Longino & Cardenal Spa · MIL:LON
Longino & Cardenal Spa — Investor Presentation (October 2018)
27 slides from Longino & Cardenal Spa's investor presentation, Oct 22, 2018
Slide 1: Longino & Cardenal Investor Presentation
Longino & Cardenal Investor Presentation 2018: year of the AIM listing. First-half consolidated results Riccardo Uleri – CEO Cristina Sambuchi – CFO London, 22nd October 2018
Slide 2: Group companies
Group companies HEAD OFFICE LONGINO & CARDENAL S.P.A. (ITALY) 2
Slide 3: The business
The business For more than 30 years, Longino & Cardenal has been active in the B2B distribution of high quality food products. RARE AND EXQUISITE FOODS FOR THE FINEST TABLES 3
Slide 4: Premium Price Target
Target Premium Price NICHE MARKET MASS MARKET Italy B2B suppliers: Market Value 2017*: € 10.0 bn Based on 2017 market analysis 4
Slide 5: Mission
Mission To be the most trusted name and a synonym of excellence in the premium food & beverage market. SCOUTING CULINARY EXCELLENCE HIGH QUALITY STANDARDS BRAND AWARENESS CLIENTS OF HIGH STANDING Exclusive products, 360° quality: Well-known brand, Players in often ahead of Premium recognizable and
Slide 6: A model to be replicated abroad
A model to be replicated abroad 2013 2015 SOON Hong Kong Dubai New York Solid position in Italy with a presence in Hong Kong and Dubai International network of suppliers and possibility to replicate the business model 6
Slide 7: Successful vertical integration
Successful vertical integration Acquisition in 2015 of Il Satiro Danzante, supplier from Mazara del Vallo specialized in red prawns Rebranding of the company with the name Don Gambero Reorganization of the product range Improved management 7
Slide 8: The numbers
The numbers 70+ 1,800+ 72 3 1,000+ Sales reps Partners ALL OVER Carefully SELECTED PRODUCTS 4 Offices ALL OVER ITALY DUBAI Orders PER HONG KONG THE WORLD Area managers THE WORLD WEEK 28.5 3,000+ 4,500+ 30 53 2017 Turnover € Packages Clients Years Qualified SENT SERVED OF EXPERIENCE RESOURCES CONSOLI
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Slide 10: The listing - timing
The listing - timing 1st half 2018 June 11, 2018 - General meeting of shareholders approves increase in capital for listing June 26, 2018 - Board approves increase in capital for listing July 2, 2018 – Admission to trading 2nd half 2018 July 4, 2018 – Start of L&C trading on AIM Italia 10
Slide 11: The listing - numbers and performance
The listing - numbers and performance The listing operation involved the placement of: 1,250,000 new shares 125,000 shares in circulation Shares were placed at €3.60/share Amount raised: €4.95 m, including €4.5 m from capital increase Float: 22% of share capital On the listing date, th
Slide 12: The listing - numbers and performance
The listing - numbers and performance Ownership structure pre-IPO Ownership structure post-IPO 9,00% 22,00% 7,20% 70,80% 91,00% Riccardo Uleri Cristina Sambuchi Riccardo Uleri Cristina Sambuchi Float 12
Slide 13: The listing - numbers and performance
The listing - numbers and performance After an initial period of extremely lively trading, the share price became more stable. On October 1, 2018, the price was €5.12/share, up 42.2% since the IPO Longino & Cardenal capitalization on October 1 is Euro 32.0 m. + 42.2% 3.60 13
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Slide 15: Highlights – Turnover and EBIT
Highlights – Turnover and EBIT CONSOLIDATED Figures in thousands of Euros 30.000 € 1.522 € 28.543 € 1.600 € 25.701 € 1.363 € 1.400 € 25.000 € 21.305 € 1.200 € 17.415 € 1.033 € 20.000 € 1.000 € 902 € 857 € 15.000 € 800 € 558 € 600 € 10.000 € 323 € 400 € 5.000 € 200 € 81 € 0€ 0€ 2015 2016 2017 2017 co
Slide 16: Highlights - Consolidated income statement
Highlights - Consolidated income statement 30.06.2018 30.06.2017 Var. Var. % REVENUE 14,810,165 12,811,910 1,988,255 +15.60% EBITDA 605,693 395,492 210,201 + 53.15% EBITDA MARGIN 4.09% 3.09% 32.49% EBIT 500,911 326,966 173,945 + 53.20% EBIT MARGIN 3.38% 2.55% 32.53% PRE-TAX PROFIT 434,839 142,423 29
Slide 17: Highlights – Balance sheet & cash flow
Highlights – Balance sheet & cash flow 30.06.2018 31.12.2017 Var. Var. % Non-current assets 1,707,373 1,436,497 270,876 Net working capital 3,376,299 2,637,520 738,779 Reserves (547,836) (502,336) (45,500) CAPITAL EMPLOYED 4,535,836 3,571,680 964,155 +26.99% NET EQUITY 810,618 516,496 294,122 +56.95
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Slide 19: L&C Group – Strategy
L&C Group – Strategy GROWTH STRATEGY Organic By acquisition - ↑ Product portfolio - Internationalization (planned opening in NYC) - ↑ Strengthen commercial network - Upstream vertical integration - ↑ Geographic coverage - ↑ Number of customers - ↑ Average turnover per customer 19
Slide 20: CFO & Investor Relations Officer
CFO & Investor Relations Officer Media Relations NomAd & Specialist Cristina Sambuchi iCorporate Integrae SIM S.p.A. cristina.sambuchi@longino.it Arturo Salerni + 39 335 1222631 Via Meravigli 13 – 20123 Milan T. +39 02.93968532 arturo.salerni@icorporate.it T +39 02 87208720 Rita Arcuri +39 333 26081
Slide 21: Appendix
Appendix 21
Slide 22: Highlights - Consolidated income statement
Highlights - Consolidated income statement REVENUE Revenue increased by 15.6%, confirming the growth achieved in previous years. All group companies enjoyed double-digit revenue growth: ITALY + 13.2% HK + 22.1% DB +70.0% PROFIT MARGIN The profit margin comes to 22%, an increase of 1.1 poin
Slide 23: Highlights - Consolidated income statement
Highlights - Consolidated income statement OVERHEADS Overheads as a percentage of revenue were essentially unchanged from one half-year to the next. Marketing costs increased as a result of the greater number of initiatives carried out: a product launch meeting at the start of the year, three trav
Slide 24: Highlights - Consolidated income statement
Highlights - Consolidated income statement DEPRECIATION Depreciation came to €104.8 thousand, compared with €68.5 thousand in the first half of 2017. The increase reflects capital expenditure during the second half of last year and in early 2018, for the expansion and modernization of the industri
Slide 25: Highlights - Consolidated income statement
Highlights - Consolidated income statement NET FINANCIAL AND NON-RECURRING CHARGES The steady improvement in the group's average debt balances during the first half of 2018, along with the gradual depreciation of the euro against the accounting currencies of foreign subsidiaries, led to a signific
Slide 26: Highlights - Balance sheet and cash flow
Highlights - Balance sheet and cash flow Balance sheet figures for the first half of the year are in line with those at December 31, 2017 as they do not reflect the impact of the listing. Therefore, NFP does not include the proceeds of the IPO. Net working capital increased by €738.8 thousand co
Slide 27: Highlights - Balance sheet and cash flow
Highlights - Balance sheet and cash flow Cash flow absorbed by operating activities decreased by June 30, June 30, % 56.8%, even as revenue and profit rose substantially. 2018 2017 change 1. Pre-tax profit 478,047 261,197 83.0% Investing activities, which absorbed €376 thousand in Depreciation,
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