Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — H1 2017 Earnings Presentation
43 slides from Kofola Ceskoslovensko As's earnings presentation, August 2017
Slide 1: H1 2017 Results Investor presentation
W kofola GeskoSlavensko H20I7 RESULTS Investor presentation T August 2017
Slide 2: One of the most significant producers of non-alcoholic beverages in CEE
One of the most significant producers of non-alcoholic beverages in Central and Eastern Europe Revenues 6M17: € 126M EBITDA 6M17: € 13M 7 production plants 2,100 employees end of production at the end of 2017 EUR/CZK ex. rate: 26.784 countries for expansion
Slide 3: Market positions and brand rankings
No. 2 player in the soft drinks market No. 2 syrup brand Kofola and Jupí the most trustful brands in No. 3 cola brand 2016 survey Leading private label soft 3rd most admired company in 2016 survey drinks producer No. 1 player in the soft No. 1 Player in the soft drinks market drinks market in Sloven
Slide 4: Kofola Group Key Highlights
Kotola Group Key Highlights* Profit for the period (CZK mil.) 156 21002171 50 ai6 1H17 EBITDA margin (%) ani7 104 amie 14,7 * adjusted for one-offs
Slide 5: Reconciliation of reported and adjusted results
Reconciliation of reported and adjusted results Reported One-offs Adjusted One-offs: CZK mil. CZK mil. CZK mil. Revenue 3 371.0 - 3 371.0 • Costs connected with maintenance of Bielsk Cost of sales (2 035.4) 4.5 (2 030.9) production hall – CZK 4.5 mil. 1 335.6 4.5 1 340.1 Gross profit (1 057.4) - (1
Slide 6: Results comparison 6M17
Results comparison 6M17 6M16 Change Change •Revenue decrease caused by lower sales in Poland that were partially offset by the increase in CzechoSlovakia that came from CZK mil. CZK mil. CZK mil. % Rauch, Rajec and Vinea, increased sales in Ugo and increased Revenue 3 371.0 3 504.4 (133.4) (3.8%) sa
Slide 7: Results comparison 2Q17
Results comparison 2Q17 2Q16 Change Change •Revenue decreased slightly by 0.5%, a net effect of decreased revenue in Poland in amount of cca CZK 182 mil. (32.6%) and CZK mil. CZK mil. CZK mil. % increased revenue in the rest of the group. Revenue 2 027.5 2 038.1 (10.6) (0.5%) (1 157.6) (1 189.1) 31.
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Slide 9: Kofola sales on Retail & HoReCa CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 3,000 60% 49% 42% 2,500 50% Gross Profit 2,000 40% 778 Margin 712 1,500 30% HoReCa 1,000 20% 1,392 1,393 500 10% Retail 0 0% 6M16 6M17
Slide 10: Adjusted EBITDA & EBITDA margin
1H17 EBITDA margin influenced by Adjusted EBITDA & EBITDA margin increased prices of sugar and increased selling (logistic costs) and marketing costs (mainly in Ugo). (CZK m) The EBITDA decrease is higher in 500 20% Czechia due to the portfolio 17% structure (higher need of sugar) and 400 16% inclus
Slide 11: Ugo sales and number of bars
Ugo sales + Ugo franchise sales Substantial increase in number of bars (CZK m) 78 73 218 61 181 62 38 50 54 156 20 127 40 12 1H16 1H17 2012 2013 2014 2015 2016 1H17 Own Franchises
Slide 12: Excellent growth of Ugo bottles sales
Excellent growth of Ugo bottles sales 1H16 1H17
Slide 13: Kofola sales on Polish Retail & Private label market
Kofola sales on Polish Total gross profit margin influenced by private (CZK m) Retail & Private label market labels, gross profit 1 200 21% margin from own brands 20% is growing. 20% 1 000 800 15% Gross Profit Margin 557 600 10% 345 Private label 400 5% 200 408 311 Retail 0 0% 1H16 1H17
Slide 14: Poland Adjusted EBITDA & EBITDA margin
Consolidation of Polish Adjusted EBITDA & EBITDA margin production capacities to 1 production plant in Kutno will lead to cost reductions. A (CZK m) production plant (Grodzisk 150 9% Wielkopolski) will be closed by 8% YE2017. 7% 100 5% 76 Share in group’s 3% EBITDA: 1.6% 50 1% (6M16: 14.8%) 1% 5 0 -
Slide 15: Poland: management focus and production consolidation
Experienced management with commercial background and focus on results improvement. Production efficiency optimization with focus on own brands, supported by private labels. Lower sales but standard profitability (10%). Acquisition of Premium Rosa. Concentration of production in one plant (Kutno), t
Slide 16: Retail & HoReCa sales in Adriatic market
Retail & HoReCa sales Still room to grow in in Adriatic market HoReCa with full soft (CZK m) 38% drink portfolio 500 35% 450 400 130 30% 350 114 Gross Profit 300 Margin 250 20% 200 HoReCa 346 150 286 10% 100 50 Retail 0 0% 1H16 1H17
Slide 17: Adriatic Adjusted EBITDA & EBITDA margin
EBITDA margin should improve Adjusted EBITDA & EBITDA margin* in near future due to post acquisition synergies (CZK m) 200 20% 17% 160 15% 16% 120 12% 80 8% Share in group’s 69 71 EBITDA: 20.4% 40 4% 0 0% 1H16 1H17
Slide 18: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 19: Revenue 1H16 vs 1H17
(CZK m) Total CZ+SK 3,504 3,371 2,104 2,171 1H16 1H17 1H17 – Revenue decrease attributable to Poland, partly offset by growth of sales in other regions.
Slide 20: Revenue by segment
(CZK m) 1H16 1H17 Czech Republic Revenues increased by 2.1%, due to increased sales of Rauch, Rajec and Vinea. UGO increased revenue by 30.5%. 1 356 1 384 Slovakia Revenues growing by 5.2%, keeping leading position in both Retail and HoReCa segment in terms of market share. Sales 787 965 in our most
Slide 21: EBITDA 1H16 vs 1H17
(CZK m) Total CZ+SK 514 367 349 272 1H16 1H17 The net decrease of EBITDA is caused by decreased performance in Poland and CzechoSlovakia which was not fully compensated by increased performance in Slovenia. The EBITDA achieved by the Group in Poland decreased as a result of decreased sales mainly of
Slide 22: Net debt and Net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 1,9 1,6 1,5 1,689 1,735 1,550 1H16 2016 1H17 Net debt in 1H17 vs. 2016 influenced by decreasing cash exceeding decrease of debt. Decrease of cash in 1H17 vs. 2016 due to capex and repayments of loans which exceeded proceeds.
Slide 23: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital •Operating CF increased, thanks to positive working capital cash flow effect (increased 308 payables) despite decreased profit. 253 225 •Decrease of Capex – comparative figure influenced by the payment of the new production 86 hall in Poland (CZK 100 mil.) •Decreas
Slide 24: Adriatic and Ugo updates
Ti • Continuing integration (sales team, SAP, • The biggest salad producer in Czechia, production processes). expected effect of CZK 60 mil. on 2017 • Decrease of revenues because customers did revenues. a frontloading before the takeover and timing • Production of approx. 5000 salads daily. of the
Slide 25: Acquisition of Premium Rosa in Poland
• Important part of the current strategy in Poland. • Forward looking company that records double-digit sales growth. • Kofola will expand its portfolio of healthy food products: syrups, juices, jams, products made from medicinal plants from certified farms. • Purchase price: PLN 10 million. • Expec
Slide 26: Kofola INFO
Kotola INFO an ae
Slide 27: Company history and acquisitions
Acquisition of Studenac – no. 2 mineral water brand Acquisition in Croatia Acquisition of Hoop of Ugo group (Hoop and Paola brands) (fresh juices) 2017 2016 HoReCa started in 2012 2015 Acquisition of Czechia & Slovakia Premium Rosa – Establishment of producer of high the Kofola brand 2008 Acquisitio
Slide 28: 100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%
100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0%
Slide 29: The complete portfolio of strong brands
The complete portfolio of strong brands arctic” as © we ora GS ©@ WI Studenac Ciera) studena. VINCENT! KA g GRODZISKA Maa Frene icense evian BADOIT.
Slide 30: Market positions by category and country
Legend: Strong second position in Czech market and leading position in Leader Viceleader PL CZ SK SI Slovak market. Leading position in carbonated beverages segment in Slovakia was Cola beverages 3 2 1 3 achieved due to acquisition and further development of Vinea brand. Carbonated beverages - 3 1 2
Slide 31: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 1H17 40% 35% 35% 31% 30% 24% 35% 25% 39% 21% 20% 61% 65% 15% 10% HoReCa 5% Retail** 0% 2012 2013 2014 2015 2016 1H17 * based on Data Servis and Canadean (volume terms); ** including private label
Slide 32: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +3.9 %p. +6.6 %p. 20% 20% 19% 15% 15% 17% 14% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 1H17 2012 2013 2014 2015 2016 1H17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data
Slide 33: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +2.7 %p. Kofola gain vs. Competitor 1 30% +6.8 %p. 30% 35% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 1H17 2012 2013 2014 2015 2016 1H17 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen
Slide 34: Current and target ownership structure 2018
Current ownership structure Target ownership structure 2018 Free float 6.72% Free float 30.00% AETOS a.s. 56.00% CED Group S.a.r.l. 37.28% AETOS a.s. 65.00% Kofola Group via Radenska 5.00%
Slide 35: Ownership restructuring steps
1. Establishment of AETOS a.s. 2. KSM, René Musila and Tomáš Jendřejek transfered their shares in Kofola to AETOS. 3. AETOS now owns 56 % of Kofola shares. 4. CED Group S.a.r.l. will sell 12 % of its shares in Kofola to AETOS for 440 CZK/share. 5. RADENSKA d.o.o. (a wholly owned subsidiary of Kofola
Slide 36: Share price information 6M17
Share price information 6M17 (CZK) KOFOLA ČS PX (CZK) 6M average share price 403 CZK 600 1 200 490 6M average daily transaction activity 2 517 pcs. 1 150 500 425 1 100 1 050 400 1 000 938 300 950 1 008 900 200 850 800 100 750 0 700
Slide 37: Dividend policy and FY2016 dividends
Aim of dividend distribution to shareholders of Kofola of at least 60% of its consolidated net profit achieved in each financial year from 2017 until 2020, subject to sufficient distributable profits. Dividends for FY2016: 1. Advanced dividend 7 CZK/share (decisive date 7 November 2016). Dividend pa
Slide 38: Board of directors and management
Jannis Samaras Daniel Buryš Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Country manager Poland 56% stake in Kofola (via In Kofola since 2010 In Kofola since 2010 AETOS) René Musila Tomáš Jendřejek Marián Šefčovič Board member, COO Board member, Procurement Director Board m
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Slide 40: Adjusted consolidated financial results
Adjusted consolidated financial results 6M2017** 6M2016** 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 3,370,982 3,504,381 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (2,030,857) (2,139,019) (4,211,593) (4,352,102) (3,881 359) (4,300,767) Gross profit 1,3
Slide 41: Consolidated statement of financial position
Consolidated statement of financial position 30.6.2017*** 30.6.2016*** 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,851,498 4,989,684 4,915,863 7,190,838 6,275,391 6,287,894 Current assets 3,277,390 3,462,268 3,104,020 3,395,290 1
Slide 42: 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
Slide 43: 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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