tbli nordic 2015 - bjorn almér - barista fair trade coffee
TRANSCRIPT
The problem
• 68 Million children are not attending school. Schools are often available, but the children must help at home.
• $1 invested in school feeding gives $3 return to society*. *WFP
• + quality of life • + improved odds for democracy etc
The solution • School feeding through the UN/WFP
91% of children in Kassim, Ethiopia attend school compared to 10% in the neighbouring village without school feeding.
Each number is an individual! Do The Math
18 coffee shops = 1.316
Starbucks has 22.000 stores = 1,6M/day = all children out of school in Ethiopia
Etics as we see it: • Fairtrade • Organic • UN: over 900 children get school
meals from us daily • Sustainable: green power, local
produce • Transparancy tracability • Union agreement & profit share
10% of profits to staff • Value for money: At least same
quality at same price
First in the world:
• Fairtrade Cola • Fairtrade syrup • Biodegradable cards (wood/corn)
• Biodegradable Fairtrade Nespresso
First in Scandinavia:
• 100% Fairtrade & Organic • 100% Arabica, freshroast • First to take medalj with house blend • 100% recycled fibre napkins • No plastic. Cups made of corn
The Right Market
• Sweden - most potential in Europe. Will more than double size until 2020
• Even mature markets grow England (37% of Europes coffee shops, 9% av population) grows 6,4%
• Branded Coffee Shops win over unbranded och clear branded over unclear concepts.
Source: Allegra Strategies
• Extreme gross margins. EH 77%
Branded Coffee Shops 2015 feb 2014 Ändring
Espresso House 160 132 +21%
Waynes Coffee 89 96 -7%
Coffee House by George 30 29 +3%
Gateau 28 26 +8%
Barista Fair Trade Coffee 19 18 +6%
Le Pain Francais 10 9 +11%
Joe &The Juice 9 6 +50%
Starbucks (SSP, Umoe, ICA) 8 6 +33%
Condeco 8 8 -
Roberts Coffee 6 9 -33%
Café Ritazza 4 4 -
DaMatteo 4 5 -20%
Johan&Nyström 3 1 +200%
Fristående med Kaffefokus 18 18 -
Espressamente Illy 0 3 -100% Exit
Totalt 396 365 +8,5%
Why it will Work Location, Location, Location We are offered the best locations
+ The most passionate staff ”The Moment of Truth”
Financial Summary Tkr
2012 2013 2014 2015 2016 2017 Sales 64 004 60 834 66 337 73 000 130 788 178 660 EBITDA 5 700 - 9 209 - 12 658 - 5 000 8 396 17 431
EBT 688 - 10 644 - 23 260 - 13 000 - 511 6 324
Total Capital 31 928 40 797 43 176 Stores 16 18 18 22 30 37 License Stores by Ben & Jerry Unilever - - 1 2 9 13 Total 16 18 19 24 39 50
Sources of value
1) Positive EBITDA gives normal P/S –valuation Espresso House P/S 1,6 (Herkules) Espresso House P/S 2,3 (Jab Holding, 11M/unit) Starbucks P/S 3,8 (19M SEK/unit) Industry Average P/S 2,3 (USA, Morningstar)
P/S should triple when cash positive
2) New stores have a higher value than the cost of construction 2015 to 2017 we add 19 stores Investment 2,5M/each = 48M Value 7M/each = 133M Organic additional value: +85M
The offer New shares are issued today att 5 SEK each Pre Money valuation = 29M/SEK = P/S 0,33
13,4 M SEK has just been injected by existing owners, but more than half was converted loans. We need cash to grow.
Therefore the offer is extended also to new owners. Max 5M SEK, Min 100.000 SEK
Sign up by July 1st