Presentation of results for H1 2013

Presentation of results for H1 2013
Warsaw, 29 August 2013
Presentation of results for H1 2013
Agenda
• Financial results
• Capital Group
• Polish market
• Foreign markets
• Corporate information
2
Presentation of results for H1 2013
Consolidated results
in PLN million
revenue
EBIT
EBIT margin
EBITDA
EBITDA margin
net profit
H1 2013
300.7
29.1
9.7%
38.6
12.8%
21.6
H1 2012
289.2
29.4
10.2%
37.5
13.0%
23.2
Dynamics
104.0%
99.0%
102.9%
93.1%
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Presentation of results for H1 2013
Capital Group
 Paint manufacturers
located in: Poland (4), Ukraine (1),
Belarus (1)
LLC Śnieżka EastTrade
Baltic
Sea
RUSSIA
LITHUANIA
 Modern factories manufacturing approx.
140 million litres of various construction
chemistry products
Minsk
POLAND
 More than 230 different products for:
traditional market, DIY chains and
professionals
BELARUS
Śnieżka-Ukraina
SLOVAKIA
UKRAINE
MOLDOVA
HUNGARY
Sea of
Azov
ROMANIA
Black Sea
Presentation of results for H1 2013
Capital Group
Geographical segments of the Capital Group's sales
Figures in PLN million
+ 1,5%
+7,1%
H1 2012
H1 2013
+ 21,6%
- 3,4%
H1 2012
H1 2013
Polish market
Ukraine
Belarus
Other
Foreign markets
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Presentation of results for H1 2013
Export directions
Our main export markets:
 Ukraine
Russia
 Belarus
 Moldova
Belarus
 Russia
 Kazakhstan
 Romania
Ukraine
Slovakia
Hungary
Kazakhstan
Moldova
Romania
Polish export accounts for
23% Śnieżka's sales.
Georgia
Armenia
Presentation of results for H1 2013
Paints and varnishes market in Poland
The estimated value of the Polish market is PLN 2 billion.
Śnieżka's main competitors in Poland are:
Akzo Nobel (brands: Nobiles, Sadolin, Dulux and Hammerite)
PPG (brands: Dekoral, Dekoral Professional, Domalux, Drewnochron, Cieszynka, Malfarb, Dyrup and Bondex),
Tikkurila (brands: Tikkurila, Beckers, Polifarb Dębica and Jedynka).
Estimated share of sales in the Polish market
PPG
21%
Others
33%
Tikkurila
10%
Akzo
Nobel
20%
Śnieżka
16%
Source: Estimates of FFiL Śnieżka SA
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Presentation of results for H1 2013
Ukrainian market
- In 2012, the volume of the Ukrainian market was 327.6 thousand tons.
- Śnieżka's share in the Ukrainian paints and varnishes market is approx. 24% and
approx. 30% in the emulsion paints segment
Sales on the Ukrainian market in millions of UAH
+ 11.6%
H1 2012
H1 2013
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Presentation of results for H1 2013
Belarusian market
•Śnieżka BELPOL – manufacturer of putty compounds, impregnating agents and white emulsion paints
• increase of production capacity in putty compounds,
- average use of paint per 1 inhabitant is 5 litres,
- stabilisation of the Belarusian currency in 2012 and 2013,
- Śnieżka's share in the Belarusian market is estimated at 15%.
Sales on the Belarusian market in millions of PLN
+ 21.6%
H1 2012
H1 2013
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Presentation of results for H1 2013
Russian and Moldovan market
-
Markets traditionally "accustomed" to the dollar
- In 2012, the volume of the Russian market was 1341 thousand tons; in 2012, this market grew by 5% in terms
of volume
- Average paint consumption per 1 person in Russia is approx. 7 litres, and 5 litres in Moldova
-10.1%
Śnieżka's export
H1 2012
H1 2013
in millions of PLN
- 23.8%
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Moldova
Russia
Presentation of results for H1 2013
Our brands
B2C
B2B
Presentation of results for H1 2013
Better offer – better opportunities
premium
value for money
economy
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Presentation of results for H1 2013
Advertising campaigns in 2013
VIDARON
Śnieżka Satynowa
Presentation of results for H1 2013
Advertising campaigns in 2013
Magnat Ceramic
Satynowa
Acryl-Putz
Presentation of results for H1 2013
Paints and varnishes market in Poland
Awareness of paint brands in Poland – 2012 study results
Śnieżka is the most
recognisable brand
Śnieżka ranks 1st
among paint brands
Śnieżka
Śnieżka
Aided awareness
Top-of-mind awareness
(first mentioned)
Top-of-mind awareness
(all mentioned)
Source: GfK Polonia, BTS , 2010-2012, N = 1000
Presentation of results for H1 2013
Retail chain investments in Poland
- increased expenditures in 2012, continuation of investments in 2013
- creation of product aisles: Śnieżka, Magnat and Vidaron
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Presentation of results for H1 2013
Payment of dividend
• Planned distribution of profit: dividend payment amounting to 25%-50% of the profit earned
• At PLN 2.50 per share, the 2012 dividend was the highest dividend ever paid in the company's history
• Śnieżka is listed in WIGdiv, an index of dividend-paying companies
Dividend per share in PLN
17
Presentation of results for H1 2013
Redemption of equity shares
• As a result of the call to subscribe, in 2012 the company purchased 932,898 shares at
PLN 31.00 per share, accounting for 6.9% of the share capital
• The shares were redeemed at the Ordinary GSM in June 2013
• The share capital was reduced to PLN 12,617,778
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Thank you!
Warsaw, 29 August 2013