Slide 1: Beluga Group presentation
BELUGA GROUP presentation August
Slide 2: Disclaimer
Disclaimer The information contained herein has been prepared by the Company or its group will operate in the future. or third-party sources. Third party industry publications, (all such persons together being referred to as “relevant Beluga Group PJSC (the “Company”). The information and Although t
Slide 3: Agenda
Agenda BELUGA GROUP STRATEGY TODAY OVERVIEW 01 02 FOCUS ON SUSTAINABLE APPENDIX DEVELOPMENT 03 3
Slide 4: Beluga Group Today
BELUGA GROUP TODAY 01 s e c t i o n
Slide 5: Beluga Group at a glance
BELUGA GROUP at a glance № 1 № 4 RUB 97bn RUB 68bn RUB 9.5bn Spirits producer Vodka producer (+18% y-o-y) (+23% y-o-y) (+31% y-o-y) In Russia1 Globally2 LTM Gross revenue3 LTM Net revenue3 LTM EBITDA3 14.3% 713 BB- ruA 1.5x ≥ 25% ROIC3 stores4 Fitch Expert RA Net debt / EBITDA4 of Net Income One of
Slide 6: Beluga Group transformation history
BELUGA GROUP transformation history 2002-2007 Acquisition of 7 spirits production plants in different Russian regions 2015-2021 Beluga and Belenkaya brands acquisition Successful IPO with the Group’s market capitalization exceeding US$ 1bn 2008-2014 2008-2010 Launch of Beluga brand to Europe
Slide 7: Beluga Group's route to the consumer
BELUGA GROUP’s route to the consumer OUR CONSUMER SPECIALIST RUB 28bn >3 mn RETAIL & E-COM LTM revenue customers 1H20211 DISTRIBUTION & EXPORT 12 1,350 100 20+ logistic salesmen countries exported centers of export brands OWN PRODUCTION & IMPORT 5 5 18 50 Spirits in-house countries suppliers product
Slide 8: Strategic importance of establishing own retail chain
Strategic importance of establishing own retail chain Key advantages for BELUGA GROUP Winelab’s value add to the Group’s business Higher contribution1 margin compared to other sales channels, Direct access to customers, better 2020 In-house brands understanding of customers’ behavior Import brands C
Slide 9: Robust operational performance
Robust operational performance Total shipment Import In-house brands In-house brands shipment Import brands shipment shipment, % shipment, % Mln, 9L cases Mln, 9L cases Mln, 9L cases 21% 1.3% 15% 1.5% 85% 21% 17.4 14.4 15.7 14% 14.0 15.0 2.4 11% 13.0 9% 86% 89% 1.7 91% 7.2 7.3 1.3 6.3 6.2 1.1 13% 16
Slide 10: Key investment highlights
Key investment highlights Large and resilient spirits 01 and wine market №1 spirits producer in Russia1 02 and №4 vodka producer globally2 03 Vertically integrated operations Diversified business with 04 strong brand portfolio 05 Beluga brand active global expansion Launch of own specialized retail
Slide 11: Large and resilient spirits and wine market
01. Large and resilient spirits and wine market Large and resilient spirits and wine market Vodka is the most popular spirits category Despite economic slowdown, vodka across the world with Russia alongside USA consumption in Russia remains stable while being the key markets market continues its gro
Slide 12: №1 spirits producer in Russia and №4 vodka producer globally
02. №1 spirits producer in Russia and №4 vodka producer globally №1 spirits producer in Russia and №4 vodka producer globally Russia Globally #1 Distilled spirits producer #4 Vodka producer Unmatched leadership In Duty-Free super-premium domestically and further #1 Flavored spirits producer1 #2 vodk
Slide 13: Unmatched leadership in Russia in major spirits categories
02. №1 spirits producer in Russia and №4 vodka producer globally Unmatched leadership in Russia in major spirits categories Market share in 2020 by volume №1 vodka & flavored liquors producer1 №1 flavored liquors producer Global Spirits 13.6% 17.7% OPVZ 11.9% 18.7% Roust 10.4% Sordis 6.8% ASG 8.1% G
Slide 14: Vertically integrated operations
03. Vertically integrated operations Vertically integrated operations 713 Premium spirits & wine stores stores1 with focus on development in Moscow, St. Petersburg Retail 4 and Far East 12 1,250 Federal logistic centers people spread across Russia in logistics 110+ 50 18 Distribution 3 3.1 Import im
Slide 15: Diversified business with large share of non-vodka categories
04. Diversified business with strong brand portfolio Diversified business with large share of non-vodka categories Key direction for business diversification BELUGA GROUP Production & Distribution revenue evolution3 Distribution platform focused Growing share 100% 100% on direct sales of export oper
Slide 16: Selected brands' performance in 1H2021
04. Diversified business with strong brand portfolio Selected brands’ performance in 1H2021 shows ongoing trend of sales mix premiumization In-house brands Vodka Spirits Wine Beluga Arkhangelskaya Belaya Fox & Dogs, Green Golubitskoe Beluga (export) sova whiskey Baboon, gin Estate, Tete de Cheval +
Slide 17: Strong brand portfolio: own brands
04. Diversified business with strong brand portfolio Strong brand portfolio: own brands Vodka Brandy / Cognac / Wine Other spirits Liquor (gin, tequila, rum, etc.) Super Super premium premium Sub-premium / Sub-premium / premium premium Middle Middle Mainstream Mainstream Sources: Company data Notes:
Slide 18: Strong brand portfolio: imported brands
04. Diversified business with strong brand portfolio Strong brand portfolio: imported brands Brandy / Cognac / Whisky Wine Other spirits Liquor (gin, tequila, rum, etc.) Super Super premium premium Sub-premium / Sub-premium / premium premium Middle Middle Mainstream Mainstream Sources: Company data
Slide 19: Continuous focus on innovations with successful ramp-up of new products
04. Diversified business with strong brand portfolio Continuous focus on innovations with successful ramp-up of new products Track record of launching new products 2016 2017 2018 2019 2020 1H2021 – new products R – rebranded products R R R R Continuous focus on innovations enables the Group to respo
Slide 20: Increasing footprint on the fast-growing wine market
04. Diversified business with strong brand portfolio Increasing footprint on the fast-growing wine market Russia’s wine market overview BELUGA GROUP’s wide portfolio of imported wine Russia is among Top-8 highest wine consuming countries globally and №1 wine consumer in CIS and Eastern Europe, as
Slide 21: Golubitskoe Estate: in-house premium wine production
04. Diversified business with strong brand portfolio Golubitskoe Estate: in-house premium wine production 241ha 900ha 2.5 mn 55% 1.2 mn area in operation additional area bottles per year capacity utilization, bottles of Golubitskoe in property production capacity 2020 Estate wine sold in 2020 Own wi
Slide 22: Beluga – flagship brand supplied all around the world
05. Beluga brand active global expansion Beluga – flagship brand supplied all around the world #1 Top-5 ultra-premium vodka brands globally Market shares of ultra-premium vodka brands globally by volumes, 20201 #2 32.2% #3 27.0% Premium vodka brand 10.4% 7.4% Premium vodka in Russia and CIS 4.5%
Slide 23: Beluga brand export operations snapshot
05. Beluga brand active global expansion Beluga brand export operations snapshot Europe2 17 28% Export department, 25 Moscow US as one of the United States core export markets 18 14% CIS3, excl. Russia 4 9% x2 higher +73% +30% export gross Beluga sales Beluga sales margin compared volumes volumes Mi
Slide 24: Successful ramp-up of own specialized retail chain
06. Launch of own specialized retail chain to further increase level of controlled sales Successful ramp-up of own specialized retail chain applying efficient Direct-to-customer approach Stores rollout dynamics Winelab in-store average ticket # of stores (end of period) Like-for-like sales: RUB 713
Slide 25: Winelab's diversified product portfolio and strong financial results
06. Launch of own specialized retail chain to further increase level of controlled sales Winelab’s diversified product portfolio and strong financial results SKUs structure1 39% 10% Share of Winelab Share of Winelab in BELUGA by categories by brands in total agencies’ GROUP’s total in-house brands r
Slide 26: Expanding Winelab's e-commerce with mobile app as a key driver
06. Launch of own specialized retail chain to further increase level of controlled sales Expanding Winelab’s e-commerce with mobile app as a key driver Website and App traffic Web Mobile app Winelab online sales structure ‘000 visits1 conversion, % conversion, % 1H 2021, % 2.4% 2.5% 3,047 35.7% Webs
Slide 27: Strong financial performance
07. Strong financial performance Strong financial performance Net revenue1 EBITDA Net income In 1H 2021, consolidated RUB bn RUB bn % EBITDA margin RUB bn % NI margin revenue grew by 20% mainly 12.6% 13.4% 12.0% 2.1% 1.8% 3.7% due to growth of exports as well as steady growth of Winelab retail chain
Slide 28: Consistent growth across all segments
07. Strong financial performance Consistent growth across all segments Production & Distribution Retail revenue Food revenue Strong top-line growth across revenue dynamics dynamics dynamics all business segments RUB bn RUB bn RUB bn Segment share, % Segment share, % Segment share, % Production & Dis
Slide 29: The Group significantly de-levered in the last 3 years
07. Strong financial performance The Group significantly de-levered in the last 3 years Total debt evolution Total debt statistics summary Net Debt / LTM EBITDA RUB bn Total Debt / LTM EBITDA RUB mn 30 Jun’20 30 Jun’21 declined significantly from 3.7x in 1H 2019 to 1.5x in 1H 2021 3.9x 3.2x 2.1x 23,
Slide 30: Industry leading return metrics
07. Strong financial performance Industry leading return metrics ROIC1 (IFRS 16) RUB mn 2018 2019 2020 BELUGA GROUP’s % dividend policy is in place with its main peers 14.9% 13.3% 13.1% EBITDA 4,251 6,505 9,207 10.3% 9.8% 9.0% BELUGA GROUP demonstrated the highest EBITDA Conversion 112% 69% 94% to O
Slide 31: Strategy Overview
STRATEGY OVERVIEW 02 s e c t i o n
Slide 32: Key components of Beluga Group's strategy
Key components of BELUGA GROUP's strategy Further diversification of brand portfolio with focus Expanding retail on high-margin products 01 02 network Benefiting from customer demand shift Increasing number of stores to 2,500, from vodka into categories with higher targeting mainly Moscow and St
Slide 33: Indicative multi-factor revenue growth opportunities
Indicative multi-factor revenue growth opportunities BELUGA GROUP is planning to double revenue by 2024 by implementing the following key strategic initiatives RUB bn 05 03 04 02 Continuous shift to Beluga brand global Digitalization and operational excellence ~130 e-commerce expansion Expanding ret
Slide 34: Digitalization and operational excellence
05. Digitalization and operational excellence Digitalization and operational excellence Production process and Supply chain Transportation Deep Big Data analysis warehouses automation management system automation in distribution and retail Snapshot reporting based on Optimal inventories planning
Slide 35: Strategic KPIs
Strategic KPIs OPERATING METRICS FINANCIAL METRICS 2020 2024 2020 2024 Number of 645 ~2,500 4-year Net Winelab stores Focus on Moscow revenue CAGR 15% ~20% & Saint-Petersburg DOUBLE Share of Retail THE BUSINESS +2-3 34% ~45% EBITDA margin 14.5% in total revenue1 p.p. E-commerce share in Retail reven
Slide 36: Focus on Sustainable Development
FOCUS ON SUSTAINABLE DEVELOPMENT 03 s e c t i o n
Slide 37: Continuous adherence to high ESG standards
Continuous adherence to high ESG standards 88% 209k industrial waste cubic meters of water Environmental recycled, 2020 consumed, 2020 ISO 9001:2018, Organic Donations Switch to NNPB2 ISO 22000:2018, vodka to Ocean technology, HACCP 22000 development in Foundation decreasing bottle weight 100% 153k
Slide 38: Supporting the UN Sustainable Development Goals
Supporting the UN Sustainable Development Goals High priority Decent work and Responsible consumption economic growth and production SDGs1 of 10,000 employees in BELUGA GROUP Increasing the efficiency BELUGA Ensuring opportunities for career development of natural resources usage Using energ
Slide 39: High standards of corporate governance with independent members on the Board
High standards of corporate governance with independent members on the Board of directors ALEXANDER NIKOLAY 4 New members on MECHETIN CEO Founder of BELUGA GROUP BELOKOPYTOV Chairman of the BoD CFO the Board of Directors SERGEY MIKHAIL MOLCHANOV KASHIRIN Head of Business Chief Operating Officer Deve
Slide 40: Well-experienced management with strong commitment
Well-experienced management with strong commitment Key team members stay with the company since its inception Alexander Sergey Nikolay Sergey Dmitry Mikhail Konstantin Oleg Vladislav Mechetin Molchanov Belokopytov Kuptsov Erokhin Kashirin Prohorov Yasenov Bazhenov CEO COO CFO Head of Corporate Head
Slide 41: Shareholder structure and dividend policy
Shareholder structure and dividend policy Shareholder structure1 Dividend policy A. Mechetin Free float In September 2020, the Board of Directors of BELUGA GROUP approved the Group's new dividend policy, 58% 24% which sets out the following key principles: Quasi-treasury Management 13% 5% At least 2
Slide 42: Appendix
BELUGA APPENDIX
Slide 43: Financial performance summary
Financial performance summary In RUB bn unless stated otherwise 1H 2019 1H 2020 1H 2021 CAGR'19-21 Revenue reached RUB 30.8 bn growing at CAGR of 19.7% since 1H 2019 Total shipment, mn 9L cases 6.3 7.2 7.3 7.9% 20% y-o-y revenue growth in 1H 2021 # of stores 545 622 713 14.4% Revenue Revenue growt
Slide 44: Income statement
Income statement RUB mn 2020 1H 2020 1H 2021 YoY, % Net revenue 63,292 25,629 30,752 +20% Cost of sales (40,614) (16,452) (19,624) +19% Gross profit 22,678 9,177 11,128 +21% margin 35.8% 35.8% 36.2% +0.4 bp G&A expenses (2,849) (1,468) (1,796) +22% Distribution expenses (12,985) (5,201) (6,783) +30%
Slide 45: Balance sheet
Balance sheet RUB mn 31 Dec’20 30 Jun’20 30 Jun’21 RUB mn 31 Dec’20 30 Jun’20 30 Jun’21 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Share capital 1,580 1,580 1,580 Property, plant and equipment 12,880 13,382 13,839 Treasury shares (347) (338) (206) Goodwill 3,5
Slide 46: Cash Flow
Cash Flow RUB mn 2020 1H 2020 1H 2021 Operating profit, continuing operations 6,842 2,303 2,423 Operating loss, discontinued operations (315) (136) (16) Depreciation and amortization 2,365 1,158 1,278 Other non-cash transactions 21 148 92 Other gain / losses - 5 (26) Changes in working capital (297)
Slide 47: Beluga Group's efficient route to the market
BELUGA GROUP’s efficient route to the market 5 production facilities across Russia with >20mn 9L total capacity 1 ethanol plant with 1mn 9L total capacity 42 Saint Petersburg 1 vineyard Riga 241 ha fertile vineyards Saint Petersburg Arkhangelsk 40 Arkhangelsk region 900 ha additional land Moscow Kra
Slide 48: Recent acquisition of Chugunovsky Ethanol Plant Distillery
Recent acquisition of Chugunovsky Ethanol Plant Distillery expanding the production chain 01 02 03 04 Nizhny Novgorod 1mn DCL Lux & Alpha Up to 100% ethanol plant annual production class of organic capacity utilization, location capacity alcohols produced 2021E The Group's vertically integrated busi
Slide 49: Store opening step-by-step guidance
02. Expanding retail network Store opening step-by-step guidance General premise Current stores’ location Geo-analysis regarding Risk estimation and selected scoring evaluation and benchmarking competitors’ location location approval 5-7% Initial location Proximity to shopping Number of competitors
Slide 50: Key marketing activities
Key marketing activities BELUGA GLOBAL ACTIVATIONS INDOOR ACTIVITY ONLINE ON-TRADE 50
Slide 51: Non-core business
Non-core business Divested Divested Crops Poultry Meat processing Dairy Crops/land operations 100% vertically integrated business Operations in the Far East Operations in the Far are located in Saratov, the black located in Saratov region consists Region of Russia East Region of Russia earth
Slide 52: Contact us!
IR Contact Details Sergey Kuptsov Anton Chertkov Head of Corporate Finance Investor Relations Manager Tel: +7 (495) 510-26-95 Tel: +7 (495) 775-30-50 E-mail: ir@belugagroup.ru E-mail: ChertkovAA@belugagroup.ru Contact us! 52