Slide 1: Purcari Wineries Plc 1H 2021 Results Presentation
Purcari Wineries Plc 1H 2021 Results Presentation 26 August 2021 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: Today's presenters
Today’s presenters Victor Bostan Victor Arapan Eugeniu Baltag Eugen Comendant Vasile Tofan CEO, Founder CFO Investor Relations COO Chairman ▪ Founded the Group ▪ 20+ years of experience ▪ Over 10 years in ▪ Over 15 years of ▪ Over 15 years in 2002 in banking, audit, financial management, management
Slide 4: Agenda
AGENDA 1 Our Group, Vision and Strategy Cuvée de Purcari Alb Brut, 4.2 score on Vivino, top 2% wine globally. 2 1H 2021 Operational Results BEST IN SHOW at Mundus Vini 2021. 3 2021 Outlook 4 Q&A Page 4
Slide 5: 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 by French colonists, Purcari group is now... Geographical breakdown of sales in value terms, 1H21, % RO MD PL UA CN #1 World’s most awarded winery
Slide 6: Our Group: competitive advantage in an attractive market
1 Our Group: competitive advantage in an attractive market Secular shift from Attractive beer, spirits to Competitive #1 premium wine market wine, especially in advantage brand in Romania CEE Plenty to catch Wine growth ’16- #1 most awarded up: wine #1 fastest growing ’20F in Romania CEE winery at c
Slide 7: 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 brand, as opposed to appellation- centric and runs a cost-efficient business ▪ Affordable luxury: as an aspirational brand, Purca
Slide 8: Our mission, vision and values
1 Our mission, vision and values Our mission Our values To bring joy in people’s lives, by Hungry offering them high quality, inspiring, We win in the marketplace because we want it more ethical wines and excellent value for Ethical money. Always do the right thing and the money will follow Thrifty
Slide 9: Vision: be the consolidator of a fragmented market
1 Vision: be the consolidator of a fragmented market Volume share top-3 players by country, % 79 77 82 74 #3 67 63 68 #2 41 39* 36 18 #1 10 Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Unlike beer or spirits, wine market remains very fragmented; players who have the scale
Slide 10: Quality highly commended, remain the most awarded winery in CEE
1 Quality highly commended, remain the most awarded winery in CEE Leading medal-winning winery in CEE at Decanter, Increasing number of medals won from year to year the Wine ”Olympics” # of Decanter medals in 2015 − 21 # of medals #1 103 Mundus Vini 97 Concours Mondial de Bruxelles Challenge Interna
Slide 11: 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 Number of #brand uses on Instagram, thousand, by key Romanian brands X axis – number of Vivino ratings; Y axis – average Vivino score 12.5 4.2
Slide 12: 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 11 out of TOP-25 positions #1 • 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
Slide 13: Growth in Vivino usage, key for consumer engagement
1 Growth in Vivino usage, key for consumer engagement 4.22 83% Top 1% Average score out of Scores equal or Global ranking based 5.0 in 1H21 above 4.0 on avg. score received 55,358 +21% 914 Total Vivino 1H 2021 YoY scans # of cities where scans in 1H21 growth Purcari has been scanned Page 13
Slide 14: Agenda
AGENDA Negru de Purcari 2015, GOLD at 1 Our Group, Vision and Strategy Concours Mondial de Bruxelles, 4.4 2 1H 2021 Operational Results score on Vivino, top 1% wine globally 3 2021 Outlook 4 Q&A Page 14
Slide 15: Strong growth, offsetting pandemic effects
2 Strong growth, offsetting pandemic effects Revenues EBITDA Net Income RON m RON m RON m 106.5 35.1 +25% +24% +31% 20.4 30.1 17.1 87.8 28.3 84.9 15.6 1H19 1H20 1H21 1H19 1H20 1H21 1H19 1H20 1H21 Growth vs. 1H19, +21% 34% 33% 33% 19% 18% 19% EBITDA margin Net Income margin Page 15
Slide 16: Turned crisis into an opportunity, boosting market share in Romania
2 Turned crisis into an opportunity, boosting market share in Romania Consolidated #4 in overall market at 10%+ share… …while maintaining pole position in premium #1 Value share of TOTAL retail market, Romania, % Value share of Premium (RON 30+/liter) retail market, Romania, % 18 Purcari 26 26 Sambu
Slide 17: 2020 crystalized Purcari's position as fastest growing player in Romania
2020 crystalized Purcari’s position as fastest growing player in 2 Romania; top-2 of peer group on net margin too Top players in Romania: revenues vs. growth vs. net profit margin (2020) 40 Profit margin, % (2020) 30 Cramele Recas 20 Purcari Jidvei Segarcea 10 Budureasca Cotnari Vincon 0 Samburesti
Slide 18: Key operational highlights for 1H21
2 Key operational highlights for 1H21 • Revenues up 25% vs 1H20 on “back to normal” conditions; surpassing 1H19 by 21%. Revenue growth in 2Q21 at +47% and net income up 34% • Romania leading the growth with all brands showing strong traction; Moldova and China continue V shape Accelerating recovery,
Slide 19: P&L: Strong performance in a back to normal environment
2 P&L: Strong performance in a back to normal environment Comments ∆ ∆ ▪ Revenue well above 1H20 +25% and pre-COVID 1H19 RON m 1H21 1H20 1H19 +21% levels. Organic growth and relaxation on pandemic '21/'20 '21/'19 restrictions on most markets in 2Q pushed up the sales. Revenue 106.5 84.9 87.8 25% 21%
Slide 20: Romania leading the growth; Moldova and China strong rebound
2 Romania leading the growth; Moldova and China strong rebound Share of sales YoY Variance Market Comments 1H21 1H20 1H19 • RO: continue the strong rally +29% vs. 1H20 and +60% vs 1H19. Purcari RO 53% +29% +60% leading the growth by 36% YoY. Bardar doubled sales YoY, albeit from smaller base. IKA sa
Slide 21: Premium Purcari and Crama Ceptura brands lead the growth
2 Premium Purcari and Crama Ceptura brands lead the growth Share of sales YoY Variance Brand Comments 1H21 1H20 1H19 • PURCARI: Ongoing strong traction in all markets, combining volume and value increase. Firm recovery in Moldova and Asia, still behind 1H19 level. Promising performance in newer 49%
Slide 22: Outstanding results at most reputable wine competitions
2 Outstanding results at most reputable wine competitions… Page 22
Slide 23: Continue creating, supporting, inspiring
2 Continue creating, supporting, inspiring… World’s most awarded winery Tokyo 2020 Purcari (Mar) Highest # of medals won General Sponsor for Moldovan #9March #EveryDay Olympic Team Bostavan - #DeDor (Apr-May) Purcari Wine Run (Sep) Bardar – Storytelling (1Q) “I miss you” 1.2 m views on FB, YT 10km/2
Slide 24: Political leadership reboot in Moldova; strong reform momentum
2 Political leadership reboot in Moldova; strong reform momentum New leadership in Moldova Key developments Maia Sandu • Parliamentary elections on July 11 delivered a resounding victory President for President’s Sandu PAS party, taking 63 seats in 101 parliament, • World Bank only 4 seats short of
Slide 25: Agenda
AGENDA Gold Medal and Best 1 Our Group, Vision and Strategy in Show by Country at London Wine Competition 2021, 2 1H 2021 Operational Results A complex of contradictions. The most perfect, yet controversial creature - 3 2021 Outlook Sapiens 4 Q&A Page 25
Slide 26: Guidance 2021 – on track to deliver
3 Guidance 2021 – on track to deliver Target 2021 guidance 1H2021 fact Status Comments • Romania remains biggest growth driver. Organic • Significant recovery in Moldova and Asia − still under revenue growth +12-14% +25% > • 2019 figures Bardar emerging strong, but under 2019 sales. Still facing hea
Slide 27: Thank you.
Thank you. Page 27