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TRANSCRIPT
Author: Jon Edwards
Food and Beverage Companies & London
October 20, 2009
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Isn’t it too early to think about IPO in our sector?
Are UK based investors really interested in food and beverage?
Won’t investors be put off by the prospect of over-regulation?
We need medium term growth finance so do we really need to think about getting our company in shape for a potential IPO?
Cocktail Commentary – What I heard last night
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FTSE 350 food producers index
Source: Bloomberg
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Food&Beverage industry breakdown
Food&Beverage industry breakdown by number of companies
12
13
54
Beverages Food Retailers Food Producers
Food&Beverage industry breakdown by MarketCap
£51 664
£61 084£51 180
Beverages Food Retailers Food Producers
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Food & Beverage industry companies in London including 7 companies from CIS
21164313Food Retailers
21044412Beverages
74911192454Food Producers
DRsOrdinary Shares
InternationalUK
AIMNumber of Companies
Source: London Stock Exchange Statistics
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Main market: money raised at IPO (£m)
Source: London Stock Exchange Statistics
312,45
188,92
128,6 120,2475,37
54
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100
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PYATEROCHKA MHP CHERKIZOVOGROUP
MAGNIT EFES BREWERIES LANDKOM
8Price performance and trading – Main Market companies
CHERKIZOVO GROUP trading on LSE
0
2000000
4000000
6000000
8000000
10000000
12000000
0123456789
Volume Price
$251,000,000Money Raised
Food productsIssuer’s industry:
London Stock Exchange, Main Market for GDRs
Listing:
Ordinary Shares and GDRs at an offer price of U.S.$2,287.50 per Ordinary Share and U.S.$15.25 per Global Depositary Receipt
Offering:
15 May 2006Pricing date
Cherkizovo GroupIssuer
JPMorgan Chase Bank, N.A.Depositary
ZAO Deloitte and Touche CISIndependent Auditors
UBS Investment BankCo-Manager
Renaissance Securities (Cyprus) Limited
Sole global coordinator and sole bookrunner
$639,580,000
$10
Market cap now*:
Current Price*
$903,000,000Market cap at IPO:
Cherkizovo GroupIssuer
* As at 13 October 2009
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Cherkizovo Group holders
0,351Fortis Investment Management0,452Metzler Asset Management1,597Raiffeisen Kapitalantage
1,62Erste Sparinvest1,94Swedbank Robur Fonder AB2,65East Capital Asset Management
3,677Fidelity3,78Payden and Rygel Investment Management
13,55HQ Fonder Sverige14,02JP Morgan Asset Management
Market Value ($m)Company
Source: Bloomberg
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Biggest investors in CIS Food & Beverage companies include:
1Nomura Asset Management1HSBC Asset Management1BNP Paribas Asset Management2ING Investment LLC2T.RowePrice2Invesco Asset Management2UBS Strategy Fund Management2Credit Suisse Asset Management3Morgan Stanley Asset Management3KBC Fund Managers4JP Morgan Asset Management5East Capital Asset Management6Fidelity Research and Management
Number of CIS Food & Beverage companies
invested inCompany
Source: Bloomberg
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Management’s view on near term market outlook (growth, market share, key trends)Government regulation and involvement (subsidies, taxes/duties, trade support, etc.)Company strategy (pricing, volume, product expansion/extension, M&A)Competitive Landscape (key competitors, product initiatives, SWOT)Gross, EBITDA and Margin targets including key drivers Capital Expenditures ( production investment, IT systems, distribution/logistics, M&A)Financing (equity/debt capital raises, leverage targets, dividends, share buy-backs)
Key Investor Questions
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• Jon Edwards• Senior Manager - CIS• +44 207 797 1599
• Maria Aleksandrova• Business Development Executive• +44 207 797 1444
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