Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — Greek Investment Forum, New York, June 2013
30 slides from Kri-kri Milk Industry's conference presentation, June 2013
Slide 1: Kri Kri Dairy Company Presentation
Kri Kri Dairy Company Company Presentation Greek Investment Forum New York, June 2013 page 1
Slide 2: 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 statemen
Slide 3: Invest in Greek Yogurt
Invest in Greek Yogurt Yogurt in Greek Invest page 3
Slide 4: Investment Summary
Investment Summary One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme Profitable growth, even during the Greek crisis and recession, supported by a sound financial position An experienced and loyal management team that has led Kri Kri from a local
Slide 5: Kri Kri at a glance
Kri Kri at a glance Key Financials Market Size and Share (2012) Market Size Market IFRS Consolidated (€ mn) 2012 (€ mn) Share Sales 59.3 Greek Greece 300 10.5% Yogurt Germany 35 7% Gross Profit Margin 37.1% Denmark 15 40% Iraq 100 6% EBITDA Margin 12.9% UK 210 0‐ Net Profit Margin (after tax) 8.8% I
Slide 6: Organized to create value
Organized to create value Our approach to management …in conjunction with our …creates value for our and business development… strategic choices shareholders From a local company to a Focus on the high growth – Emerging stronger from the major player in Greece and a high margin products Greek
Slide 7: Organic growth strategy
Our Approach Organic growth strategy Going public / abroad: Greek yogurt production and The early years: Lists on Athens Stock Geographical expansion: Initial focus on ice cream production Exchange. Exploits Enter the yogurt market and start and delivery in the local market demand for Yogurt to sale
Slide 8: Experienced and loyal management team
Our Approach Experienced and loyal management team Key information Key information Panagiotis • 30 years of experience in Stamatis Skianis • 37 yrs of experience in Tsinavos the dairy industry (Commercial the dairy industry (CEO & Chairman) • 30 years with Kri Kri Directorr) • 12 years with Kri Kri
Slide 9: Young, well qualified and highly motivated workforce
Our Approach Young, well qualified and highly motivated workforce Young workforce… ...well qualified >51 21‐30 MA/MSc 6% 16% 6% BA/BSc 22% 41‐45 30% Primary School High 6% School 66% 31‐40 48% …effectively deployed across the business …that really enjoys working at Kri Kri Logistics 16% Commercial •
Slide 10: Corporate Governance follows best practice guidelines
Our Approach Corporate Governance follows best practice guidelines 7 members, of which BoD Structure 3 independent non‐executive members Same person as Chairman and CEO – strong leadership, fast decision making Audit Committee BoD Committees Remuneration Committee At least on a bi‐annual
Slide 11: Focus on high growth – high margin products
Our Strategic Choices Focus on high growth – high margin products Company Sales – Gross Profit (€ mn) 100 46% 42% 39% 80 37% 37% 40% 59 60 48 47 40 40 40 20% 18 18 18 22 17 20 0 0% 2008 2009 2010 2011 2012 Sales Gross Profit Gross Margin Sales and Gross Margin by product type (€ mn) 100 51% 49% 45%
Slide 12: Efficient and scalable production line
Our Strategic Choices Efficient and scalable production line Yogurt with 40 000 tons capacity per year 80% capacity utilization Fully automated production lines Ice Cream with 12 000 tons capacity per year 50% capacity utilization Building structure occupies 19 000 sq.m. in a 50 000 sq.m. plot
Slide 13: Partnerships
Our Strategic Choices Partnerships Co‐branded products in collaboration with ION, one of the most famous chocolate brands in Greece Kri‐Kri has exclusive representation and distribution of Mars Ice Creams in Greece page 13
Slide 14: Product Innovation
Our Strategic Choices Product Innovation Greek Frozen Yogurt Leader in the family pack yogurt segment For Middle East markets For developed western For balkan countries Europe markets markets New yogurt flavors Orange – carrot flavor Kiwi flavor page 14
Slide 15: Increase market share in Greece and focus on exports
Our Strategic Choices Increase market share in Greece and focus on exports Greek Yogurt market share (volume) – Greece Ice Cream market share – Greece 11% 10,5% 10,5% 9,5% 8,8% 7,5% 8% 6% 5% 4.0% 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Source: IRI Source: Company’s estimates Greek Yogurt e
Slide 16: Private Label Products
Our Strategic Choices Private Label Products Private label products are a strategic way to increase our sales given that they are capturing a bigger share of consumers wallet year by year Sales Breakdown (2012) Preferred supplier in Greece and Europe We produce P.L products for Greek and Kri‐Kri Eur
Slide 17: Emerging stronger from the Greek crisis
Creating Value Emerging stronger from the Greek crisis Despite the continued decrease of GDP in Greek GDP (€ bn) Greece, Kri Kri has managed to increase its ‐17% sales and profitability year after year proving that: 233 231 222 208 • Our strategy and business model deliver 194 results in good and
Slide 18: Sustainable profitable growth
Creating Value Sustainable profitable growth Sales (€ mn) Net Profit –after Taxes (€ mn) 59.3 5.2 47.2 47.9 3.3 2.6 2.7 39.7 40.3 2.1 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Production (tons) Selling points in Greece 25 14,000 13,000 18 11,500 16 Yogurt 10,700 11 12 10,000 4.3 4.9 5.5 5.0
Slide 19: Sustainable profitable growth
Creating Value Sustainable profitable growth Structure of expenses (excl. COGS) (€ mn) 20.0 60% 15.0 40% 10.0 39% 35% 34% 33% 30% 20% 5.0 0.0 0% 2008 2009 2010 2011 2012 Selling expenses Admin expenses Other expenses % of Total Sales Evolution of selling & admin expenses (€ mn) Total Payroll cost (€
Slide 20: Sound financial position
Creating Value Sound financial position Prudent financial management has led to cash reserves in excess of short and long term borrowing thereby minimising the risk to investors while maintaining debt capacity to finance future growth Net Cash / (Debt) (€ mn) Key indicators Net Cash / (0.3) 2.4 0.4
Slide 21: High returns and dividends to shareholders
Creating Value High returns and dividends to shareholders A highly profitable business model with return ROAE (%) to investors of 17% 17.0% Dividends have increased year on year in line with profitability 12.4% 10.4% 9.9% 7.2% Uninterrupted dividend payments since 2004 2008 2009 2010 2011 2012
Slide 22: Positioned for Growth
Positioned for Growth page 22
Slide 23: Greek Yogurt – a market with enormous potential globally
Positioned for Growth Greek Yogurt – a market with enormous potential globally Greek Yogurt is one of the fastest growing food products ever with huge potential to grow in Europe and US; markets which now discover Greek Yogurt and make it part of their daily diet Key competitive advantages Greek yog
Slide 24: Ice Cream – a market gap in emerging markets
Positioned for Growth Ice Cream – a market gap in emerging markets As the disposable income in emerging markets increases so does the appetite for new dietary products such as ice cream Key competitive advantages Ice cream consumption per capita 2012 (lt/yr) 9.0 Geographical proximity to Emerging
Slide 25: Financial Performance
Financial Performance page 25
Slide 26: Group Financial Results 2012
Financial Performance Group Financial Results 2012 Group (€ ‘000s) FY 2012 FY 2011 yoy (%) Sales 59,299 47,907 24% Gross Profit 22,012 17,893 23% Gross Margin 37.1% 37.3% EBITDA 7,644 5,170 48% EBITDA Margin 12.9% 10.8% EBIT 5,797 2,812 106% Profit before tax 5,813 2,350 147% Net Profit after tax 5,
Slide 27: Financial Performance – Greek Yogurt
Financial Performance Financial Performance – Greek Yogurt €'000s 2012 2011 yoy (%) Sales 35,759 25,868 38% Gross Profit 11,224 7,946 41% Gross Profit Margin 31.4% 30.7% ΕΒΙΤ 4,710 1,768 166% EBIT Margin 13.2% 6.8% Exceptional sales growth +38% yoy driven by: — increased demand for Greek yogurt in
Slide 28: Financial Performance – Ice Cream
Financial Performance Financial Performance – Ice Cream €'000s 2012 2011 yoy (%) Sales 23,363 21,838 7% Gross Profit 10,762 9,907 9% Gross Profit Margin 46.1% 45.4% ΕΒΙΤ 3,534 2,956 20% EBIT Margin 15.1% 13.5% Sales growth is supported by: — strategic partnerships with MARS and ION — favorable wea
Slide 29: Dividend Policy and Payments
Financial Performance Dividend Policy and Payments Dividend policy: To increase our dividend distribution annually, in line with profitability, cash availability and investing needs Year of payment Type € ‘000s 2006 Dividend of 2005 655 2007 Dividend of 2006 898 2008 Dividend of 2007 987 2009 Divide
Slide 30: Contact Us
Contact Us KRI KRI S.A. MILK INDUSTRY 3rd km Serres‐Drama Serres PC 62125 Greece Tel.: +30 23210 68300 Fax: +30 23210 68311 Email: investors@krikri.gr Website: www.krikri.gr page 30
Kri-Kri Milk Industry — Greek Investment Forum, New York, June 2013 on 6ix