Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — KRI KRI S.A. Milk Industry — 9th Greek Investment Forum, New York 2020
34 slides from Kri-kri Milk Industry's conference presentation, June 2020
Slide 1: Company Presentation - 9th Greek Investment Forum New York
COMPANY PRESENTATION 9th Greek Investment Forum NEW YORK June 2020
Slide 2: Table of Contents
Table of Contents • KRI KRI at a glance • Strategic Choices • Covid-19 • Facilities, CapEx, Location • Hints for Financial Results • Share information | June 2020 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance 113 Sales per business unit (€m) Basic Figures 94 28 79 67 25 67 22 Ice Cream 21 20 Yogurt € m. FY 2019 Δ Q1 2020 84 69 57 45 47 Sales 113 +26% 2015 2016 2017 2018 2019 Exports 47 +36% EBITDA (€’000s.) & EBITDA Margin Financial Position Indicators 21.120 EBIT 18 +13% Operating ca
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Growth ✓ Performance during Greek crisis -24% 250 239 226 GDP(€bn) 205 190 184 185 185 185 187 191 46,6 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 34,2 Kri Kri Turnover & Profit before Taxes Performance (€m) 24,1 +137% +307% 54,5 94,2 16,0 29,1
Slide 5: Corporate Social Responsibility
KRI KRI at a glance Corporate Social Responsibility People Environment People Environment ✓ High scoring in employees’ satisfaction surveys ✓ Biogas plant for sewage treatment (planned) ✓ Maintaining blood reserves for our employees Society ✓ Less Plastic in packages ✓ Free summer camp to children o
Slide 6: KRI KRI at a glance: History
KRI KRI at a glance YOG 2013 History An unexpected fire broke out on the dairy ICE production plant in 2019 Serres, causing New three-year, € 1954 considerable damage. 27 million investment plan to George Tsinavos established expand the production a small pastry shop in Serres capacity in yogurt and
Slide 7: Basic Segments
KRI KRI at a glance Basic Segments (€m) Yogurt Greece Ice Cream Greece 2019 1Q2020 2019 1Q2020* 44,3 21,7 20,7 35,5 36,1 39,1 Sales: 44,3 +24,8% Sales: 21,7 19,2 18,9 33,3 17,4 EBIT: 6,5 +13,8% EBIT: 4,1 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Yogurt Exports Ice Cream Exports 2019 1Q2020 2
Slide 8: Strategic Choices/ Yogurt Greece
2019: €44,3m Strategic Choices/ Yogurt Greece Δ 20Q1: +24,8% Market size in retail Market share Market Share per Supplier prices per Category (%,€m) (Share >10%) Price index 16,1 KRI KRI 15,8 +0.3% yoy 92 5% 11% 21,9 10 Leader 22,3 96 Strained 20 Set 11,5 9% Competitor 2 15,3 125 17 185 €m 102 55% F
Slide 9: Strategic Choices/ Yogurt Greece: Business Model
Strategic Choices/ Yogurt Greece Business Model Branded Local distributors 65 SKUs Raw Milk Super Markets Private Label 75 SKUs Packaging | June 2020 | 9
Slide 10: Yogurt Greece: Branded products strategy
2019: €44,3m Strategic Choices/ Yogurt Greece Δ 20Q1: +24,8% Branded products strategy Strained • Aiming for the top positions • Focus on Strained Category Set 102 Fruit 55% Functional Evolution of Kri Kri Market Share (vol.) Kids Infant Year Market Share Improving quality by constantly investing Ma
Slide 11: Yogurt Greece: Branded products strategy
2019: €44,3m Strategic Choices/ Yogurt Greece Δ 20Q1: +24,8% Strained Branded products strategy 9% 17 Set Fruit Functional Kids Infant ✓ High Protein and super foods ✓ Forever Young ✓ Lactose free Products addressing the healthy food trend. Products with special formula, focused on Products without
Slide 12: Yogurt Greece: Branded products strategy
2019: €44,3m Strategic Choices/ Yogurt Greece Δ 20Q1: +24,8% Branded products strategy Leader in kids yogurt category Entering the Infant Yogurt Category (Market Share 38,0% in Volume) New Product: Kri Kri Babies-My first Yogurt Launched new products, featuring the PJ Mask brand. ✓ Specially designe
Slide 13: Yogurt Greece: Private label products strategy
2019: €44,3m Strategic Choices/ Yogurt Greece Δ 20Q1: +24,8% Private label products strategy • Perhaps the first supplier for private label • Offers a strategic edge: yogurts in Greece. • Building strong relationships with retailers • We have not discredited this business • Economies of scale • New
Slide 14: Strategic Choices/ Yogurt Exports
2019: €40,2m Strategic Choices/ Yogurt Exports Δ 20Q1: +36,7% United Kingdom Italy Germany 191 253 Rest Yogurt 306 Greek/Greek style Yogurt £m. €m. €m. Total Yogurt: 1.264(£m) Total Yogurt : 1.513(€m) Total Yogurt : 2.246(€m) Source: Nielsen, IRI (Dec 2019) | June 2020 | 14
Slide 15: Yogurt Exports: Business Model
Strategic Choices/ Yogurt Exports Business Model Branded 55 SKUs Super Markets Raw Milk Importers 24 Countries Private Label 105 SKUs Packaging | June 2020 | 15
Slide 16: Yogurt Exports: Private label products strategy
2019: €40,2m Strategic Choices/ Yogurt Exports Δ 20Q1: +36,7% Private label products strategy Opportunities • Expanding PL products portfolio • Private label products capture a big share of consumers wallet in Europe. • Placing branded products to existing customers • It offers a strategic way to en
Slide 17: Yogurt Exports: Strategy per Country
2019: €40,2m Strategic Choices/ Yogurt Exports Δ 20Q1: +36,7% Strategy per Country UK Central Europe • Expanding PL products portfolio • Maintaining position in Germany • Placing branded products to existing customers • Increasing PL products sales in France and Denmark • Increasing BR product sales
Slide 18: Strategic Choices/ Ice cream Greece
2019: €21,7m Strategic Choices/ Ice cream Greece Market size in retail prices Market Share per Brand 14,9 Leading Brand 20,1 223 €m Brand 3 13,4 Brand 4 12,6 Private Label 24,7 Volume Market trend +1.5% Source: Nielsen (2019) | June 2020 | 18
Slide 19: Ice cream Greece: Business Model
Strategic Choices/ Ice cream Greece Business Model Branded Local distributors Kiosks-Convenient 150 SKUs Milk Stores 16.000 POS Private Label Super Markets Cups, sticks and cones 15 SKUs Chocolate, sugar and other flavorings | June 2020 | 19
Slide 20: Ice cream Greece: Branded products strategy
2019: €21,7m Strategic Choices/ Ice cream Greece Branded products strategy ✓ The only Greek ice cream company with nationwide sales network ✓ Expand distribution network with 1000(+7%) extra points of sale ✓ Maintain high profitability ✓ Collaboration with well-known Greek Companies ✓ Private label
Slide 21: Ice cream Exports: Business Model
Strategic Choices/ Ice cream Exports Business Model Branded Importers Kiosks-Convenient 175 SKUs 15 Countries Stores-Supermarkets Milk 5.000 POS Private Label Ice Cream Companies 15 SKUs Super Markets Cups, sticks and cones Chocolate, sugar and other flavorings | June 2020 | 21
Slide 22: Ice cream Exports: Private label and branded strategy
2019: €6,4m Strategic Choices/ Ice cream Exports Private label products strategy Looking for opportunities for Private Label products in European Market Global Market size $ 58 bn European Market Size $ 18 bn Target European market Size Private label $ 10 bn market Source: Statista (2018), Company e
Slide 23: Covid-19
Covid-19 Measures taken • Additional provisions for staff performing critical functions for production and business continuity • Business trips have been kept to a minimum • Systems for remote work (teleworking) are applied where possible Operating • Emergency arrangements have been put in place for
Slide 24: Facilities & CapEx
Facilities & CapEx • Modern production facilities in Investments totaling €28m. have been included in the investment law to subsidize buildings Ε=30.000m² 35% of the amount as a tax exemption. (28m*35%=9,8m) • Capability of further development in land Tax exemption projection Ε= 80.000 m² € (m) 2019
Slide 25: Raw milk supply
Raw milk supply Raw milk production map ✓ Sufficiency in Milk supply ✓ Proximity to farms allows us to deliver products with daily fresh milk increasing their quality ✓ 2-year program in collaboration with the Aristotle University of Thessaloniki ✓ Participation of more than 50 farmers ✓ Includes th
Slide 26: Hints for 2019 Financial Results
Hints for 2019 Financial Results Yogurt Greece Ice cream Greece 2019 2018 YoY Margin Δ Margin 2019 2018 YoY Margin Δ Margin Sales €44.285k €39.053k +13,4% Sales €21.702k €20.717k +4,8% Gross Profit €14.538k €14.845k -2,1% 32,8% -518bps Gross Profit €11.650k €11.101k +4,9% 53,7% +10bps EBIT €6.468k €
Slide 27: Hints for 2019 Financial Results
Hints for 2019 Financial Results | June 2020 | 27
Slide 28: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +212% 2013 2014* 2015 2016 2017 2018 2019 (as per 10/6/2020) Total stockholder 6,50 34,4% -8,0% 5,9% 6,2% 59,0% 44,7% 44,7% return 6,00 5,50 Dividend yield 3,0% 0,0% 3,2% 4,7% 3,0% 3,5% 3,2% 5,00 Share price increase 4,50 31,4% -
Slide 29: KRI KRI Share Information
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 74% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Legal Entities : 16% Serres PC 62125 Ticker symbols: Individuals : 10% Greece Athens Stock Exchange
Slide 30: Investment Proposal Summary
Investment Proposal Summary Investment ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. ✓ High returns and dividend payments to shareholders. Management ✓ An experienced and loyal management team that has led KRI KRI from a local company to a major
Slide 31: Appendix: Annual Key Financial figures
KRI KRI / Αppendix 1 Annual Key Financial figures IFRS - €m 2019 2018 2017 Sales 112.9 94.2 79,2 Margins 2019 2018 2017 Gross Profit 39.1 36.7 28,4 Gross Profit 34.6% 38.9% 35,9% EBITDA 21.1 17.3 12,4 EBITDA 18.7% 18.3% 15,7% EBIT 17.8 14.5 9,9 EBIT 15.8% 15.4% 12,5% Profit before taxes 17.6 14.2 9,
Slide 32: Appendix: Q1 2020 Financial Results
KRI KRI / Αppendix 2 Q1 2020 Financial Results IFRS - €m Q1 2020 Q1 2019 Q1 2018 Sales 27.5 21.9 18.6 Margins Q1 2020 Q1 2019 Q1 2018 Gross Profit 8.7 8.3 7.1 Gross Profit 31.6% 37.8% 38.1% EBITDA 4.5 4.0 2.9 EBITDA 16.3% 18.4% 15.5% EBIT 3.6 3.2 2.2 EBIT 13.2% 14.7% 12.0% Profit before taxes 3.6 3.
Slide 33: Appendix: Q1 2020 Operating results per Segment
KRI KRI / Αppendix 3 Q1 2020 - Operating results per Segment Δ Gross Δ EBIT Gross IFRS - €m Sales YoY% Gross Margin Margin EBIT EBIT Margin Margin Profit (bps) (bps) Yogurt Total 24,5 30,4% 7.5 30.7% -514 4.1 16.8% -207 Greece 12,3 24,8% 4.2 33.8% -574 2.0 16.5% -160 Exports 12,2 36,7% 3.4 27.6% -41
Slide 34: 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 stateme
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