Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — FY2017 Earnings Presentation
46 slides from Kofola Ceskoslovensko As's earnings presentation, Mar 23, 2018
Slide 1: 2017 Results Investor presentation
W kofola GeskoSlavensko IM20I7 RESULTS Investor presentation 23 March 2018
Slide 2: Producer of non-alcoholic beverages in Central and Eastern Europe
One of the most significant producers of non-alcoholic beverages in Central and Eastern Europe Revenues 12M17: € 264M EBITDA 12M17: € 36M 7 production plants 2,182 employees end of production at the end of 2017 EUR/CZK ex. rate: 26.330 countries for expansion
Slide 3: Market positions and brand rankings
No. 2 syrup brand No. 2 player in the soft drinks market No. 3 cola brand No. 1 syrup brand Leading private label soft drinks producer No. 1 player in the soft No. 1 player in the soft drinks market drinks market both in Retail & HoReCa No. 1 water brand in both 35% HoReCa market share Retail & HoRe
Slide 4: Kofola Group Key 12M Highlights
ofola Group Key 12M Highlights* Net debt / EBITDA Revenue per countries (czKmil) 2017 2,50 43894529 Profit for the period 2016 1,59 (czk mil) S1&other ag 188 Si& other * adjusted for one-offs
Slide 5: Reconciliation of reported and adjusted results
Reconciliation of reported and adjusted results Reported One-offs Adjusted One-offs: • Net operating income from the sale of warehouse of CZK 2.9 mil. CZK mil. CZK mil. CZK mil. (in Slovenian segment). Revenue 6 963.3 - 6 963.3 • Costs connected with SAP implementation of CZK 6.3 mil. (in Slovenian
Slide 6: Results comparison 12M17
Results comparison 12M17 12M16 Change Change •Revenue decrease caused by lower sales in Poland that were partially offset by the increase in CzechoSlovakia from Rajec, CZK mil. CZK mil. CZK mil. % Rauch, Semtex and mainly Vinea, increased sales in Ugo and Revenue 6 963.3 6 999.0 (35.7) (0.5%) increa
Slide 7: 4Q17 highlights
• increased revenues by 2.3 % in 4Q17 vs. 4Q16 despite low December sales • increased gross profit by 3.6 % thanks to lower costs of sugar, very good performance in Adriatic and Premium Rosa (Polish segment) • first effect of the end of sugar import quotas • increased EBITDA by 14.7 % * adjusted for
Slide 8: Results comparison 4Q17
Results comparison 4Q17 4Q16 Change Change •Revenue increased by 2.3 %, a net effect of decreased revenue in Poland in amount of CZK 78 mil. (22.3 %) and increased CZK mil. CZK mil. CZK mil. % revenue in the rest of the Group. Revenue 1 609.2 1 573.2 36.0 2.3% •Increasing gross profit, increased gro
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Slide 10: Kofola sales on CzechoSlovak Retail & HoReCa market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 6,000 60% 5,000 47% 49% 50% Gross Profit 4,000 40% 1,603 1,590 Margin 3,000 30% HoReCa 2,000 20% 2,786 2,938 1,000 10% Retail 0 0% 2016 2017
Slide 11: CzechoSlovak adjusted EBITDA & EBITDA margin
2017 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) 1,000 18% 20% 900 16% 800 786 15% 700 740 600 500 10% 400 300 Share in group’s 5% 200 EBITDA: 78% 100 0 0% 2016 2017
Slide 12: Packaging and sweeteners costs
(CZK m) 975 966 969 180% 520 180% 960 483 160% 490 449 160% 460 426 950 140% 430 140% 120% 400 120% 370 925 100% 340 100% 22% 23% 310 20% 14% 19% 24% 80% 80% 900 280 26% 25% 250 24% 37% 40% 60% 60% 39% 220 875 40% 190 60% 40% 41% 37% 37% 20% 160 56% 56% 20% 130 850 0% 100 0% 2015 2016 2017 2015 2016
Slide 13: Ugo sales and number of bars
Ugo sales + Ugo franchise sales Substantial increase in number of bars (CZK m) 479 84 379 128 73 118 61 39 50 351 261 20 45 12 2016 2017 2012 2013 2014 2015 2016 2017 Own Franchises
Slide 14: Excellent growth of Ugo bottles sales
Excellent growth of Ugo bottles sales 2016 2017
Slide 15: 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 margin from own brands 2,000 20% is growing. 1,800 19% 20% 1,600 1,400 15% Gross Profit Margin 1,200 1 008 1,000 637 10% Private label 800 600 400 5% 728 612 Retail 200 0
Slide 16: Polish 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 200 10% Wielkopolski) was closed at 8% YE2017. 8% 6% 150 133 4% 2% 2% 100 0% Share in group’s -2% EBITDA: 2 % -4% (2016: 13
Slide 17: Poland: management and priorities
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 18: Retail & HoReCa sales in Adriatic market
Retail & HoReCa sales Still room to grow in in Adriatic market HoReCa with full soft (CZK m) drink portfolio 50% Decrease of Gross Profit 1,400 45% Margin influenced by 39% acquisition of Studenac 1,200 40% 1,000 Gross Profit 275 30% Margin 800 201 600 20% HoReCa 400 785 616 10% 200 Retail 0 0% 2016
Slide 19: Adriatic adjusted EBITDA & EBITDA margin
EBITDA margin should improve Adjusted EBITDA & EBITDA margin in near future due to post acquisition synergies (CZK m) 250 18% 18% 20% 200 15% 188 150 148 10% Share in group’s 100 EBITDA: 20% 5% 50 0 0% 2016 2017
Slide 20: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 21: Revenue
(CZK m) Total CZ+SK 6,999 6,963 4,389 4,528 2016 2017 12M17 – Revenue decrease (0.5%) attributable to Poland, partly offset by growth of sales in other regions. CzechoSlovakia increased by 3.2%.
Slide 22: Revenue by country
(CZK m) 2016 2017 Czech Republic Revenues increased by 3.3%, due to increased sales of Rauch, Rajec, Vinea and Semtex. UGO increased revenue by 2 808 2 899 39.2%. Slovakia Revenues growing by 3.0%, keeping leading position in both 1 629 Retail and HoReCa segment in terms of market share. Sales 1 736
Slide 23: EBITDA
(CZK m) Total CZ+SK 1 064 950 786 740 2016 2017 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
Slide 24: Net debt and net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 2.5 1.6 2,376 1,689 2016 2017 Net debt in 2017 vs. 2016 influenced by decreasing cash exceeding increase of debt. Healthy Net debt/adj. EBITDA (<3). Decrease of cash in 2017 vs. 2016 due to capex, acquisitions, dividends and purchase of Kofola shares by Rade
Slide 25: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital •Operating CF increased, thanks to positive working capital cash flow effect (decreased 720 receivables 2017/2016 vs. increased receivables 655 2016/2015) which exceeded lower cash profit and higher tax paid (mainly in Slovakia). 528 499 •Decrease of Capex – net ef
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Slide 27: Acquisitions in 2017
• Important part of the current strategy in Poland. • The biggest salad producer in Czechia, • Forward looking company that records double-digit effect of CZK 46 mil. on 2017 group sales growth. revenues. • Kofola will expand its portfolio of healthy food • Production of approx. 5000 salads daily. p
Slide 28: Acquisition of LEROS in March 2018
In March 2018 acquired LEROS – producer of high quality products from medicinal plants and quality natural teas. Founded in 1994, LEROS has established its 40-year tradition in the state-owned company Léčivé rostliny - Zbraslav, whose origins date back to 1954. Another segment for Kofola - based on
Slide 29: Kofola INFO
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Slide 30: 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
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Slide 32: The complete portfolio of strong brands
The complete portfolio of strong brands arctic” $ Own oe BS nase WI Studenac Ciera) studena. oS CS KA g GRODZISKA Maa Frene icense evian BADOIT.
Slide 33: 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 34: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola HoReCa sales in total sales 2017 40% 35% 31% 30% 24% 21% 20% 33% 10% 39% 61% 0% 2012 2013 2014 2015 2016 2017 67% HoReCa Retail** * * based on Data Servis and Canadean (volume terms); ** including private label
Slide 35: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 25% 25% Kofola gain vs. Competitor 1 Kofola gain vs. Competitor 1 +3.7 %p. +7.1 %p. 20% 20% 19% 15% 15% 17% 15% 13% 10% 10% 5% 5% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data
Slide 36: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +3.4 %p. Kofola gain vs. Competitor 1 30% +7.4 %p. 30% 35% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen
Slide 37: Current and target ownership structure 2018
Current ownership structure Target ownership structure 2018 Free float 6.04% Kofola Group via Free float RADENSKA d.o.o. 30.00% 5.00% AETOS a.s. CED Group S.a.r.l. 68.00% 20.96% AETOS a.s. 65.00% Kofola Group via Radenska 5.00%
Slide 38: Ownership changes completed and planned
Already has taken place: 1. Establishment of AETOS a.s. 2. KSM (Jannis Samaras and his family), René Musila and Tomáš Jendřejek transfered their shares in Kofola to AETOS. 3. CED Group S.a.r.l. (private equity fund) sold 12 % of its shares in Kofola to AETOS for 440 CZK/share. 4. RADENSKA d.o.o. (a
Slide 39: Share price information 2017
Share price information 2017 (CZK) KOFOLA ČS PX (CZK) 6M average share price 414 CZK 500 1 200 6M average daily transaction activity 625 pcs. 450 419 1 150 362 400 1 100 350 1 050 1 078 300 1 000 924 250 950 200 900
Slide 40: Dividend policy and dividends for FY2016
Aim of dividend distribution to shareholders of Kofola - 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 pay
Slide 41: Management board
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 43: Adjusted consolidated financial results
Adjusted consolidated financial results 2017* 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 6,963,278 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (4,134,081) (4,211,593) (4,352,102) (3,881 359) (4,300,767) Gross profit 2,829,197 2,787,367 2,838,736 2,394 032 1,987
Slide 44: Consolidated statement of financial position
Consolidated statement of financial position 31.12.2017 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,786,195 4,915,863 7,190,838 6,275,391 6,287,894 Current assets 1,792,673 3,104,020 3,395,290 1,787,877 1,734,245 Total assets 6,578,868 8
Slide 45: 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 46: 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
Kofola ČeskoSlovensko a.s. — FY2017 Earnings Presentation on 6ix