Kofola Ceskoslovensko As · PSECZ:KOFOL

Kofola Ceskoslovensko As — Q1 2019 Earnings Presentation

36 slides from Kofola Ceskoslovensko As's earnings presentation, May 15, 2019

  1. Slide 1: Kofola 3M19 Results Investor Presentation

    W kofola GeskoSlavensko SMZ0I9 RESULTS Investor presentation [5 May 20/9

  2. Slide 2: One of the most significant producers of non-alcoholic beverages in CEE and SEE

    One of the most significant producers of non-alcoholic beverages in CEE and SEE Revenue 3M19: € 50.3M EBITDA 3M19: € 4.6M 8 production plants 1,931 employees countries for expansion CZK/EUR average FX rate: 25.682 2

  3. Slide 3: Market positions in the soft drinks market

    No. 2 player in the soft drinks market No. 1 player in the soft drinks market No. 1 water brand No. 1 player in the soft drinks market No. 2 water brand Source: AC Nielsen (value) - for market shares HoReCa: hotel, restaurant, café 3

  4. Slide 4: Hoop Polska sale and reporting structure

    • On 18 March 2019, the Group has sold Hoop Polska. The results of Hoop Polska were therefore part of the Group until 18 March 2019. The consolidated statement of profit or loss is divided into Continuing and Discontinued operations. • 3M19 and 3M18 Continuing operations exclude Hoop Polska. • 3M19

  5. Slide 5: o o o

    o ´ o ´ o o * Adjusted for one-offs 5

  6. Slide 6: Reconciliation of reported and adjusted results

    Reconciliation of reported and Reported One-offs Adjusted One-offs: adjusted results In Other operating income/(costs), net – Continuing operations: CZK mil. CZK mil. CZK mil. • Costs connected with the maintenance of closed Grodzisk Wielkopolski Revenue 1,291.2 - 1,291.2 plant of CZK 2.1 mil. (Fres

  7. Slide 7: Results comparison 3M19 vs 3M18

    Results comparison 3M19 3M18 Change Change Continuing operations: CZK mil. CZK mil. CZK mil. % • Total Group’s revenue increased by 7.6%. CzechoSlovakia Revenue 1,291.2 1,199.7 91.5 7.6% segment sales grew in all main brands. Share of Royal Crown Cola sales in the CzechoSlovakia segment is growing b

  8. Slide 8: LTM EBITDA and EBITDA margin

    (CZK m) 18,0% 17,6% 16,9% 16,9% 16,3% 16,5% 5,883 5,969 6,088 6,157 6,249 971 1,048 1,095 1,043 1,056 16.5% 17.6% 18.0% 16.9% 16.9% 1,095 1,048 1,043 1,056 971 938 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 LTM EBITDA LTM EBITDA margin * Continuing operations ** Adjusted for one-offs 8

  9. Slide 9: Slide 9

  10. Slide 10: CzechoSlovakia: Adjusted EBITDA and margin

    Main drivers: Adjusted EBITDA & EBITDA margin • Increased total revenues. • Increased proportion of HoReCa sales with (CZK m) double digit growth of Royal Crown Cola. 200 20% • Top market share in HoReCa distribution 180 channel since 2011. 160 15% • Lower sugar prices. 140 12,4% 12,6% 120 100 108 1

  11. Slide 11: Kofola sales on Retail & HoReCa CzechoSlovak market

    Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 60% 50% 46% 1,000 50% Gross Profit 40% 303 343 Margin 30% 20% HoReCa 563 558 10% Retail 0 0% 3M18 3M19 11

  12. Slide 12: Retail & HoReCa sales in Adriatic market

    Retail & HoReCa sales in Adriatic market (CZK m) 27% 27% 250 200 20% 99 Gross Profit 86 150 Margin 100 10% HoReCa 115 127 50 Retail 0 0% 3M18 3M19 12

  13. Slide 13: UGO sales and number of bars

    UGO sales* + UGO franchise sales** Highest number of bars in CEE (CZK m) 84 82 81 79 142 152 73 61 44 43 35 50 49 45 107 108 20 12 39 32 34 3M18 3M19 2012 2013 2014 2015 2016 2017 3M18 2018 3M19 Own Franchises * includes sales of salads and UGO bottles ** not included in the Group´s results 13

  14. Slide 14: Consolidated Financial Performance Indicators

    Consolidated Financial Performance Indicators

  15. Slide 15: Sales growth in Group and segments

    • 7.6% growth of sales in Group, 5.3% without effect of LEROS acquisition. • 4.1% growth of sales in CzechoSlovakia (growth in all main brands, double digit growth of Royal Crown Cola). • 12.5% growth of sales in Adriatic. Increase of sales in all main brands with further increase of sales from the

  16. Slide 16: Sales by country

    (CZK m) 3M18 3M19 686 644 348 323 132 149 48 31 57 22 24 27 Czech Republic Slovakia Slovenia Croatia Poland** Other • Continuing operations ** Sales in Poland mainly from Premium Rosa. 16

  17. Slide 17: Adjusted EBITDA development

    • The Group’s adjusted EBITDA increased by CZK 12.8 mil. (12.2%) in comparison with 3M18. • The adjusted EBITDA in the CzechoSlovakia and Adriatic reached CZK 121.1 mil. with a double-digit growth of CZK 18.0 mil. (17.5%) - very positive first steps towards meeting target profitability in 2019. • Th

  18. Slide 18: Net debt and net debt/adjusted LTM EBITDA

    (CZK m) Net debt Net debt/adjusted LTM EBITDA 2.7 2.3 2,807 2,430 3M18 3M19 Increase of Net debt is caused by new IFRS 16 (capitalization of leases) and capital expenditures. 18

  19. Slide 19: Operating CF, Capex, Working Capital

    Operating CF Capex Working Capital* • Decreased operating cash flow in 3M19 is mainly a result of higher payments of the Group’s payables in 3M19 in 132 128 comparison to 3M18. 84 • Increase in CAPEX is mainly a result of the investment in the new production line (Slovakia). 51 • Increase of Working

  20. Slide 20: Market data by country

    210 960 213 657 199 119 204 458 46 471 42 005 67 551 70 515 105 157 99 075 18 832 20 235 64 736 71 490 72 928 78 844 16 028 16 458 27 446 28 876 32 817 42 380 7 710 8 488 275 696 285 147 272 047 283 302 62 499 58 463 94 997 99 391 137 974 141 455 26 542 28 723 141 721 150 052 149 189 151 137 29 517

  21. Slide 21: Kofola INFO

    Kotola INFO an ae

  22. Slide 22: Company history and acquisitions

    Acquisition of Vinea Take over of Titbit brand in Slovakia (no. 1 salad producer (most popular CSD in Czechia) in Slovakia) Acquisition 2019 of UGO group (fresh juices) 2017-2018 HoReCa started Sale of Hoop Polska in Czechia & Slovakia 2015-2016 Expansion into a new Establishment of segment of healt

  23. Slide 23: Kofola facts and healthy product approach

    • Kofola is among the most admired companies in the Czech Republic according to the Czech Top 100 Awards. • Kofola is a herbal drink made from 14 herbs. • Kofola has 30% less sugar then other cola drinks. • Kofola contains no acid phosphoric. • Water makes 30% of our product portfolio. • We use HPP*

  24. Slide 24: 100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%

    100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0% 24

  25. Slide 25: The complete portfolio of strong brands

    The complete portfolio of strong brands ViNcENTA icense

  26. Slide 26: Kofola share in HoReCa channel

    Kofola share in HoReCa channel* Kofola´s HoReCa sales in total sales 3M19 41% 40% 31% 30% 26% 20% 20% 10% 37% 40% 0% 60% 63% HoReCa Retail * based on Data Servis and Canadean (volume terms) 26

  27. Slide 27: Kofola Retail market share (value)

    Kofola Retail market share (VALUE) 35% 35% 30% 30% Kofola loss vs. Competitor 1 -0.2 p.p. 25% Kofola loss vs. Competitor 1 25% -2.5 p.p. 20% 20% 15% 15% 10% 10% 5% 5% 2015 2016 2017 2018 3M19 2015 2016 2017 2018 3M19 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data Servis,

  28. Slide 28: Kofola HoReCa market share (volume)

    Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +8.7 p.p. Kofola gain vs. Competitor 1 30% +13.9 p.p. 30% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 2017 2018 3M19 2012 2013 2014 2015 2016 2017 2018 3M19 Kofola Competitor 1 Competitor 2 Based on AC Nielsen and Da

  29. Slide 29: Current ownership structure

    Current ownership structure Free float* 27.80% AETOS a.s. 67.20% Kofola Group via RADENSKA d.o.o. 5.00% * 6 million shares 29

  30. Slide 30: Dividend policy: at least 60% of consolidated net profit

    Aim of dividend distribution to shareholders of Kofola of at least 60% of its consolidated net profit achieved in each financial year from 2017 Y16 Y17 Y18 Y16 * Y16 Y17 Y18 ** until 2020, subject to sufficient distributable * advance dividend ** suggested dividend profits. 500 1 400 401 400 307 303

  31. Slide 31: Board of Directors

    Jannis Samaras René Musila Daniel Buryš Chairman of the BoD, CEO, founder Vice-Chair of the BoD, COO Vice-Chair of the BoD, Country In Kofola since 1993 manager CzechoSlovakia 67.2% stake in Kofola (via AETOS) In Kofola since 2010 Jiří Vlasák Pavel Jakubík Marián Šefčovič Member of the BoD Member of

  32. Slide 32: Appendix

    ae ae

  33. Slide 33: Adjusted consolidated financial results

    Adjusted consolidated financial results 3M19** 3M18** 2018* 2017* 2016* 2015* 2014* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 1,291,170 1,199,711 7,118,768 6,963,278 6,998,960 7,190,838 6,275,391 Cost of sales (733,413) (702,015) (4,053,399) (4,134,081) (4,211,593) (4,352,102)

  34. Slide 34: Consolidated statement of financial position

    Consolidated statement of financial position 31.3.2019 31.3.2018 31.12.2018 31.12.2017 31.12.2016 31.12.2015* 31.12.2014 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,258,672 4,843,700 4,348,833 4,786,195 4,915,863 5,095,724 4,171,985 Current assets 2,202,215 1,935,599

  35. Slide 35: 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 35

  36. Slide 36: 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

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