ATLANTIC GRUPA
Company of Added Value
Investment Conference of Zagreb and Ljubljana Stock Exchanges
6 May 2014, Zagreb
CONTENT
OVERVIEW OF ATLANTIC GRUPA
FINANCIAL OVERVIEW IN 2013
FINANCIAL OVERVIEW IN Q1 2014
STRATEGIC GUIDANCE
2
ONE OF THE LARGEST FOOD AND BEVERAGES COMPANIES IN THE SEE REGION
Key business segments: Key brands:
The leading coffee producer in the region GRAND KAFA, BARCAFFE
Prominent European company in the sports nutrition MULTIPOWER
Among the leading soft drinks producers in the region CEDEVITA, COCKTA, DONAT Mg
Among the leading confectionary & snacks producers in the region SMOKI, NAJLEPŠE ŽELJE, BANANICA
Among the leading savoury spreads producers in the region ARGETA
Producer of the No1 Croatian brand in the VMS segment DIETPHARM
The leading private pharmacy chain in Croatia FARMACIA
The leading FMCG distributer in the SEE region International Brands (Ferrero, Wrigley, Unilever, ...)
Business
Fast Moving Consumer Goods
Headquarters
Zagreb, Croatia (Europe)
Foundation
1991
No of employees
4,228
FY13 sales
HRK 5,051 millions
Key Markets
SEE region, Western Europe, Russia
presence on over 40 markets
Production locations
14 production locations in Croatia, Slovenia, Bosnia and
Herzegovina, Serbia, Macedonia and Germany
The region includes: Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Montenegro, Macedonia and Kosovo.
3
4
DEVELOPMENT CYCLE: EXTENSIVE M&A TRACK RECORD
Acquisition of Kalničke vode Bionatura
Acquisition of DROGA KOLINSKA
Acquisition of pharmacies – Farmacia
IPO
Acquisition of Fidifarm & Multivita
Representative office Moscow
Acquisition of Haleko & Power Gym:
MULTIPOWER
2010
2010
2008/9
2007
2007
2006
2005
Acquisition of Melem
Atlantic Slovenia
Atlantic Macedonia
Acquisition of Neva
Acquisition of CEDEVITA
Atlantic Serbia
Representative office B&H
2004
2004
2003
2003
2001
2001
2001
Cooperation Johnson & Johnson
Cooperation Duracell
Distribution center Rijeka
Distribution center Osijek
Distribution center Split
Cooperation Wrigley
1999
1996
1994
1994
1992
1991
DIS
TR
IBU
TIO
N
DIS
TR
IBU
TIO
N &
PR
OD
UC
TIO
N
VE
RT
ICA
L I
NT
EG
RA
TIO
N
European company
National company
Regional company
2010*: Pro-forma consolidated with Droga Kolinska.
8 43 88 129 202 250 273 313460
611 675 7621,085
1,3941,670
2,0032,199 2,269
4,5134,728
4,930 5,051
0
1,000
2,000
3,000
4,000
5,000
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2010* 2011 2012 2013
Sales in HRKm
CAGR 1993-2013:
+38.0%
ATLANTIC GRUPA’S BUSINESS MODEL TODAY
SBU
COFFEE
From 2014 the company's business operations are organized in six Strategic Business Units (SBU), one Business Unit (BU), five
Strategic Distribution Units (SDU) and two Distribution Units (DU), allowing the company to manage its production and distribution
operations more effectively
SBU
BEVERAGES
SBU
SPORTS AND
FUNCTIONAL
FOOD
SBU
PHARMA
AND
PERSONAL
CARE
SBU
SAVOURY
SPREADS
SBU
SNACKS
SDU
Croatia
SDU
Serbia
SDU
HoReCa
Hotels,
Restaurants,
Cafes
SDU
International
Markets*
5
*International markets: markets outside the region (Croatia, Slovenia, Bosnia and Herzegovina, Serbia, Macedonia and Montenegro), Russia and CIS.
BU
BABY FOOD
SDU
CIS
DU
Slovenia
DU
Macedonia
STABLE MANAGEMENT TEAM AND OWNERSHIP STRUCTURE
Supervisory board
Supervisory Board
Audit CommitteeNomination and Remuneration
Committee
Corporate Governance Committee
Mladen VeberSenior Group Vice President
Business Operations
Zoran StankovićGroup Vice President
Finance
Neven VrankovićGroup Vice President
Corporate Affairs
Emil TedeschiPresident of the
Management Board
Strategic Management Council
Deals with vital strategic and operational corporate issues.
Consists of: Board Members, Vice Presidents and General Managers of each SBU
and SDU, Senior Executive Director for Regional KAM and Sales Croatia, the
Secretary General, Executive Directors of Corporate Controlling, IT, Central
Purchasing and Human Resources, and the Head of the Investment Committee.
6
Zdenko
Adrović
Lada
Tedeschi
Fiorio
Siniša
Petrović
Željko
Perić
Franz
Josef
Flosbach
Aleksandar
Pekeč
Vedrana
Jelušić
Kašić
President
of the
Supervisory
Board
Vice President
of the
Supervisory
Board
Member
of the
Supervisory
Board
Member
of the
Supervisory
Board
Member
of the
Supervisory
Board
Member
of the
Supervisory
Board
Member
of the
Supervisory
Board
Management Ownership structure on 31/03/2014
Emil Tedeschi
50.2%
Pension funds18.2%
EBRD8.5%
DEG8.5%
Lada Tedeschi Fiorio5.8%
Management1.2%Others
7.6%
PRODUCT/DISTRIBUTION PORTFOLIO OVERVIEW
7
Co
ffe
e Turkish Coffee
Espresso coffee
Instant coffee
Sa
vo
ury
sp
rea
ds Meat spreads
Fish spreads
Sandwiches
Sn
acks Savoury snacks
Chocolate tablets
Wafers & Biscuits
Bars
Sp
ort
s a
nd
fun
ctio
na
l fo
od
Sports food
Weight management range
Energy range
Body building range
Dis
trib
ution
Own brands
International brands
Be
ve
rag
es Carbonated soft drinks
Vitamin instant drinks
Functional waters
Waters
Tea and Functional tea
Pe
rso
na
lca
re
Body care
Face care
Lip care
Tooth care
Ph
arm
a Food supplements
OTC products
Pharmacy chain
Ba
by f
oo
d
Baby cereals
Milk formula
Tea
Water
Biscuits
ATLANTIC GRUPA’S GREATEST ASSETS
Brands with key market positions - among the top 3 in their category based on latest available data. Market position ranking based on volume (items) market share. Data source: Nielsen
Retail Panel, PharMIS and company data.
8
Croatia
Serbia
Slovenia
Bosnia and
Herzegovina
Macedonia
Germany
Italy
United
Kingdom
Austria
Switzerland
Ukraine
GEOGRAPHIC PRESENCE AND MACROECONOMIC ENVIRONMENT
9
Sales by countries in 2013; *Other regional markets: Macedonia, Montenegro, Kosovo; **Key European markets: Germany, UK, Italy, Switzerland, Austria, Sweden, Spain; Macro data source:
European Commission, European Economic Forecast, Winter 2014; for FX rates - National Bank of Serbia, UniCredit CEE 2Q14, HAAB SEE Outlook March 2014, RBA CEE Strategy 2Q14.
Slovenia
Croatia
Bosnia and
HerzegovinaSerbia
Macedonia+ production facility
in Germany
Overview of production facilities
Croatia24.8%
Serbia24.1%
Slovenia13.6%
Bosnia and Herzegovina
7.2%
Other regional markets*
6.3%
Key European markets**
11.7%
Russia and CIS5.9%
Other markets6.4%
Sales by countries Croatia 2011 2012 2013f 2014f 2015f
GDP 0.0% (2.0%) (0.7%) 0.5% 1.2%
Unemployment 13.5% 15.9% 17.6% 17.6% 17.2%
CPI 2.2% 3.4% 2.3% 1.3% 1.5%
EUR/HRK 7.44 7.52 7.58 7.62 7.62
Serbia 2011 2012 2013f 2014f 2015f
GDP 1.6% (1.5%) 2.1% 1.3% 2.2%
Unemployment 23.0% 23.9% 22.1% 22.3% 21.4%
CPI 11.1% 7.3% 7.9% 4.3% 5.0%
EUR/RSD 101.95 113.13 113.14 117.19 119.94
Slovenia 2011 2012 2013f 2014f 2015f
GDP 0.7% (2.5%) (1.6%) (0.1%) 1.3%
Unemployment 8.2% 8.9% 10.2% 10.8% 10.7%
CPI 2.1% 2.8% 1.9% 0.8% 1.3%
EUR/USD 1.39 1.28 1.33 1.35 1.33
Germany 2011 2012 2013f 2014f 2015f
GDP 3.3% 0.7% 0.4% 1.8% 2.0%
Unemployment 5.9% 5.5% 5.3% 5.2% 5.1%
CPI 2.5% 2.1% 1.6% 1.4% 1.4%
EUR/USD 1.39 1.28 1.33 1.35 1.33
Russia 2011 2012 2013f 2014f 2015f
GDP 4.3% 3.4% 1.3% 2.3% 2.7%
Unemployment 6.6% 5.5% 5.5% 5.9% 6.2%
CPI 8.4% 5.1% 6.8% 5.9% 5.0%
EUR/RUB 41.26 39.94 42.31 49.94 51.11
SALES PROFILE AND BUSINESS ENVIRONMENT
10
Sales by segments and brands in 2013; Business environment source: www.confectionerynews.com, http://uk.synergytaste.com, www.beveragedaily.com, IGD Retail Analysis.
Top 5 factors influencing F&B industry
Collaboration in innovation
Between ingredient and packaging firms and industry
Ethics at eye level
Environmental stewardship, animal welfare and fair play for workers
are among conditions of production that consumers now expect
Rising food prices
Smaller grain stockpiles, a growing population, increased demand for
animal protein and a changing climate disrupt supply/demand balance
Food taxes and subsidies
Balance taxes on less healthy foods with subsidies for healthy ones
Simple ingredients
Key retail trends
Shoppers hungry for value
Online, digital and multi-channel
Redefinition of private label
Making the most of events
Focus on the store environment
Principal brands15.0%
Sports and Functional
Food15.5%
Pharma & Personal
care 9.7%
Coffee21.5%
Sweet and salted snacks
12.2%
Savoury spreads
9.1%
Beverages 12.9%Baby food
4.2%
Sales by segments
Own brands72.5%
Principal brands15.0%
Private label6.4%
Farmacia6.1%
Sales by brands
FINANCIAL OVERVIEW: 2010 – 2013
11
P&L figures normalized; *Gearing ratio calculated as Net debt/(Total equity+Net debt); ** For FY10 calculated on pro-forma level.
(HRKm) FY10FY10 pro-
formaFY11 FY12 FY13
CAGR FY10
pro-forma - FY13FY13/FY12
Revenues 2,296 4,569 4,774 4,985 5,092 3.7% 2.2%
Sales 2,269 4,513 4,728 4,930 5,051 3.8% 2.5%
EBITDA 202 526 517 559 591 3.9% 5.8%
EBIT 147 276 351 399 425 15.5% 6.4%
Net profit 86 126 70 112 199 16.6% 77.0%
EBITDA margin 8.9% 11.7% 10.9% 11.3% 11.7% +3bp +37bp
EBIT margin 6.5% 6.1% 7.4% 8.1% 8.4% +229bp +31bp
Net profit margin 3.8% 2.8% 1.5% 2.3% 3.9% +116bp +166bp
Net debt 2,496 2,496 2,494 2,353 2,059
Total assets 5,259 5,259 5,355 5,150 5,083
Equity 1,456 1,456 1,512 1,461 1,674
Gearing ratio* 63.2% 63.2% 62.3% 61.7% 55.2%
Net debt/EBITDA** 4.7 4.7 4.8 4.2 3.5
Balance sheet as of YE10 reflected
consolidation of Droga Kolinska, but P&L
accounts were not consolidated in FY10
(consolidation started as of 01/01/2011).
In 2014, the classification of contracted
marketing expenses has changed from
“Marketing and selling expenses” to
decrease in “Sales revenues”, and
classification of support for contracted
marketing expenses has changed from
decrease in “Marketing and selling
expenses” to decrease in “Cost of
merchandise sold”. This reclassification
decreases above presented sales by
HRK 44.9 million in 2013 and HRK 40.9
million in 2012.
GUIDANCE TRACK RECORD
12
Atlantic Grupa listed on the Zagreb Stock Exchange on
19th of November 2007.
Since 2008 Atlantic Grupa publishes guidance for the
following financial year and delivers it.
0
1,000
2,000
3,000
4,000
5,000
6,000
2008 2009 2010 2011 2012 2013
Sales (HRKm)
93% 103% 99%
102%99%
98%
0
1.000
2.000
3.000
4.000
5.000
6.000
Sales EBITDA EBIT
4.930
559399
4.964
550385
Reported Guidance99%
102%104%
0
100
200
300
400
500
600
700
2008 2009 2010 2011 2012 2013
EBITDA (HRKm)
100%98% 101%
98%102%
101%
0
1.000
2.000
3.000
4.000
5.000
6.000
Sales EBITDA EBIT
4.930
559399
4.964
550385
Reported Guidance99%
102%104%
0
100
200
300
400
500
2008 2009 2010 2011 2012 2013
EBIT (HRKm)
104%99%
95%
97%
104%101%
0
1.000
2.000
3.000
4.000
5.000
6.000
Sales EBITDA EBIT
4.930
559399
4.964
550385
Reported Guidance99%
102%104%
13
PERFORMANCE ON CROATIAN CAPITAL MARKET
34%
7%
-38%
18%
48%
-47%
3% 0%
-18%
5%
16%
-67%
2%
-1%
-15%
10%
-80%
-40%
0%
40%
2013 2012 2011 2010 2009 2008
Performance on capital marketATGR-R-A
Crobex
Crobex10
The Atlantic Grupa’s share significantly outperformed the growth
of Crobex and Crobex10 and ended 2013 at HRK 718.0, which
was a 34.0% growth within a year.
With the average market capitalisation of HRK 2,178.7 millions,
Atlantic Grupa took the fifth place among the components of the
CROBEX10 stock index in 2013.
* Closing price multiplied by the total number of shares
** Normalized in 2012
0
200
400
600
800
1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
ATGR-R-A vs CROBEX
CROBEX
ATGR-R-A
Points HRK
02/05/2014 31/12/2013
Last price 793.0 718.0
Market capitalization* (HRKm) 2,644.1 2,394.0
Valuation 2013 2012
Last price in reporting period 718.0 536.0
Market capitalization* (HRKm) 2,394.0 1,787.2
Average daily turnover (HRK000) 237.8 201.0
EV (HRKm) 4,504.7 4,187.5
EV/EBITDA** 7.6 7.5
EV/EBIT** 10.6 10.5
EV/sales** 0.9 0.8
EPS** (HRK) 58.5 30.5
P/E** 12.3 17.6
CONTENT
OVERVIEW OF ATLANTIC GRUPA
FINANCIAL OVERVIEW IN 2013
FINANCIAL OVERVIEW IN Q1 2014
STRATEGIC GUIDANCE
14
15
PERFORMANCE BY STRATEGIC BUSINESS UNITS AND STRATEGIC DISTRIBUTION UNITS
* Sales and profitability shown according to AG’s business model valid in 2012 and 2013. Other segments include SDU HoReCa, Russian market and non-allocable
business activities (headquarters and support functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments. SDU
International Markets’ sales and profitability is presented within SBU to which they relate. The Russian market includes only the baby food product range sales under
the Bebi brand.
** Line item “Reconciliation” relates to the sale of own brands which is included in the appropriate SBU and in SDUs through which the products were distributed.
*** Sales correspond to figures shown in 2013 Audit Report. In 2014, the classification of contracted marketing expenses has changed from “Marketing and selling
expenses” to decrease in “Sales revenues”, and classification of support for contracted marketing expenses has changed from decrease in “Marketing and selling
expenses” to decrease in “Cost of merchandise sold”. This reclassification decreases above presented sales by HRK 44.9 million in 2013 and HRK 40.9 million
in 2012.
(HRKm) 2013 2012 2013/2012
SBU Beverages 652.0 671.9 (3.0%)
SBU Coffee 1,087.2 1,090.7 (0.3%)
SBU (Sweet and Salted) Snacks 617.5 600.5 2.8%
SBU Savoury Spreads 458.8 463.7 (1.0%)
SBU Sports and Functional Food 781.0 680.0 14.9%
SBU Pharma and Personal Care 506.0 481.3 5.1%
SDU Croatia 806.7 876.8 (8.0%)
SDU Slovenia, Serbia, Macedonia 1,938.6 1,930.4 0.4%
Other segments* 423.7 373.2 13.5%
Reconciliation** (2,220.1) (2,238.0) (0.8%)
Sales*** 5,051.3 4,930.4 2.5%
(HRKm) 2013 2012 2013/2012
SBU Beverages 122.2 137.0 (10.8%)
SBU Coffee 238.7 156.7 52.3%
SBU (Sweet and Salted) Snacks 111.8 115.3 (3.0%)
SBU Savoury Spreads 123.3 122.8 0.4%
SBU Sports and Functional Food 22.6 14.4 57.5%
SBU Pharma and Personal Care 47.9 57.3 (16.3%)
SDU Croatia 15.2 12.6 20.8%
SDU Slovenia, Serbia, Macedonia 82.6 84.5 (2.3%)
Other segments* (173.6) (142.0) 22.3%
Group EBITDA 590.8 558.6 5.8%
16
NET PROFIT IN 2013
1.8 times higher net profit due to:
Significant decrease in interest expense amid successful
refinancing of long-term borrowings completed at the end of
2012.
More favourable movements in foreign exchange rates,
which decreased the previous year’s net foreign exchange
losses arisen primarily due to the depreciation of the
Serbian dinar.
Negative impact had the significant increase in effective tax
rate to 21% from the previous year’s 6% due to the last year
recognised deferred tax asset based on the expected
utilisation of tax losses.
(HRK000) 2013 % of sales 2012* % of sales 2013/2012
EBIT 424,619 8.4% 399,229 8.1% 6.4%
Interest expenses (159,265) (3.2%) (215,371) (4.4%) (26.1%)
FX (gains)/losses – net (12,201) (0.2%) (63,935) (1.3%) (80.9%)
EBT 253,153 5.0% 119,923 2.4% 111.1%
Current tax (42,737) (0.8%) (25,975) (0.5%) 64.5%
Deferred tax (11,422) (0.2%) 18,511 0.4% n/a
Net income 198,994 3.9% 112,458 2.3% 76.9%
Minority interest (4,122) (0.1%) (10,882) (0.2%) (62.1%)
Net income II 194,872 3.9% 101,576 2.1% 91.8%
0
50
100
150
200
250
2013 2012
199
66
199
112
Net profitNormalized Net profit
HRKm
*Normalized
17
FINANCIAL INDICATORS IN 2013
(HRKm) 2013 2012
Net debt 2,059.3 2,353.1
Total assets 5,082.8 5,149.5
Total Equity 1,674.5 1,461.4
Current ratio 1.8 1.8
Gearing ratio 55.2% 61.7%
Net debt/EBITDA* 3.5 4.2
Interest coverage ratio* 3.7 2.6
Capital expenditure 100.0 78.8
Cash flow from operating activities 420.0 296.0
The company's focus on a continued deleveraging
Overview of capital expenditure:
SBU Coffee: automation of the line for coffee and purchase of espresso and Coffee 2 Go machines,
SBU Snacks: investment in the flips packaging machine, investment in the equipment for the production of pellets and purchase of line for the
production of fillings,
SBU Beverages: investment in the line for packaging multi-packs of Donat Mg, investment in the equipment for the production of the Donat Mg
new bottle, purchase of automated line for packaging Cedevita granules,
SBU Pharma and Personal care: refurbishment of pharmacies and specialised stores and
Other: investments related to the HRIS system (human resources information system) and the project of developing, implementing and relocating
the regional data centre in Zagreb.
* Normalized in 2012
Capital and reserves32.9%
Long term borrowings
36.5%Short term borrowings7.6%
Bond2.3%
Trade and other payables
14.5%
Other liabilities6.2%
Equity and liabilities structure as at 31/12/2013
CONTENT
OVERVIEW OF ATLANTIC GRUPA
FINANCIAL OVERVIEW IN 2013
FINANCIAL OVERVIEW IN Q1 2014
STRATEGIC GUIDANCE
18
19
FINANCIAL OVERVIEW IN Q1 2014
* Other segments include SDU HoReCa, SDU CIS, BU Baby Food, DU Macedonia and business activities not allocated to business and distribution units (headquarters and support
functions in Serbia, Slovenia and Macedonia) which are excluded from the reportable operating segments.
** Line item “Reconciliation” relates to the sale of own brands which is included in the appropriate SBU and BU and in SDUs and DUs through which the products were distributed.
*** In 2014 the classification of contracted marketing expenses has changed from “Marketing and selling expenses” to decrease in “Sales revenues”, and classification of support for
contracted marketing expenses has changed from decrease in “Marketing and selling expenses” to decrease in “Cost of merchandise sold”. In accordance with these changes, sales
revenue (referring to sales from distribution company Atlantic Trade Zagreb) for segment information for the three month period ended 31 March 2013 has also been restated, but no
restatement has been made for sales revenue referring to SBU Savoury Spreads on markets outside the region and BU Baby Food due to immateriality.
(HRKm) Q1 2014 Q1 2013***Q1 2014/
Q1 2013
SBU Beverages 130.6 128.2 1.8%
SBU Coffee 211.8 224.8 (5.8%)
SBU (Sweet and Salted) Snacks 133.3 144.0 (7.4%)
SBU Savoury Spreads 87.1 91.0 (4.3%)
SBU Sports and Functional Food 206.4 194.8 5.9%
SBU Pharma and Personal Care 120.1 112.1 7.1%
SDU Croatia 164.9 139.6 18.2%
SDU Serbia 232.8 250.1 (6.9%)
SDU International markets 67.9 71.6 (5.2%)
DU Slovenia 152.6 122.7 24.3%
Other segments* 176.3 177.7 (0.8%)
Reconciliation** (559.4) (576.4) (3.0%)
Sales 1,124.3 1,080.2 4.1%
Key highlights (HRKm) Q1 2014 Q1 2013***Q1 2014/
Q1 2013
Revenues 1,132.4 1,091.9 3.7%
Sales 1,124.3 1,080.2 4.1%
EBITDA 119.7 112.0 6.9%
EBIT 85.7 75.6 13.4%
Net profit 32.3 30.3 6.6%
EBITDA margin 10.6% 10.4% +28 bp
EBIT margin 7.6% 7.0% +63 bp
Net profit margin 2.9% 2.8% +7 bp
20
NET PROFIT IN Q1 2014
6.6 % higher net profit due to:
The impacts above the EBIT level,
Significant decrease in interest expense by 11.0% due to a
successful refinancing of long-term borrowings completed at
the end of 2012 and
Decrease in the effective tax rate to 20% from the previous
year’s 28%.
The negative impact was made by foreign exchange losses
arisen primarily due to the depreciation of the Serbian dinar.
(HRK000) Q1 2014 % of sales Q1 2013* % of salesQ1 2014/
Q1 2013
EBIT 85,718 7.6% 75,589 7.0% 13.4%
Interest expenses (36,523) 3.2% (41,042) (3.8%) (11.0%)
FX (gains)/losses – net (8,851) 0.8% 7,514 0.7% (217.8%)
EBT 40,344 3.6% 42,061 3.9% (4.1%)
Current tax (9,627) (0.9%) (6,567) (0.6%) 46.6%
Deferred tax 1,601 0.1% (5,170) (0.5%) n/a
Net income 32,318 2.9% 30,324 2.8% 6.6%
Minority interest (310) 0.0% 105 (0.0%) (396.6%)
Net income II 32,008 2.8% 30,429 2.8% 5.2%
0
5
10
15
20
25
30
35
Q1 2014 Q1 2013
3230
Net profitHRKm
21
FINANCIAL INDICATORS IN Q1 2014
The company's focus on a continued deleveraging
Overview of capital expenditure:
SBU Coffee: purchase of espresso machines and Coffee 2 Go machines, investment in the transport system for ground coffee,
SBU Snacks: investment in the line for the production of fillings, purchase of production equipment for the production of chocolate bars,
SBU Sports and Functional Food: investment in the production plant for the production of bars in Nova Gradiška,
SDU Croatia and SDU Slovenia: investments related to taking over the distribution of Unilever (IT, warehouses, offices).
(HRKm) Q1 2014 2013
Net debt 1,979.7 2,059.3
Total assets 5,078.4 5,082.8
Total Equity 1,710.3 1,674.5
Current ratio 1.7 1.8
Gearing ratio 53.7% 55.2%
Net debt/EBITDA 3.3 3.5
Q1 2014 Q1 2013
Interest coverage ratio 3.3 2.7
Capital expenditure 22.5 16.5
Cash flow from operating activities 111.7 83.0
Capital and
reserves33.7%
Long term borrowings
35.2%
Short term borrowings7.4%
Bond2.2%
Trade and other payables
15.3%
Other liabilities6.2%
Equity and liabilities structure as at 31/03/2014
CONTENT
OVERVIEW OF ATLANTIC GRUPA
FINANCIAL OVERVIEW IN 2013
FINANCIAL OVERVIEW IN Q1 2014
STRATEGIC GUIDANCE
22
23
STRATEGIC GUIDANCE FOR 2014
Strategic
management
guidance
Focus on organic business growth through active brand management with a special emphasis on strengthening
the position of regional brands (Cockta, Cedevita, Smoki, Grand Kafa, Barcaffe, Bananica, Štark) and brands with
international potential (Multipower, Argeta, Donat Mg, Bebi, Cedevita GO!);
Strengthening the regional character of distribution through the extension of the principals’ brands portfolio;
Active development of the regional HoReCa segment with a portfolio that covers '24/7 consumer needs' and other
sale channels (Online, Etno channel);
Rationalisation of operations, cost management and optimisation of business processes on all operating levels
aimed at improving operating efficiency;
Active monitoring of trends and hedging the price of raw coffee and other raw materials;
Regular settlement of existing financial liabilities with an active management of debt and financial expenses; and
Prudent liquidity management and further deleveraging.
Sales: 3% sales growth at the organic level and sales from the distribution of the Unilever product range of HRK 240 million.
Capital expenditure at HRK 216 million, 46% of which relates to the investment in the new factory of energy bars in Nova Gradiška.
The expected effective tax rate in 2014 should be at the 2013 level.
(HRKm) 2014 Guidance 2013 2014/2013
Sales 5,440 5,051 7.7%
EBITDA 620 591 4.9%
EBIT 460 425 8.3%
Interest expense 140 159 (12.1%)
ATLANTIC GRUPA
Company of Added Value
Investment Conference of Zagreb and Ljubljana Stock Exchanges
6 May 2014, Zagreb