Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — FY2023 Earnings Presentation
36 slides from Purcari Wineries Public's earnings presentation, February 2024
Slide 1: Purcari Wineries Public Company Limited Corporate Presentation
Purcari Wineries Public Company Limited BVB: WINE Corporate Presentation Preliminary Financial Results Financial Year: 2023 Page 1
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS MADE AVAILABLE ON THIS WEBSITE BY PURCARI WINERIES PUBLIC COMPANY LIMITED (the Company) AND IS FOR INFORMATION PURPOSES ONLY. This presentation and its contents do not, and are not intended to, constitute or form part of, and should not be construed as, constituting o
Slide 3: Board of Directors
Board of Directors Vasile Tofan Victor Bostan Chairman of the Board of Directors CEO, Founder, Executive Director ▪ Senior Partner at Horizon Capital, with over 15 ▪ Founder of the Group, since 2002. years of experience in investments in Consumer ▪ Over 35 years of experience in the wine Goods and T
Slide 4: Today's presenters
Today’s presenters Victor Bostan Vasile Tofan Chief Executive Officer, Founder Chairman of the Board of Directors ▪ Founder of the Group, since 2002. ▪ Over 15 years experience in FMCG ▪ Over 35 years of experience in the wine ▪ Senior Partner at Horizon Capital, with industry. focus on investments
Slide 5: Agenda
Agenda Alb de Purcari A full, sensual, slightly velvety experience that 1 seduces the senses like a Purcari Wineries Group first love. A wine of a beautiful light golden color, with a fruity taste with delicate accents of oak. 2 50% Chardonnay 35% Pinot Grigio 2023 Preliminary Results 15% Pinot Blan
Slide 6: Purcari Wineries Group at a glance
1 Purcari Wineries Group at a glance Leading wine player in Central and Eastern Europe... ... with a strong & expanding regional footprint Founded in 1827, Purcari Wineries Group is now... Geographical breakdown of sales for 2023, % The most successful winery from CEE at Decanter World MD Wine Award
Slide 7: Strong track record of growth year to year
1 Strong track record of growth year to year Sustainable profitability accompanying strong growth Comments 2017 2018 2019 2020 2021 2022 2023 ▪ IPO on Bucharest Stock Exchange in February 2018 Revenue 142.3 168.1 199.1 203.7 248.1 302.5 369.4 ▪ Increased sales 2.6x since pre-IPO CoS -74.5 -85.5 -100
Slide 8: Long history of growth, high profitability
1 Long history of growth, high profitability Revenues EBITDA Net Income RON m RON m RON m 369 111 69 99 60 281 59 303 51 281 248 75 83 63 262 65 40 46 199 204 60 38 54 41 169 29 142 42 33 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 (1) RON
Slide 9: Our business model: Affordable luxury
1 Our business model: Affordable luxury Modern cost-competitive winemaking Purcari is positioned at the intersections of three themes: ▪ Modern winemaking: the company is a brand, as opposed to appellation- centric and runs a cost-efficient business. ▪ Affordable luxury: as an aspirational brand, Pu
Slide 10: Topping competition at engagement and quality
1 Topping competition at engagement and quality Aspirational brand which consumers like sharing about Highest number of ratings and highest scores on Vivino No. of #brand uses on Instagram (k), by key Romanian brands X axis – number of Vivino ratings; Y axis – average Vivino score 16.9 4.2 4.1 4.0 3
Slide 11: Vivino feedback remains very strong, essential for online sales
1 Vivino feedback remains very strong, essential for online sales #1 presence in the crucial RON 30-60 segment, holding 14 out of TOP-25 positions ▪ We remain obsessed with the quality of our wines, which pays off in excellent consumer feedback. ▪ In our core premium segment, 30-60 RON per bottle sh
Slide 12: Growth in Vivino usage – key for consumer engagement
1 Growth in Vivino usage – key for consumer engagement, ecommerce 4.2 Top 1% 76 Average score out of Global ranking based on # countries where 5.0 YoY avg. score received Purcari was scanned Page 12
Slide 13: Agenda
Agenda Negru de Ceptura A rich, complex and elegant blend with a round, velvety taste and 1 an aroma of well-ripened Purcari Wineries Group red fruits. A wine of an intense ruby color with a harmonious bouquet of chocolate, coffee and spices. 2 2023 Preliminary Results Merlot, Cabernet Sauvignon and
Slide 14: Key operational highlights for 2023
2 Key operational highlights for 2023 ▪ Revenues up 22% to RON 369.4m on higher volumes, better mix and select price increases, reaching the top-end of the guidance. Core Wine revenues +21% YoY, Ecosmart contributing +RON 30m. Ongoing revenue ▪ Purcari and Crama Ceptura performing strong +29% and 26
Slide 15: Commentary on developments in Transnistria
2 Commentary on developments in Transnistria: “a nothing burger” • Stock sell-off, ~8% down over 2 days at trough, driven by Purcari Group assets in Moldova geopolitical-risk commentary of low-level politician; 4 brands, 6 locations, ~1,300 ha of vineyards • Commentary speculated on Transnistrian Co
Slide 16: PL: Delivering strong, while navigating macro crosscurrents
2 PL: Delivering strong, while navigating macro crosscurrents Purcari Group Comments RON m 4Q23 4Q22 ∆ 4Q 2023 2022 ∆ 12M ▪ 4Q23 reached 32% of total yearly sales. Gross Revenue 116.9 102.7 14% 369.4 302.5 22% margin at 38%, -2pp vs 4Q23 on costlier bulk from Cost of Sales -72.2 -61 18% -220.8 -170.
Slide 17: Segment reporting: growing strong in WINE
2 Segment reporting: growing strong in WINE Purcari Group Ecosmart WINE Business Comments RON m 2023 2022 ∆ 12M 2023 2022 ∆ 12M 2023 2022 ∆ 12M Revenue 369.4 302.5 22% 30.0 21.4 40% 339.4 281.1 21% ▪ Overall strong performance of Cost of Sales -220.8 -170.2 30% -23.4 -16.2 45% -197.4 -154.0 28% core
Slide 18: Strong balance sheet – a solid footing for current macro environment
2 Strong balance sheet – a solid footing for current macro environment Cash Position Net Debt RON m RON m 50.8 Cash and 109 123 32.1 98 Receivables 76 21.8 23.5 18.1 66 12.6 46 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Current Ratio Cash Ratio 2.08x 1.78x 0.
Slide 19: Continuous growth expansion, amid macroeconomic shifts
2 Continuous growth expansion, amid macroeconomic shifts Market Share of sales, 2023 ∆ ’23/’22 YoY Comments ▪ RO: +30% in 4Q23 YoY. Strong growth for all brands across the RO 59% +35% channels, 4Q representing 33% of total 2023 sales. Purcari outstanding performer, closely followed by Crama Ceptura,
Slide 20: Sales growth in a challenging consumer environment
2 Sales growth in a challenging consumer environment Brand Share of sales, 2023 ∆ ’23/’22 YoY Comments ▪ PURCARI: Significant volume growth coupled with price increases. Consumer demand proved resilient and premiumization strategy continues to deliver excellent 56% +29% results. Romania leads the gr
Slide 21: Exceptional 2023 agricultural season: high-quality vintage and good yield
2 Exceptional 2023 agricultural season: high-quality vintage and good yield Good 2023 harvest Comments Own harvest and 3rd party purchases of grapes, million kg ▪ Strong own harvest despite unfavorable weather 38.0 conditions of moderate rains and heat waves just before harvesting. 35.1 34.1 ▪ Fulfi
Slide 22: Outstanding results at most reputable wine competitions
2 Outstanding results at most reputable wine competitions Best Producer from Moldova 2023 Gold at Asia Wine Trophy 2023 Best Wine from Moldova in the As well as 24 distinctions granted by 15 Gold Medals awarded to Château Purcari Competition Mundus Vini Spring Tasting wines And 7 Gold Medals from Co
Slide 23: Continue supporting, engaging, inspiring…
2 Continue supporting, engaging, inspiring… National Wine Days – October 2023 Launch of Cuvee de Purcari Adamant Purcari Rară Neagră Campaign The Board of Directors took the opportunity Launched in December 2023, the epitome of A campaign that promotes indigenious to participate at the National Wine
Slide 24: Continue supporting, engaging, inspiring…
2 Continue supporting, engaging, inspiring… Domeniile Cuza – Winter Campaign Purcari Cuvee New Year show Academia Purcari – Podcast Awareness campaign with brand Cuvee de Purcari product placement Partnership with Fain si Simplu ambassador Horia Brenciu campaign Product placement by Mihai Morar, inf
Slide 25: Agenda
Agenda DAOS Pinot Noir A medium-sweet red, distinguished by an intense dark color. Made 1 from manually harvested Purcari Wineries Group Pinot Noir grapes with a full, velvety and harmonious flavor. Tasting notes of forest fruit. 2 100% Pinot Noir 2023 Preliminary Results Recommended serving tempera
Slide 26: Guidance 2023: delivered on promise
3 Guidance 2023: delivered on promise Target 2023 guidance 2023 actuals Status Comments ▪ Revenue growth was driven equally by higher volumes and pushed-through price increases. Revenue growth +18-22% +22% > Revenue growth, +14-18% +21% > WINE1 ▪ Net Income margin target was met in all four quarters
Slide 27: Guidance 2024
3 Guidance 2024 Target 2024 guidance Comments ▪ Affordable luxury category coping well in current environment, expect revenue growth trends broadly in line with 2023. Revenue +16-20% ▪ Turnover for Waste Recycling Division expected to decrease growth following the legislation on the Warranty-Return
Slide 28: Agenda
Agenda Divin Bardar Gold 10 years A divin of deep taste that gradually 1 reveals flavors Purcari Wineries Group of cigar leaf, iced coffee and dried prunes, with a discreet scent of wood 2 and leather. 2023 Preliminary Results Aged in the finest oak barriques for at least 10 3 years. Guidance 4 BVB:
Slide 29: Purcari Wineries PCL (BVB:WINE)
4 Purcari Wineries PCL (BVB:WINE) Consensus forecasts Backed by Reputable shareholders Rating Target Price Date Wood & Company Buy 17.80 Oct-23 Raiffeisen Buy 18.00 Feb-24 BT Capital Outperform 12.263 Aug-23 Ipopema Buy 11.50 Aug-23 Goldring1 na 10.10 Apr-23 ▪ #4 best performing among companies in B
Slide 30: Stock performance, WINE +83% since the end-of-2022, well ahead of BET
Stock performance, WINE +83% since the end-of-2022 4 (as of Feb-20), well ahead of BET WINE (Purcari Wineries) DIGI (Digi Communications N.V.) AQ (Aquila Part) M (Med Life S.A.) BET (index) SFG (Sphera Franchise Group) 210 “Consumer” peers = relevant companies outside of financials, utility, and ene
Slide 31: Purcari shares liquidity
4 Purcari shares liquidity Rapid rise of stock’s liquidity after starting working with Relative to Market Cap, our stock is top-ranked among Market Makers for Purcari shares BET components Daily volume Ratio of daily trade value to Market Capitalisation, 2021-2024 YTD average, bps BRK 1 Purcari Wine
Slide 32: EBITDA profitability relative to WINE listed peers
4 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies EBITDA 2023 Margin, % 26.7% 23.4% 16.7% 15.6% 14.6% Average margin: 13.7% 12.7% 12.6% 10.2% 9.7% 7.5% 7.2% 6.8% 1 Source: Capital IQ, Company Data as per Capital IQ as of February 20th, 2024. (1) Italian W
Slide 33: Valuation relative to wine peers
4 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 92.2 42.1 37.0 31.9 23.6 Average P/E: 23.5x 15.8 13.9 13.4 12.1 11.8 11.3 9.1 8.2 6.6 Source: Net Income and Market Cap as per Capital IQ as of February 20th, 2024. Note: Diluted EPS excluding extra items
Slide 34: Valuation relative to Romanian listed peers
4 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 29.3 19.0 16.2 12.6 Average P/E: 11.1x 9.2 8.2 8.1 7.9 6.7 5.6 5.2 5.1 1 Source: Capital IQ, Company Data as per Capital IQ as of February 20th, 2024. Note: Diluted EPS excluding extra items
Slide 35: High growth not reflected in valuation yet
4 High growth not reflected in valuation yet Purcari vs selected wine public companies Purcari vs selected Romanian public companies 1 Energy companies 35 35 30 30 25 25 Revenue CAGR’19-22* in USD Revenue CAGR’19-22 in USD 20 20 15 15 10 10 5 5 0 -5 0 -10 -5 0 5 10 15 20 25 30 35 40 45 50 55 60 65 7
Slide 36: Thank you!
Thank you! CRAMA CEPTURA BOSTAVAN 3ARDAR Ss
Purcari Wineries Public Company — FY2023 Earnings Presentation on 6ix