“KONTI” GROUP

“KONTI” GROUP
Key Investment Highlights
Attractive market
Leading Ukrainian confectionery manufacture
Impressive growth story
Strong brand portfolio
Modern production facilities
Strong distribution and marketing expertise
Excellent credit history
Experienced management team
2
Ukrainian market overview
•
•
Confectionery market, USD bn
The USD value of Ukrainian confectionery market in 2010 was
increased by 24% compared to previous year and reached
USD 2,12 billion.
The Ukrainian confectionery market is relatively consolidated.
TOP10 confectionery manufactures held more then 60% of the
market in 2010
2,50
2,24
2,00
•
Per capita consumption of confectionaries in Ukraine is about
15kg per year, which is still below European (22-25 kg in EU)
Ukrainian confectionery demand is almost fully satisfied by local
producers
1,69
1,67
1,43
1,50
•
2,12
1,94
1,17
1,00
0,83
0,55
0,63
0,50
0,00
2001
Production share of main market players, 2010
Other; 30,8%
Roshen; 25,0%
2003
2004
2005
2006
2007
2008
2009
2010
Output structure, 2010
Dragee
0,7%
Fruit jelly
1,7%
Other
15,9%
Sweets
34,2%
Chocolate
3,9%
Kraft Foods; 1,7%
Svitoch; 1,7%
KONTI; 15,5%
Poltava Konditer;
5,1%
2002
AVK; 11,6%
Zhytomyr sweets;
2,8%
Biscuit Chocolate;
5,8%
Waf er products
6,1%
Caramel
sweets
9,8%
Biscuit
27,7%
3
Russian market overview
•
•
•
•
•
•
The confectionery market in Russia is one of the biggest in the
world.
The USD value of Russian confectionery market in 2010 was
increased by 10% compared to previous year and reached USD
6,7 billion.
The consumption of confectionaries in Russia is around 16kg per
capita per year
In 2010 the production of confectionery items decreased by 4%.
TOP 10 producers held about 40% of the market.
The chocolate segment has the largest market share in terms of
value. Bakery products segment has the largest market share in
natural equivalent.
Among TOP 5 producers 2 are Russian-owned and 3 are global
players.
Confectionery market, USD bn
8,0
7,3
7,0
6,1
5,6
6,0
5,0
4,5
4,9
3,9
4,0
3,0
6,7
6,6
3,3
2,5
2,0
1,0
0,0
2001
2002
2003
Production share of main market players, 2010
United
Confectioners
13,7%
Roshen 5,5%
Vostok KD 5,2%
Other 50,5%
2004
2005
2006
2007
2008
2009
2010
Output structure, 2010
Other
26,1%
Sweets
23,6%
Dragee
0,7%
Mars 4,8%
Slavyanka 4,6%
Fruit jelly
3,3%
Biscuit
18,2%
Kraft Foods 4,4%
Nestle 3,7%
KONTI 2,8%
United Bakers
2,1%
Orkla 2,8%
Caramel
sweets
8,2%
Waf er products
8,5%
Chocolate
11,3%
4
History
 Konstantinovka
Confectionary
Factory (Ukraine)
became a part of
the Group
1997
1999
 Donetsk
Confectionary Factory
(Ukraine) was added
to the Group
2001
 Head-office
Construction,
Donetsk (Ukraine)
 Construction of
logistics center in
Makeevka (Ukraine)
2003 2004
2007
 Construction of
packaging factory
for confectionery
products in
Makeevka
(Ukraine)
2008
2009
 KONTI Group intends to
invest around USD
152mln by 2014 in New
factory in Kursk.
2010
After 2010
 ISO 9001:2000
implementation
 Gorlovka
Confectionary
Factory (Ukraine)
was acquired
 Kursk Confectionery
Factory (Russia) was
acquired
 Construction of
logistics center in
Kursk (Russia)
Jelly-Sweets production line
installation in the new
production complex in Kursk
(Russia).
5
Company overview
•
•
•
•
•
•
KONTI is the second largest and the fastest growing
confectionary company in Ukraine, with 12% Ukrainian market
share and 4% Russian market share in terms of value in 2010
The Company operates the most technologically advanced
production facilities in Ukraine
Three factories in Ukraine and two factories in Russia are part of
KONTI Group. Since Russian factory acquisition in 2004 its
output was increased by six times. In 2010 New Factory was
build in Kursk.
KONTI is producing a variety of confectionery products, including
wafers, chocolates, deserts, sponge cakes, biscuits and caramel.
During 2010, KONTI increased its output by 8.4% to
238 ths. tones
Strong distribution network is one of major competitive
advantage
2010 consolidated non-audited net sales rose by 29% to
UAH 4.2 billion according.
Production output, thousand. tones
300
238
250
205
200
219
220
2008
2009
184
151
150
126
84
100
54
67
50
0
2001
2002
2003
Source: company data
2004
2005
2006
2007
2010
Output structure, 2010
Production Facilities
Kursk Factory
Combined
Wafers 4,3%
confectionery
dessert 5,1%
New Factory in
Kursk
Dragee 0,8%
Konstantinovka
Factory
Caramel sweets
12,7%
Sponge cake
2,1%
Chocolate sweets
36,2%
Fruit jelly 0,3%
Gorlivka Factory
New year
presents 2,7%
Donetsk Factory
Packaging factory
(Makeyevka)
Biscuit 32,7%
Chocolate 3,2%
6
Production Facilities and Objects
in Ukraine
Workshop
Acquisition/building
date
Investments to 10
Investments ‘11-14
Products
Konstantinovka
1997
USD 7.5 million
1999
USD 2 million
2001
USD 164 million
2007
USD 10 million
2007
USD 17 million
2009
USD 4 million
Horlivka
Donetsk
Office
Logistic centre
Packaging factory
Total:
USD 204.5 million
7
Production Facilities and Objects
in Russia
Workshop
Acquisition/building
date
Investments to 10
Investments ‘11-14
Products
Kursk
2004
USD 17.5 million
2008
USD 20.5 million
2008-2014
USD 49 million
Kursk New Factory
Logistic centre
Factory
Total:
USD 87 million
USD 152 million
In 2010 the installation process of first Jelly-Sweets
production line in the territory of New Kursk
production site was completed.
Additionally eight new advanced production lines are
to be installed in the period from 2011 to 2014.
USD 152 million
8
Brand Portfolio
The Company focuses on premium products with keeping all traditional confectionery items in its portfolio.
Chocolate products «AMOUR»
Confectionery dessert
«Bonjour»
Chocolate products
Chocolate candies
Wafer products
Sandwich bisuits
Caramel sweets
Sponge cake
Biscuits
Dragee
9
Mission and Strategic goals
Mission
Long-term development with creating unique high-quality and healthy products. Be international company
with stable increase of enterprise value, operation profitability and strong brand portfolio. To create
conditions for personal, professional and financial growth of employees.
Strategic Goals
Increase market
share in Ukraine to
15%
Increase market
share in Russia to
7.5%
Increase output of
premium and highyield brands
Reach USD 1 billion
yearly net sales
10
Financial results
4 500,0
Net Sales
4 191
Sales, UAH mln
4 000,0
growth, %
50%
3 253
1142
48%
1 000,0
41%
3 000,0
836
40%
31%
2 500,0
2 559
30%
1 386
1 500,0
987
50%
44%
40%
33%
29%
1 816
60%
37%
800,0
27%
34%
2 000,0
1 000,0
Gros profit, UAH mln
Gros margin, %
53%
52%
51%
1 200,0
49%
3 500,0
Gross profit
60%
622
600,0
20%
400,0
10%
200,0
30%
481
20%
312
930
692
173
10%
500,0
0,0
2004
2005
EBITDA
600,0
2006
2007
2008
2009
EBITDA, UAH mln
550
EBITDA margin, %
17%
500,0
12%
300,0
10%
11%
114
200,0
14%
150,0
10%
8%
187
200,0
4%
2%
0%
2005
2006
2007
2008
2009
2010
2007
2008
NI, UAH mln
2009
NI margin, %
2010
50,0
4%
195
40
208
5%
5%
2%
2%
45
10%
6%
100,0
0%
42
26
-5%
0,0
-50,0
0,0
2006
7%
6%
133
82
2004
250,0
16%
12%
10%
2005
Net Income
18%
14%
356
12%
0%
2004
2010
445
400,0
100,0
0,0
0%
2004
2005
2006
2007
2008
-7%
2009
2010
-10%
Negative Net Income in 2008 was caused by
-100,0UAH 433 082 thousand loss on USD and EURO
-15%
loans due to Ukrainian currency devaluation in
-150,0Q4 2008. As from 01.09.09 all KONTI Group USD
and EURO loans are converted into UAH and
-200,0
11
-191
-20%