Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — FY2016 Earnings Presentation
40 slides from Kofola Ceskoslovensko As's earnings presentation, Mar 20, 2017
Slide 1: 2016 Results Investor presentation
W kofola GeskoSlavensko 20I6 RESULTS Investor presentation 20 March 20I7
Slide 2: One of the most significant producers of non-alcoholic beverages in CEE
One of the most significant producers of non-alcoholic beverages in Central and Eastern Europe Revenues 2016: € 259M EBITDA 2016: € 39M 7 production plants 2,100 employees countries for expansion EUR/CZK ex. rate: 27.033
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 Slo
Slide 4: Kofola Group Key Highlights
ofola Group Key Highlights* * adjusted for one-offs Profit for the period (c2k mi) 374 2015 EBITDA margin (%) 2016 2015 342 2016 15,2 15,3 Net debt / EBITDA
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. • Closure of Bielsk and reorganization costs – Revenue 6 999.0 - 6 999.0 CZK 36 mil. Cost of sales (4 210.5) (1.1) (4 211.6) • Merger, acquisition and due diligence costs 2 788.5 (1.1) 2 7
Slide 6: Results comparison 2016
Results comparison 2016 2015 Change Change •Revenue decrease attributable to Poland, CZK mil. CZK mil. CZK mil. % mostly offset by growth of Radenska, Revenue 6 999.0 7 190.8 (191.8) (2.7%) Rauch and Ugo. Cost of sales (4 211.6) (4 352.1) 140.5 (3.2%) •Group selling costs flat, net effect of Gross p
Slide 7: Results comparison 4Q2016
Results comparison 4Q2016 4Q2015 Change Change •Revenue decreased mainly in Poland (by CZK mil. CZK mil. CZK mil. % CZK 93 mil.). Revenue 1 573.2 1 630.9 (57.7) (3.5%) •Administrative costs increased mainly in Cost of sales (973.9) (1 086.1) 112.2 (10.3%) CzechoSlovakia and Slovenia. Gross profit 59
Slide 8: ace)
= ace) > Cc @ > >) Ss. Cc + — —) >) a)
Slide 9: Kofola sales on Retail & HoReCa CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 6,000 60% 5,000 48% 47% 50% Gross Profit 4,000 40% 1,603 Margin 1,434 3,000 30% HoReCa 2,000 20% 2,785 2,786 1,000 10% Retail 0 0% 2012 2013 2014 2015 2016
Slide 10: Adjusted EBITDA & EBITDA margin
High EBITDA margin reflects Adjusted EBITDA & EBITDA margin high operational efficiency due to high market share and share of HoReCa business (CZK m) 1,000 18% 18% 20% 800 16% 754 785 Share in group’s 600 12% EBITDA: 74% 400 8% 200 4% 0 0% 2012 2013 2014 2015 2016
Slide 11: Mr. Ugo sales and number of bars
Mr. Ugo sales + Ugo franchise sales Substantial increase in number of bars (CZK m) 387 73 127 61 275 50 36 107 33 167 260 20 52 168 12 37 44 28 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Own Franchises
Slide 12: (CZK m)
(CZK m) 33 24 6 2 2013 2014 2015 2016
Slide 13: Kofola sales on Polish Retail & Private label market
Kofola sales on Polish (CZK m) Retail & Private label market 5,000 24% 25% 20% 4,000 20% Gross Profit 3,000 15% Margin 2,000 10% Private 1,420 label 1,008 1,000 5% 889 728 Retail 0 0% 2012 2013 2014 2015 2016
Slide 14: Adjusted EBITDA & EBITDA margin Poland
Market investments should be Adjusted EBITDA & EBITDA margin financed by further cost reduction resulting from business optimization (CZK m) 400 12% 10% 300 8% 9% 200 229 6% Share in group’s EBITDA: 12.5% 100 133 3% (2015: 21%) 0 0% 2012 2013 2014 2015 2016
Slide 15: Poland: new management and production optimization
New management appointed Production efficiency optimization with focus on own brands, supported by private labels Development/acquisitions of additional 2–3 brands Lower sales but standard profitability (10%) Discontinuation of production in Bielsk Podlaski with concentration of production in two re
Slide 16: Radenska Retail & HoReCa sales in Adriatic market
Radenska Retail & HoReCa sales (CZK m) in Adriatic market* 1,000 50% 44% 45% 800 40% 201 Gross Profit 168 Margin 600 30% 400 20% HoReCa 562 616 200 10% Retail 0 0% 2012 2013 2014 2015 2016 * based on geographical segment data; 2012–2014 based on publicly available Radenska historical financial state
Slide 17: Adjusted EBITDA & EBITDA margin Adriatic
Limited contribution to margin Adjusted EBITDA & EBITDA margin* from other brands. Still room to grow in HoReCa with full soft drink portfolio (CZK m) EBITDA margin should improve 19% 200 18% 20% in near future due to post acquisition synergies 160 16% 142 146 120 12% 80 8% Share in group’s EBITDA:
Slide 18: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 19: Revenues
(CZK m) CAGR +4% +8% Total CZ+SK 7,191 6,999 6,288 6,275 4,219 4,389 3,486 3,667 2013 2014 2015 2016 2016- very good performance on Czech and Slovak markets but overall performance influenced by Poland Strong sales in 2015 influenced by exceptional weather
Slide 20: Revenues by country
(CZK m) 2015 2016 Czech Republic Revenues increased by 6.4%, mainly due to production and 2 639 2 808 distribution of Rauch products, increased sales of Kofola and Semtex. Sales in our most profitable HoReCa and Impulse 2 309 channels grew, Impulse by double digits. UGO generated increased revenue o
Slide 21: Adjusted EBITDA
(CZK m) CAGR +9% +7% Total CZ+SK 1,103 1 064 915 820 785 717 754 639 2013 2014 2015 2016 EBITDA growth in 2012–2015 resulting from business improvement on all Kofola markets and channels, lower total EBITDA in 2016, but CZ+SK+Adriatic shows stable growth
Slide 22: Net debt and net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 1,7 1,6 1,1 1,0 1,689 1,324 1,277 887 2013 2014 2015 2016 Reduction in debt over 2013–2014 due to lack of significant investments Radenska acquisition debt impact visible in 2015 Net debt in 2016 influenced by decreased cash balance due to higher capex, Stud
Slide 23: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital •Decrease of operating CF – effect of Polish activity (CZK 181 mil.) caused by strong cash- EBITDA in 2015, higher receivables at YE 2016 (Christmas sales) and decreased payables due 935 to lower purchases. Effect of Adriatic activities 656 (CZK 89 mil.) caused by
Slide 24: Direct material and production costs
(CZK m) Kofola´s index of sugar price 2016 vs. 2012: 0.62 Direct material cost Production and other cost 2,886 2,650 1,083 1,142 2015 2016 Direct material costs Packaging Sweeteners Direct material costs Packaging Sweeteners Other 20% Other 19% structure 48% 32% structure 48% 33%
Slide 25: Kofola INFO
Kotola INFO an ae
Slide 26: Company history and acquisitions
Acquisition of Studenac – no. Acquisition 2 mineral water brand of Ugo group in Croatia Acquisition of Hoop (fresh juices) (Hoop and Paola 2016 brands) 2015 HoReCa started in 2012 Czechia & Slovakia 2008 Acquisition Establishment of of Radenska, the Kofola brand Acquisition of Vinea No. 1 water 2004
Slide 27: Brand awareness survey
100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0% Source: Ogilvy (2014)
Slide 28: The complete portfolio of strong brands
The complete portfolio of strong brands arctic” GRODZISKA WI Studenac Ciera) studena. viNcewn KA, Aaa ne icense evian BADOIT.
Slide 29: Market positions by segment 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 30: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 2016 40% 36% 36% 35% 29% 30% 24% 24% 34% 25% 41% 20% 20% 59% 66% 15% 10% 5% 0% 2011 2012 2013 2014 2015 2016 HoReCa Retail** * based on Data Servis and Canadean (volume terms); ** including private label
Slide 31: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +5.6 %p. +8.3 %p. 20% 20% 19% 15% 15% 15% 16% 10% 12% 10% 5% 5% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data
Slide 32: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +8.6 %p. 36% Kofola gain vs. Competitor 1 30% +9.0 %p. 30% 29% 20% 24% 20% 20% 10% 10% 0% 0% 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen
Slide 33: Management board
Jannis Samaras Daniel Buryš Roman Zúrik Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Commercial Director Board member, 50.78% stake in Kofola In Kofola since 2010 In Kofola since 2011 Country manager Poland In Kofola since 2010 René Musila Tomáš Jendřejek Marián Šefčovič Bo
Slide 34: Shareholder structure
Others 6.72% KSM Investment S.A. 50.78% CED Group S.a.r.l. 37.28% The Founders Group Tomáš Jendřejek René Musila 2.61% 2.61%
Slide 35: Share price information 2016
Share price information 2016 (CZK) KOFOLA ČS PX (CZK) 12M average share price 426 CZK 600 490 1 080 12M average daily transaction activity 1 118 pcs. 500 400 1 030 400 980 938 300 930 954 200 880 100 830 0 780
Slide 36: ae ae
ae ae
Slide 37: Adjusted consolidated financial results
Adjusted consolidated financial results 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 Revenue 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (4,211,593) (4,352,102) (3,881 359) (4,300,767) Gross profit 2,787,367 2,838,736 2,394 032 1,987,127 Selling, marketing and distribution costs
Slide 38: Consolidated statement of financial position
Consolidated statement of financial position 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,915,863 7,190,838 6,275,391 6,287,894 Current assets 3,104,020 3,395,290 1,787,877 1,734,245 Total assets 8,019,883 8,491,014 5,959,862 5,867,100 Equity att
Slide 39: Kofola ČeskoSlovensko a.s. 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 40: 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. — FY2016 Earnings Presentation on 6ix