20 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Feb 26, 2021
Slide 1: Anadolu Efes FY2020 Conference Call Presentation
ANADOLU EFES FY2020 CONFERENCE CALL PRESENTATION 26.02.2021
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 3
Slide 4: Excellent track record of profitable growth with strong cash generation
Excellent track record of profitable growth with strong cash generation… TOTAL VOLUME REVENUE EBITDA & FREE CASH FLOW mhl TL bn Margin % TL mn CAGR CAGR CAGR CAGR +21.2% +23.6% +36.4% 19.1% 17.3% +3.7% 103.5 26.7 5,098 3,012 86.1 10.2 1,766 638 2015 2020 2015 2020 2015 2020 2015 2020 2020 2020 2020
Slide 5: Demonstrated by exceptional results in a challenging year
…demonstrated by exceptional results in a challenging year… Robust topline growth; with Record-high Free Cash Flow healthy rev/hl increase Generation EBITDA margin expansion - Record-low working capital highest level in 8 years Zero Based Spending & further Healthy leverage ratio below 1.0x cost cut
Slide 6: Russia maintaining its growth momentum in 2020
…with Russia maintaining its growth momentum in 2020… INTERNATIONAL BEER SALES VOLUME RUSSIA MARKET SHARE * Volume Share Value Share +1.3 pp +1.8 pp 30.8 31.6 29.2% 29.6% 28.0% 27.8% 7.3 7.1 2019 2020 2019 2020 mhl 27.1% 27.7% 27.3% 26.6% +0.1 pp -1.1 pp 4Q2019 4Q2020 FY2019 FY2020 AB InBev Efes 2nd
Slide 7: Driven by our winning brand portfolio
…driven by our winning brand portfolio… Focus on Global Brands Super Premium & Premium Increasing share in Growth Growth Non-Alcohol Beer RUSSIA Expanding Non-Alcohol Beer Development of Non-Beer Growth in Global Brands Portfolio Segment UKRAINE 7
Slide 8: Weak quarter in Turkey due to tighter restrictions
…despite a weak quarter in Turkey due to tighter restrictions… TURKEY BEER SALES VOLUME 5.4 4.6 1.3 mhl 1.1 4Q2019 4Q2020 FY2019 FY2020 Turkey Beer Operations First half of 4Q more resilient volumes Sales limitations & weekend lockdowns put pressure on the second half of 4Q Multipack offerings
Slide 9: Solid growth achieved in soft drinks in international markets
…with solid growth achieved in soft drinks in international markets… SOFT DRINKS SALES VOLUME Volume Breakdown By Country* Azerbaijan Others Turkey International Iraq 4% 9% 4% 1,207 1,184 227 Kazakhstan 12% 43% Turkey m u/c 203 106 654 672 99 27% 104 121 554 512 Pakistan *Breakdown on combined basis
Slide 10: Strong performance with significant margin expansion
…resulted in strong performance with significant margin expansion… NET REVENUE REVENUE Higher sales prices +15.9% Revenue growth management initiatives EBITDA BNRI Positive currency translation +25.5% EBITDA MARGIN EBITDA margin up by 146 bps year-over-year to 19.1%, highest level since 2012
Slide 11: Financial Overview
FINANCIAL OVERVIEW Orhun Köstem Chief Financial Officer 11
Slide 12: Prudent OPEX and working capital management driving strong performance
Prudent OPEX and working capital management driving strong performance… NET FREE CASH VOLUME EBITDA BNRI EBITDA BNRI% REVENUE FLOW +38.1% +25.5% ANADOLU 4Q FY 4Q FY 4Q FY 4Q FY EFES mTL 879 1,214 4,063 5,098 21.1 mhl 103.5 mhl 6,419 mTL 26,743 mTL 18.9% 19.1% 117 mTL 3,012 mTL +4.9% vs. PY -1.2% vs.
Slide 13: Improvement in both operational profitability and cash generation
…in both operational profitability and cash generation… Beer Group 161.3 -274.6 255.4 1,961.4 1,784.4 34.9 EBITDA Bridge mTL FY2019 Net Cost of Selling, Other FY2020 Revenue Sales Marketing and G&A expenses 184.5 -356.2 1,293.2 Free Cash Flow -71.9 -291.1 35.0 793.4 Bridge mTL EBITDA Changes Capex,
Slide 14: Commitment to financial discipline
… with commitment to financial discipline… Healthy leverage ratio Idle asset sales program supporting cash generation Beer Group: 1.1x (2019: 1.0x) Moscow land sale Anadolu Efes: 0.7x (2019: 1.1x) Lüleburgaz land sale Record low working capital Effective use of Zero Based Spending Program Lowest eve
Slide 15: Priorities & Outlook
2021 PRIORITIES & OUTLOOK Can Çaka CEO & Beer Group President 15
Slide 16: Right balance to sustain profitable leadership
Right balance to sustain profitable leadership Market Investments Revenue / hl Drivers • Cooler investments • Price increases • Distribution effectiveness • Premiumization • Digitalization • Discount management • Right portfolio mix & channel mix Brand Investments Cost and Expense Management • Inves
Slide 17: 2021 Outlook
2021 Outlook VOLUME SALES REVENUE continuing impact of pandemic FX-Neutral basis Consolidated: Beer Group: Soft Drinks: Consolidated: Beer Group: Soft Drinks: Low-to-mid- Low-single digit Range of Mid-teens Low-teens High-teens single digit growth 4% to 6% growth growth growth growth growth EBITDA M
Slide 18: Closing Remarks
CLOSING REMARKS Can Çaka CEO & Beer Group President 18
Slide 19: Q&A Session
Q&A SESSION Can Çaka CEO & Beer Group President Orhun Köstem Chief Financial Officer 19
Slide 20: FX Rates
FX Rates FY2019 FY2020 Δ% AVG 5.67 7.00 23.5% USD/TL PE 5.94 7.34 23.6% AVG 6.35 8.01 26.2% EUR/TL PE 6.65 9.01 35.4% AVG 11.41 10.30 -9.7% TL/RUB PE 10.42 10.06 -3.4% AVG 67.51 59.02 -12.6% TL/KZT PE 64.17 57.31 -10.7% AVG 4.56 3.85 -15.5% TL/UAH PE 3.99 3.85 -3.4% AVG 3.10 2.47 -20.2% TL/MDL PE 2.