1 / 28

Atlantic Grupa Company of Added Value

Atlantic Grupa Company of Added Value. Belgrade, May 2009. CONTENT. General overview of Atlantic Grupa Overview of the FY08 financial figures Overview of 1Q09 financial figures Divisional overview FY09 Guidance Cedevita GO!.

hiroko
Download Presentation

Atlantic Grupa Company of Added Value

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Atlantic GrupaCompany of Added Value Belgrade, May 2009

  2. CONTENT • General overview of Atlantic Grupa • Overview of the FY08 financial figures • Overview of 1Q09 financial figures • Divisional overview • FY09 Guidance • Cedevita GO!

  3. VERTICALLY INTEGRATED COMPANY IN CONSUMER HEALTHCARE BUSINESS 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, Wrigley, Duracell, Johnson & Johnson)

  4. VERTICALLY INTEGRATED COMPANY IN THE CONSUMER HEALTHCARE BUSINESS FMCG DISTRIBUTION CONSUMER HEALTHCARE Distribution Division Sports and Functional Food Division Consumer Health Care Division Pharma Division VMS OTC Pharmacy chain 14% of sales 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 SYNERGIES

  5. DEVELOPMENT CYCLE

  6. GEOGRAPHICAL PRESENCES • Companies and representative offices across Europe • Presence on 30 markets

  7. SALES GROWTH 1993-2008

  8. SHAREHOLDER STRUCTURE • Stable ownership structure • All domestic pension funds among top 10 shareholders • East Capital - the leading asset manager specialising in Eastern Europe

  9. ATLANTIC GRUPA AND THE CAPITAL MARKETS • Stable ownership structure • + Strong business fundamentals • + Defensive nature of the company (lower-beta company) • = Pace of the ATGR-R-A share decline slower than the drop pace in the local benchmark Crobex in 2008 • Road show in 2008 in the US • East Capital award for the Discovery of the Year in 2008 • Improved profile – arising from increased transparency of the company’s business model

  10. OVERVIEW OF THE FY08 FINANCIAL FIGURES • 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 • Pharmacy business – margin accretive for the company • Strong organic growth: • Sales +6% • EBIT +19%

  11. SALES PROFILE • The dominant market – Croatia • * Reported growth + 28.1% yoy • * Organic growth +5.7% yoy • Serbia – the largest organic growth driver • * Reported growth +21.7% yoy • The key West European markets • *Growth in CER terms

  12. PROFITABILITY DYNAMICS EBITDA Organic 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 NET PROFIT EBIT

  13. PERFORMANCE INDICATORS in FY08 • Key highlights: • Very stable balance sheet • Liquidity maintenance • Strong current ratio • Strong operating cash flow • Strong interest coverage • Favourable gearing ratio • Management pays special focus on these given arguably unfavourable financing environment

  14. OVERVIEW OF THE 1Q09 FINANCIAL FIGURES • Top-line growth in all divisions • Distribution +15.6% • CHC +8.4% • SFF +8.6% • Pharma +11.2% • Geographical profile: • Croatia +13.1% to HRK302.5m • Serbia +24.4% to HRK25.2m • Germany +13.1% to HRK63.9m • EBIT up 51.1% yoyon: • Non-recurring gain • Business process improvements

  15. PROFITABILITY DYNAMICS in 1Q09 EBITDA ex. one-off • Key highlights: • One-off: the non-recurring gain on acquisition of minority interest in Cedevita from DEG following the exercise of the call option • Business process improvements: • Entering the drug wholesale business aiming for distribution synergies and cost savings • Construction of new Neva facility – spurring more efficient production • Bearing fruit of last year’s improvements: • Establishing central supply department • Improving distribution-logistics activities • Optimised investments in marketing EBIT ex. one-off

  16. PERFORMANCE INDICATORS in 1Q09 • Key highlights: • Very stable balance sheet • Liquidity maintenance • Strong current ratio • Strong operating cash flow • Strong interest coverage • Favourable gearing ratio • Using IR hedging instruments • Management pays special focus on these given generally arguably unfavourable financing environment

  17. DISTRIBUTION DIVISION • The leading regional distributer of FMCGs with top global and regional brands in their categories 38% of sales Sales growth drivers • New distribution deals • focus on diversification of distribution portfolio • Growth across all distribution channels • retail • HoReCa • Extensive know-how Profitability growth drivers • Economies of scale • lower marginal costs in distribution • Developed network of distribution centres in the SEE • Bargaining power • Exploring brand synergies

  18. CONSUMER HEALTHCARE DIVISION • Integrates R&D, manufacturing, packaging, marketing and sales of: • Cedevita vitamin instant drinks → No1 producer in the SEE region • Personal care products: Plidentatoothpaste, Rosal lip balm 24% of sales Growth drivers • Strength of the Cedevita brand • Atlantic’s best selling brand • New distribution channel – HoReCa • Markets with high consumption potential: Serbia, Slovenia • Cedevita entering new distribution channel • Consumption on the GO → Cedevita GO!

  19. SPORTS AND FUNCTIONAL FOOD DIVISION • Integrates R&D, manufacturing, packaging, marketing • Key brand: Multipower for sports and functional nutrition 24% of sales Growth drivers • Strength of the Multipower brand • Atlantic’s second best selling brand • The leading market position in Germany, Norway, Sweden, • Markets with the highest growth: Russia, Sweden, Spain • Successfully completed restructuring • the highest EBIT growth among divisions in FY08

  20. Dietpharm VMS and OTC 22% 1 Rang in category Market share in Croatia 32 Pharmacies and 6 specialized stores 5.5% PHARMA DIVISION • R&D, manufacturing, packaging, marketing and sales of VMS and OTC • Key brand in the VMS and OTC segment - Dietpharm • The largest private pharmacy chain in Croatia - Atlantic Farmacia 14% of sales 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 non-prescription drugs • New product launches in the VMS and the OTC segment • Pharmacy business – margin-accretive for Atlantic

  21. FY09 GUIDANCE • Guidance ex. one-offs • One-off from non-recurring gain in 1Q09 • Net impact from the sale of Neva production location and transfer to new facility of EUR5m

  22. FY09 GUIDANCE • Even though Atlantic Grupa operates in stable industry, the management is well aware of challenges created by the macroeconomic setup and financing environment • Strict focus on: (i) Liquidity maintenance • (ii) Cost management • (iii) Business processes improvements • (iii) Implementation of new projects • No refinancing requirements, with the major portion maturing in 2011 • Favourable gearing ratio of 30.4% at the end of 1Q09 • Using available hedging instruments – fixing financing cost of LT liabilities with IR swap below 5% • Interest coverage of 5.1x in 1Q09 • Favourable current ratio of 1.7x

  23. 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

  24. 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 (already opened) • 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 – targeting wider scope of sportsmen

  25. FY09 GUIDANCE • Screening potential acquisition targets that would secure value-creative IRR • Atlantic Grupa has substantial know-how and experience in due diligence and acquisition activities • HRK200m available cash for new acquisitions • 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

  26. Cedevita GO! • 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

  27. Contacts • Lada Tedeschi Fiorio, Vice President for the Business Development • lada.tedeschi.fiorio@atlantic.hr • Zoran Stankovic, CFO • zoran.stankovic@atlantic.hr • Maja Barac, Head of Investor Relations • maja.barac@atlantic.hr • +385 1 24 13 908

  28. Q & A Thank you for your attention!

More Related