Papoutsanis Sa · ATHEX:PAP
Papoutsanis Sa — Investor Presentation (October 2018)
28 slides from Papoutsanis Sa's investor presentation, Oct 16, 2018
Slide 1: Creating wellness, producing value
Αθήνα, HELEX 16 OCTOBER 2018 “Creating wellness, producing value”
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by PAPOUTSANIS S.A. based on publicly available information solely for the purposes of this presentation and cannot be used for any other purpose nor can it be addressed to any other person than the ones attending this presentation. It cannot, therefore
Slide 3: Extroversion, Local Production, Products, Sustainability
Extroversion: Growing international presence. 3rd largest European soap producer. Local Production: Great production capacity, with ability to increase further, technological excellence and export activity Products: A large portfolio of consumer and retail, exclusive, hotel and private label product
Slide 4: History
History 1972 1870 Company listed on the Athens Stock Exchange Dimitris Papoutsanis founds the company in Lesvos island, Greece AOCK c) te 2001 Company’s operations relocated to new, state of-the-art production facilities near Halkida 1913 1965 Company’s operations relocated to Kifissia Pa PAPOUTSANI
Slide 5: Company Highlights
Company Highlights • One of the largest manufacturers of bar soap and hotel amenities in Europe. • Fully integrated production plant | Cutting edge technology • A historical brand in Greece, PAPOUTSANIS, holds a leading position in bar soaps segment (B2C) and in hotel amenities industry (B2B). • Suc
Slide 6: Strive for Quality & Innovation
Strive for Quality & Innovation R&D and Quality Assurance • Fully equipped and manned in-house R&D laboratory • 100-150 own innovative formulas/year • Excellent know-how in developing solid and liquid soap formulations • Meets high standards of multinational FMCG Companies and Retailers Fully certif
Slide 7: Corporate Social Responsibility
Corporate Social Responsibility • Support to organizations, institutions and socially vulnerable groups. • Medical Insurance for employees, continuous training • Use of natural gas, re-circulation of solid residues, use of up-to-date technology • Member of the Roundtable on Sustainable Palm Oil Asso
Slide 8: Capital Expenditure | Production Facilities
Capital Expenditure | Production Facilities • Extended over a 60,000m2 land in Halkida, just 70 km north of Athens • One of the largest and most modern soap manufacturing facilities in Europe • Over 100.000.000 units per year | 50% Spare capacity • Production Lines: – Production of various bar soap
Slide 9: Global Presence
Global Presence Exports in more than 25 countries Countries: UK, Germany, Italy, France, Spain, Portugal, Romania, Fyrom, Servia, Bulgarian, The Netherlands, New Zeland, Mexico, Lithuania, Slovakia, Albania, Belgium, Cyprus, Austria, Sweden, USA, Canada, Russia, Japan, Hong Kong, Australia etc. 9
Slide 10: Business Units (2018 E)
Business Units (2018 E) Diversification of channels and product portfolio Hotel Own Amenities Brands 25% 32% Contract Specialty Manufacturing Soap Bases 29% 14% 10
Slide 11: Own Brands - Retail
Own Brands - Retail • Strong Brand heritage with 148 years of presence in Greece • Market Shares: – Bar Soaps 35% (Leader) – Liquids 11% • 100% presence in organized trade • 3.500 point of Sales • 50.000 placements in Greece • Strong BTL activity • Innovative product launches every year and strong 3
Slide 12: Own Brands – Selective Market & Pharmacies
Own Brands – Selective Market & Pharmacies OLIVIA - Beauty & The Olive Tree When tradition meets modern technology ... the result bears the name Olivia: A line of natural products for body and hair care blessed with beneficial properties of Organic Olive Oil & Organic Olive Extracts. Olivia combines
Slide 13: Hotel Amenities
Hotel Amenities Papoutsanis’ care is extended to provide high quality natural toiletry and beauty products to its numerous hotel clients and their customers in Greece and abroad Own Brands: Contract Manufacturing & Strategic partnerships with key industry players and multinational producers of hotel
Slide 14: Third Party – Private Label Customers
Third Party – Private Label Customers Drawing from 148 years of accumulated experience in the cosmetics industry, PAPOUTSANIS is the cosmetics manufacturer of choice for some of the largest Consumers Goods companies and retailers in Greece and internationally. The company boasts, among others, Unile
Slide 15: Specialty Soap Bases
Specialty Soap Bases • Development of innovative soap bases addressing various market trends • Probably the most automated saponification production facility in Europe • Sole producer in Greece Green Olive Care Tallow Soap Noodles Specialty Soap Noodles Melt & Pour Base 15
Slide 16: Recent Awards
© European O Business © Awards" Recent Awards i) —— Lineal Moet Pa PAPOUTSANIS SINCE 1870 16
Slide 17: Key figures 2012 – 2017
Key figures 2012 – 2017 in ‘000 Euro Sales Gross Profit & Gross Profit margin 20.775 21.000 6.500 5.830 30,0 18.032 5.500 4.975 25,0 18.000 17.170 20,0 16.031 4.500 3.939 4.029 15.231 15.614 3.538 15,0 15.000 3.500 2.665 10,0 2.500 5,0 12.000 1.500 0,0 2012 2013 2014 2015 2016 2017 2012 2013 2014 20
Slide 18: Cash Flow 2016-2017
Cash Flow 2016-2017 2017 2016 Inflows from operational activities 2.441 721 Inflows from investment activities -1.615 -1.940 Inflows from financing activities 315 232 Total increase of cash and cash equivalents 1.141 -987 Cash and Cash Equivalents Beginning of Period 778 1.765 Cash and Cash Equivale
Slide 19: Balance Sheet 2016-2017
Balance Sheet 2016-2017 2017 2016 ASSETS Non current Assets 25.727 25.411 Inventories 3.516 3.399 Trade & other receivables 4.951 5.523 Other current assets 1.919 778 Total Assets 36.113 35.111 CAPITAL AND LIABILITIES Long term loans 6.700 4.390 Other long term liabilities 5.245 5.170 Short term loa
Slide 20: Operation performance
Operation performance 170 150 149 144 130 132 127 125 120 Days of sales outstanding (DSO) 110 110 112 107 Creditors’ turnover 97 100 96 95 95 90 90 Stock turnover 87 86 70 68 50 2012 2013 2014 2015 2016 2017 Working Capital and Net Bank Debt 44,0% 43% 42% 42,0% 40,0% 41,7% 40,8% 37% 38,0% 36% 35% Op
Slide 21: H1 2018 vs H1 2017
H1 2018 vs H1 2017 H1 2018 H1 2017 Delta Turnover 11.981 10.004 20% Cost of Goods -8.640 -7.186 20% Gross Profit 3.341 2.818 19% Other Income 225 193 17% Sales and Distribution expenses -1.352 -1.219 11% Administrative expenses -1.127 -961 17% Research and Development expenses -74 -80 -8% Other expe
Slide 22: Strategy Overview
Strategy Overview Pa PAPOUTSANIS SINCE 1870 22
Slide 23: Opportunities – Initiatives – Strategy (1/4)
Opportunities – Initiatives – Strategy (1/4) • Current total company EBIDTA margin between 12 % and 13% • Branded Greece: Primarily Mass Market Single digit growth vs. 2017 Continue Investment - Strategic Exports: Primarily Olivia Significant growth vs. 2017 Continue growth – Control Sales Networks
Slide 24: Opportunities – Initiatives – Strategy (2/4)
Opportunities – Initiatives – Strategy (2/4) • Hotel Greece: - Single digit growth vs. 2017 - Introducing new own lines to expand our brands - New collaborations to better address the needs of the 6 – 7 star and exclusive boutique hotels Exports: - Significant growth vs. 2017 -Continue growth via: -
Slide 25: Opportunities – Initiatives – Strategy (3/4)
Opportunities – Initiatives – Strategy (3/4) • Contract – PL Greece: - Significant growth vs. 2017 - Potential for further growth Exports: - Contraction vs. 2017 due to financial difficulties of one large customer - Expect to recover in 2019 both with respect to sales level and EBIDTA margin as new
Slide 26: Opportunities – Initiatives – Strategy (4/4)
Opportunities – Initiatives – Strategy (4/4) • Specialty Soap Bases Greece: - Mature market - PAPOUTSANIS sole large noodle producer Exports: - 2018 was second year of explosive growth - Continuously consolidating our position in the global market both with respect to new grades and direct customers
Slide 27: Going Forward - 2019
Going Forward - 2019 • In terms of sales expect similar growth like 2018 • Room for significant further cost reduction across all fronts plus effect of 3.5 mil CAPEX done over last 2 years to translate into higher productivities and lower costs • Reduced need for additional CAPEX unless some project
Slide 28: Thank you!
Thank you! PAPOUTSANIS SA 71st Km of National Road Athens – Lamias 34 100 Chalkida, Greece T.: +30 22620 86430 email: info@papoutsanis.gr - www.papoutsanis.gr 28