EBITDA margin should improve Adjusted EBITDA & EBITDA margin in near future due to post acquisition synergies (CZK m) 250 24% 25% 20% 200 20% 150 159 162 15% 100 10% Share in group’s EBITDA: 20.4% 50 5% 0 0% 9M16 9M17
Slide 19: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 20: Revenue
(CZK m) Total CZ+SK 5,426 5,354 3,324 3,443 9M16 9M17 9M17 – Revenue decrease (1.3%) attributable to Poland, partly offset by growth of sales in other regions. CzechoSlovakia increased by 3.6%.
Slide 21: Revenue by segment
(CZK m) 9M16 9M17 Czech Republic Revenues increased by 3.5%, due to increased sales of 2 187 Rauch, Rajec and Vinea. UGO increased revenue by 36.9%. 2 113 Slovakia Revenues growing by 3.8%, keeping leading position in both Retail and HoReCa segment in terms of market share. Sales 1 257 1 387 in our
Slide 22: EBITDA
(CZK m) Total CZ+SK 851 706 591 525 9M16 9M17 The net decrease of EBITDA is caused by decreased performance in Poland and CzechoSlovakia, which was not fully compensated by increased performance in Croatia. The EBITDA achieved by the Group in Poland decreased as a result of decreased sales mainly of
Slide 23: Net debt and net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 2,1 1,6 1,4 1,926 1,689 1,360 9M16 2016 9M17 Net debt in 9M17 vs. 2016 influenced by decreasing cash exceeding decrease of debt. Decrease of cash in 9M17 vs. 2016 due to capex, acqisitions and dividends.
Slide 24: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital •Operating CF increased, thanks to positive working capital cash flow effect (increased payables 9M vs. YE) despite decreased profit. 468 502 •Decrease of Capex – net effect of lower capex 443 in Poland (100 MCZK new production hall in 388 9M16) and higher capex in
Slide 25: Ugo: integration and Titbit salad acquisition
Ti • Continuing integration (sales team, SAP, • The biggest salad producer in Czechia, production processes). expected effect of CZK 60 mil. on 2017 Group • Decrease of revenues because customers did revenues. a frontloading before the takeover and timing • Production of approx. 5000 salads daily. o
Slide 26: Premium Rosa acquisition in Poland
• Important part of the current strategy in Poland. • Forward looking company that records double-digit sales growth. • Kofola will expand its portfolio of healthy food products: syrups, juices, jams, products made from medicinal plants from certified farms. • Purchase price: PLN 10 million. • Expec
Slide 27: Kofola INFO
Kotola INFO an ae
Slide 28: Company history and acquisitions
Acquisition of Studenac – no. 2 mineral water brand Acquisition in Croatia Acquisition of Hoop of Ugo group (Hoop and Paola brands) (fresh juices) 2017 2016 HoReCa started in 2012 2015 Acquisition of Czechia & Slovakia Premium Rosa – Establishment of producer of high the Kofola brand 2008 Acquisitio
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Slide 30: The complete portfolio of strong brands
The complete portfolio of strong brands arctic” $ Own oe BS nase WI Studenac Ciera) studena. oS CS KA g GRODZISKA Maa Frene icense evian BADOIT.
Slide 31: Market positions by category and country
Legend: Strong second position in Czech market and leading position in Leader Viceleader PL CZ SK SI Slovak market. Leading position in carbonated beverages segment in Slovakia was Cola beverages 3 2 1 3 achieved due to acquisition and further development of Vinea brand. Carbonated beverages - 3 1 2
Slide 32: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 9M17 40% 36% 35% 31% 30% 25% 24% 21% 41% 35% 20% 65% 59% 15% 10% HoReCa 5% Retail** 0% 2012 2013 2014 2015 2016 9M17 * based on Data Servis and Canadean (volume terms); ** including private label
Slide 33: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +3.8 %p. +6.8 %p. 20% 20% 19% 15% 15% 17% 14% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data
Slide 34: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +3.8 %p. Kofola gain vs. Competitor 1 30% +7.0 %p. 36% 30% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 9M17 2012 2013 2014 2015 2016 9M17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen
Slide 35: Current and target ownership structure 2018
Current ownership structure Target ownership structure 2018 Free float 6.04% Free float RADENSKA d.o.o. 30.00% 5.00% AETOS a.s. CED Group S.a.r.l. 68.00% 20.96% AETOS a.s. 65.00% Kofola Group via Radenska 5.00%
Slide 36: Ownership changes completed and planned
Already has taken place: 1. Establishment of AETOS a.s. 2. KSM, René Musila and Tomáš Jendřejek transfered their shares in Kofola to AETOS 3. CED Group S.a.r.l. sold 12 % of its shares in Kofola to AETOS for 440 CZK/share. 4. RADENSKA d.o.o. (a wholly owned subsidiary of Kofola) purchased 5 % of sha
Slide 37: Share price information 9M17
Share price information 9M17 (CZK) KOFOLA ČS PX (CZK) 6M average share price 413 CZK 600 490 6M average daily transaction activity 1 342 pcs. 1 200 500 411 1 100 400 1 000 300 938 1 045 900 200 100 800 0 700
Slide 38: Dividend policy
Aim of dividend distribution to shareholders of Kofola - at least 60% of its consolidated net profit achieved in each financial year from 2017 until 2020, subject to sufficient distributable profits. Dividends for FY2016: 1. Advanced dividend 7 CZK/share (decisive date 7 November 2016). Dividend pay
Slide 39: Board of directors
Jannis Samaras Daniel Buryš Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Country manager Poland 56% stake in Kofola (via In Kofola since 2010 In Kofola since 2010 AETOS) René Musila Tomáš Jendřejek Marián Šefčovič Board member, COO Board member, Procurement Director Board m
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Slide 41: Adjusted consolidated financial results
Adjusted consolidated financial results 9M2017** 9M2016** 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 5,354,076 5,425,784 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (3,145,548) (3,237,704) (4,211,593) (4,352,102) (3,881 359) (4,300,767) Gross profit 2,2
Slide 42: Consolidated statement of financial position
Consolidated statement of financial position 30.9.2017*** 30.9.2016*** 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,835,220 4,880,861 4,915,863 7,190,838 6,275,391 6,287,894 Current assets 3,015,910 3,438,820 3,104,020 3,395,290 1
Slide 43: 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
Slide 44: 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. — 9M 2017 Earnings Presentation on 6ix