ATLANTIC GRUPA
FY11 Financial results (audited)
Performance in line with guidance alongside successful
execution of integration processes
February 23th, 2012
1
CONTENT
KEY BUSINESS DEVELOPMENTS in 2011 and ANNOUNCEMENT of EVENTS in FY12
FINANCIAL RESULTS in 2011
FY12 GUIDANCE
2
KEY BUSINESS DEVELOPMENTS in 2011
 Guidance delivered despite challenging macroeconomic environment
 Successful execution of integration of Droga Kolinska and Atlantic Grupa
 Divestment of non-core assets: 13% share in RTL Hrvatska television channel
 Bond refinancing: new corporate bond ATGR-O-169A
 Regular fulfilment of all financial obligations
 Surging prices of all key raw and packaging materials
 PPA – Purchase Price Allocation for Droga Kolinska
 Achievement of synergy effects
3
KEY INTEGRATION ACTIVITIES: Phase I
Sales and distribution
• Setting up joined
distribution on all
regional markets:
establishing independent
distribution companies
on each regional market
that are consolidated in
the Distribution division
• Implemented new
commercial terms on all
regional markets
Logistics and
investment
Procurement and
marketing
• Setting up joined logistics
operations and processes
(the most complex one in
Serbia with initial 11
distribution centres,
reallocated to 4 new
locations)
• Implemented centralised
procurement system
• Developed purchasing
category management
concept with lead buyers
for key raw materials
• Logistics reorganisation
in Croatia (in-house
logistics as opposed to
formerly outsourced
logistics)
• Sales force optimized
• Implemented centralised
marketing
HR challenges
• Creating new and
efficient business
organisation
• Retaining and motivating
the most qualitative
workforce
• Co-life of different
corporate cultures
• Developing fair rewarding
schemes
• Consolidation of office
space on all regional
markets
 First phase of integration activities carried out in the 1H11
4
KEY INTEGRATION ACTIVITIES: Phase II
Consolidation of production
facilities
Consolidation of
information technology
• Previously outsourced bottling of
Cockta for Croatian and B&H
market has been replaced with inhouse bottling in Apatovec,
Croatia
• Consolidation of business IT
solutions on several regional
markets based on the assessment
of business systems for
operational support within Droga
Kolinska and Atlantic Grupa and
selection of best practice
• Transfer of coffee roasting for
Croatian market from previously
outsourced producer to own
production plant in Izola, Slovenia
• Currently, feasibility studies are
being prepared for transfer of
other production from
outsourced producers to own
production plants
• Redefining current IT contracts
related to telecom services,
licences and outsourced IT
support
Real estate management
• Real estate and financial assets
portfolio management with the
goal to sell all assets that are not
in accordance with the company’s
core business operations – e.g.
sale of 13% ownership in Croatian
broadcasting channel – RTL
Hrvatska
• Currently the company assesses
sale of several real estate that are
not in accordance with the
company’s core business
operations
 Second phase of integration activities started in the 2H11
5
SUMMARY OF INTEGRATION ACTIVITIES and OTHER
Distribution
Logistics
Investment
management
46% of total synergy savings
EUR 5.9m net synergy savings
CORE program
 In November 2011, Atlantic Grupa launched cost reduction program – CORE program
 The key goal is to optimize the company’s primarily external expenses in the period from 2011 to 2013
 Emphasis is on the group of expenses that are encountered as result of purchase of goods and services from suppliers
6
NEW BUSINESS MODEL OF ATLANTIC GRUPA from 2012
SBU
COFFEE
Turkish,
Espresso,
Instant
SMU
Croatia
SBU
BEVERAGES
Vitamin instant
drinks and teas
Carbonated soft
drinks
Functional water
and Water
SBU SPORTS
AND
FUNCTIONAL
FOOD
SBU PHARMA
AND
PERSONAL
CARE
Sports and
functional food
VMS and OTC
Pharmacy chain
Cosmetics and
personal care
SMU
Slovenia,
Serbia and
Macedonia
SBU
SAVOURY
SPREADS
SBU
SNACKS
Savoury spreads
Sandwiches of
extended
freshness
Sweet and
salted snacks
SMU
HoReCa
SMU
International
markets
MU
Russia
Hotels, restaurants
and cafes
All markets outside
ex.-YU region and
Russia
Baby food
All products sold in
CIS region
 Reorganization in 2012 with an aim to manage business segments and distribution markets more efficiently
 Operational business also includes Central procurement, Central marketing and Corporative quality management functions
7
ATLANTIC GRUPA ON CROATIAN CAPITAL MARKET in 2011
Performance on capital market
Ownership structure on 30/12/2011
ATGR-R-A
47.7%
Crobex
Crobex10
18.2%
16.4%
5.3%
L. Tedeschi East Capital
Management
Fiorio
0.36%
1.25%
5.79%
EBRD
8.53%
DEG
8.49%
-15.4%
-17.6%
-37.9%
-46.5%
19/11/0730/12/11
-67.2%
2011
2010
2009
2011
2010*
Last price in reporting period
500.0
805.0
1,667,150
2,684,112
551,157
554,827
EV (HRK 000)
4,229,100
5,243,503
EV/EBITDA*
8.18
9.96
EV/EBIT*
13.68
19.01
EV/sales*
0.89
1.16
EPS (HRK)
5.90
26.43
P/E
84.71
30.46
Average daily turnover (HRK)
Raiffeisen VPF
8.08%
Raiffeisen OPF
54.32%
Erste Plavi OPF
6.65%
2008
Valuation
Market capitalization (HRK 000)
TEDESCHI EMIL
50.20%
PBZ CO OPF
7.88%
AZ OPF
23.07%
Pension
funds
17.29%
-47.6%
-62.0%
Others
8.09%
 From the end of March, ATGR-R-A has been included
in domestic blue-chip index Crobex10
 On 20 September 2011, Atlantic Grupa issued Notes
amidst restructuring of its maturity debt structure
 Atlantic Grupa’s average market capitalization in 2011:
HRK 2.2m – second place based on average Mcap
among components of local blue-chip index Crobex10
 Atlantic Grupa’s share retained total turnover and
average daily turnover on the 2010 levels
Normalized P&L figures *Pro-forma consolidated figures in 2010
8
CONTENT
KEY BUSINESS DEVELOPMENTS in 2011 and ANNOUNCEMENT of EVENTS in FY12
FINANCIAL RESULTS in 2011
FY12 GUIDANCE
9
OWERVIEW of FY11 RESULTS
 Sales at 4,727.8 million kuna
+ 108.4% yoy based on reported figures
+ 1.2% yoy organic growth
+ 4.8% yoy growth compared to pro-forma consolidated level in the same period last year
 Normalized earnings before interests, taxes and depreciation (EBITDA) at 517.3 million kuna
+ 156.5% yoy based on reported figures
- 1.7 yoy growth compared to pro-forma consolidated level in the same period last year
 Normalized earnings before interests and taxes (EBIT) at 309.2 million kuna
+ 110.9% yoy based on reported figures
+ 12.1% yoy growth compared to pro-forma consolidated level in the same period last year
 Net profit after minorities at 46.6 million kuna
* Normalised net profit after minorities at 19.7 million kuna
10
RESULTS IN LINE WITH GUIDANCE
HRKm
101.7%
98.2%
2011A
4,728
2011E
600
517
96.9%
2011A
527
2011E
4,750
4,650
309
400
4,650
200
0
4,550
Sales
EBITDA
EBIT
 2011 result normalized
11
319
OVERVIEW OF ONE-OFF ITEMS in 2010/2011
 Sale of Neva’s former location in Tuškanova
* One of gain in the amount of 48.6 million kuna
 Acquisition of Droga Kolinska
2010
* Transaction costs in the amount of 52.2 million kuna
* Positive financial impact of 16.9 million kuna (income on deposits from capital increase
funds and positive exchange rate differences)
 Acquisition of the company Kalničke vode Bio Natura
* Badwill in the amount of 5.1 million kuna
 Sale of non-core assets – 13% stake in the company RTL Hrvatska
* One-off gain in the amount of 12.0 million kuna
 Acquisition of Droga Kolinska
Transaction costs in the amount of 5.8 million kuna
2011
 Purchase price allocation
* One-off impact on increase in inventories in the amount of 22.8 million kuna
* One-off impact on depreciation of tangible assets and amortization of intangible assets in
the amount of 42.3 million kuna. Depreciation and amortization effect is one-off compared
to 2010, but, lower depreciation and amortization will remain in 2012 and onwards
* One-off impact on increase in financial borrowings in the amount of 1.2 million kuna
12
SALES in 2011
HRKm
FY11 vs. FY10
FY11
FY10
FY11 vs. FY10 Pro-forma
4,728
5,000
4,728
+108.4%
4,000
2,269
4,800
FY11
FY10
FY11 vs. FY10 organic
FY11
FY10
+1.2%
2,296
+4.8%
4,513
4,600
2,269
2,300
2,250
3,000
4,400
2,000
4,200
1,000
4,000
* Sales growth: +108.4%
* Sales growth: + 4.8% comparing to
pro-forma consolidated sales in 2010
* Sales growth : +1.2% without Droga
Kolinska effect
 Growth generators:
 Growth generators:
 Growth generators:
(i) Acquisition of Droga Kolinska
(ii) Organic growth of Atlantic Grupa
(i) Growth on regional markets after
acquisition of Droga Kolinska
(ii) Growth in coffee, sweet and salted
snacks and baby food segments
(iii) Growth in Sports and Functional
Food and Pharma divisions
2,200
2,150
2,100
(i) Growth of own brands within Sports
and Functional Food division
(ii) Sales growth of private label
(iii) Newly opened pharmacies and
specialized stores
(iv) Final consolidation of acquired
pharmacy chain Dvoržak
13
GEOGRAPHIC SALES PROFILE
2011
9%
3%
Croatia
28%
8%
Serbia
Slovenia
B&H
6%
Other ex. Yu*
8%
Key WEU**
Russia and EE
13%
25%
Other
Pro-forma consolidated 2010
 Croatian market remained the largest selling market after
acquisition of Droga Kolinska with 28.2% share of total sales,
however the acquisition itself significantly reduced exposure to
domestic market from 55.1% in 2010
 Regional markets (without Croatia) have 52.0% share of total
sales compared to 18.9% in 2010
 Share of West European markets fell to 7.5% from 14.9% in
2010, as sales of acquired Droga Kolinska are mostly focused on
regional markets and to smaller extent on Russian market
 East European markets have 3.0% share of sales compared to
1.8% in 2010, due to Droga Kolinska’s presences on those markets
Stand-alone 2010
Croatia
4% 6%
Serbia
8%
30%
6%
Slovenia
B&H
Other ex. Yu*
9%
Key WEU**
Russia and EE
13%
2%
24%
*Other ex. YU: Macedonia, Monte Negro, Kosovo
Other
**Key WEU: Germany, Italy, UK
Croatia
9%
Serbia
Slovenia
15%
B&H
Other ex. Yu*
2%
3%
8%
55%
Key WEU**
Russia and EE
6%
Other
14
SALES on KEY MARKETS – CROATIA
1,332.2
1,377.9
1,250.6
(in HRKm)
1,500
1,250
1,000
750
500
FY11
FY10 Pro-forma cons.
FY10 Stand-alone
-3,3% compared to 2010 pro-forma consolidated results
-3,9% on organic level (without Droga Kolinska)
 Two key factors affected sales on Croatian market:
i. Renewal of contracts with key customers due to integration of Droga Kolinska’s product portfolio during 2011
ii. Continuation of negative trends in Croatian economy
 Sales decline on the pro-forma consolidated level was partially cushioned by following:
i. Increase in coffee and salted snacks category as well as mild increase in savoury spreads and beverages categories of Droga
Kolinska
ii. Growth of some principal brands
iii. Growth in Pharma division
15
SALES on KEY MARKETS – SERBIA, SLOVENIA AND BOSNIA AND HERZEGOVINA
FY11
1,204.2
1,400
FY10 Pro-forma cons.
1,068.6
FY10 Stand-alone
1,200
(in HRKm)
1,000
598.1
800
577.7
395.9
359.2
600
172.5
130.1
400
79.0
200
0
Serbia
Serbian Market
+ 12.7% growth compared to pro-forma
consolidated sales in 2010
-10.7% on organic level (without Droga
Kolinska)
 The second largest market in Atlantic
Grupa with 25.5% share of total sales
Slovenia
Slovenian market
+3.5% growth compared to pro-forma
consolidated sales in 2010
+2.5% on organic level (without Droga
Kolinska)
 The third largest market in Atlantic
Grupa with 12.7% share of total sales
Growth: coffee, salted snacks,
Cedevita and some principal brands
B&H
B&H market
-9.3% drop compared to pro-forma
consolidated sales in 2010
-2.5% on organic level (without Droga
Kolinska)
 The third largest market in Atlantic
Grupa with 7.6% share of total sales
16
SALES on KEY MARKETS – WEST EUROPEAN MARKETS AND RUSSIA
FY11
300
264.1
FY10 Pro-forma cons.
246.3 244.3
FY10 Stand-alone
(in HRKm)
250
180.0
200
144.0
150
41.5
100
57.3
49.3
50.3
48.3
44.5
41.4
50
0
Germany
Italy
UK
Russia & EE
West European markets
+1.1% growth compared to pro-forma consolidated sales in 2010
+5.2% on organic level (without Droga Kolinska)
Russian and East European markets
-20.0% compared to pro-forma
consolidated sales in 2010
Three key factors buoyed sales growth in this geographic region
i. Double-digit growth in the sports food brand Champ and the functional food
brand Multaben
ii. Double-digit growth in private label sales
iii. Further expansion of mass market outside the specialized sports channel.
Decline mainly reflected lower sales of
Multivita assortment, whereby growth in
baby food assortment with brand Bebi was
insufficient to annul decline in the former
17
SALES by PRODUCT TYPE
2011
5%
6%
Own brands
Principal brands
17%
Private label
72%
Farmacia
Pro-forma consolidated 2010
5%
Own brands
+6.4% compared to pro-forma consolidated sales in 2010
+1.8% on organic level (without Droga Kolinska)
Principal brands
-9.7% yoy
 Share decrease due to conolidation of Droga Kolinske
Private label
+31.8% yoy
Farmacia
+15.6% yoy
+9.8% on organic level (excluding acquired chain Dvoržak)
Stand-alone 2010
11%
Own brands
4%
Principal brands
20%
8%
Private label
71%
Farmacia
Own brands
41%
Principal brands
Private label
40%
Farmacia
18
KEY BRANDS in 2011
597
HRK m
Sales Net I
441
333
304
235
172
Grand Kafa
Argeta
Cedevita
Barcaffe
Multipower
Smoki
The following brands achieved growth:
i. Coffee – Grand Kafa 12.3% i Barcaffe 9.7%
ii. Sweet and salted snack – Najlepše želje 11.6% andSmoki 5.5%
iii. Baby food – Bebi 11.7%
iv. Sports and functional food – Champ and Multaben
171
Cockta
144
141
Najlepše želje
Bebi
126
125
Champ
Donat Mg
Following brands posted yoy lower sales:
i. Beverages – Cedevita and Cockta
ii. Savoury spreads - Argeta
19
GROSS SALES by DIVISION
HRKm
2,763
2011
2010
2,249 2,244
Distribution : +114.3% , -6.4% organic
 Consolidated distribution of Atlantic Grupa and Droga
Kolinska, renewed contracts with key customers
 Unfavourable macroeconomic environment decreased
consumption
 Portfolio rationalization
1,289
448 478
Distribution
1,207
Consumer
Health Care
647 556
367 326
Sports and
Functional Food
1,289
Droga Kolinska
2011 ex. Droga Kolinska
647
448
Distribution
Pharma
478
Consumer Health
Care
2010
556
367
Sports and
Functional Food
+ 1.2% yoy organic growth
+ 4.8% compared to pro-forma consolidated sales in 2010
326
Pharma
Consumer HealthCare: -6.4%
 Unfavourable macroeconomic situation
 Consolidation of distribution activities of Atlantic
Grupa and Droga Kolinska affected this division’s sales
Sports and Functional Food: +16.3%
 Growth of brands Champ and Multaben as well as
private label
 Upward trend in mass market and online sales
Pharma: +12.5%
 Pharmacy chain sales growth, opening of 4 new sales
locations, consolidation of Dvoržak pharmacy chain
 Fidifarm sales growth
Droga Kolinska: +0.2%
 Growth of product categories: coffee, sweet and salted
snacks and baby food
20
SALES by CATEGORIES
Distribution (Principal brands)
3%
Sports and Functional Food
17%
14%
Pharma &Personal care (Farmacia, Fidifarm, Multivita, Neva)
9%
Coffee
14%
Sweet and salted snack
12%
Savoury spreads
10%
Beverages
21%
Baby food
Indicative overview of sales by categories (according to the new business model) in 2011 reflect the following:
 Product category – coffee – with brands Grand Kafa i Barcaffe is the largest individual product category with 21% share in total
sales
 Product category – beverages – with key brands Cedevita, Cockta, Donat Mg is the second largest product category with 14%
share in total sales
 Product category – sports and functional foods – with key brands Multipower and Champ is the third largest product category
with 14% share in total sales
 Distribution which includes principal brands has 17% share in total sales
21
PROFITABILITY DYNAMICS
HRKm
EBITDA
600
EBITDA
501
517
545
Normalized EBITDA
526
500
400
220
300
202
200
100
FY11
FY10 Pro-forma
FY10 Stand-alone
EBIT
400
EBIT
Normalized EBIT
335
309
294
 Two-fold higher profitability on EBITDA and EBIT levels compared
to 2010 primarily reflected consolidation of Droga Kolinska
 Decline in EBITDA compared to pro-forma consolidated 2010
largely reflected 20.7% yoy higher production materials costs
 Normalised EBIT reflected the impact of finalised PPA process for
Droga Kolinska on tangible assets depreciation and intangible assets
amortization
Normalised EBITDA
Normalised EBIT
Normalised Net profit
Net profit
2011 vs. 2010 pro-forma
-1.7%
+12.1%
-77.7%
Net income
Normalized net income
200
276
146
300
126
150
165
200
2011 vs. 2010
+156.5%
+110.9%
-67.5%
147
100
107
86
100
55
28
50
0
0
FY11
FY10 Pro-forma FY10 Stand-alone
FY11
FY10 Pro-forma FY10 Stand-alone
22
PROFITABILITY DYNAMICS – Impact of surging prices on global commodity markets
 On the pro-forma consolidated level, production materials costs
surged 21% yoy
 Soaring production materials costs came on the back of:
* Growth in coffee, sugar, milk powder and others largely on the
back of surging prices on the global commodity markets as well as
packaging materials costs
* Coffee rocketed 55% on average on global commodity markets
(expressed through coffee “C” futures contract as the world
benchmark for Arabica coffee) compared to 2010
 Left graph - coffee price movements during 2010 and 2011–
maximum at the beginning of May 2011
 Right graph: beginning of May 2011 the highest coffee price
since the end of 1997
 In the following period:
*The fundamentals indicate upward pressure on global coffee
prices largely amidst historically low global coffee inventories and
downtrend in inventories in weeks of consumption
* But, excess of global supply should cushion uptrend in 2012
23
PURCHASE PRICE ALLOCATION for DROGA KOLINSKA
Summary
• Pursuant to the International Financial Reporting Standards (IFRS 3), Atlantic Grupa was obliged to
allocate the purchase price of EUR 243,109 ths paid for Droga Kolinska’s assets acquired, within a year
from the transaction. For that purpose, Atlantic Grupa engaged the independent appraiser.
Intangible assets
• Fair value of trademarks on 31 December 2010 is HRK 764.8m and has been increased by HRK 206.3m
from their book value
• Valuation based on income approach, i.e. Relief-from-Royalty method
• Indefinite useful life: brands will not be amortised but tested annually for impairment
Tangible assets
• On 31 December 2010, fair value of tangible assets has been estimated at HRK 73.6m above its book
value
• Applied market-based approach and cost-based approach to value tangible assets
Other assets and
liabilities
• On 31 December 2010, fair value of inventories has been estimated at HRK 22.6m above its book
value
• On 31 December 2010, fair value of financial borrowings has been estimated at HRK 1.2m above its
book value
Residual
goodwill
• Goodwill of HRK 571.5m has been calculated
• Allocated to the following operating segments (CGUs): coffee, savoury spreads, snacks and
confectionary, beverages, baby food and distribution
24
DIVISIONAL OPERATING PROFITABILITY
2011
HRKm
169.8
2010
Distribution
160
24%
120
80.3
83.2
80
56.6
Sports and
Functional
Food
50%
37.4
40
14.4
30.1
17%
16.0
16.9
5%
CHC
SFF
Pharma
Distribution
+114.3% amidst
 Integration of Droga Kolinska and Atlantic Grupa’s portfolio
Consumer HealthCare
-32.0% amidst:
 Lower sales
 Higher production materials costs
Pharma
4%
Droga
Kolinska
0
Distribution
Consumer
HealthCare
Droga Kolinska
Sports and Functional Food
-52.3% amidst
 Front-loaded investments in new company in Spain
 Higher production materials and marketing and selling costs
 Higher service costs
Pharma
-5.2% amidst:
 Stronger growth in operating costs base, primarily service
costs, staff costs and costs of goods sold
25
FINANCIAL INDICATORS
in HRKm
FY11
YE10*
Net debt
2,494.0
2,495.8
Total assets
5,355.2
5,259.3
Equity
1,512.3
1,456.3
Current ratio
1.84
1.34
Gearing ratio
62.3%
63.2%
Net debt/EBITDA**
4.8
4.7
Interest coverage ratio**
2.3
5.3
Capex
96.5
34.8
Cash flow from operating activities***
165.1
101.5
* P&L items on pro-forma consolidated basis **Normalized *** Excluding impact of transaction costs
Leverage indicators:
 Net debt-to-normalized EBITDA at 4.8 times
 Interest covered with normalized EBITDA at 2.3 times
 Gearing ratio (net debt-to-net debt and total equity) at 62.3%
Require: prudent debt
management and delivery of
synergies
 In accordance with the Policy of active financial debt management, Atlantic Grupa fixed substantial portion of its longterm financial liabilities with interest rate swaps in the 1Q11
 In 2011, Atlantic Grupa refinanced corporate bond in the nominal amount of HRK 115m maturing in 2016
26
CONTENT
KEY BUSINESS DEVELOPMENTS in 2011 and ANNOUNCEMENT of EVENTS in FY12
FINANCIAL RESULTS in 2011
FY12 GUIDANCE
27
FY12 GUIDANCE (I)
 Further delivery of planned synergy potentials both on sales and costs side following finalisation
of the first integration phase of Atlantic Grupa and Droga Kolinska;
 Focus on execution of the second integration phase (consolidation of production facilities,
information technology consolidation, real estate portfolio management) as the basis for further
improvement of operating efficiency;
Strategic
management
guidance
 Further focus on organic growth through innovations in product categories and active brand
management (new flavours, modernized packaging, product line extensions), strengthening the
regional character of distribution business and further development of certain distribution
channels as HoReCa segment;
 Meeting financial commitments on regularly basis coupled with active debt and financial cost
management;
 Cost management through the CORE program and optimisation of operating processes on both
centralised and lower levels, aiming to improve operating efficiency;
 Prudent liquidity management;
 Continuous analysis of global commodity markets with particular focus on coffee, sugar, cocoa
and milk powder as well as more active application of hedging instruments;
 More focused development of risk management on all levels in the company.
28
FY12 GUIDANCE (II)
2012 Guidance (excluding
one-offs)
2011 Normalized
2012/2011
4,964
4,728
5.0%
EBITDA
550
517
6.3%
EBIT*
385
351
9.5%
Interest expense
223
222
In HRKm
Sales
* In 2011, EBIT was calculated on normalised EBITDA level, however depreciation and amortization expenses
have not been normalized for the PPA impact in order to make it more comparable to 2012 guidance.
29
Appendix
30
FY11 CONSOLIDATED INCOME STATEMENT (AUDITED)
In HRK000
Turnover
Sales
Other income
Operating costs
Cost of merchandise sold
Change in inventories
Production materials
Energy
Services
Personnel costs
Marketing expenses
Other expenses
Other (gains)/losses, net
EBITDA
EBIT
EBT
Taxes
Net income
Minority interest
Net income II
FY11
% of
sales
FY10
% of
Pro-forma
sales
consolidated
4,575,540
101.4%
4,512,983
100.0%
62,557
1.4%
4,030,856
89.3%
1,201,640
26.6%
5,665
0.1%
1,309,183
29.0%
53,324
1.2%
327,564
7.3%
658,002
14.6%
314,792
7.0%
231,399
5.1%
-70,713
-1.6%
544,684
12.1%
4,774,385
4,727,766
46,619
4,273,714
1,187,673
-5,772
1,579,935
61,238
308,439
635,047
313,218
212,994
-19,058
500,670
101.0%
100.0%
1.0%
90.4%
25.1%
-0.1%
33.4%
1.3%
6.5%
13.4%
6.6%
4.5%
-0.4%
10.6%
334,843
7.1%
294,252
78,837
23,945
54,892
8,291
46,601
1.7%
0.5%
1.2%
0.2%
1.0%
168,270
21,844
146,426
13,088
133,338
FY10 Standalone
% of
sales
FY11/FY10
Pro-forma
cons.
4.3%
4.8%
-25.5%
6.0%
-1.2%
n/a
20.7%
14.8%
-5.8%
-3.5%
-0.5%
-8.0%
-73.0%
-8.1%
FY11/FY10
Stand-alone
2,301,945
2,268,641
33,304
2,081,899
1,085,720
-9,405
291,074
12,141
163,340
325,942
148,692
128,510
-64,115
220,046
101.5%
100.0%
1.5%
91.8%
47.9%
-0.4%
12.8%
0.5%
7.2%
14.4%
6.6%
5.7%
-2.8%
9.7%
6.5%
164,985
7.3%
13.8%
103.0%
3.7%
0.5%
3.2%
0.3%
3.0%
123,122
16,325
106,797
11,804
94,993
5.4%
0.7%
4.7%
0.5%
4.2%
-53.1%
9.6%
-62.5%
-36.7%
-65.1%
-36.0%
46.7%
-48.6%
-29.8%
-50.9%
31
107.4%
108.4%
40.0%
105.3%
9.4%
n/a
442.8%
404.4%
88.8%
94.8%
110.6%
65.7%
-70.3%
127.5%
FY11 NORMALIZED CONSOLIDATED INCOME STATEMENT (AUDITED)
In HRK000
Turnover
Sales
Other income
Operating costs
Cost of merchandise sold
Change in inventories
Production materials
Energy
Services
Personnel costs
Marketing expenses
Other expenses
Other (gains)/losses, net
EBITDA
EBIT
EBT
Taxes
Net income
Minority interest
Net income II
FY11
% of
sales
FY10
% of
Pro-forma
sales
consolidated
4,569,421
101.3%
4,512,983
100.0%
56,438
1.3%
4,043,127
89.6%
1,201,640
26.6%
5,665
0.1%
1,309,183
29.0%
53,324
1.2%
308,166
6.8%
658,002
14.6%
314,792
7.0%
198,017
4.4%
-5,663
-0.1%
526,294
11.7%
4,774,385
4,727,766
46,619
4,257,105
1,164,918
-5,772
1,579,935
61,238
304,053
635,047
313,218
211,564
-7,096
517,280
101.0%
100.0%
1.0%
90.0%
24.6%
-0.1%
33.4%
1.3%
6.4%
13.4%
6.6%
4.5%
-0.2%
10.9%
309,169
6.5%
275,862
51,914
23,945
27,969
8,291
19,677
1.1%
0.5%
0.6%
0.2%
0.4%
149,127
23,496
125,631
13,088
112,543
FY10 Standalone
% of
sales
FY11/FY10
Pro-forma
cons.
4.5%
4.8%
-17.4%
5.3%
-3.1%
n/a
20.7%
14.8%
-1.3%
-3.5%
-0.5%
6.8%
25.3%
-1.7%
FY11/FY10
Stand-alone
2,295,825
2,268,641
27,184
2,094,170
1,085,720
-9,405
291,074
12,141
143,943
325,942
148,692
95,128
935
201,656
101.2%
100.0%
1.2%
92.3%
47.9%
-0.4%
12.8%
0.5%
6.3%
14.4%
6.6%
4.2%
0.0%
8.9%
6.1%
146,595
6.5%
12.1%
110.9%
3.3%
0.5%
2.8%
0.3%
2.5%
103,979
17,978
86,001
11,804
74,197
4.6%
0.8%
3.8%
0.5%
3.3%
-65.2%
1.9%
-77.7%
-36.7%
-82.5%
-50.1%
33.2%
-67.5%
-29.8%
-73.5%
32
108.0%
108.4%
71.5%
103.3%
7.3%
n/a
442.8%
404.4%
111.2%
94.8%
110.6%
122.4%
-858.9%
156.5%
BUSINESS SEGMENTS
For the year ended
31 December 2011
(in thousands of HRK)
Gross revenues
Consumer
Distribution
Health Care
Sports and
Functional
Food
Pharma
Droga
Reconciliation
Kolinska
Group
2.784.594
458.099
654.224
373.558
2.276.696
744
6.547.915
24.532
337.961
4.340
27.015
1.379.682
-
1.773.530
2.760.062
120.138
649.884
346.543
897.014
744
4.774.385
EBITDA
93.993
86.893
20.116
22.986
270.659
6.023
500.670
Depreciation and amortization
13.722
30.333
5.748
6.990
100.893
8.141
165.827
EBIT
80.271
56.560
14.368
15.996
169.766
(2.118)
334.843
Total assets
973.849
566.217
196.322
620.003
3.421.431
(826.130)
4.951.692
Total assets at 31.12.2010
561.173
598.000
164.158
580.608
3.195.021
(208.437)
4.890.523
Consumer
Distribution
Health Care
Sports and
Functional
Food
Pharma
Droga
Reconciliation
Kolinska
Group
Inter-segment revenues
Total revenues
For the year ended
31 December 2010
(in thousands of HRK)
Gross revenues
1.308.296
492.044
558.412
330.832
n/p
9.647
2.699.231
21.397
352.128
4.024
19.737
n/p
-
397.286
1.286.899
139.916
554.388
311.095
n/p
9.647
2.301.945
EBITDA
48.778
108.695
36.832
23.287
n/p
2.454
220.046
Depreciation and amortization
11.329
25.519
6.703
6.410
n/p
5.100
55.061
EBIT
37.449
83.176
30.129
16.877
n/p
(2.646)
164.985
Inter-segment revenues
Total revenues
33
BALANCE SHEET as of 31 December 2011 (AUDITED)
in thousands of HRK, audited
Property, plant and equipment
Investment propery
Intangible assets
Available-for-sale financial assets
Derivative financial instrument
Trade and other receivables
Deferred tax assets
Non-current assets
Inventories
Trade and other receivables
Non-current assets held for sale
Prepaid income tax
Deposits given
Derivative financial instrument
Cash and cash equivalents
Current assets
Total assets
31 December 2011
1,189,502
1,934
1,956,194
1,358
8,617
21,514
56,412
3,235,531
533,680
1,119,851
139,127
24,877
36,334
18,249
247,596
2,119,714
5,355,245
% of total assets
22.21%
0.04%
36.53%
0.03%
0.16%
0.40%
1.05%
60.42%
9.97%
20.91%
2.60%
0.46%
0.68%
0.34%
4.62%
39.58%
100.00%
31 December 2010
1,235,866
2,481
1,929,631
36,379
0
23,736
53,714
3,281,807
503,013
1,100,134
111,310
17,951
5,192
7,939
231,978
1,977,517
5,259,324
% of total assets
23.50%
0.05%
36.69%
0.69%
0.00%
0.45%
1.02%
62.40%
9.56%
20.92%
2.12%
0.34%
0.10%
0.15%
4.41%
37.60%
100.00%
Capital and reserves attributable to equity holders of the Company
1,444,404
26.97%
1,392,624
26.48%
Minority interest
Borrowings
Deferred tax liabilities
Derivative financial instrument
Other non-current liabilities
Provisions
Non-current liabilities
Trade and other payables
Borrowings
Current income tax liabilities
Derivative financial instrument
Provisions
Current liabilities
Total liabilities
Total equity and liabilities
67,920
2,346,725
193,064
62,393
36,357
54,540
2,693,079
719,606
375,035
12,553
20,673
21,975
1,149,842
3,842,921
5,355,245
1.27%
43.82%
3.61%
1.17%
0.68%
1.02%
50.29%
13.44%
7.00%
0.23%
0.39%
0.41%
21.47%
71.76%
100.00%
63,632
2,007,781
189,872
26,446
38,421
60,138
2,322,658
731,668
697,744
16,594
8,898
25,506
1,480,410
3,803,068
5,259,324
1.21%
38.18%
3.61%
0.50%
0.73%
1.14%
44.16%
13.91%
13.27%
0.32%
0.17%
0.48%
28.15%
72.31%
100.00%
34
FY11 CONSOLIDATED CASH FLOW STATEMENT (AUDITED)
HRK 000
Jan - Dec 2011
Jan - Dec 2010
Net cash flow from operating activities
Net CFO before interest and income tax paid
159.266
382.167
49.249
102.497
Cash flow from investing activities
O/w Capex
(55.924)
(96.525)
(1.568.133)
(34.830)
Net cash flow from / (used in) financing activities
(90.925)
1.677.640
Net increase / (decrease) in cash and cash equivalents
12.417
158.756
Exchange gains / (losses) on cash and cash equivalents
3.201
(1.358)
231.978
247.596
74.580
231.978
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
 Net cash from operating activities amounted to HRK 165.1m in FY11 and HRK 101.5m in FY10, once transaction costs
excluded
35
Q&A
Thank you for your attention!
36