Gr. Sarantis S.a. · ATHEX:SAR
Gr. Sarantis — Investor Day (March 2024)
75 slides from Gr. Sarantis's investor day presentation, Mar 14, 2024
Slide 1: Sarantis Group Investor Day
Sarantis Group 14 March 2024 SA a TIS Great brands for everyday:
Slide 2: Today's Agenda
Today’s Agenda Setting the scene Our People Evangelos Siarlis Giannis Bouras Group Chief Human Resources Officer Deputy CEO Delivering strong Our right to win Shareholder value Lakis Vasileiadis Christos Varsos Group Chief Marketing Officer Group Chief Financial Officer Sarantis Investment Case Supp
Slide 3: The team you will meet today
The team you will meet today Giannis Bouras Christos Varsos Vangelis Siarlis Nikos Bazigos Lakis Vasileiadis Deputy CEO Group CFO Group CHRO Group Chief Supply Group Chief Chain Officer Marketing Officer 3 Sarantis Group Investor Day 2024
Slide 4: Setting the scene
Setting the scene Giannis Bouras Deputy CEO
Slide 5: Our Story
Our Story Sustainable Growth Value Creation Consistency in performance Efficiency and focus 5 Sarantis Group Investor Day 2024
Slide 6: Well-placed for Sustainable Growth
Well-placed for 6 Sustainable Growth Net Sales €740m Net Sales €660m EBITDA €100m 2X EBITDA to €120m Net Sales €482.2m EBITDA €61.6m EBIT 77€m 2X EBIT to 95€m Net Sales €445.1m EBIT €47.1m EBITDA €45.5m from 2023 EBIT €32.2m 2022 2023 2026 2028 www.companyname.com © 2016 Startup theme. All Rights Re
Slide 7: A long history of 60 years
A long history of 60 years 2015 Milestone acquisitions: 1964 Establishment of 1994 New production facilities Polipak, Ergopack, Stella GR. SARANTIS S.A. 2000 in Athens 2024 Pack Expansion in Eastern Investments in Europe infrastructure New exclusive strategic agreements Intense Acquisition Listed on
Slide 8: Our values
Our values WE ARE A TEAM WITH ETHOS Excellence Τrust Humbleness Ownership Sustainability We strive for We are We are We have We continuous reliable humble owner’s care about improvement! partners! achievers! mentality! tomorrow! 8 Sarantis Group Investor Day 2024
Slide 9: We care for the future the same way we care about the present
We care for the future the same way we care about the present OUR COMPETITIVE ADVANTAGE OUR SCOPE ▪ We design for the CEE region with deep local ▪ CEE and selected international markets consumer understanding on beauty ▪ We are the revitalisers of local “jewel” brands ▪ Home Care solutions ▪ We inve
Slide 10: Strategic priorities for Level Up Growth
Strategic priorities for Level Up Growth Strong Growth Consistent base business growth with acquisitions coming on top Our Mission “We uplift the mood of Simplification and Efficiency consumers with beautiful simplicity that makes Unlock value and release energy everyday life better, being in the or
Slide 11: Growth drivers
Growth drivers Sarantis Group Growth Drivers Beauty & Personal Home Care Strategic Skin Care Care Solutions Partnerships Acquisitions in key priority categories maximizing incremental value 11 Sarantis Group Investor Day 2024
Slide 12: Consistent base business growth with acquisitions coming on top
Consistent base business growth with acquisitions coming on top Beauty & Skin Home Care Strategic Personal Care Acquisitions Care Solutions Partnerships Disproportionate Core Profit Significant Complementary growth driver Market leverage acquisitions on growth Generator top 12 Sarantis Group Investo
Slide 13: Strengthening our position as a leading consumer products company
Strengthening our position as a leading consumer products company with a significant and constantly growing international presence Greece Poland Multi-category & multi- channel Biggest country in terms of top line Significant EBIT generator Home care solutions hub Leading share in most of the Future
Slide 14: Recent Acquisitions
Recent Acquisitions 2014 2015 2015 2018 2018 2020 2024 Before Acquisition Before Acquisition Before Acquisition Before Acquisition Before Acquisition Before Acquisition Before Acquisition ✓ Cosmetics brand ✓ Hand-dishwashing ✓ Production of PL ✓ Cosmetics brand ✓ Leading player in the ✓ Cosmetics br
Slide 15: Simplification and efficiency – projects on track
Simplification and efficiency – projects on track Release value and energy in the organisation Already brought results ▪ Portfolio Optimisation (-40% of SKUs) ▪ Stock management – cash release ▪ New Polipak plan in full operation ▪ Innovation - Fewer and bigger initiatives ▪ More value through Reven
Slide 16: Infrastructure & Digital Transformation
Infrastructure & Digital Transformation Polipak recycling New Warehouse Digital Transformation Stella Pack S.A. Investment estimation Investment estimation Investment estimation Investment estimation €2.0m €25.0m €12.0m €14.0m by Q3 2024 by the end of 2025 by the end of 2026 by the end of 2026 Other
Slide 17: Organizational Capability
Organizational Capability Embrace “Spiky” Capabilities of our People Enhance the Organizational Awareness of our Design which Values, Vision and promotes agility Mission and fast decision making “Take the Pulse” of Invest in “spiky” our People capabilities consistently via development of Engagement
Slide 18: Integrating ESG into our Business
Integrating ESG into our Business Engaging with our Double materiality Target setting stakeholders assessment by the end of 2024 already completed 18 Sarantis Group Investor Day 2024
Slide 19: Investing in a more sustainable future
Investing in a more sustainable future Energy Consumption from Scope 1 GHG emissions Scope 2 GHG emissions Energy Intensity** Renewable Resources* (in tCO2e) (in tCO2e) market-based Period 2021-2023 Period 2021-2023 Period 2022-2023 Period 2021-2023 +65% -14% -7.4% -15.4% *Renewable energy sources u
Slide 20: Accelerating our ESG agenda
Accelerating our ESG agenda Environment Society Governance ▪ Investment in Occupational Health & ▪ Climate - Installation of photovoltaic ▪ Diversity in the Board of Directors Safety Management System systems in our production site at (ISO 45001:2018) (30% women, four independent Inofyta in Greece (
Slide 21: Focusing on green growth and competitiveness
Focusing on green growth and competitiveness new refillable AVA Sanitas / FINO clean beauty flex&strong garbage 18% less plastic – more brand Clinea than 70 tons of plastic 100% recyclable bags capsule 100% recycled plastic reduction per year (2020-2023) Noxzema men roll-on: Bioten STR8 deo spray re
Slide 22: Stella Pack S.A.: Building on our leading positions
Stella Pack S.A.: Building on our leading positions ▪ A leading Polish consumer household products player, with strong brands ▪ 25 years of successful presence in the home care solutions categories ▪ Reinforcement of Sarantis Group's leading position in the Polish market with further enrichment of a
Slide 23: Our Right To Win
Our Right To Win Lakis Vasileiadis Group Chief Marketing Officer
Slide 24: Strategies: Where to Play
Strategies: Where to Play Beauty & Skin Home Care Personal Care Care Solutions Disproportionate Profit Significant Growth Generator Growth Driver Selective Our Region International Multi-Channel Expansion Always “Nearby” Focus on Be Where To Win Beauty & Skin Consumers Shop 24 Sarantis Group Investo
Slide 25: Strategies: How To Win
Strategies: How To Win GROW TRIAL/PENETRATION More… - New Users Recruitment USERS - Portfolio Expansion/Breadth -Superior Brand Building PROFITABLE SHARE GROWTH More… - Revenue Growth Management (RGM) VALUE - HERO Philosophy - Return On Investment (ROI) More… BUILD CATEGORY (“GROW-THE-PIE”) - Increa
Slide 26: ...And it's working!
…And it’s working! NET SALES GROSS MARGIN BRAND INVESTMENT (A&P) SHARES (PRIORITY BRANDS) , Complexity #of SKUs (- 40%) 26 Sarantis Group Investor Day 2024
Slide 27: Beauty & Skin
BEAUTY & SKIN
Slide 28: Disproportionate Profitable Growth
Disproportionate Profitable Growth Skincare Strong momentum through accelerated innovation plan, communication & commercial excellence. Dynamic entry with a contemporary, millennial clean beauty brand in pharmacy and drogeries channel. Suncare Strong heritage reflected in leading market positions, a
Slide 29: We Innovate
WE INNOVATE SILVER AGE PERFECT SKIN HYDRATION SERUMS MASKS 29 Sarantis Group Investor Day 2024
Slide 30: We Invest
WE INVEST 13% Media on Net Sales +2ppts vs 2022 +40% Media in 2023 30 Sarantis Group Investor Day 2024
Slide 31: We Grow
WE GROW FACE CARE +22% Net Sales +3ppts in GM 31 31 Sarantis Group Investor Day 2024
Slide 32: Face Care
FACE CARE BIOTEN SUCCESS STORY IN PHILIPPINES 32 Sarantis Group Investor Day 2024 7 X Growth since launch in 3yrs
Slide 33: New to the world concepts
WE INTRODUCE WE INTRODUCE NEW TO THE WORLD CONCEPTS NEW TO THE WORLD CONCEPTS
Slide 34: Conscious
Conscious
Slide 35: 70% repurchase
70% repurchase 35 Sarantis Group Investor Day 2024
Slide 36: Sun Care
SUN CARE Market leaders in key markets, GR, PL, CZ & RO. Enabling people to release their best self & shine and live their summer to the maximum. 36 Sarantis Group Investor Day 2024
Slide 37: Sun Care
SUN CARE +60% NS vs 2019 94% organic growth +4ppts in GM 37 Sarantis Group Investor Day 2024
Slide 38: Personal Care
PERSONAL \ 2p CARE,»~ .. ” hi) ta .
Slide 39: Fragrances, Deodorants, Skin Cleansing, Local Leaders
Skin Local Fragrances Deodorants Cleansing Leaders • Long legacy of • 2nd largest and • Leading local success • Fast growing brands with hi margins most jewels competitive • Aspirational brands category • Noxzema #1 in with strong market • Driving brand/category Deodorants positions • volume – price
Slide 40: Leading positions in mass male grooming
✓+40% ✓ the last 2 years ✓ Leading positions ✓ in mass male grooming Driving trial among Gen Z 40 Sarantis Group Investor Day 2024
Slide 41: Sustainability is key in our strategy
Sustainability is key in our strategy Economy Pack 80% Less Plastic Direct use 41 Sarantis Group Investor Day 2024
Slide 42: Home Care Solutions
Home Care Solutions
Slide 43: Home Care Solutions Category Evolution 2009-2024B
Home Care Solutions Category Evolution 2009-2024B More than Doubled the business in 7 years +€81mio Organic (53%) | Acquisitions (47%) 43 Sarantis Group Investor Day 2024
Slide 44: Household Market – Macro Environment
Household Market – Makro Environment Garbage Bags Food Packaging Cleaning Tools* Total Market: € 617 mio est. Market Size: 242mio € 175mio € 200mio € Sarantis Position: #1 #1 #2-3 Competition: Regional / Regional / Global / Grow Aggressively Local MaintainLocal Leadership Claim Fair LocalShare 44 Sa
Slide 45: Homecare Solutions Growth Levers
Homecare Solutions Growth Levers Portfolio Breadth Commercial Excellence More More Volume People More Often Superior Quality Higher Communication / Value Facelifts Category CategoryEvolution Growth 45 Sarantis Group Investor Day 2024
Slide 46: Consumer Relevant Innovation building Superiority
Consumer Relevant Innovation building Superiority Superior textured technology, 3 layers, made from 100% recycled plastic, extra stretch and leak proof 46 Sarantis Group Investor Day 2024
Slide 47: Consumer Relevant Innovation building Superiority
Consumer Relevant Innovation building Superiority Versatile Baking paper with advanced antistick properties and extra usages 47 Sarantis Group Investor Day 2024
Slide 48: Perfect Store
PERFECT STORE Influence purchase behavior by creating proper Store conditions, focusing on 3 Pillars 1 2 3 More Increase the Increase Increase People penetration frequency of value of More purchase purchase Often More of Categories Volume Higher Value Category Growth through a Shopper Centric approa
Slide 49: Shelf Structure to assist navigation & highlight the brand
Shelf Structure (Garbage bags example) to assist navigation & highlight the brand 1. Facilitate SIZE 2. Educate about the connection of Navigation Bin type with Bag SIZE *Final decision remains at the sole discretion of the retailer, we only recommend. 49 Sarantis Group Investor Day 2024
Slide 50: Supply Chain: Creating a competitive advantage
Supply Chain Creating a competitive advantage Nikos Bazigos Group Chief Supply Chain Officer
Slide 51: Supply manufacturing progression
Supply manufacturing progression 1999 2015 2023 2002 2018 2024 Establishment of 1st Acquisition of 2nd Acquisition of Acquisition of 4 Factories Establishment of Full rebuild of Polish Factory in Polish Factory at Ukrainian of Stella Pack Greek Factory Poznan Factory in Pruszkow Poland Poznan Factor
Slide 52: Fertilizing Growth of our Categories
Fertilizing Growth of our Categories with parallel expansion on.. R&D Capabilities and footprint Quality Standards Packaging development Supporting Systems 52 Sarantis Group Investor Day 2024
Slide 53: Beauty & Personal Care R&D Center in Greece
Beauty & Personal Care R&D Center in Greece Enhanced Innovation In-house Strategic alliance capabilities formulation & pilot with top cosmetic production ingredients suppliers 53 Sarantis Group Investor Day 2024
Slide 54: Garbage Bags R&D Center In Poznan, Poland
Garbage Bags R&D Center In Poznan, Poland State of the art Recycled material Garbage Bags In-house granule mix innovation & pilot production manufacturing process Innovation Centre optimization Thickness consistency Color verification Tensile strength 54 Sarantis Group Investor Day 2024
Slide 55: Packaging Innovation & Optimization Center
Packaging Innovation & Optimization Center Primary & Centralized Packaging Sustainability Pack Design Product safety Secondary Pack driven initiatives Centre of Excellence Innovation Box compression Climatic chambers 55 Sarantis Group Investor Day 2024
Slide 56: Quality Assurance
Quality Assurance Certified Operations across Supply chain Internal Audit plan GLP standard QC labs Vendors Management Process 56 Sarantis Group Investor Day 2024
Slide 57: Optimizing Supply Chain
Optimizing Supply Chain Automations in Shielding Quality Standardizing processes manufacturing Optimizing cost Support ESG agenda MES, Industry 4.0 57 Sarantis Group Investor Day 2024
Slide 58: Optimizing Supply Chain
Optimizing Supply Chain End to End Planning platforms Data driven SAP IBP Q3 2024 Integrated Planning Solutions decision making Optimizing Inventories while supporting service and Improve S&OP Processes information flow 28% Inventory Reduction since Jan 2020 58 Sarantis Group Investor Day 2024
Slide 59: Our People
Our People Vangelis Siarlis Group Chief Human Resources Officer 59
Slide 60: Our employees in a snapshot
Our employees in a snapshot HEADCOUNT GENDER RATIO AGE DISTRIBUTION 3142 18 – 25 2314 26 – 35 42 Age Female, 36 – 45 828 54% Male, 46 – 60 46% Sarantis Stella Total 61 + EMPLOYEES PER COUNTRY 1172 887 549 221 138 63 90 22 Greece Poland Ukraine Romania West Balkans Czech & Slovakia Bulgaria Hungary 6
Slide 61: People Strategic Priorities
People Strategic Priorities Mission & Priorities We increase the value and capability of our workforce by attracting, developing and retaining talented people and enabling them to contribute to their maximum potential Organization and Culture Talent & Succession Performance & Reward Deliver GROWTH b
Slide 62: Cultivating the talent and potential of our people
Cultivating the talent and potential of our people Highlights Supply Chain Skills 10,501 training hours delivered in 2023 71% Employee Engagement Marketing Score in 2022 Skills 75% Employee Enablement Score in 2022 4 HR Awards for People Best Sales Skills Practices in 2023 34% of managers are women
Slide 63: We transform as we grow
We transform as we grow International consulting firm We are going through an operating model re-design effort, aimed at creating the right framework allowing the company to achieve our strategy, by… 1 2 3 …amplifying the distinctive …injecting the differential … elevating existing resources assets
Slide 64: Delivering Strong Shareholder Value
Delivering Strong Shareholder Value Christos Varsos Group Chief Financial Officer
Slide 65: Our base year, 2023, a year of record Net Sales and Profitability
Our base year, 2023, a year of record Net Sales and Profitability* Amounts In € m FY 2023 FY 2022 Δ% (unless otherwise stated) Net Sales 482.2 445.1 8.3% Gross Profit 182.3 151.8 20.1% Gross Profit margin 37.8% 34.1% EBITDA 61.6 45.5 35.3% EBITDA margin 12.8% 10.2% EBIT 47.1 32.2 45.9% EBIT margin 9
Slide 66: Stella Pack – integration started, synergies in 2024
Stella Pack – integration started, synergies in 2024 FY 2024 (€m) Net Sales 81.1 Gross Profit 21.1 Gross Profit margin 26.0% EBIT 7.3 EBIT margin 9.0% Depreciation 3.2 EBITDA 10.5 EBITDA margin 13.0% Synergies Estimation 2024 expected synergies c. €1.5m 2025 expected synergies c. €2.0m 1466 Sarantis
Slide 67: Disproportional growth on Beauty & Skin care
Disproportional growth on Beauty & Skin care CAGR Net Sales (€m) 2023 2024* 2025 2026 2027 2028 2023-2028 Own brands 349.6 454.3 481.7 509.0 537.7 568.7 10.2% Beauty & Skin Care 48.2 57.2 70.0 77.7 87.1 99.7 15.7% Personal Care 102.8 108.1 112.7 120.1 127.8 134.9 5.6% Home Care 198.7 288.9 299.1 311
Slide 68: Doubling the EBITDA Organically in the next 5 years
Doubling the EBITDA Organically in the next 5 years (€m) 2023 2024* 2025 2026 2027 2028 Net Sales 482.2 595.2 627.9 662.5 698.9 737.4 %YoY 23.5% 5.5% 5.5% 5.5% 5.5% Gross Margin 182.0 225.1 239.3 254.5 270.6 287.6 % on NS 37.8% 37.8% 38.1% 38.4% 38.7% 39.0% A&P 28.6 33.9 37.2 40.6 41.5 42.4 % on NS
Slide 69: Investing for our future - Capex
Investing for our future - Capex Capex 2024 2025 2026 2027 2028 Oinofyta DC* € 7.0m € 18.0m Digital* € 5.0m € 4.0m € 3.0m transformation Stella € 3.0m € 6.0m € 5.0m € 2.0m € 2.0m Rest of Group € 5.0m € 5.0m € 4.0m € 6.0m € 6.0m Total € 20.0m € 33.0m € 12.0m € 8.0m € 8.0m €81.0 million investment pla
Slide 70: A business with Strong Free Cash Flow generation
A business with Strong Free Cash Flow generation € million 2023 2024 2025 2026 2027 2028 EBITDA 61.6 80.2 90.3 100.5 110.3 120.2 Tax 9.6 10.2 11.5 13.3 14.9 16.5 Working capital change (7.2) 14.1 0.8 (0.6) 0.4 2.2 Capex 7.3 20.0 33.0 12.0 8.0 8.0 Estee Lauder Sale Receivable 20.6 20.6 FCF 51.9 35.9
Slide 71: Enhancing shareholders' value
Enhancing shareholders’ value Dividends from Dividends paid 2023 profit since 2014 €15m > €100m 38.2% payout Cancelled Buy-backs treasury stock Since 2014 4.3% of share capital* c.€40m *As of 1st of August 2023 Buy-back program In place 71 Sarantis Sarantis Group Group Investor 2023 Half Day 2024 ye
Slide 72: Sarantis Investment case
Sarantis Investment case Giannis Bouras Deputy CEO
Slide 73: Why Sarantis has a strong Investment Case
Why Sarantis has a strong Investment Case ▪ Sustainable organic growth engine 01 ▪ Leading presence in all geographies ▪ Strong brand portfolio in the right categories ▪ Strong supply chain footprint with continuous investment plan 2X EBITDA in 5 years ▪ 02 ▪ Consistent dividend ~ 38% payout in rece
Slide 74: Legal Notice / Disclaimer
Legal Notice / Disclaimer This presentation has been prepared by GR. SARANTIS S.A. (hereinafter “Sarantis”) for the purposes of the Sarantis Group Investor Day 2024 event. The presentation includes general background information about the activities of the Sarantis Group at the date of the presentat
Slide 75: Thank you
Thank you