Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES

Anadolu Efes Biracilik Ve Malt Sanayii A.s — H1 2016 Earnings Presentation

28 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Aug 17, 2016

  1. Slide 1: Beer Operations 2Q2016 & 1H2016 Financial Results Conference Call

    BEER OPERATIONS 2Q2016 & 1H2016 FINANCIAL RESULTS CONFERENCE CALL ROBIN GOETZSCHE - BEER GROUP PRESIDENT & CEO ONUR ÇEVİKEL - CFO August 17, 2016

  2. 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

  3. Slide 3: General Overview & Operating Performance

    ROBIN GOETZSCHE BEER GROUP PRESIDENT & CEO GENERAL OVERVIEW & OPERATING PERFORMANCE

  4. Slide 4: Key Highlights on Consolidated Performance – 1H2016

    Key Highlights on Consolidated Performance – 1H2016 Volume flat vs. 1H2015 (excl. Ukraine up by 0.4%)  3.6% volume growth in soft drink business  Recovery in beer volumes in the 2nd Q versus previous Q Revenue slightly underperformed volume decline  Despite local currency price increases in all b

  5. Slide 5: Consolidated Performance

    Consolidated Performance SALES VOLUME NET SALES REVENUE EBITDA (BNRI)* 17.9% 17.6% -0.2% -1.0% -2.2% 5,074.7 5,022.0 mhl mn TL 42.8 42.7 mn TL 906.2 886.0 1H2015 1H2016 1H2015 1H2016 1H2015 1H2016 Numbers may not add up to 100% due to rounding BREAKDOWN** 7% 14% 20% 16% 18% 16% 68% 77% 64% Turkey Be

  6. Slide 6: Soft Drinks Volume Development

    Soft Drinks Volume Development Volume Breakdown by Country 561.6 3.6% 581.9 Other Kazakhstan 7% Iraq 8% 4.7% 8% 276.8 289.7 m uc Pakistan 2.6% Turkey 27% 284.7 292.2 50% 1H2015 1H2016 Turkey International  Turkey delivered 2.6% volume growth in 1H2016  International operations’ volume was up by 4.

  7. Slide 7: Beer Volume Development

    Beer Volume Development Total beer group sales volume at 9.7 mhl 10.9 (11.2%) 9.7 Russia performed ahead of expectations 3.4 (13.7%) due to; 2.9  More stable macro environment mhl (10.1%) 7.6 6.8  Relative affordability of beer  Postponement of PET size restrictions 1H2015 1H2016  Favorable weat

  8. Slide 8: Turkey Beer Operations

    Turkey Beer Operations New launches including; SALES VOLUME  Efes Pilsen Pastörsüz (14.5%)  Efes Brewmaster Series Continued to focus on; 3.1 2.7 mhl  Execution  Sales & Marketing investments  Working capital management and FCF 1H2015 1H2016 VOLUME SHARE 0.1% 32% 68% Efes TURKEY Tuborg Other 8

  9. Slide 9: International Beer Operations

    International Beer Operations (10.1) (7.2%) excl. Ukraine 7.6 6.8 mhl 1H2015 1H2016 Price increases in all operations and positive geographical & brand mix led to higher revenue per liter on LC basis EBITDA was up 145 bps y-o-y in 1H2016, benefitting from,  Tightly controlled opex  Cost optimizati

  10. Slide 10: Russia

    Russia Beer market decline of mid-single digits* in 1H2016 vs 1H2015 (better than initial expectations) Managed to maintain share while improving margins as a result of;  Revenue management  Cost control Majority of the growth coming from priority brands due to rounding - Numbers may not add up to

  11. Slide 11: Beer Group Strategy

    RANDS XECUTION FFICIENCY ELATIONS ny Wy "

  12. Slide 12: Financial Overview

    ONUR ÇEVİKEL CFO FINANCIAL OVERVIEW

  13. Slide 13: Anadolu Efes Consolidated Performance

    Anadolu Efes Consolidated Performance (mn TL) 1H2015 1H2016 Change % Volume (mhl) 42.8 42.7 -0.2% Net Sales 5074.7 5022.0 -1.0% Gross Profit 2159.6 2036.6 -5.7% EBIT (BNRI) 524.9 470.5 -10.4% EBITDA (BNRI) 906.2 886.0 -2.2% Net Income -39.4 232.2 689.0% Margins Change (bps) Gross Profit 42.6% 40.6%

  14. Slide 14: Beer Group Performance

    Beer Group Performance Turkey Beer International Beer Beer Group (TL mn) (USD mn) (TL mn) 1H2016 vs 1H2015 1H2016 vs 1H2015 1H2016 vs 1H2015 Volume (mhl) 2.9 -13.7% 6.8 -10.1% 9.7 -11.2% Net Sales 686.5 -9.6% 305.5 -26.1% 1591.7 -13.0% Gross Profit 400.8 -14.5% 141.0 -28.1% 821.2 -15.9% EBIT (BNRI)

  15. Slide 15: Beer Group Free Cash Flow

    Beer Group Free Cash Flow Beer Group Free Cash Flow (TL mn) 1H2015 1H2016 EBITDA 367.8 306.4 Change in Working Capital -103.1 -228.5 Income Taxes & Employee Benefits Paid -36.5 -26.0 CAPEX, net -132.3 -107.7 Net Financial Income /(Expense) 69.1 -3.4 FCF 165.1 -59.1 Other investing activities (Acq.,

  16. Slide 16: Balance Sheet Flexibility

    Balance Sheet Flexibility Net Debt / EBITDA (BNRI) 1H2015 2015YE 1H2016 Anadolu Efes Consolidated 2.4 2.0 2.1 Beer Group 1.9 1.6 2.1 BEER 1H2015 1H2016 AEFES 1H2015 1H2016 TOTAL FINANCIAL DEBT m TL 2,173 2,157 TOTAL FINANCIAL DEBT m TL 5,299 5,332 TOTAL CASH & EQUIVALENTS m TL 793 815 TOTAL CASH & E

  17. Slide 17: Maturity Schedule

    Borrowing Mix & Liquidity Profile  Easily manageable debt repayment schedule  Average maturity of debt for;  Beer Group is app. 4.7 years and  Anadolu Efes is app. 3.5 years 706 651 Maturity Schedule 500 500 201 153 111 90 123 110 120 120 88 35 55 37 37 43 2016 2017 2018 2019 2020 2021 2022 2023

  18. Slide 18: Interest Breakdown

    Interest Breakdown Significant portion of debt is fixed, minimized interest rate risk Beer Group Anadolu Efes 1H2015 1H2016 1H2015 1H2016 20% 23% 30% 30% 70% 70% 77% 80% Fixed Floating Fixed Floating 18

  19. Slide 19: Financial Income/Expense Breakdown

    Financial Income/Expense Breakdown Financial Income / (Expense) Breakdown 1H2015 1H2016 Interest income 42.8 35.7 Interest expense -108.1 -101.5 Foreign exchange gain /(loss) -424.4 69.9 Other financial expenses (net) -12.9 -9.0 Fain/(loss) on derivative transactions -0.7 -14.0 Net Financial Income

  20. Slide 20: Anadolu Efes Consolidated Free Cash Flow

    Anadolu Efes Consolidated Free Cash Flow Anadolu Efes Free Cash Flow (TL mn) 1H2015 1H2016 EBITDA 895.6 883.7 Change in Working Capital -414.5 -331.6 Income Taxes & Employee Benefits Paid -94.0 -43.7 CAPEX, net -645.1 -376.4 Net Financial Income /(Expense) 90.9 -68.4 FCF -167.0 63.5 Other investing

  21. Slide 21: Financial Priorities

    Financial Priorities Sustain consolidated cash flows through;  focus on working capital optimization  optimized capex policy  stick to tight balance sheet management Deleveraging Efficiency improvements via savings Manage impact of F/X volatility on operations Commitment to Investment Grade Ratin

  22. Slide 22: Closing Remarks

    ROBIN GOETZSCHE BEER GROUP PRESIDENT & CEO CLOSING REMARKS

  23. Slide 23: Long Term Key Priorities

    Long Term Key Priorities Continue to generate value by margin improvement and FCF generation through our priorities; o capitalizing on our strong brand portfolios o to achieve optimal brand & SKU mix o excelling in execution o focus on quality market share o strong cash flow generation with special

  24. Slide 24: 2016 Outlook

    2016 Outlook Turkey beer market decline mid-single digit (prev: decline low-single digit) Efes Turkey volume decline mid-to-high single digit (prev: flattish) BEER GROUP Russian beer market decline low-to-mid-single digit (prev: decline inline with last year) EFES RUS volume outperform the market To

  25. Slide 25: Q&A Session

    Q&A SESSION

  26. Slide 26: Appendix

    ANADOLU EFESi ‘J

  27. Slide 27: Upcoming IR Events

    Upcoming IR Events September;  HSBC EMEA & LATAM 2016 Conference - London  J.P. Morgan Credit and Equities Emerging Market Conference - London 27

  28. Slide 28: F/X Rates

    F/X Rates 1H2015 1H2016 Δ% AVG 2.56 2.92 14.0% USD/TL PE 2.69 2.89 7.7% AVG 2.86 3.26 13.9% EUR/TL PE 2.98 3.20 7.5% AVG 57.40 70.26 22.4% USD/RUB PE 55.52 64.26 15.7% AVG 185.25 346.11 86.8% USD/KZT PE 186.20 338.87 82.0% AVG 21.25 25.54 20.1% USD/UAH PE 21.02 24.85 18.3% AVG 18.07 19.80 9.6% USD/M

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