ATLANTIC GRUPA Company of Added Value

Transcription

1 ATLANTIC GRUPA Company of Added Value Maja Barać Adrinek, Head of Investor Relations and Business Development East Capital Summit, Belgrade 04 June 2014

2 CONTENT BUSINESS OVERVIEW FINANCIAL OVERVIEW STRATEGIC GUIDANCE 2

3 ATLANTIC GRUPA TODAY Business card Among the leading food and beverage companies in the SEE region Making business Companies in 11 countries and products in over 40 markets Key markets: SEE, Western Europe, Russia 17 production facilities Foundation 1991 FY13 sales EUR 674 millions FY13 EBITDA EUR 79 millions No of employees 4,228 Listed on the Zagreb Stock Exchange Since 2007 The region includes: Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Macedonia and Kosovo. Reporting currency HRK, all figures in the presentation translated at EUR/HRK FX rate of

4 DISTRIBUTION DISTRIBUTION & PRODUCTION VERTICAL INTEGRATION DEVELOPMENT CYCLE: EXTENSIVE M&A TRACK RECORD National company 1990 s Distribution centres across Croatia Regional company Regional expansion European company : Acquisition of DROGA KOLINSKA Several small-size acquisitions Various distribution cooperations 2001: Acquisition of CEDEVITA 2007: IPO 2005: Acquisition of MULTIPOWER Sales in EURm CAGR : +38.0% * *: Pro-forma consolidated with Droga Kolinska. 4

5 Distribution Sports and Functional Food Baby Food Snacks Pharma Savoury Spreads Personal Care Coffee Beverages PORTFOLIO OVERVIEW 5

6 ATLANTIC GRUPA S BUSINESS MODEL TODAY SBU SBU SBU SBU SBU SBU BU COFFEE BEVERAGES SPORTS AND FUNCTIONAL FOOD PHARMA AND PERSONAL CARE SAVOURY SPREADS SNACKS BABY FOOD SDU SDU SDU SDU SDU DU DU Croatia Serbia HoReCa Hotels, Restaurants, Cafes International Markets* CIS Slovenia Macedonia *International markets: markets outside the region (Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Macedonia and Montenegro), Russia and CIS. 6

7 SALES AND PRODUCTION PROFILE Sales by countries Other markets 6.4% Russia and CIS 5.9% Key European markets** 11.7% Croatia 24.8% Sales by segments Beverages 12.9% Savoury spreads 9.1% Baby food 4.2% Principal brands 15.0% Sports and Functional Food 15.5% Other regional markets* 6.3% Bosnia and Herzegovina 7.2% Slovenia 13.6% Serbia 24.1% Sweet and salted snacks 12.2% Coffee 21.5% Pharma & Personal care 9.7% Slovenia Croatia Overview of production facilities Sales by brands Principal brands 15.0% Bosnia and Herzegovina Serbia Own brands 72.5% Private label 6.4% Farmacia 6.1% + production facility in Germany Macedonia Sales profile in 2013; *Other regional markets: Macedonia, Montenegro, Kosovo; **Key European markets: Germany, UK, Italy, Switzerland, Austria, Sweden, Spain 7

8 STABLE MANAGEMENT TEAM AND OWNERSHIP STRUCTURE Management Ownership structure on 31/03/2014 Emil Tedeschi President of the Management Board Pension funds 18.2% EBRD 8.5% Mladen Veber Senior Group Vice President Business Operations Strategic Management Council Supervisory board Zoran Stanković Group Vice President Finance Deals with vital strategic and operational corporate issues. Neven Vranković Group Vice President Corporate Affairs Consists of: Board Members, Vice Presidents and General Managers of each SBU and SDU, Senior Executive Director for Regional KAM and Sales Croatia, the Secretary General, Executive Directors of Corporate Controlling, IT, Central Purchasing and Human Resources, and the Head of the Investment Committee. Emil Tedeschi 50.2% DEG 8.5% Lada Tedeschi Fiorio 5.8% Management 1.2% Others 7.6% Supervisory Board Zdenko Adrović President of the Supervisory Board Lada Tedeschi Fiorio Vice President of the Supervisory Board Siniša Petrović Member of the Supervisory Board Željko Perić Member of the Supervisory Board Franz Josef Flosbach Member of the Supervisory Board Aleksandar Pekeč Member of the Supervisory Board Vedrana Jelušić Kašić Member of the Supervisory Board Audit Committee Nomination and Remuneration Committee Corporate Governance Committee 8

9 CONTENT BUSINESS OVERVIEW FINANCIAL OVERVIEW STRATEGIC GUIDANCE 9

10 FINANCIAL OVERVIEW: (EURm) FY10 FY10 pro-forma FY11 FY12 FY13 CAGR FY10 pro-forma - FY13 FY13/FY12 Revenues % 2.2% Sales % 2.5% EBITDA % 5.8% EBIT % 6.4% Net profit % 76.9% EBITDA margin 8.9% 11.7% 10.9% 11.3% 11.7% +3bp +37bp EBIT margin 6.5% 6.1% 7.4% 8.1% 8.4% +229bp +31bp Net profit margin 3.8% 2.8% 1.5% 2.3% 3.9% +116bp +166bp Net debt Total assets Equity Gearing ratio* 63.2% 63.2% 62.3% 61.7% 55.2% Net debt/ebitda Cash Flow from Operating activities P&L figures normalized; *Gearing ratio calculated as Net debt/(total equity+net debt). 14 n/a Balance sheet as of YE10 reflected consolidation of Droga Kolinska, but P&L accounts were not consolidated in FY10 (consolidation started as of 01/01/2011). In 2014, the classification of contracted marketing expenses has changed from Marketing and selling expenses to decrease in Sales revenues, and classification of support for contracted marketing expenses has changed from decrease in Marketing and selling expenses to decrease in Cost of merchandise sold. This reclassification decreases above presented sales by HRK 44.9 million in 2013 and HRK 40.9 million in

11 GUIDANCE TRACK RECORD Sales (EURm) % % % 99% % 559 Reported Guidance 99% 98% % % 0 EBITDA (EURm) 99% % 98% 101% % 559 Reported Guidance 101% 102% 98% % EBIT 99% (EURm) Reported Guidance 104% 97% 101% Atlantic Grupa listed on the Zagreb Stock Exchange on 19th of November % 99% 95% Since 2008 Atlantic Grupa publishes guidance for the following financial year and delivers it % %

12 PERFORMANCE BY STRATEGIC BUSINESS AND STRATEGIC DISTRIBUTION UNITS IN 2013 EURm /2012 EURm /2012 SBU Beverages (3.0%) SBU Coffee (0.3%) SBU (Sweet and Salted) Snacks % SBU Savoury Spreads (1.0%) SBU Sports and Functional Food % SBU Pharma and Personal Care % SDU Croatia (8.0%) SDU Slovenia, Serbia, Macedonia % Other segments* % Reconciliation** (296) (298) (0.8%) Sales % SBU Beverages (10.8%) SBU Coffee % SBU (Sweet and Salted) Snacks (3.0%) SBU Savoury Spreads % SBU Sports and Functional Food % SBU Pharma and Personal Care 6 8 (16.3%) SDU Croatia % SDU Slovenia, Serbia, Macedonia (2.3%) Other segments* (23) (19) 22.3% Group EBITDA % * Sales and profitability shown according to AG s business model valid in 2012 and Other segments include SDU HoReCa, Russian market and non-allocable business activities (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. SDU International Markets sales and profitability is presented within SBU to which they relate. The Russian market includes only the baby food product range sales under the Bebi brand. ** Line item Reconciliation relates to the sale of own brands which is included in the appropriate SBU and in SDUs through which the products were distributed. *** Sales correspond to figures in 2013 Audit Report. In 2014, the classification of contracted marketing expenses has changed from Marketing and selling expenses to decrease in Sales revenues, and classification of support for contracted marketing expenses has changed from decrease in Marketing and selling expenses to decrease in Cost of merchandise sold. This reclassification decreases above presented sales by HRK 44.9 million in 2013 and HRK 40.9 million in

13 FINANCIAL OVERVIEW IN Q Key highlights (EURm) Q Q Q1 2014/ Q EURm Q Q1 2013* Q1 2014/ Q SBU Beverages % Revenues % Sales % EBITDA % EBIT % Net profit % EBITDA margin 10.6% 10.4% +28 bp EBIT margin 7.6% 7.0% +63 bp Net profit margin 2.9% 2.8% +7 bp SBU Coffee (5.8%) SBU (Sweet and Salted) Snacks (7.4%) SBU Savoury Spreads (4.3%) SBU Sports and Functional Food % SBU Pharma and Personal Care % SDU Croatia % SDU Serbia (6.9%) SDU International markets 9 10 (5.2%) DU Slovenia % Other segments** (0.8%) Reconciliation*** (75) (77) (3.0%) Sales % * Other segments include SDU HoReCa, SDU CIS, BU Baby Food, DU Macedonia and business activities not allocated to business and distribution units (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. ** Line item Reconciliation relates to the sale of own brands which is included in the appropriate SBU and BU and in SDUs and DUs through which the products were distributed. *** In 2014 the classification of contracted marketing expenses has changed from Marketing and selling expenses to decrease in Sales revenues, and classification of support for contracted marketing expenses has changed from decrease in Marketing and selling expenses to decrease in Cost of merchandise sold. In accordance with these changes, sales revenue (referring to sales from distribution company Atlantic Trade Zagreb) for segment information for the three month period ended 31 March 2013 has also been restated, but no restatement has been made for sales revenue referring to SBU Savoury Spreads on markets outside the region and BU Baby Food due to immateriality. 13

14 PERFORMANCE ON CROATIAN CAPITAL MARKET Performance on capital market ATGR-R-A Points ATGR-R-A vs CROBEX EUR 40% 0% 34% 7% 3% 2% 0% -1% 18% 10% 5% 48% 16% Crobex Crobex10 6,000 5,000 4,000 CROBEX ATGR-R-A % -15% -18% -38% -47% 3,000 2, % -67% /05/ /12/2013 Last price (in EUR) Market capitalization* (EUR millions) Valuation Last price in reporting period Market capitalization* (EUR millions) Average daily turnover (EUR thousands) EV (EUR millions) EV/EBITDA** EV/EBIT** EV/sales** EPS** (in EUR) P/E** ,000 0 The Atlantic Grupa s share significantly outperformed the growth of Crobex and Crobex10 and ended 2013 at EUR 96, which was a 34.0% growth within a year. With the average market capitalisation of EUR 290 millions, Atlantic Grupa took the fifth place among the components of the CROBEX10 stock index in * Closing price multiplied by the total number of shares ** Normalized in

15 CONTENT BUSINESS OVERVIEW FINANCIAL OVERVIEW STRATEGIC GUIDANCE 15

16 STRATEGIC GUIDANCE FOR 2014 Focus on organic business growth through active brand management with a special emphasis on strengthening the position of regional brands (Cockta, Cedevita, Smoki, Grand Kafa, Barcaffe, Bananica, Štark) and brands with international potential (Multipower, Argeta, Donat Mg, Bebi, Cedevita GO!); Strengthening the regional character of distribution through the extension of the principals brands portfolio; STRATEGIC MANAGEMENT GUIDANCE Active development of the regional HoReCa segment with a portfolio that covers '24/7 consumer needs' and other sale channels (Online, Etno channel); Rationalisation of operations, cost management and optimisation of business processes on all operating levels aimed at improving operating efficiency; Active monitoring of trends and hedging the price of raw coffee and other raw materials; Regular settlement of existing financial liabilities with an active management of debt and financial expenses; and Prudent liquidity management and further deleveraging. EURm 2014 Guidance /2013 Sales % EBITDA % EBIT % Interest expense (12.1%) Sales: 3% sales growth at the organic level and sales from the distribution of the Unilever product range of HRK 240 million. Capital expenditure at HRK 216 million, 46% of which relates to the investment in the new factory of energy bars in Nova Gradiška. The expected effective tax rate in 2014 should be at the 2013 level. 16

17 ATLANTIC GRUPA Company of Added Value Maja Barać Adrinek, Head of Investor Relations and Business Development East Capital Summit, Belgrade 04 June 2014