Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — FY2018 Earnings Presentation
22 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Mar 1, 2019
Slide 1: FY2018 Conference Call Presentation
FY2018 CONFERENCE CALL PRESENTATION 01.03.2019
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: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT Can Çaka CEO & Beer Group President Strictly Confidential 3
Slide 4: 2018 Snapshot
2018 Snapshot Successful closing of the merger in Russia Strong #2 player with 28% market share Brand portfolio covering all segments in particular strong position in the premium and super premium segments Synergies already started to be extracted Expanded and stronger brand portfolio in Turkey BUD
Slide 5: 4Q2018 Highlights
4Q2018 Highlights THROUGHOUT THIS PRESENTATION ‘PROFORMA’ MEANS FIGURES INCLUDING ABI RUSSIA AND ABI UKRAINE STARTING FROM APRIL 1ST. Volume growth of 1.9%* Revenue up by 30.6%* • Growth in both beer and soft drinks operations • Higher volumes • Price increases • Positive currency translation impact
Slide 6: Consolidated results are in line with guidance
Consolidated results are in line with guidance… EBITDA (BNRI) & SALES VOLUME NET SALES REVENUE EBITDA (BNRI) Margin 17.1% 16.5% 106.5 18,689.7 101.7 14,587.1 3,089.8 2,492.2 mn TL mn TL mhl FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Proforma Proforma Proforma Turkey Beer 5% 10% 13% Share of* Internat
Slide 7: Strong international volumes
Strong international volumes BEER GROUP TURKEY BEER INTERNATIONAL BEER 5.8 5.7 25.6 26.1 31.5 31.8 5.4 5.3 Domestic mn TL mhl 0.4 0.4 Export FY2017 FY2018 FY2017 FY2018 FY2017 FY2018 Proforma Proforma EBI volumes up by 5.3% in 4Q2018 & up by 2.0% y-o-y on a Total beer group sales volume up by 3.
Slide 8: Another year with quality growth in soft drinks
Another year with quality growth in soft drinks… SALES VOLUME VOLUME BREAKDOWN* BY COUNTRY 1,314.9 Others Iraq 7% 1,237.5 8% Kazakhstan 10% Turkey 664.5 International m u/c 49% 616.5 621.0 650.5 Turkey Pakistan 26% *Breakdown is on a combined basis Consolidated sales volume growth of 0.6% in 4Q2
Slide 9: Financial Overview
FINANCIAL OVERVIEW N. Orhun Köstem Chief Financial Officer
Slide 10: Robust performance in a transformational year
Robust performance in a transformational year… ANADOLU EFES TOTAL BEER TURKEY BEER EBI 28% 18,690 Net Sales 14,587 30% 8,067 35% 6,195 18% 4,576 6,158 1,588 1,870 FY2017 Proforma FY2018 FY2017 Proforma FY2018 FY2017 FY2018 FY2017 Proforma FY2018 Margin: 38.4% 37.4% 45.7% 42.9% 59.2% 56.4% 40.8% 38.5
Slide 11: Continued to generate strong Free Cash Flow
Continued to generate strong Free Cash Flow… Beer Group Anadolu Efes 107 -240 2,999 -1,504 (mn TL) -308 1,054 EBITDA Change in Income Taxes & CAPEX, net Net Financial FCF Working Capital Employee Income Benefits Paid /(Expense) 11
Slide 12: Input costs & FX exposures are tightly monitored
Input costs & FX exposures are tightly monitored… • Cash flow hedge via designation • ~ 90%* of FX exposure in COGS&OPEX hedged in Turkey for 2019 Hedged • ~ 100% hedged in Russia & Ukraine positions for 70%** 100% 2019* • Derivative contracts to hedge LME Aluminium Prices commodities 1,903 1,899 Tu
Slide 13: Balance Sheet FX Exposure Mitigated
Balance Sheet FX Exposure Mitigated... Hedged majority of outstanding debt via various instruments; both at Anadolu Efes & Beer Group level December 2017 December 2018 Local Currency 58% of our debt is hedged Anadolu Efes EUR 1% No hedge Unhedged through 22% Net Investment Hedged 42% 58% Hedge and C
Slide 14: Leverage ratios at healthy levels despite currency devaluations
Leverage ratios at healthy levels despite currency devaluations… Net Debt / EBITDA (BNRI) Maturity Schedule 522 Anadolu Efes Consolidated 500 1.5 -62% of cash is hold as hard currency 1.5 M USD 268 times -85% of debt is in hard currency 168 141 110 (58% of our debt is hedged through Net Investment H
Slide 15: Financial priorities are on track
Financial priorities are on track… Productivity P&L & FCF Management Generation Debt Risk Management Management Cash Management 15
Slide 16: Closing Remarks
CLOSING REMARKS Can Çaka CEO & Beer Group President
Slide 17: 2019 Guidance
2019 Guidance • Cautious volume outlook on sales volumes • Efficient revenue management to offset volume pressures resulting in solid growth in all business lines • Slight improvement in both Beer & Soft Drink EBITDA margins to result in slight improvement in AEFES consolidated EBITDA margin • Stron
Slide 18: Q&A Session
Q&A SESSION Can Çaka N. Orhun Köstem CEO & Beer Group President Chief Financial Officer
Slide 19: Appendix
APPENDIX
Slide 20: Detailed 2019 Guidance
Detailed 2019 Guidance Our 2019 guidance reflects reported financials where 2018 numbers include 9-months ABI-Efes impact and 2019 expected numbers include 12-months. Reference to “proforma” means 12 month ABI-Efes impact in 2018. REPORTED PROFORMA SALES VOLUME Consolidated low to mid-single digit g
Slide 21: Gross & Net Debt
Gross & Net Debt Anadolu Efes Consolidated Beer Group FY2017 FY2018 FY2017 FY2018 8,509.5 9,228.7 TOTAL FINANCIAL DEBT (m TL) TOTAL FINANCIAL DEBT (m TL) TOTAL CASH & EQUIVALENTS (m TL) 2,518.8 4,285.2 5,498.2 4,791.2 TOTAL CASH & EQUIVALENTS (m TL) NET DEBT (m TL) 1,606.3 2,480.3 3,011.3 4,437.5 NE
Slide 22: FX Rates
FX Rates FY2017 FY2018 Δ% AVG 3.64 4.83 32.5% USD/TL PE 3.77 5.26 39.5% AVG 4.12 5.68 38.0% EUR/TL PE 4.52 6.03 33.5% AVG 16.01 12.98 -18.9% TL/RUB PE 15.27 13.21 -13.5% AVG 89.47 71.41 -20.2% TL/KZT PE 88.11 73.03 -17.1% AVG 7.30 5.63 -22.8% TL/UAH PE 7.44 5.26 -29.3% AVG 5.07 3.48 -31.4% TL/MDL PE
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