Milkiland Foods Plc · GPW:MLK
Milkiland Foods — Milkiland — H1 2013 Earnings Presentation
22 slides from Milkiland Foods's earnings presentation, October 2013
Slide 1: Management presentation
Management presentation October 2013
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OF AMERICA, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL. IMPORTANT NOTICE By attending the meeting where this presentation is made, you agree to be bound by the following limitations. In
Slide 3: Agenda
Agenda 1. Milkiland at a Glance 4 2. Attractive dairy markets 6 3. Milkiland overview 9 4. Results of the 1st half 2013 15 3
Slide 4: Milkiland at a Glance
Milkiland at a Glance 4
Slide 5: Milkiland at a glance
Milkiland at a glance Our markets and sales, 2012 Our products 64% Full range of consumer dairy products and dry milk products 2012 Russian Federation 4% Focus on cheese & butter (yellow palette) and whole milk products (white palette), 51% and 40% 32% of 2012 revenues respectively Ukraine Kazakhsta
Slide 6: Attractive dairy markets
Attractive dairy markets
Slide 7: Attractive dairy markets in Russia and Ukraine
Attractive dairy markets in Russia and Ukraine… Market split by country (2011, EUR bn*) ca. 190 million combined population ca. EUR 17.2 billion dairy market size in 2011 Ukraine 2,1 Established traditions of dairy consumption 17.2 Russia 15,1 High historical growth in key segments Market growth by
Slide 8: … with significant growth potential…
… with significant growth potential… Consumption of drinking milk (2011) Current per capita consumption lags behind 120 100 neighbouring European countries 100 (kg per capita) 73 75 80 63 57 Historical level of consumption in Russia 60 42 34 and Ukraine was significantly higher 40 20 0 Consumption o
Slide 9: Milkiland overview
Milkiland overview
Slide 10: Our Strategic goals
Our Strategic goals Milkiland is well- Dairy consumption positioned to lead Strong local players in Russia and market can capitalize on Ukraine poised for consolidation across market growth and growth led by the CIS and make an consolidation trend cheese and acquisitions of whole milk products attra
Slide 11: Strong organic growth with selective M&A
Strong organic growth with selective M&A Development of whole milk Acquisition Acquisition of operations integration Ostrowia in 2012 Acquisition of Ostankino in Brand portfolio 2008 streamlining 270 287 280 Main cheese production capacities acquired and modernized 259 By 2007 Milkiland becomes the
Slide 12: Among the industry best performers
Among the industry best performers EBITDA per ton of milk, EBITDA per EUR of labour EUR, 2012 EBITDA margin, 2012 190,0 costs, EUR, 2012 Industry average 9,0% 1,2 1,2 Milkiland 13,2% 89,8 81,4 Glanbia 8,0% 73,3 0,8 64,2 Parmalat 8,5% 57,2 0,6 0,6 0,6 Danone 16,4% 47,2 0,5 Saputo 12,0% 27,2 29,5 Deut
Slide 13: Milkiland today – integrated dairy company
Milkiland today – integrated dairy company Warehousing Marketing Raw milk supply Production & distribution & sales •Long-standing •13 production •Extensive distribution •Three umbrella relationships with facilities with milk network in Ukraine brands (Dobryana, suppliers across 17 processing capacit
Slide 14: Diversified and flexible business model…
Diversified and flexible business model… Ostankino Ostrowia Mena Revenue by geography (EUR m, 2012) Chernigiv Sumy Other countries Kyiv Romny Okhtyrka 4% Slavuta Russia Kharkiv 64% Lviv Myrhorod Ukraine 287 32% Lactis Dnipropetrovsk Donetsk Milk intake capacities: Agrolite Zaporizhya 10-50k tonnes 5
Slide 15: Multiple sales and distribution channels
Multiple sales and distribution channels Hypermarket and supermarket Revenues by distribution channel (EUR m, 2012) chains active in the CIS Key accounts More than 20 key accounts in Other Key 2012, including Metro, X5, accounts Auchan, Fozzy and Furshet Local retail 287 Key distributors of cheese a
Slide 16: Strong portfolio of local brands
Strong portfolio of local brands • In 2013, the Group’s brand portfolio has been expanded with two new brands, Ostrowia Russian Federation and Łąki Mazowsza •Łąki Mazowsza is a new brand of hard cheeses produced by Ostrowia cheese plant in a heart of green Masowia region, targeted for the Polish mar
Slide 17: Milkiland: Financial performance, Results of H1 2013
Financial Milkiland:performance Results of H1 2013 17
Slide 18: Key operational highlights of H1 2013
Key operational highlights of H1 2013 Operational results •Spike in global milk prices, coupled with seasonal shortage in Ukraine and Russia, resulted in some margin squeeze to dairy producers; in these circumstances the Group looked to optimize its cost base by refraining from the most expensive mi
Slide 19: Key operational highlights of H1 2013
Key operational highlights of H1 2013 Ostrowia, a new growth driver •Poland is among the largest cheese exporters to Russia: in 2012 Polish cheese exports grew by 84% to make more than 5% of the total Russian imports • In H1 2013, the Group fulfilled its strategic initiative to modernize its EU Poli
Slide 20: Financial Performance in H1 2013
Financial Performance in H1 2013 Financial results 151,1 Key Financials 134,1 •Revenues grew by c. 13% to EUR 151.1 million driven mainly by better WMP sales, both in Russia and Ukraine •Gross profit and EBITDA, although 34,7 34,0 decreased on y-o-y basis by, respectively, 16,2 13,7 2% (to c. EUR 34
Slide 21: Balance sheet items & debt profile
Balance sheet items & debt profile Balance sheet Net debt • Current assets grew by 11% from EUR 113.9 92,8 as of December 31, 2012 to EUR 127.0 million 73,1 as of June 30, 2013, as the Group used summer availability of surplus milk to recover 53,6 the inventories. Start of hard cheese production at
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