Presentation for press and investors

Transcription

1 Presentation for press and investors Financial results for Q 2008 May 2008

2 Agenda I. General information about PKM Duda S.A. II. Financial results for 2008 Appendices: Boards of PKM Duda S.A. Financial data Contact 2

3 3 Part 1 General information about PKM Duda S.A.

4 PKM Duda track record Specialization in slaughter and meat dissection Acquisition of companies operating in production, agricultural and service sector Development of Polski Koncern Mięsny (Polish Meat Company) with high profile in distribution sector 1990 XII 2002 X 2003 X Foundation of a Company IPO PLN 20m (1m shares) Secondary offering PLN 43m (1m shares) Secondary offering in order to finance the acquisition of Makton Further acquisitions in distribution sector - Overseas expansion - Asian contracts -Game meat - Announcement of new share issue - Further acquisitions - Biofuel - Acquisition of Stół Polski - Share issue PLN 144.6m - Acquisitions on the Ukrainian market -Leasehold of land in Ukraine -Acquisition of New Logistic 4

5 PKM Duda one of the biggest and most attractive meat capital groups in Poland Attractive positioning No. 3 on Polish meat market, however: Specialization in slaughter No. 1 Strengthening position in the distribution sector No. 1 An attractive consolidation partner for smaller companies The perspective of revenues and profit growth of PKM Duda capital group Polski Koncern Mięsny Duda Activity: livestock farming, slaughter, red meat dissection and packaging, meat processing premium brands, distribution of meat and meat processed products Revenues 2007: PLN 1,325m Main competitors Animex Sp. z o.o. (Smithfield Group) Activity: red and poultry meat production and processing, production of feeds Revenues 2006: PLN 2.3bn Sokołów S.A. (HK Ruokatalo, Danish Crown) Activity: red meat production and processing, pet food production Revenues 2006: PLN 1,585m 5

6 6 PKM Duda - control over all segments of the value chain in the meat sector

7 Areas of operations of PKM Duda Production sector Distribution and Service sector Agricultural sector Actual business lines Pork Beef Game meat Distribution of meat and processed meat Storage and refrigerating services Meat dissection services Breeding Fattening Plant production Meat processing - premium brand Internet trade platform Fodder production New business line Biofuels and biogas-plants* 7 * Business line contains biofuel production. Revenues from biofuel farming components are given in the plant production business line.

8 8 Part 2 Financial results for 2008

9 PKM Duda consolidated revenues Revenues (in PLN m) Export revenues (in PLN m) Consolidated quarterly revenues of PKM Duda in period of (in PLN m) % % % -12% Source: PKM Duda Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q4 Q2 Q3 Q Tense situation in the meat market and fluctuation of prices at the raw material market Decrease in demand for pork of Polish origin Decrease in number of slaughtered pieces in Grąbkowo plant Drop in export sales Excessive pork production in Europe and international meat producers increased competition due to unfavorable exchange rates for Polish companies Consistent expansion of the capital group results consolidation of Stół Polski and Ukrainian subsidiaries Business integration of Makton Group and Stół Polski Financial reporting in compliance with IAS 9

10 PKM Duda consolidated results EBITDA (in PLN m) EBIT (in PLN m) Net profit* (in PLN m) % % % -31% % % Source: PKM Duda * Net profit attributable to the shareholders of PKM Duda Strengthening of Polish towards EUR and USD The difficult situation in the live pig market not just in Poland but in the entire EU market due to excessive pork production The strong zloty has slowed down export growth and contributed to larger inflow of meat surplus from Western Europe to Poland, especially from Denmark and Germany Vertical integration of PKM Duda largely balances the impact of the changing meat market on financial results Further investments on the Ukrainian market a significant development of the raw material base Further share increase in supplies from own grown livestock to Grąbkowo Stabilization of labour costs Increase in financial costs Costs of acquisition and integration of acquired companies with the PKM Duda capital group 10

11 Segment results of PKM Duda Group Source: PKM Duda Total segment revenues of PKM Duda (in PLNm) production distibution-service agricultural Source: PKM Duda 15,4 0,4 4,7 10,3 Total segment EBITDA of PKM Duda (in PLNm) 22,9 3,3 7,0 12, production distibution-service agricultural 20,1 2,7 8,5 9, Source: PKM Duda 11,1 2,7 Total segment net profit of PKM Duda (in PLNm) 15,5 2,2 4,6 8,8 8,8 0,1 4,9-0,6 0, production distibution-service agricultural 5,6 Production PKM DUDA Polska Wołowina Borys Ukraina Hunter Wild Eurosmak Rosana MPC Segment s line-up Distribution -service Makton Fedrus Stół Polski Eurosmak NetBrokers Euro-Duda New Logistic PKM Duda Distribution Meat Service Rosan Trade Rogatyn Feedmill Agricultural Agro Duda Agroprof PZZ Dystrybucja Rolpol Wizental Bioenergia Agrohop Agronet Agroferm PP ZORIA ZAT ZORIA PBI Pieprzyk Rogatyn Pan Produkt Plus Rosan Agro 11

12 Production segment 2008 feedback Segment data A difficult situation in the EU pig market Prices of pork half-carcasses class R in PLN /kg * Significant surplus in the production of pigs for slaughter Unfavourable situation in the currency market Tension in the meat market and fluctuations of live animal price No possibility to export meat products to Russia and Belarus International meat producers increased competition due to unfavorable exchange rates for Polish companies significant increase in import Fulfilling of meat supply contracts to EU, South Korea, China, Belarus, Kazakhstan as well as other markets Realisation of contracts for private warehousing * Purchase price Activities of Red Meat Controlling Authorities in order to Number of slaughtered pieces in Grąbkowo reduce black economy and unfair competition plant (in 000 pieces) Bankruptcy or difficult situation of many medium-sized companies Rosana MPC restructuring of production processes Participation in the consolidation process preparing further -27% acquisitions of companies in the processing business +25% ,0 5,0 4,0 3,0 2,0 1,0 0, Source: PKM Duda

13 Service and distribution segment 2008 feedback Segment data of Makton group and Stół Polski Integration and process optimization in Makton Group and Stół Polski Further utilization of synergy effects after taking over of Stół Polski Shares increase in actually operating markets Increase scale of inflow of meat surplus from Western Europe to Poland Utilization of strong negotiation position towards suppliers and buyers Increase of product portfolio towards perspective products with high margin of profit, including launch of Fedrus-branded products into Makton s distribution channels Introducing into the market products under own brands promotion costs Development of deliveries for HORECA segment and preparing an offer for retail chains Intensification of trade operations of NetBrokers PKM Duda Distribution sales intensification in EU market Costs of acquisition and integration of newly acquired companies Legend Szczecin Zielona Góra Markets serviced Markets to be serviced Gdynia Poznań Wrocław Gdańsk Wałbrzych Łódź Katowice Warszawa Kraków Olsztyn Białystok Ciechanowiec Maków Siedlce Rzeszów 13

14 Agricultural segment 2008 feedback Segment data Further increase in supplies from own grown livestock to Grąbkowo plant improvement of quality and efficiency of livestock Gaining incremental independence from range of livestock on free market elimination of purchase of dissatisfying quality of livestock or significant cut in prices Rent of over high quality 15,000 ha in Ukraine, plant production for fodder and biofuel components Further investments on the Ukrainian market a significant development of the raw material base Increase in costs of developing the raw material base Significant capital expenditure for preparing agribusiness in Poland and Ukraine Major growth of fodder prices Modernisation of newly taken over farms costs related to start-up Introduction of central fodder purchase and equipment for farmers cooperating with PKM Duda as well as implementation FARMER OF THE YEAR program Work on new acquisitions in the segment of raw materials Prices of rye Prices of wheat CSO forecast forecast CSO Source: Agricultural Market Agency, March 2007 Source: Agricultural Market Agency, March 2007 Prices of pork livestock Prices of cattle livestock forecast CSO forecast CSO Livestock in general Veal livestock Source: Agricultural Market Agency, March 2007 Source: Agricultural Market Agency, March 2007 CSO- Central Statistical Office 14

15 Building a strong position of PKM Duda on the Ukrainian market Current state Plant production Fodder production Breeding Slaughter, dissection and meat processing Distribution and services 15 Plan for 2-3 years Lease of hectares of high class acreages Purchase / lease of over hectares of high class acreages, plant production to satisfy the needs of fodder production and biofuel production Production capacity: 100 tons of fodders per day Production capacity increase in line with the development of the own raw materials base and external sale capacity Production capacity: porkers per year Breeding up to porkers per year Production capacity: tons of cured meat products and tons of meat per year Production capacity increase in line with the development of the own raw materials base and porkers market purchase Premium ROSANA brand, and medium home recipes brand Construction of own distribution network Brand image creation of a few brands in different price and quality segments

16 Appendices Boards of PKM Duda Financial Data Contact details 16

17 Boards of PKM Duda Management Board of PKM Duda S.A. President of the Board Maciej Duda Vice-President of the Board Bogna Duda-Jankowiak Vice-President of the Board Roman Miler Vice-President Financial Director Rafał Oleszak Supervisory Board of PKM Duda S.A. Chairman of the Board: Rafał Abratański Vice-Chairman of the Board Tomasz Łuczyński Board Member: Marek Dybalski Board Member: Rafał Tuzimek Board Member: Maciej Zientara Board Member: Jarosław Tomczyk Board Member: Michał Dworzyński 17

18 Financial results Profit and loss statement PLN 000 Revenues Cost of goods sold gross margin on sales Sales costs General and Administrative Expenses Profit on sales margin on sales Other operating income Other operating costs % % % % % % % % EBIT EBIT margin 6.1% 4.2% 6.1% 3.8% Financial income Financial costs Gross profit Income tax Net profit attributable to shareholders of PKM Duda net margin 4.8% 3.1% 5.4% 1.8% Consolidated data. Source: PKM Duda S.A. 18

19 Financial results Balance sheet PLN 000 Assets Non current assets Current assets, incl. Inventories Receivables Q Equity & Liabilities Shareholders Equity Provisions Long-term liabilities Short-term liabilities Accruals and deferred income Consolidated data. Source: PKM Duda S.A. 19

20 Disclaimer The following document concerning financial results and potential investment projects of PKM Duda was prepared by PKM Duda ( the Company ) The following documents contains presentation of only the key elements of investments and the basic investments conditions connected with the potential investment projects. The following document does not present the whole and comprehensive picture of the potential investment projects, as well as the position and perspectives of the Company. The following documents and the accompanying slides and their description may present statements concerning future. Statements concerning future does not guarantee fulfillment of expectations about the future results and are connected with risk and uncertainty and real financial situation of the PKM Duda group in the future may differ considerably from the expectations described or presumed from the above mentioned statements concerning the future. The Company conveys existing picture of potential investment projects, prepared according to the best knowledge of the Board of Directors, with the reservation, that it is not possible to give full information concerning financial statements and operational data of the potential investment projects. The realization of the projects, described in the following document depends on the fulfillment of many conditions, that may not be fulfilled. With respect to the comprehensibility or the reliability of information presented hereby the Company cannot grant any guarantees or statements. The Company cannot take any responsibility from any reason connected with using the following document. The following document was prepared solely for the information and promotion sake and may be treated neither as a purchase or sales offer nor as an offer aiming at gaining any offer for purchase or sales of any kind of securities or financial instruments or participation in any trade enterprise. The following document is not an offer or invitation to purchase or subscribe for any kind of securities in any jurisdiction and no decision included in it cannot be base for any agreement, liability or investment decision and one should not rely on it in connection with any agreement, liability or investment decision. 20

21 Headquarters Polski Koncern Mięsny DUDA S.A. ul. Kłobucka 25, Warszawa tel. (+48) Grąbkowo Production Plant Polski Koncern Mięsny DUDA S.A. Grąbkowo 73, Jutrosin tel. (+48)