Kofola Ceskoslovensko As · PSECZ:KOFOL
Kofola Ceskoslovensko As — FY2018 Earnings Presentation
39 slides from Kofola Ceskoslovensko As's earnings presentation, Mar 25, 2019
Slide 1: Kofola 2018 Results Investor Presentation
W kofola GeskoSlavensko M2018 RESULTS Investor presentation 25 March 20/9
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 12M18: € 277.6M EBITDA 12M18: € 39.4M 8 production plants* 1,905 employees* CZK/EUR average FX rate: 25.643; *excluding Hoop Polska countries for expansion 2
Slide 3: Market positions in soft drinks and water
No. 2 player in the soft drinks market No. 1 player in the soft drinks market No. 1 player in the soft drinks market No. 1 water brand No. 2 water brand Source: AC Nielsen (value) - for market shares HoReCa: hotel, restaurant, café Pěnožrout: „Foam eater“ 3
Slide 4: 2018 highlights
o ´ o o o o ´ * adjusted for one-offs 4
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 3.5 mil. connected with changed Trade Revenue 7 118.8 - 7 118.8 Union Agreement (in Croatia). Cost of sales (4 056.9) 3.5 (4 053.4) In Se
Slide 6: Results comparison 12M18 vs 12M17
• Revenue grew in all segments except Poland (CzechoSlovakia by Results comparison 12M18 12M17 Change Change 7.3%, Slovenia+Croatia by 2.6%). Increase in all distribution channels thanks to sales of Kofola, Rajec, Vinea and Rauch. CZK mil. CZK mil. CZK mil. % CzechoSlovakia sales influenced also by
Slide 7: LTM revenue, gross profit and EBITDA
(CZK m) 15,2% 14,8% 14,2% 6,963 7,054 7,029 7,087 7,119 13,7% 2,829 2,909 2,984 3,078 3,065 13,7% 950 968 1,040 1,079 1,011 1,079 1,040 13.7% 13.7% 14.8% 15.2% 14.2% 1,011 968 950 4Q17 1Q18 2Q18 3Q18 4Q18 LTM EBITDA LTM EBITDA margin * adjusted for one-offs 7
Slide 8: 4Q18 highlights
o ´ o o o ´ * adjusted for one-offs 8
Slide 9: Results comparison 4Q18 vs 4Q17
• The Group´s revenue without Hoop Polska and LEROS increased Results comparison 4Q18 4Q17 Change Change by CZK 23.2 mil. (1.7%). CZK mil. CZK mil. CZK mil. % • Higher cost of sales influenced mainly by acquisition of LEROS and Revenue 1 640.9 1 609.2 31.7 2.0% increased costs in UGO. Cost of sales
Slide 10: Slide 10
Slide 11: Kofola sales on Retail & HoReCa CzechoSlovak market
Kofola sales on Retail & HoReCa (CZK m) CzechoSlovak market 6,000 60% 50% 5,000 49% 50% Gross Profit 4,000 1,682 40% 1,590 Margin 3,000 30% HoReCa 2,000 20% 2,939 3,176 1,000 10% Retail* 0 0% 2017 2018 * includes sales of services and private labels 11
Slide 12: Adjusted EBITDA & EBITDA margin CzechoSlovakia
• Despite higher costs connected with bonuses, 12M18 Adjusted EBITDA & EBITDA margin EBITDA margin increased, mainly as a result of lower price of sugar. • Lower COGS/Revenue ratio, lower Sales support/Revenue ratio. (CZK m) 1,050 18% 20% 16% 850 859 15% 650 740 450 10% 250 Share in Group’s 5% EBITD
Slide 13: Cost structure: sweeteners, packaging, other
25 120,0% 100,0% Other (e.g. concentrates, aromas) 21% 22% 80,0% Sweeteners 32% 27% Packaging 60,0% 40,0% 47% 52% 20,0% 0 0,0% 2017 2018 13
Slide 14: UGO sales and franchise sales
UGO sales* + UGO franchise sales** Highest number of bars in CEE (CZK m) 170 84 81 128 73 61 50 49 452 409 20 12 32 2017 2018 2012 2013 2014 2015 2016 2017 2018 Own Franchises * includes sales of salads and UGO bottles ** not included in the Group´s results 14
Slide 15: Hoop Polska sale and impairment
• Hoop Polska was sold on 18 March 2019 to ZMB Capital Sp. z o.o. Carrying amount of assets was decreased by an impairment charge of CZK 346 million. Impairment calculation (including transaction price) as well as Group’s revenue and adjusted EBITDA after exclusion of Hoop Polska are outlined below.
Slide 16: 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% 1,400 39% 38% 1,200 40% 1,000 Gross Profit 30% Margin 800 459 517 600 20% HoReCa 400 601 571 10% 200 Retail* 0 0% 2017 2018 * includes sales
Slide 17: Consolidated Financial Performance Indicators
Consolidated Financial Performance Indicators
Slide 18: Revenue: Total and CZ+SK
(CZK m) Total CZ+SK 6,963 7,119 4,858 4,529 12M17 12M18 • 7.3% growth of sales in CzechoSlovakia, 4.3% without effect of Titbit, Premium Rosa and LEROS acquisitions. • 2.2% growth of sales in Group, 4.1% without effect of Titbit, Premium Rosa and LEROS acquisitions and after exclusion of Hoop Polska
Slide 19: Revenue by country
(CZK m) 12M17 12M18 • Czech Republic Revenue increased by 9.2% (by 5.4% after exclusion of 3 167 the acquisitions effect) due to increased sales of Kofola, 2 899 Rajec, Vinea and Rauch. • Slovakia Revenue growing by 3.8% (by 2.2% after exclusion of 1 691 the acquisitions effect), keeping leading pos
Slide 20: Adjusted EBITDA
(CZK m) Total CZ+SK 1,011 950 859 740 12M17 12M18 The Group´s adjusted EBITDA without Hoop Polska increased by CZK 91.5 mil. (9.8%) in comparison with 12M17. EBITDA increased despite higher costs for bonuses, which is mainly due to increased revenue and lower sugar price. 20
Slide 21: Net debt and Net debt/adjusted EBITDA
(CZK m) Net debt Net debt/adjusted EBITDA 2,5 2,4 2,376 2,430 2017 2018 Healthy Net debt/Adjusted EBITDA ratio (<3). 21
Slide 22: Operating CF, Capex, Working Capital
Operating CF Capex Working Capital* • Increase in Operating cash flows is mainly a result of higher profit/(loss) before income tax (after adjusting for non-cash movements such as changes in impairments/provisions and 821 gain/loss on sale of PPE and intangible assets). 720 • Decrease of Capex – LY
Slide 23: Market data by country
186 947 190 038 210 960 213 657 199 119 204 458 148 819 67 551 70 515 105 157 99 075 78 792 55 320 57 658 64 736 71 490 72 928 78 844 62 474 27 446 28 876 32 817 42 380 39 504 242 267 247 696 275 696 285 147 272 047 283 302 211 293 94 997 99 391 137 974 141 455 118 296 121 820 127 242 141 721 150 05
Slide 24: Kofola INFO
Kotola INFO an ae
Slide 25: Company history and acquisitions
Acquisition of Vinea Take over of Titbit brand in Slovakia (no. 1 salad producer (most popular CSD in Czechia) in Slovakia) Acquisition 2019 of UGO group (fresh juices) 2017-2018 HoReCa started Sale of Hoop Polska in Czechia & Slovakia 2015-2016 Expansion into a new Establishment of segment of healt
Slide 26: Facts about Kofola
• Kofola is among the most admired companies in the Czech Republic according to the Czech Top 100 Awards. • Kofola is a herbal drink made from 14 herbs. • Kofola has 30% less sugar then other cola drinks. • Kofola contains no acid phosphoric. • Water makes 30% of our product portfolio. • We use HPP*
Slide 27: Brand awareness
100% 80% 87% 78% 60% 57% 40% 39% 39% 20% 17% 0% 27
Slide 28: The complete portfolio of strong brands
The complete portfolio of strong brands Distributed & Licensed
Slide 29: Kofola share in HoReCa channel
Kofola share in HoReCa channel* Kofola´s HoReCa sales in total sales 2018 40% 37% 31% 30% 24% 20% 20% 31% 10% 41% 59% 0% 2012 2013 2014 2015 2016 2017 2018 69% HoReCa Retail** * based on Data Servis and Canadean (volume terms); ** includes sales of services and private labels 29
Slide 30: Kofola Retail market share (value)
Kofola Retail market share (VALUE) 30% 30% 25% Kofola gain vs. Competitor 1 25% +1.4 p.p. Kofola loss vs. Competitor 1 20% 20% -1.7 p.p. 15% 15% 10% 10% 5% 5% 2015 2016 2017 2018 2015 2016 2017 2018 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data Servis, Kofola incl. exclu
Slide 31: Kofola HoReCa market share (volume)
Kofola HoReCa market share (VOLUME) 45% Kofola gain vs. Competitor 1 45% +5.0 p.p. 35% Kofola gain vs. Competitor 1 +10.9 p.p. 35% 25% 25% 15% 15% 5% 5% 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 Kofola Competitor 1 Competitor 2 Competitor 3 Based on AC Nielsen and Data Se
Slide 32: Current ownership structure
Current ownership structure • Significant increase of shares´ transactions after the CED´s exit in September 2018. • 27% free float: 6 million shares. Free float* 27.00% AETOS a.s. Kofola shares at PSE: 68.00% number of average daily transactions January 2018 – March 2019 20 000 15 000 Kofola Group
Slide 33: Dividend policy
Aim of dividend distribution to shareholders of Kofola of at least 60% of its consolidated net profit achieved in each financial year from 2017 Y16 Y17 Y18 Y15 Y16 * Y16 Y17 until 2020, subject to sufficient distributable *advance dividend profits. 500 1 400 400 1 300 420 312 283 1 200 300 1 100 200
Slide 34: Board of Directors
Jannis Samaras René Musila Daniel Buryš Chairman of the BoD, CEO, founder Vice-Chair of the BoD, COO Vice-Chair of the BoD, Country In Kofola since 1993 manager CzechoSlovakia 68% stake in Kofola (via AETOS) In Kofola since 2010 Jiří Vlasák Pavel Jakubík Marián Šefčovič Member of the BoD Member of t
Slide 35: Appendix
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Slide 36: Adjusted consolidated financial results
Adjusted consolidated financial results 2018* 2017* 2016* 2015* 2014* 2013* CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 CZK´000 Revenue 7,118,768 6,963,278 6,998,960 7,190,838 6,275,391 6,287,894 Cost of sales (4,053,399) (4,134,081) (4,211,593) (4,352,102) (3,881,359) (4,300,767) Gross profit 3,065,369
Slide 37: Consolidated statement of financial position
Consolidated statement of financial position 31.12.2018 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 Non-current assets 4,348,833 4,786,195 4,915,863 5,095,724 4,171,985 6,287,894 Current assets 2,214,197 1,792,673 3,104,020 3,395,290 1,787
Slide 38: Kofola ČeskoSlovensko a.s. investor relations
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 38
Slide 39: 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
Kofola ČeskoSlovensko a.s. — FY2018 Earnings Presentation on 6ix