Novabev Group · RUS:BELU
Novabev — Beluga Group — Investor Presentation (January 2020)
26 slides from Novabev's investor presentation, January 2020
Slide 1: Beluga Group Presentation
BELUGA GROUP PRESENTATION January 2020
Slide 2: Beluga Group at a glance
BELUGA GROUP at a glance Diversified business with portfolio of own #1 Spirits producer in Russia and imported brands #4 In vodka globally One of the largest Growing scale of Importer in Russia export Focus on super- Portfolio of premium premium Beluga wines and spirits Vertically integrated operati
Slide 3: Beluga turned from vodka producer into diversified, vertically integrated business
1 Over the recent years Beluga successfully turned from vodka producer onto global diversified and vertically integrated business 2010 Today Business line Products Business line Products Vodka Vodka Diversified spirits and wine 1 Brandy Other spirits 1 Brandy Other spirits producer focused on both d
Slide 4: Key investment highlights
Key investment highlights 1 Large and resilient spirits and wine market 2 Diversified business with vertically integrated operations 3 The leading spirits producer in Russia 4 Increasing footprint on the fast growing wine market Launch of own specialized retail chain to further increase level of 5 c
Slide 5: Large and resilient spirits and wine market
1 Large and resilient spirits and wine market Vodka is the most popular spirit across the world with Russia Despite economic slowdown, vodka consumption in Russia remains stable alongside USA being the key markets while market continue its growth in value terms Global spirits consumption Russian spi
Slide 6: Diversified business with high share of non-vodka products
2 Diversified business with high share of non-vodka products Key direction for business diversification BELUGA GROUP alcohol revenue evolution 2011 2018 Categories extension Acquisition of vineyards and winery in Russia, focus on premium Russian wines 42% Expansion of imported brands portfolio V
Slide 7: Diversified product portfolio: own brands
2 Diversified product portfolio: own brands Other spirits Vodka Brandy / Cognac / liquor Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 7 Notes: Price range for every segment could differ based on product category
Slide 8: Diversified product portfolio: imported brands
2 Diversified product portfolio: imported brands Other spirits Brandy / Cognac / liquor Whisky Wine (gin, tequila, rum, etc.) Super premium Sub-premium / premium Middle Mainstream Sources: Company data 8 Notes: Price range for every segment could differ based on product category. Whiskys Cigars Barr
Slide 9: Vertically integrated operations
2 Vertically integrated operations Consolidated in 1H 2018 605 stores1 Premium spirits&wine stores with focus on development in Moscow, St. Petersburg and Far East Retail 117 imported brands in product portfolio 12 Federal logistic centers 50 suppliers from spread across Russia Import 18 countries 2
Slide 10: The leading spirits company in Russia
3 The leading spirits company in Russia Unmatched leadership in home Strong brand country and further advance worldwide positions Belenkaya #1 Vodka in the country #1 Russia Distilled spirits producer #2 Russia Independent importer #1 Beluga In super-premium segment Belenkaya #1 In middle segment #1
Slide 11: Beluga – flagship brand supplied all around the world
3 Beluga – flagship brand supplied all around the world… In Top-5 super-premium vodka brands globally #1 Super-premium vodka brand in Russia Market shares of super-premium vodka brands in globally2 54,1% #2 Super-premium vodka brand in travel retail globally #3 Super-premium vodka brand globally 14,
Slide 12: Increasing footprint on the fast-growing wine market
4 Increasing footprint on the fast-growing wine market Russia’s wine market Sales of imported wine brands: Exceeds vodka market by 33% in volume significant growth over last few years Sales of imported wine by BELUGA terms Share of imported Fast growing segment in Russia (market is wine in total
Slide 13: Specialized alcohol retailers demonstrate high growth rates with superior economics
5 Specialized alcohol retailers demonstrate high growth rates with superior economics Evolution of Russian specialized alcohol High efficiency of specialized alcohol Winelab – modern and retailers retailers convenient alcohol store Top-10 alcohol retailers sales1 Sales density of Winelab vs. food (R
Slide 14: Launch of own specialized retail chain Winelab
5 Launch of own specialized retail chain to further increase level of controlled sales Winelab key facts Stores rollout dynamics Focus on 3 major regions: Moscow, St. 600 # of stores (end of period) 570 Petersburg and East Federal districts 545 518 Unique assortment with wide range of 500 407 46
Slide 15: Strong financial performance
6 Strong financial performance Net Revenue Gross profit & margin Key drivers of revenue RUB bn RUB bn growth in 1H2019: +16% imported alcohol sales 43,4 +24% growth, especially 37,3 exclusive partners’ +14% 16,9 brands; 13,7 +5% increased revenue from 18,8 21,5 8,4 Winelab retail chain; 8,0 so
Slide 16: Segments financials
6 Segments financials Since 1H2018 the Company has reported 3 business segments: Alcohol, Retail, Food Revenue split by segments1 Alcohol revenue1 Retail revenue1 Food revenue1 As of 1H2019 RUB bn RUB bn RUB bn Food +11% Alcohol +53% 12% 15,4 13,9 6,5 -5.1% 26% 4,2 3,2 3,1 62% Retail 1H2018 1H2019 1
Slide 17: High level of corporate governance with independent Board members
7 High level of corporate governance with independent members on the Board of directors BELUGA GROUP reinforced ALEXANDER MECHETIN NIKOLAY BELOKOPYTOV the Board of Directors in 2018: CEO Chairman of the BoD Founder of BELUGA GROUP CFO New members 4 on the Board of Directors SERGEY MOLCHANOV MIKHAIL
Slide 18: Revenue growth and long-tenured management team
7 High level of corporate governance with independent members on the Board of directors Revenue has increased more than 3.2x over 10 years time frame 43,3 35,9 37,3 28,2 30,7 25,2 26,7 26,4 18,1 21,1 16,7 11,4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Key team members stay with the
Slide 19: Company strategy for further development
Company strategy for further development Brand portfolio Retail and distribution Расположение текста Расположение текста Diversified brand на цветной portfolio, coverage of плашке Continued development of the на цветной плашке allРасположение Сноска segments или примечание текста distribut
Slide 20: Appendix
Appendix 20
Slide 21: Debt Profile overview
Debt Profile overview Debt statistics summary RUB mln 31 Dec’18 30 Jun’19 Decrease in cost of borrowing from 9.0% p.a. in 2018 to 8.96% p.a. in 1H2019 Debt 12,886 16,084 All short-term debt was refinanced in July 2019 through Cash and cash equivalents 1,083 812 issuance of 5 bln., 5 years bond Net D
Slide 22: Income statement
Income statement RUB mln 2017 2018 1H2018 1H2019 YoY, % Net revenue 37,303 43,411 18,782 21,450 14% Cost of sales (23,628) (26,521) (10,766) (13,055) 21% Gross profit 13,675 16,890 8,016 8,394 5% margin 36.7% 38.9% 42.7% 39,1% -3.6 pp G&A expenses (2,951) (3,102) (1,562) (1,605) 3% Distribution expe
Slide 23: Balance sheet
Balance sheet RUB mln 31 Dec’18 30 Jun’19 RUB mln 31 Dec’18 30 Jun’19 ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES Non-current assets Equity and reserves Property, plant and equipment 10,593 14,202 Share capital 1,940 1,940 Goodwill 3,095 3,095 Own shares repurchased from shareholders (545) (618) Int
Slide 24: Cash Flow
Cash Flow RUB mln 2017 2018 1H2018 1H2019 Operating profit 2,848 3,273 1,412 1,734 Depreciation and amortization 768 978 507 969 Other non-cash transactions 200 28 13 32 Changes in working capital (1,860) 466 (2,292) (2,834) CF from operating activities 1,956 4,745 (360) (99) Interest paid (1,849) (
Slide 25: Key marketing activities
Key marketing activities Beluga global activations Sports events sponsorship Online Indoor activity On-trade 25
Slide 26: Non-core business
Non-core business Crops Poultry Meat processing Dairy = Crops/land operations are located in Saratov, the black earth belt region of Russia and managed by Russian Hectare ™ Over 110,000 ha of fertile land under control = 35% of land is cultivated ® Diversified crops enables the Company to optimize e