INVESTORS PRESENTATION
Market leaders in Bulgaria with a 38% market share, showcasing consistent growth in international deliveries since 2009. The company boasts a strong balance sheet, efficient HR management, and a focus on innovation and service quality, positioning them for sustained organic growth. Despite fluctuations in profitability margins due to investments, their robust financial standing and high ROE indicate a solid foundation for future development. The favorable market environment presents opportunities for further expansion and success.
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Presentation Transcript
INVESTORS PRESENTATION May 2017
HIGHLIGHTS Market leader in Bulgaria, sizable presence in Romania Logistic network covers 100% of Bulgarian and Romania servicing 1,3m customers Market share of 38% in CEP market, 6,5% in Romania Focus on the largest and best performing segment - business customers and e-commerce Business model based on innovation, efficiency and quality Highly advanced IT infrastructurE Efficient HR management system Service quality of 99.2% Organic growth fueled by high profitability Sustaining annual organic growth of c20% after 2010 Strong cash flow allows sustaining 50%+ dividend payout ratio ROE bottomed at 16% Geopost SA has a call option to acquire majority stake in 2020 at 8x EBITDA
KEY FIGURES 100% coverage of Bulgaria, Romania and Greece 1 300 000+ unique clients 2400 employees and partners 21 000+ corporate clients with contracts Control over the fleet and network: 350 offices in Bulgaria and 85 in Romania Over 1000 vehicles with capacity 1,5 t - 23 t 25 000 000 deliveries 43 000 m2 distribution network and offices Part of GeoPost international network Business Mix: B2B 47% , B2C 53%
140,000 LONG TRACK RECORD OF SOLID GROWTH 120,000 100,000 80,000 International deliveries and pallets in Bulgaria have increased almost 5 times since 2009 and account for more than 50% of the incremental sales 60,000 40,000 20,000 Core activity (parcels) keeps the pace and potential is far from exhausted. 0 2009 2010 2011 2012 2013 2014 2015 2016 Sales & Profitability Sales EBITDA Net Income 25% EBITDA Margin in constant improve until 2014. The lower margins of DPD Romania shrunk the combined profitability 60% 20% 50% Margins deteriorate in 2016 and Q1 2017 following heavy investments in capacity and new services and higher expenses for salaries and subcontractors. 40% 15% 30% 10% 20% 5% Acquisitions end 2014 contributed considerably to the sales 10% 0% 0% 2009 2010 2011 2012 2013 2014 2015 2016 Parcels growth Sales growth EBITDA Margin, LHS
CONSTANT DEVELOPMENT ON SOLID GROUND The rapid growth is not at the expense of the financial standing 1.60 1.40 Solid balance sheet provides the necessary base to sustain the pace of growth in long term Current ratio 1.20 1.00 High ROE helps to maintain 50% payout ratio and to finance the growth 0.80 0.60 Debt / Equity 0.40 EUR 10m investments in 2016 increased the leverage 0.20 Company do not invest in real estate. It allows flexibility in operations and lowers capital intensity. 0.00 2009 2010 2011 2012 2013 2014 2015 2016
FAVORABLE MARKET ENVIRONMENT 5-years cumulative market growth of 33% makes it very dynamic as well as competitive. 30% Postal market growth Speedy growth Market share 25% Currier services are the blood system of the booming e- commerce 20% 15% Large number of registered companies but top 10 account for 86% of total volumes, Econt being our largest competitor. 10% Well diversified , Speedy is a leader in large parcels and with a strong presence in international deliveries and e-commerce. 5% 0% 2010 2011 2012 2013 2014 2015 Romanian market shows high potential and much larger share of cross-border orders -5% Market share of around 6.5% in Romania, targeting top 3 Large multinationals are key competitors dominate the international deliveries
OUR STRATEGY Focus on core business, diversification of services Virtually all revenues come from core business Adding wide variance of services that add value and satisfaction for the clients Resources are channeled in services where Speedy has a competitive advantage large parcels, corporate clients Constant innovation and improvement Implementing technologies on every possible level 90% of the orders are processed through on-line platform completely automatically. Exploring and introducing the best available practices Exploiting the first mover advantage and services with potential Introducing to the market new services international overland deliveries and pallets has contributed for around half of the incremental revenues in the last years and currently account for 30% of total sales Creating regional market with Speedy Balkans Large office network makes Speedy a key player for online traders
POTENTIAL IS NOT EXHAUSTED Operations based in one of the fastest growing economies in Europe. With 15% and 30% higher sales in Bulgaria and Romania , respectively, potential does not looks exhausted. Booming e-commerce. Long-term prospects in pallet services. Exclusive rights to offer DPD services in Greece. Access to DPD network and partnership with companies in neighboring countries help further growth in international deliveries. Investments in web-based products and new equipment enable cost savings and new services. Economy of scale is a huge advantage.
SEARCH FOR OPTIMIZATION Cost structure, % Opex In 2014 Speedy executed a major change in its strategy the logistic activities from predominantly in-house were largely outsourced 80% 70% 60% 50% Costs structure changed with subcontractors taking the largest shares at the expense of fuel, maintenance and remuneration 40% 30% 20% After restructuring on non-consolidated bases EBITDA Margin hit a peak of 21% in 2015. 10% 0% 2011 2012 2013 2014 2015 2016 Fast growth and intensive investments put costs under pressure. Our expectations are margins to recover once investments and size starting paying off. Materials Remuneration Hired Services
OUR VISION Wide range of courier and logistic services. Local market: City, Express, Economic Integrated regional market: Bulgaria, Romania, Greece To and from Europe
BUILDING TRUST Promises during the IPO in 2012 Fulfillment PARTNERSHIP ATTITUDE TOWARDS ALL STAKEHOLDERS Acquisition in Romania and regional expansion Attracting strategic investor Pension funds 2% Retail investors 3.6% Annual sales growth above 10% Mutual funds 3% At least 50% dividend distribution set in the Article of Incorporation Responsible corporate governance GeoPost / La Poste 25% Founders 66.4%
OUR VALUES TRUST QUALITY OPENNESS RELIABILITY ENTHUSIASM LEADERSHIP PROFESSIONALISM POSITIVISM RESPONSIBILITY SECURITY GRWOTH LOYALTY DEVELOPMENT ETHICS SPEED POTENTIAL SOCIAL RESPONSIBILITY PARTNERSHIP
