Embotelladora Andina SA · BCS:ANDINA_A
Embotelladora Andina SA — Investor Presentation (2012)
38 slides from Embotelladora Andina SA's investor presentation, 2012
Slide 1: 2012 Corporate Presentation
2012 CORPORATE PRESENTATION
Slide 2: Forward-Looking Statements
F Forward-Looking d L ki Statements St t t Statements St t t maded in i this thi presentation t ti th t could that ld relate l t to t Andina’s A di ’ future f t performance or financial results are forward-looking statements and are based upon currently available data; however, actual results are su
Slide 3: History
Historyy New bottling facility in Chile begins operations. Coca-Cola C C l SSystem t Restructuring of juice Andina Andina listed on joint venture (50/50) business through joint becomes the the NYSE. for the water and venture with Coca-Cola Coca-Cola Franchise TCCC acquires juice business in bottlers
Slide 4: Ownership
Ownership (December 31 31, 2011) Controlling Group 48 48.7% 7% 55.0% 42.4% Series A Series B Others 22.5% Coca-Cola 11.0% ADRs 9.2% Chilean Pension Funds 8.5% The Controlling Group is composed of 4 Chilean families with equal parts, that have a shareholders’ agreement which includes TCCC. Series A e
Slide 5: Consolidated Overview
Consolidated Overview (December 31 31, 2011) REVENUES EBITDA (million USD) (million USD) CAGR 12.4% CAGR 8.6% 365.1 375.9 2,031.1 359.3 1,742.0 1,715.8 290.4 303.7 277.2 1 322 9 1,322.9 1,404.6 1 271 6 1,271.6 2007 2008 2009 2010 2010P 2011 2007 2008 2009 2010 2010P 2011 Includes Vital Jugos Does no
Slide 6: Consolidated Overview (2Q 2012)
Consolidated Overview (2Q 2012) REVENUES EBITDA (nominal million CLP) (nominal million CLP) 234,470 32,393 30,768 209,281 2Q 2011 2Q 2012 2Q 2011 2Q 2012 TOTAL VOLUME (million unit cases) 118 4 118.4 107.7 2Q 2011 2Q 2012 6
Slide 7: Summary
Summary (December 31, 31 2011) Rio de Janeiro & Espirito Santo Extension: 90 thousand Km2 Population: 17.6 million Total volume: 205.1 million UCs Metropolitan M t lit Region, R i San Antonio & Cachapoal B il Brazil Extension: 24 thousand Km2 Population: 7.7 million T t l volume: Total l 157 157.8 8
Slide 8: Regional Diversification
Regional Diversification (December 31, 31 2011) B il 41% Brazil B il 45% Brazil B il 43% Brazil Chile 31% Chile 31% Chile 39% Argentina 28% Argentina 24% Argentina 18% Total Volume Total Revenues EBITDA 501 million unit cases 2.0 billion USD 376 million USD 8
Slide 9: Argentina
Argentina Santa Fe Córdoba San Juan Entre Ríos Mendoza San Luis In Argentina Company has a License Agreement with The Coca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non- soft drink beverages. In accordance with the agreement we have the right
Slide 10: Argentina
Argentina Santa Fe Córdoba San Juan Entre Ríos Mendoza San Luis We operate 1 production facility located in Montecristo, Montecristo Córdoba with a total of 8 lines. Average utilization capacity for the year 2011 was 59.9%. Additionally, it operates 1 production facility for juices and other product
Slide 11: Argentina Market Structure
Argentina Market Structure Format Mix – Soft Drinks Market Share Soft drinks 57.3% Non-Returnables 52% Total 39.3% Multi Serving 89% Returnables 47% Juices & Others 19.7% Single Serving 11% Waters 10.5% Post Mix 1% Volume Mix Channel Mix – Soft Drinks Per Capita Consumption (8 oz. bottles) Mom & Pop
Slide 12: Argentina Brand Portfolio
Argentina Brand Portfolio Soft drinks Juices & Others Waters 12
Slide 13: Argentina Volume Growth
Argentina Volume Growth (MUCs) (December 31, 2011) Total Volume 87 8.7 CAGR 4.7% 1.9 6.7 3.0 10.5 1.7 10.3 9.6 9.8 Juices, Waters & Others CAGR 50.4% 9.8 Diet Soft Drinks CAGR 1.7% 1 7% Regular Soft Drinks CAGR 3.5% 119.1 103 8 103.8 109 9 109.9 108 3 108.3 108 6 108.6 2007 2008 2009 2010 2011 13
Slide 14: Argentina Financial Highlights
Argentina Financial Highlights (Nominal MUSD) (June 30, 2012) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2011 1Q11 1Q12 2Q11 2Q12 Sales Volume (MUC) 115.3 122.0 120.9 120.9 125.2 138.3 36.4 41.6 29.2 31.6 Net Sales 252.1 321.7 315.7 311.8 363.2 479.9 116.0 156.0 97.3 122.2 Operating Income 26.2 34.8
Slide 15: Brazil
Brazil Espirito Santo Rio de Janeiro In Brazil the Company has a License Agreeement with TheCoca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non- soft drink beverages. In accordance with the agreement we have the right to produce and distribute
Slide 16: Brazil
Brazil Espirito Santo We operate 2 production facilities located in Jacarepaguá in the State of Rio de Janeiro and in Vitoria in the State of Espírito Santo with a total of 13 lines. Average utilization capacity for the year 2011 was 75%. Rio de Janeiro The company has 5 Distribution Centers for its
Slide 17: Brazil Market Structure
Brazil Market Structure (Year 2011) Format Mix – Soft Drinks Market Share1 Soft drinks 57.4% Non-Returnables 86% Total 52.1% Multi Serving 74% Returnables 11% Juices & Others 42.8% Single Serving 26% Waters 9.6% Post Mix 3% Volume Mix1 Channel Mix – Soft Drinks Per Capita p Consumption p 1 (8 oz. bo
Slide 18: Brazil Brand Portfolio
Brazil Brand Portfolio Beer eer Soft drinks Juices & Others Waters 18
Slide 19: Brazil Volume Growth
Brazil Volume Growth (MUCs) (December 31, 2011) Total Volume CAGR 4.2% 15.5 21.6 11.6 19.2 17.7 Juices, Waters & Others CAGR 24.8% 8.9 10.5 20.5 23 2 23.2 22 5 22.5 Diet Soft Drinks CAGR -6.5% 6 5% Regular Soft Drinks CAGR 4.0% 167 8 167.8 165 8 165.8 141.7 141.0 153.1 2007 2008 2009 2010 2011 19
Slide 20: Brazil Financial Highlights
Brazil Financial Highlights (MUSD) (June 30, 2012) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2011 1Q11 1Q12 2Q11 2Q12 Sales Volume (MUC) 174.7 174.0 185.3 185.3 202.5 205.1 53.7 57.2 44.9 50.6 Net Sales 543.4 582.5 615.1 606.9 799.3 921.0 245.7 254.1 210.6 201.8 Operating Income 96.6 96.5 112.4 107
Slide 21: Chile
Chile Región ó Metropolitana l San Antonio Cachapoal In Chile the Company has a License Agreeement with TheCoca-Cola Company for the sale of concentrates and beverage basis for certain Coca-Cola soft drinks and non- soft drink beverages. In accordance with the agreement we have the right to produce
Slide 22: Chile
Chile Región ó Metropolitana l We operate the San Joaquín production facility with 8 bottling lines and 1 blowing line. Average utilization capacity for 2011 was 82.0%. Additionally, during the fourth quarter of 2011 2 lines began production at the new bottling facility in Renca. The company has 6 D
Slide 23: Chile Market Structure
Chile Market Structure (Year 2011) Format Mix – Soft Drinks Market Share Soft drinks 69.3% Returnables 61% Total 62.0% Multi Serving 82% Non-Returnables 35% Waters 39.5% Single Serving 18% Juices & Others 35.9% Post Mix 4% Volume Mix Channel Mix – Soft Drinks Per Capita p Consumption p (8 oz. bottle
Slide 24: Chile Brand Portfolio
Chile Brand Portfolio Soft drinks Juices & Others Waters 24
Slide 25: Chile Volume Growth
Chile Volume Growth (December 31, 2011) Total Volume CAGR 3.3% 20.0 23.0 16.8 17.9 14.6 24.5 Juices, Waters & Others CAGR 12.0% 23.0 23.4 24 5 24.5 22.9 Diet Soft Drinks CAGR 0.0% 0 0% Regular Soft Drinks CAGR 2.7% 104.7 105.1 109.2 110.4 99.4 2007 2008 2009 2010 2011 25
Slide 26: Chile Financial Highlights
Chile Financial Highlights ((June 30, 2012) N i l MUSD) Nominal Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 Sales Volume (MUC) 144.4 150.8 152.4 152.4 161.5 152.6 157.8 40.1 44.9 33.5 36.2 Net Sales 482.6 424.4 537.1 488.1 579.5 553.3 630.2 158.8 182.3 138.0 148.3 Opera
Slide 27: Consolidated Financial Highlights (USD)
Consolidated Financial Highlights (June 30, 2012) (Nominal million USD) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 Total Volume ((MUCs)) 441.3 454.6 458.6 458.6 489.2 480.3 501.2 130.3 143.8 107.7 118.4 Net Sales 1,281.3 1,331.3 1,465.4 1,404.6 1,742.0 1,715.8 2,031.1
Slide 28: Consolidated Financial Highlights (CLP)
Consolidated Financial Highlights (June 30, 2012) (Nominal million CLP) Chilean GAAP IFRS 2007 2008 2009 2009 2010 2010P 2011 1Q11 1Q12 2Q11 2Q12 Total Volume (MUCs) 441.3 454.6 458.6 458.6 489.2 480.3 501.2 130.3 143.8 107.7 118.4 Net Sales 636,689 847,301 743,116 785,845 888,714 875,326 982,864 25
Slide 29: Consolidated Balance Sheet
Consolidated Balance Sheet (at June 30, 2012) (Million USD) Cash & Cash Equivalents 90 Current Financial Liabilities 40 Current Assets 311 Other Current Liabilities 258 N currentt A Non Assets t + Oth Others 914 N C Non-Current t Fi Financial i l Liabilities Li biliti 202 Goodwill 104 Other Non-Curr
Slide 30: Dividends and Market Cap
Dividends and Market Cap (as of June 30, 2012) Dividend Distribution Market Cap (million USD) (billion USD) 3.71 150 151 3 42 3.42 146 130 2.99 110 2.36 69 2 25 2.25 1.54 2007 2008 2009 2010 2011 2012 YTD 2007 2008 2009 2010 2011 2012 YTD Total dividends paid out since 2000 = US$1.5 billion Dividend
Slide 31: Merger Andina – Polar
Merger Andina — Polar Catobla >NDINA 31
Slide 32: Transaction overview
Transaction overview Embotelladora Andina S.A. (“Andina”), Embotelladoras Coca-Cola Polar S.A. (“Polar”) and their h i respective i controlling lli groups hhave entered d iinto a M Memorandum d off U Understanding d di to merge Andina and Polar Approved by respective Boards of Directors Subjec
Slide 33: The consolidation of a South American bottling powerhouse
The consolidation of a South American bottling powerhouse Second largest Coke bottler in South America and third largest Coke Largest Coca-Coca bottlers by volume (Bn UCs) bottler in Latin America in terms of volume 646 MUCs sold in last 12 months to December 2011 Population served: 48 milli
Slide 34: Increased scale across the board
Increased scale across the board Volume (MUCs) Revenues (MUS$) 646 2,563 145 22.4% 612 23.2% 501 77.6 % 2 031 2,031 76.8 % Andina Polar Combined Andina Polar Combined Population served (million) Production plants1 10 48 12 25.0% 60.0% 6 36 75.0 % 4 40.0 % Andina Polar Combined Andina Polar Combined
Slide 35: Diversified business profile
Diversified business profile Key figures Chile Brazil Argentina Paraguay 48 million 641 MUCs MUS$2,563 MUS$459 9% 8% 10% 15% 24% 15% 28% 30% 37% 36% 32% 36% 38% 31% 32% 19% Population served Volume LTM 3Q11 Revenues LTM 3Q11 EBITDA LTM 3Q11 35
Slide 36: Multiple sources of value creation
Multiple sources of value creation Estimated synergies of approximately US$25 - 30 million per year Representing approximately 4 4-5% 5% of Polar’s Polar s revenues Achievable within 12-24 months Contiguous territories in Argentina Efficiency and competitive costs from scale gains in p
Slide 37: A unique value creation vehicle
A unique value creation vehicle Leading diversified foot print Current Current AKO PKO #1 KO bottler in Chile shareholders shareholders # 2 KO bottler in Brazil 80.32% 19.68% # 2 KO bottler b ttl ini Argentina A ti Only KO bottler in Paraguay Clear and executable synergies y g p pote
Slide 38: Visit our Website
Visit our Website www.embotelladoraandina.com 38