Annual General Meeting Hamburg, 16 June 2008
Alexander Margaritoff Chief Executive Officer
General economic conditions in 2007
- GDP + 2.5%
- Unemployment rate continued to fall
- Retail did not revive, however
Hawesko grew faster than the wine market again in 2007
- Wine market +1%
- Hawesko sales +10%
- Growth in all segments
- EBIT at the previous year's level
Ulrich Zimmermann
Chief Financial Officer
June 2008
6
Hawesko Group sales (in € millions)
Group EBIT
- Increased expenses for new customer acquisition
- Additional costs for ending specialist store test
- Some expenses reduced:
- Personnel expenses: 9.3% (previous year: 9.5%)
- Shipping expenses: 3.5% (previous year: 3.7%)
Specialist retail (Jacques' Wein-Depot)
- Like-for-like sales + 2.6%
- Purchasing frequency + 4%
- Lively demand for German wines
- EBIT increase roughly matches sales increase...
- ...even though additional costs were incurred for the termination of the tested specialist store concept
Wholesale/Distribution
- Sales + 16.4%
- Largest rise in sales at Bordeaux-based subsidiary Château Classic
- EBIT + 47% based on sales increase and development of Château Classic
- EBIT margin rose to 6.2% (previous year: 4.9%)
Mail order
Sales + 9.3%
Sales increase via accelerated new customer acquisition and success with VinoSelect!wine club
June 2008
- EBIT decline due to increased marketing expenses
- Hawesko mail order business now on a broader base
Group result after deductions for taxes and minority interests
Group EBT and net result in € millions
EBIT € 18.3 million (previous year: € 18.6 million)
June 2008
- Financial result € –1.3 million compared to previous year
- Very high tax expenditures in 2007 due to corporate income tax reform
- Profit per share: € 0.76 (previous year: € 1.23), adjusted for aforementioned tax expenditure: € 1.07
June 2008
Return on Capital Employed
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June 200813
Cash flow and investments (in € millions)
June 2008
Group balance sheet structure
Dividends
- Proposed dividend € 1.00 per share (previous year: € 0.85)
- Corresponds to a distribution total of € 8.7 million
- Additionally: Share buybacks amounting to € 2.8 million
Financial outlook
- Sales increase approx. 5%
- Operating result considerably higher than 2007 (€ 18.3 million)
- Tax rate slightly over 30% (2007: 56%), thus nearly doubling the net result
- Free cash flow at the 2007 level (€ 13.6 million)
Alexander Margaritoff Chief Executive Officer
June 2008
Specialty wine shops (Jacques' Wein-Depot)
270 Jacques' locations in Germany and Austria
- Ten new depots in 2007
- New, special format for smaller catchment areas
- 80,000 new customers in 2007
June 2008
19
Wholesale
- Wholesale + 16.4%
- Château Classic + 61%
- Strong demand for top wines
June 2008
20
Mail order
- First increase in four years
- Investments in new customers pay off
Sales increase 9.3%
General conditions in 2008
- Clouded economic outlook
- General Association of German Retailers expects zero growth in 2008
- Moderate outlook for wine market
Outlook for the Hawesko Group in 2008
- We continue to focus on quality and service
- Wholesale: strengthen field sales, acquire new exclusive rights
- Specialist retail: acquire more new customers, open additional depots
- Mail order: acquire new customers, test new cooperations, push e-commerce
June 2008
23
E-commerce offers great opportunities
- Sustained sales increases
- Driver for mail order
- Hawesko: strong growth after online shop relaunch
e-commerce: Online shop hawesko.de
- First site launched in 1996
- Backed up by strong product range, logistics, direct-marketing experience
- High growth since relaunch in October 2007
- Goal: 25% share of segment sales
Foreign markets offer great opportunities for Hawesko
- Premium wine market is also interesting abroad
- High growth is also possible abroad
- Hawesko is already experienced in foreign markets
June 2008
Profitability of the Hawesko Group in 2008
Hawesko...
is aiming for better trade margins
is working towards even lower costs
posted the first successes of these efforts in Q1 2008
June 2008
27
Januar–May 2008: Successful start into the new year
- Sales + 10 %
- Growth in all segments
- Specialty shops (Jacques') +7 %
- Wholesale/Distribution + 6 %
- Mail order + 19 %
- EBIT more than doubled(prev. year: € 2.7 mill.)
The Hawesko share
- List price just barely under the all-time high
- Continued positive outlook
- High dividend yield