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1 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
2 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Transformation towards sustainable profitable growthJune 2020
3 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Juicers
Who we areA German beverage specialist with a diversified portfolio and a broad segment coverage
Core strategic brands:
Domestic traditional brands:
Private Label
• Whiskey• Gin• Rum• Tequila• Premium concepts
• Liqueurs• Vodka• Korn• Brandy • etc.• Discount concepts
Spirits
Brands
Non-Alcoholic Beverages (NABV)
Oranges + Bottles
Frutas Naturales
Fresh Juice Systems
Franchise Business
HoReCa only
Growth potential Cash cows Strategic non core
Total revenues 2019: EURm 167.457.3 % | EURm 96.0 30.7 % | EURm 51.4 11.9 % | EURm 20.0
Brands
contract bottling
4 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
CONSCIOUSNESS NATURALITY
DISCOVERY VARIETY CRAFTED
TRADE CONCENTRATION MICROBRANDS E-COMMERCE
DIGITALISATION
What is driving our markets?The world is getting more complex and consumer behaviour is changing substantially
5 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Our assets to respondStrong fundament to withstand COVID-19 and quickly return to sustainable growth
▪ Broad segment coverage for diversifiedtarget groups
▪ Trusting relationship to retailers
▪ Fast reaction to grap emerging businessopportunities
▪ “Can-do“ attitude driving speed to market
We turn beverage ideas into business!
The Berentzen Group is on its way to an integrated, powerful beverage incubator that transformsinnovative ideas into sustainable business.
6 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Our roadmap to successWe are on the way to an integrated, powerful and innovative beverage specialist
Stagnation
Transformation
Acceleration
Stagnating, traditional,motionless business
Focus on trading-upinnovation strategy
Promotional push strategywith volume focus
First transformation stepsmade (Citrocasa, Mio Mio)
Increased growthinvestments
Portfolio de-complexity
Consumer centric valuestrategy
Sustainable top-line growthwith higher profitability
Competitive innovationPipeline
Until 2017 2018 and 2019 2020 2021/22 and beyond
Covid19-Crisishas drastic impacts on the economy. The acceleration of the future growth of the Berentzen Group will be affected, depending on the duration of the pandemic
Strong believe in sustainable and profitable growth, based on and tiedup in 2019
7 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Our transformation agendaWe strive for profitable growth through innovation and commercial excellence
1. Branded Spirits ▪ Focus on core brands Berentzen and Puschkin (innovation, valorisation,
execution)
▪ Capitalizing on upcoming consumer trends through speed to marketinnovations
2. Private Label Spirits ▪ Capitalizing on PL premiumisation trend through innovation and portfolio
extension
▪ Building long-term strategic partnerships with strong retailers
3. Non-Alcoholic Beverages▪ Acceleration of Mio Mio through ambitious distribution extension
(Germany / +)
▪ Total segment optimisation through radical profitability and efficiencyfocus
4. Fresh Juice Systems ▪ Commercial excellence and internationalisation through strong
distributor network
▪ Defending quality leadership through technical machine innovations
5. Group ▪ Joint sales organisation spirit brands and non-alcoholic beverages
▪ Improved structure and raised efficiency in supply chain and logistics
8 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Segment strategy spiritsFrom a traditional, stagnating product portfolio to modern, value driven innovations
Status quo: “classic core” with limited growth Future: “revalued core” + new growth fields
▪ Biggest spirits producer in Germany* with no. 1 position in fruityspirits (Berentzen) and no. 4 position in vodka (Puschkin)**
▪ Export business via distributors covering numerous international markets
▪ Supply chain cost leadership through long-term experience in private label manufacturing
▪ Acceleration of international market entries trough combination approach of branded and PL business.
* Own research by external data** Source: The Nielsen Company 01-12/2019
+
9 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Success stories: SpiritsProven success of profitable growth strategy: innovation & premiumisation
1. Conquering the dynamic liqueur market through productand format innovations of Berentzen and Puschkin ▪ Berentzen Winter Creamers at +39% in 2019*
▪ Puschkin liqueur range at +21% in 2019*
▪ Berentzen Summer Creamers and Puschkin Party Shooter hit market firsttime
2. Seizing opportunities in premium trend categrories▪ Premium rum: Tres Paises grew at +16% in 2019*
▪ Gin: Norden Dry Gin grew at +16% in 2019*
3. Leveraging premiumisation trend in private label business▪ Customized premium concepts grew at +39% in 2019**
▪ Entering the growing Ready-to-Drink-market form 0 to >1.5m units in 2019**
Spirits
* Source: IRI** Source: internal data
10 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Segment strategy non-alcoholic beveragesFrom a regional contract filler to a value driven, national brand champion
Status quo: limited offer focused on northern GER Future: extended, valorised portfolio in Germany /+
▪ National distribution of Mio Mio on its way, sales volume continues to grow with significant double-digit growth rates
▪ Well established water brands with significant market share in home regions
▪ Franchisee for Sinalco and contract bottler for Pepsi
▪ Continued national and selected European rollout of Mio Mio and leveraging growth momentum via new flavours
▪ Germany-wide offering of further lifestyle innovations (i.e. naturalherbal limonade “Kräuterbraut”)
▪ Decreasing dependence on franchising and contract bottling turningit increasingly into a “cherry on the cake business”
11 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
1. Dynamic growth of MioMio continues
▪ Sales up by 33% in 2019, double-digit growth expected in 2020 despiteCOVID-19
2. New and modern innovation Kräuterbraut hit the market▪ „Newcomer of the year 2019“, voted by German „Getränkezeitung“
▪ Convincing rate of sale and consumer feedback, distribution expansion iskey
3. Regional brands with high credibility and growthmomentum▪ Emslandquelle at +3.4% sales growth in 2019
▪ Strong consumer promise: „sustainable ambassador of the region“ (climateneutrality for mineral waters implemented)
Success stories: non-alcoholic beveragesGrowth strategy with proven track record: innovation and commercial excellence
Non-alcoholic beverages
12 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Segment strategy fresh juice systemsFrom a volatile start-up to a commercially robust, international innovation leader
Status quo: local start-up with int'l spot business Future: commercially solid, int'l innovation leader
▪ “One- stop-shop-system“ for juicers, untreated oranges and bottles in home markets Germany and Austria
▪ Market leading pressing technology ensuring best juice quality and taste
▪ Production efficiency through outsourced supply chain for fruit juicepresses
▪ Increased investments to drive innovation leadership by new machinegeneration of smart juicers (easy cleaning, digital connectivity)
▪ Expansion of international distributor network to enter new markets
▪ Building-up further marketing and sales capabilities to drivecommercial excellence and co-piloting of distributors
13 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Success stories: fresh juice systemsResharping innovation leadership and distinct quality superiority
1. Juicers▪ New juicers with easy-cleaning-system and digital solutions
▪ New Eco-Line: manual juicing with green footprint and new placementoccasions (no electricity)
▪ Further game-changing innovations in the development pipeline
2. Fruits▪ Unique expertise in 365 days delivery of untreated, high quality premium
oranges („Frutas Naturales“)
▪ Sustainable competitive advantage through offering a one-stop-shop ecosystem (juicers, oranges, bottles) due to specialized expertise in orange procurement
3. Bottles▪ New recycled PET bottles (rPET) proving sustainability aspiration
▪ High flexibility in format and size, even with customized brandingsolutions
Fresh juice systems
14 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Innovation focus 2019 and beyondFueling sustainable growth through inspiring innovations and premiumisation
Non-Alcoholic Beverages Spirits Fresh Juice Systems
15 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Marketing push 2019Fueling sustainable growth through salient marketing campaigns
Marketing Investments 2017 – 2019
16 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Financial highlights
17 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Financial highlights 2017 – 2019All targets achieved – dividend payment despite COVID 19
Revenues (EURm) EBIT (EURm)
Net Income (EURm)
2019
201720192017
Payout Ratio Dividend Yield
Dividend proposal for 2019: EUR 0.28 in line with generaldividend policy: at least 50% of consolidated profit
to be distributed as a dividend.
53.0 %
2019
2019
> 4.1 %
+ 1.1 %
2018 2019
2018
+ 3.2 %
2018
+ 6.3 % + 0.1 %
2017
- 4.6 %+ > 100 %
18 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Assets and liabilities as per 12/19Solid structured balance sheet
▪ Balance Sheet structure mostly unchanged – moderate increase of Balance Sheet total
▪ Intangible assets represents only 7,6% of total assets.
▪ Increased position of cash and cash equivalents
▪ Spirit tax liabilities are always higher at Y/E compared to the rest of the year due to key month December being included
▪ Equity is up to EUR 49.2m.
▪ Equity ratio of 32.4% (32.7%).
in EURm 12/31/2018 12/31/2019
ASSETS
Intangible assets 12.1 11.6
Property, plant and equipment 45.8 45.4
Investment property 0.7 0.7
Right of use 0.0 1.3
Other financial assets 0.8 0.7
Total non-current assets 59.5 59.7
Inventories 39.9 40.6
Current trade receivable 16.4 14.8
Cash and cash equivalents 15.8 22.7
Other current financial and non-financial assets 13.4 13.9
Total current assets 85.5 91.9
TOTAL ASSETS 145.0 151.6
in EURm 12/31/2018 12/31/2019
LIABILITIES
Non-current financial liabilities 7.1 7.9
Other non-current liabilities 11.9 11.6
Total non-current liabilities 19.0 19.5
Alcohol tax liabilities 42.3 43.6
Current financial liabilities 1.1 2.3
Trade payables and other liabilities 35.1 37.0
Total current liabilities 78.5 82.9
Shareholders´ equity 47.4 49.2
TOTAL SHAREHOLDERS´ EQUITY AND LIABILITIES 144.9 151.6
19 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Corporate Social Responsibility –Committed to sustainability
20 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Materiality Matrix and SDGs as sound basis for our areas of activitySustainability approach at Berentzen Group (I)
high very high
hig
hve
ryh
igh
Rel
avan
ce f
or
stak
eho
ler
Impacts of Berentzen Group
Sustainable products and packaging
Water
Responsible procurement
Resourcemanagement
Compliance and transparency
Employerattractiveness
and responsibility
21 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Sustainability approach at Berentzen Group (II) Our value added chain
For a detailled input-output overview, please see page 30 and following of our sustainabiliy report.
Raw materials and energy production
Manufacture of components and preliminary products
Production of beverage syrup/production of premixture
Production of finished product
Bottling of finished products
Logistics
Trade/consumption
Disposal/recycling or reusue
ProductionAdministrationSales
Syst
em
bo
un
dar
y o
f B
ere
ntz
en G
rou
p
Transportation
Waste water
Waste heat
Waste
Products
Exhaust air
Emissions
Noise
Packaging
Auxiliarymaterials
Operationmaterials
Raw materials
Energy
Water
Heat
CratesEURO palletsBottles
22 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Clear committment to renewable energyWe already use 100% renewable energy in our production processes
For a detailled overview of our energy consumption at Group level, see page 37 and following of our sustainabiliy report.
2015
6.37 %
2017
78.44 %
2018
96.14 %
2019
97.30 %
2015
93.63 %
2017
21.56 %
2018
3.86 %
2019
2.70 %
Electricity from renewable energies Electricity from fossil energy sources
23 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Corporate Carbon FootprintConsiderable reductions already realized according to Greenhouse Gas Protocol criteria
See also page 40 of our sustainabiliy report.
2017 2018 2019
Emissions from heating including upstream chain Scope 3 [t CO2e] 4,271 5,286 4,719
Emissions from electricity including upstream chain Scope 3 [t CO2e] 1,416 503 437
Emissions from transportation including upstream chain Scope 3 [t CO2e] 900 1,093 816
Coolant [t CO2e] - 284 0
Total emissions [t CO2e] 6,587 7,166 5,972
Specific emissions [kg CO2e/m3] 28.92 31.34 26.72
Comparison to last year [%] 8.36% -14.75%
24 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Goals Measures 2018 to 2020 Status
Compliance with environmental standards
Prepare and begin to introduce the environmental management system
Reduction of emissions
Further continuous increase in the share of energy from renewable sources
Continued conversion to LED lightbulbs
Reduced consumption of raw materials, energy and water, and reduced volume of waste and wastewater
Increased engagement in the regions in which we have business locations by supporting further projects, initiatives or events
Transparent sustainability targets to reach until 2020Severals goals within our action fields already realized
People Planet Products
Goals Measures 2018 to 2020 Status
Maintenance and enhancement of the motivation and satisfaction of our employees
Continuation and enhancement of company health promotion
Implementation of structured performance reviews in all departments
Enhancement of the attractiveness of the Berentzen Group as an employer in the regions in which we have business locations
Introduction of a social intranet as a platform for communication and discussion within the group
Development and implementation of an employer branding strategy
Institution of a regular employee survey
Certification as a family-friendly employer
Continuing education of employees and young talents
Promotion of training and continuing education in all areas and the systematic identification and evaluation of measures
Strengthening of social and cultural engagement
Increased engagement in the regions in which we have business locations by supporting further projects, initiatives or events
implemented in implementation
Goals Measures 2018 to 2020 Status
Development and implementation of a pilot project on sustainable products
Neutralisation of CO2 emissions from mainly alcohol-free products by offsetting
Assurance of compliance and availability of up-to-date guidelines and mission statements for all corporate divisions
Confirmation of the BerentzenSupplier Code by all major suppliers
Fulfilment of quality and social standards
Execution of a follow-up audit at the Linz location
Joining of the supplier platform SEDEX and interconnectedness with customers and suppliers
Preparation of a risk profile and development of a further-going audit concept for suppliers
25 June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
At a glance: Why to invest?
26 June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Investment highlights
1. Robust business model and high financialstability even in difficult times
2. Strong diversified portfolio and broadsegment coverage
3. Value creation through portfoliooptimisation and trading-up innovations
4. Local market focus with leading marketpositions and speed to market capabilities
5. Solid financial basis to fund future growthstrategy
6. Return on capital through shareholder-friendly dividend policy
27 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Additional information
28 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
The Berentzen-Gruppe AGShare data as of May 2020
▪ Market capitalisation: ca. EUR 64m (31.12.2019)
▪ ISIN: DE0005201602
▪ Bloomberg: BEZ GR/Reuters: BEZ.DE
▪ 9.6m common shares
▪ EUR 24.6m share capital
Treasury Shares2,1%
Lazard Frères Gestion (FR)5,1%
Main First (LU)8,5%
Monolith (NL)9,9%
Private and institutionalShareholders (<3,0%)74,4%
>3.0%: Pursuant to Notification of Major Holdings, according to Articles 21,22 (old version) andArticles 33,34 (new version) of the WpHG (the German Securities Trading Act)
29 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Current broker and company estimates
Valuation numbers* , 2019 2020E 2020E 2020EMin
2020EMax
2020E
Revenue EURm 167.4 164.9 161.1 158.1 167.9 176.7
EBITDA EURm 18.4 16.9 14.7 14.2 18.5 20.5
EBITDA margin % 11.0 10.2 9.1 9.0 11.0 11.6
EBIT EURm 9.8 8.7 6.2 5.6 9.8 10,8
EBIT margin % 5.9 5.3 3.9 3.5 5.8 6.1
Net income EURm 4.9 4.0 2.0 2.8
Net income margin % 2.9 2.4 1.2 1.8
Price target (in EUR) 10.00 7.40 7.50
Last Update 05/2020 05/2020 05/2020
Research reports available under:
https://www.berentzen-gruppe.de/en/investors/share
Due to uncertainties related to theCoronavirus pandemic, state crisismeasures introduced and their drasticimpacts on the economy, a sufficientlyreliable and secure assessment of thecourse of Berentzen Group's businessdevelopment and as a consequence aforecast for 2020 according to the AnnualReport 2019 is no longer possible (asannounced on 26th March 2020).
30 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
The Berentzen-Gruppe AGManagement
Executive Board Supervisory Board
Oliver SchwegmannCEO
▪ Member of the board since 2017
▪ Responsible for Sales, Marketing,
Production, Logistics, R&D
▪ Managing Director at L‘Oreal
Switzerland and Austria, Corporate VicePresident Marketing & CategoryManagement at Hero AG, Marketing
Head at Mars GmbH Germany
▪ Started his professional career at August
Storck KG
Ralf BrühöfnerCFO
▪ Member of the board since 2007
▪ Responsible for Finance, Controlling, HR,
IT, Investor Relations, Corporate Communications, CSR, Law
▪ Senior Manager/Head of Group Accounting and Controlling in publiclisted companies as well as in privately
owned businesses (Balcke Dürr AG, Hermann Heye KG)
▪ Started his career at PricewaterhouseCoopers
Uwe BergheimChairman
▪ Chairman of the supervisory board since2018
▪ Self-employed business consultant
▪ Member of the board Falke KGaA
▪ Former Member of the board E-Plus Mobilfunk GmbH & Co. KG
31 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
The Berentzen-Gruppe AGFacilities & facts
▪ HQs of Berentzen Group and business units (a) brandedspirits, (a) non alcoholicbeverages (NABVs)
▪ Production of NABVs
▪ Mineral spring, 3 filling lines
▪ Glass / PET / Container
▪ Capacity 72 million litres
▪ Premium craft distillery
Minden
Haselünne Grüneberg
Linz
Istanbul
▪ Headquarter for private label busineness (spririts)
▪ Production of all spirits
▪ Production capacity 123 million units
▪ 6 filling lines
▪ Warehouse in Stadthagen with 30,000 pallets
▪ Production of NABVs
▪ Mineral spring
▪ 4 filling lines
▪ PET /Glass / BIB / KEG
▪ Capacity 95 million litres
▪ Business unit Fresh Juice Systems
▪ HQ of business unit, asssembling, engineering, sales, marketing
▪ Own spirits salesorganization
▪ Established in 2012
▪ German company with morethan 250 years of tradition, based in Haselünne, Lower Saxony, listed in the General Standard of the Frankfurt Stock Exchange since 1994
▪ Broad product portfolio withwell-known spirits brands such asBerentzen and Puschkin, private-label spirits, mineral water, lemonades such as Mio Mio, fruitjuice systems (Citrocasa) as wellas a franchise for Sinalco lemonades
▪ Present in more than60 countries worldwideAUT
TR
DE
32 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
The Berentzen-Gruppe AGFinancial calendar* and contact
2020 Event
9 January ODDO BHF Forum in Lyon, France
4 February Preliminary Business Figures for 2019
26 March Annual Financial Statements and Report 2019
6 May Interim Report Q1/2020
18 May Virtual Roadshow with Metzler Capital Market
26 May Virtual Roadshow with Kepler Cheuvreux
9-10 June Virtual Roadshow with Oddo Seydler Bank AG
30 June Spring Conference Equity Forum – 1 on 1 Summit online
2 July Virtual General Meeting of Berentzen-Gruppe Aktiengesellschaft
11 August Group Half-Yearly Financial Report 2020
18 August Metzler MicroCap Days – Virtuell
21-22 September Berenberg and Goldman Sachs: Ninth German Corporate Conference – Virtuell
22 October Interim Report Q3/2020
17-18 November Deutsches Eigenkapitalforum – Virtuell
* Conference and roadshow participations will be regulary added and updated
Contact
Jochen KleinInvestor Relations Manager
Phone: +49 (0) 5691 502- 219Email: ir@berentzen.deHome: www.berentzen-gruppe.de
33 Company Presentation | June 2020BERENTZEN-GRUPPE AG | Transformation towards sustainable profitable growth
Disclaimer
This presentation is intended only for information purposes. It is not final.
It contains forward-looking statements. These are based on current assumptions, estimates and expectations of company management concerning future developmentsrelated to the company. They are associated with risks and uncertainty, and have not beenindependently verified. Such forward-looking statements may include terms including but not limited to “future potential,” “perspective” or “goal.” These refer only to non-bindingpossibilities and potentials in this form and estimated at this time, and not to measurableor reliable management or company key indicators, including retrospectively. Publishedmanagement and company key indicators are unaffected thereby.
These forward-looking statements are thus not suitable for evaluating the company ormaking any other economic evaluations, and in particular do not constitute a basis, recommendation, solicitation, advice or offering for investment decisions. They further do not constitute a promise or guarantee thatthe expectations described herein will prove correct.
Actual events and results may deviate substantially from the forward-looking statements, positively or negatively. Many uncertainties and the consequential risks are affected bycircumstances that the Berentzen-Gruppe Aktiengesellschaft has no control or influenceover, and that cannot be assessed with certainty. These include changing marketconditions and their economic developments and consequences, changes in the financialmarkets and currency rates, actions by other market participants and competitors, changesin laws and political decisions by governments and government agencies.
Where not otherwise mandated by law, the Berentzen-Gruppe Aktiengesell-schaft acceptsno obligation with respect to these forward-looking statements to make corrections orchanges due to circumstances that occur after the date of this presentation; the right tomake such changes is nevertheless reserved. No guarantee is made, or liability accepted, implicitly or explicitly, for the timeliness, correctness or completeness of the forward-looking statements herein contained.
Brands and other trademarks used in this presentation and protected by third parties aresubject to the provisions of the respective trademark laws and the rights of the registered owners thereof. Copyright and reproduction rights for this presentation and for brands andother trademarks of the -Berentzen-Gruppe Aktiengesellschaft are reserved, where not otherwise -explicitly agreed.
Executive Board, Berentzen-Gruppe Aktiengesellschaft
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