Presentation for press and investors

Transcription

1 Presentation for press and investors Financial results for 2008 March 2009

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 cutting Acquisition of companies operating in production, agricultural and service sector Development of Polski Koncern Mięsny (Polish Meat Company) with high profile in distribution sector Expansion on the Ukrainian market, entering the processing 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 - Development of a raw material base - Further acquisitions - Acquisition of Stół Polski - Share issue PLN 144.6m - Acquisitions on the Ukrainian market -Leasehold of land in Ukraine -Expansion on the Ukrainian market -Entering the processing sector -Acquisition of ZM Paruzel 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 cutting and packaging, meat processing premium brands, distribution of meat and meat processed products Revenues 2006: PLN 1,041m Revenues 2007: PLN 1,325m (+27%) Revenues 2008: PLN 1,458 mln (+10%) Main competitors Animex Sp. z o.o. (Smithfield Group) Activity: red and poultry meat production and processing, production of feeds Revenues 2006: PLN 2,300m Revenues 2007: PLN 2,700m Change 2006/2007: + 17% Sokołów S.A. (HK Ruokatalo, Danish Crown) Activity: red meat production and processing, pet food production Revenues 2006: PLN 1,585m Revenues 2007: PLN 1,671m Change 2006/2007: + 5,5% 5

6 Areas of operations of PKM Duda Agricultural sector Production sector Distribution and Service sector Actual business lines Plant production Fodder production Breeding Pork Beef Game meat Distribution of meat and processed meat Storage and refrigerating services Internet trade platform Fattening Meat processing - premium brand Meat cutting services New business line Ecoenergy (biogas-plants) 6

7 7 PKM Duda - control over all segments of the value chain in the meat sector

8 8 Part 2 Financial results for 2008

9 PKM Duda consolidated revenues Revenues (in PLN m) +10 % +27% Export revenues (in PLN m) Consolidated quarterly revenues of PKM Duda in period of (in PLN m) Source: PKM Duda Since May pig livestock prices went up slow reversal of the declining trend % Since the second quarter a drop in the population of pigs in Poland (estimated at about 20%) Since September a major extension of production potential (slaughtering) and the use thereof in the plant in Grąbkowo which combined with an improved structure of purchased raw materials resulted in significantly larger revenues In the fourth quarter the total of slaughtered pigs amounted to 240 thousand (50% more than the average of previous three quarters) The increase of export revenues in the second half-year as a result of improving the competitive position of the Capital Group on the export markets and acquiring new contracting parties. Business integration of Makton Group and Stół Polski +26% Q1 Q Q3 Q1 Q2 Q3 Q1 180 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q The revenues of PLN 414 million generated in the fourth quarter were the highest in the history of PKM Duda

10 PKM Duda consolidated results EBITDA (in PLN m) EBIT (in PLN m) Net profit* (in PLN m) % % % % % -20% -23% Source: PKM Duda * Net profit attributable to the shareholders of PKM Duda The decrease of value of Euro and USD the loss accounted on the assessment of derivatives (PLN 34m) Vertical integration of PKM Duda largely balances the impact of the changing meat market on financial results Costs related to harvest, preparation of vegetable production for 2008/2009 and development of raw materials backyard Decreased grain prices Stabilization of labour costs, but increase in financial and depreciation costs The revaluation of assets a positive single influence on the net figure that amounted to PLN 35,4m 10

11 PKM Duda consolidated 2008 results compared to 2007 Revenues (in PLN m) Export revenues (in PLN m) +12% +34% ,4 59,4 Source: PKM Duda EBITDA (in PLN m) EBIT (in PLN m) Net Profit* (in PLN m) +195% 62,7 +306% 52,9 +60% 8,3 21,2 5,2 13,0 Source: PKM Duda * Net profit attributable to the shareholders of PKM Duda

12 Segment results of PKM Duda Group Total segment revenues of PKM Duda (in PLNm) Total segment EBITDA of PKM Duda (in PLNm) 129, ,9 82, Source: PKM Duda Source: PKM Duda Total segment net profit of PKM Duda (in PLNm) Segment s line-up 52,0 40,3 30, Source: PKM Duda Agricultural Agro Duda Agroprof PZZ Dystrybucja Rolpol Wizental Bioenergia Agrohop Agronet Agroferm PP ZORIA ZAT ZORIA PBI Pieprzyk Rogatyn Pan Produkt Plus Agro progress Nu Agrar Wschód Rosan Agro Production PKM DUDA Polska Wołowina Borys Ukraina Hunter Wild Rosana MPC PF Ekspres Distribution -service Makton Stół Polski NetBrokers Euro-Duda New Logistic PKM Duda Distribution Meat Service Rosan Trade Rogatyn Feedmill 12

13 Production segment 2008 feedback Segment data Since Q2, a slow reversal of declining trend in livestock prices that has continued since 2007; drop in the pig livestock population in Poland better ratio demand/supply on the raw material market Since September a major extension of production potential (slaughtering) and the use thereof in the plant in Grąbkowo which combined with an improved structure of purchased raw materials resulted in significantly larger revenues The record-breaking slaughtering level in the fourth quarter Offer diversification increase meat share in elements in sales, increased margin Fluctuations of Polish Zloty Fulfilling of meat supply contracts to EU, South Korea, China, Belarus, Kazakhstan, Ukraine as well as other markets Sale of half-carcases and meat elements outside the EU export refunds obtained for pork Realisation of contracts for private warehousing Activities of Red Meat Controlling Authorities in order to reduce black economy and unfair competition - bankruptcy or difficult situation of many medium-sized companies * Purchase price Prices of pork half-carcasses class R in PLN /kg * Number of slaughtered heads in Grąbkowo plant (in 000 heads) % % IV 2006 kw. IV kw IV kw % +3% ,0 5,0 4,0 3,0 2,0 1,0 0,0 I-IV kw I-IV kw I-IV kw Source: PKM Duda 13

14 Service and distribution segment 2008 feedback Segment data Business integration in Makton Group and Stół Polski Further utilization of synergy effects after taking over of Stół Polski Shares increase in actually operating markets Preparations to centralise meat cutting in Grąbkowo, deliveries of meat in elements to all branches of Makton and Stół Polski Increased space in production halls in Makton by restricting meat cutting at the branches of Eurosmak 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 and Paruzelbranded products into Makton s distribution channels Introducing into the market products under own brands promotion costs Development of deliveries for HORECA segment Commenced collaboration with Polish distribution networks Intensified trade activities of NetBrokers Inclusion of a production branch of Makton in Dobieszowice (ZPM Paruzel) to the group and commencement of exports of processed products therefrom (to the EU and Japan) The merger of Makton, Eurosmak and Fedrus companies that took place on the 5th of January 2009 Segment data of Makton group and Stół Polski Legend Szczecin Gorzów Wlkp. Zielona Góra Wrocław Markets serviced Markets to be serviced Gdynia Poznań Gdańsk Grąbkowo Łódź Wałbrzych Katowice Maków Kraków Olsztyn Białystok Ciechanowiec Warszawa Siedlce Rzeszów 14

15 Agricultural segment 2008 feedback Segment data Further increase in supplies from own grown livestock to Grąbkowo plant improvement of quality and efficiency of livestock Improved structure of purchased raw materials in result of increased imports of live pigs for internal needs elimination of porker imports of unsatisfactory quality from the open market wolnego rynku Decreased grain prices Further investments on the Ukrainian market a significant development of the raw material base Increase in costs of developing the raw material base Major outlays for preparation of vegetable production and harvest in Poland and Ukraine 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 investments in the segment of raw materials Preparation to integration of companies of the agri sector Prices of rye forecast CSO Prices of pork livestock forecast CSO Prices of wheat forecast CSO Prices of cattle livestock CSO forecast Livestock in general Veal livestock CSO- Central Statistical Office Source: Agricultural Market Agency, December

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: Tomasz Łuczyński Board Member: Marek Dybalski Board Member: Rafał Tuzimek Board Member: Andrzej Soczek Board Member: Michał Dworzyński Board Member: Robert Rogowski 17

18 Financial results Profit and loss statement PLN 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 Financial income Financial costs % % % Gross profit Income tax Net profit attributable to shareholders of PKM Duda net margin 4.8% 3.0% 2.1% Consolidated data. Source: PKM Duda S.A. 18

19 Financial results Balance sheet PLN Assets Non current assets Current assets, incl. Inventories Receivables 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 K 25, Warszawa tel. (+48) Grąbkowo Production Plant Polski Koncern Mięsny DUDA S.A. Grąbkowo 73, Jutrosin tel. (+48) duda@pkmduda.pl