Masi Agricola Company Presentation. Lugano - September 25 th, 2015

Transcription

1 Masi Agricola Company Presentation Lugano - September 25 th, 215

2 Speakers 2 FEDERICO GIROTTO Co-Chief Executive Officer Years at Masi: 1 Relevant Experiences:

3 3 1 Masi at a Glance

4 One of the Best Known Italian Premium Wine Brands Specialised in Amarone with a Story Dating Back to the XVIII Century 4 With approx. 6 mn of sales and a 12 mn bottle production, Masi Agricola S.p.A. ("Masi" or the "Company") is a leading player of the Italian wine market preeminently in terms of brand awareness and quality produced 1772 Boscaini family acquired a vineyard in the Valpolicella valley "Vaio dei Masi" and started wine production 1964 Sandro Boscaini joined the Company 1999 Internationalisation of production and marketing by MASI Tupungato in Argentina exporting Italian grapes and Venetian know-how 27 Partnership with Bossi Fedrigotti (third party production) XVIII century 5's 6's 7's 9's-Today New headquarters in Gargagnago and start of export in Europe and North America : Incorporation of Masi Agricola 1973: JV with Serego Alighieri started 1979: Creation of Gruppo Tecnico Masi 23 New distribution channels: MASI opens to Duty Free and Transportation 26 Alcedo SGR investment in MASI (15% current stake in two steps investment, in 26 and in 211) 213 Acquisition of Canova S.r.l. including 33 ha vineyards Business Model Strongly leveraging on Masi brand awareness Focus on Venetian terroirs and old traditional production techniques Great attention to quality and R&D Brand Portfolio

5 5 Shareholders and Governance Post-IPO Board of Directors is composed by 9 members of which: 6 expression of Boscaini Family 1 new member (Federico Girotto) 2 independent (Mr Fontana and Mr Bignami, of which 1 designated by Alcedo)

6 6 2 Focus on Company Products and Brand

7 Balanced Portfolio of Products Across Different Segments 7 Overview Price (1) Product Bottles (# Brands mn, 214) % Revenues % Appaxxim. % Venetian Terroir Top Wines > (2).8 23.% 99% 1% Premium Wines % 96% 91.5% Classic Wines % % 1% Other Products n.a. n.a. n.a. 1.7% n.a. n.a. Source: Company Information (1) Suggested retail price in Italy including VAT (2) Including "Vecchie Annate" (i.e. selection of certain wines which have been aged more than usual)

8 Focus on Masi Brand Awareness 8 5 Amarone with top scores from prestigious institutes (1) Brand Awareness (2) : the Costasera Case Scores (Max: 1) 1 Rank Amarone Masi Costasera Quintarelli 3 Bertani 4 Tommasi Campolongo Mazzano Ris. Costasera Costasera Vaio Armaron Wine Spectator JamesSuckling Wine Enthusiast 5 Romano Dal Forno Search Rank on Wine Searcher as of Apr 24th 215 # Search rank among worldwide wines 293 Marketing, Advertising & Promotion 5, 5,9 6,9 7,1 7,1 8,4% 9,6% 1,5% 11,% 12,% BRAND COMMUNICATION COMPANY EVENTS Vineyards sightseeing Events for experts and enthusiasts Communication & Marketing Costs (EUR mn) Communication & Marketing Costs as a % of Revenues INTERNATIONAL FAIRS Source: Company Information (1) Different reference dates, from March 212 to May 215 (2) Search Rank on Wine Searcher as of April 24 th, 215

9 Venetian Production Techniques and Terroirs 9 Appaxximento Technique Venetian Terroirs Others 6% Others 31% Appaxximento 69% Venetian Terroir 94% Wine Revenues FY 214 Wine Revenues FY 214 Masi expertise in this method is recognized worldwide and is certified with the APPAXXIMENTO trademark, which underlines «modern wines with an ancient heart» Venetian Vineyards FOCUS ON THE RECOVERY, PROMOTION AND MODERNISATION OF THE VENETIAN TRADITIONAL TECHNIQUES AND GRAPE VARIETIES Verona Hills Valpolicella Hills Costasera Valpolicella Hills Bonacosta

10 Ambassador of the Venetian Values 1 Masi Brand Network Masi Prize and Fondazione Masi Italian Quality Wine Institute Amarone Families Association Eleven names who founded the organisation are: Allegrini, Begali, Brigaldara, Masi Agricola, Musella, Speri, Tedeschi, Tenuta Sant'Antonio, Tommasi, Venturini and Zenato Food & Beverage Brands Fondazione Altagamma

11 11 3 Wine Market Overview

12 Italy: a Fragmented Market 12 Market Size (1) : 12,35 mn Total Wine Producers (2) : 62,525 Total Wine Industrial Companies (3) : 1,87 < 2 hectares per Grape Growers (4) 7 Employees per Wine Industrial Company Source: ISMEA (1) Total revenues at production level; (2) Companies involved in the transformation of grapes and production of wine as per Agea 211; (3) Industrialised players as per ISTAT 211; (4) Agricultural companies involved in grape growing activities as per "Censimento Agricoltura" 21;

13 13 4 Focus on Company Value Chain

14 High Vertical Integration and Full Control of the Value Chain R&D Procurement Production and Logistics Selling and Distribution Marketing and Communication MASI Technical Group Raw materials supply Grapes picking and conferment Multi-firm agents on the Italian market Above the line communication Appaxximento technique Managed lands Crushing and destemming Winemaking Foreign distribution partners Events and fairs Websites / social network Aging Bottling and packing Storage The Masi Foundation Associations Picking Shipping to the end customer in outsourcing

15 Innovative Thanks to Continuous R&D 15 MASI Technical Group Experimental Vineyard and Cellar NASA Founded in 1979, comprising a pool of 13 internal and external experts in the fields of oenology, agronomy, microbiology, chemical and marketing Group focus is on the modernization and promotion of the Venetian traditional grapes and techniques Experimental vineyard dedicated to modernisation and revival of the old-tradition Venetian grapes and wines Experimental cellar dedicated to the use of modern technologies in winemaking Natural Appassimento Super Assisted is an innovative natural "Appassimento" system developed by Masi at Garganago Through the control of parameters such as temperature, humidity, ventilation and grapes weight loss, the system ensures ideal "Appassimento" conditions for the grapes within the drying loft

16 Flexible and Efficient Procurement Flexible sourcing model with a portion of wine produced from own grapes and a higher portion from grape / wine sourced by third parties allowing to obtain a greater flexibility while maintaining margins and control over product quality Control on third party products ensured by a constant monitoring of the strict production standards agreed with the Company long-standing loyal suppliers The recent Lazise acquisition together with Valgatara expansion have further improved Masi procurement model 16 Leveraging on 381 hectares of owned / managed vineyards Valpolicella and Verona areas Property vineyards: 314 hectares 51 hectares ca. 2 hectares in Triveneto Friuli 93 hectares Argentina Toscana 1 hectares 7 hectares 7 hectares in Tuscany 1 hectares in Argentina Third party vineyards managed (1) by Masi: 67 hectares Trentino (Conti Bossi Fedrigotti) Valpolicella (Conte S. Alighieri & others) Valpolicella (Boscaini Family) 31 hectares 31 hectares 5 hectares (1) Managed or procuring grapes on an exclusive basis for a long-term

17 17 Production Platform: Control of All Phases and Site Specialisation Rovereto Lazise Stra' del Milione Valgatara Valgatara site Gargagnago, Negrar Cinigiano Lazise site Argentina Tupungato Site Tupungato site

18 Lean Commercial Division Able to Reach More than 9 Countries 18 MASI COMMERCIAL DIVISION A. Boscaini Back Office (1) Europe + Duty Free Area Manager (P. Torresani) Americas + Asia Area Manager (L. Desroches) 3 Zone Manager (1) 6 Zone Manager (1) North West (1) Italy Area Manager (S. Milani) South and Islands (1) North East and Central (1) Distribution Partners Agents MASI REVENUES BY GEOGRAPHY 1% 8% 6% 2,2% 2,3% 2,7% 2,3% 2,% 9,3% 9,5% 9,1% 9,% 1,4% 43,7% 49,% 48,5% 5,4% 5,5% 4% 2% 44,9% 39,2% 39,8% 38,2% 37,2% % Americas Rest of Europe Italy RoW (1) Including consultants

19 19 5 Key Financials

20 2 12, 1, 8, 6, 4, 2, 4, 35, 3, 25, 2, 15, 1, 5, 2, 15, Summary of P&L Revenues ( k) 65,667 59,547 61,755 64,554 59, EBITDA ( k) and Margin 21,64 21,62 19,27 18,67 17,962 34% 32% 33% 3% 29% Net Income ( k) and Margin 1, 8,996 9,34 1,75 7,826 7,634 15% 15% 15% 5, 12% 13% , 5, 9, 8, 7, 6, 5, 4, 3, 2, 1, 1 4, 35, 3, 25, 2, 15, 1, (+5.3% vs 1Q214) 12,764 13, % 1Q14 1Q15 65.% 55.% 4,84 45.% 2, % 3% 25.% 21% 15.% 1 2 n.a. n.a. 1Q14 1Q15 Revenues FY 214 Breakdown by Geography Rest of World Italy 2.% 1.4% Europe 5.5% Breakdown by Product Classic Wines 26.8% Other 1.7% Premium Wines 48.5% America 37.2% Top Wines 23.% Financials reported according to Italian GAAP

21 21 Summary of Balance Sheet and Cash flow Cash Flow ( k) 2, 1, 9,895 12,513 8,265 4, , 1, -1, -2, (2,977) Cash Flow (a) (a) Calculated as: cash flow from investing activities + cash flow from operating activities Trade Working Capital ( k) Cash Flow From Investing Activities ( k) 32,43 35,745 39,516 3,1 28,399 14,631 14,23 13,796 14,853 14,618-5, (2,372) (2,179) (2,299) 22,8 24,463 27,749 3,19 32,88 (4,32) -1, (7,553) (1,682) (9,95) (8,297) (7,88) (11,59) -15, Inventories Trade Receivables Trade Payables Cash Flow from Investing Activities 2,762 16,358 15,526 1.x.9x NFP ( k) and NFP / EBITDA 22,249 18, x 1.x.7x 1,.5x 1.5x 2, 1.x 14, x 1Q15 Financials reported according to Italian GAAP

22 22 6 Strategy

23 23 Strategic pillars and use of proceeds 1 FOCUS ON CORE BUSINESS Organic growth in most relevant markets More balanced sourcing system also through acquisitions of new vineyards 2 EXPAND THE PRODUCT PORTFOLIO Widening of the product range through M&A activity Development of new products with Appaxximento technique 3 BRAND EXPERIENCE AND CUSTOMER PROXIMITY Widening Masi wine bar network Completion of the Masi wine shop of Lazise Development of the Visitor Centre in the "land of Amarone" in the medium term

24 Key Investment Highlights at a Glance 24 1 QUALITY WINE PRODUCER WITH INTERNATIONALLY RECOGNISED BRAND AWARENESS BASED ON VENETIAN TERROIR AND TRADITIONAL VENETIAN TECHNIQUES (APPAXXIMENTO) 2 SUCCESSFULL TRACK RECORD IN INTEGRATING NEW BRANDS (SEREGO ALIGHIERI AND BOSSI FEDRIGOTTI) AND IN EXPANDING THE PRODUCTION FOOTPRINT (ARGENTINA, LAZISE) 3 ATTRACTIVE MARKET POSITIONING WITH MORE THAN 9% OF SALES REALISED ABROAD WITH OPPORTUNITIES IN RELEVANT MARKETS 4 STRONG CASH FLOW GENERATION THANKS TO A GREAT PROFITABILITY Vini Moderni dal Cuore Antico

25 25 6 Appendix

26 Consolidated Income Statement 26 ( k) Summary Consolidated Income Statement Data Year ended December, Revenues from sales and services 59,547 61,755 65,667 64,554 59,721 Net raw materials and supply costs 2,857 2,992 23,67 23,955 18,188 Services and use of third party assets costs 13,812 15,538 16,958 17,5 17,681 Personnel costs 5,262 5,693 5,96 6,54 6,785 Other operating costs (Other revenue) (517) (1,866) (2,865) (2,164) (1,339) EBITDA 19,27 21,64 21,62 18,67 17,961 EBITDA Margin 32.3% 34.1% 32.9% 28.9% 3.1% Depreciation and amortization 4,424 4,287 4,576 4,551 4,348 EBIT 14,783 16,777 17,26 14,119 13,613 EBIT Margin 24.8% 27.2% 25.9% 21.9% 22.8% Total net financial costs (677) (1,78) (1,316) (1,598) (1,49) Total non-recurring income and expenses (2) (218) EBT 14,312 15,82 15,811 12,51 12,346 Income taxes (5,34) (5,74) (5,721) (4,668) (4,714) Net Income 8,972 9,342 1,9 7,833 7,632 Attributable to minority interests 24 (2) (15) (7) 2 Attributable to the Company 8,996 9,34 1,75 7,826 7,634 Net Income attributable to the Company Margin 15.% 15.1% 15.3% 12.1% 12.8% Financials reported according to Italian GAAP

27 27 Consolidated Balance Sheet ( k) Year ended December, 31 Summary Consolidated Balance Sheet Data Intangible Assets 23,756 22,37 2,152 18,494 16,964 Tangible Assets 32,971 32,918 32,961 42,133 42,99 Financial Assets 1, Fixed Assets 58,262 55,133 53,291 6,765 6,766 Inventories 22,8 24,463 27,749 3,19 32,88 Trade receivables 14,853 14,618 14,631 14,23 13,796 Tax receivables 1,6 1,358 1,988 3,366 3,34 Deferred tax assets Other receivables Cash and cash equivalents 4,682 9,783 11,556 6,5 4,288 Prepayments and accrued income 738 1,78 1,127 1, Current Assets 44,276 51,64 57,452 55,36 55,396 TOTAL ASSETS 12,538 16,737 11, ,81 116,162 Share capital 33,28 37,258 37,258 37,258 37,258 Reserves 25,274 14,186 21,797 29,715 36,25 Retained earnings 8,996 9,34 1,75 7,826 7,634 Group Shareholders' Equity 67,298 6,784 69,13 74,799 8,917 Minority interests Total Shareholders' Equity 67,3 6,826 69,188 74,863 8,979 Post-employment and other employee benefits Deffared tax liabilities 1,257 1, Provisions for risk and charges 1, ,136 Liabilities due to banks and other lenders 21,4 3,545 27,82 28,254 22,93 Trade paybables 7,553 1,682 9,95 8,297 7,88 Tax payables 2, Payables due to social security insitutions Other liabilities ,19 Accrued expenses and deferred income TOTAL LIABILITIES 35,238 45,911 41,555 4,938 35,183 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 12,538 16,737 11, ,81 116,162 Financials reported according to Italian GAAP

28 Consolidated Cash Flow ( k) Year ended December, 31 Summary Consolidated Cash Flow Data Cash flow s from operating activities 12,267 14,692 1,564 8,532 8,917 Cash flow s from investing activities (2,372) (2,179) (2,299) (11,59) (4,32) Cash flow s from financing activities (9,6) (7,412) (6,492) (2,574) (6,62) Total net cash flow s 889 5,11 1,773 (5,551) (1,717) Cash and cash equivalents (net financial assets) at the beginning of the period Cash and cash equivalents (net financial assets) at the end of period 3,793 4,682 9,783 11,556 6,5 4,682 9,783 11,556 6,5 4,288 Financials reported according to Italian GAAP