fy09 guidance
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1 Atlantic Grupa Company of Added Value Belgrade, May 2009
Transcript of fy09 guidance
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Atlantic Grupa
Company of Added Value
Belgrade, May 2009
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CONTENT
General overview of Atlantic Grupa
Overview of the FY08 financial figures
FY09 Guidance
Cedevita GO!
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Key brands:
The leading European company in the sports nutrition MULTIPOWER
Leader in the vitamin instant drinks in the SEE region CEDEVITA
Producer of the No1 Croatian brands in the VMS and the OTC DIETPHARM
The largest private pharmacy chain in Croatia FARMACIA
The leading FMCG distributer in the SEE region Distinguished International Brands (Ferrero, Wigley, Duracell, Johnson & Johnson)
VERTICALLY INTEGRATED COMPANY IN CONSUMER HEALTHCARE BUSINESS
FY08 sales EUR280m (+20% yoy)
Employees 1,670
Markets 30
Expected FY09 sales EUR290m
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VERTICALLY INTEGRATED COMPANY IN THE CONSUMER HEALTHCARE BUSINESS
FMCG DISTRIBUTION CONSUMER HEALTHCARE
Distribution Division Consumer Health Care
Division
Sports and Functional
Food DivisionPharma Division
Own brands
Principal brands
38% of sales
Vitamin drinks and teas
Cosmetics and personal
care
24% of sales
Sports and functional food
24% of sales
VMS
OTC
Pharmacy chain
14% of sales
SYNERGIES
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DEVELOPMENT CYCLE
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GEOGRAPHICAL PRESENCES – Companies and Representative Offices across Europe
Presence on
30 markets
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SALES GROWTH 1993-2008
CROATIAN COMPANY REGIONAL COMPANY EUROPEAN COMPANY
3 6 13 19 29 35 36 4164
86 92104
150
201
247
278
0
50
100
150
200
250
300
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
In EURm
CAGR 1993-2008: +35.2%
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SHAREHOLDER STRUCTURE
Stable ownership structure
Shareholder structure on March 31, 2009
52,72% E. Tedeschi
7,76% L. Tedeschi Fiorio
6,96% DEG
31,01% Free float
1,74% Management
0,28% Treasury shares
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ATLANTIC GRUPA AND THE CAPITAL MARKETS
Stable ownership structure
All domestic pension funds among top 10 shareholders
East Capital - the leading asset manager specialising in Eastern Europe
Road show in 2008 in the US
East Capital award for the Discovery of the Year in 2008
Pace of the ATGR-R-A share decline slower than the drop pace in the local benchmark Crobex
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OVERVIEW OF THE FY08 FINANCIAL FIGURES
In HRKm 2008 2007 2008/2007
Revenues 2.024,5 1.699,1 19,1%
Sales 2.002,9 1.670,0 19,9%
EBITDA 169,3 132,3 27,9%
EBITDA margin 8,45% 7,92% +53 bps
EBIT 129,4 95,1 36,0%
EBIT margin 6,46% 5,70% +77bps
Net profit after MI 68,6 46,4 47,9%
Strong business results
In line with the management guidance
Double-digit growth rates:
Sales +20%
EBITDA +28%
EBIT +36%
Net profit +48%
Acquisition of pharmacies contributed to the top-line growth with +13% - HRK221m
Strong organic growth:
Sales +6%
EBIT +19%
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SALES PROFILE
FY08
44,2% Own brands
37,7% Principal brands
7,1% Private label
11,0% Farmacia
Geographic sales profile in FY08
63,1% Croatia
11,6% Germany
4,9% Serbia
2,5% Slovenia
3,3% BiH
2,1% UK
2,2% Italy
10,1% Other
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EBITDA
EBIT NET PROFIT
PROFITABILITYOrganic growth
EBIT + 18.5% EBITDA + 14.2% Net profit + 23.7%
Strong focus and commitment to:
Cost optimisation Business process improvements Exploring synergies among divisions
169,3
132,3
80
100
120
140
160
180
2008 2007
(in H
RK
m)
8,5%
7,9%
+27.9%
129,4
95,1
80
90
100
110
120
130
140
2008 2007
(in H
RK
m) 6,5%
5,7%
+36.0%68,6
46,4
30
40
50
60
70
80
2008 2007
(in H
RK
m) 3,4%
2,8%
+47.9%
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DISTRIBUTION DIVISION
The leading regional distributer of FMCGs with top global and regional brands in their categories38% of sales
Sales (HRKm)
752,8
672,5
600
640
680
720
760
800
FY08 FY07
+11.9%
EBIT (HRKm)
23,7
21,2
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FY08 FY07
+12.0%
Sales growth drivers
New distribution deals focus on diversification of distribution portfolio
Growth across all distribution channels retail HoReCa
Extensive know-how key account management category management trade marketing
Profitability growth drivers
Economies of scale lower marginal costs in distribution
Developed network of distribution centres in the SEE Bargaining power Exploring brand synergies
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CONSUMER HEALTHCARE DIVISION
24% of sales Integrates R&D, manufacturing, packaging, marketing and sales of:
Cedevita vitamin instant drinks → No1 producer in the SEE region
Personal care products: Plidenta toothpaste, Rosal lip balmSales (HRKm)
487,5
467,5
440
460
480
500
FY08 FY07
+4.3%
EBIT (HRKm)63,2
55,2
50
55
60
65
FY08 FY07
+14.5%
Growth drivers
Strength of the Cedevita brand Atlantic’s best selling brand
New distribution channel – HoReCa (hotels, restaurants, cafes)
Markets with high consumption potential: Serbia, Slovenia
Cedevita entering new distribution channel Consumption on the GO → Cedevita GO!
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SPORTS AND FUNCTIONAL FOOD DIVISION
Integrates R&D, manufacturing, packaging, marketing
Key brand: Multipower for sports and functional nutrition24% of sales
Sales (HRKm)
480,4471,7
400
420
440
460
480
500
FY08 FY07
+1.8%
EBIT (HRKm)18,4
10,1
8
12
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FY08 FY07
+81.0%
Growth drivers
Strength of the Multipower brand Atlantic’s second best selling brand
The leading market position in Germany, Norway, Sweden, Croatia and Serbia
Markets with the highest growth: Russia, Sweden, Spain New trends toward healthier lifestyle
Successfully completed restructuring the highest EBIT growth among divisions
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PHARMA DIVISION
R&D, manufacturing, packaging, marketing and sales of VMS and OTC
Key brand in the VMS and OTC - Dietpharm The largest private pharmacy chain in Croatia - Atlantic Farmacia
14% of sales
Sales (HRKm)282,2
58,450
100
150
200
250
300
FY08 FY07
+383.6%
EBIT (HRKm)23,4
9,2
8
12
16
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FY08 FY07
+154.9%122%Dietpharm VMS and OTC
5.5%32 Pharmacies and 5 specialized stores
Market sharein Croatia
Rang incategory
Growth drivers
Acquisition of pharmacies/launch of specialised stores new distribution channel for the Group synergies across the Group’s distribution portfolio
Strategic focus on increasing participation of non-prescription drugs New product launches in the VMS and the OTC segment
Pharmacy business – margin-accretive for Atlantic
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KEY PERFORMANCE INDICATORS
(In HRK '000) 2008 2007
Turnover 2.024.459 1.699.103Sales 2.002.926 1.670.045EBITDA 169.306 132.330EBITDA margin 8,45% 7,92%EBIT 129.400 95.118EBIT margin 6,46% 5,70%Net income 68.629 46.405
Net debt 291.192 90.492Total assets 1.655.766 1.464.426Equity 710.976 651.529Interest coverage ratio 6,69 5,59Current ratio 1,76 1,83Gearing ratio 40,96% 13,89%CAPEX 58.700 54.349
Market capitalization * 1.138.668 2.166.210EV 1.479.060 2.302.671EV/EBITDA 8,74 17,40EV/EBIT 11,43 24,21EV/sales 0,74 1,38EPS 27,84 21,96P/E * 16,56 39,94* Calculated based on shaer price of HRK 461.00 as at 31 December 2008 and HRK 877.01 as at 31 December 2007
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FY09 GUIDANCE
In HRKm 2008 2009 Plan 2009/2008
Revenues 2.024,5 2.166 7,0%
Sales 2.002,9 2.143 7,0%
EBITDA 169,3 194 14,3%
EBIT 129,4 147 13,4%
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FY09 GUIDANCE
Even though Atlantic Grupa operates in stable industry, the management is well aware of challenges created by the economic and financing environments
Strict focus on: (i) Liquidity maintenance
(ii) Cost management
(iii) Business processes improvements
(iii) Implementation of new projects
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FY09 GUIDANCE New programs set to create opportunities even in challenging economic times:
Consumer Healthcare division Launch of Cedevita GO! – Cedevita in the new distribution channel
Distribution division New distribution agreements signed at the end of 2008/beginning of 2009:
Distribution of Karolina products – estimated annual turnover of HRK125m
Distribution of the Ferrero program in Slovenia – estimated annual turnover of EUR16m
Nestle’s NESCAFE assortment in the HoReCa channel – estimated annual turnover of HRK15m
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FY09 GUIDANCE New programs set to create opportunities even in challenging economic times:
Pharma division 5 new pharmacies from the previously acquired licenses
1 specialised store within the scope of strategic cooperation with Agrokor
Sports and Functional Food division
Redesign of Multipower
Regulatory approvals for the Multipower product line in Russia
Launching new ENDURANCE product line for cycling and jogging
Taking Multipower outside of gyms and fitness centres
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No refinancing requirements, with only minor portion maturing in 2009
Favourable gearing ratio of 29.1% in FY08
Screening potential acquisition targets that would secure value-creative IRR
Atlantic Grupa has substantial know-how and experience in due diligence and acquisition activities
EUR20m from DEG at disposal
Targeting: (i) Pharmacies in Croatia and the region
(ii) Companies, brands and market shares in the food supplements segment in the EU market (CEE, Germany, Scandinavia)
(iii) Companies, brands and market shares in the sports nutrition in the EU market
FY09 GUIDANCE
23: Source Canadean 2007 industry report; Centum istrazivanja: Croatia AFB Study Ferbuary 2009 , * , Total sample Open end question
289
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33JamnicaCoca-ColaTM
JanaCedevita
8 17820 92
3 6113 55
Favourite* Volume in 2007 brand (%) (In MM liters)
Cedevita has the strongest household presence and is the second favourite Soft drink brand . in Croatia
Have in*
household
(%)
Cedevita BRAND
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New distribution channel for Cedevita – consumption on the go Cedevita covers all consumption channels
Exploring synergies potential among divisions:
R&D, production and packaging integrated in the Consumer Healthcare division
Own distribution infrastructure
Synergies opportunities in the Sports and Functional Food division’s portfolio
Development project worth of HRK75m
Payback period of 5-6 years
The value-creating IRR
Region-wise distribution (Croatia, Serbia, Slovenia, Macedonia, BiH)
Favourable impact on the Group’s profit margins
Cedevita GO!
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Contacts
Lada Tedeschi Fiorio, Vice President for the Business Development
Zoran Stankovic, CFO
Maja Barac, Head of Investor Relations
+385 1 24 13 908
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Q & A
Thank you for your attention!
