Kofola Ceskoslovensko As · PSECZ:KOFOL

Kofola Ceskoslovensko As — 9M 2018 Earnings Presentation

42 slides from Kofola Ceskoslovensko As's earnings presentation, Nov 2, 2018

  1. Slide 1: 9M 2018 Results - Investor presentation

    W kofola GeskoSlavensko M2018 RESULTS Investor presentation 2 November 2018

  2. Slide 2: One of the most significant producers of non-alcoholic beverages in CEE and SEE

    One of the most significant producers of non-alcoholic beverages in CEE and SEE Revenues 9M18: € 214.2M EBITDA 9M18: € 32.6M 8 production plants 2,195 employees EUR/CZK average fx. rate: 25.570 countries for expansion 2

  3. Slide 3: Market positions in the soft drinks market

    No. 2 player in the soft drinks market No. 1 player in the soft drinks market both in Retail & HoReCa No. 1 player in the soft drinks market No. 1 water brand in both Retail & HoReCa No. 3 water brand No. 3 syrup brand No. 2 syrup brand No. 3 cola brand Source: AC Nielsen (value) - for market shares

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  5. Slide 5: Reconciliation of reported and adjusted results

    Reconciliation of reported and Reported One-offs Adjusted One-offs: adjusted results In Cost of sales: CZK mil. CZK mil. CZK mil. • Severance costs – costs of CZK 1.1 mil. connected with Revenue 5 477.9 - 5 477.9 changed Trade Union Agreement (in Croatia). Cost of sales (3 032.4) 1.1 (3 031.3) In Se

  6. Slide 6: Results comparison 9M18

    Results comparison 9M18 9M17 Change Change • Revenue grew in all segments except Poland (CzechoSlovakia by 7.5%, Slovenia+Croatia by 5.2%). In CZK mil. CZK mil. CZK mil. % CzechoSlovakia increase in all distribution channels thanks Revenue 5 477.9 5 354.1 123.8 2.3% to sales of Kofola, Rajec, Vinea

  7. Slide 7: LTM EBITDA and EBITDA margin

    (CZK m) 15,2% 14,8% 13,7% 6 927 6 963 7 054 7 029 7 087 13,6% 2 808 2 829 2 909 2 984 3 078 919 950 968 1 040 1 079 1,079 13,3% 1,040 13.3% 13.6% 13.7% 14.8% 15.2% 968 950 919 3Q17 4Q17 1Q18 2Q18 3Q18 LTM EBITDA LTM EBITDA margin * adjusted for one-offs 7

  8. Slide 8: o o o

    o ´ o ´ o * adjusted for one-offs 8

  9. Slide 9: Results comparison 3Q18

    Results comparison 3Q18 3Q17 Change Change • Revenue increased (by 2.9%), a net effect of decreased revenue in Poland in amount of CZK 55 mil. (17.2%) and CZK mil. CZK mil. CZK mil. % increased revenue in the rest of the group. Revenue 2 041.4 1 983.1 58.4 2.9% • Higher gross profit influenced by de

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  11. Slide 11: Kofola sales on Retail & HoReCa CzechoSlovak market

    Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 4,500 60% 51% 4,000 49% 50% 3,500 Gross Profit 3,000 1,351 40% 1,269 Margin 2,500 30% 2,000 HoReCa 1,500 20% 2,174 2,351 1,000 10% 500 Retail 0 0% 9M17 9M18 11

  12. Slide 12: Adjusted EBITDA & EBITDA margin

    • 9M18 EBITDA margin influenced by decreased prices Adjusted EBITDA & EBITDA margin of sugar and very good sales of Kofola. Lower COGS/revenues, lower sales support/revenues. (CZK m) 900 19% 20% 800 15% 700 15% 600 692 500 525 10% 400 300 Share in Group’s 200 5% EBITDA: 82.9% 100 0 0% 9M17 9M18 12

  13. Slide 13: Ugo sales and highest number of bars in CEE

    Ugo sales + Ugo franchise sales* Highest number of bars in CEE (CZK m) 82 84 79 73 425 61 348 136 48 97 251 289 31 9M17 9M18 2012 2013 2014 2015 2016 9M17 2017 9M18 Own Franchises * not included in the Group´s results 13

  14. Slide 14: Continuing growth of Ugo bottles sales

    Continuing growth ot Ugo bottles sales 9M17 9M18

  15. Slide 15: Kofola sales on Polish Retail & Private label market

    • Declining private label sales Kofola sales on Polish • Stable Gross profit margin (CZK m) Retail & Private label market 1,200 19% 19% 20% 1,000 800 15% Gross Profit Margin 523 307 600 10% Private label 400 489 5% 200 455 Other Retail 0 0% 9M17 9M18 15

  16. Slide 16: Adjusted EBITDA & EBITDA margin - Poland

    • Savings from consolidation of Polish production capacities to 1 production plant are Adjusted EBITDA & EBITDA margin not sufficient. Effect of decreased revenues (continuing drop in private label sales) still exceeds decrease of costs. (CZK m) • Effect on groups´ EBITDA decreasing. 30 2% 1% 25 0%

  17. Slide 17: HOOP exit effect on Kofola Group

    A contingency plan ASSUMES divestment of the HOOP business. The decision has not been made yet. In 3Q18 we sold production plant in Bielsk Podlaski (closed in 2016). Our successful Polish acquisition of Premium Rosa will be integrated with LEROS – a new segment based on authentic healthy raw materia

  18. Slide 18: Retail & HoReCa sales in Adriatic market

    Retail & HoReCa sales • Continuing growth despite very cold June. Excellent sales growth in Adriatic market of Radenska water and Pepsi in (CZK m) Croatia. 50% 1,000 41% 39% 40% 800 Gross Profit 387 422 30% Margin 600 20% HoReCa 400 200 436 444 10% Retail 0 0% 9M17 9M18 18

  19. Slide 19: Adjusted EBITDA & EBITDA margin - Adriatic

    • Lower EBITDA margin due to changed portfolio – more Carbonated Soft Drinks, less Adjusted EBITDA & EBITDA margin water – higher material costs. Higher energy and logistic costs. Increased marketing costs in Croatia. (CZK m) 200 20% 20% 16% 150 162 15% 136 100 10% Share in group’s 50 5% EBITDA: 16.

  20. Slide 20: Consolidated Financial Performance Indicators

    Consolidated Financial Performance Indicators

  21. Slide 21: Sales in CzechoSlovakia and Group

    (CZK m) Total CZ+SK 5,354 5,478 3,702 3,443 9M17 9M18 7.5% growth of sales in CzechoSlovakia 2.3% growth of sales in Group (effect of lower sales in Poland) 21

  22. Slide 22: Revenues by segment

    (CZK m) 9M17 9M18 Czech Republic Revenues increased by 10.1%, due to increased sales of 2 408 Kofola, Rajec, Vinea and Rauch. UGO increased revenue by 15.6%. 2 187 Slovakia Revenues growing by 3.0%, keeping leading position in both Retail and HoReCa segment in terms of market 1 295 share. Sales in o

  23. Slide 23: EBITDA by segment

    (CZK m) Total CZ+SK 834 706 692 525 9M17 9M18 Increased EBITDA in all segments except Poland. EBITDA achieved by the Group in Poland decreased as a result of decreased sales mainly of private labels. 23

  24. Slide 24: Net debt and Net debt/adjusted EBITDA

    (CZK m) Net debt Net debt/adjusted EBITDA 2,5 2,4 2,620 2,376 2017 9M18 Healthy Net debt/adj. EBITDA (<3). Decrease of cash in 9M18 due to purchase of subsidiary LEROS and dividend payment. 24

  25. Slide 25: Operating CF, Capex, Working Capital

    Operating CF Capex Working Capital • Operating CF increased, thanks to higher profit before tax adjusted for non-cash movements (by CZK 138 mil.), lower 638 tax paid (by CZK 22 mil.) and on the other hand by negative cash flow effect from working capital changes (by CZK 24 mil.) caused mainly by low

  26. Slide 26: 51 70 515 105 157 76 789 78 792 55 320 57 658 64

    186 947 190 038 210 960 213 657 199 119 144 401 148 819 67 551 70 515 105 157 76 789 78 792 55 320 57 658 64 736 71 490 72 928 58 155 62 474 27 446 28 876 32 817 36 348 39 504 242 267 247 696 275 696 285 147 272 047 202 556 211 293 94 997 99 391 137 974 113 137 118 296 121 820 127 242 141 721 150 05

  27. Slide 27: Kofola INFO

    Kotola INFO an ae

  28. Slide 28: History and acquisitions

    Acquisition of Vinea Acquisition Take over of Titbit brand in Slovakia of Ugo group (no. 1 salad producer (most popular CSD (fresh juices) in Czechia). in Slovakia) 2017-2018 HoReCa started 2015-2016 Expansion into a new in Czechia & 2012 segment of healthy Slovakia products Establishment of Expansi

  29. Slide 29: Kofola responsibility and healthy products

    • Kofola is among the most admired companies in the Czech Republic according to the Czech Top 100 Awards. • We use modern technologies that increase efficiency and minimize use of energy and water. • We head towards zero waste operations in terms of general waste. • Kofola is a herbal drink made fro

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    100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0% 30

  31. Slide 31: The complete portfolio of strong brands

    The complete portfolio of strong brands Distributed & Licensed

  32. Slide 32: Kofola share in HoReCa channel

    Kofola´s HoReCa sales in total sales Kofola share in HoReCa channel* 9M18 40% 37% 31% 30% 24% 21% 20% 33% 10% 42% 58% 0% 2012 2013 2014 2015 2016 2017 9M18 67% HoReCa Retail** * based on Data Servis and Canadean (volume terms); ** including private label 32

  33. Slide 33: Kofola Retail market share (value)

    Kofola Retail market share (VALUE) 30% 30% 25% Kofola gain vs. Competitor 1 25% +7.8 p.p. Kofola loss vs. Competitor 1 20% 20% -0.9 p.p. 15% 19% 15% 15% 17% 14% 10% 10% 5% 5% 2015 2016 2017 9M18 2012 2013 2014 2015 2016 2017 9M18 Kofola Competitor 1 Competitor 2* Competitor 3 * For competitor 2 pres

  34. Slide 34: Kofola HoReCa market share (volume)

    Kofola HoReCa market share (VOLUME) 50% 50% Kofola gain vs. Competitor 1 40% 40% +4.9 p.p. Kofola gain vs. Competitor 1 30% +9.7 p.p. 37% 30% 31% 20% 24% 20% 20% 10% 10% 0% 0% 2012 2013 2014 2015 2016 2017 9M18 2012 2013 2014 2015 2016 2017 9M18 Kofola Competitor 1 Competitor 2 Competitor 3 Based on

  35. Slide 35: Current ownership structure

    Current ownership structure • Significant increase of shares´ transactions after the CED´s exit in September. • 27% free float : 6 million shares Free float* 27.00% AETOS a.s. 2018 Kofola shares´ at PSE: 68.00% number of average daily transactions 40 000 Kofola Group via RADENSKA d.o.o. 30 000 5.00%

  36. Slide 36: Aim of dividend distribution to shareholders

    Aim of dividend distribution to shareholders of Kofola of at least 60% of its consolidated net profit achieved in each financial year from 2017 Y15 Y16 Y17 Y15 Y16 Y17 Y18 until 2020, subject to sufficient distributable profits. 500 1 400 400 320 1 300 410 1 200 300 1 100 200 1 098 1 000 100 1 051 K

  37. Slide 37: Board members

    Jannis Samaras Daniel Buryš Jiří Vlasák Board member, CEO, founder Board member, CFO Board member, Country manager Poland 68% stake in Kofola (via In Kofola since 2010 In Kofola since 2010 AETOS) René Musila Tomáš Jendřejek Marián Šefčovič Board member, COO Board member, Procurement Director Board m

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  39. Slide 39: Adjusted consolidated financial results

    Adjusted consolidated financial results 9M18 9M17 2017* 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 5 477 863 5 354 076 6,963,278 6,998,960 7,190,838 6,275 391 6,287,894 Cost of sales (3 031 310) (3 145 548) (4,134,081) (4,211,593) (4,352,102) (3,881 359)

  40. Slide 40: Consolidated statement of financial position

    Consolidated statement of financial position 30.9.2018 30.9.2017 31.12.2017 31.12.2016 31.12.2015** 31.12.2014 31.12.2013 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Non-current assets 4,736,069 4,835,220 4,786,195 4,915,863 5,095,724 4,171,985 6,287,894 Current assets 2,414,581 3,015,91

  41. Slide 41: Kofola ČeskoSlovensko a.s. contact

    Should you have any question related to Kofola Group do not hesitate to contact our investor relations office: e-mail: investor@kofola.cz tel.: +420 735 749 576 http://investor.kofola.cz/en Kofola ČeskoSlovensko a.s. Nad Porubkou 2278/31A 708 00 Ostrava Czech Republic Follow us at 41

  42. Slide 42: Disclaimer

    This presentation (“the Presentation”) has been prepared by Kofola ČeskoSlovensko a.s. (“the Company”). The Company has prepared the Presentation with due care, however certain inconsistencies or omissions might have appeared in it. Therefore it is recommended that any person who intends to undertak

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