Slide 1: Earnings Presentation for the year ended 31 December 2016
Earnings Presentation for the year ended 31 December 2016 5 April, 2017
Slide 2: • changes in political, social, legal or economic conditions in Russia generally, or in
This presentation has been prepared by Synergy, Co. (the “Company“, or “Synergy”) and together with its subsidiaries. By attending the meeting where the presentation is made, or by reading the presentation slides, you agree to the following limitations and notifications. This presentation is strictl
Slide 3: Company's 2016 Financials Highlights
COMPANY’S 2016 FINANCIALS HIGHLIGHTS 16% 18%volume increase volume increase Sales grew 21% and reached 57.4 bln. Rubles Sales grew 22% and reached 24.7 bln. Rubles Net Revenue increased by 17% to 35.9 bln. Rubles Net Revenue increased by 24% to 16.1 bln. Rubles Alcohol segment Net Revenue increased
Slide 4: Company's Highlights
COMPANY’S HIGHLIGHTS Leadership #1 distilled spirits producer in Russia #1 independent importer in Russia #1 flavored spirits producer including bitters, herbal liquors, infusions #2 brandy producer Market Position 16% legal vodka market share 9% brandy market share 21% infusion market
Slide 5: Consolidated Revenue
CONSOLIDATED REVENUE Consolidated Revenue, million RUB Revenue breakdown by segments, million RUB (1) +23% 29 294 40 000 35 903 30 000 +17% 23 771 Alcohol (1) 30 706 20 000 30 000 10 000 20 000 0 2015 2016 6 900 -4% 6 609 7 000 10 000 Food (1) 3 500 0 2015 2016 0 2015 2016 Consolidated Revenue split
Slide 6: Consolidated Gross Profit
CONSOLIDATED GROSS PROFIT Consolidated Gross Profit, million RUB Gross Profit breakdown by segments, million RUB (1) 14 000 +20% 13 033 10 840 Alcohol (1) 15 000 +15% 14 518 12 673 7 000 46% 45% 10 000 0 2015 2016 2 000 1 821 -18% 1 485 41.3% 40.4% 5 000 Food (1) 1 000 26% 22% 0 0 2015 2016 2015 201
Slide 7: Alcohol Segment Breakdown
ALCOHOL SEGMENT BREAKDOWN Alcohol segment revenue breakdown, million RUB Alcohol segment gross profit breakdown, million RUB +20% 2015 2015 25 000 23 374 +18% 2016 12 000 11 018 2016 19 447 9 334 20 000 9 000 15 000 6 000 10 000 +37% 48.0% 47.2% +34% 5 920 4 324 3 000 2 015 5 000 1 506 34.8% 34.0% 0
Slide 8: Consolidated EBITDA and Net Profit
CONSOLIDATED EBITDA AND NET PROFIT EBITDA, million RUB G&A and distribution expenses , million RUB General & Administrative expenses Distribution expenses 3 300 +12% 3 218 12 000 2 885 2 200 8 000 9 346 9,4% 8 260 +13% 9.0% 1 100 4 000 -4% 2582 2478 0 2015 2016 0 2015 2016 Operating profit and Net I
Slide 9: Synergy Group Debt Structure
SYNERGY GROUP DEBT STRUCTURE 2015 2016 Change, % Debt evolution, Mln RUR Debt 8 449 9 053 +7% Long tem debt Short term debt Net debt Cash & cash equivalents 1 161 1 010 -13% Net Debt 7 288 8 043 +10% 11000 9 053 8 708 Equity & reserves 19 261 19 453 +1% In million RUB 8 449 (1) Total capital 25 463
Slide 10: Income Statement
INCOME STATEMENT 2013 2014 2015 2016 YoY, % Net revenue 26 378 28 163 30 706 35 903 17% Cost of sales (15 098) (16 135) (18 033) (21 385) 19% Gross profit 11 280 12 028 12 673 14 518 15% Gross margin 43% 43% 41% 40% G&A expenses (2 053) (2 411) (2 582) (2 478) -4% Distribution expenses (5 871) (7 38
Slide 11: Cash Flow
CASH FLOW Depreciation and amortisation 547 699 776 726 Other non-cash transactions 7 90 (123) 183 Changes in working capital (1 076) (2 316) 1 332 (1 231) CF from operating activities 2 605 747 4 094 2 164 Interest paid (1 276) (1 265) (1 918) (2 004) Income tax paid (319) (360) (109) 63 Net CF fro
Slide 12: Appendices
(ae Se APPENDICES
Slide 13: Company's Strategy
COMPANY’S STRATEGY Become the dominant spirits company in Russia with a diversified portfolio of brands and products and best in class distribution platform • Balanced portfolio of brands covering all price • Strong distribution platform with focus on direct sales categories • Better contact with fi
Slide 14: Spirits Revenue Breakdown. Ongoing Diversification
SPIRITS REVENUE BREAKDOWN. ONGOING DIVERSIFICATION Synergy’s alcohol revenue evolution 2011 2013 2016 Infusion Infusion Infusion Brandy 11% Brandy 8% 5% 5% 4% Brandy Import Import 11% 8% 4% Vodka Vodka Vodka Export Export Russia 4% Vodka 6% Import 56% Vodka Russia 18% Russia 73% 80% Vodka Export 7%
Slide 15: Diversified Portfolio of National Brands
DIVERSIFIED PORTFOLIO OF NATIONAL BRANDS Low-middle Middle Sub-premium Premium Super-premium, Ultra-premium Vodka portfolio RUR 270 RUR 320 RUR 360-375 RUR 445 RUR 1100 – RUR 4500 Russky VEDA Beluga Beluga Beluga Beluga Beluga Belenkaya Myagkov Noble Trans TZAR Lyod ICE Noble Allure Gold Line (Whiti
Slide 16: Developing Portfolio of National Brown Spirits Brands
DEVELOPING PORTFOLIO OF NATIONAL BROWN SPIRITS BRANDS Brandy Whisky-based Infusions Balsam and herbal liqueurs Rum Gin Brown spirits portfolio Low-middle Middle Low-premium Premium RUR 470 RUR 510 RUR 560 RUR 590-750 RUR 355 RUR 215-310 RUR 1150 RUR 410 RUR 390 RUR 380 RUR 355 Zolotoy Staraya Kamenn
Slide 17: Synergy's Imported Spirits Portfolio
SYNERGY’S IMPORTED SPIRITS PORTFOLIO Scotch Whisky Cognac Bourbon Brandy Absinthe Sambuca Irish Whisky Tequila Gin Bitter Cream liquor Rum 17
Slide 18: Synergy's Wine Portfolio
SYNERGY’S WINE PORTFOLIO France Chile Italy Germany Portugal South Africa Argentina Spain 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 Contacts: Sergey Kuptsov, Head of Corporate finance Prokhor Malutin, PR director www.sygroup.ru 19