Noho Partners Plc · OMXHEX:NOHO
Noho Partners — Restamax — IPO Roadshow (November 2013)
61 slides from Noho Partners's IPO roadshow presentation, November 2013
Slide 1: Initial Public Offering – Investor Presentation November 2013
INITIAL PUBLIC OFFERING SUBSCRIPTION PERIOD 12.11.2013 - 21./22.11.2013 (PUBLIC AND PERSONNEL OFFERING / INSTITUTIONAL OFFERING) INVESTOR PRESENTATION NOVEMBER 2013 This presentation is not a prospectus in the meaning referred to in the Securities Markets Act (764/2012). This presentation does not i
Slide 2: Important Notice
IMPORTANT NOTICE Evli Bank Plc (‘Evli Bank’) has prepared this presentation on Restamax Plc (the ‘Company’) for background information and for use in connection with the Company’s initial public offering. This presentation does not seek to provide comprehensive information or information that is suf
Slide 3: Today's Speakers
TODAY’S SPEAKERS Timo Laine Markku Virtanen Chairman of the Board CEO Born: 1966 Born: 1970 Member of Board of Directors since foundation Joined Restamax in 2005 Founder of Restamax Previously with Restel since 1992, most recently as Chain and Area Manager Jarno Suominen CFO Born: 1972
Slide 4: Agenda
AGENDA 1 The offering 2 Restamax in brief 3 Overview of the Finnish Restaurant Market 4 Operations and strategy of Restamax 5 Financials 6 Summary 4
Slide 5: 1. The Offering
RESTAURANT COMPA
Slide 6: The Offering (1/2)
THE OFFERING ISSUE SIZE EUR 16.5M – TO BE USED TO EXECUTE GROWTH STRATEGY Main parameters of the offering (1/2) Osakeanti Share issue Circa EUR 16.5 million (gross proceeds before IPO costs) Uusien osakkeiden New shares 3,600,000 lkm Merkintähinta Offering structure Intitutional offering, public and
Slide 7: The Offering (2/2)
THE OFFERING SHARES TO BE LISTED ON THE HELSINKI STOCK EXCHANGE Main parameters of the offering (2/2) Markkinapaikka Market place NASDAQOMX Helsinki mainboard Lead Manager Evli Bank Plc Varojen Use of proceeds käyttö Execution of the company’s growth strategy Important dates Monday 11.11. Publicatio
Slide 8: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Rapidly growing Finnish restaurant company Clearly the most profitable of the leading Finnish 2 restaurant companies 3 Steadily growing market supported by positive long-term growth drivers Large and fragmented market offering an opportunity to increase market share and 4 mai
Slide 9: Risk Factors
RISK FACTORS INVESTORS SHOULD CAREFULLY REVIEW THE LISTING PROSPECTUS Risks relating to current macroeconomic conditions Overall negative economic developments may have an adverse effect on the company’s business and results of operations. The attitude of the market concerning the instability of the
Slide 10: 2. Restamax in Brief
2. RESTAMAX IN BRIEF 10
Slide 11: Restamax in Brief
RESTAMAX IN BRIEF RAPIDLY GROWING AND PROFITABLE RESTAURANT GROUP Company description Key figures (IFRS) Established in 1996 Restamax Plc is a Net sales, EURm EBITDA, EURm Finnish restaurant group. The company has grown rapidly throughout its operating +28% 19.4 % 16.4 % 0.2 60.8 15 history 47.3 9
Slide 12: History
HISTORY ROOTS GO BACK TO 1996 Main events in the company’s history 1996 2005 2008 2010 2013 Start of Ownership operations, Expanding more arrangement Restamax focus on Expansion to strongly to and the pursues a listing entertainment (food) entertainment foundation of on the Helsinki restaurants rest
Slide 13: Overview of Restaurant Portfolio
OVERVIEW OF RESTAURANT PORTFOLIO CIRCA 60 RESTAURANTS ACROSS THE COUNTRY Restaurants operated by Restamax Locations of Restamax’s restaurants1 Food x Food Clubs and other x entertainment Clubs and other entertainment 1 3 2 1 1 4 1 1 1 14 9 1 2 1 1 1 1 2 1 1 2 2 1 1 1 4 1Restamax operates a total of
Slide 14: Ownership Structure
OWNERSHIP STRUCTURE FOUNDERS ARE STILL THE LARGEST OWNERS Shareholders of Restamax Plc Shareholder Company controlled by % Founders' ownership in the company Timo Laine / Mikko Aartio (founders) 58.6 % Mr Max Oy Timo Laine / Mikko Aartio (founders) 47.2 % Ramanetto Oy Wholly owned subsidiary of Mr M
Slide 15: Board of Directors
BOARD OF DIRECTORS Timo Laine (since foundation) Mikko Aartio (since foundation) Chairman of the Board Founder of Restamax Founder of Restamax Dependent on the company and a significant owner Dependent on the company and a significant owner (Mr. Max Oy) (Mr. Max Oy) Turo Levänen (since 2010)
Slide 16: 3. Overview of the Finnish Restaurant Market
3. OVERVIEW OF THE FINNISH RESTAURANT MARKET 16
Slide 17: Restaurant Market in Finland
RESTAURANT MARKET IN FINLAND A EUR 5 BILLION AND GROWING MARKET Total sales of Finnish restaurants, EURbn Comments CAGR ’06-’11 During 2006-2011 the market has grown with a CAGR of 3.2% +3.2% Licensed premises (A- & B- 4.80 restaurants) have outpaced the 4.54 4.45 4.54 general market growth 4.33
Slide 18: Main Market Drivers (1/2)
MAIN MARKET DRIVERS (1/2) FRAGMENTED MARKET WITH UNDERLYING GROWTH DRIVERS 1 Eating in restaurants becoming more popular 2 Fragmented food & beverage service market 1 No. of meals consumed in restaurants in 2 wks / person No. of enterprises, 2011 Sales volume, 2011 3.60 9 555 EUR 4.5 bn2 2.96 2.49 2
Slide 19: Main Market Drivers (2/2)
MAIN MARKET DRIVERS (2/2) NUMBER OF VISITORS HAS GROWN STEADILY 3 Nights spend in accommodation establishments, millions Comments CAGR Visitors utilise actively restaurant +2.1% ’95-’06 ’06-’12 ’95-’12 + 1.9% services The number of 20.3 20.0 19.5 19.2 19.0 +2.1% nights spend has 18.6 18.2 grown
Slide 20: Competition – Large Restaurant Companies
COMPETITION – LARGE RESTAURANT COMPANIES ONLY A HANDFUL OF COMPANIES WITH A NATIONWIDE PLATFORM Main competitors / Largest restaurant companies # Company Sales FY Nationwide 1 EUR 533 m 2012 1 2 2 EUR 177 m 2012 3 EUR 69 m1 2011 5 4 EUR 61 m 2012 4 5 EUR 36 m 1/2012 6 EUR 24 m2 2011 Local 8 7 EUR 23
Slide 21: Segmentation of Restaurant Market
SEGMENTATION OF RESTAURANT MARKET RESTAMAX OPERATES IN SEVERAL SEGMENTS 1 Fine dining Michelin star and similar high end restaurants Price class 2 Upper quality dining Premium restaurants, where consumers include B2B customers Restamax’s offering 3 Casual dining Relaxed restaurants serving mai
Slide 22: Club and Entertainment Restaurant Markets
CLUB AND ENTERTAINMENT RESTAURANT MARKETS RESTAMAX OPERATES PROFITABLY IN ALL SEGMENTS Types Description Examples Extended opening hours in the night time and Clubs typically quite large units due to limited utilisation rates Consists of several different sub segments such as traditional pubs as
Slide 23: 4. Company's Operations
CO 4 REST RESTAURANT COMPA 23
Slide 24: Operational Basis
OPERATIONAL BASIS ENTREPRENEURIAL CULTURE COMBINED WITH ECONOMIES OF SCALE Key elements 1 Concept based approach Restaurant concepts are developed based on detailed market studies Conceptualisation is rigorous – for example regional differences are taken into account The intention is to operat
Slide 25: Organisational Structure
ORGANISATIONAL STRUCTURE SITE-SPECIFIC MODEL – EACH RESTAURANT IS AN OWN P&L UNIT Organisation structure Level Structure Management and activities The group is led by the executive group Strategy formulation Group M&A/decisions on new restaurants (1) Development of new concepts Centralised
Slide 26: Executive Group
EXECUTIVE GROUP Markku Virtanen, s. 1970 Jarno Suominen, s. 1972 CEO CFO Joined Restamax in 2005 Joined Restamax in 2005 Paul Meli, s. 1977 Tanja Virtanen, s. 1977 Line Manager, Clubs and Other Line Manager, Food Entertainment Joined Restamax in 2005 Joined Restamax in 2008 Topi Hietala, s. 1964 Per
Slide 27: Personnel Management
PERSONNEL MANAGEMENT AMONG THE LARGEST EMPLOYERS OF THE LABOUR-INTENSIVE INDUSTRY Restamax invests in its personnel 1 Staff is an important resource to Restamax Professional and motivated personnel is an important resource to Restamax Restamax invests in its personnel and tries to minimise churn
Slide 28: Marketing Utilises Restamax's Unity
MARKETING UTILISES RESTAMAX’S UNITY WELL-KNOWN RAVINTOLA.FI PAGES AND LOYAL CUSTOMER SCHEME Uniform ravintola.fi-webpages Loyal customer scheme that works on mobile basis All of Restamax’s restaurants and clubs are featured on the company’s uniform ravintola.fi webpages. The menus, future events a
Slide 29: Operating Model (1/2)
OPERATING MODEL (1/2) SUPPORT FUNCTIONS CREATE A LOCAL COMPETITIVE ADVANTAGE 25 restaurants, food, of which 4 are operated in Food, restaurants connection with another group restaurant Gringos Locos (4) D Bella Roma (2) D Roast (1) 14 concepts of which 9 has been planned to be Stefan’s S
Slide 30: Operating Model (2/2)
OPERATING MODEL (2/2) A WIDE VARIETY OF CONCEPTS FOR A NUMBER OF TARGET GROUPS Food, 31 %1 restau- (27 %) rants 52 %1 Clubs (59 %) Other entertain- 12 %1 ment, (13 %) restau- rants Support Leasing 4 %1 Admin Cleaning services functions operations (1 %) ¹ %-share of sales in 2012 and (2011) 30
Slide 31: Mission, Values and Vision
MISSION, VALUES AND VISION We create new interesting restaurants and concepts for all target Mission groups Our operations and decisions follow the principles: entrepreneurship, Values profitable growth, speed, quality as well as courage and passion Finland’s largest private company producing qualit
Slide 32: Restamax Growth Strategy
RESTAMAX GROWTH STRATEGY STRATEGIC CORNERSTONES Restamax’s strategic cornerstones Tampere, Helsinki, Seinäjoki, Turku, Profitable growth is sought in the largest cities 1. Kuopio, Joensuu, Jyväskylä, Hämeenlinna, of Finland and shopping centres Lappeenranta, Nokia, Lohja, Oulu, Lahti Organic growth
Slide 33: Large Cities as Company's Focus Area
LARGE CITIES AS COMPANY’S FOCUS AREA… GROWTH OPPORTUNITIES ARE LOCATED IN CITIES Profitable growth is sought in the largest cities of Finland Prerequisite for expansion is that the growth is Focus areas profitable. Therefore, new localities need to fill certain criteria such as sufficient populati
Slide 34: …As Well As in Shopping Centres
…AS WELL AS IN SHOPPING CENTRES ENABLES GROWTH OUTSIDE GROWTH CENTRES Shopping centres complement the growth strategy of Restamax Large customer flows of shopping centres offer an No. of shopping centres and visitors excellent growth platform for Restamax’s 83 restaurant concepts – both food and e
Slide 35: Acquisitions – Integral Part of Strategy
ACQUISITIONS – INTEGRAL PART OF STRATEGY ACQUISITIONS ENABLE ACCELERATED GROWTH Acquisitions are an integral part of Restamax’s growth strategy Restamax has a track record of successful Examples of different types of acquisitions acquisitions which have accelerated the company’s growth 1 Acquisiti
Slide 36: 5. Financials
RESTAURANT COMPA
Slide 37: Historical Growth Rate of Restamax
HISTORICAL GROWTH RATE OF RESTAMAX THE GROWTH HAS BEEN RAPID AND PROFITABLE Historical net sales growth (EURm) and development of EBITDA margin 70 The company’s annual EBITDA margin has been circa 0.7 10 - 20% throughout the review period +33% p.a. 60.8 60 0.6 Net sales, EURm 50 47.3 0.5 Net sales
Slide 38: Financials – Overview
FINANCIALS – OVERVIEW Key figures (IFRS) Main operating metrics 1 EUR '000s 2011 2012 2011 1 2012 Net sales 47 302 60 773 Materials margin -% 75.0 % 74.3 % Annual growth, % - 28.5 % Personnel expenses-% 28.6 % 29.6 % EBITDA 9 200 9 939 (incl. external services) EBITDA-% 19.4 % 16.4 % ROIC 30.8 % 24.
Slide 39: Financials Q3 – Summary
FINANCIALS Q3 – SUMMARY Key figures IFRS) Comments EUR '000s 1-9/'12 1-9/'13 1-12/'12 The growth in 2013 is mainly based on investments that were completed in the Net sales 42 094 47 086 60 773 latter half of 2012. In 2013, the company Annual growth, % - 11,9 % 28,5 % has mostly focused on the lis
Slide 40: Outlook 2013
OUTLOOK 2013 When assessing the results development of 2013 it should be noted that as a single event the unsuccessful launch of a new theatre restaurant concept in 01/2013 had a negative effect on the results. The unit was sold in 06/2013 but it affected the results negatively even during 1.7.- 3
Slide 41: Long-Term Financial Targets
LONG-TERM FINANCIAL TARGETS The company’s goal is significant growth Growth Net sales of EUR 100 million by the end of 2015 The company aims to maintain good profitability and return on capital Profitability Long-term goal is to maintain return on invested capital of over 20% The company aims to mai
Slide 42: 6. Summary
6 RESTAURANT COMPA
Slide 43: Investment Highlights
INVESTMENT HIGHLIGHTS 1 Rapidly growing Finnish restaurant company Clearly the most profitable of the leading Finnish 2 restaurant companies 3 Steadily growing market supported by positive long-term growth drivers Large and fragmented market offering an opportunity to increase market share and 4 mai
Slide 44: RESTAURANT C:
RESTAURANT C:
Slide 45: Appendix
APPENDIX i. FURTHER INFORMATION ON RESTAURANT MARKET AND OPERATIONS OF RESTAMAX ii. INCOME STATEMENT AND BALANCE SHEET 45
Slide 46: Key Market Drivers
KEY MARKET DRIVERS Market driver Implication/Comments In 2012, 76% of Finns ate in a restaurant at least once during a Eating in restaurants period of two weeks, while in 2006 the number was 55% 1 becoming more The trend is partly explained by the size households. The share of popular people liv
Slide 47: Demographics Support Market Growth
DEMOGRAPHICS SUPPORT MARKET GROWTH 1 EATING IN RESTAURANTS BECOMING MORE POPULAR IN FINLAND Meals consumed in restaurants, in two weeks Share of people living alone 3.60 19.0 % 19.4 % 19.8 % 20.2 % 2.96 2.49 2.47 2006 2008 2010 2012 2006 2008 2010 2012 In 2012, Finns ate on average 3.60 times in
Slide 48: Main Market Drivers (2/2)
MAIN MARKET DRIVERS (2/2) 1 NUMBER OF VISITORS HAS GROWN STEADILY Nights spend in accommodation establishments, millions Comments CAGR Visitors utilise actively restaurant +2.1% ’95-’06 ’06-’12 ’95-’12 + 1.9% services The number of 20.3 20.0 19.5 19.2 19.0 +2.1% nights spend has 18.6 18.2 grown
Slide 49: Finnish Restaurant Industry
FINNISH RESTAURANT INDUSTRY 2 THE MARKET IS HIGHLY FRAGMENTED Finnish food & beverage service companies1, 2011 Comments No. of companies Share of volume There were a total of 9 555 food & beverage service companies in Total 9 555 Total EUR 4.5 bn2 Finland at the of 2011. Only 264 or 100% 100.0 % 1
Slide 50: Market Structure According Regions
MARKET STRUCTURE ACCORDING REGIONS 2 THERE IS ROOM FOR GROWTH ACROSS THE COUNTRY No. or Restamax restaurants and HoReCa portions Locations of Restamax’s restaurants2 Restamax1 Region No. of HoReCa portions, 2011 7+1 Uusimaa 260 3 Varsinais-Suomi 78 2+12 Satakunta 38 x Food 1+12 Kanta-Häme 30 27+22 P
Slide 51: Factors Influencing Choice of Restaurant
FACTORS INFLUENCING CHOICE OF RESTAURANT 3 MEMORABILITY INCREASINGLY IMPORTANT Factors influencing the most in choosing a restaurant, per cent of respondents Image of restaurant Decor of restaurant Availability of certain dish 20% 20% 20% 15% 15% 15% 10% 10% 10% 5% 5% 5% 0% 0% 0% 2006 2012 2006 2012
Slide 52: Stefan's Steakhouse – Upper Scale Dining
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED STEFAN’S STEAKHOUSE – UPPER SCALE DINING Concept Launched 2010 Locations 3 (Turku, Helsinki, Tampere) Steakhouse - concept ”A quality restaurant for friends of good food and hedonists. Proper steaks are the main item on the menu. Everything is executed to th
Slide 53: Gringos Locos – Tex Mex Restaurant
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED GRINGOS LOCOS – PLEASANT TEX MEX RESTAURANT (CASUAL DINING) Concept Launched 2006 Locations 3 + 1 (Jyväskylä, Tampere, Helsinki and one in connection with Ilona in Lappeenranta) Pleasant tex mex restaurant concept ”The pleasant tex mex restaurant is a perfec
Slide 54: Viihdemaailma Ilona – Multi-Compartment Club Concept
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED VIIHDEMAAILMA ILONA – MULTI-COMPARTMENT CLUB CONCEPT Concept Launched 2009 Locations 5 (Joensuu, Tampere, Kuopio, Lappeenranta and Seinäjoki) Multi-compartment club concept ”The most diverse club of Finland. Live music, karaoke as well as good food and drink
Slide 55: London – Club-Like Public House Concept
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED LONDON – CLUB-LIKE PUBLIC HOUSE CONCEPT Concept Launched 2011 Locations 3 +1 (Lohja, Tampere, Jyväskylä and one in connection with Tawastia Bank, Hämeenlinna) Club-like public house concept ”London offers authentic English ambience, which fits the taste of g
Slide 56: Galaxie Center – Billiard Restaurant
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED GALAXIE CENTER – BILLIARD RESTAURANT Concept Launched 1990’s Locations 3 (Tampere, Turku and Seinäjoki) Billiard and game hall concept ”The restaurant has great fittings for playing pool. In addition to billiard, the restaurant is equipped with curling and a
Slide 57: Wayne's Coffee – Modern Café Concept
EXAMPLE OF CONCEPT THAT CAN BE DUPLICATED WAYNE’S COFFEE – MODERN CAFÉ CONCEPT Concept Launched (by Restamax) 2012 Locations (in Finland) 4 (2 x Tampere1, Kuopio and Helsinki) Modern café concept ”Wayne’s Coffee wants to offer an opportunity for the urban citizen to take spontaneous breaks to relax,
Slide 58: Growth Strategy – Organic Growth
GROWTH STRATEGY – ORGANIC GROWTH CONCEPT AND RESTAURANT OFFERING IS DEVELOPED CONSTANTLY Organic growth through new restaurant openings and development of concepts Restamax develops constantly its concept Examples of recent concepts offering to match local demand. Non- chainlike operations enables
Slide 59: Growth Strategy – From Morning Till Dawn
GROWTH STRATEGY – FROM MORNING TILL DAWN WIDE RESTAURANT OFFERING TO ALL TARGET GROUPS Restaurant services from morning till dawn to all target groups The wide concept offering of Restamax enables From morning till dawn – An example expansion in current localities as well as to new localities Brea
Slide 60: Income Statement
INCOME STATEMENT Income statement (IFRS) Net sales split 1 EUR '000s 2011 2012 EUR '000s % 2011 2012 2011 2012 N et s ales 47 302 60 773 Annual growth - 28.5 % Alcohol 16 934 20 110 35.8 % 33.1 % Beer 7 046 8 013 14.9 % 13.2 % Other operating income 3 525 935 Refreshments 2 697 3 199 5.7 % 5.3 % Mat
Slide 61: Balance Sheet
BALANCE SHEET Balance sheet – Assets (IFRS) Balance sheet – Equity & liabilities (IFRS) EUR '000s 31.12.2011 31.12.2012 EUR '000s 31.12.2011 31.12.2012 N on-c urrent as s ets 24 606 30 672 Total equity 10 784 13 653 Other intangible assets 207 552 Share capital 150 150 Goodwill 8 187 9 097 Paid-up u