Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — Q2 2020 Earnings Presentation
28 slides from Embotelladora Andina SA's earnings presentation, August 2020
Slide 1: Corporate Presentation 2Q
Agenda Page Corporate Presentation 2Q 20 [CLIENT NAME]
Slide 2: #goPaperless
In line with our constant effort to improve Agenda communication with the financial market and at the same time reduce waste generation, Page we have developed the Coca‐Cola Andina IR App. This is an investor relations application, and we will begin a 100% digital communication plan of our Financial
Slide 3: 1. Company Description
1. Company Description Agenda Page [CLIENT NAME]
Slide 4: History
History Merger with KO Polar (incorporation of new During April we began Agreement Coca‐Cola System Andina Andina listed on territories in Argentina, distributing AdeS for joint venture (50/50) becomes the the NYSE. Chile & Paraguay). products, reinforcing distributing for the water and Coca‐Cola Fr
Slide 5: A regional and diversified platform (FY19)
A regional and diversified platform (FY19) Volume Revenues Adjusted EBITDA 9% 9% 12% 32% 34% 38% 24% 22% 16% 35% 35% 34% 746 MM UCs US$2,495 MM US$491 MM Chile Brazil Territories: Antofagasta, Atacama, Coquimbo, Territories: majority of the State of Rio de Metropolitan Region, San Antonio, Cacha
Slide 6: Ownership (As of June 30, 2020)
Ownership (As of June 30, 2020) Controlling Group 42.9% 55.7% 30.2% Series A Series B Others 35.8% Coca‐Cola 7.3% ADRs 2.3% Chilean Pension Funds 11.6% The Controlling Group is composed of 5 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A elects 1
Slide 7: Superior manufacturing and logistics capabilities
Superior manufacturing and logistics capabilities Argentina Brazil 3 production facilities with a total 3 production facilities with a total of 21 lines of 28 lines ◦ Average utilization ranged from ◦ Average utilization range from 20.0% to 52.0% 34.1% to 79.2% 47 distribution centers 18 dis
Slide 8: Committed to Sustainable Development
Committed to Sustainable Development Generating Social, Economic and Environmental Value in all of our actions Source: Company filings and public releases 7
Slide 9: 2. Market Description
2. Market Description Agenda Page [CLIENT NAME]
Slide 10: Coca-Cola Andina at a glance: Market Structure (As of December 31, 2019)
Coca‐Cola Andina at a glance: Market Structure (As of December 31, 2019) Market Share Channel Mix* Per capita 13% Consumption 65% 39% (8 oz. bottles) 251 44% 21% 34% 33 25 27% Soft Drinks Waters Juice and On premise Wholesalers Others Soft drinks Waters Juices and Others Supermarkets Mom and Pops Pr
Slide 11: Market Structure (As of December 31, 2019)
Market Structure (As of December 31, 2019) Market Share Per capita Product Mix Market Share Per capita Product Mix Consumption 6% Consumption 7% 10% 9% 63% (8 oz. bottles) 62% (8 oz. bottles) 49% 4% 45% 257 215 17% 18% 29 17 84% 19 19 80% 12 Soft drinks Waters Juices and Others Soft Drinks Waters Ju
Slide 12: Diversified brand portfolio across segments and geographies
Diversified brand portfolio across segments and geographies (As of June 30, 2020) Argentina Brazil Chile Paraguay SSDs1 Juices and other NCBs1 Water Beer Spirit Beverages2 Source: Company filings and public releases 1 SSDs: Sparkling Soft Drinks; NCBs: Non‐Carbonated Beverages 2 The complete Diageo
Slide 13: 3. Financial Highlights
3. Financial Highlights Agenda Page [CLIENT NAME]
Slide 14: Track record of profitability, Adjusted EBITDA growth, diversification and strong cash generation
Track record of profitability, Adjusted EBITDA growth, diversification and strong cash generation Sales volume (million UCs) Revenues (CLP$ mm) Argentina Brazil Chile Paraguay Argentina Brazil Chile Paraguay CAGR ‐2.3% 819.9 1,877,394 1,777,459 1,848,878 1,779,025 778.9 756.2 750.6 746.4 1,672,916 1
Slide 15: Solid Financial Position
Solid Financial Position Financial Debt (CLP$ mm) Financial Debt Summary (CLP$ mm) as of June, 2020 Short Term Financial Debt Long Term Financial Debt Banks Bonds Total Ch$mm 25,293 1,011,670 1,036,963 1,036,963 % 2.4% 97.6% 100% 811,270 772,925 729,899 760,436 772,758 Note: Banks includes: Bank, Le
Slide 16: Solid Financial Position
Solid Financial Position Financial Ratios (I) Financial Ratios (II) Net Financial Debt / Adj. EBITDA (3) Financial Debt / Equity Ratio (1) Net Financial Debt (2) / Equity Ratio Net Financial Debt / Adj. EBITDA (w/o MtM CCS) (4) 331.2 Debt Coverage Ratio (5) 10,0 7.7 9.5 6 1.2 6.9 7.5 9.1 6 8,0 1.0 6
Slide 17: Consolidated Financial Highlights (Billion CLP$)
Consolidated Financial Highlights (Billion CLP$) 2014 2015 2016 2017 2018 2019* 1Q19 1Q20 2Q19 2Q20 Total Volume (million UCs) 831 820 779 756 751 746 198 198 161 137 Net Sales 1.797 1.877 1.777 1.849 1.673 1.779 447 505 380 312 Operating Income 187 216 214 239 225 238 68 76 35 16 Operating Margin 1
Slide 18: Consolidated Financial Highlights (Million US$)
Consolidated Financial Highlights (Million US$) 2014 2015 2016 2017 2018 2019* 1Q19 1Q20 2Q19 2Q20 Total Volume (million UCs) 831 820 779 756 751 746 198 198 161 137 Net Sales 3.151 2.868 2.627 2.848 2.569 2.495 668 619 556 380 Operating Income 328 329 316 368 348 335 101 93 51 20 Operating Margin 1
Slide 19: Consolidated Balance Sheet (as of June 30, 2020)
Consolidated Balance Sheet (as of June 30, 2020, in million US$ and million CLP$) Million US$: Assets Liabilities and Equity Cash and Cash Equivalents 454 Current Financial Liabilities 50 Current Assets 371 Other Current Liabilities 326 Non current Assets + Others 2.046 Non-Current Financial Liabili
Slide 20: Dividends and Market Cap (as of June 30, 2020)
Dividends and Market Cap (as of June 30, 2020) Dividend Distribution1 Market Cap (million CLP$) (billion USD) 4,2 25.841 3,4 3,3 2,6 85.475 85.475 75.537 2,1 67.586 48.303 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Dividend Yield2 2015 2016 2017 2018 2019 Series A 3.7% 3.5% 3.3% 3.0% 3.8% Ser
Slide 21: 4. Strategy
4. Strategy Agenda Page [CLIENT NAME]
Slide 22: Expansion potential through organic and inorganic growth avenues
Expansion potential through organic and inorganic growth avenues Organic growth Inorganic growth Superior organic growth within the Key role in the consolidation process & portfolio Coca‐Cola system development for the Coca‐Cola system in Latin America Growth in SSD business Portfolio expansion
Slide 23: 5. Appendix
5. Appendix 2 Cet belg ANDINA
Slide 24: Argentina: Main Financial Highlights (Local Currency)
Argentina: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q19 1Q20 2Q19 2Q20 Sales Volume (million UCs) 229 234 219 211 202 178 49 46 38 29 Net Sales 6.541 8.903 11.343 14.203 22.441 31.566 9.336 8.677 7.475 5.180 Operating Income 428 829 1.198 1.588 2.158 2.563
Slide 25: Brazil: Main Financial Highlights (Local Currency)
Brazil: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q19 1Q20 2Q19 2Q20 Sales Volume (million UCs) 306 291 266 249 249 259 66 67 58 54 Net Sales 2.959 3.059 3.037 2.976 3.062 3.467 877 938 754 737 Operating Income 354 378 369 414 448 503 153 114 86 79 Operating
Slide 26: Chile: Main Financial Highlights (Local Currency)
Chile: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q19 1Q20 2Q19 2Q20 Sales Volume (million UCs) 232 234 232 231 231 240 65 67 50 41 Net Sales 492.072 514.733 540.427 551.873 570.939 608.952 156.876 174.452 132.757 108.890 Operating Income 56.460 63.059 68.879
Slide 27: Paraguay: Main Financial Highlights (Local Currency)
Paraguay: Main Financial Highlights (Local Currency (million)) 2014 2015 2016 2017 2018 2019 1Q19 1Q20 2Q19 2Q20 Sales Volume (million UCs) 63 61 62 65 68 69 18 18 15 13 Net Sales 1.010.735 1.033.215 1.107.678 1.227.001 1.337.989 1.405.584 354.575 375.422 302.109 251.873 Operating Income 157.306 176
Slide 28: Corporate Presentation 2Q
Agenda Page Corporate Presentation 2Q 20 [CLIENT NAME]