Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes — Q1 2014 Earnings Presentation
42 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, May 9, 2014
Slide 1: Investor Presentation
INVESTOR PRESENTATION Strictly Confidential 1 May 9, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain certain forward-looking statements concerning our future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available
Slide 3: A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth
A Total Beverage Company Refreshing 660mn Consumers With A Strong History of Growth... • A world class brand portfolio • In markets with low per capita consumption -Turkey: 11 litres of beer, 45 litres of sparkling beverages per capita -Kazakhstan: 30 litres of beer, 34 litres of sparkling beverages
Slide 4: Anadolu Efes' Structure
Anadolu Efes’ Structure SABMiller Harmony Ltd. 24.0% Yazıcılar Holding 23.6% Özilhan Sınai Yatırım 13.5% Anadolu Endüstri Holding 6.0% Public 33.0% ANADOLU EFES 50.3% BEER OPERATIONS SOFT DRINK OPERATIONS 25.6% COCA-COLA İÇECEK1 TURKEY BEER OPERATIONS Public (CCI) INTERNATIONAL BEER OPERATIONS COCA-
Slide 5: Operating Model
Operating Model Beverage Group President and Anadolu Efes CEO Damian Gammell Coca-Cola İçecek A.Ş. CEO Burak Başarır Deputy CEO of Beverage Group Efes Turkey Efes Russia Eastern Europe and CFO Hüseyin Akın MD MD CIS Group MD Turkey GM Chief Financial Officer Efes Kazakhstan MD Central Asia Supply Ch
Slide 6: Where do we operate
Where do we operate Refreshing around 660mn consumers in markets with low per capita consumption... • Breweries • Soft Drink Plants Strictly Confidential 6
Slide 7: Our Group Strategy
Our Group Strategy Maintain our focus on beer and soft drinks brands Leverage strategic alliances to expand into new markets, categories and brands Operate through two distinct operating companies to maintain focus, build capability and support investment In our core beer markets, restore ma
Slide 8: Consolidated Financial Performance - 1Q2014
Consolidated Financial Performance- 1Q2014 Sales Volume Breakdown* 82.5 85.6 Volume* Turkey Beer 8% International Beer mhl 21% 44.8 38.9 43.2 37.8 Soft Drinks 71% 16.2 17.8 Sales *On aRevenue Breakdown* combined basis 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 Beer Soft Drinks Revenue* Turkey 9,195
Slide 9: Beer Operations
Beer Operations Strictly Confidential 9
Slide 10: The Leading Brewer in CIS and Turkey
The Leading Brewer in CIS and Turkey Europe’s 5th largest and the World’s 10th largest brewer in terms of sales volume* with No.1 position in most of the markets in which we operate Largest brewer by sales volume in Turkey(1), Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales vol
Slide 11: Breakdown Of Pure Alcohol Consumption
Breakdown Of Pure Alcohol Consumption 100% 14% 14% 17% 90% 20% 22% 19% 26% 25% 24% 33% 80% 38% 51% 70% 20% 25% 38% 47% 21% 30% 41% 9% 60% 34% 10% 36% 50% 12% 40% 30% 60% 58% 53% 56% 48% 48% 51% 20% 42% 43% 39% 39% 37% 10% 0% Austria Czech Rep. Denmark Finland Germany Ireland Netherlands Poland Spain
Slide 12: Per Capita Beer Consumption in Operating Markets & Selected Countries
Per Capita Beer Consumption in Operating Markets & in Some Selected Countries 11% Georgia 0.9 mhl 08% CAGR Growth 2008 - 2013 (%) Chi na 544 mhl 05% Turkey 02% Pol a nd 8.7 mhl Moldova 38 mhl 1.2 mhl -01% .. Uzbekistan 20.. 40.. 60.. 80.. 100.. 120.. 140.. 160.. Ukraine USA 232 mhl 2.4 mhl Germa ny
Slide 13: Long Term Beer Group Strategy
Long Term Beer Group Strategy - It’s all about the consumer and delivering Brands choice, innovation and brand love - Great distribution and activation at the point of sale Execution - Lean and efficient organisation throughout the supply Efficiency chain and RTM - with our employees, governments, s
Slide 14: Beer Group's Strategy for 2014 - 2016
Beer Group’s Strategy for 2014 - 2016 Expand our brand and package portfolio in the premium and mainstream segments in all countries Leverage our SABMiller alliance to provide global and regional brand power Reduce the cost base through capacity reduction, procurement savings and opex reductio
Slide 15: Key Enablers For 2014-2016
Key Enablers For 2014-2016 -The best brands -Lean and efficient manufacturing -Strong route to market -Market leading capabilities in marketing and sales -Superior customer relationship -Healthy balance sheet -Working with best people Net Debt / EBITDA Anadolu Efes 2.1 Consolidated Strictly Confiden
Slide 16: Turkey Beer Operations
Turkey Beer Operations Strictly Confidential 16
Slide 17: Developments in Turkey Beer Operations
Developments in Turkey Beer Operations Historical Volume Performance* The downward trend in volumes decelerated in 8.5 8.5 8.5 8.6 1Q2014 compared to 4Q2013, despite significantly 8.4 mhl 7.3 higher sales prices, also contributed by a more favorable base impact in 1Q2014 1.6 1.5 2008 2009 2010 *Sa
Slide 18: Historical Volume and Sales Price Development
Historical Volume and Sales Price Development Shelf price rose further to 4.3TRL as of 9.2 5 8.5 8.5 8.5 8.4 8.6 January 2014... 8.2 4.3 4.5 7.6 7.1 7.1 7.3 50 cl returnable bottle price 7.2 6.8 4 6.4 6.2 5.9 6.0 3.5 5.7 3.7 mhl 5.2 3.2 3 4.2 2.8 2.5 3.2 2 2.1 2.0 1.9 2.2 1.7 1.8 1.5 1.4 1.2 1.3 1 0
Slide 19: Turkey Beer Operation's Strategy
Turkey Beer Operation’s Strategy - Efes Malt, Bomonti Brands - Premiumization strategy - Ekomini Project Execution - - Cooler placements On-trade outlet development - Minimize opex Efficiency - - Cost reduction initiatives Procurement initiatives - Strong focus on building people Relationship capabi
Slide 20: Focus on Brands
Focus on Brands Through a portfolio for all occasions... Miller Beck’s Peroni Marmara Gold Mariachi Duvel 100% brand awareness for Efes Efes Pilsen Marmara Kırmızı Exports to more than 70 countries # 1 in consumer spending in Food & Efes Pilsen Fıçı M34 Beverage category – 8.6% as of Bomonti Efes Pi
Slide 21: Efficiency & Relationship
Efficiency & Relationship EFFICIENCY RELATIONSHIP Minimize costs through procurement Proactive relationships with governments savings Working with best people Minimize opex Win-win relationship with suppliers and RTM optimization business partners Increase cooperation with strategic pa
Slide 22: Turkey Beer Financial Performance
Turkey Beer Financial Performance Volume* Revenue 8.5 8.5 1,604.7 8.5 8.6 1,517.5 8.4 1,264.2 million TRL mhl 1,182.1 1,293.4 1,390.8 7.3 2007 723.2 1.6 1.5 354.4 339.3 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 2008 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 854.7 *Sales volume including exports
Slide 23: International Beer Operations
International Beer Operations Strictly Confidential 23
Slide 24: International Beer Operations
International Beer Operations Strong presence in the CIS region with operations in 5 countries Largest brewer by sales volume in Kazakhstan(1), Moldova(2), Georgia(3) 3rd largest brewer by sales volume & 2nd largest by value in Russia(1), the World’s 4th largest beer market(4) 4th largest brew
Slide 25: Significant challenges in Russia
Significant challenges in Russia Volume Development of EBI Breakdown of Sales Volume 1Q2014 19.8 18.2 Others 35% 15.7 mhl 14.1 14.6 13.6 Russia 65% 3.3 3.7 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 reported In 1Q2014, sales volume of EBI rose by 11.3% y-o-y; • In Russia, our volume performance was
Slide 26: Challenging operating environment in Russia
Challenging operating environment in Russia Market Share by Volume* – 1Q2014 Other 21.8% Carlsberg 37.0% EFES RUS 13.9% Heineken InBev 13.0% 14.3% * Shares of Carlsberg and INBEV include Ukrainian brands ** Efes Rus share is calculated as sum of Efes Russia and SABMiller shares Numbers may not add u
Slide 27: Opportunities in the world's 4th largest beer market
Opportunities in the world’s 4th largest beer market -Kozel leading the premium segment Brands -Relaunches of Zolotoya Bochka, Stariy Melnik, Beliy Medved -New packages launches for Gold Mine -Resumed shipments to key accounts Execution -Increasing distribution in modern trade -Network optimization
Slide 28: Other Operating Countries
Other Operating Countries Market Share by Volume Shymkent Pivo InBev 5.5% 0.7% #4 brewer Kazakhstan Other Capacity: 2.9 mhl Ukraine 7.6% #1 brewer Carlsberg 27.5% EBI Capacity: 2.6 mhl EBI entered the Ukranian beer market 58.6% following the acquisition of the SABMiller’s Ukrainian beer operations i
Slide 29: Strongly Positioned in All Markets
Strongly Positioned in All Markets SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Kazakhstan Miller Efes Bavaria Beliy Medved Grolsch V. Kozel Karagandinskoe Lubitelskoe Pilsner Urquell Amsterdam Navigator Kruzhka Svezhego MEGA PREMIUM SUPER PREMIUM PREMIUM MAINSTREAM ECONOMY Kozel Efes Pilsen Zolotoya Bo
Slide 30: International Beer Financial Performance
International Beer Financial Performance Volume Revenue 19.8 18.2 1,585.1 million USD 15.7 1,300.5 mhl 14.1 14.6 13.6 1,038.0 976.8 976.0 857.3 - 2007 723.2 3.3 3.7 2008 854.7 237.9 237.8 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 reported 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 2009 916.6 EBIT
Slide 31: Agenda
Agenda Strictly Confidential 31
Slide 32: Soft Drinks Business Strategy
Soft Drinks Business Strategy Accelerate revenue and margin Grow the sparkling category growth in international overall and per capita in Turkey operations Improve balance sheet health every year, with commitment to Continue to build and enhance a highly conservative financial our reputation structu
Slide 33: CCI at a glance
CCI at a glance Operating in one of the world’s most dynamic and exciting markets A gateway to Turkey, Pakistan, Central Asia and The Middle East Serving close to 370 million people; Shareholder Structure 60% of our population is below 30 years of age 2004-2013 CAGR: Sales volume: 16% Net Sales:
Slide 34: Future Opportunities
Future Opportunities Sparkling Beverage Consumption vs. GDP (2012) Per Cap Consumption (liters) Mexico 150 Argentina USA Germany 100 Spain UK Kuwait Saudi Arabia U.A.E. Bulgaria #4 South Africa Hungary Oman 50 Jordan Poland Iraq Greece Turkey Turkmenistan Italy Kazakhstan Russia Kyrgyzstan Egypt Aze
Slide 35: Geographic and Category Split of Business (1Q2014)
Geographic and Category Split of Business (1Q2014) Volume split (uc) - Consolidated Volume split (uc) – Consolidated * Non-ready-to-drink Strictly Confidential 35 35
Slide 36: Strong Brand Positioning and Offering in Our Key Markets
Strong Brand Positioning and Offering in Our Key Markets Strictly Confidential 36 36
Slide 37: Soft Drinks Financial Performance
Soft Drinks Financial Performance International 484.2 568.5 573.6 Volume 546.8 Turkey 494.4 420.8 438.9 367.6 Volume mu/c mu/c 215.0 171.0 116.1 124.5 113.0 147.6 99.1 81.7 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 2008 2009 2010 2011 2012 2013 1Q2013 1Q2014 Revenue 2007 723.2 million TRL 5,186.4
Slide 38: FY2014 Outlook
FY2014 OUTLOOK Strictly Confidential 38
Slide 39: 2014 Outlook
2014 Outlook • In the first quarter of 2014, our volume and financial performance was better than our expectations. This proved our confidence on the results of the initiatives we have taken. However, the first quarter is a small one and it may not be a good indicator for the full year performance.
Slide 40: Summary
Summary Strictly Confidential 40
Slide 41: Summary
Summary • Despite some unexpected challenges, volume & financial performance in 1Q2014 was better than our expectations Strong growth was achieved in Turkey and international soft drink operations The downward trend in beer volumes decelerated in Turkey International beer operations made a sol
Slide 42: Strictly Confidential
Strictly Confidential 42