Annual General Meeting, 17 June 2013
NO. 1 IN THE TRADE WITH PREMIUM WINES
Translation from German
General economic conditions in 2012
17 June 2013 2
2012: successful business performance for Hawesko overall
Consolidated sales: |
€ 449 million |
+9% |
| Foreign sales: |
€
49 million |
-15% |
Domestic sales: |
€ 399 million |
+6% |
Growth in the end customer segments and − with the exception of Château Classic − the wholesale segment
EBIT of € 26.1 million − previous year's level was not quite reached
Consolidated net income higher than expected due to extraordinary financial income
Growth strategy
Ongoing development of our traditional sales channels
Consistent multi-channel strategy
Strategically sensible acquisitions
Ulrich Zimmermann, Chief Financial Officer
NO. 1 IN THE TRADE WITH PREMIUM WINES
Hawesko consolidated sales
- Primary drivers: Initial consolidation of Wein & Vinos
- Other growth drivers:
- Delivery of 2009 Bordeaux wines
- Market presence in Sweden and Switzerland
- Expansion of online operations
- Barriers to progress:
- Development of Château Classic
- Atypical course of the 4th quarter
- Software conversion in the mail order segment
Development of major expense items
Expense in % of
sales |
2011 |
2012 |
Gross profit margin increased
from 39.6 % to 40.7 %
Personnel expenses increased due to the
|
|
| Personnel costs |
9.8% |
10.2% |
expansion of activities in e-commerce and
in the foreign markets
Higher advertising costs due to
|
|
| Advertising costs |
8.3% |
8.9% |
high level of new customer acquisition
Delivery costs rose as a result of the higher
share of mail order sales |
|
| Delivery costs |
3.7% |
4.3% |
|
|
Specialist wine retail (Jacques' Wein-Depot)
- Sales increased by 3.8% (like-for-like +2.4%)
- Number of active customers increased once again
- EBIT declined due to a weaker trading margin, investments in service quality
Wholesale
- Sales declined by 2.6%
- Strong sales growth in Germany − Exception: Château Classic
- Negative development at Château Classic caused a decline in EBIT
Mail order
- Segment sales +34.4%
- First-time consolidation of Wein & Vinos produced strong growth
- Share of online sales rose from 25% to 39%
- EBIT increased, but late customer orders and a software conversion in the fourth quarter put pressure on the result
FY 2012: Operating result not quite at previous year's level, higher net
- EBIT at € 26.1 million (previous year: € 26.8* million)
- Extraordinary income in the financial result
- Higher net result after extraordinarily low tax rate: € 22.5 million (previous year: € 17.9 million)
11 *) Previous year's figure of € 26.7 million revised in accordance with the early application of IAS 19 (revised).
Consolidated balance sheet
Cash flow and investments
Financial outlook
- After a slowdown in the 4th quarter of 2012, increasingly positive dynamics are expected to set in during 2013
- Outlook for 2013:
- Increase in sales in the range of 6% compared to the previous year
- EBIT in the range of € 28 million
- Financial expenditure in the range of € 1.5 million
- Consolidated net income on comparable basis expected at the level of the previous year
Alexander Margaritoff, Chief Executive Officer
NO. 1 IN THE TRADE WITH PREMIUM WINES
Growth strategy
Ongoing development of our traditional sales channels
Consistent multi-channel strategy
Strategically sensible acquisitions
Highlights of the Hawesko business segments in 2012
Stationary specialist retail:
- 103,000 new customers
- Relaunch of jacques.de
- Continued implementation of our multichannel strategy: on- and offline buyers are better customers
- Further expansion of the online shop, doubling of online sales in 2013
Highlights of the Hawesko business segments in 2012
Wholesale:
- Conversion to new SAP system
- Ongoing reconfiguration of sales/marketing department
- Château Classic being placed even more consistently on a broader basis
Highlights of the Hawesko business segments in 2012
Mail order
- First-time consolidation of Wein & Vinos
- Systematic ongoing development of Hanseatisches Wein- und Sekt-Kontor, Carl Tesdorpf Weinhandel
- New programs successfully launched
Swedish operations (The Wine Company) further expanded
17 June 2013 19
3.2 3.7 0.50 0.55 0.63 0.70 0.85 1.00 1.20 1.35 1.50 1.60 1.65 Proposal 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012p * * In € per share *) 2005 plus bonus of € 0.30 2010 plus bonus of € 0.25
Consistently attractive dividend policy
20 17 June 2013
2013 and the following years
|
|
Outlook: continuing profitable growth |
|
|
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2014: Sales and result will continue to increase − half billion in sales (?)
Outstanding general conditions
Trend to wine
- Trend towards higher-quality wines
- High growth potential in the non-traditional wine countries
- - like Germany
2013 and the following years
- Business figures after 5 months within our expectations
- Start of a new phase: internationalisation
- Optimistic about future development
Thank you!
NO. 1 IN THE TRADE WITH PREMIUM WINES