Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — RBI Investor Conference Zürs 2024
48 slides from Purcari Wineries Public's conference presentation, April 2024
Slide 1: Purcari Wineries Corporate Presentation
Purcari Wineries Public Company Limited BVB: WINE Corporate Presentation RBI Investor Conference Zürs April 8th – 10th Page 1
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Slide 3: Disclaimer
Disclaimer THIS PRESENTATION IS MADE AVAILABLE ON THIS WEBSITE BY PURCARI WINERIES PUBLIC COMPANY LIMITED (the Company) AND IS FOR INFORMATION PURPOSES ONLY. This presentation and its contents do not, and are not intended to, constitute or form part of, and should not be construed as, constituting o
Slide 4: Board of Directors
Board of Directors Vasile Tofan Victor Bostan Chairman of the Board of Directors CEO, Founder, Executive Director ▪ Senior Partner at Horizon Capital, with over 15 ▪ Founder of the Group, since 2002. years of experience in investments in Consumer ▪ Over 35 years of experience in the wine Goods and T
Slide 5: Agenda
Agenda Alb de Purcari 1 A full, sensual, slightly Purcari Wineries Group velvety experience that seduces the senses like a first love. A wine of a beautiful light golden color, with a fruity taste with 2 delicate accents of oak. 2023 Preliminary Results 50% Chardonnay 35% Pinot Grigio 15% Pinot Blan
Slide 6: Purcari Wineries Group at a glance
1 Purcari Wineries Group at a glance Leading wine player in Central and Eastern Europe... ... with a strong & expanding regional footprint Founded in 1827, Purcari Wineries Group is now... Geographical breakdown of sales for 2023, % The most successful winery from CEE at Decanter World MD Wine Award
Slide 7: Strong track record of growth year to year
1 Strong track record of growth year to year Sustainable profitability accompanying strong growth Comments 2017 2018 2019 2020 2021 2022 2023 ▪ IPO on Bucharest Stock Exchange in February 2018 Revenue 142.3 168.1 199.1 203.7 248.1 302.5 369.4 ▪ Increased sales 2.6x since pre-IPO CoS -74.5 -85.5 -100
Slide 8: Long history of growth, high profitability
1 Long history of growth, high profitability Revenues EBITDA Net Income RON m RON m RON m 369 111 69 99 60 281 59 303 51 281 248 75 83 63 262 65 40 46 199 204 60 38 54 41 169 29 142 42 33 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 (1) RON
Slide 9: Our business model: Affordable luxury
1 Our business model: Affordable luxury Modern cost-competitive winemaking Purcari is positioned at the intersections of three themes: ▪ Modern winemaking: the company is a brand, as opposed to appellation- centric and runs a cost-efficient business. ▪ Affordable luxury: as an aspirational brand, Pu
Slide 10: Our mission, vision and values
1 Our mission, vision and values Our mission Our values To bring joy to people by offering them We are Determined We are doing everything to win the hearts of the inspiration, fair wines of high quality and consumer and we are succeeding admirably. excellent value for money. Ethical We always do the
Slide 11: Purcari formula: operational excellence meets sound marketing
1 Purcari formula: operational excellence meets sound marketing Operational excellence Clever marketing ▪ Location: low-cost production platform in Romania, ▪ Philosophy: be genuine, talk to the consumer, don’t Moldova; very competitive vs. other EU, New world sell to them ▪ Scale: large and growing
Slide 12: Wine markets evolve, as wine moves from novelty to masses
1 Wine markets evolve, as wine moves from novelty to masses Stage 3: “Mass appeal” Stage 2: ▪ Customer taste highly “Beyond early adopters” developed; abundance of offers ▪ Wine treated as a day-to- day item ▪ Customer taste evolves, ▪ Local brands highly Stage 1: diversity increases developed, high
Slide 13: Vision: be the consolidator of a fragmented market
1 Vision: be the consolidator of a fragmented market Volume share top-3 players by country, % 79 82 74 #3 68 63 #2 41 39 18 #1 10 Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Unlike beer or spirits, wine market remains very fragmented; players who have the scale and sophistication needed –
Slide 14: Moldova has the largest vineyard area per capita globally
1 Moldova has the largest vineyard area per capita globally Per Capita vineyard area worldwide, 2018 Hectares per capita Europe Rest of the World 4.1 2.0 1.8 1.5 1.2 1.2 1.0 0.9 0.9 0.8 0.8 0.7 0.6 0.5 0.5 0.5 0.5 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 China
Slide 15: Global wine belt leaves space for New Frontier
1 Global wine belt does leave ample space for pushing New Frontier ahead (5) Napa (US); (6) Bordeaux (FR); (7) Mendoza (AR); (8) Marlborough (NZ). Source: Vinepair – The World’s Coffee & Wine Belts Page 15
Slide 16: Topping competition at engagement and quality
1 Topping competition at engagement and quality Aspirational brand which consumers like sharing about Highest number of ratings and highest scores on Vivino No. of #brand uses on Instagram (k), by key Romanian brands X axis – number of Vivino ratings; Y axis – average Vivino score 17.1 4.2 4.1 4.0 3
Slide 17: Vivino feedback remains very strong
1 Vivino feedback remains very strong, essential for online sales #1 presence in the crucial RON 30-60 segment, holding 6 out of TOP - 14 positions ▪ We remain obsessed with the quality of our wines, which pays off in excellent consumer feedback. ▪ In our core premium segment, 30-60 RON per bottle s
Slide 18: Growth in Vivino usage
1 Growth in Vivino usage – key for consumer engagement, ecommerce 4.2 Top 1% 76 Average score out of Global ranking based on # countries where 5.0 YoY avg. score received Purcari was scanned Page 18
Slide 19: Agenda
Agenda Negru de Ceptura 1 A rich, complex and elegant blend with a Purcari Wineries Group round, velvety taste and an aroma of well-ripened red fruits. A wine of an intense ruby color with a harmonious bouquet of 2 chocolate, coffee and 2023 Preliminary Results spices. Merlot, Cabernet Sauvignon and
Slide 20: Key operational highlights for 2023
2 Key operational highlights for 2023 ▪ Revenues up 22% to RON 369.4m on higher volumes, better mix and select price increases, reaching the top-end of the guidance. Core Wine revenues +21% YoY, Ecosmart contributing +RON 30m. Ongoing revenue ▪ Purcari and Crama Ceptura performing strong +29% and 26
Slide 21: Delivering strong, while navigating macro crosscurrents
2 PL: Delivering strong, while navigating macro crosscurrents Purcari Group Comments RON m 4Q23 4Q22 ∆ 4Q 2023 2022 ∆ 12M ▪ 4Q23 reached 32% of total yearly sales. Gross Revenue 116.9 102.7 14% 369.4 302.5 22% margin at 38%, -2pp vs 4Q23 on costlier bulk from Cost of Sales -72.2 -61 18% -220.8 -170.
Slide 22: Segment reporting: growing strong in WINE
2 Segment reporting: growing strong in WINE Purcari Group Ecosmart WINE Business Comments RON m 2023 2022 ∆ 12M 2023 2022 ∆ 12M 2023 2022 ∆ 12M Revenue 369.4 302.5 22% 30.0 21.4 40% 339.4 281.1 21% ▪ Overall strong performance of Cost of Sales -220.8 -170.2 30% -23.4 -16.2 45% -197.4 -154.0 28% core
Slide 23: Strong balance sheet
2 Strong balance sheet – a solid footing for current macro environment Cash Position Net Debt RON m RON m 50.8 Cash and 109 123 32.1 98 Receivables 76 21.8 23.5 18.1 66 12.6 46 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Current Ratio Cash Ratio 2.08x 1.78x 0.
Slide 24: Continuous growth expansion by market
2 Continuous growth expansion, amid macroeconomic shifts Market Share of sales, 2023 ∆ ’23/’22 YoY Comments ▪ RO: +30% in 4Q23 YoY. Strong growth for all brands across the RO 59% +35% channels, 4Q representing 33% of total 2023 sales. Purcari outstanding performer, closely followed by Crama Ceptura,
Slide 25: Sales growth by brand
2 Sales growth in a challenging consumer environment Brand Share of sales, 2023 ∆ ’23/’22 YoY Comments ▪ PURCARI: Significant volume growth coupled with price increases. Consumer demand proved resilient and premiumization strategy continues to deliver excellent 56% +29% results. Romania leads the gr
Slide 26: Exceptional 2023 agricultural season
2 Exceptional 2023 agricultural season: high-quality vintage and good yield Good 2023 harvest Comments Own harvest and 3rd party purchases of grapes, million kg ▪ Strong own harvest despite unfavorable weather 38.0 conditions of moderate rains and heat waves just before harvesting. 35.1 34.1 ▪ Fulfi
Slide 27: Outstanding results at wine competitions
2 Outstanding results at most reputable wine competitions The most awarded winery from CEE at Best Producer from Moldova 2023 at Château Purcari in the TOP 3 most Decanter World Wine Awards 2023 Mundus Vini Summer Tasting 2023 awarded wineries in the World 3 Gold Medals for Château Purcari 16 Gold a
Slide 28: Continue supporting, engaging, inspiring
2 Continue supporting, engaging, inspiring… National Wine Days – October 2023 Launch of Cuvee de Purcari Adamant Purcari Rară Neagră Campaign The Board of Directors took the opportunity Launched in December 2023, the epitome of A campaign that promotes indigenious to participate at the National Wine
Slide 29: Continue supporting, engaging, inspiring
2 Continue supporting, engaging, inspiring… Domeniile Cuza – Winter Campaign Purcari Cuvee New Year show Academia Purcari – Podcast Awareness campaign with brand Cuvee de Purcari product placement Partnership with Fain si Simplu ambassador Horia Brenciu campaign Product placement by Mihai Morar, inf
Slide 30: Acquisition of Angel's Estate in Bulgaria
2 Acquisition of Angel’s Estate in Bulgaria Key info on Angel’s Estate Revenues, EUR m ▪ 26/09/2022 – Signed SPA for 76% stake in Angel’s Estate. CAGR +13% ▪ Full cycle winery. 2.51 2.55 2.31 ▪ Located near Stara Zagora, Thracian Lowlands Wine region. 1.90 1.56 1.62 ▪ 14,000 m² – production faciliti
Slide 31: Becoming the undisputable Wine Champion in CEE
2 Becoming the undisputable Wine Champion in CEE Formula of becoming wine champion in CEE M&A focus map Purcari footprint and M&A directions ▪ Growth components both organic and Existing Newly added Directions for M&A opportunities through M&A. ▪ Focus on fundamentals: top- and bottom-line line grow
Slide 32: Agenda
Agenda DAOS Pinot Noir A medium-sweet red, 1 distinguished by an Purcari Wineries Group intense dark color. Made from manually harvested Pinot Noir grapes with a full, velvety and harmonious flavor. Tasting 2 notes of forest fruit. 2023 Preliminary Results 100% Pinot Noir Recommended serving tempera
Slide 33: Guidance 2023: delivered on promise
3 Guidance 2023: delivered on promise Target 2023 guidance 2023 actuals Status Comments ▪ Revenue growth was driven equally by higher volumes and pushed-through price increases. Revenue growth +18-22% +22% > Revenue growth, +14-18% +21% > WINE1 ▪ Net Income margin target was met in all four quarters
Slide 34: Guidance 2024
3 Guidance 2024 Target 2024 guidance Comments ▪ Affordable luxury category coping well in current environment, expect revenue growth trends broadly in line with 2023. Revenue +16-20% ▪ Turnover for Waste Recycling Division expected to decrease growth following the legislation on the Warranty-Return
Slide 35: Agenda
Agenda Divin Bardar Gold 10 years 1 A divin of deep taste that Purcari Wineries Group gradually reveals flavors of cigar leaf, iced coffee and 2 dried prunes, with a discreet 2023 Preliminary Results scent of wood and leather. Aged in the finest oak 3 barriques for Guidance at least 10 years. 4 BVB:
Slide 36: Purcari Wineries PCL (BVB:WINE)
4 Purcari Wineries PCL (BVB:WINE) Consensus forecasts Backed by Reputable shareholders Rating Target Price Date Wood & Company Buy 17.80 Oct-23 Raiffeisen Buy 18.00 Feb-24 BT Capital Outperform 12.262 Aug-23 Ipopema Buy 11.50 Aug-23 BRK Buy 18.80 Mar-24 ▪ #4 best performing among companies in BET in
Slide 37: Stock performance, WINE +83% since end-2022
Stock performance, WINE +83% since the end-of-2022 4 (as of Feb-20), well ahead of BET WINE (Purcari Wineries) DIGI (Digi Communications N.V.) AQ (Aquila Part) M (Med Life S.A.) BET (index) SFG (Sphera Franchise Group) 210 “Consumer” peers = relevant companies outside of financials, utility, and ene
Slide 38: Purcari shares liquidity
4 Purcari shares liquidity Rapid rise of stock’s liquidity after starting working with Relative to Market Cap, our stock is top-ranked among Market Makers for Purcari shares BET components Daily volume Ratio of daily trade value to Market Capitalisation, 2021-2024 YTD average, bps BRK 1 Purcari Wine
Slide 39: EBITDA profitability relative to wine listed peers
4 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies EBITDA 2023 Margin, % 26.7% 23.4% 16.7% 15.6% 14.6% Average margin: 13.7% 12.7% 12.6% 10.2% 9.7% 7.5% 7.2% 6.8% 1 Source: Capital IQ, Company Data as per Capital IQ as of February 20th, 2024. (1) Italian W
Slide 40: Valuation relative to wine peers
4 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 92.2 42.1 37.0 31.9 23.6 Average P/E: 23.5x 15.8 13.9 13.4 12.1 11.8 11.3 9.1 8.2 6.6 Source: Net Income and Market Cap as per Capital IQ as of February 20th, 2024. Note: Diluted EPS excluding extra items
Slide 41: Valuation relative to Romanian listed peers
4 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 29.3 19.0 16.2 12.6 Average P/E: 11.1x 9.2 8.2 8.1 7.9 6.7 5.6 5.2 5.1 1 Source: Capital IQ, Company Data as per Capital IQ as of February 20th, 2024. Note: Diluted EPS excluding extra items
Slide 42: High growth not reflected in valuation yet
4 High growth not reflected in valuation yet Purcari vs selected wine public companies Purcari vs selected Romanian public companies 1 Energy companies 35 35 30 30 25 25 Revenue CAGR’19-22* in USD Revenue CAGR’19-22 in USD 20 20 15 15 10 10 5 5 0 -5 0 -10 -5 0 5 10 15 20 25 30 35 40 45 50 55 60 65 7
Slide 43: Agenda
Agenda Deneb Syrah A silky dark red wine with 1 noble purple shades and Purcari Wineries Group spicy overtones with hints of black cherry and tobacco. 100% Syrah 2 2023 Preliminary Results Matured for 18 months in new French oak barrels at controlled temperature and relative humidity. 3 Guidance 4 B
Slide 44: Investing in growth and sustainability
5 Continuing investing in both: growth and sustainability Solar panels ▪ Existing 200 kW Solar System, installed on the roof of Purcari Winery, extended with additional 300 kW; current total capacity of 500 KW, supplying 40% of the winery’s electricity consumption. ▪ Photovoltaic Systems with a capa
Slide 45: Implementing irrigation systems to secure yield and quality
5 Implementing irrigation systems to secure yield and quality ▪ Pioneering in irrigation of technical grapes vineyards in Moldova. ▪ Deployed an irrigation system for 300ha of vineyards at Chateau Purcari. ▪ Opted for an intelligent, fully automated sub-surface drip irrigation system. ▪ Two storage
Slide 46: ESG and Impact
5 ESG and Impact Purcari Wineries is building up its foundation in sustainability and ESG management, by aligning its business and model to the UN Sustainable Development Goals (SDGs). ENVIRONMENT SOCIAL GOVERNANCE ▪ Launched an irrigation system at ▪ Launched Purcari Foundation in ▪ Expanded the bo
Slide 47: Learn more about our Purcari Wineries
Learn more about our Purcari Wineries On March 5th, Purcari Wineries PCL launched a new website: purcariwineries.com. The new website features a friendly, easy-to-navigate design that allows visitors to learn about the latest events and ongoing initiatives, explore our vast wine portfolio and discov
Slide 48: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Eugeniu Baltag Investor Relations Director Phone: +373 60 449 213 Email: investor.relations@purcari.wine PURCARI WINERIES PUBLIC COMPANY LIMITED 8th Calea Iesilor St., 5th floor Chisinau, MD-2069 Republic of Moldova www.purcariwineries.com Page 48
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