Novabev Group · RUS:BELU
Novabev — Beluga Group — FY2020 Earnings Presentation
29 slides from Novabev's earnings presentation, March 2021
Slide 1: Beluga Group 2020 Earnings Presentation
BELUGA GROUP 2020 EARNINGS PRESENTATION March 2021
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Beluga Group, Co. (the “Company“, or “Beluga • changes in consumer preferences and tastes, demographic trends or perceptions about Group”) and together with its subsidiaries. By attending the meeting where the presentation is health related issues; m
Slide 3: Financial and Operational highlights
BELUGA GROUP 2020 financial highlights +11% total volume +7% volume of in-house Sales grew 19% and reached +42% volume of import 91 bln. Rubles* Net Revenue increased Operating profit by 23% to increased by 54% to 6,8 bln. Rubles 66,3 bln. Rubles EBITDA grew 42% and reached 9,2 bln. Rubles Financial
Slide 4: Operating performance
Operating performance 4
Slide 5: Beluga Group and Global markets in 2020
Beluga Group and Global markets in 2020 Volume growth in 2020 Total shipment In-house brands shipment Import shipment 000, 9L cases 000, 9L cases 000, 9L cases +11% +7% +42% 17 369 14 982 15 694 14 014 2 387 1 680 2019 2020 2019 2020 2019 2020 Global drinks market proves its resilience in 2020 10% %
Slide 6: Selected brands' performance in 2020 (by volume)
Selected brands’ performance in 2020 (by volume) shows ongoing trend of sales mix premiumization In-house brands +82% +11% +89% +43% +84% +150% +98% Partners’ brands +57% +12% +27% +42% +47% +28% Sources: Company data, 6
Slide 7: The leading spirits company in Russia
The leading spirits company in Russia Unmatched leadership in home country and further advance worldwide Russia #1 Distilled spirits producer Globally 3 Brands among bestselling Vodka brands2 #1 Russia Flavored spirits producer1 Globally #1 Russia #4 Vodka producer Whiskey producer #1 Russia #9 Glob
Slide 8: Unmatched leadership in Russia in major spirits categories
Unmatched leadership in Russia in major spirits categories Market share (production) in 2020 by volume Top-5 vodka&LVI* producers Top-5 flavored liquors producers Beluga Group 13,1% Beluga Group 18,7% Roust 10,9% OPVZ 11,9% Tatspirtprom 9,2% Sordis 6,8% ASG 7,8% Global Spirits 6,6% Global Spirits 6,
Slide 9: 2020 Nielsen Top Growing Brands
2020 Nielsen Top Growing Brands Arkhangel’skaya is #1 in terms of volume and value share growth 9
Slide 10: Own specialized retail chain is becoming important contributor
Own specialized retail chain is becoming important contributor to the Group’s business Winelab key facts Stores rollout dynamics Focus on 3 major regions: Moscow, 700 # of stores (end of 604 612 622 625 640 St. Petersburg and Far-East Federal 570 600 period) 545 districts 518 Unique assortment w
Slide 11: Fast growth of Winelab's e-commerce. Omnichannel model.
Fast growth of Winelab’s e-commerce. Omnichannel model. Launched in Aug’18, Omnichannel platform now: Share of e-commerce in total sales and in Moscow&SPB regions +190% Winelab.ru web site Mobile App with > 600 off-line stores Presence in Social 6,1% with more than 340k more than 200k which support
Slide 12: New product development: own brands
New product development: own brands Traditional Siberian Vodka. Vodka from the North. Premium price segment. Low premium price segment. Tête de Cheval – premium Russian Spirits from Caribbean Islands. sparkling wine produced according to Bottling on Georgievskiy traditional method of bottle producti
Slide 13: New import contracts, 2020
New import contracts, 2020 #1 imported brandy in #1 Portugal wine in Russia. Russia. #1 Armenian brandy in #1 Rose wine in the World. Russia. From Middle to Premium price segment. One of the best selling wine brand in Russia. In the TOP list of the More than 100K 9L cases sold best drinks in the wor
Slide 14: Financial overview
Financial overview 14
Slide 15: Consolidated Revenue and Gross Profit
Consolidated Revenue and Gross Profit Sales* and Net Revenue Total Gross Profit Revenue breakdown by segments Incomes and expenses of RUB bn RUB bn RUB bn** Discontinued operations +19% +14% (Mikhailovskaya Poultry +17% 90,9 44,4 Plant ) were excluded from +23% 38,9 the statements in 22,7 76,3 Alcoh
Slide 16: Consolidated EBITDA and Net Profit
Consolidated EBITDA and Net Profit Consolidated EBITDA G&A and distribution expenses RUB bn RUB bn EBITDA grew by 42% due to: 1. overall volume growth; +42% 9,2 G&A distribution 2. improvements in operating efficiency as a result of ongoing implementation of 6,5 according strategic plan; 3. Premiumi
Slide 17: Segment EBITDA
Segment EBITDA EBITDA breakdown by segments RUB bn Alcohol Retail Food Alcohol segment +23% +95% -11% EBITDA grew due to 3,0 6,0 improvements in 4,9 operating efficiency, 0,21 sales mix 0,18 1,5 premiumization and effect from IFRS 16 implementation. 2019 2020 2019 2020 2019 2020 Since 2018 the Compa
Slide 18: Debt Profile overview
Debt Profile overview Debt statistics summary RUB mln 31 Dec’19 31 Dec’20 Cost of borrowing is declining - 8.66% p.a. in 2020 (vs 8.98% p.a. in 2019) Loans and bonds 15,016 17,295 Net Debt/EBITDA declined significantly from 2.7X in 2019 to Cash and cash equivalents 1,085 4,890 1.7X in 2020 Total Deb
Slide 19: Income statement
Income statement Rub mln 2018 2019 2020 YoY, % Net revenue 43,411 51,270 63,292 +23% Cost of sales (26,521) (31,916) (40,614) +27% Gross profit 16,890 19,354 22,678 +17% margin 38.9% 37,7% 35.8% -1.9 bp G&A expenses (3,102) (2,910) (2,849) -2% Distribution expenses (10,269) (11,829) (12,984) +10% Ot
Slide 20: Balance sheet
Balance sheet Rub mln 31 Dec’19 31 Dec’20 Rub mln 31 Dec’19 31 Dec’20 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Property, plant and equipment 13,885 12,880 Share capital 1,940 1,580 Goodwill 3,511 3,511 Own shares repurchased from shareholders (669) (347) Int
Slide 21: Cash Flow
Cash Flow Rub mln 2018 2019 2020 Operating profit, continuing operations 3,273 4,457 6,842 Operating loss, discontinued operations - (65) (315) Depreciation and amortization 978 2,103 2,365 Other non-cash transactions 28 229 21 Changes in working capital 466 (2,218) (297) CF from operating activitie
Slide 22: Events after the balance sheet date. Non-core asset disposal.
Events after the balance sheet date. Non-core asset disposal. During the reporting period, the Group entered into an agreement for the sale of Mikhailovskaya Poultry Plant together with its owned PPZ Tsarevshchinsky-2. The companies are engaged in the production of breeding eggs, poultry meat and po
Slide 23: Diversified business with high share of non-vodka products
Diversified business with high share of non-vodka products Key direction for business diversification BELUGA GROUP alcohol revenue evolution 2011 2020 Categories extension Acquisition of vineyards and winery in Russia in 2018, focus on premium Russian wines Expansion of imported brands portfolio
Slide 24: Appendix
Appendix 24
Slide 25: Diversified product portfolio: own brands
Diversified product portfolio: own brands Other spirits Vodka Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 25 Notes: Price range for every segment could differ based on product category
Slide 26: Diversified product portfolio: imported brands
Diversified product portfolio: imported brands Other spirits Brandy / Cognac / liquor Whisky Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 26 Notes: Price range for every segment could differ based on product category. Whiskys Cigars Barre
Slide 27: High level of corporate governance with independent members on the Board
High level of corporate governance with independent members on the Board of directors In June 2019, ALEXANDER MECHETIN NIKOLAY BELOKOPYTOV BELUGA GROUP reinforced CEO Chairman of the BoD the Board of Directors: Founder of Beluga Group CFO New members 4 on the Board of Directors SERGEY MOLCHANOV MIKH
Slide 28: Shareholders structure, dividend policy
Shareholders structure, dividend policy Shareholders structure Dividend policy In September, the Board of Directors of BELUGA GROUP Management approved the company's new dividend policy, which sets 5% out a number of key principles: 1. The amount of dividend payments set as at least 25% of the compa
Slide 29: Company strategy for further development
Company strategy for further development Brand portfolio Retail and distribution Расположение текста Расположение текста Diversified brand на цветной portfolio, coverage of плашке Continued development of the на цветной плашке allРасположение Сноска segments или примечание текста distribut