Investor Presentaiton
Beverage business (Teliani valley) overview
Key facts
TELIANI VALLEY
Market opportunity
GEORGIA
CAPITAL
Low consumption per capita compared to peers
Beer consumption in Peer Countries 2016 (1/capita)
200
2.5
2.0
Peer Average
88 litre
1.5
1.0
0.5
0.0
Industry investment rationale
High growth sector which has doubled during last 5 years to GEL 1.8 billion
High multiple business
Best-in-class distribution network platform provides competitive advantage to onboard additional
beverage businesses
■ Recent free trade agreements with China and EU provide opportunities for growing wine exports
10 year exclusivity with Heineken to produce beer to be sold in Georgia, Armenia and Azerbaijan
(c.17mln population)
Wine business
■ Market leader with 35% market share in premium HoReCa and modern trade segment based on
bottle wine sales
■ Increase vineyard base to 1,000 hectares, from current 436 hectares¹, over the next three years.
Beer production business
Local production - 13% market share² at 31 March 2018 since mainstream beer "ICY" launch in
June'17
Financial metrics (GEL m)
Annual
2015
2016
2017
Quarterly
1Q17
1Q18
Revenue (wine)
18
18
3
5
Revenue (beer)
N/A
N/A
EBITDA (wine)
2
EBITDA (beer)
N/A
3
N/A
563
22865
18
0.4
0.6
(5)
(0.6)
(3)
150
100
50
0
Czech Republic
GEL millions
Wine sales (bottles)
Selected operating metrics
Beer sales (liters)
1 Includes current acquisition of Kindzmarauli Marani LLC
2 market share is calculated based on liter sales
1Q17
4Q17
1Q18
559,538
1,137,518
732,446
1,841,845
2,250,945
Austria
Germany
Poland
Lithuania
Ireland
Estonia
Romania
Slovenia
Georgia
2011
2012
2013
2014
2015
ul
Beverage Market GEL billions
2016
2017E
Consolidated EBITDA track record (GEL m)
Turned-around loss making business and
increased wine EBITDA
Wine EBITDA was
3.4
GEL 0.6mln in
3.1
3.0
2.5
1Q18, posting
1.7
2.0
1.3
1.7
53.2% y-o-y
growth
0.9
(2.6)
2009 2010
2011 2012 2013 2014 2015
2016
2017 1Q18
Exit Strategy - Strategic Sale
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