Atlantic Grupa
The largest private IPO in Croatia
Ohrid, April 2009
1 CONTENT
General overview of Atlantic Grupa Development of the business model Financing on the capital market IPO Post IPO developments
2 VERTICALLY INTEGRATED COMPANY IN CONSUMER HEALTHCARE BUSINESS
KbdKey brands:
¾ The leading European company in the sports nutrition MULTIPOWER
¾ Leader in the vitamin instant drinks in the SEE region CEDEVITA
¾ Producer of the No1 Croatian brands in the VMS and the OTC DIETPHARM
¾ The largest private pharmacy chain in Croatia FARMACIA
¾ The leading FMCG distributer in the SEE region Distinguished International Brands
FY08 sales EUR280m (+ 20% yoy)
Employees 1,670
Markets 30
Expected FY09 sales EUR290m
3 VERTICALLY INTEGRATED COMPANY IN THE CONSUMER HEALTHCARE BUSINESS
FMCG DISTRIBUTION CONSUMER HEALTHCARE
Distribution Division Consumer Health Care Sports and Functional Pharma Division Division Food Division VMS Own brands Vitamin drinks and teas Sports and functional food OTC Principal brands Cosmetics and personal Pharmacy chain care 38% of sales 24% of sales 24% of sales 14% of sales
SYNERGIES
4 DEVELOPMENT CYCLE
5 GEOGRAPHICAL PRESENCES – Companies and Representative Offices
¾ Presence on 30 markets
6 SALES GROWTH 1993-2008
300 278 In EURm 247 250 CAGR 1993- 2008: +35.2% 201 200
150 150
104 100 86 92 64 41 50 29 35 36 13 19 3 6 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
CROATIAN COMPANY REGIONAL COMPANY EUROPEAN COMPANY
7 DISTRIBUTION DIVISION ¾ The leading regional distributer of FMCGs with top global and regional brands in their categories ¾ Developed network of distribution centres in the SEE ¾ Developed know-how: key account management, category management, 38% of sales trade marketing, supply chain management ¾ Growth drivers: economies of scale, negotiation power, new distribution channels, brand synergies
800 S(Sales (HRKm )
752,8 760 +11.9%
720
672,5 680
640
600 FY08 FY07
8 CONSUMER HEALTHCARE DIVISION
¾ Integrates R&D, manufacturing, packaging, marketing and sales 24% of sales ¾ Key brand: Cedevita vitamin instant drinks and teas ¾ The No1 producer of vitamin instant drinks in the SEE region ¾ PdProduc tfts for personal care → bdbrands: Plident a, R osal and M el em
500 Sales (HRKm) Growth drivers
487,5 • Markets with higher consumption potential +4.3% and rising brand recognition: Serbia, Slovenia 480 • New products – Cedevita GO! 467,5 • New distribution channels - HoReCa 460
440 FY08 FY07
¾ Strength of the Cedevita brand
9 Atlantic’s best selling brand
9 SPORTS AND FUNCTIONAL FOOD DIVISION
¾ Integrates R&D, manufacturing, packaging, marketing and sales SFF 24% ¾ Key brand: Multipower for sports and functional nutrition 24% of sales
500 Sales (HRKm)
480,4 +1.8% 480 471,7
460
440
420
400 FY08 FY07
¾ Strength of the Multipower brand 9 Atlantic’s second best selling brand
¾ The leading market position in German y, Norwa y, Sweden , ¾Successfully completed restructuring Croatia and Serbia 9 the highest EBIT growth among divisions +81.0% yoy ¾ The markets with the highest growth: Russia, Sweden, Spain
10 PHARMA DIVISION
¾ R&D,,g,pgg,g manufacturing, packaging, marketing and sales of VMS and OTC
¾ Key brand in the VMS and OTC - Dietpharm 14% of sales ¾ The largest private Pharmacy chain in Croatia - Atlantic Farmacia
Market share Rang in 300 282,2 Sales (HRKm) in Croatia category
250 Dietpharm VMS and OTC 22% 1 +383.6% 200
32 Pharmacies and 5 150 5.5% specialized stores 100 58,4 50 FY08 FY07
¾ Acquisition of pharmacies/launch of specialised stores
¾ Pharmacy business – margin-accretive for Atlantic
11 FINANCING ON THE CAPITAL MARKET
¾ One of the first Croatian companies that used benefits of financing on the capital market to address dynamic business model expansion
Commercial Corporate Capital Corporate IPO papers bond hike bond
Commercial Euro- Capital hike Kuna- The largest papers denominated by German denominated private IPO corporate development corporate on the ZSE bdbond bkbank DEG in bdbond Share price: HRK 100m EUR 15m exchange for HRK 115m 935 HRK Interest rate: 8,24% share Interest rate: 5,75% in the capital 5,75% New shares: Maturity: Maturity: HRK 358m EUR 11m Old shares: 3 years 3 years
HRK 358m
May, 2003 July 2004 October 2006 December 06 October 2007
12 ATLANTIC GRUPA’S INOVATIVE FINANCING OF ACQUISITIONS on the CAPITAL MARKET