Post on 14-Apr-2018
ATLANTIC GRUPACompany of Added Value
11
13th Annual Emerging Europe Investment Conference
New York City, March 15-16, 2012
CONTENT
ATLANTIC GRUPA’S BUSINESS MODEL, DEVELOPMENT and PERFORMANCE
INTEGRATION ACTIVITIES and SYNERGIES
22
2011 FINANCIALS
2012 OUTLOOK
ONE of the LARGEST FOOD and BEVERAGES COMPANIES in the ADRIATIC REGION
Business� Fast Moving Consumer Goods
Headquarters� Zagreb, Croatia (Europe)
Foundation � 1991
No of employees� 4,198
FY11 sales
� EUR 630m
Key Markets
� SEE region, Western Europe, Russia
� 30 markets
Production facilities
� 14 production locations in Slovenia, Croatia, Bosnia and
Herzegovina, Serbia, Macedonia, Germany
33
Key brands:
� The leading European company in the sports nutrition MULTIPOWER
� Among the leading soft drinks producers in ex-YU area CEDEVITA, COCKTA, DONAT Mg
� One of the leading coffee producers in ex-YU region GRAND KAFA, BARCAFFE
� Among the leading savoury spreads producers in ex-YU ARGETA
� Among the leading confectionary & snacks producers in ex-YU SMOKI, NAJLEPŠE ŽELJE
� Producer of the No1 Croatian brand in the VMS and the OTC DIETPHARM
� The largest private pharmacy chain in Croatia FARMACIA
� The leading FMCG distributer in the SEE region International Brands (Ferrero, Wrigley etc.)
* Figure translated at EUR/HRK FX rate of 7.5
DEVELOPMENT CYCLE: Extensive M&A track record
Acquisition of Kalničke vode Bionatura
Acquisition of DROGA KOLINSKA
Acquisition of pharmacies – Farmacia
IPO
Fidifarm (Croatia) & Multivita (Serbia)
Representative office Moscow
Haleko & Power Gym: MULTIPOWER
European company
2010
2010
2008/9
2007
2007
2006
2005
Melem
Atlantic Slovenia
Atlantic Macedonia
Neva
Acquisition of CEDEVITA
Atlantic Serbia
Representative office BiH
Regional company
2004
2004
2003
2003
2001
2001
2001
Cooperation Johnson & Johnson
Cooperation Duracell
Distribution center Rijeka
Distribution center Osijek
Distribution center Split
Cooperation Wrigley
National company
1999
1996
1994
1994
1992
1991
DIS
TRIB
UTI
ON
C
OM
PA
NY
DIS
TRIB
UTI
ON
&
PR
OD
UC
TIO
N C
OM
PA
NY
VER
TIC
ALL
Y I
NTE
GR
ATE
D
CO
MP
AN
Y44
20011991
2010*: Pro-forma consolidated with Droga Kolinska; 2011** Unaudited; Figures translated at EUR/HRK FX rate of 7.5 (to avoid FX impact)
1 6 12 17 27 33 36 4264
85 92 104148
186223
267293 302
602630
0
100
200
300
400
500
600
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011**
Sales in EURm
CAGR1993-2011**:+42.6%
BUSINESS DEVELOPMENT: The acquisition of Droga Kolinska - AG’s largest acquisition ever
� At the end of 2010, Atlantic Grupa successfully acquired regional food & beverages company – Droga Kolinska
INVESTMENT HIGHLIGHTS
Atlantic Grupa becomes one of the leading F&B
companies in the
Costs savings by merging
distribution, logistics,
procurement and
Droga Kolinska
Ownership 100%
Equity value (EURm) 243
Enterprise value (EURm) 382
2010 EV/Sales 1.2
2010 EV/EBITDA 8.7
55
companies in the region
Regional network of production
plants and distribution
infrastructure
Product assortment
expansion with nearly twofold higher share of
own brands
Balanced geographic
profile
Sales synergies (by utilising
existing distribution
infrastructure)
procurement and marketing
Capital44%
Financial debt56%
Financing structure of Equity value of EUR 243,109 ths
Capital increase
78% of total capital
Atlantic Grupa's
own funds
Senior loan
78% of total debt
Junior loan
22% of total
2010 EV/EBITDA 8.7
2010 P/Sales 0.8
2010 P/EBITDA 5.5
ATLANTIC GRUPA’S BUSINESS MODEL in 2011
Division Distribution
Own brands
Division Consumer
HealthCare
Division Sports and
Functional Food
Division Pharma
VMS - DIETPHARM
Division Droga
Kolinska
Coffee – GRAND KAFA,
66
Own brands
External brands –
Ferrero, Wrigley, J&J,
Duracell, One2play,
etc.
Vitamin drinks and
teas - CEDEVITA
Cosmetics and
personal care –
PLIDENTA, MELEM,
ROSAL
Sports and
Functional Food –
MULTIPOWER,
CHAMP, MULTABEN
VMS - DIETPHARM
OTC - FIDIFARM
Pharmacy chain
FARMACIA
Coffee – GRAND KAFA, BARCAFFE
Savoury spreads -
ARGETA
Sweet and salted
snacks – SMOKI, BANANICA
Beverages – COCKTA, DONAT Mg
Baby food - BEBI
� Following Droga Kolinska’s acquisition in 2010 – Atlantic Grupa’s divisional structure has been retained which enabled running
vertically integrated organisation
� Droga Kolinska has been established as the fifth operating division
ATLANTIC GRUPA’S BUSINESS MODEL from 2012
SBU SBU SBU SBU SBU SBU
77
COFFEE
� Reorganization in 2012 with an aim to manage business segments and distribution markets in a more efficient manner.
BEVERAGES SAVOURY
SPREADS
SNACKS SPORTS &
FUNCTIONAL
FOOD
PHARMA &
PERSONAL
CARE
SDU
CROATIA
SDU
SLOVENIA,
SERBIA &
MACEDONIA
SDU
HoReCa(Hotels,
Restaurants,
Cafes)
DU
RUSSIA
SDU
International
Markets
STABLE MANAGEMENT TEAM and OWNERSHIP STRUCTURE
Management Ownership structure on 30/12/2011
Mladen Veber
Senior Group Vice Zoran Stanković
Group Vice President
Neven Vranković
Group Vice President
Emil Tedeschi
President of the
Management Board
88
50.20% Emil Tedeschi 17.29% Pension funds
8.54% EBRD 8.49% DEG
5.79% Lada Tedeschi Fiorio 1.24% Management
0.36% East Capital 8.09% OtherSupervisory board
Supervisory Board
Audit CommitteeNomination and Remuneration
Committee
Corporate GovernanceCommittee
Senior Group Vice
President
Business Operations
Group Vice President
Finance
Group Vice President
Corporate Affairs
Strategic Management Council: deals with vital strategic and operational
corporate issues.
Consists of: Board members, Senior Executive Directors of SBUs and SDUs,
Secretary General, Executive Directors of Brand operations management,
Central Purchasing and HR as well as the Head of Investment Committee.
PRODUCT/DISTRIBUTION PORTFOLIO OVERVIEW
• Turkish c.
• Espresso c.
• Instant c.COFFEE
• Meat spreads
• Fish spreads
SAVOURY SPREADS
• Carbonated soft drinks
• Vitamin instant drink
• Teas & functional teas
• Functional water
• Bottled water
BEVERAGES
• Toothpaste
• Body creams/universal PERSONAL
CARE
99
• Snacks
• Chocolate
• Biscuits & wafers
CONFECTIO-NERY & SNACKS
• Sports food
• Food supplements
SPORTS & FUNCTIONAL
FOOD
• Own brands
• International brands (Wrigley, Ferrero, Duracell, Jonhson&Johnson, etc.)
DISTRIBUTION
• Body creams/universal creams
• Lip balms
CARE PRODUCTS
• Pharmacy chain
• Vitamins, minerals & food supplements
PHARMA
• Cereals
• Jars, tea
• Milk formula & juicesBABY FOOD
GEOGRAPHIC PRESENCE
28%
25%
13%6%
6%1%
1%3%
9%
Geografic profile* Croatia
Serbia
Slovenia
B&H
Other ex. Yu
Germany
UK
Italy
Russia and EE
1010
Macroeconomic overview
Slovenia
Croatia
Serbia
Macedonia
BiH
+ production facility
in Germany
Strong production and distribution network in the region
* Unaudited 2011 figures
13%8%
6% Russia and EE
Other
2011A 2012E 2013E
Ex. Yugoslavia population
Croatia**
GDP per capita (EUR) 10,423* 10,645 11,182
Inflation 2.3 2.9 2.2
Serbia**
GDP per capita (EUR) 4,471* 4,741 5,141
Inflation 11.2 5.4 6.8
B&H**
GDP per capita (EUR) 3,437* 3,550 3,731
Inflation 3.7 2.8 2.6
Macedonia***
GDP per capita (EUR) 3,855* 3.967 4.284
Inflation 4.4* 2.0 2.0
Slovenia**
GDP per capita (EUR) 17,665* 17,939 18,558
Inflation 1.8 2.4 2.6
Source:*Estimate; **UniCredit CEE Quarterly, Dec-11; ***IMF, World Economic Outlook Database, Sept-11
22 mil l ion
SALES PROFILE
� Coffee, Sports and
Functional Food, Beverages
and Sweet and salted
snacks are the largest
product categories
� Own brands comprise
72% of Group’s sales
� Atlantic Grupa has 11
brands with sales ≥ EUR
15m
72%
17%
5%
6%
Sales by brands*
Own brands Principal brands
Private label Farmacia
17%14%
10%
21%
12%
9%
14%
3%
Sales by categories* Distribution (Principal brands)
Sports and Functional Food
Pharma and Personal care
Coffee
Sweet and salted snack
Savoury spreads
Beverages
Baby food
1111
Top brands in FY11** with sales ≥ EUR 15m Brands among top 3 brands in category
* Unaudited 2011 figures; ** Figures translated at EUR/HRK FX rate of 7.5, Figures at Net I level
80
59
4441
31
23 2319 19 17 17
Private label FarmaciaBaby food
Slovenia
Serbia
Croatia
B&H
Germany
Russia
FINANCIAL OVERVIEW: 2007-2011
EURm FY07 FY08 FY09 FY10FY10
pro-formaFY11*
CAGR
FY07-FY11
Revenues 227 269 296 306 609 637 29%
Sales 223 267 293 302 602 630 30%
Normalized EBITDA 18 23 25 27 70 69 41%
Normalized EBIT 13 17 19 20 37 41 34%
Normalized Net profit 7 10 12 11 17 4 -15%
1212
� Growth in challenging macroeconomic milieu due to innovation and acquisitions.
* Unaudited; **Normalized margins
EUR/HRK rate at 7.5 (to avoid FX impact)
EBITDA margin** 7.9% 8.5% 8.6% 8.9% 11.7% 10.9% +302bp
EBIT margin** 5.7% 6.5% 6.6% 6.5% 6.1% 6.5% +84bp
Net profit margin** 3.3% 3.9% 4.1% 3.8% 2.8% 0.6% -267bp
Net debt 12 39 36 333 333 333
Total assets 200 230 237 688 688 700
Equity 90 99 101 194 194 201
Gearing ratio 11.6% 28.1% 26.4% 63.2% 63.2% 62.3%
CONTENT
ATLANTIC GRUPA’S BUSINESS MODEL, DEVELOPMENT and PERFORMANCE
INTEGRATION ACTIVITIES and SYNERGIES
1313
2011 FINANCIALS
2012 OUTLOOK
KEY INTEGRATION ACTIVITIES
Sales and distribution
• Setting up joined distribution on all regional markets: establishing independent distribution companies on each regional market that are consolidated in
Logistics and investments
• Setting up joined logistics operations and processes (the most complex one in Serbia with 11 distribution centres, reallocated to 4 new locations)
Procurement/
Production/
Marketing
• Implemented centralised procurement system
• Developed purchasing category management concept with lead buyers for key raw materials
HR challenges
• Creating new and efficient business organisation
• Retaining and motivating the most qualitative workforce
1414
that are consolidated in the Distribution division
• Implemented new commercial terms on all regional markets
• Sales force optimized
locations)
• Logistics reorganisation in Croatia (in-house logistics as opposed to formerly outsourced logistics)
• Consolidation of office space on all regional markets
for key raw materials
• Feasibility studies for consolidation of particular production activities (e.g. transfer of currently outsourced production to in-house production: Cocktabottling to Apatovac)
• Implemented centralised marketing
workforce
• Co-life of different corporate cultures
• Developing fair rewarding schemes
� First phase of integration activities carried out in the 1H11
OVERVIEW of NET SYNERGIES in 2011
7,097
5,237
4,000
6,000
8,000Net Synergies, EUR000
Distribution
32%
Purchasing
24%
By Areas, net synergies
1515
* Capex of EUR 705 ths refers to Investment management: Investments in opening new distribution centres (including investments in
warehouse equipment and ICT) and refurbishment of office space
1,860
0
2,000
4,000
Integration savings Integration expenses
(incl. Capex)
Net synergies
Logistics &
Investment
Mgmt.
6%Finance & ICT
10%
Human
Resources
18%
Marketing
10%
KEY INTEGRATION ACTIVITIES: Phase II
Consolidation of production facilities
• Previously outsourced bottling of Cockta for Croatian and B&H market has been replaced with in-house bottling in Apatovec,
Consolidation of information technology
• Consolidation of business IT solutions on several regional markets based on the assessment of business systems for
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
1616
house bottling in Apatovec, Croatia
• 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
of business systems for operational support within Droga Kolinska and Atlantic Grupa and selection of best practice
• Redefining current IT contracts related to telecom services, licences and outsourced IT support
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
CONTENT
ATLANTIC GRUPA’S BUSINESS MODEL, DEVELOPMENT and PERFORMANCE
INTEGRATION ACTIVITIES and SYNERGIES
1717
2011 FINANCIALS
2012 OUTLOOK
600
630620 2011A
2011E100
69 70
2011A
2011E
RESULTS in LINE WITH GUIDANCE
EURm 101.7% 98.2% 96.9%
1818
0
200
400
Sales
0
50
EBITDA EBIT
41 43
� 2011 result normalized
FINANCIAL OVERVIEW in FY11
Key figures (EURm) 2011 Actual*2010 Pro-forma
consolidated
2011 Actual*/
2010
Revenues 637 610 4.3%
Sales 630 602 4.8%
EBITDA 67 73 -8.1%
EBIT 45 39 13.8%
Net profit 7 20 -62.5%
EBITDA margin 10.6% 12.1% -148bp
EBIT margin 7.1% 6.5% +56bp
1919
Impact on 2011 profitability:
� Positive one-off impact: Successful divestment of 13% stake in RTL Croatia with one-off gain of EUR 1.6m
� Negative impact: surge in raw material prices on global commodity markets
� Higher interest expenses amid financing acquisition of Droga Kolinska and FX loss
� PPA (purchase price allocation) impact from Droga Kolinska acquisition of EUR 3.0m
*Unaudited; EUR/HRK rate at 7.5 (to avoid FX impact)
EBIT margin 7.1% 6.5% +56bp
Net profit margin 1.2% 3.2% -208bp
Normalised EBITDA 69 70 -1.7%
Normalised EBIT 41 37 12.1%
Normalised Net profit 4 17 -77.7%
Normalised EBITDA margin 10.9% 11.7% -72bp
Normalised EBIT margin 6.5% 6.1% +43bp
Normalised Net profit margin 0.6% 2.8% -219bp
SALES OVERVIEW in FY11
630602
EURm
451
109
34 37
424
121
26 32
2011 Actual*
2010 Pro-forma consolidated
EURm
2020*Unaudited; EUR/HRK rate at 7.5 (to avoid FX impact)
2011 Actual* 2010 Pro-forma
consolidated Own brands Principal brands Private label Farmacia
EURm 2011 Actual* % of total2010 Pro-forma
consolidated% of total 2011/2010
Croatia 178 28% 184 30% (3%)
Serbia 161 25% 142 24% 13%
Slovenia 80 13% 77 13% 4%
B&H 48 8% 53 9% (9%)
Other ex YU 39 6% 35 6% 13%
Key WEU (GER, UK, ITA) 47 8% 47 8% 1%
Russia & EE 19 3% 24 4% (20%)
Other markets 59 9% 40 6% 47%
TOTAL 630 100% 602 100% 5%
PROFITABILITY DYNAMICS – surge in raw material prices on global commodity markets
2121
� On the pro-forma consolidated basis, production materials
expenses increased 21% yoy in FY11
� Increase in production materials expenses came on the back of:
* Increase in coffee costs compared to 2010, whereby coffee as
the key raw material in Atlantic Grupa’s raw materials mix
accounted for around 36% of total production materials expenses
* Increase in sugar, powdered milk and cocoa costs compared to
2010
� Growth in coffee costs largely came on the back of rocketing of
coffee prices on global commodity markets (expressed through
coffee “C” futures contract as the world benchmark for Arabica
coffee) by 55% on average in 2011 as opposed to 2010
� Going forth:
* Global coffee beans inventories are on historically low levels and
inventories in weeks of consumption are in downtrend, thus
further putting upward pressure on the coffee prices
* On the other side, supply/demand balance shows an excess of
supply, thus putting a downward pressure on the coffee prices
BALANCE SHEET as of 31/12/2011
EUR000
Property, plant and equipment 157,910 22.6% 165,113 24.0%
Intangible as sets 246,708 35.3% 243,618 35.4%
Other non-current as sets 11,059 1.6% 15,072 2.2%
Non-current assets 415,677 59.4% 423,803 61.6%
Inventories 71,157 10.2% 67,069 9.7%
Trade & other receivables 149,093 21.3% 146,685 21.3%
Ass ets held for sa le 20,155 2.9% 15,802 2.3%
Other current ass ets 5,797 0.8% 4,144 0.6%
Cas h and cash equiva lents 37,810 5.4% 30,930 4.5%
Current assets 284,013 40.6% 264,630 38.4%
Total assets 699,690 100.0% 688,433 100.0%
31/12/2011 Actual* 31/12/2010 Restated
2222*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
Total assets 699,690 100.0% 688,433 100.0%0.0%
Capital and reserves 192,166 27.5% 185,578 27.0%
Non-controlling interest 9,056 1.3% 8,484 1.2%
Borrowings 312,997 44.7% 267,704 38.9%
Deferred tax l iabi l i ties 15,549 2.2% 15,320 2.2%
Other non-current l iabi l i ties 19,538 2.8% 13,089 1.9%
Non-current liabilities 348,084 49.7% 296,113 43.0%
Trade & other payables 93,242 13.3% 94,900 13.8%
Borrowings 49,904 7.1% 93,033 13.5%
Other current l iabi l i ties 7,238 1.0% 10,326 1.5%
Current liabilities 150,385 21.5% 198,259 28.8%
Total liabilities 498,469 71.2% 494,371 71.8%
Total equity and liabilities 699,690 100.0% 688,433 100.0%
2011 CASH FLOW
EUR000 Jan - Dec 2011* Jan - Dec 2010
Net cash flow from operating activities 20,974 6,385
Net CFO before interest and income tax paid 50,694 13,485
Cash flow from investing activities (1,974) (210,751)
O/w Capex (12,182) (4,644)
Net cash flow from / (used in) financing activities (12,120) 225,352
Net increase / (decrease) in cash and cash equivalents 6,880 20,986
2323*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
� Net cash from operating activities amounted to EUR 21.7 million FY11 and EUR 13.3 million in FY10, once transaction
costs excluded
Net increase / (decrease) in cash and cash equivalents 6,880 20,986
Cash and cash equivalents at beginning of period 30,930 9,944
Cash and cash equivalents at end of period 37,810 30,930
FINANCIAL INDICATORS in 2011
29%
8%
2%
13%
4%
Total Equity and Liabilities structure at 31/12/11
Capital and reserves
Long-term debt
Short-term debt
Bond
Trade and other
payables
EURm Actual 2011* 2010 Pro-forma cons.
Net debt 333 333
Total assets 700 688
Equity 201 194
Current ratio 1.9 1.3
Gearing ratio 62.3% 63.2%
Interest coverage ratio** 2.3 5.3
Net debt/EBITDA** 4.8 4.7
Capex 12.2 4.6
2424
Debt indicators:
� Net debt – to – normalized EBITDA ratio at 4.8 times
� Normalized EBITDA – to – interest expense ratio at 2.3 times
� Gearing ratio at 62.3%
In accordance with the policy of active debt management, Atlantic Grupa used interest rate swaps to fix significant portion of
its long-term financial liabilities during 1Q11
* 2010 reflects consolidation of Balance sheet and Pro-forma consolidation of Profit & Loss account
EUR/HRK rate at 7.5 (to avoid FX impact)
Call for: prudent debt management and
delivery of planned synergies
44% Other liabilitiesCapex 12.2 4.6
Cash flow from operating activities*** 22 13
*Unaudited figures ; **Normal ized; *** Excluding impact of trans action cos ts
CONTENT
ATLANTIC GRUPA’S BUSINESS MODEL, DEVELOPMENT and PERFORMANCE
INTEGRATION ACTIVITIES and SYNERGIES
2525
2011 FINANCIALS
2012 OUTLOOK
STRATEGIC GUIDANCE
� 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;
� 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
2626
Strategic management
guidance
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.
OUTLOOK 2012: FINANCIAL OVERVIEW
EURm2012 Guidance
(excluding one-offs)2011 Normalized 2012/2011
Sales 662 630 5.0%
EBITDA 73 69 6.3%
EBIT* 51 47 9.5%
2727*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
* 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.
EBIT* 51 47 9.5%
Interest expense 30 30
Appendix
2828
FY11 CONSOLIDATED INCOME STATEMENT (UNAUDITED)
EUR000 FY11 % of sales
FY10
Pro-forma
consolidated
% of salesFY10 Stand-
alone% of sales
FY11/FY10
Pro-forma
consolidated
FY11/FY10
Stand-alone
Turnover 636,585 101.0% 610,072 101.4% 306,926 101.5% 4.3% 107.4%
Sales 630,369 100.0% 601,731 100.0% 302,485 100.0% 4.8% 108.4%
Other income 6,216 1.0% 8,341 1.4% 4,440 1.5% (25.5%) 40.0%
Operating costs 569,829 90.4% 537,448 89.3% 277,587 91.8% 6.0% 105.3%
Cost of merchandise sold 158,356 25.1% 160,219 26.6% 144,763 47.9% (1.2%) 9.4%
Change in inventories (770) (0.1%) 755 0.1% (1,254) (0.4%) n/a n/a
Production materials 210,658 33.4% 174,558 29.0% 38,810 12.8% 20.7% 442.8%
Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%
2929*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%
Services 41,125 6.5% 43,675 7.3% 21,778 7.2% (5.8%) 88.8%
Personnel costs 84,673 13.4% 87,734 14.6% 43,459 14.4% (3.5%) 94.8%
Marketing expenses 41,762 6.6% 41,972 7.0% 19,826 6.6% (0.5%) 110.6%
Other expenses 28,399 4.5% 30,853 5.1% 17,138 5.7% (8.0%) 65.7%
Other (gains)/losses, net (2,541) (0.4%) (9,428) (1.6%) (8,552) (2.8%) (73.0%) (70.3%)
EBITDA 66,756 10.6% 72,625 12.1% 29,339 9.7% (8.1%) 127.5%
EBIT 44,646 7.1% 39,234 6.5% 21,998 7.3% 13.8% 103.0%
EBT 10,512 1.7% 22,436 3.7% 16,416 5.4% (53.1%) (36.0%)
Taxes 3,193 0.5% 2,913 0.5% 2,177 0.7% 9.6% 46.7%
Net income 7,319 1.2% 19,524 3.2% 14,240 4.7% (62.5%) (48.6%)
Minority interest 1,105 0.2% 1,745 0.3% 1,574 0.5% (36.7%) (29.8%)
Net income II 6,213 1.0% 17,778 3.0% 12,666 4.2% (65.1%) (50.9%)
FY11 NORMALIZED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
EUR000 FY11% of
sales
FY10
Pro-forma
consolidated
% of
sales
FY10 Stand-
alone
% of
sales
FY11/FY10
Pro-forma
consolidated
FY11/FY10
Stand-alone
Turnover 636,585 101.0% 609,256 101.3% 306,110 101.2% 4.5% 108.0%
Sales 630,369 100.0% 601,731 100.0% 302,485 100.0% 4.8% 108.4%
Other income 6,216 1.0% 7,525 1.3% 3,625 1.2% (17.4%) 71.5%
Operating costs 567,614 90.0% 539,084 89.6% 279,223 92.3% 5.3% 103.3%
Cost of merchandise sold 155,322 24.6% 160,219 26.6% 144,763 47.9% (3.1%) 7.3%
Change in inventories (770) (0.1%) 755 0.1% (1,254) (0.4%) n/a n/a
Production materials 210,658 33.4% 174,558 29.0% 38,810 12.8% 20.7% 442.8%
3030*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
Energy 8,165 1.3% 7,110 1.2% 1,619 0.5% 14.8% 404.4%
Services 40,540 6.4% 41,089 6.8% 19,192 6.3% (1.3%) 111.2%
Personnel costs 84,673 13.4% 87,734 14.6% 43,459 14.4% (3.5%) 94.8%
Marketing expenses 41,762 6.6% 41,972 7.0% 19,826 6.6% (0.5%) 110.6%
Other expenses 28,209 4.5% 26,402 4.4% 12,687 4.2% 6.8% 122.3%
Other (gains)/losses, net (946) (0.2%) (755) (0.1%) 122 0.0% 25.3% (878.5%)
EBITDA 68,971 10.9% 70,172 11.7% 26,887 8.9% (1.7%) 156.5%
EBIT 41,222 6.5% 36,782 6.1% 19,546 6.5% 12.1% 110.9%
EBT 6,922 1.1% 19,884 3.3% 13,864 4.6% (65.2%) (50.1%)
Taxes
Net income 3,729 0.6% 16,751 2.8% 11,467 3.8% (77.7%) (67.5%)
Minority interest 1,105 0.2% 1,745 0.3% 1,574 0.5% (36.7%) (29.8%)
Net income II 2,624 0.4% 15,006 2.5% 9,893 3.3% (82.5%) (73.5%)
BALANCE SHEET as of 31 December 2011 (UNAUDITED)
EUR000
Property, plant and equipment 157,910 22.6% 165,113 24.0%
Intangible assets 246,708 35.3% 243,618 35.4%
Non-current investments 181 0.0% 4,851 0.7%
Long-term receivables 2,869 0.4% 3,165 0.5%
Derivative financia l ins trument 1,149 0.2% - 0.0%
Deferred tax assets 6,860 1.0% 7,057 1.0%
Non-current assets 415,677 59.4% 423,803 61.6%
Inventories 71,157 10.2% 67,069 9.7%
Trade & other receivables 149,093 21.3% 146,685 21.2%
ST investments 47 0.0% 692 0.2%
Assets held for sa le 20,155 2.9% 15,802 2.3%
Prepaid income tax 3,317 0.5% 2,393 0.3%
Derivative financia l ins trument 2,433 0.3% 1,059 0.2%
31/12/2011 Actual* 31/12/2010 Restated
3131*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
Derivative financia l ins trument 2,433 0.3% 1,059 0.2%
Cash and cash equiva lents 37,810 5.4% 30,930 4.5%
Current assets 284,013 40.6% 264,630 38.4%
Total assets 699,690 100.0% 688,433 100.0%0.0%
Capital and reserves 192,166 27.5% 185,578 27.0%
Non-controlling interest 9,056 1.3% 8,484 1.2%
Borrowings 312,997 44.7% 267,704 38.9%
Deferred tax l iabi l i ties 15,549 2.2% 15,320 2.2%
Other non-current l iabi l i ties 4,848 0.7% 5,123 0.7%
Derivative financia l ins trument 8,319 1.2% - 0.0%
Provis ions 6,371 0.9% 7,966 1.2%
Non-current liabilities 348,084 49.7% 296,113 43.0%
Trade & other payables 93,242 13.3% 94,900 13.8%
Borrowings 49,904 7.1% 93,033 13.5%
Current income tax l iabi l i ties 1,674 0.2% 2,213 0.3%
Derivative financia l ins trument 2,756 0.4% 4,713 0.7%
Provis ions 2,808 0.4% 3,401 0.5%
Current liabilities 150,385 21.5% 198,259 28.8%
Total liabilities 498,469 71.2% 494,371 71.8%
Total equity and liabilities 699,690 100.0% 688,433 100.0%
2011 CASH FLOW
EUR000 2011 Actual* 2010 Actual AG
Net profit 7,319 14,240
Income tax 3,193 2,177
Depreciation and amortization 22,110 7,341
Loss / (gain) on di sposal of property, plant and equipment 8 (6,620)
Ga in on sa le of assets ava i lable for sa le (1,595) 0
Value adjustment of current assets 6,845 2,800
Interest income (1,513) (1,740)
Interest expense 29,489 5,156
Other 4,515 462
Changes in working capital (17,489) (9,511)
(Decrease) / increase in provis ions for ri sks and charges (2,187) (819)
Interest pa id (25,116) (3,633)
Income tax pa id (4,604) (3,467)
3232*Unaudited figures; EUR/HRK rate at 7.5 (to avoid FX impact)
Income tax pa id (4,604) (3,467)
Net cash flow from operating activities 20,974 6,385
Purchase of tangible and intangible assets (12,182) (4,644)
Proceeds from sale of assets ava i lable for sa le 6,262 0
Proceeds from sale of property, plant and equipment 1,812 1,433
Acquis ition of subs idiary and non-control l ing interest (778) (226,085)
Loans and depos i ts given 1,665 16,778
Dividend received 0 30
Purchase of financial assets (267) 0
Interest received 1,513 1,737
Net cash flow used in investing activities (1,974) (210,751)
Capi ta l increase 0 80,668
Purchase of treasury shares (338) 0
New borrowings* 145,885 159,207
Repayment of borrowings (157,013) (10,579)
Proceeds from bond i ssued (515) 0
Dividend pa id to minori ty interest (140) (1,148)
Dividend pa id to equity holders of the Company 0 (2,797)
Net cash flow from / (used in) financing activities (12,120) 225,352
Net increase in cash and cash equivalents 6,880 20,986
Cash and cash equivalents at beginning of period 30,930 9,944
Cash and cash equivalents at end of period 37,810 30,930
ATLANTIC GRUPACompany of Added Value
3333
13th Annual Emerging Europe Investment Conference
New York City, March 15-16, 2012