Tarczynski Sa Class F · GPW:TAR
Tarczynski Sa Class F — Investor Day (May 2025)
49 slides from Tarczynski Sa Class F's investor day presentation, May 19, 2025
Slide 1: Investor Day
Investor Day
Slide 2: Disclaimer
Disclaimer This Presentation and any other information provided (including orally by the Company's management) or made available in connection with this Presentation (the "Presentation") is for illustrative purposes only and the information contained herein may not be complete or exhaustive. The inf
Slide 3: Agenda for the meeting
Agenda for the meeting Section 1 - Key information about Tarczynski Group Section 2 - Market section Section 3 - Growth strategy Section 4 - Financial results overview Q&A 3
Slide 4: Presenters
Presenters Radosław Chmurak Marcin Dymitruk Dawid Tarczyński Tomasz Tarczyński Krzysztof Cetnar Vice-President of the Vice-President of the Member of the Member of the Member of the Management Board, Management Board, Management Board, Management Board, Management Board, Sales and Marketing Chief Fi
Slide 5: Key information about Tarczynski Group
Key information about Tarczynski Group
Slide 6: The Company's history dates back to 1991
The Company's history dates back to 1991 Selected key export markets of the company 2024+ Establishment of special purpose vehicles in 2017 Romania and the UK Strengthening 2016 Construction of a position as the new snack market leader in production hall in meat snacks in 2014 Ujeździec Mały Poland
Slide 7: Tarczynski is one of the largest and fastest growing producers of meat snacks in Poland
Tarczynski is one of the largest and fastest growing producers of meat snacks in Poland Tarczynski continues to grow revenues, and since 2014 has more than quadrupled the scale of its operations PLN 2,068m PLN 1,911m 2014-2024: PLN 1,614m >15% CAGR PLN 1,194m PLN 1,025m PLN 878m PLN 733m PLN 760m PL
Slide 8: Tarczynski is one of the strongest Polish brands according to NielsenIQ
Tarczynski is one of the strongest Polish brands according to NielsenIQ Best Brand Overall Best Polish Brand Best Gen Z Food & Beverage Brand #1 #1 #1 #2 #2 #2 #3 #3 #3 #4 #4 #4 #5 #5 #5 #6 #6 #6 #7 #7 #7 #8 #8 #8 #9 #9 #9 #10 #10 #10 Źródło: Best Brand Ranking, GfK, Nielsen 8
Slide 9: Key investment highlights
Key investment highlights 1 Undisputed leader of the growing protein snacks market in Poland Dynamic growth in the scale of the Group's operations, which has translated into a more than 2 doubling of revenues since 2020 to PLN 2.1 billion Significant player in the global meat snacks market with a gr
Slide 10: Tarczynski is the clear leader in the kabanos market in Poland
Tarczynski is the clear leader in the kabanos market in Poland and has a strong 1 position in the sausage market, where it is dynamically gaining market share Kabanos and sausages account for a significant value share of the fixed-weight meat market, exceeding 35% of the category Breakdown of Tarczy
Slide 11: Continuously growing financial results of the Company
2 Continuously growing financial results of the Company Revenue Gross profit on sales EBITDA Net income CAGR: +13% 2,068 CAGR: +18% 1,911 531 540 255 CAGR: +23% 1,614 214 CAGR: +11% 120 112 386 170 98 12.3% 10.5% 11.2% 2022 2023 2024 2022 2023 2024 2022 2023 2024 2022 2023 2024 Revenues (PLNm) Gross
Slide 12: Major player in the global meat snacks market with export share above 30%
Tarczynski is a major player in the global meat snacks market with an export 3 share of more than 30% of the Company’s revenues Exports remain the fastest growing segment with very strong potential for further growth Value of export revenues (PLNm) 25.4% 28.7% 30.1% Growing export potential to the U
Slide 13: The Company cooperates with the world's largest store chains
The Company cooperates with the world's largest store chains and sells products 3 both under the Tarczynski and Snack It brands and in a private label model Source: Company 13
Slide 14: The brand development strategy is based on clear priorities
4 The brand development strategy is based on clear priorities Rich product offering under the strong umbrella brand Traditional Kabanos Innovative Kabanos For children Sausages Protein alternatives Other Key pillars of growth Key pillars of growth Key pillars of growth Key pillars of growth Kabanos
Slide 15: Nearly 80% of revenue is from products under the Tarczynski brand
Nearly 80% of the Company's revenue is the sale of products under the 4 Tarczynski brand A wide portfolio of Tarczynski products Share of Tarczynski and private label brands in total sales 100% 19.6% 19.8% 21.7% 21.8% 80.4% 80.2% 78.3% 78.2% Private Label 2021 2022 2023 2024 Tarczynski brand Private
Slide 16: Optimization process maintaining in-house meat cutting and processing competence
The Company has undergone a process of optimization by maintaining in-house 5 competence in meat cutting and processing, while outsourcing distribution Purchase of Sales and 0 Breeding 1 2 Meat cutting 3 Processing 4 meat distribution No in-house Cooperation with external Cooperation with external I
Slide 17: State-of-the-art production facilities constantly being expanded
State-of-the-art production facilities that are constantly being expanded due 6 to increasing demand for Company’s products Production Plant in Ujeździec Production Plant in Bielsko- Mały Biała Kabanos, sausages and dried Main type of products Hams and block products sausages CAGR: 19% Production ar
Slide 18: Significant investments in research & development
Significant investments in research & development activities strengthen the 6 Company's position as a market leader in innovation The Company's projects are winning more The amount of funding to be used in the Company received grants for innovative and more subsidies every year future is more than P
Slide 19: Experienced management to support long-term growth strategy
7 Experienced management to support long-term growth strategy Jacek Radosław Marcin Dawid Tomasz Krzysztof Kamil Tarczyński Chmurak Dymitruk Tarczyński Tarczyński Cetnar Wawrzyniak President of the Vice-President of Vice-President of Member of the Member of the Member of the Member of the Management
Slide 20: Market section
Market section
Slide 21: Polish kabanos and sausage market has seen significant growth
Polish kabanos and sausage market has seen significant growth, ,while the frequency with which consumers buy these products still has potential to catch-up The Polish market for cold cuts has grown at a significant pace in ...and one of the fastest growing subcategories was kabanos, recent years, re
Slide 22: Packaged kabanos and sausages growing at the expense of the weight format
The category of packaged kabanos and sausages, in which Tarczynski specializes, recorded dynamic growth at the expense of the format by weight The share of packaged kabanos accounts for more than 84% of The packaged kabanos market is growing rapidly and is the main growth the market and is growing a
Slide 23: Tarczynski is a key brand in the kabanos category
Tarczynski is a key brand in the kabanos category, almost every Polish consumer knows it and it is the most frequently purchased Competitor 2 Competitor 1 Private label (manufactured by Tarczynski) KNOWLEDGE 91% 54% 34% 83% 54% 53% EVER BOUGHT 76% 29% 18% 80% 42% 39% NOW BUYING 61% 12% 7% 93% 58% 42
Slide 24: Tarczynski is one of the most recognizable brands in the sausage category
Tarczynski is one of the most recognizable brands in the sausage category, and over the past few years brand awareness has increased significantly Competitor 1 Competitor 2 KNOWLEDGE 65% 88% 69% 57% 76% 63% EVER BOUGHT 37% 67% 43% 49% 61% 38% NOW BUYING 18% 41% 17% 66% 82% 60% MOST OFTEN BUYS 12% 33
Slide 25: Growth strategy
Growth strategy
Slide 26: Multi-dimensional growth plan: production capabilities, margins, innovation
Multi-dimensional growth plan involving scaling production capabilities, projects that positively impact margins, and innovation Additional growth Structural change in lever kabanos recipe while maintaining quality Circular economy Overseas expansion Scaling up kabanos production capabilities Plant
Slide 27: Planned increase in capital expenditures in 2025-2026
Planned increase in capital expenditures in 2025-2026 in response to growing demand with the help of funds from the share issue Capex projected based on available funding sources and proceeds from the Capex in 2021 - 2024 (PLNm) share issuance PLN 725m Innovative projects in the area of PLN 180m 308
Slide 28: Financial results overview
Financial results overview
Slide 29: Strong revenues growth and falling costs lead to rising earnings
Strong revenues growth and falling costs lead to rising earnings Revenues (PLNm) Record gross profit on sales (PLm) CAGR: 13% CAGR: 18% 2,068 1,911 531 540 1,614 386 23.9% 27.8% 26.1% 2022 2023 2024 2022 2023 2024 Gross profit (PLNm) Gross profit margin (%) Increase in EBITDA (PLNm) Evolution of net
Slide 30: Strong cash-generation capabilities and growing dividends
Strong cash-generation capabilites and dividends that have been growing for years Comments on the results 1 Cash flow from operating activities (PLNm) 1 Very high cash conversion ratio. Growing cash flow from 87% 107% 111% operations with increasing ability to convert EBITDA to 283 cash 229 148 2 Di
Slide 31: Capital expenditures with stable debt levels
Capital expenditures to strengthen the Company's leadership position with stable debt levels Comments on the results 1 Capex (PLNm) 1 Increasing capital expenditures to strengthen the 13.0% 11.8% 14.9% Company's leadership position in Poland and allow for 308 faster growth abroad. 210 226 Investment
Slide 32: Stable working capital thanks to skillful management
Stable working capital thanks to skillful management Comments on the results 1 Working capital (PLNm) NWC as 1 Stable working capital as a % of revenue. 3.0% 4.3% 3.8% % of revenue Inventories at similar levels, despite significant revenue 49 growth, and falling trade receivables demonstrate the 83
Slide 33: Summary
Summary
Slide 34: Key points about the Company
Key points about the Company 1 Tarczyński is the undisputed leader of the Polish kabanos market with a market share of about 70%. Tarczynski has been dynamically gaining market share in the sausage category, recently becoming 2 the market leader, but still with plenty of room for growth in the count
Slide 35: Q&A
Q&A
Slide 36: Appendix
Appendix
Slide 37: Optimized production process to ensure product quality control
Optimized production process to ensure product quality control at various stages Kabanos production process Sausages production process Business model Raw meat 1 2 3 4 5 Raw meat 1 2 3 4 5 6 Weighing Sifting spices Resting the Weighing Mixing Mixing Resting the Investments Shredding Shredding Mixing
Slide 38: Distribution maintaining good relationships with store chains
Distribution conducted in such a way as to maintain good relationships with store chains backed by success in the form of outperforming the market Company maintains relationships with store Optimized distribution assuming chains with the help of Key Account Company's volume sales significantly Busin
Slide 39: Cooperation with retail chains on a win-win basis
Cooperation with retail chains on a "win-win" basis, where the Company effectively creates purchasing needs through promotional campaigns Business model Good product visibility at the point of sale Use of promotional campaigns during periods of increased purchasing activity Christmas events Investme
Slide 40: ESG transformation closely linked to development direction
ESG transformation closely linked to the Company's development direction Business model Environment Society Corporate governance ✓ Implementation of sodium alginate production, which will ✓ Elimination of preservatives - introduction of a line of natural ✓ Implementation of Ethical Trading Policy an
Slide 41: Proceeds from the issue will be used for kabanos expansion and innovations
Proceeds from the issue will be used for Kabanos' power expansion projects and innovations as part of the 2025-2026 investment plan Business model Project Description of the investment Business objective Financial Objective Capex Innovative projects in Optimize margins by Investments High-tech prote
Slide 42: Every third TV commercial in meat products is a Tarczynski ad
Every third TV commercial in the meat products category is an ad for the Tarczynski providing leverage from the umbrella brand Jan Effectiveness of marketing Business model Julia Zugaj Blowek Smolasty Blachowicz campaigns(1) Tarczynski is the only company in SoV Meat Products the meat snacks market
Slide 43: Marketing campaigns in key export markets
In key export markets, Tarczynski actively conducts marketing campaigns to increase awareness of the brand Advertisements in local ... generate millions of ... translating into significant increases in languages... displays ... sales Business model Emission of advertisement 15 PLN million 12 9 TV: 6
Slide 44: Almost every Polish consumer buys kabanos or sausages
Almost every Polish consumer buys kabanos, sausages or sausages, which translates into the attractiveness of the market Business model Frequency of buying given meat products by Polish consumers More than 90% of Poles buy kabanos and sausages, the Company's key products Investments kabanos 13% 27% 2
Slide 45: Growth in products with increased protein content
One of the most important trends experiencing significant growth is the category of products with increased protein content Business model Protein yogurts Milk-based protein desserts White protein cheeses Tarczynski protein products CAGR: +37.8% Investments PLN 1.1bn CAGR: +77.5% PLN 272m CAGR: +33.
Slide 46: Consolidated statement of comprehensive income
Consolidated statement of comprehensive income Business model PLN thousand 2022 2023 2024 Sales revenue 1,613,780 1,911,104 2,067,614 y/y growth (%) 35.10% 18.40% 8.20% Cost of sales -1,227,393 -1,380,360 -1,527,215 Investments Gross profit on sales 386,387 530,744 540,398 Gross margin (%) 23.90% 27
Slide 47: Consolidated statement of financial position
Consolidated statement of financial position Business model PLN thousand 2022 2023 2024 PLN thousand 2022 2023 2024 Assets 1,335,175 1,521,214 1,728,809 Liabilities 1,335,175 1,521,214 1,728,809 Non-current assets 917,804 1,178,537 1,437,197 Equity 459,699 541,459 633,077 Property, plant and equipme
Slide 48: Consolidated statement of cash flows
Consolidated statement of cash flows Business model PLN thousand 2022 2023 2024 Cash from operating activities 147,857 228,932 283,248 Gross profit 104,967 123,528 125,165 Non-cash changes Depreciation 42,615 59,209 74,223 Investments Other 31,490 44,856 61,643 Changes in working capital Inventories
Slide 49: Thank you
Thank you