ATLANTIC GRUPA Financial results in 2013 (audited) Business growth - - PowerPoint PPT Presentation
ATLANTIC GRUPA Financial results in 2013 (audited) Business growth in line with guidance Zagreb 24th February 2014 CONTENT KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014
Zagreb – 24th February 2014
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CONTENT KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014 APPENDIX
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Risk management Performance in line with guidance in unfavourable macroeconomic situation Takeover of distribution of Unilever portfolio in Croatia and Slovenia Preparation for the new energy bars factory in Nova Gradiška Continued integration of information technologies Own and principal brands and opening of new pharma locations
KEY BUSINESS DEVELOPMENTS IN 2013
Substantial deleveraging and growth of cash flow from operating activities
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KEY BUSINESS DEVELOPMENTS (I): OWN AND PRINCIPAL BRANDS
UNILEVER Globally famous brands Knorr, Hellman's, Axe, Rexona, Brut, Signal, Coccolino, Domestos, Cif and many others Distribution start: beginning of 2014 Distribution in Croatia and Slovenia Annual turnover: HRK 240 million (51% Croatia, 49% Slovenia) Confirms status of the leading distributor in the region SDU CROATIA At the beginning of 2014 taking over the distribution of Ilirija brands Portfolio: cosmetic products, household products and a product line for the footwear and leather products care (Subrina, Green line, Čisto, Biokill…) SDU SLOVENIA, SERBIA, MACEDONIA Slovenia: distribution of principals Stock and BIC Serbia: distribution of principals Klas, Schwartau and brand Gorki list Macedonia: distribution of principal Bakers
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SBU COFFEE Assortment extension of Grand kafa (B&H, Serbia and Macedonia) in instant category Assortment extension of Barcaffe in B&H in Turkish coffee category SBU BEVERAGES Launch of Cockta Chinotto on regional markets (retail and HoReCa) Cedevite GO! Kids on regional markets New taste Cedevita elder-lemon in HoReCa (Croatia, Slovenia, B&H) New packaging design of Donat Mg SBU SAVOURY SPREADS Argeta entered Spain Growth on all international markets SBU SNACKS 16 new products, 9 of which are fully new recipes New sub-brand Flipster in the pellet product category SBU PHARMA AND PERSONAL CARE 9 new products of Dietpharm brand 6 new products in the Neva assortments (Melem Pharma Akut, ROSAL Lip Balm (INK)REDIBLE COLORS, etc.) 3 new pharmacies and 6 new specialised stores
KEY BUSINESS DEVELOPMENTS (II): OWN AND PRINCIPAL BRANDS
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Research of the Valicon agency: Argeta, Cedevita, Cockta and Smoki are among top 10 brands in the region Argeta is in the 4th place Cedevita improved by three places and is in the 5th place Cockta is in the 6th place Smoki improved by eight positions and is in the 9th place The strength of brands was calculated on the basis of their recognisability, experience and use. Smoki became the number one brand in the flips category in the Croatian market
KEY BUSINESS DEVELOPMENTS (III): OWN AND PRINCIPAL BRANDS
1 Milka 2 Coca-Cola 3 Vegeta 4 Argeta 5 Cedevita 6 Cockta 7 Orbit 8 Nivea Creme 9 Smoki 10 Fructal
Source: AC Nielsen
Market share Flips (Smoki) Savoury spreads (Argeta) Chocolate Beverages (Cockta)
Value share
2013 2012 2013 2012 2013 2012 2013 2012 Croatia 11.9% 8.9% Serbia 56.7% 55.0% 8.5% 7.9% Slovenia 42.7% 39.5% 41.4% 40.8% B&H 37.7% 32.0% 11.6% 10.7% Macedonia 10.2% 9.8% Austria 26.4% 25.6%
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KEY BUSINESS DEVELOPMENT (IV): OTHER
NEW ENERGY BARS FACTORY IN NOVA GRADIŠKA Transferring the production from the contractual producer to own plant Project with the total value of HRK 120 million Beginning of the factory construction: April 2014 First products from the new lines in the market: 1Q 2015 CONTINUED INTEGRATION OF INFORMATION TECHNOLOGIES Project of implementing a regional data centre in Zagreb was finalised - consolidation of all server and network infrastructure required for the operation of IT services for the territories of Croatia and Slovenia New system for vehicle surveillance, fleet management and optimisation of delivery routes in logistics for the distribution company Atlantic Trade Zagreb - the same solution to be implemented in the distribution company Atlantic Brands in Serbia
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NEW ORGANIZATION STRUCTURE IN 2014
Taking into account the company’s significant step towards the CIS markets in accordance with the strategic focus
the internationalisation of operations, the company nominated the CIS market its new SDU. Taking into account the importance and the size of the Serbian market (the second largest individual market in the Atlantic Grupa’s portfolio), management decided to promote the Serbian market into a SDU.
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CONTENT KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014 APPENDIX
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PERFORMANCE ON CROATIAN CAPITAL MARKET
34% 7%
18% 48%
3% 0%
5% 16%
2%
10%
0% 40% 2013 2012 2011 2010 2009 2008
Performance on capital market
ATGR-R-A Crobex Crobex10
The Atlantic Grupa’s share significantly outperformed the growth of Crobex and Crobex10 and ended 2013 at HRK 718.00, which is a 34.0% growth within a year. With the average market capitalisation
HRK 2,178.7 million, Atlantic Grupa takes the fifth place among the components of the CROBEX10 stock index. On 21/02/2014 closing price of 780.01 HRK, up +8.6% in 2014.
* Closing price multiplied by the total number of shares ** Normalized in 2012
Valuation 2013 2012 Last price in reporting period 718.0 536.0 Market capitalization* (in HRK millions) 2,394.0 1,787.2 Average daily turnover (in HRK thousands) 237.8 201.0 EV (in HRK millions) 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** (in HRK) 58.5 30.5 P/E** 12.3 17.6
Tedeschi Emil 50.2% EBRD 8.5% German development bank - DEG 8.5% Tedeschi Fiorio Lada 5.8% Management 1.2% Other 7.7% Raiffeisen OPF 53.4% AZ OPF 23.5% PBZ CO OPF 7.5% Raiffeisen VPF 7.9% Erste Plavi OPF 6.3% Other pension funds 1.4% Pension funds 18.2%
Ownership structure on 31/12/2013
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CONTENT
KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014 APPENDIX
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RESULTS IN LINE WITH GUIDANCE
100 200 300 400 500 600 700
EBITDA EBIT
591 425 585 420 559 399
2013A 2013E 2012A
2012 normalized
(in HRKm)
2013A/2013E: 98.5 2013A/2012A: 102.5 2013A/2013E: 101.0 2013A/2012A: 105.8 2013A/2013E: 101.1 2013A/2012A: 106.4
4,400 4,600 4,800 5,000 5,200
Sales
5,051 5,130 4,930
2013A 2013E 2012A
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SALES BY STRATEGIC BUSINESS UNITS AND STRATEGIC DISTRIBUTION UNITS
(HRK 000) 2013 2012 2013/2012 SBU Beverages 651,991 671,934 (3.0%) SBU Coffee 1,087,157 1,090,672 (0.3%) SBU (Sweet and Salted) Snacks 617,494 600,473 2.8% SBU Savoury Spreads 458,843 463,664 (1.0%) SBU Sports and Functional Food 780,992 679,971 14.9% SBU Pharma and Personal Care 505,954 481,328 5.1% SDU Croatia 806,721 876,829 (8.0%) SDU Slovenia, Serbia, Macedonia 1,938,605 1,930,387 0.4% Other segments* 423,659 373,152 13.5% Reconciliation** (2,220,129) (2,237,969) (0.8%) Sales 5,051,287 4,930,441 2.5%
* 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. For the time being, SDU International Markets will not be separated, but its sales and profitability will be presented within SBU to which they relate. For the time being, the Russian market will include 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.
SBU Beverages: temporarily suspended distribution in Croatia in 1Q 2013 due to negotiations related to the implementation of new commercial terms and generally unfavourable developments in the beverages segment in the regional markets. SBU Coffee: decline due to Serbia (unfavourable market developments in the Turkish coffee category) largely annulled by Slovenia, B&H and Croatia. SBU Snacks: sales growth in Serbia, Macedonia and Croatia; strongest growth in flips, chocolate and biscuits’ categories. SBU Savoury Spreads: weak Argeta performance in B&H, Kosovo and Serbia. SBU Sports and Functional Food: strongest growth driven by private label and all own brands. SBU Pharma and personal care: growth of Multivita in Russia, Dietpharm and new pharma locations. SDU Croatia: (i) temporarily suspended distribution, (ii) lower sales in beverages segment, (iii) termination of the distribution of certain principal brands.
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SALES BY MARKETS AND SEGMENTS
* Macedonia, Montenegro, Kosovo; ** Germany, United Kingdom, Italy, Switzerland, Austria, Sweden, Spain
Croatia 24.8% Serbia 24.1% Slovenia 13.6% Bosnia and Herzegovina 7.2% Other regional markets* 6.3% Key European markets** 11.7% Russia and Commonwealth
States 5.9% Other markets 6.4%
2013
Croatia 26.6% Serbia 24.9% Slovenia 13.2% Bosnia and Herzegovina 7.6% Other regional markets* 6.4% Key European markets** 11.0% Russia and Commonwealth of Independent States 5.0% Other markets 5.3%
2012
Principal brands 15.0% Sports and Functional Food 15.5% Pharma & Personal care 9.7% Coffee 21.5% Sweet and salted snacks 12.2% Savoury spreads 9.1% Beverages 12.9% Baby food 4.2%
2013
Principal brands 15.9% Sports and Functional Food 13.8% Pharma & Personal care 9.5% Coffee 22.1% Sweet and salted snack 12.2% Savoury spreads 9.4% Beverages 13.6% Baby food 3.5%
2012
400.0 600.0 800.0 1,000.0 1,200.0 1,400.0 1,600.0
Croatia Serbia Slovenia Bosnia and Herzegovina Other regional markets* 1,254.1 1,215.2 689.3 364.2 317.1 1,313.3 1,226.8 648.7 377.0 316.9
(in HRKm)
2013 2012
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SALES PROFILE BY MARKETS (I)
Croatia: lower sales due to (i) temporarily suspended distribution in 1Q 2013 due to negotiations related to the implementation of new commercial terms, (ii) lower sales in beverages segment and (iii) termination of the one2play and Red Bull product ranges distribution. Serbia: poor result due to lower sales of the Turkish coffee category and redirecting marketing into price discounts. Slovenia: growth due to sales growth of categories: Turkish coffee, functional waters, savoury spreads, principal brands. Bosnia and Herzegovina: unfavourable macroeconomic situation resulting in lower consumption of premium products, including Argeta. Other regional markets* (Macedonia, Montenegro, Kosovo): at the previous year’s level with lower sales of the savoury spreads segment.
6.3%
0.0%
200.0 300.0 400.0 500.0 600.0 700.0 800.0
Key European markets* Russia and Commonwealth of Independent States Other markets
589.8 299.3 322.3 542.8 245.0 260.0
(in HRKm) 2013 2012
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SALES PROFILE BY MARKETS (II)
Key European markets* (Germany, the United Kingdom, Italy, Switzerland, Austria, Sweden, Spain): growth largely in the sports and functional food segment, but also the savoury spreads segment and the functional waters category. Russia and the Commonwealth of Independent States: driven by the double-digit growth in sales of the baby food segment with the Bebi brand and other assortment. Other markets: growth in sales driven by the growth in sales in the sports and functional food segment with the Multipower brand and private labels. 8.7% 22.2% 24.0%
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SALES PROFILE BY CATEGORIES
Own brands : 3.1% yoy growth due to: Baby food segment with the Bebi brand Sports and functional food segment with Multipower, Champ and Multaben brands Snacks segment with Smoki and Štark brands Pharma and personal care segment with Multivita and Dietpharm brands Functional waters category with the Donat Mg brand. Principal brands : 3.2% yoy lower result, following the suspended distribution in the first quarter due to negotiations related to the implementation of new commercial terms and conditions and the termination of the distribution of principal brands. Private labels : 10.0% yoy growth primarily related to the sports and functional food product range. Farmacia: 2.8% better yoy result As at 31 December 2013, Farmacia consisted of 48 pharmacies (3 new) and 19 specialised stores (6 new). Own brands 72.5% Principal brands 15.0% Private label 6.4% Farmacia 6.1% 2013 Own brands 72.0% Principal brands 15.9% Private label 6.0% Farmacia 6.1% 2012
350.0 370.0 390.0 410.0 430.0 450.0 EBIT Normalised EBIT 424.6 424.6 395.1 399.2 2013 2012 500.0 520.0 540.0 560.0 580.0 600.0 EBITDA Normalised EBITDA 590.8 590.8 575.1 558.6 2013 2012 (in HRKm)
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PROFITABILITY DYNAMICS IN 2013
Key highlights: Growth in earnings before interests, taxes and depreciation and amortization of 5.8% as a result of growth in sales and favourable movements in the prices of certain raw materials in the global commodity markets, primarily raw coffee, the effect of which was strengthened by the movements in the exchange rate EURUSD. Continuation
cost
and improvement in business processes. Key highlights: Growth in earnings before interests and taxes of 6.4% reflects growth in EBITDA. The growth was partially limited by impairment loss on intangible assets with indefinite useful lives in the amount of HRK 27.1 million. 2.7% 5.8% 6.4% 7.5%
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OPERATING COSTS STRUCTURE IN 2013
Cost of goods sold: change in the sales mix in 2013, where the share of private labels and own brands with outsourced production grows. Production material expenses: favourable movements in the prices of certain raw materials in the global commodity market, primarily the prices of raw coffee. However, some raw materials saw an increase in prices in 2013, such as powdered milk and tuna fish. Service costs: higher transportation, logistics and rent costs. Staff costs: increase in bonuses to employees. Marketing and promotion expenses: more aggressive marketing activities (primarily in the coffee segment). Other operating expenses: grew due to provisions for risks and potential costs related to the deteriorated macroeconomic situation in the region and certain legal disputes * Normalized
(in HRK millions) 2013 % of sales 2012 % of sales 2013/2012 Cost of goods sold 1,223.5 24.2% 1,155.4 23.4% 5.9% Change in inventory (4.6) (0.1%) (3.7) (0.1%) n/a Production materials 1,652.2 32.7% 1,750.1 35.5% (5.6%) Energy 63.7 1.3% 64.8 1.3% (1.8%) Services 324.9 6.4% 314.9 6.4% 3.2% Staff costs 672.1 13.3% 650.4 13.2% 3.3% Marketing and selling expenses 351.8 7.0% 320.8 6.5% 9.7% Other operating expenses 210.4 4.2% 182.5 3.7% 15.3% Other (gains)/losses, net 7.5 0.1% (9.1) (0.2%) n/a Depreciation and amortisation 166.2 3.3% 159.4 3.2% 4.2% Total operating expenses 4,667.6 92.4% 4,585.6 93.0% 1.8%
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OPERATING RESULT OF SBUs AND SDUs IN 2013
SBU Pharma and Personal Care: lower profitability of the pharmacy chain Farmacia due to higher rent and staff costs on the basis of newly opened pharmacy units and the lower profitability of the personal care and cosmetics segment due to higher raw materials prices and marketing investments. SDU Croatia: Despite the decline in sales, better gross profitability following the better product mix and lower service costs and staff costs. SDU Slovenia, Serbia, Macedonia: decrease in profitability in the markets of Serbia and Macedonia primarily due to a poorer gross profitability caused by the concentration of customers. The decline in these two markets was however partially neutralised by the growth in profitability of the Slovenian market, as a result of the increased sales and improved gross profitability.
*Normalized; Normalized profitability by segments was adjusted in 2012 in order to be comparable to the 2013 results
SBU Beverages: lower sales of the majority of categories and higher marketing investments. SBU Coffee: favourable movements in the raw coffee prices additionally strengthened by the movements in the exchange rate EURUSD. SBU Snacks: preparation for launching a new product Flipster (pellets) and the increase in staff costs due to adjustment with the inflation growth. SBU Savoury Spreads: mild growth despite the decrease in sales due to an improvement in the gross profit margin on a better product mix and marketing savings. SBU Sports and Functional Food: growth in sales with stable operating expenses. (in HRK millions) 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%
50 100 150 200 250
Net profit Normalized Net profit 199.0 199.0 66.1 112.5
2013 2013
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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. 201.0% 77.0%
* Normalized
(in HRK thousands) 2013 % of sales 2012* % of sales 2013/2012 EBIT 424,619 8.4% 399,229 8.1% 6.4% Interest expenses, net (159,265) (3.2%) (215,371) (4.4%) (26.1%) Net FX differences (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%
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FINANCIAL INDICATORS IN 2013
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 reserves 32.9% Long term borrowings 36.5% Short term borrowings 7.6% Bond 2.3% Trade and other payables 14.5% Other liabilities 6.2% Equity and liabilities structure as at 31/12/2013 (in HRK millions) 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 420.2 296.0
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CONTENT
KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014 APPENDIX
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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.
(in HRK millions) 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%)
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CONTENT
KEY DEVELOPMENTS IN 2013 PERFORMANCE ON CAPITAL MARKET IN 2013 FINANCIAL RESULTS IN 2013 GUIDANCE FOR 2014 APPENDIX
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CONSOLIDATED INCOME STATEMENT FOR 2013
(in HRK thousands) 2013 % of sales 2012 % of sales 2013/2012 Turnover 5,092,222 100.8% 5,005,484 101.5% 1.7% Sales revenues 5,051,287 100.0% 4,930,441 100.0% 2.5% Other revenues 40,935 0.8% 75,043 1.5% (45.5%) Operating expenses 4,501,445 89.1% 4,430,361 89.9% 1.6% Cost of merchandise sold 1,223,485 24.2% 1,155,448 23.4% 5.9% Change in inventories (4,636) (0.1%) (3,667) (0.1%) n/a Production material and energy 1,715,825 34.0% 1,814,941 36.8% (5.5%) Services 324,872 6.4% 316,018 6.4% 2.8% Staff costs 672,118 13.3% 653,464 13.3% 2.9% Marketing and selling expenses 351,820 7.0% 320,754 6.5% 9.7% Other operating expenses 210,423 4.2% 182,508 3.7% 15.3% Other – net 7,538 0.1% (9,105) (0.2%) n/a EBITDA 590,777 11.7% 575,123 11.7% 2.7% Amortization and depreciation 166,158 3.3% 180,065 3.7% (7.7%) EBIT 424,619 8.4% 395,058 8.0% 7.5% Financial income 5 0.0% 5 0.0% (0.1%) Financial expenses (159,265) (3.2%) (257,546) (5.2%) (38.2%) Net FX differences (12,205) (0.2%) (63,940) (1.3%) (80.9%) EBT 253,153 5.0% 73,577 1.5% 244.1% Current tax 42,737 0.8% 25,975 0.5% 64.5% Deferred tax 11,422 0.2% (18,511) (0.4%) n/p Net income 198,994 3.9% 66,112 1.3% 201.0% Minority interest 4,122 0.1% 10,882 0.2% (62.1%) Net income II 194,872 3.9% 55,230 1.1% 252.8%
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CONSOLIDATED NORMALIZED INCOME STATEMENT FOR 2013
(in HRK thousands) 2013 % of sales 2012 % of sales 2013/2012 Turnover 5,092,222 100.8% 4,984,810 101.1% 2.2% Sales revenues 5,051,287 100.0% 4,930,441 100.0% 2.5% Other revenues 40,935 0.8% 54,369 1.1% (24.7%) Operating expenses 4,501,445 89.1% 4,426,190 89.8% 1.7% Cost of merchandise sold 1,223,485 24.2% 1,155,448 23.4% 5.9% Change in inventories (4,636) (0.1%) (3,667) (0.1%) n/a Production material and energy 1,715,825 34.0% 1,814,941 36.8% (5.5%) Services 324,872 6.4% 314,942 6.4% 3.2% Staff costs 672,118 13.3% 650,369 13.2% 3.3% Marketing and selling expenses 351,820 7.0% 320,754 6.5% 9.7% Other operating expenses 210,423 4.2% 182,508 3.7% 15.3% Other – net 7,538 0.1% (9,105) (0.2%) n/a EBITDA 590,777 11.7% 558,620 11.3% 5.8% Amortization and depreciation 166,158 3.3% 159,392 3.2% 4.2% EBIT 424,619 8.4% 399,229 8.1% 6.4% Financial income 5 0.0% 5 0.0% (0.1%) Financial expenses (159,265) (3.2%) (215,371) (4.4%) (26.1%) Net FX differences (12,205) (0.2%) (63,940) (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/p 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%
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CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2013
(in HRK thousands) 31 December 2013 % of total assets 31 December 2012 % of total assets Property, plant and equipment 1,060,847 20.9% 1,093,108 21.2% Investment property 1,672 0.0% 1,707 0.0% Intangible assets 1,851,023 36.4% 1,870,965 36.3% Available-for-sale financial assets 1,072 0.0% 1,300 0.0% Trade and other receivables 9,054 0.2% 9,584 0.2% Deferred tax assets 47,912 0.9% 72,182 1.4% Non-current assets 2,971,580 58.5% 3,048,846 59.2% Inventories 537,232 10.6% 543,317 10.6% Trade and other receivables 1,126,410 22.2% 1,148,770 22.3% Non-current assets held for sale 99,133 2.0% 113,868 2.2% Prepaid income tax 22,820 0.4% 23,703 0.5% Deposits given 251 0.0% 20,142 0.4% Cash and cash equivalents 325,334 6.4% 250,865 4.9% Current assets 2,111,180 41.5% 2,100,665 40.8% Total assets 5,082,760 100.0% 5,149,511 100.0% Capital and reserves attributable to owners of the Company 1,623,203 31.9% 1,414,230 27.5% Non-controlling interest 51,292 1.0% 47,136 0.9% Borrowings 1,968,950 38.7% 2,198,901 42.7% Deferred tax liabilities 181,378 3.6% 186,955 3.6% Derivative financial instruments 9,733 0.2% 50,224 1.0% Other non-current liabilities 143 0.0% 191 0.0% Provisions 59,723 1.2% 56,477 1.1% Non-current liabilities 2,219,927 43.7% 2,492,748 48.4% Trade and other payables 736,172 14.5% 793,596 15.4% Borrowings 387,288 7.6% 354,101 6.9% Current income tax liabilities 16,213 0.3% 3,575 0.1% Derivative financial instruments 18,950 0.4% 20,911 0.4% Provisions 29,715 0.6% 23,214 0.5% Current liabilities 1,188,338 23.4% 1,195,397 23.2% Total liabilities 3,408,265 67.1% 3,688,145 71.6% Total equity and liabilities 5,082,760 100.0% 5,149,511 100.0%
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CONSOLIDATED CASH FLOW STATEMENT FOR 2013
(in HRK thousands) Jan - Dec 2013 Jan - Dec 2012 Cash flows from operating activities Net cash flow from operating activities before interest and income tax paid 598,423 554,686 Interest paid (146,761) (219,779) Income tax paid (31,417) (38,950) Net cash flow from operating activities 420,245 295,957 Cash flow from investing activities Purchase of tangible and intangible assets (99,994) (78,811) Proceeds from sale of property, plant and equipment 21,360 20,071 Advance for acquisition of subsidiary (6,775)
(58,005) (21,000) Proceeds from sale of assets available for sale 58,048 21,043 Loans and deposits given – net 18,833 20,998 Interest received 8,189 9,741 Net cash flow used in investing activities (58,344) (27,958) Cash flow from financing activities Purchase of treasury shares (9,063) (5,393) Proceeds from borrowings, net of fees paid 85,111 1,919,805 Repayment of borrowings (334,591) (2,127,499) Dividend paid to non-controlling interests (879) Withholding tax paid on dividend within the Group (1,098) Acquisition of non-controlling interest (40,536) Dividend paid to Company shareholders (30,008)
(288,551) (255,600) Net increase in cash and cash equivalents 73,350 12,399 Exchange gains/(losses) on cash and cash equivalents 1,119 (9,130) Cash and cash equivalents at beginning of period 250,865 247,596 Cash and cash equivalents at end of period 325,334 250,865