Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Investor Presentation (November 2020)
23 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's investor presentation, November 2020
Slide 1: November 2020 Investor Presentation
November 2020 INVESTOR PRESENTATION
Slide 2: Anadolu Efes at a Glance
ANADOLUAPPENDIX EFES AT A GLANCE
Slide 3: Anadolu Efes At a Glance
Anadolu Efes At a Glance Europe’s In FY2019; 700 mn 48.4 mhl 5th* 111 mhl consumers Brewing Sales Volume Capacity World’s 21 10th* 23.3bn TL Breweries Largest Sales Revenue 1.5 bn u/c Brewer 26 Bottling 4.1bn TL Bottling Plants Capacity 7th EBITDA Largest Coca-Cola 2.3bn TL Bottler Free Cash Flow 4
Slide 4: Investment Theme
Investment Theme Diversified business model Strategic Partnership with World’s including beer and soft drinks leading FMCG companies; AB InBev & TCCC Strong market positions across all Strong brand portfolio including some of the operations world’s best known brands and strong regional brands Abunda
Slide 5: Ownership Structure
Ownership Structure 100% 50.3% Public 24% 33% BEER OPERATIONS SOFT DRINK OPERATIONS 1.9% -Turkey Beer Operations Public 27.7% -International Beer Operations (EBI) 50% Russia 100% Kazakhstan 43% 50.3% 96.9% Moldova 20.0% 100% Georgia 50% Ukraine 4 5
Slide 6: Anadolu Efes 2019 Financials In a Nutshell
Anadolu Efes 2019 Financials In a Nutshell Volume Revenue EBITDA (BNRI) 111 mhl 23.3 bn TL 3.9 bn TL +1.9% vs PY +21.7% vs PY +31.2% vs PY FCF CWC / Revenue Net Debt / EBITDA (BNRI) 2.3 bn TL -3.7% 1.0x +122% vs PY -4.1pp vs PY -0.6x vs PY 6
Slide 7: Beer Operations
BEER OPERATIONS fs / ee eee oie
Slide 8: Beer Operations At a Glance
Beer Operations At a Glance Turkey Russia Ukraine 28% 32% 63% 51% 45% 57% 95% Kazakhstan Moldova Georgia Represent market shares 1 GlobalData 2019 2 Nielsen, 2019 Strictly Confidential 8
Slide 9: Beer Group Strategic Priorities
Beer Group Strategic Priorities OPERATIONAL FINANCIAL PEOPLE BRANDS DISCIPLINE & CUSTOMERS & EXPANSION & EXCELLENCE STAKEHOLDERS VALUE CREATION CONSUMERS GROWTH Nurturing our Providing Building Achieve Enhancing Building Expanding our talents by choice, great competitive profitable Customer relation
Slide 10: Russian Beer Operations
Russian Beer Operations Russian beer market was almost flat in 2019 & our 01 volumes grew by low-double digits. Became market leader with ~30% market share & clear 02 market leader in Super Premium & Premium segments 03 Successful integration & focus on net revenue growth Focus on premium brands whi
Slide 11: Turkey Beer Operations
Turkey Beer Operations Low per capita consumption of 11 liters* Rich portfolio of local, imported & licensed offering a growth potential brands covering all segments #1 in consumer spending in Food & Beverage Growing population with 1.4% annual category growth rate in 2019 99% penetration in alcohol
Slide 12: Soft Drink Operations
SOFT DRINK OPERATIONS APPENDIX
Slide 13: Strategic Priorities In Core Business to Create Value
Strategic Priorities In Core Business to Create Value… Accelerate Win at the Exercise Financial Win with People Growth Point of Sale Discipline • Full-beverage portfolio • Increase outlet coverage • Productivity savings • Integrated Talent Strategy • Revenue Growth • Increase cooler penetration • Wo
Slide 14: Coca-Cola Icecek in a Nutshell
Coca-Cola Icecek in a Nutshell • 10 countries, ~400 mn people KAZAKHSTAN • 26 production plants with 126 lines • 1.5 bn UC(1) annual production capacity AZERBAIJAN KYRGYZSTAN • ~780 thousand sales points TURKEY TURKMENISTAN TAJIKISTAN • 1.3 bn UC sales volume SYRIA IRAQ • $ 2.2 bn revenue & $ 403 mn
Slide 15: Adapting to New Normal & Recent Performance
ADAPTING TO NEW NORMAL & APPENDIX RECENT PERFORMANCE
Slide 16: Adapting to new normal
Adapting to new normal… Post Crisis Crisis Initial Measures Management & Management Adaptaton • Leverage learnings to adapt to new normal • Ensure health & safety • Scenario planning • Reassess brand & SKU strategy • Remote working & hygiene rules • Revised demand & production planning • Reconfigure
Slide 17: Robust financial performance in 3Q
Robust financial performance in 3Q… VOLUMES Volume growth driven by both business segments 3Q 9M International beer volumes grew by 6.2%; mostly driven by Russia +2.5% -2.7% Turkey beer volume showed a significant improvement compared to 1H REVENUE Price increases & revenue growth management
Slide 18: September 2020 – Income Statement
September 2020 – Income Statement VOLUME NET REVENUE EBITDA BNRI EBITDA BNRI % +47.8% +22.0% ANADOLU 3Q 9M 3Q 9M 3Q 9M EFES 2,088 3,184 3,885 1,413 mTL 32.8 mhl 82.4 mhl 8,740 mTL 20,324 mTL 23.9% 19.1% +2.5% vs. PY -2.7% vs. PY +24.2% vs. PY +12.5% vs. PY +3.8pp vs. PY +1.5pp vs. PY 3Q19 3Q20 9M19
Slide 19: International driving volume growth despite challenges
International driving volume growth despite challenges… TURKEY BEER SALES VOLUME INTERNATIONAL BEER SALES VOLUME 4.1 23.5 24.5 1.7 1.6 3.5 8.4 8.9 mhl mhl 3Q2019 3Q2020 9M2019 9M2020 3Q2019 3Q2020 9M2019 9M2020 Turkey Operations International Operations 3Q volumes significantly improved vs 1H, dow
Slide 20: Sparkling category continued to be strong
Sparkling category continued to be strong… Soft Drinks Sales Volume Volume Breakdown* By Country Turkey International Azerbaijan Others Iraq 4% 4% 9% 383 390 1,004 957 Turkey Kazakhstan 12% 42% 207 221 549 551 m u/c 177 170 455 406 28% 3Q2019 3Q2020 9M2019 9M2020 Pakistan *Breakdown on combined basi
Slide 21: Balance Sheet & Risk Management
Balance Sheet & Risk Management Beer G Net Debt / EBITDA @ 1.3x (9M2019: 1.3x) AEFES Net Debt / EBITDA @ 0.8x (9M2019: 1.2x) Record low core working capital Average debt maturity is 1.7 years Currency 97% Hedged (2020) Aluminium 95% Hedged (2020) 67% of cash held in hard currency Reducing FX debt ex
Slide 22: 2020 Expectations
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Slide 23: 2020 Beer Group Outlook Unchanged
2020 Beer Group Outlook Unchanged… • Being cautious for the rest of the year due to accelerating number of COVID-cases across the board • Reiterating our 2020 beer group outlook EBITDA Capex / Free Cash Volumes Margin Net Sales Flow Decline by mid- EBITDA margin Will not exceed Positive Free single