Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — ATHEX Mid Cap Conference 2018
27 slides from Kri-kri Milk Industry's conference presentation, April 2018
Slide 1: Kri Kri S.A. Milk Industry April 2018
Kri Kri S.A. Milk Industry April 2018
Slide 2: Table of Contents
Table of Contents 1 KRI KRI at a glance 2 Segments Strategic Choices 3 Facilities, CapEx, Location 4 Financials 5 Share Information | April 2018 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance Basic Figures Investment FY 2017 ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. Turnover EBITDA ✓ High returns and dividend payments to shareholders. €79m €13m Management ✓ An experienced and loyal management team that has led
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Increase ✓ Performance during Greek crisis -26% 250 239 Exports €m per year 226 Greek GDP (€bn) 205 190 185 185 185 184 24,1 2008 2009 2010 2011 2012 2013 2014 2015 2016 Kri Kri Sales & Profit before Taxes Performance (€m) 16,0 +68% +133% 11,4 11,6 12,0 9,9
Slide 5: KRI KRI at a glance: Awards
KRI KRI at a glance Awards «Employment Growth» Best Company’s award for MID – SMALL CAP 2017 Innovative product Super Spoon (ice cream) - ANUGA 2017 • One of the most profitable companies • Staff Growth • Leading Position in the Industry Gold & Silver award 2017 for • High Credit Standing innovative
Slide 6: KRI KRI at a glance: Human Resources
KRI KRI at a glance Human Resources • An experienced and effective management team Employee Satisfaction Survey 2017 • 94% «I feel proud of all we have succeeded» • 350 Employees • 95% «I feel like I offer to the company» • 91% «I would like to continue to work here for a long time» • 3.000 training
Slide 7: Kri Kri at a glance: Basic Segments
Kri Kri at a glance Basic Segments (in € m) Yogurt Greece Ice Cream Greece 2017: 36,1 +8,4% 2017: 18,9 +8,2% 2016: 33,3 2016: 17,4 Yogurt Exports Ice Cream Exports 2017: 21,4 +60,4% 2017: 2,7 +15,3% 2016: 13,3 2016: 2,4 Source: Company data (IFRS) | April 2018 | 7
Slide 8: Strategic Choices – Yogurt Greece
Strategic Choices – Yogurt Greece Market Outlook * 1 in 4 Greeks consume yogurt produced by Kri Kri • Market size in retail prices • Market share per Category (%,€m) • Market Share per Supplier (Share >10%) 14,2 KRI KRI 7% 13,5 11% Strained 21,8 12 Leader 23,8 20 Set 7% Fruit 11,4 13 Competitor 2 18
Slide 9: Yogurt Greece: Branded products strategy
Strategic Choices – Yogurt Greece Branded products strategy • 2nd place in the Greek Yogurt market Improving the quality of products with continuous • Focus on Strained Category investments 7% 11% Strained 12 Brand re-launch in strained 20 Set yogurt category «my 7% Fruit authentic Greek yogurt» 13
Slide 10: Yogurt Greece: Branded products strategy, innovation
Strategic Choices – Yogurt Greece Branded products strategy • Innovation • Leader in kids yogurt (market share 35%) ✓ Strained Yogurt 0% ✓ High Protein ✓ Super fruits & cereals ✓ Perfect snack for people who exercise 7% 7% 11% 11% Strained Strained 12 ✓ Responding to international nutrition 20 12 Se
Slide 11: Yogurt Greece: Private label products strategy
Strategic Choices – Yogurt Greece Private label products strategy ✓ Maintaining around 70-80% of total Leading to considerable Indicative Customers in Greece yogurt private label Production Economies of Scale ΚRΙ ΚRΙ | April 2018 | 11
Slide 12: Strategic Choices – Yogurt Exports: Market Outlook
Strategic Choices – Yogurt Exports Market Outlook United Kingdom (£m) Italy (€m) Basic European markets Total Yogurt: 1.487 +2% Total Yogurt: 1.580 -3% size in retail prices Greek/Greek style Greek/Greek style (strained): 324 +7% (strained): 173 -4% Germany (€m) Netherlands (€m) {2016} Total Yogurt:
Slide 13: Yogurt Exports: Private label products strategy
Strategic Choices – Yogurt Exports Private label products strategy Private label products capture a big share of It offers a strategic way to enter markets ✓ Strategic Goal is to expand our consumers wallet in Europe of interest with lower entry cost and build products portfolio relationships UK Ind
Slide 14: Yogurt Exports: Strategy per Country
Strategic Choices – Yogurt Exports Strategy per Country UK Central Europe • Placing branded products to existing customers • Brand re-launch in strained yogurt category • Expanding PL products portfolio • Maintaining position in Germany • Increasing PL products sales in Belgium Italy New Markets • D
Slide 15: Strategic Choices – Ice Cream Greece
Strategic Choices – Ice Cream Greece Market Outlook *2nd brand in the Greek ice cream market • Market size in retail • Market Share per Brand prices KRI KRI 15,0 Leading Brand 21,2 Brand 3 13,0 220 €mil Brand 4 12,7 Private Label 24,2 Rest 13,9 Volume Source: Nielsen (December 2017) | April 2018 | 1
Slide 16: Ice Cream Greece: Branded products strategy
Strategic Choices – Ice Cream Greece Branded products strategy ✓ Expand distribution network (currently 15.000 points of sale) ✓ Increase market share ✓ Maintain high profitability ✓ Private label products for Greek S/M ✓ KRI KRI SA represents Greece in the World Ice Cream Producers Organization IIC
Slide 17: Strategic Choices – Ice cream Exports
Strategic Choices – Ice cream Exports • Global Market size in Increasing • Europe is around 35% of Global market and 2017 trend reaching PL products are around 50% of European Target Market $69b in 2022 market $10 billion $ 57 PL Europe billion Source: Statista (2017), Company estimations | April 20
Slide 18: Ice cream Exports: Branded and private label strategy
Strategic Choices – Ice cream Exports Branded products strategy Private label products strategy • Distribution Network building in Countries with proximity: • Looking for opportunities for • Cyprus Private Label products in • Albania European Market • FYROM ✓ Won a contract with ALDI-UK • Iraq Total
Slide 19: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Ε=25.000m² The amount of planned CapEx is eligible for 35% state subsidy as • Capability of further income tax deduction. development in land Ε= 68.000 m² Planned CapEx for 2017-2018 (€m) Capacity Utilization Before After Investment Inve
Slide 20: 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 Central Maced
Slide 21: Risks & Strategies
Risks & Strategies Risks Strategies Sudden changes in raw material prices Examining ways of hedging Competition threats ‘Barrier to entry’ investments Improving competitiveness Lowering growth of Greek/Greek style yogurt in European markets Exploring Diversification opportunities Consolidation of re
Slide 22: FY 2017 – Financial Results
FY 2017 – Financial Results Key Financial figures IFRS - €m 2017 2016 YoY% Sales 79,2 66,6 +19,0% Margins 2017 2016 Change Gross Profit 28,4 25,7 +10,4% Gross Profit 35,9% 38,7% -282bps EBITDA 12,4 11,0 +13,3% EBITDA 15,7% 16,5% -80bps EBIT 9,9 8,9 +11,9% EBIT 12,5% 13,3% -80bps Profit before taxes
Slide 23: FY 2017 – Financial Results: Operating result per Segment
FY 2017 – Financial Results Operating result per Segment Calculations – Reconciliation with P&L Operating IFRS - €m IFRS - €m Sales Margins Change (bps) 2017 Result Yogurt Total 57,4 9,8 17,0% +60 Operating Result 12,0 Greece 36,1 6,1 17,0% +273 Plus / (Minus) Exports 21,4 3,6 17,0% -474 Administrat
Slide 24: Key Financials per year
Key Financials per year ✓ Sales per business unit (€m) Operating cash 79 Liquidity Gearing Net Debt (€m) flows (€m) 68 67 67 2017 8,0 2,3 17% 0,3 63 22 58 23 21 20 2016 8,5 2,8 17% 2,2 23 Financial 23 Ice Cream 2015 7,9 1,8 21% 5,7 Yogurt Position 47 57 Indicators 2014 1,6 1,5 16% 6,1 45 40 45 35 20
Slide 25: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +107% 2012 2013 2014* 2015 2016 2017 04.2018 (as per 23/4/2018) 4,50 Total stockholder return 3,9% 34,4% -8,0% 5,9% 6,2% 59,0% 33,1% 4,00 Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 3,0% 2,9% 3,50 Share price increase 0% 31,4% -8,0%
Slide 26: KRI KRI Share Information, Shareholders, Contact
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 76% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Serres Legal Entities : 14% PC 62125 Individuals : 10% Greece Ticker symbols: Tel.: +30 23210 68300
Slide 27: 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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