Slide 1: 2017 Earnings Presentation
2017 Earnings Presentation April 2018
Slide 2: Disclaimer
This presentation has been prepared by Beluga Group, Co. (the “Company“, or about health related issues; “Beluga Group”) and together with its subsidiaries. By attending the meeting where the • increased competitive product and pricing pressures and unanticipated actions by presentation is made, or
Slide 3: Company's 2017 Financial Highlights
COMPANY’S 2017 FINANCIAL HIGHLIGHTS 4% total volume increase Sales grew 6% and reached 61 bln. Rubles Net Revenue increased by 4% to 37 bln. Rubles Operating profit increased by 15% to 2,9 bln. Rubles EBITDA grew 13% to 3,6 bln. Rubles EBITDA and Operating margins improved by 0,7 pp. 138% growth of
Slide 4: Company's Highlights
COMPANY’S HIGHLIGHTS Leadership • #1 distilled spirits producer in Russia • #1 vodka producer in Russia • #1 independent importer in Russia • #1 flavored spirits producer including bitters, herbal liquors, flavored liquors • #3 brandy producer Market position • 12% legal vodka market share • 10% bra
Slide 5: Consolidated Revenue
CONSOLIDATED REVENUE Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) 40 000 +4% 37 303 33 000 29 245 +4% 30 393 35 903 22 000 Alcohol (1) 11 000 20 000 0 2016 2017 8 000 6 609 +3% 6 779 6 000 Food (1) 4 000 0 2016 2017 2 000 0 2016 2017 Consolidated Revenue split, %
Slide 6: Consolidated Gross Profit
CONSOLIDATED GROSS PROFIT Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) 16 000 14 000 13 010 -7% 14 518 -6% 12 064 13 675 Alcohol (1) 12 000 7 000 8 000 0 2016 2017 4 000 1 600 1 485 +4% 1 545 Food (1) 800 0 2016 2017 0 2016 2017 Consolidated Gross Profit
Slide 7: Consolidated EBITDA and Net Profit
CONSOLIDATED EBITDA AND NET PROFIT EBITDA, million RUB G&A and distribution expenses , million RUB G&A Distribution expenses 4 000 3 625 12 000 +13% 3 218 8 000 9 346 -17% 7 719 2 000 10.2% 9.7% 4 000 +19% 2951 2478 0 0 2016 2017 2016 2017 Main reasons of 19% year-on-year increase in G&A: 4% volume
Slide 8: Beluga Group Debt Structure
BELUGA GROUP GROUP DEBT STRUCTURE 2016 2017 Change, % Debt evolution, million RUR Debt 9 053 11 012 +22% 12 000 Long tem debt Short term debt Net debt 11 012 Cash & cash equivalents 1 010 819 -19% 9 503 Net Debt 8 043 10 193 +27% 8 449 8 000 Equity & reserves 19 453 19 448 0% (1) 10 193 Total capita
Slide 9: Income Statement
INCOME STATEMENT 2014 2015 2016 2017 YoY, % Net revenue 28 163 30 706 35 903 37 303 4% Cost of sales (16 135) (18 033) (21 385) (23 628) 10% Gross profit 12 028 12 673 14 518 13 675 -6% Gross margin 43,0% 41,0% 40,4% 36,7% -3,7 pp. G&A expenses (2 411) (2 582) (2 478) (2 951) 19% Distribution expens
Slide 10: Cash Flow
CASH FLOW 2014 2015 2016 2017 Operating profit 2 274 2 109 2 486 2 848 Depreciation and amortisation 699 776 726 768 Other non-cash transactions 90 (123) 183 124 Changes in working capital (2 316) 1 332 (1 231) (1 771) CF from operating activities 747 4 094 2 164 1 969 Interest paid (1 265) (1 918)
Slide 11: Appendices
APPENDICES APPENDICES
Slide 12: Company's Strategy
COMPANY’S STRATEGY STRATEGY Become the dominant spirits company in Russia with a diversified portfolio of brands and products and best in class distribution platform DIVERSIFIED BRAND PORTFOLIO, COVERAGE OF ALL CONTINUED DEVELOPMENT OF THE DISTRIBUTION SEGMENTS PLATFORM WITH A FOCUS ON DIRECT SALES
Slide 13: Beluga Group Russia Market
BELUGA GROUP RUSSIA MARKET RUSSIAN SPIRITS MARKET (MAIN CATEGORIES), 2016 TOP 5 BRANDY PRODUCERS, 2017 100 000 90 000 volume 000, 9L Cs. 11,8% 10,8% 10,2% 8,4% - - - - 7,4% - 30 000 20 000 13 000 11 456 10 000 4 333 - Vodka Flavoured Brandy & Whisky Allians ALVISA Beluga Group KVC Kin Liqours (LVI)
Slide 14: Leading Brands Segment Shares
LEADING BRANDS* SEGMENT’S SHARES VODKA PORTFOLIO SUPER-PREMIUM LOW-PREMIUM 70% 16% 14,7% 60,1% 13,4% 12% 8,3% 7,8% 35% 8% 6,5% 6,5% 5,9% 11,3% 9,4% 4% 3,1% 3,1% 2,8% 2,4% 0% 0% STANDARD ECONOMY 16% 7% 6,2% 12,6% 5,6% 5,5% 12% 4,9% 9,9% 4,6% 3,9% 3,7% 8% 7,4% 7,4% 6,6% 4% 5,6% 5,3% 4% 0% 0% *Source:
Slide 15: Diversified Portfolio of National Brands - Vodka Portfolio
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS VODKA PORTFOLIO Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium Retail Price per 0,75 L RUR 405 RUR 525 RUR 600 RUR 750 RUR 1200 – RUR 5000 Russky Beluga Belenkaya Arkhange VEDA Beluga Beluga Trans Beluga Beluga TSAR Lyod Myagkov Noble (Whi
Slide 16: Developing Portfolio of National Brown Spirits Brands
DEVELOPING PORTFOLIO OF NATIONAL BROWN SPIRITS BRANDS BROWN SPIRITS PORTFOLIO Brandy Whiskey Flavored liquors Balsam and herbal liqueurs Rum Gin Low-middle Middle Low-premium Premium Retail Price per 0,75 L RUR RUR RUR RUR RUR 750 RUR 325-465 RUR 615 RUR 585 RUR 570 RUR 550 705 765 840 880-1100 Zolo
Slide 17: Beluga Group Imported Spirits Portfolio
BELUGA GROUP IMPORTED SPIRITS PORTFOLIO IMPORT. SPIRITS SCOTCH WHISKY IRISH WHISKY BRANDY COGNAC TEQUILA BOURBON GIN SAMBUCA BITTER RUM ABSINTHE 17
Slide 18: Beluga Group Strategy in Imported Wine Business
BELUGA GROUP STRATEGY IN IMPORTED WINE BUSINESS IMPORT. WINE FOCUS ON LEVERAGE INVEST IN TRADE DEVELOPMENT NOBLE MIDDLE&PREMIUM DISTRIBUTION MARKETING AND HOUSE FOR PREMIUM PRICE SEGMENTS PLATFORM IN WINE BRAND BUILDING IMPORTED PRODUCTS DEVELOPMENT 18
Slide 19: Contacts
CONTACTS Address: 30/1 Obrucheva Str., bldg. 1 Moscow 117485 Russia Phone: +7 495 510 2695 +7 495 775 3050 Fax: +7 495 510 2697 +7 495 775 3052 E-mail: ir@sygroup.ru www.sygroup.ru 19
Slide 20: ers
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