Milkiland Foods Plc · GPW:MLK
Milkiland Foods — Milkiland — Investor Presentation (May 2012)
24 slides from Milkiland Foods's investor presentation, May 2012
Slide 1: Management presentation
Management presentation May 2012
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. IMPORTANT NOTICE By attending the meeting where this presentation is made, you agree to be bound by the following limitations. In
Slide 3: Agenda
Agenda 1. Milkiland at a glance 4 2. Attractive dairy markets 5 3. Milkiland overview 9 4. Results of 2011 and outlook for 2012 15 5. Update on Q1 2012 results 21 3
Slide 4: Milkiland at a glance
Milkiland at a glance Our markets and sales, 2011 Our products 65% Full range of consumer dairy products and dry milk products Russian Federation 2011 5% Focus on cheese & butter (yellow palette) and whole milk products (white palette), 54% and 36% 30% of 2011 revenues respectively Ukraine Kazakhsta
Slide 5: Attractive dairy markets
Attractive dairy markets
Slide 6: Attractive dairy markets in Russia and Ukraine…
Attractive dairy markets in Russia and Ukraine… Market split by country (2010, EUR bn*) ca. 190 million combined population ca. EUR 16.4 billion dairy market size in 2010 Ukraine 2,0 Established traditions of dairy consumption 16.4 Russia 14,4 High historical growth in key segments Market growth by
Slide 7: … with significant growth potential…
… with significant growth potential… Consumption of drinking milk (2010) Current per capita consumption lags behind 120 100 neighbouring European countries 100 (kg per capita) 73 75 80 63 57 Historical level of consumption in Russia 60 33 and Ukraine was significantly higher 40 17 20 0 Consumption o
Slide 8: … and ample room for further consolidation
… and ample room for further consolidation Top 10 dairy players in Russia and Ukraine Dairy market supply structure (2010) Sales (2010) 10,100 kt 1,368 kt 750 kt 179 kt 100 # Company Prod. assets EUR m % of total 1 Danone-Unimilk* Russia, Ukraine 1,568 9.6% 2 Wimm-Bill-Dann** Russia, Ukraine 1,302 7
Slide 9: Milkiland overview
Milkiland overview
Slide 10: Our Strategic goals
Our Strategic goals Dairy consumption Strong local players Milkiland is well- in Russia and can capitalize on positioned to lead Ukraine poised for market growth and market growth led by consolidation trend consolidation across cheese and the CIS whole milk products Our aim is to become a clear CIS
Slide 11: Strong organic growth with selective M&A
Strong organic growth with selective M&A Development of whole Acquisition #1 Ukrainian milk operations integration cheese exporter Acquisition of Ostankino Brand portfolio in 2008 streamlining 280 270 Main cheese production capacities 259 acquired and modernized By 2007 Milkiland becomes the largest
Slide 12: Milkiland today – integrated dairy company
Milkiland today – integrated dairy company Warehousing Marketing Raw milk supply Production & distribution & sales •Long-standing •11 production •Extensive •Three umbrella relationships with facilities with milk distribution network brands (Dobryana, suppliers across 17 processing capacity in Ukrain
Slide 13: Diversified and flexible business model…
Diversified and flexible business model… Ostankino Mena Revenue by geography (EUR m, 2011) Chernigiv Sumy Other Kyiv Okhtyrka countries Romny 5% Slavuta Russia Kharkiv Lviv Ukraine 65% Myrhorod 280 30% Lactis Dnipropetrovsk Donetsk Milk intake capacities: Agrolite Zaporizhya 10-50k tonnes 50-100k to
Slide 14: Multiple sales and distribution channels
Multiple sales and distribution channels Hypermarket and supermarket Revenues by distribution channel (EUR m, 2011) chains active in the CIS Key accounts 22 key accounts in 2011, Other Key including Metro, X5, Auchan, accounts Fozzy and Furshet Local retail 280 Key distributors of cheese and Exports
Slide 15: Financial performance results of 2011 and outlook for 2012
Financial Milkiland:performance results of 2011 and outlook for 2012p 15
Slide 16: The Group's sales and EBITDA: GEO split
The Group’s sales and EBITDA: GEO split 65% •The majority of sales both in value and 2011 volume terms in 2011 still came from 5% Russian Federation Russian market: 30% • c.75% of WMP and c.68% of cheese volumes produced by the Group were sold in Russia; Ukraine • approx. 65% of revenue (63% in 2010
Slide 17: The Group's sales: segment breakdown
The Group’s sales: segment breakdown • The revenue split between the business segments 8% 10% has not changed to much in comparison with 2010: • 54% of revenue in 2011 (55% in 2010) contributed by 37% 2010 55% 36% 2011 54% Cheese&butter segment, and • 36% of revenues (37% in 2010) comprised by the w
Slide 18: Financial Results in 2011: P&L perspective
Financial Results in 2011: P&L perspective Key P&L financial highlights Key Financials, 2010-2011 280 256 •Revenue of the Group grew by c.9% to c. EUR 280 million driven by better sales both in terms of pricing and volumes •Gross profit depressed by 18% mainly on 95 78 a backdrop of de-facto cancell
Slide 19: Results of 2011: marketing efforts
Results of 2011: marketing efforts Key marketing and branding events • Further deployment an international Dobryana brand in the core markets, including revitalization of its design: New brand design and successful • Cheese sales were concentrated under this promotion of recently brand, non-branded
Slide 20: Strategy fulfillment in 2011 and strategic outlook for 2012
Strategy fulfillment in 2011 and strategic outlook for 2012 Strategic steps were made in 2011 • Development of a sustainable system of raw milk supply: support of milk cooperatives establishment and increase of in-house milk production; • Development of an agricultural operations of the Group: acqui
Slide 21: Update on Q1 2012 Results
Update on Q1 2012 Results 21
Slide 22: Key financial Results of the Group in Q1 2012
Key financial Results of the Group in Q1 2012 Key financial highlights Key Financials, Q1 2012- Q1 2011 • Revenue grew by 6% to EUR 67.7 million 67,7 63,7 driven by better volume sales in the WMP segment, mainly in Russia • Gross profit depressed by 13% on a backdrop of higher than in Q1 2011 cost o
Slide 23: Further development of integrated milk supply chain
Further development of integrated milk supply chain • In Q1 2012 the Group made next steps to more secured affiliated raw milk supply system: • Development of the diary cooperatives: Structure of milk supply in Ukraine, 2011-Q1 2012 • 16 milk cooperatives supported by the Group practically stabilize
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